reimbursement benchmarks - Truven Health Analytics

REIMBURSEMENT
BENCHMARKS
BENEFITS
ƒƒ Assess the competitiveness of
your reimbursement rates
ƒƒ Access benchmark data for your
market
ƒƒ Use intelligent data to negotiate
effectively
ƒƒ Develop market-based fee
schedules
ƒƒ Effectively compare inpatient and
outpatient reimbursements
FEATURES
ƒƒ Uses data from MarketScan®, the
largest and most trusted claims
database in the industry
ƒƒ Provides estimates of
reimbursement rates by procedure
type and MS-DRG
ƒƒ Evaluates median and average
reimbursement rates
ƒƒ Includes low, medium, and high
estimates at the 25th, 50th, and
75th percentiles
ƒƒ Provides estimates as low as
the Core Based Statistical Area
(CBSA)
Actionable Information for
Contract Negotiation
Hospitals are struggling with decreasing
margins and looking for increased
revenue opportunities. Negotiating
payer contracts with competitive rates
and defensible pricing is a key driver in
improving rates and decreasing risk.
However, determining the value of
a contract without specific, detailed
reimbursement benchmarks can feel
like a guessing game and can present
significant risks and pricing blind
spots. Many hospitals are hungry
for information that can help them
understand exactly where their rates
stand compared to the market, so they
can negotiate effectively.
They need answers to questions,
including:
§§ How do my reimbursement rates
compare to others’ within my
market?
§§ Are there specific areas where my
rates are significantly out of line with
market norms?
§§ How can I mitigate risk and defend
my pricing to payers?
§§ What are the expected
reimbursements on a new line of
business?
§§ How do I create a competitive,
realistic fee schedule?
Reimbursement Benchmarks
Backed by the Industry’s Largest
Database
Leveraging the Truven Health
MarketScan® database, the largest and
most trusted claims database in the
industry, Reimbursement Benchmarks
deliver highly specific reimbursement
estimates that contract negotiators can
use to manage rates and defend pricing.
Reimbursement Benchmarks are
based on a proprietary methodology
providing estimates of reimbursement
rates, by Current Procedural
Terminology (CPT) code, the Healthcare
Common Procedure Coding System
(HCPCS) and Medicare Severity
Diagnosis Related Groups (MS-DRG),
which consider cost characteristics
for a specific geography with servicespecific nationwide cost information.
These estimates are provided at the
Core Based Statistical Area (CBSA),
making the information specific
enough to identify and support target
actions contract negotiators can take to
improve their contracts.
Service Spotlight
Reimbursement Benchmarks
Examples
The below figures display some of the payment estimation capabilities of Reimbursement Benchmarks.
FIGURE 1: Using Reimbursement Benchmarks to Estimate for Depressive Neuroses DRG in the State of Minnesota
Year
Geography Parent/Child
MS_DRG
2011
North Central
Minnesota
881: Depressive Neuroses
Ability to aggregate information at the state level
Professional Calculations
Professional Net Payment
Model Estimate
Lower 95%
Upper 95%
Low Estimate
High Estimate
$447
$436
$458
$275
$725
Professional Gross Payment
$512
$509
$534
$321
$847
Professional Eligible Charge
$645
$629
$661
$397
$1,047
$138
$135
$141
$84
$227
Professional Net Payment Per Diem
Professional Gross Payment Per Diem
$161
$157
$164
$98
$265
Professional Eligible Charge Per Diem
$199
$194
$204
$121
$327
$9,468
Facility Calculations
Facility Net Payment
$5,459
$5,329
$5,593
$3,148
Facility Gross Payment
$6,387
$6,242
$6,536
$3,683
$11,077
Facility Eligible Charge
$8,612
$8,406
$8,823
$4,966
$14,936
Facility Net Payment Per Diem
$1,524
$1,490
$1,558
$1,004
$2,312
Facility Gross Payment Per Diem
$1,783
$1,745
$1,821
$1,175
$2,705
Facility Eligible Charge Per Diem
$2,404
$2,351
$2,458
$1,584
$3,647
FIGURE 2: Using Reimbursement Benchmarks to Estimate for CPT 00100: Salivary Gland Anesthesia in the Dixon, IL CBSA
Year
Hospital OP
Geography Parent/Child
CPT/HCPCS and resolved modifiers
2011
Ambulatory Surgical
Center
Illinois
19940: Dixon, IL
00100: Anesth, Salivary Gland
Default
Break out estimates
by site of service
Professional Calculations
Professional Net Payment
CBSA-level data translates to
actionable information
Model Estimate
Lower 95%
$663
$651
Ability to view estimate for
HCPCS with or without modifiers
Upper 95%
Low Estimate
High Estimate
$674
$484
$907
Professional Gross Payment
$782
$769
$796
$571
$1,071
Professional Eligible Charge
$1,309
$1,287
$1,332
$957
$1,793
Facility Net Payment
$831
$704
$981
$522
$1,324
Facility Gross Payment
$938
$795
$1,107
$589
$1,495
Facility Eligible Charge
$956
$810
$1,128
$600
$1,523
Facility Calculations
FOR MORE INFORMATION
Send us an email at [email protected]
or visit truvenhealth.com
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Truven Health Analytics delivers unbiased information, analytic tools, benchmarks, and services to the healthcare industry. Hospitals, government agencies,
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