December 2nd, 2013
Kreg is pleased to announce the release of Version 6.01 (V6.01) of our Management Control Systems (BUD, PAY, REV, MCA, CAP and Report Blaster). This release includes the ability to include graphs and data on the same report, as illustrated below. This functionality requires end users have Excel 2007 or higher.
We will be hosting 3 webinars presenting an overview of the major changes contained in V6.00 with sessions held as follows:
- December 11th from 2:00 – 2:30 PM
- December 17th from 10:00 – 10:30 AM
- January 8th from 1:30 – 2 PM
The example below demonstrates this new graphing feature. In this example, a monthly variance report uses conditional formatting features introduced in V5.02 applied to the MTD and Year-to-Date variance percent columns. The red flag indicates a variance exceeding the criteria for acceptable variances. An explanation and intervention is required to correct the situation. The YTD Operating ratios graph at the top of the report is designed to grab the manager’s attention and focus on those operating ratios in the department.
For more information visit our seminars page by clicking here.
November 13th, 2013
The combination of Kreg’s Strategic Services Group reimbursement knowledge and our claim and contract management system, EV-CMA, powerful simulation capabilities were recently showcased in Connecticut. Many hospitals are struggling with determining the financial impact of proposed changes to the state’s Medical Assistance Program (CT Medicaid), and Kreg’s Strategic Services Group used EV-CMA to simulated the proposed Medicaid contracts for an exclusive group of Connecticut hospitals.
The proposed changes to Medicaid reimbursement required hospitals to bill all laboratory services and outpatient surgery services with the revenue center code plus the appropriate ®CPT code(s). Albeit a rather simplified explanation, the reason for this shift in bill practices was to allow for proposed move from revenue code percent of charge reimbursement to either ASC or APC reimbursement methodologies, both requiring CPT code detail. The major question each hospital needed to answer was “What is the financial impact of the proposed changes on my organization?” and this is where Kreg’s EV-CMA Contract/Claims Management solution provided vital analysis.
Working in conjunction with participating hospitals, Kreg’s Strategic Services Group imported appropriate claim detail which contained line item CPT code(s) as well as actual payments and adjustments that produced baseline contract validation. After building the baseline Medicaid contract to establish the current payment percentage (shown as the red line in the Figure 1.a graph below), Kreg staff then modeled a series of proposed contract simulations in EV-CMA to determine the financial impact of proposed changes (with and without wage index adjustments as per the policy transmittal) as well as revenue neutral positions on the same claim set. With the summary report information provided from Kreg’s consultants hospital finance staffs learned of the financial implications of moving to ASC and APC reimbursement for Medicaid OP Surgery and Lab Services, as well as what conversion factors would be required to remain revenue neutral.
“So far, all of the hospitals we worked with have seen a negative financial impact on proposed changes to current CT Medicaid Reimbursement, with ASC’s having a far greater impact than APC’s” noted Justin Rozen, Kreg Strategic Services Senior Consultant.
If you would like more information on how Kreg can assist your organization with contract simulations please contact Justin Rozen at (203) 762-2268 or firstname.lastname@example.org.
®CPT is a Registered Trademark of the American Medical Association
July 11th, 2013
At the recent Kreg Information Systems Users Conference the company introduced its newest product: Dashboards for EnterpriseVision. “We evaluated three different sets of dashboard tools, and found all three to be too expensive on a per user basis” said Greg Ferguson, Kreg’s President. “We went back to the drawing board and designed a web-based solution accessed via a browser. It offers a clean, uncluttered, interactive dashboard and the user can even click-through to see the rich detail behind the dashboard.”
There is an old saying, often attributed to Leonardo da Vinci, that “Simplicity is the ultimate sophistication.” So the idea behind Kreg’s dashboard product is that every graph should be simple enough to be self-explanatory. That’s because the consumers of the information won’t have a financial analyst standing behind them to explain what the graphs mean.
Here’s a sample dashboard from the system.
Kreg will begin rolling out this product during the winter of 2013 to customers using its cost accounting-decision support system, EV-PLM, and clients using its claims and contract management system, EV-CMA. The dashboards are configurable user by user, and the client can produce as many custom designed dashboards as they wish.
