OFFSETTING COSTS FOR CARDIO-THORACIC SURGICAL HEART SERVICES

ON NATIONAL “GO RED DAY”

My Case Model Used in Business School

Courtesy: www.CertifiedMedicalPlanner.org

By Dr. David E. Marcinko MBA

An MCO asked the Hospital of St. Mackenzie to provide coronary artery bypass graft (CABG) services, with catheterization, for its insured patients. The CFO at St. Mackenzie was pleased to review their request for proposal (RFP) as this was the exact type of patient needed to help offset costs of the new heart surgical services wing at the hospital.

Following some discussion, the MCO offered to pay the hospital $34,805 for a normal triple artery CABG without complications.

The CFO reviewed the standard treatment protocol and standard cost profile for the procedure. To her dismay, she discovered that the hospital’s cost would be $36,000 with a six-day average length-of-stay in the new wing.

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QUERY: What should she do and what facts are needed to make an informed decision?

ANSWER: https://healthcarefinancials.files.wordpress.com/2007/12/cvpa-3.pdf

Conclusion: Your thoughts are appreciated.

THANK YOU

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