Financial analysis can facilitate the MRI acquisition decision.
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Although the magnitude and consequences of indigent care are well known, the terms and methods used to define and assess such care are less clear--yet these measures are vital to any solution of the problem. Using data from 151 Tennessee hospitals, two economists analyze the problems, concepts, views, and trends of indigent care and its distribution among hospitals.
The purpose of this study was to develop a financial model to help administrators determine the financial effect of physical therapy clinical education programs on facilities. I developed the model from an analysis of actual field data collected on the financial and time variables involved in the clinical education process. Therapists with and without students were matched in six (three large, three small) physical therapy departments. Each completed a modified time-motion study for a sample of typical days during 2 six-week student affiliation periods and for a one-week period without students. I identified and field tested five factors that can be integrated into a simple financial model. The field results also supported the concept that a clinical education program was profitable, producing an $89 per day per student net benefit, even though therapists working with students spent less time in income-generating activities.
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This article proposes new bases for the payment of hospital capital costs. Separate distinctions between proprietary and voluntary hospitals are made based on their definition of capital and the requirements for capital maintenance. Replacement cost depreciation is suggested as the payment basis for voluntary hospitals.
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Prospective payment systems have replaced retrospective reimbursement, thus increasing the need to determine costs, income, and potential losses in order to adjust the patient mix so as to minimize losses and maximize profits. Three phases in applying pricing and patient mix policies are described.
The prospective payment system has many benefits and risks for the hospital industry. A quality-enhancing bidding process can be used to redistribute any unfair windfall profits, and foster quality care, effectiveness, efficiency, and productivity.
Academic health center hospitals face challenges to their survival in an increasingly competitive, challenging, and entrepreneurial environment. University hospitals face a number of major stresses and are responding in various ways to ensure their financial viability.