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I work at a Hospital in the US. Gross Revenue is a fraction of what we will actually collect (27. We are working on budget and have a charge increase...
I work at a Hospital in the US. Gross Revenue is a fraction of what we will actually collect (27.3%). We are working on budget and have a charge increase of 5% going in. We will only realize a portion of that charge increase as additional payments due to contracts that we have with our payors. We also have a LOS reduction initiative where we expect to decrease the average number of days the patients will stay in the hospital. We are assuming that the LOS reduction initiative will decrease gross revenues but not net revenue due to the majority of payers paying us on the DRG. Finally, we have contract changes with our payors in that they will reimburse us more than they are currently.
With all these changes going on in the budget, we are trying to ensure that we are budgeting our net revenue percentage correctly....How can I reconcile all of these changes to ensure that our budgeted net revenue realization rate is accurate?