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ROI Economics of Non-Clinical Information Systems

Staff Reporters

Unlike clinical or health information systems [CIS] or [HIS], nearly all hospitals have at least some functions computerized in a technology administrative information system environment.

Usual Functions

According to Brent A. Metfessel; MD MS, typical functions of any health or hospital administrative information system [HAIS], include the following, which may impact return on investment [ROI] economics: 

• admission scheduling;
• accounts payable and receivable;
• patient and payer billing;
• patient demographic information such as name, unique identifier, age, gender, reason for admission, and other data items;
• staffing and staff scheduling;
• pharmacy inventory;
• internal finance, budgeting and accounting;
• patient census; and
• facility maintenance.

Invoicing and Billing Functions

Billing functions are another area where a hospital can obtain more immediate ROI. Often, newly implemented billing systems can provide a hospital with a positive ROI within the first year of active system use. Automating the billing functions, such as the Centers for Medicare and Medicaid Services (CMS) UB-92 claim submission form, can save several FTEs per 100 beds.

Administrative functions are one of the areas where computerized systems can lead to significant revenue increases, as a quicker turnaround time and computerized entry of patient information can lead to improved coding quality and efficiency.

Example:

One hospital in the southern United States enhanced its surgery departmental billing system, reducing the billing turnaround from a three- to four-day cycle to a 24-hour process, leading to a significant increase in revenue. More accurate and complete coding also leads to an increase in the revenue stream as more secondary diagnoses are entered and overly general primary diagnoses are given more specific International Classification of Diseases (ICD-9) codes.

Assessment

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Conclusion

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Filed under: Health Economics, Information Technology | Tagged: information systems |