DRG Patient Classification - Essay Example

Only on StudentShare

Extract of sample
DRG Patient Classification

Breakeven Analysis Sales variable cost fixed cost Allocation JFC Total FC Breakeven units HR gross margin DRG M 1700 1000 500,000 415000 915,000 1307 2 41.18% DRG J 2600 1200 280,000 249000 529,000 378 5 53.85% DRG P 900 600 110,000 166000 276,000 920 1 33.33% Total 890,000 830000 1,720,000 The company has three different DRG type patients to which the firm provides its health service. The three different types of patients generate various types of revenues streams. The DRG J patients generate $2600 in treatment cost which is the highest revenue figure among the three types of patients. The DRG J patients also have the highest contribution margin at $1400, but also the highest profit margin at 53.85%. One of the negative aspects about the treatment of DRG J patients is that it takes company 5 hours to complete a treatment session for these patients. Time consuming patients limit the ability of the clinic to have high patient turnover. Fewer patients are served each month when a clinic has to spend 5 hours in DRG J patients instead of the two hours and one hour its takes to serve DRG M and DRG P type patients. The DRG P patients have the lowest patient charge at $900. The good aspect of treating the DRG P patients is that the clinic only has to consume one hour of time to serve them. ...Show more


The use of DRG patient classification has helped the Beach Street office of Getwell Clinics isolate patients which created a systematic way to visualize each type of patient as a profit center. The raw data the clinic has includes patient charge, variable costs, fixed cost, hour per treatment, and joint fixed cost…
Author : davinward
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"DRG Patient Classification"
with a personal 20% discount.
Grab the best paper

Related Essays

A judgmental international classification of financial reporting Practices
For many years different organisations, agencies and financial analysts have worked on developing their own conceptual framework however there has been no one common conceptual framework which has been accepted by everyone (Kaplan, & Atkinson, 1998). Considering this situation, in the year 1976 FASB started working to develop a common conceptual framework which could become the basis for accounting standards and resolve different controversies regarding financial reporting (Hines, 1991).
8 pages (2000 words) Essay
Planning and Controlling Capital Expenditures
According to Nice (2002), Capital expenditures imply outlays of cash that are mostly needed to upgrade a business asset. Capital expenditure can sometimes be referred to as capital spending or capital expense.
13 pages (3250 words) Essay
Gender roles and Marriage
As time progressed the gender roles altered and the relationships and roles within the families were no longer confined to gender roles. While sex refers to the biological classification into male and female categories, gender indicates social classification of the masculine and feminine attributes.
5 pages (1250 words) Thesis
AS Unit F911- Communication in care settings
Next, your communication will need to provide the healthcare information for your patients and their families to help them make informed decisions about care. When we think about communication, we have to understand that it goes two ways. First, the individual will communicate with another person by sending a verbal, written or email message to them.
4 pages (1000 words) Coursework
DIS4, 6, 8
Be prepared to discuss.   Go to Accounting Today’s Website to read the article titled “ GAO Sees Problems in Government’s Financial Management,” dated December 27, 2010, located at http://www.accountingtoday.com/news/GAO-Sees-Problems-Government-Financial-Management-56749-1.html.
5 pages (1250 words) Essay
Ethical issues in emergency medical service operations
Ethical Issues in Emergency Medical Service Operations Abstract Over years, there has been impressive growth in the field of pre-hospital medicine. With the continued growth in the body of knowledge, the challenges of pre-hospital emergency medical care have become more operational as compared to medical.
5 pages (1250 words) Research Paper
FASB Codification research paper
Because of this, there have emerged varying practices of reporting EAs activity results. Lack of clear guidance from accounting standard setters (IFRIC and EITF) confused many companies (Deloitte, 1). U.S.GAAP In November 2003, the Emerging Issues Task Force (EITF) has initially discussed the Issue no.
4 pages (1000 words) Essay
Additionally, health care delivery have been influenced over the last sixty years by different reimbursements methods that have evolved from a cost-center to a profit center to know what is referred to as
6 pages (1500 words) Essay
63-65). The users need the information for decision-making purposes. The paper presents three areas of heightened audit risk and the substantive procedures necessary to reduce the audit risks to an acceptable
6 pages (1500 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email