News & Events

• News

• Media Coverage

• Events

• Client Summit

MedeAnalytics delivers healthcare performance management solutions that improve
financial, operational and clinical outcomes, with compelling return on investment and rapid time-to-value.

July 2009 | Healthcare Purchasing News

“While data standards may be just the protective garb that battle-weary supply chain managers must don to continue the war on cost increases its only a considerable component of a more comprehensive strategy.
 
“Think of it more like a high-tech battle suit that must be fortified and fueled by internal electronics and human power. At the center of that engine is the chargemaster (CDM) and the item master (IDM), overseen by revenue cycle and supply chain managers, respectively.
 
“A growing number of healthcare supply chain professionals extol the value of linking the two. In fact, according to Healthcare Purchasing News’ 2009 Materials Management Salary Survey results, 42 percent of survey respondents indicated that they’ve gotten involved in revenue cycle management, and 17 percent in recovery audit contractor audits.
 
“But closing the fiscal loop between the expense and revenue sides of the balance sheet requires monumental effort to maximize surefire rewards, including extrapolating the most out of an adopted data standardization and synchronization strategy…
 
“Should every single supply item have a charge code in a facility’s system? Why?...
 
“John Hansel, vice president, product marketing for provider solutions, MedeAnalytics, Emeryville, CA:
 
‘To keep the linkage between the IDM and CDM manageable, hospitals should start by mapping their high-cost supplies (typically used in surgical procedures) that represent the majority of ‘charge-sensitive’ items. Other standard medical supplies are often reimbursed as part of a DRG case rate, so their costs and charges have less value in the revenue cycle…’
 
“Should healthcare systems maintain a common chargemaster and item master across all of their facilities? Why? What are the pros and cons of either?...
 
“HANSEL: ‘While driving and maintaining standardization takes a tremendous amount of work, gaining visibility into health system- or IDN-wide supply usage provides many important strategic benefits, enabling standardization initiatives, benchmarking analyses, and enhanced leverage with suppliers – and perhaps even group purchasing organizations – to name a few.’”
 

Source: Rick Dana Barlow, “Tightening those database loopholes: Revenue cycle-supply chain links sync data, drive data standards,” Healthcare Purchasing News, July 2009, http://www.hpnonline.com/inside/2009-07/0907-sp.html.

“While driving and maintaining standardization takes a tremendous amount of work, gaining visibility into health system- or IDN-wide supply usage provides many important strategic benefits, enabling standardization initiatives, benchmarking analyses, and enhanced leverage with suppliers – and perhaps even group purchasing organizations – to name a few.”

John Hansel

Vice President, Product Marketing,
Provider Solutions

MedeAnalytics