Geriatric Care Management Program Cost Analysis Tool

Geriatric Care Management Program Cost Analysis Tool

Calculating the true cost of a geriatric care management program isn't as straightforward as it seems. Many professionals underestimate expenses, overlook hidden costs, and miscalculate potential savings. You might think you have it all figured out, but trust me, most people don’t. They forget about overhead, staffing variations, and the financial implications of poor care management. It's time to stop guessing.

How to Use This Calculator

Forget the basic instructions about entering numbers. What you really need to understand is where to source your data. Start with your operational budget. Look at historical expenses for staffing, equipment, and facility costs. Don’t neglect indirect costs like utilities and administrative support. These are often brushed aside but can drastically alter your calculations. Collect data from your accounting department, and don’t hesitate to dig into the details. Every penny counts.

Variables Explained

You need to know precisely what goes into each variable. Let’s break it down:

• Staffing Costs: Include salaries, benefits, and overtime. Be sure to factor in the varying levels of care required for different patients. This can fluctuate significantly based on patient needs.
• Operational Costs: These aren’t just your average monthly bills. Think about maintenance, supplies, and any technology costs associated with patient management.
• Patient Outcomes: You need to consider the impact of your program on patient health. Improved outcomes can lead to reduced hospitalizations, which directly affects costs. You’ll need solid data from previous patient records.
• Overhead: This is the sneaky part. Many forget to include general operating expenses and administrative costs when calculating ROI. Always account for indirect expenses.

Case Study

For example, a client in Texas came to me baffled by their program’s financials. They were convinced they were saving money, but their calculations didn’t add up. After digging into their data, we uncovered they hadn’t included the costs of additional training for staff or the increased administrative workload. Once we adjusted for these variables, it became evident that their program was actually operating at a loss. They made the necessary changes and turned things around, but only after addressing these overlooked factors.

The Math

Let’s simplify this for you. The formula you need is straightforward but requires accurate inputs:

Total Costs = Staffing Costs + Operational Costs + Overhead

ROI = (Savings from Improved Outcomes - Total Costs) / Total Costs

Make sure you’re using realistic estimates for each input. If you lowball your staffing costs, for instance, your ROI will paint a misleading picture.

💡 Industry Pro Tip

One thing only seasoned professionals know: Always factor in the long-term savings from preventive care. Patients who receive regular management are less likely to end up in emergency rooms, which can lead to substantial cost savings over time. This isn’t just about accounting for the present; it’s about projecting future costs and savings as well.

FAQ

• What if I don’t have all the data? Gather what you can. Use industry benchmarks if necessary, but be cautious about relying too heavily on averages. Every program is unique.
• How often should I run this analysis? Regularly. At least annually, but quarterly reviews could yield more timely insights. Don’t let your program drift financially.
• Can I use this for different types of care programs? Yes, but adjust the inputs based on the specific type of care. Each program will have different variables that will impact costs and savings.
• What if my ROI is negative? Dig deeper. A negative ROI isn’t the end, but it does require action. Reassess your expenditures and seek areas for improvement.