"The Ronan Report" provides insight about the activities at the Western Maryland Health System in Cumberland, Maryland, and about the changes taking place in healthcare today from a CEO's perspective.
Wednesday, April 27, 2011
Total Patient Revenue
Beginning this fiscal year (2011), WMHS is no longer paid on a volume-based model (charge per case). We are now paid under a total patient revenue model. WMHS is one of 10 Maryland hospitals in what you may call a 3-year demonstration project. Under TPR, our annual amount of total revenue is fixed for all services, care, treatment and procedures provided in the hospital. Our focus is now the appropriateness of the admission rather than the number of admissions. We must also focus on the setting where the care or service is delivered. TPR focuses on wellness and the cost effectiveness of the care delivered; it is preparing us for health care reform on a national level. Introducing this change throughout WMHS has had its challenges, but it is so rewarding to see the leadership of the organization embrace this change. Knowing that we have an opportunity to make a difference in lives of those we serve, gives one a great feeling and reminds us why we chose this field.