Health Information Management

Control charge compression by knowing your costs

APCs Insider, February 13, 2009

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Editor’s note: See Charge compression basics in the February Briefings on APCs for a review of this complex subject.

Charge compression is a complex, long-standing problem. And although CMS is only now recognizing the difficulties, hospitals should act promptly to rein in their charging practices.

It all starts with hospitals’ cost accounting, which leaves much to be desired, says William L. Malm, ND, RN, partner at Health Revenue Integrity Services in Westlake, OH.

Nothing confounds costs and reporting data as much as the traditional practice of arbitrarily increasing hospital prices by a fixed percentage every year, says Glenn Krauss, RHIA BBA, RHIA, CCS, CCS-P, CPUR, PCS, FCS, C-CDIS, senior coding and chargemaster consultant at QHR in Brentwood, TN. This can quickly distort any charge compression formula.

Read the complete article on the HCPro Web site. Briefings on APCs subscribers have free access to this article in the March issue via their online subscription.



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