colin mccrow - finance, procurement & legal services division, qld - analysis update:...
DESCRIPTION
Colin McCrow, Manager, ABF Costing, System Policy and Performance Division, Department of Health, Queensland presented this at the 5th Annual Clinical Documentation, Coding and Analysis Conference. This event is the only case study led conference in Australia looking solely at clinical documentation, coding and analysis. For more information, please visit http://www.healthcareconferences.com.au/clinicaldocsTRANSCRIPT
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Classification Failure ~
When the Best Coding
Does Not Describe a Resource
Homogenous Group
Colin McCrow
Manager ABF Costing
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Objectives
In this session we will :
• Outline why resource homogeneous
grouping is critical for activity based funding
• Outline the reasons for classification failure
• Use real world examples to outline how to
analyse the causes for classification failure
• Review the key steps in making the case
for grant funding to ensure continuity of care
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RESOURCE HOMOGENOUS
GROUPS & ABF
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Funding Models &
Classification Systems
• All output based funding models are built
off actual cost data
• Any activity funding system must have a
grouping of like data based on
comsumption of human and material
resources in the production of the unit of
output: ie Resource Homogenous Groups.
• Actual cost data must be grouped to the
classification system so ABF can occur.
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Key Assumptions in
Activity Based Funding
• Classification systems are robust enough
to ensure that like patients can be grouped
and identified.
• A similar amount of human and material
resources has been used to create the
final products consumed by the patient.
• Patients will receive similar treatments,
given the same presenting complaints.
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Key Assumptions in
Activity Based Funding
• Patient centric costing systems can
provide accurate consumption costing and
provide the basis for building funding
models.
• The introduction of new technology will
occur based on clinical evidence and may
or may not be cost effective even if clinical
outcomes are improved.
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Key Assumptions in
Activity Based Funding
• Classification systems cannot for-see the
impact of the introduction of new clinical
procedures and include all potential
permutations in their design.
• There will always be a delay in
classification change.
• To ensure clinical innovation is supported
Funding Models must have mechanisms
for interim grants.
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CAUSES OF CLASSIFICATION
FAILURE
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Definition • Classfication Failure in an activity based
funding environment may be defined as:
The identification of a sub group of patients
with a similar pattern of presenting
problems, a similar pattern of clinical
intervention, but who are distinctly different
in their use of human and material
resources when compared to the main
classfication group.
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Definition
• This subgroup may form the trigger for
classfication review in the future. Normally
this patient grouping will have a higher
consumption of human and material
resources from a cost or volume (or cost
and volume perspective). They will have
an impact on the relative efficiency of the
overall health service.
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Definition
• Because of the cost differential to the main
group, adjustments to funding models may
need to be made to ensure service
continuity.Where new technology has
been introduced that provides a better
clinical outcome , a funding strategy is
required to support the introduction of that
technology.
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System Causes
• Documentation quality affecting accurate
coding.
• Complexity levels of PCCL / grouper
business rules not reflecting actual patient
acuity.
• Coding accuracy.
• Classfication maturity.
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Clinical Causes
• Co-morbid chronic condition clusters
affecting the healing process or requiring
increased intervention.
• New Technology that provides improved
clinical outcomes but higher cost.
• Other clinical factors affecting Rx or length
of stay such as mental health conditions.
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CASE STUDY – HYPERBARIC
TREATMENTS
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Oveview
• Hyperbaric Treatment has been shown
to have a significant clinical outcome
benefits.
• It however is not cheap technology.
• In a purchaser provider enviornment we
need to ensure that our hosptals have
enough funds to provide for good clinical
outcomes…..
• But is additional funding over the DRG
activity payment required ?
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What is ABF Best Practice?
Best
Practice
Least
Intervention
Best Clinical
Outcome
Shortest
ALOS
Lowest
Cost +
+
+
+
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Building The Study
Identify Patient
Cost records from
Hyperbaric
Department
Identify DRG for
patient admission
Flag patient records
with HP Rx
Select all patients
with same DRG’s Identify cost for
each episode
Identify Revenue
for each Episode
Build Profit Loss
Statement
Review ALOS Select all other
interventions by
PMI for reference
year Review Variance
to control (No Rx)
group
Review Case for
Funding Grant Identify Further
Areas For Analysis
Has ABF Best
Practice Been
Identified
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Data Caveat
• The slides which follow include sample data to
illustrate this process. While these are based on
real world data (you will find similar outputs and
outcomes like this illustrated in real databases),
the examples have been deliberately changed.
