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Essay

Health Care Cost Accounting

Essay specific features

 

Issue:

Social Issues

 

Written by:

Michael C

 

Date added:

September 1, 2016

 

Level:

 

Grade:

A

 

No of pages / words:

4 / 1051

 

Was viewed:

3711 times

 

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Essay content:

If the healthcare delivery system does not have a cost accounting system or the ability to develop cost information on each payer and service line, then it will become necessary to find a way to develop such information prior to entering into a capitation contract. A six step method is recommended for developing a capitation payment rate...
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Cost accounting information is used as well as data from a market study. The steps are: 1. Determine the delivery system cost base 2. Develop use rates 3. Calculate capitation rates 4. Adjust rates for impact of incremental volume 5. Negotiate the contract 6. Monitor contract performance Using the capitation payment method, the health care provider assumes that for a given insured population, the provider will cover all health care services for a fixed payment per member per month (PMPM)...
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General issues of this essay:
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