Method and means for ranking and pricing items

• US 5,794,220 A
• Filed: 08/22/1994
• Issued: 08/11/1998
• Est. Priority Date: 11/13/1990
• Status: Expired due to Term

• Current Assignee: MedCom Solutions, Inc.
• Original Assignee: MedCom Solutions, Inc.
• Inventors: Hunt, William A.
• Primary Examiner(s): Hayes, Gail O.
• Assistant Examiner(s): VOQUI, THANH-HA
• Application Number:
  US08/294,219
• Time in Patent Office: 1,450 Days
• Field of Search: 364/401, 364/406, 364/408, 395/234, 395/240, 705/34, 705/40
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions

Abstract

The present invention provides a computerized method for ranking items based upon the interrelationship of the volumes and revenues and payment methodologies of items sold. First a base rank value is determined based upon the measured distribution of item volume, item revenue and the payor methodology mix. A weighted value is then determined by the computer system for each item by high and low assigned values which are then normalized and sorted to provide a normalized ranking. The pricing of each item is based upon the normalized ranking. The method of the present invention is used to determine what items should increase in price, what items should decrease in price, and what items should remain constant according to each item'"'"'s relative value to net income.

Claims

1. A computerized method of controlling transfer, storage retrieval and processing of data on a computerized data processing system comprising at least one computer processor in combination with at least one data storage device and at least one output display in order to execute a methodology of reimbursement optimization in which a plurality of saleable items are ranked according to a selected value and then priced according to the rank selected value, wherein said computerized method comprises the execution of computer program instructions by said data processing system to convert input data representing the pricing attributes of each said slaeble item into one or more output records that represent the outcome of performing said reimbursement optimization on the pricing attributes of each said saleable item, wherein said program instructions execute the following operations;

(a) inputing data representing the pricing attributes of each said saleable item into said data processing system from at least one external record in order to digitize and store said input data within at least one said data storage device;

(b) entering said program instructions into said data processing system to execute at least one payment methodology on said input data wherein one of said methodologies is assigned to a payor volume associated with each said saleable item stored;

(c) using said at least one computer processor to convert said input data into said output records by following said program instructions to execute said methodology, wherein said methodology comprises the following operations;

(i). generating a base rank value for each said saleable item, wherein said base rank value is based upon pricing attributes that comprise at least a payor volume classification mix and at least one saleable item revenue and other pre-selected specifications, and wherein said base rank value providing an indication of potential advantage to be achieved in changing the pricing associated with a saleable item;

(ii). determining a weighted base rank value for each said saleable item;

(iii). using a high and low weighted base rank value to separate said base rank values between a highest base rank value and a lowest base rank value to generate data representing the outcome of said reimbursement optimization;

(iv). creating output records containing a list of said saleable items in which said price is adjusted by executing said program instructions to apply said ranked optimization to each said saleable item to be repriced.

2. A method as set forth in claim 1, including the step of generating a normalized base rank value by normalizing said weighted base rank value for each saleable item and the step of determining the potential increase or decrease in the value of said saleable item by repricing each saleable item price according to its normalized base rank value.

3. The method as set forth in claim 2 wherein the base rank value of each item can vary from -1.0000 to 1.0000.

4. The method as set forth in claim 2 wherein said price of a saleable item is either end-user inputted or computer-generated and is stored in said data processing system and cannot be changed and is assigned a base rank value of -1.0000 by said data processing system.

5. The method as set forth in claim 4 including the step of pricing each item according to its weighted and separated rank or by its assigned price.

6. The method of set forth in claim 1 wherein said reimbursement optimization is determined for each saleable item by end-user selection of said payment methodology for each payor volume of each said saleable item stored in said data processing system.

7. The method as set forth in claim 6 wherein said classification mix includes a payor payment mechanism and a payor volume for each said saleable item and wherein the weighted base rank value is a weighted revenue volume.

8. The method as set forth in claim 1 wherein a particular base rank between the highest and lowest base rank values is determined by selecting an average of the highest and the lowest base rank values stored in said data processing system.

9. A method as set forth in claim 1 wherein an end-user of said data processing system inputs into said computer a percentage recognition factor of said payor volume for selected reimbursement assignments.

10. A method as set forth in claim 1 wherein said reimbursement optimization comprises the setting of price parameters per individual saleable item independent of a departmental setting.

11. A method as set forth in claim 1 wherein said reimbursement optimization comprises determining the payment level from various payors wherein a price that is lower than the payor'"'"'s prescribed amount per saleable item initiates recalculation of said price according to parameters set by the end-user.

12. A method as set forth in claim 1 wherein the new total business revenue can be established by the end-user and calculated by said data processing system.