Real World Examples by mercy2beans112

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									William J. Ward, MBA                                                                                                                                                                                                    RRS Moetray Tool




                                                                                                                                                      Real World Examples

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                                    William J. Ward, Jr., MBA
           Director, MHS Degree Program in Health Finance and Management
                   Johns Hopkins Bloomberg School of Public Health


                                                                                                                                                                                                                                             7
                                                                                                                                Source: Franklin Square Hospital




                          Real World Examples                                                                                                         Real World Examples
                                         Number of Non-ICU Code Blue Calls
                                           May 2005 through August 2006

                                                                                                                                          Measure                           Pre-RRT               Post-RRT Improvement
                                                                                                                                       Cardiac Arrests                         63                    22        65%
                                                                                                                                       Deaths from
                                                                                                                                                                                  37                    16                     56%
                                                                                                                                       Cardiac Arrests
                                                                                                                                         ICU Days Post
                                                                                                                                                                                 163                    33                     80%
                                                                                                                                         Arrest
                                                                                                                                         Hospital Days
                                                                                                                                                                               1,363                   159                     88%
                                                                                                                                         Post Arrest
                                                                                                                                                Deaths                           302                   222                     25%
      Source: “Rapid Response Team Challenges, Solutions, Benefits,” Critical Care Nurse, Volume 27, No. 1, February 2007        Source: Maryland Hospital Association - Improving Workflow on Patient Care Units Project




                          Real World Examples                                                                                             Cost and Revenue Behavior
                                                                                                                                  $$
                                                                                            Monetary
                                Financial Impact
                                                                                             Value
           Cost Reduction from Fewer Codes                                                            $8,000                                                                                  e
                                                                                                                                                                                         nu                         Pro
                                                                                                                                                                                                                            fits
                                                                                                                                                                                    ve
           Revenue from Reduced ER Walkouts                                                        $50,000                                                                     Re
                                                                                                                                                                                                                                   Expense
           Revenue from Increased Capacity                                                       $9,800,000

           Cost of Rapid Response Team                                                           ($150,000)
                                                                                                                                                                                                                                   Volume
      Source: Maryland Hospital Association - Improving Workflow on Patient Care Units Project




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William J. Ward, MBA                                                                                                                                                           RRS Moetray Tool




                 RRT Benefit Calculator                                                                               RRT Benefit Calculator
        Key                           Indicator                       Formula          Amount                Key                           Indicator                       Formula          Amount
         A    Annual Number of Cases Benefiting from RRT              Input Data                             A     Annual Number of Cases Benefiting from RRT              Input Data          180.0
         B    Average Patient Days Saved via RRT in these cases       Input Data                             B     Average Patient Days Saved via RRT in these cases       Input Data            1.5
         C    Potential Bed Days of RRT-Associated Added Capacity       AxB                                  C     Potential Bed Days of RRT-Associated Added Capacity       AxB               270.0
         D    Overall Hospital ALOS                                   Input Data                             D     Overall Hospital ALOS                                   Input Data           4.25
         E    Potential Annual Additional Admissions Because of RRT     C/D                                  E     Potential Annual Additional Admissions Because of RRT     C/D                63.5
         F    Average Hospital Net Revenue per Case                   Input Data                             F     Average Hospital Net Revenue per Case                   Input Data   $      4,000
         G    Potential Annual Incremental RRT-Associated Revenue       ExF                                  G     Potential Annual Incremental RRT-Associated Revenue       ExF        $    254,118
         H    Cost to Restock a Crash Cart                            Input Data                             H     Cost to Restock Crash Cart                              Input Data   $       600
         I    Cost Reduction from Reduction in Codes                    HxA                                   I    Cost Reduction from Reduction in Codes                    HxA        $    108,000
         J    Annual Cost of Rapid Response Team                      Input Data                              J    Annual Cost of Rapid Response Team                      Input Data   $     50,000
         K    Profit (Loss) associated with RRT                        G+I-H                                 K     Profit (Loss) associated with RRT                        G+I-H       $    312,118
         L    One Time RRT Implementation Costs                       Input Data                             L     One Time RRT Implementation Costs                       Input Data   $     10,000
         M    Annual Return on Investment for RRT                       K/L                                  M     Annual Return on Investment for RRT                       K/L               31.21




                                                                                                                               Missing the Point
                                                       “In additional to the
                                                       operational benefits of
                                                       using an RRT, a financial
                                                       benefit also accrues. The
                                                       hospital experiences
                                                       significant cost
                                                       reductions by avoiding
                                                       unnecessary transfers to
                                                       the ICU….”
                                                                                   Critical Care Nurse
                                                                                     Volume 27, No. 1
                                                                                        February 2007




        Monograph & Model Available at . . .
                                         www . VHA . com




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