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Essay heading: Health Care Cost Accounting
Essay specific features
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Social Issues |
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| Date added: |
July 28, 2008 |
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4 / 1051 |
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0 times |
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Essay content:
The insurer will be limited by what the consumer can afford to pay for health insurance. Managers of the health care delivery system must know the per capita cost of providing care to the insured population and compare that cost to what the insurer is being paid per capita per month.
DEVELOPMENT OF A CAPITATION PAYMENT RATE
? Determine Delivery System Cost Base for Targeted Population
o The first step in determining the capitation rate is to predict the costs of providing care to the insurer's population, based on assumptions about the population and on the cost structure of the delivery system... displayed 300 characters
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Information from a cost accounting system is necessary for this step. Accurate cost data should be figured by service and should be broken out into the components of fixed and variable costs. Using this method, inpatient service lines are defined by grouping diagnosis-related groups (DRGs) into 16 categories... displayed next 300 characters
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