The purpose is to illustrate the process and
initiate further discussion & thought.
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Base Data
• 87 different DRG’s (version 7)
• 7085 patients reviewed
• DRG’s with minimal volume in the
treatment group where not further
investigated
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Final HP RX group
• 1475 patients
• Profit making = 507
• Loss = 968
• ave loss pre patient over $ 400 each
when compared to revenue for straight
DRG activity based funding
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Study Group DRG DRG Description hp_rx TotalCount
B82C Chronic and Unspec Para/Quadriplegia W or W/O OR Proc W/O Cat CC N 144
B82C Chronic and Unspec Para/Quadriplegia W or W/O OR Proc W/O Cat CC Y 24
D67B Oral & Dental Disorders, SameDay N 101
D67B Oral & Dental Disorders, SameDay Y 227
F65B Peripheral Vascular Disorders W/O Catastropic or Severe CC N 89
F65B Peripheral Vascular Disorders W/O Catastropic or Severe CC Y 50
G70C Other Digestive System Disorders Sameday N 354
G70C Other Digestive System Disorders Sameday Y 75
I82Z Musculoskeletal Injuries, Sameday N 432
I82Z Musculoskeletal Injuries, Sameday Y 158
L67C Other Kidney & Urinary Tract Disorders, Sameday N 109
L67C Other Kidney & Urinary Tract Disorders, Sameday Y 52
X63B Sequale of Treatment W/O Catastrophic or Severe CC N 139
X63B Sequale of Treatment W/O Catastrophic or Severe CC Y 85
X64B Other Injuries, Poisonings and Toxic Effects W/O Catastrophic or Severe CC N 99
X64B Other Injuries, Poisonings and Toxic Effects W/O Catastrophic or Severe CC Y 46
Z64B Other Factors Influencing Helath Status Sameday N 217
Z64B Other Factors Influencing Helath Status Sameday Y 131
Totals 2532
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N Y N Y N Y N Y N Y N Y N Y N Y N Y
B82C B82C D67B D67B F65B F65B G70C G70C I82Z I82Z L67C L67C X63B X63B X64B X64B Z64B Z64B
Ave Profit Loss $(750 $3,50 $(400 $(450 $(100 $(400 $(430 $(870 $(135 $(115 $(420 $(590 $(645 $(620 $(1,4 $(2,3 $(490 $(530
$3,000.00
$2,000.00
$1,000.00
$0.00
$1,000.00
$2,000.00
$3,000.00
$4,000.00
Comparing Ave Profit Loss Rx and Control Group
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N Y
B82C B82C
Ave Profit Loss $(750.00) $3,500.00
$1,000.00
$500.00
$0.00
$500.00
$1,000.00
$1,500.00
$2,000.00
$2,500.00
$3,000.00
$3,500.00
$4,000.00
Ave Profit Loss Rx & Control Group- Chronic and Unspec Para/Quadriplegia W or W/O OR Proc W/O Cat CC
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N Y
X64B X64B
Ave Profit Loss $(1,475.00) $(2,300.00)
$2,500.00
$2,000.00
$1,500.00
$1,000.00
$500.00
$0.00
Ave Profit Loss Rx & Control Group- Other Injuries, Poisonings and Toxic Effects W/O Catastrophic or Severe CC
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N Y
F65B F65B
Ave Profit Loss $(100.00) $(400.00)
$450.00
$400.00
$350.00
$300.00
$250.00
$200.00
$150.00
$100.00
$50.00
$0.00
Ave Profit Loss Rx & Control Group - Peripheral Vascular Disorders W/O Catastropic or Severe CC
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Ave Profit Loss Variance drg hp_rx TotalCount Ave Profit Loss
B82C N 144 750.00-$
B82C Y 24 3,500.00$
D67B N 101 400.00-$
D67B Y 227 450.00-$
F65B N 89 100.00-$
F65B Y 50 400.00-$
G70C N 354 430.00-$
G70C Y 75 870.00-$
I82Z N 432 135.00-$
I82Z Y 158 115.00-$
L67C N 109 420.00-$
L67C Y 52 590.00-$
X63B N 139 645.00-$
X63B Y 85 620.00-$
X64B N 99 1,475.00-$
X64B Y 46 2,300.00-$
Z64B N 217 490.00-$
Z64B Y 131 530.00-$
Totals 2,532.00$
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9%
11%
23%
6%
17%
23%
1% 1%
1%
8%
Non Treatment Study Group Interventions by Visit Type
Admitted Emergency Presentation
Non Admitted Emergency Presentation
Allied Health/Nursing Outpatient Visit
Diagnostic Outpatient Visit
Medical Outpatient Visit
Other Acute Admission
Other Procedure Clinic
Other Sub-Acute Admission
Outpatient Hyperbaric Rx
Study_Admission
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2%
