1. Calculating & Reporting Healthcare Statistics
Second Edition
Chapter 9
Statistics Computed within the
Health Information Management Department

2. Health Information Statistics
Usually relate to
Unit labor cost
Productivity
Staffing
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3. Health Information Statistics
Annual compensation for each employee
Calculated by multiplying the number of hours worked per year (2,080 for a full-time employee) by the hourly wage and then multiplying that number by the benefits received
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4. Health Information Statistics
Annual compensation for each employee
Formula for full time equivalent (FTE)
2080 hours x hourly wage = Annual salary x amount of benefits = annual compensation
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5. Health Information Statistics
Unit labor cost
Determined by dividing the total annual compensation by total annual productivity
Formula
Total (sum) annual compensation / Total (sum) of annual productivity = $/unit
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6. Health Information Statistics
Productivity
Defined as a unit of performance defined by management in quantitative standards
A ratio to measure how well an organization converts input into output
Most health information departments have productivity standards for different areas in the department
For example, in the coding section, a productivity standard may be that employees should code 4 inpatient records per hour
In a 7.5 hour work day (taking into account breaks that the employee will take) that would be 30 inpatient records per day
Factors that influence this decision
Other tasks for coder such as abstracting, answer the phone, getting additional information
Types of records coded – long LOS, difficult clinical cases
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7. Health Information Statistics
Productivity
Two simple formulas that accurately calculate labor productivity
First
Completed work = Total work output – Defective work
And, second
Labor productivity = Completed work/hours worked to produce total work output
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8. Health Information Statistics
Productivity
Determining the total work output and the hours worked is clear
Determining the defective work involves auditing work to determine if any work is defective
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9. Health Information Statistics
Productivity
Three ways to audit records
Perform a 100% review of records coded
Perform a review of records coded chosen through a random sample
Use a fixed percent random sample audit
It requires the manager to select a fixed percent of total records for each employee to review
There is a predetermined quality standard then work is checked and classified as completed work or defective work
Additional records could be reviewed if the manager needs additional information to determine the type of defect or until all the records have been reviewed
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10. Health Information Statistics
Staffing Levels  
There are a variety of methods to determine staff
Patient encounters per Full Time Equivalent (FTE) per month
A patient encounter is any personal contact between a patient and a physician or other person who is authorized to furnish healthcare services for the diagnosis or treatment of the patient
These may include laboratory services, x-ray, and others
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11. Health Information Statistics
Staffing Levels
This is determined by dividing the number of patient encounters by the productivity
An FTE is the total number of workers, including part-time, in an area as the equivalent of full-time positions
The number of FTEs does not always equal the actual number of employees, as two or more part-time employees might equal one FTE
Formula
Patient encounters /Productivity = Number of FTEs needed
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12. Health Information Statistics
Budgets 
A plan that converts the organization’s goals and objectives into targets for revenue and spending
Planning of the budget begins several months before the facility’s fiscal year begins
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13. Health Information Statistics
Budgets
Estimates are made of expenses for the department
Including wages and benefits for employees
Supplies
Travel and education
Membership dues
Subscriptions
Postage
Copying
Equipment maintenance contracts, etc.
If there is revenue in the health information department these are also this should be estimated
Estimates may include release of information
Outsourced coding, etc.
Transcription
©2006 All rights reserved.

14. Health Information Statistics
Budgets
Operational Budgets
The amount of money needed to run the business
Variance
Differences between what was budgeted and the actual expenses
A disagreement between two parts
This information can be used to monitor the activities of the department
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15. Health Information Statistics
Budgets
Operational Budgets
Variance
Formula
Actual amount spent – amount budgeted = variance
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16. Health Information Statistics
Budgets
Capital Budget
The major assets that will be purchased during the fiscal year
For example, equipment for the health information department
Usually “high-dollar “purchases
A facility will define what “high-dollar” means
For example, purchases over $500
The item usually has a “life” of more than one year
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17. Health Information Statistics
Budgets
Capital Budget
Cost Justification
Payback period - how long will it take to recover costs
Formula
Total cost of project/Annual incremental cash inflow
Annual incremental cash inflow
The savings that a department realizes
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18. Health Information Statistics
Budgets
Capital Budget
Cost Justification
Return on investment - the rate at which cash is recovered from an investment project
Formula
Average annual incremental cast inflow/Total cost of the project
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19. Health Information Statistics
Verification of Statistical Reports
Standardization of terminology, data elements, and formulas will result in reliable and useful data
When a computerized statistical report is received, the HIM practitioner should examine it carefully
Verify the total number of discharges listed in a report from coded records and compare it to the total number of discharges according to the census data
The HIM practitioner may need to calculate certain statistics (for example, death rates) and carry them out to the second decimal place to make the information more valuable to administration or the medical staff
Tables or graphs can be created to display a portion of a computerized statistical report
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20. Health Information Statistics
Examples of Reports Used
Discharge Reports
Financial Statistical Reports
Readmission Reports
Case Mix Reports
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21. Health Information Statistics
Case Mix
The average relative weight of all cases treated at a given facility or by a given physician
Reflects the resource intensity or clinical severity of a specific group in relation to the other groups in the classification system
Always reported with four decimal points
Formula
Sum of the weights of diagnosis-related groups for patients discharged during a given period/ Total number of patients discharged
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22. Health Information Statistics
Profiling
A measurement of the quality, utilization, and cost of medical resources provided by physicians that is made by employers, third-party payors, governmental entities, and other purchasers of health care
Important to the facility’s administration
Are physician services are increasing or decreasing
If increasing then the question of additional equipment or staff needs to be addressed
If decreasing, the question of why becomes paramount
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23. Health Information Statistics
Spreadsheets
Allow the user to enter text, number and formulas to assist in calculations
Consists of columns lettered across the top of the document and rows numbered down the left side of the document
Software packages perform basic arithmetic functions as well as data sorting, formatting for printing and graph creation
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