When is the best time to implement a new CDM strategy?

CFO’s have tackled charge master changes, reviews, and bench-marking exercises at different times of the fiscal cycle with varying degrees of success. Having well-defined goals, a reasonable timeline (to avoid “mission creep”), and effective tasking are key.

The short answer to the first question is now, especially if you seek any of the following:

• Preserve existing net revenue
• Reduce contractual allowances strategically without forfeiting net dollars
• Make the charge master more rational, transparent, and defensible
• Grow net revenue by service line where brand is strong or emerging
• Take advantage of new market opportunities in select service lines
• Position the hospital more favorably in its market with competitor hospitals
• The ability to model and assess several different pricing scenario

Is one time of the fiscal year better than another to implement a new CDM strategy?

Many CFO’s still implement a straight across-the-line-rate increase as part of a new fiscal budget because they are unaware there is a better and easier way moving forward. Predictive pricing analytics enable us to complete a full pricing analysis and assessment from start to finish in only a few weeks.This always includes several different pricing scenarios, back-and-forth as needed, and providing a replacement CDM file for upload.

If you implemented a 4% rate increase with a 2018 new budget that began in July 1, we can reverse that increase and replace it with a strategic one that will ensure you hit your targets even though the new fiscal year is in its fourth month. If you are a calendar year operating hospital, there still is ample time to reap the benefit of using our predictive pricing analytics to meet your budgetary needs.

How do you drill-down to needs versus wants?

Strategic conceptualizing cannot be overrated. Your plate is more full than at any previous time and prioritizing initiatives and tasking has never been more difficult. And, you know that how you set charges (pricing) will still determine much of the hospital’s net revenue … and the hospital’s revenue stream is as important as its brand currency, especially at a time when the entire industry is undergoing continuing change.

“Needs” are immediate, tactical, and strategic whereas “wants” are conceptualized goals for the future.

Is it possible the charge master is as important or even more so than at any other time?

We believe the short answer is yes.

The challenges in health care today and risk are greater than ever before. None of us is a seer, but we know that harnessing our PinPoint algorithm’s predictive pricing analytics will help you make the current or new fiscal year all you want it to be.

Timing?

Our timing is your timing and your timing can be any time during the current fiscal year. Why wait?