Diagnosis-Related Groups 'Break-Even Analysis'
Break-even Analysis
Grace L. Harden
University of Phoenix
January 30, 2011
Break-even Analysis Getwell Clinic on Beach Street concentrates care and treatment of three different types of patients listed as DRG-M, DRG-J, and DRG-P. Dr. Barkley is the new director of the satellite office and has requested that statistical break-even points be completed for each DRG. He would also like information on which DRG is the most profitable to promote in the growing practice. Diagnosis-Related Groups (DRG) is a classification process in which health care organizations can separate patients into like categories even though patients have such broad differences. These classifications could be demographics, treatment, age, or diagnostic groupings. This helps determine the resources …show more content…
|J |30% |2600 |780 |
|P |20% |900 |180 |
| | | | |
| | | |Total 1810|
|DRG |Proportion |Price |Weighted Variable Cost |
|M |50% |1000 |500 |
|J |30% |1200 |360 |
|P |20% |600 |120 |
| | | |
Grace L. Harden
University of Phoenix
January 30, 2011
Break-even Analysis Getwell Clinic on Beach Street concentrates care and treatment of three different types of patients listed as DRG-M, DRG-J, and DRG-P. Dr. Barkley is the new director of the satellite office and has requested that statistical break-even points be completed for each DRG. He would also like information on which DRG is the most profitable to promote in the growing practice. Diagnosis-Related Groups (DRG) is a classification process in which health care organizations can separate patients into like categories even though patients have such broad differences. These classifications could be demographics, treatment, age, or diagnostic groupings. This helps determine the resources …show more content…
|J |30% |2600 |780 |
|P |20% |900 |180 |
| | | | |
| | | |Total 1810|
|DRG |Proportion |Price |Weighted Variable Cost |
|M |50% |1000 |500 |
|J |30% |1200 |360 |
|P |20% |600 |120 |
| | | |