Financial Impact for Restoritive Reimbursement

This report is prepared by the independent consulting group, Myers and Stauffer. The change of case mix reimbursement is listed below by a client facility in Indianapolis.

The estimated financial benefit of the increase in the Medicaid case mix index is as follows. The estimate is based on a baseline Medicaid case mix index of 0.80.

Period Ending Rate Change Revenue Change

Quarter 1 $(0.63) $(2,696)

Quarter 2 0.64 2,758

Quarter 3 1.22 5,115

Quarter 4 3.35 14,626

Quarter 5 4.02 16,864

Quarter 6 3.35 14,053*

Quarter 7 2.68 10,999*

Total Reimbursement Increase $61,719

*Based on a 50 bed facility, Medicaid patient days after 7 quarters.

The Medicaid case mix index this facility was 0.80 prior to the implementation of the Qtrac Software in the first quarter. The Medicaid case mix indices are listed to the right.

Quarter Ended CMI

Quarter 1                               0.79
Quarter 2                               0.81
Quarter 3                               0.83
Quarter 4                               0.85
Quarter 5                               0.86
Quarter 6                               0.85
Quarter 7                               0.84

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