Cost & performance software for the healthcare sector worldwide
In the early days of CostPerform, our software platform was in high demand in the hospital sector. Building on that base we now serve customers throughout every area in the healthcare sector.
CostPerform found out that a lot of hospitals had a large amount of data, but not the right information to guide the strategic and operational issues. For example, the management of Rural hospital Programs in the United States had records of budget and actual expenditures by department and the gross revenue for every procedure for every patient. Management could not, however, determine the profitability of any department or of its six clinics located in communities in the area.
Healthcare solutions by acquired insights
The CostPerform model cuts through the myriad of financial and patient data to provide the Hospital Management of Rural with timely information to determine:
- That all but one of its remote clinics cost more to operate than it generated in revenue;
- Certain specialties previously believed to be significant profit centers were only marginally profitable;
- Profitability was significantly impacted by a few payers – reimbursement rates were not adequate to cover costs;
- That its operating room and related services capacity was substantially in excess of usage.
The model designed with the software of CostPerform led to changes in accounting methods to book discounts to specific patients. Procedures are improved by better information and better access to special pricing. The information is being used to evaluate whether to focus on specific service lines for growth or to refer to other medical facilities. The hospital will continue the use of CostPerform in evaluating the next year’s performance to understand relative service line profitability trends over time and to evaluate the effects of changes in incoming patient problems and changes in staffing.