Contact your Kreg representative for more information.
November 27th, 2012
Many healthcare organizations use the ratio of costs to charges to calculate cost and profitability when making decisions. This methodology of determining costs, called RCC costing, is inarguably a quick and easy method to determine costs. Proponents of this approach stress RCC costing provides reasonable results with very little effort.
But Are the Costs Acceptably Accurate?
Kreg set out to address this question. What we did is take several instances where Kreg had assisted in the development of unit costs for clients using our RVU based approach. We then compared the per unit results from Kreg’s methodology to the results obtained from a strict application of RCC costs.
The Results of Our Analysis Are Stunning.
There are huge variations between RCC costs and RVU costs everywhere except one small hospital and a stand alone ASC unit. Six out of 10 charge items have RCC costs that are within a range of 60% (plus/minus 30%) of the RVU based costs. If your contractuals are plus/minus 30% is that acceptable? In fact, in the study we found many items were over 1,000% off. Unfortunately since there is simply no consistent underlying relationship between costs and charges, you can’t reliably use RCCs to determine charge item costs.
What’s a Healthcare Organization to Do?
As mentioned in a recent HFM article “as hospitals move toward pay-for-performance and other quality-based payments systems, it is essential they have access to accurate, reliable and actionable cost accounting information”. We know this should be the goal of every healthcare organization in the country, but how you actually achieve it is the problem. Each organization has different priorities, IT infrastructure, staffing and internal accounting limitations that impact the development of accurate and defensible costs for 100% of the items in their charge masters.
Kreg’s “Reality Based Cost Accounting Approach”.
Our clients develop organizational specific RVUs and update their costs quarterly, semi-annually or annually. We have clients ranging in size from multi-hospital systems to critical access hospitals. We have clients that feed the cost accounting data into our Decision Support Reporting system to then analyze the profitability of product lines, physicians and contracts and others feeding the costs into their data repositories. The bottom line is Kreg will help you customize the system and the process based on the realities your organization faces. We can even outsource the entire process for you.
You Can’t Manage What You Don’t Measure.
The reality is you can’t manage what you don’t measure. It is an old management adage that is just as applicable today. You can’t manage for improvement if you don’t measure to see what’s getting better and what isn’t. Click here for a PDF copy of our RCC analysis.
August 14th, 2012
Kreg is pleased to announce the release of V5.02 of our Management Control Systems (BUD, PAY, REV, MCA, CAP and Report Blaster). This release includes the ability to apply Conditional Formatting features from Excel 2007/2010 to your Kreg ReportWriter results. This functionality allows you to highlight variance information in reports using stoplights, other icons, or color shading variance cells.
The example below demonstrates the capabilities of Conditional Formatting. In this example, a monthly variance report has Conditional Formatting applied to the Year-to-Date variance percent column. The Conditional Formatting is represented by stoplights where green indicates the variance is within acceptable user criteria, yellow means the variance is close to exceeding the user criteria and red exceeds the user variance criteria and intervention is required. You define the criteria for the variances within each Report Writer report, and the criteria can be diferent from report to report.
The requirements to use Conditional Formatting and other new features and benefits of this release include:
- Currently running the Enhanced Report Writer in Version 5.01 of Kreg’s Budgeting software released in the spring of 2011; and,
- All users must be running Excel 2007 or 2010 to produce or view the formatted reports.
(Please note Microsoft stopped supporting Excel 2003 in April 2010.)
Other new and notable features included in this release are:
- Improvements to the installation process;
- File Buffering On/Off Tool added to Security;
- Changes to Account Group editing in the Chart of Accounts;
- Group IDs display alphabetically –regardless of case;
- Users can access/run other user’s tasks/jobs;
- Type T in Report Writer – allows text to be placed in a specific cell
- Report writer <cp> can be used in calculation statements in report writer; and,
- New MCA reports across selected centers added to the menu.
This release is available now and will automatically be sent to all existing version 5.01 clients. Training will be offered via group WebEx sessions. System documentation will be provided containing additional reference material. WebEx training sessions will be held:
- September 6, 2012 from 10:00 -11:30 AM
- September 11, 2012 from 1:00 – 2:30 PM
You can sign up by clicking here.
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