Abstract
Background
In Australian Emergency Departments, compensable patients under the Transport Accident Commission, Workcover or Overseas Visitor Agreement are a source of revenue to support effective and efficient delivery of healthcare.
Objective
This is a Compensable Billing Recovery NPV Calculator, written to solve a very specific management question that is relevant for Australian Emergency Departments. It aims to calculate the Net Present Value of a cash flow stream that arises from spending money to recover TAC, Workcover and Overseas Visitor Agreement billings.
Methods:
The code was written in R Studio v1.2.5033 with base R 3.6.0 with the help of published Monte Carlo methods1.
Six inputs are required:
- Annual presentation growth rate
- Annual presentations
- Annual percentage compensable
- Average $/pt recovered
- Estimated percentage recoverable
- Cost of recovery per patient
When the script is run, a simulation of x years of billings recovery occurs, and this is repeated y times. The variables x and y are customisable. The outputs are the descriptive statistics for all the simulations, the 95% uncertainty interval, and a histogram describing all the simulation results.
Results
Previously published data was used to run the simulation. The 95% uncertainty intervals obtained in the test run were $1.88M-$2.17M (Medicare Benefits Schedule values) and $5.93M-$6.86M (Australian Medical Association values).
Conclusion
Australian Emergency Departments who are considering obtaining additional funding to recover compensable billings can use this calculator to strengthen their business case.
In Australian Emergency Departments, compensable patients under the Transport Accident Commission, Workcover or Overseas Visitor Agreement are a source of revenue to support effective and efficient delivery of healthcare.
Objective
This is a Compensable Billing Recovery NPV Calculator, written to solve a very specific management question that is relevant for Australian Emergency Departments. It aims to calculate the Net Present Value of a cash flow stream that arises from spending money to recover TAC, Workcover and Overseas Visitor Agreement billings.
Methods:
The code was written in R Studio v1.2.5033 with base R 3.6.0 with the help of published Monte Carlo methods1.
Six inputs are required:
- Annual presentation growth rate
- Annual presentations
- Annual percentage compensable
- Average $/pt recovered
- Estimated percentage recoverable
- Cost of recovery per patient
When the script is run, a simulation of x years of billings recovery occurs, and this is repeated y times. The variables x and y are customisable. The outputs are the descriptive statistics for all the simulations, the 95% uncertainty interval, and a histogram describing all the simulation results.
Results
Previously published data was used to run the simulation. The 95% uncertainty intervals obtained in the test run were $1.88M-$2.17M (Medicare Benefits Schedule values) and $5.93M-$6.86M (Australian Medical Association values).
Conclusion
Australian Emergency Departments who are considering obtaining additional funding to recover compensable billings can use this calculator to strengthen their business case.
| Original language | English |
|---|---|
| Publisher | Zenodo |
| Media of output | Online |
| DOIs | |
| Publication status | Published - 23 Mar 2020 |
Keywords
- Emergency Medicine
- Emergency Services
- Business and Management
- Process Innovation
