Concept: Hospital Costing in the 1990's

Concept Description

Last Updated: 2002-01-22



RDRG and CMG Case Mix Systems

Details of Costing Methods Used in MCHP Deliverables in the 1990's

1 - Case-Mix Costing Using RDRGs

2 - Pie Project

3 - Funding Methodology

4 - Cost List

Source of Global Budgets

  1. The case-mix costing reports (1991/92 and 1993/94), the Pie project, and the cost list report all used as their primary source of financial data the HS-1 forms. This information was supplemented with data from various other sources, including:

    • Hospital Statistics Part 1 (HS-1): All hospitals annually file HS-1 forms with Statistics Canada. The HS-1 consists of hospital costs and statistics in an aggregate form.
    • Financial Information Systems (FIS): used to provide audited and inventory-adjusted cost data for drugs and medical and surgical supplies for the rural hospitals.
    • Laboratory and Imaging Services (LIS) - provides diagnostic services for many rural hospitals.
    • Community Therapy Services (CTS) and South Central Therapy Services (SCTS) - occupational therapy and physiotherapy provided by outside agencies.

      NOTE: Some costs were excluded, such as medical reimbursements, interns' and residents' salaries, capital costs and depreciation, and costs not directly related to patient care, such as education and research programs.

  2. The Funding Methodology report used as its global budget the expected service pool costs as provided by Manitoba Health. Exact costs were not necessary since this paper is a methodological paper and not a cost paper.

  3. A future source of costing data will come from the Management Information System (MIS) data work that is currently underway at MCHP. This will probably be available as a longer term (more stable) alternative sometime in 1999.

Table Summarizing the Similarities/Differences in the Approaches

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