1%
11%
2%
7%
3% 0%
0%
11% 63%
Treatment Study Group Interventions by Visit Type
Admitted Emergency Presentation
Non Admitted Emergency Presentation
Allied Health/Nursing Outpatient Visit
Diagnostic Outpatient Visit
Medical Outpatient Visit
Other Acute Admission
Other Procedure Clinic
Other Sub-Acute Admission
Outpatient Hyperbaric Rx
Study_Admission
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Annual Interventions where no study
admission included Hyperbaric Rx HP_RX Study_Record Vol
N Admitted Emergency Presentation 2004
N Non Admitted Emergency Presentation 2393
N Allied Health/Nursing Outpatient Visit 5150
N Diagnostic Outpatient Visit 1232
N Medical Outpatient Visit 3749
N Other Acute Admission 5106
N Other Procedure Clinic 198
N Other Sub-Acute Admission 187
N Outpatient Hyperbaric Rx 124
N Study_Admission 1881
Totals 22024
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Annual Interventions where study
admission included Hyperbaric Rx HP_RX Study_Record Vol
Y Admitted Emergency Presentation 30
Y Non Admitted Emergency Presentation 12
Y Allied Health/Nursing Outpatient Visit 157
Y Diagnostic Outpatient Visit 23
Y Medical Outpatient Visit 110
Y Other Acute Admission 46
Y Other Procedure Clinic 1
Y Other Sub-Acute Admission 1
Y Outpatient Hyperbaric Rx 167
Y Study_Admission 926
Totals 1473
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Does Hyperbaric Rx
reduce Health Interactions?
Hyperbaric Rx with DRG No Hyperbaric RX with DRG
Volume 1473 22024
0
5000
10000
15000
20000
25000
To
tal H
ealt
h In
terv
en
tio
ns b
y P
MI
Volume Of Health Care Interventions
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Conclusions
• From the data the following can be
concluded :
• Hyperbaric treatment does add to the cost
of intervention on a visit by visit basis. It
does not therefore meet the ABF best
practice criteria of lowest cost.
• LOS was not a factor in review between
the RX and non Rx group
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Conclusions
• Numerous clinical studies strongly
support improved clinical outcomes so this
criteria is met.
• There was a significant difference in the
total number of other health interventions
when considering the Rx to non Rx group
this ABF best practice criteria was
defintaly met.
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Further Analysis Required
• Detailed review of total health care
intevention products utilised by the Rx and
non Rx group should be undertaken to
help build best practice.
• All data should be confirmed for validiaty
and accuracy with the service providers.
• While in the same LHN a number of the
patients in the non Rx group where cared
for in smaller associated facilities.
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THE CASE FOR ADDITIONAL
FUNDING
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Criteria to be met
• A sub-group of patients with costs
consistently greater than average ABF
reimbursment.
• Improved clinical outcomes (supporting
new technology).
• Reduction in other health interventions
(but this may lead to funding loss in other
areas that would occur if no Rx).
• More efficient use of health resources.
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Discussion
• Activity Based Funding is complex …
there will always be winners and loosers
within classfication groups.
• Classfication systems need to be reviewed
where there are changes in clinical
practice but there always will be a delay
• The decision to provide or not provide
additional funding is always an area of
tension in purchaser provider
arrangments.
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Questions ?
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Questions & Contact
Information
Please direct any questions to:
Colin McCrow
Manager ABF Costing
ABF Model Team
System Policy & Performance Division
Queensland Health
Email : [email protected]