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- Contents
- Introduction
- Objectives
- Review
HCET Home > On-line Training > Money Matters > Module II: How Do We Charge Fairly?
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Money Matters Module II: How Do We Charge Fairly?
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Contents of Module II
- Introduction (below)
- CPT Codes
- Steps to Developing Cost Based Fees
5-8 are covered, 1-4 are covered in module I- Determine the relative values of services/procedures
- Collect utilization data on services provided
- Determine total units of service provided
- Determine cost of each service
- Form 1: Medical Cost Center
- Form 2: Counseling Cost Center
- Form 3: Laboratory Cost Center
- Form 4: Pharmacy Cost Center
- References
1. Introduction
How Do We Charge Fairly?
The methodology used for determining project costs and the development of fees is based on a system utilizing CPT Codes and Relative Values.
- We begin by establishing a list of visit types that define your program in terms that medical payers recognize and accept.
- Definitions of these visit types will be governed by CPT codes, not Title X definitions.
Objectives
By the end of this second module of a three-unit program, participants will be able to:
- Break down the relative value methodology for doing cost analysis
- Demonstrate an ability to complete forms 1-4 on the cost analysis
- Compare current fees to actual cost of providing service
- Choose fees based on the cost analysis and reimbursement principles
Review of Module I Key Concepts
The first module of this three-part series included an introduction to the cost center report, as well as instruction in:
- completing a time study
- collecting fiscal data
- completing allocation spreadsheets
The cost center report will be completed using information that should be available from your accounting system and reports from your Clinic Visit Record (CVR).
The most important element in determining cost is properly allocating expenses including:- Salaries, wages, fringe benefits
- Other program expenditures
- Donated goods and services
- Reflect the cost of operation
- Are competitive in the local market
- Are based on a cost analysis
- Identify the functional cost center areas
- Identify services provided in each cost center
- Collect cost data and allocate costs to each functional cost center
- Allocation of overhead costs to functional cost centers
- Determine the relative values of services/procedures
- Collect utilization data on services provided
- Determine total units of service provided
- Determine cost of each service.
