Budgeting

Question 1

Capital Equipment Letter of Justification Includes

Answer 1

Compatibillity w/ existing equipment; where stored, used
Projected pt. use; does it enhance pt. care b/c of safety
How will it make you remain competitive
Cost comparison & Availability
Durability (maintenance needs)

Question 2

Departmental Expenses : Wage & Salaries

Answer 2

Full/part time, per diem persons.

Consider lost time to lunch, vacations tc.

Question 3

Departmental Expenses: Contract

Answer 3

Hired individuals not on regular pay role

Individual may be providing some support to keep up on HR needs

Question 4

Departmental Expenses: Benefits

Answer 4

Insurance vacation time, workers comp, etc

Question 5

Departmental Expenses : Equipment

Answer 5

items that are more permanent nature (peg board, splint pan)

Question 6

Departmental Expenses : Supplies

Answer 6

Items that are disposable or useable items (theraband, thermoplast)

Question 7

Departmental Expenses: Rentals

Answer 7

Generally bigger equipment items (biodex, copier)

Question 8

Departmental Expenses: Purchased Services

Answer 8

Usually professional hiring from an agency

Contract company : does it all including HR function

Question 9

Departmental Expenses : Maintenance

Answer 9

On equipment ultrasound, calibration

Question 10

Departmental Expenses : Misc.

Answer 10

Linens
Continuing Education
Travel
Dues & Subscriptions

Question 11

OT Department Revenue

Answer 11

Pt. visits (charges)
Contracts to provide service (send your people out to other center)
Sales (walkers, splints, adaptive equipment)
Tuition (if you provide a continuing ed. to your facility)

Question 12

Pt. visits FFS : What impacts revenue

Answer 12

Census (how many pts. are coming to out pt. or are in hosp/rehab)
Payor Mix (types of insurance pts. have)
CMS established fees for given revenue codes (CPT codes)

Question 13

Establishing fee schedule (medicare establishes so this is for non-medicare insurance) consider:

Answer 13

Time to complete (should it be a timed or untimed service)
Level of complexity/skill, education needed
Amount of direct supervision of the pt.
Supply expenses (what equipment durable or usable do you need to use)
Reimbursement potential
Frequency of service (is it a high volume service?) pay attention to high volume services to assure maximizing reimbursement potential