1. The Health Matrix -DRGS

2. We Know…. Hospitals need to be cost effective They are usually non-profit & have to watch every penny One way to control cost is through DRG’s (Diagnostic Related Groups)

3. DRG’s Classifies a diagnosis into one payment group A limit is placed on the cost of care If the cost of care is > than the set amount, the agency must accept the loss If the cost of care is < than the set amount, the agency makes a profit

4. Because of this….. Hospitals track workers hours based on payments received So…….. We are going to look at DRG’s, define the math system, and use matrices to determine whether this agency is operating cost effectively. We will do multiplication in matrix form.

5. Have you ever compared the cost of clothing? If you work, do you ever wonder why one week you work 12 hours and the next week 32 hours? Do you know what a matrix is? Have you ever used one? Do you know who Keanu Reeves is?

6. Terms Matrix: A rectangular array of numbers, in rows & columns Matrices: Plural for Matrix Rows: Horizontal data (N = # of rows) Columns: Vertical data (M = # of columns) Order of a Matrix: Is its size N x M, read as N by M)

7. Let’s look at how to set up a Matrix See Flip Chart & distribute hand outs In order for two matrices to be multiplied, the # of columns of the 1 st matrix must = the # of rows in the 2 nd matrix Because they match they can be multiplied

8. How to determine the size of the answer See page 2 of flip chart Look at the number of # of rows in Matrix A & the # of columns in Matrix B Multiply the two numbers R x C = answer Matrix, 1 x 1 = one answer Note appendix B (Note 4 rows X 1 column = 4 answers) See page 3 of flip chart - Do 1 st row together Continue with examples on flip chart See appendix B transparency Complete appendix B with your partner & do group review

9. Assessment Put your name at the top Complete Discuss