Cost Based Decision Making Flashcards
Equal Share
Total Costs divided by the number of participating health jurisdictions.
Per Capita Sharing
Total Costs divided by the proportion of the population that resides in each partner jurisdiction.
a. ) Often the most transparent.
b. ) Not the most useful when population size is not the best cost driver.
Cost Plus Fixed Fee
Per capita sharing plus a fixed payment to one jurisdiction to cover potential cost increases.
- useful for step-fixed cost, so they have non-weighted cost sharing plus some fixed periodic fee.
Ability to Pay
Total costs divided by each partner jurisdiction’s relative wealth.
Ability to Generate Revenue
Total costs divided by each partner jurisdiction’s relative ability to generate revenue.
Prevalence
Total costs divided by each partner jurisdiction’s relative prevalence of some observable (public health) problem.
- This method adds substantial complexity because cost sharing is now based on data from a series of measurements not directly related to costs.
Weighted Formula
total costs shared according to a formula that combines several strategies.
- Addresses some of the key problems with the per capita sharing approach.
Fee for Service
Total costs are divided by units of a service delivered.
