Cost Accounting Module
Organizations understand what they are charging and what they are being paid based off the contracted rates - but they have NO IDEA what it costs to provide the level of service for any given patient.
The KREG Management Cost Accounting Module (MCA) is a robust matrix based tool to identify core expense and revenue items for the development of per unit costs for 100% of the charge items in a client’s Charge Master.
General ledger expenses, supplemented with payroll detail if needed, are organized by where activity takes place for the revenue charge items. Expenses are consolidated first into at least ten client defined default expense categories and further refined into departmental subaccount or expense object code subcategories. While each subcategory rolls into one of the overall base ten categories for analysis by fixed, variable and indirect costs in the PLM system, additional details on all of the expenses can be traced back to the charge item level in the MCA module.
As an example, the MCA module allows for the ability to see the impact of 'staff employees' versus 'contracted personnel' and the direct results on the bottom line by contract when put into full use with the Patient Level database and Contract Management applications.
A single step down methodology in conjunction with the ability to reclassify and adjust line items in a department ensures indirect expenses are properly assigned to the revenue areas and furthermore to the charge item level of detail for a true cost per unit analysis.
In ensuring that 100% of the general ledger expenses are consumed over the revenue charge items, with Senior Management and Departmental Directors hands on involvement and guidance, from the same time period the Management Cost Accounting system has the faith and trust of the organization with the results.
The charge item costs are date stamped and transferred to the PLM system to be combined with the reimbursement module to identify profitability over time.