DRG Homework

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					Kidney Transplant cost = $18.2K at Methodist Hospital, $22.1K at Santa Rosa each by
Medicare DRG rates. Differences d/t Santa Rosa is not for profit and Methodist is a privat
organization. Higher rates from medicare to Santa Rosa d/t higher uninsured/medicaid
patients and less training and teaching at the facility.
Methodist Hospital
DRG=652     (Kidney Transplant)



DRG Operating Payment            $ 16,929.97

[(Standardized Labor Share x Operating Wage Index) + (Standardized Non-Labor Share x Operating COLA Adjustment for Hospitals Located in
Alaska and Hawaii)] x (1 + Operating IME + Operating DSH Adjustment Factor) x (DRG Weight)

                                   Amount                  File
    Standardized Labor Share       $3,051.44    Table1ARevised.pdf
        Operating Wage Index           0.8895   WI TABLES FY 2008 Final Rule.xls
Standardized Non-Labor Share       $1,870.24    Table1ARevised.pdf
Operating COLA (AK & HI only)               1   imppuf08_103107.xlsm
                         IME           0.0064   imppuf08_103107.xlsm
                        DSH            0.1983   imppuf08_103107.xlsm
                 DRG Weight            3.0654   FY 2008 Final Rule Table 5 Final.doc.xlsm

DRG Capital Payment              $ 1,310.39

(Standard Federal Rate) x (GAF) x (Large Urban Add-on, if applicable) x (Capital COLA Adjustment for Hospitals Located in Alaska and Hawaii)
x (1 + DSH Adjustment Factor + IME Adjustment Factor) x (DRG Weight)

                                   Amount                  File
        Standard Federal Rate       $413.73     Table1ARevised.pdf
        Geographic Adj. Factor        0.9229    WI TABLES FY 2008 Final Rule.xls
           Large Urban Add-on            1.03   imppuf08_103107.xlsm
   Capital COLA (AK & HI only)              1   imppuf08_103107.xlsm
                         DSH         0.07804    imppuf08_103107.xlsm
                          IME         0.0089    imppuf08_103107.xlsm
                  DRG Weight          3.0654    FY 2008 Final Rule Table 5 Final.doc.xlsm

Total DRG Payment                $ 18,240.36
Christus Santa Rosa Healthcare
DRG=652     (Kidney Transplant)



DRG Operating Payment            $ 20,617.69

[(Standardized Labor Share x Operating Wage Index) + (Standardized Non-Labor Share x Operating COLA Adjustment for Hospitals Located in
Alaska and Hawaii)] x (1 + Operating IME + Operating DSH Adjustment Factor) x (DRG Weight)

                                   Amount                  File
    Standardized Labor Share       $3,051.44    Table1ARevised.pdf
        Operating Wage Index           0.8895   WI TABLES FY 2008 Final Rule.xls
Standardized Non-Labor Share       $1,870.24    Table1ARevised.pdf
Operating COLA (AK & HI only)               1   imppuf08_103107.xlsm
                         IME           0.0779   imppuf08_103107.xlsm
                        DSH          0.38921    imppuf08_103107.xlsm
                 DRG Weight            3.0654   FY 2008 Final Rule Table 5 Final.doc.xlsm

DRG Capital Payment              $ 1,522.96
(Standard Federal Rate) x (GAF) x (Large Urban Add-on, if applicable) x (Capital COLA Adjustment for Hospitals Located in Alaska and Hawaii)
x (1 + DSH Adjustment Factor + IME Adjustment Factor) x (DRG Weight)

                                   Amount                  File
        Standard Federal Rate       $413.73     Table1ARevised.pdf
        Geographic Adj. Factor        0.9229    WI TABLES FY 2008 Final Rule.xls
           Large Urban Add-on            1.03   imppuf08_103107.xlsm
   Capital COLA (AK & HI only)              1   imppuf08_103107.xlsm
                         DSH         0.12976    imppuf08_103107.xlsm
                          IME         0.1335    imppuf08_103107.xlsm
                  DRG Weight          3.0654    FY 2008 Final Rule Table 5 Final.doc.xlsm

Total DRG Payment                $ 22,140.64