Method and system for cost analysis and benchmarking in the healthcare industry

• US 20040243438A1
• Filed: 05/26/2004
• Published: 12/02/2004
• Est. Priority Date: 06/28/2001
• Status: Abandoned Application

• Current Assignee: MedidaMetrics, Inc.
• Original Assignee: MedidaMetrics, Inc.
• Inventors: Mintz, Ilan
• Application Number:
  US10/481,768
• Publication Number:
  US 20040243438A1
• Time in Patent Office: Days
• US Class Current: 705/2
• CPC Class Codes: G06Q 10/04 Forecasting or optimisation specially adapted for administrative or management purposes, e.g. linear programming or "cutting stock problem" market predictions or forecasting for commercial activities G06Q30/0202
• CPC Class Codes: G06Q 10/06 Resources, workflows, human or project management; Enterprise or organisation planning; Enterprise or organisation modelling
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G16H 70/20 relating to practices or guidelines

Abstract

The present invention is an accurate cost analysis system (100) and method for medical products and services, which has the ability to determine actual costs and profitability for all levels within a healthcare organization and which, unlike existing financial systems, employs terms and data familiar to healthcare providers. The system collects data from existing information systems (101) in a healthcare organization, and process the data into actionable information. The system utilizes real data collected from the production floor in order to enable decision-makers to analyze the true costs of procedures and services provided to their clients, and to develop business strategies to improve profit margins.

Claims

1. In a data communication network having at least one user, a computerized server system for providing activity-based cost-analysis and cost-control services for the healthcare industry, said system having a CPU and storage device, said system comprising:

a data exchange module for allowing the user to upload activity data into said computerized system;

an analytical engine for processing said activity data, in accordance with said organizational structure and said product tree into product cost data.

2. The system of claim 1 further comprising a setup module for allowing a user to define an organizational structure, product cost trees and user administration details.

3. The system of claim 1 further comprising a repository database, the repository database includes healthcare related data including an analyzers list, a healthcare product list and pre-defined product cost trees corresponding to each of the products in said list, wherein the setup means comprising accessibility to said repository database.

4. The system of claim 1 further comprising a setup database coupled to said setup module for storing users organizational structure and customized user product trees.

5. The system of claim 1 further comprising an activity database coupled to said data exchange module for storing users activity data.

6. The system of claim 1 further comprising a data warehouse for storing said product cost data.

7. The system of claim 6 wherein the data warehouse is a multidimensional database.

8. The system of claim 1 wherein a product cost tree includes, in an hierarchical structure, the cost items associated with the production of the product and wherein each of the cost items is associated with a baseline quantity or with a formula for calculating the baseline quantity.

9. The system of claim 1 wherein said organizational structure is defined in terms responsibility centers, workstations and products wherein each product is linked to a workstation and each workstation is linked to a responsibility center.

10. The system of claim 1 wherein said activity data includes consumption data, performance data, item price data and optionally reimbursement data.

11. The system of claim 1 wherein the data exchange module includes means for allowing manual uploading of the activity data.

12. The system of claim 1 wherein the data exchange module includes means for allowing the user to define information source files residing in the user computer system, the information source files include user activity data.

13. The system of claim 12 wherein the data exchange module integrates to existing Information Systems residing in the user system for allowing automatic uploading of the user activity data into the server computerized system.

14. The system of claim 1 wherein said analytical engine includes algorithms for calculating the actual quantities of cost items comprising a product tree in accordance with the user consumption and performance data whereby actual quantities are calculated by multiplying the baseline cost item quantity by the bias of the cost item consumption, wherein the bias is the ratio between the actual and expected consumption.

15. The system of claim 14 wherein the actual quantities are calculated per product as follows:

16. The system of claim 1 further comprising a cost analysis module, the cost analysis module providing information generated by the analytical engine and stored in the data warehouse thereby providing the user with cost analysis information.

