ED Calculator Tool Help

ED Calculator Tool
c/o CEP America
2100 Powell Street, Suite 920
Emeryville, CA 94608
Phone: 800-476-1504
www.cep.com
email questions to info@cep.com

• The model starts at a zero base point, using the “Hospital Data” selectors.
• This tool is used to show the relationship between improvements in certain operational metrics of emergency department performance and hospital revenue. It is an analytical tool to approximate the return on implementation of certain operational improvement initiatives,  using your hospital’s own data for admissions, patient volume, inpatient (IP) and outpatient (OP) average collections per patient, etc.
• “Decrease in Left Without Being Seen (LWBS)” represents volume gains from reduced elopements.  Conservatively, since we assume these are ambulatory patients, we only increase the OP Revenue. Furthermore, we expect these ambulatory patients to be less acute than the average OP, and so we discount their revenue by 1/3rd of the average OP revenue per patient.
• “Increase Volume” represents the larger revenue gains resulting from new patients responding to “word of mouth” about shorter wait times and the higher patient satisfaction which results in a more efficient emergency department. “Increase Volume” represents new patients, and is in addition to the gains from “Decrease LWBS”.  These volume gains drive hospital IP revenue based on the admit rate.
• Decreased Hours on Diversion or “Decreased Diverts” represents gains derived from fewer hours on diversion each month.  The hospital’s number of ambulances per day is set, and then “Decr. Diverts” (in hours per month) is adjusted.
• Start on the Hospital Data side and use the mouse to place the cursor over the slider or the dials you wish to adjust, click and hold down the left button on the mouse and drag the dial or slider in the direction you choose, to reflect the estimated inpatient/outpatient revenue per patient, annual patient volume in the ED, and the Inpatient Average Length of Stay (ALOS).
• Next adjust the dials on the ED Performance side one at a time to see the relationship between improved operational performances in a specific category, such as LWBS (see above how this is defined). You can adjust one or all of the dials for doing multiple “what if scenarios” of operational performance. The Revenue Gains to Hospital reflects the additional revenue projected to be collected by the hospital based on the operational improvements made by your emergency department, based on the assumptions you choose to make.  
• This tool can serve to determine the indication for further financial analysis to prioritize future investment in physical plant improvements, and additional resources to optimize the physician and nurse leadership, medical provider and nurse staffing, as well as ancillary services needed to achieve the desired results. CEP America has used a program called Rapid Medical Evaluation in many of the emergency departments to help achieve substantial improvements in overall LWBS and to decrease Diversion Hours in its client hospitals.