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Identification of Specific Variables: Part 2 Faith Asper, MHS Director, ResDAC Assistance Desk Objectives Review common types of research Review the worksheets that contain these variables Review helpful resources 2 Research Areas


  1. Identification of Specific Variables: Part 2 Faith Asper, MHS Director, ResDAC Assistance Desk

  2. Objectives  Review common types of research  Review the worksheets that contain these variables  Review helpful resources 2

  3. Research Areas Using Cost Reports  Facility Characteristics  Financial Health of Facilities  Calculating Costs 3

  4. Facility Characteristics  Selected facility characteristics variables are used in prospective payment.  Article compared cost report data to AHA data and concluded that cost report data was optimal for facility characteristics.  “Identifying and Measuring Hospital Characteristics Using the SEER-Medicare Data and Other Claims- Based Sources” Schrag D, et al. Medical Care Suppl Vol 40, No 8, Suppl pp IV-96-IV-103, Aug 2002. 4

  5. Facility Characteristics  Number of beds  Number of days  Number of discharges  Ownership status  Teaching Hospital  Uncompensated or Charity care  Payer Mix  Geographic location 5

  6. Facility Variable Locations Variable ble Location ion Total hospital beds Worksheet S-3, Part I Total inpatient days Worksheet S-3, Part I Total discharges Worksheet S-3, Part I Ownership status Worksheet S-2 & RPT file Teaching status Worksheet S-2 Uncompensated care Worksheet S-10 Payer Mix Worksheet S-3, Part I Location (zip code, Worksheet S-2 urban/rural) 6

  7. Medicare Cost Reports Example of Hospital Form 2552-10, Worksheet S-3, Part I 7

  8. Facility Characteristics: Other Resources  Provider of Services File ˗ Source is the OSCAR database (Survey and Certification) ˗ Collected at different points in time depending on the facility type ˗ May be better source for facilities that can be free- standing and provider-based » SNFs » HHAs » Hospices 8

  9. Facility Characteristics: Other Resources  CMS “Compare” Databases ˗ Hospital Compare ˗ Nursing Home Compare ˗ Home Health Compare ˗ Dialysis Compare  Current compare database can be downloaded here ˗ https://www.medicare.gov/download/downloaddb.asp  Archived copies can be found at ˗ http://www.cms.gov/Medicare/Quality-Initiatives-Patient-Assessment- Instruments/HospitalQualityInits/HospitalCompare.html 9

  10. Facility Characteristics: Other Resources  American Hospital Associate Survey ˗ Includes all Hospitals ˗ Includes wide range of descriptive and financial characteristics ˗ Some survey information comes from the cost reports ˗ Survey is not audited ˗ Costly 10

  11. Financial Health of Facilities  Total Margin  Revenues  Total Expenses  Average Daily Census  Bad Debt/Charity Care 11

  12. Financial Variable Locations Variable ble Location ion Total Margin Worksheet G-3 Revenues Worksheet G-2 Expenses Worksheet G-2 Average Daily Census Worksheet S-3 Bad Debt Worksheet S-10 12

  13. Medicare Cost Reports Example of Hospital Form 2552-10, Worksheet G-3 13

  14. Financial Variables  Article that outlines formulas for calculating financial indicators.  Flex Monitoring Team Briefing Paper #7: “Financial Indicators for Critical Access Hospitals” May 2005. (Table 3)  “Sources of Financial Data on Medicare Providers” MedPAC June 2004. 14

  15. Calculating Cost  Calculating Costs ˗ Use Cost-to-Charge Ratios (CCR) to adjust facility charges to cost » Total » Departmental » Medicare ˗ Use it in economic evaluations, such as cost- effectiveness analyses  More to come in next segment 15

  16. Cost and Charge Variable Locations Vari riable ble Location tion Total cost Worksheet C, Part 1 Total charges Worksheet C, Part 1 Total Medicare costs Worksheet D 16

  17. Medicare Cost Reports Example of Hospital Form 2552-10, Worksheet C, Part 1 17

  18. Calculating Cost Other Resources  Survey information ˗ Medicare Current Beneficiary Survey ˗ Medical Expenditure Panel Survey (MEPS) ˗ Healthcare Cost and Utilization Project (HCUP) » Survey information may be able to better capture the cost to the beneficiary » Survey information may be subject to recall bias  Provider accounting data ˗ Difficult to obtain ˗ Time consuming if dealing with national study 18

  19. Summary  Cost reports are typically used to identify:  Facility characteristics  Financial health of a facility  Calculate cost 19

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