MEDITECH
Cost Accounting
product brief

MEDITECH's Cost Accounting application helps both multiple and single facility health care organizations monitor and control their costs. The application utilizes information found throughout the entire Health Care Information System to create detailed reports on comparisons of actual and standard costs, fixed and variable costs, budgets, variance analyses, service profitability, and departmental responsibility.

Highlights:
The Cost Accounting application facilitates budget preparation and cost and profitability analysis as it enables an organization to:
   • Analyze and report standard costs, by procedure, at the departmental and cost group level
   • Compare the cost of providing services to the reimbursement received for each patient and groups of patients
   • Develop budgets by product line via expected number of cases and by service unit for expected volume and standard costs.

Standard Features

Standard Cost Development
The application helps a health care organization develop standard costs for all services, on a unit level, in the health network. The application includes:
• A Service Unit Rules File that contains the user-defined logic which determines the cost of a service unit, which, in many cases, will have a one-to-one correspondence with procedure codes in billing
• Ability to utilize micro-costing and allocation methodologies
• An on-line Resource Rates File that stores past, present, and future average rates for micro-costed resources such as labor and materials
• Procedure/Service Unit mapping which allows procedure codes to be assigned to multiple service units, and multiple procedures to be grouped to individual service units, to facilitate 80/20 costing methods
• A Standard Cost File that contains the total standard cost for each service unit, plus a breakdown by cost group
• A categorization of labor, material, and overhead for up to 10 Cost Groups, which can be classified as Direct or Indirect, Fixed or Variable
• Cost Group reporting so your organization can analyze both standard and actual costs by groups.

Complete Integration with the Entire System
The application is fully integrated with other MEDITECH applications to streamline the flow of information, prevent redundant data entry and duplication of effort, and generate reports that contain the most up-to-date, comprehensive information. Information includes:
• Historical data for standard cost development
• Service units as they relate to billing and nursing procedures
• Revenue and profitability statistics
• Spending, volume, and labor variance
• Procedure usage
• Billing procedures
• Productive labor hours and dollars.

Profitability Reports
When combined with the Case Mix Management application, Cost Accounting provides users with the features and functionality to generate multiple profitability reports based on various selection criteria. Features include:
• A detailed Patient Service Unit Report indicates the total standard cost of providing services to a patient and compares this cost to reimbursement activity cost per day; this information is also available through the Patient Cost Per Day Report
• Patient Cost Analysis reports provide a comparison of cost, charge, and reimbursement data (in detailed or summarized format) for a group of patients selected

Departmental Reporting
The system creates departmental reports, which illustrate standard costs and service usage by department. These reports allow for budget comparison and variance analysis by managers throughout the organization.
• Department variance reports contain all costs incurred and related variances at the department level
• Department Labor Variance Analysis Report details labor cost by department, cost group, and job code
• Flexible Budget Report details, by department, a comparison of cost based on both fixed and variable amounts.

Departmental Budgeting
The application provides managers with volume and cost data in order to help prepare budgets.
• Using past data, the system develops profile service unit usage by user-defined product line(s)
• By entering expected product line or service unit volumes for an upcoming year, managers can obtain expected volumes of service units and expected standard costs by department and cost group
• Budgeting is possible by product line(s) and by service units based on actual volumes for previous periods.

For more information about us, contact a MEDITECH Marketing Representative

MEDITECH
Medical Information Technology, Inc.
MEDITECH Circle
Westwood, MA 02090
781-821-3000
www.meditech.com