17. The system of claim 16 wherein the cost analysis information is generated and provided to the user in real time.

18. The system of claim 1 further comprising a simulation module, the simulation module providing information generated by the analytical engine and stored in the data warehouse thereby providing the user with simulations and budget forecasting.

19. The system of claim 1 further comprising a benchmarking module, the benchmarking module integrates data stored in the data warehouse and repository to display various unit comparisons.

20. The system of claim 1 further comprising a module for initiating e-commerce at the point of need.

21. The system of claim 1 wherein the data communications network is the Internet.

22. The system of claim 1 wherein the data communications network is a local area network.

23. In a data communication network comprising a plurality of healthcare providers computerized systems, a method implemented in a server computerized platform accessible to said computerized systems by a client system, for providing activity-based cost-analysis and cost-control services for said healthcare providers, said method comprising the following steps:

i) receiving and storing activity data in a database;

ii) upon receiving a request for cost analysis task from a user, processing the activity data in accordance with an organizational structure related data, to obtain cost analysis results in accordance with the cost analysis task;

24. The method of claim 23 further comprises the step of providing a user with setup module for collecting and defining an organizational structure, product trees and administration details.

25. The method of claim 23 further comprises the step of receiving the organizational structure related data of said user.

26. The method of claim 23 further comprises the step of storing the organizational structure related data of said user in a database.

27. The method of claim 26 wherein the database is a users setup database.

28. The method of claim 23 further comprises the step of providing a user with a module to upload activity data at predetermined times into the server computerized platform.

29. The method of claim 28 wherein the step of providing the user with a module to upload activity data further comprises the steps of:

preparing the files to be uploaded by creating uploaded files description and configuring the upload process;

uploading the files to the server.

30. The method of claim 28 wherein the activity data is raw.

31. The method of claim 23 wherein the database for storing activity data is a users activity database.

32. The method of claim 23 further comprises the step of providing a user with a module to request various cost analysis, simulation, budgeting and benchmarking tasks.

33. The method of claim 23 wherein the processing of activity data is performed by a cost analysis module.

34. The method of claim 32 wherein the cost analysis module determines actual quantities by multiplying the baseline cost item quantity by the bias of the cost item consumption, wherein the bias is the ratio between the actual and expected consumption.

35. The method of claim 34 wherein the actual quantities are calculated per product as follows:

36. The method of claim 23 further comprises the step of sending results to a user over a data communication network.

37. In a data communication network having at least one user, a computerized organizational structure for storing activity-based cost-analysis and cost-control services for the healthcare industry, said organizational structure having a storage device and connected to at least one CPU, said organizational structure comprising:

At least one responsibility center;

For each responsibility center at least one workstation; and

For each workstation at least one product cost tree, the product cost tree is associated with at least one cost item holding data relative to the product cost tree.

38. The apparatus of claim 37 wherein the product cost tree is a procedure defined by the quantity and allocation formula for calculating the cost of the procedure in relation to the cost item.

39. The apparatus of claim 38 wherein the product cost tree is a service defined by the quantity and allocation formula for calculating the cost of the service in relation to the cost item.

40. The apparatus of claim 37 wherein the product cost tree is further comprises at least one main cost category and at least one sub level category.

41. The apparatus of claim 40 wherein the main cost categories are predetermined and fixed.

42. The apparatus of claim 40 wherein the sub level category is flexible.

43. The apparatus of claim 37 wherein a cost item is a direct cost relating to the production of a product.

44. The apparatus of claim 37 wherein a cost item is an indirect costs relating to the overall expense of operating the at least one responsibility center.

45. The apparatus of claim 37 wherein a cost item is a fixed cost that does not change as the volume of the item changes.

46. The apparatus of claim 37 wherein a cost item is a variable cost that changes as the volume of the item changes.

47. The apparatus of claim 37 wherein a cost item further includes information about quantity relating to a baseline quantity defined for the item cost, and allocation basis formula for allocating costs associated with the cost item.