How LOGEX helps German hospitals by simplifying the costing-data submission process
The challenge
In Germany, hospital financing is based on a lump sum payment system. To determine the lump sum per inpatient hospital treatment, around 300 hospitals as sampled auditing system submit their cost data every year to the Institute for the Hospital Remuneration System (InEK), which is a governmental institution. In addition to voluntary participation in data delivery, 30 hospitals are also regularly obliged to participate in the calculation in a lottery procedure. For most selected hospitals, this means a high effort in calculating all incurred costs at the patient level. Most of the participating hospitals have virtually no experience or expertise to do this according to a uniform methodology that has been outlined by InEK and end up spending enormous amounts of resources on the process or with low-quality data applications that are very often rejected by InEK.
The solution
LOGEX has developed a dedicated service to help hospitals with their InEK costing calculation.
The official procedure is divided into different intervals. The phase of costing implementation is the most demanding one for hospitals. This phase takes place every year between February and May. Our C-KTR solution is specifically designed for the InEK procedure. It automates numerous actions that are required for a successful application. Besides the technical support provided by the C-KTR solution, our customers can also rely on the expert support of our experienced consultants. The rejection rate by the InEK of the hospitals we support is in the per mille range, while a rate of up to 15% is normal. This clearly shows our position and expertise as the market leader in cost unit accounting.
The advantages
- Simplest implementation through optimised workflow
- Clarifying the data structure
- Automated reclassification and ILV cost allocations
- Saving time and eliminating calculation and interpretation errors
- Standardised methods for (delimited) service and direct and indirect cost allocations (ILV, apportionments)
- Expert consultants to help take away any complexities and data insecurities
- Support in the InEK error procedure by experts
Financial Control
Our Financial Control suite enables you to gain mastery over patient volumes, resources and finances for the entire organisation, leading to better financial performance—with the numbers to prove it.
We cover the full spectrum of financial and operational processes, from costing and budgeting to forecasting and contracting.
Our activity-based costing model empowers you to:
Simplify cost calculations
Make cost calculations for healthcare providers that are easy to understand, apply, and optimise.
Optimise resource allocation
Allocate resources and costs to patients, care activities and episodes.
Improve through benchmarking
Benchmark unit costs with national and international peers to identify areas for improvement.
Meet regulatory standards
Deliver information to national regulators automatically and in full compliance with National Cost Collection requirements.
Our activity-based budgeting model makes it possible to:
Build and benchmark budgets
Seamlessly link volumes, resources and finances in one budget.
Anticipate and respond to future demand
Match the deployment of resources and manpower to the future demand for care.
Zero in on areas for improvement
Determine how portfolio choices impact operations, and spot areas for improvement.
Involve physicians and managers in budgeting
Bottom-up budgeting functionality facilitates collaboration with non-financial stakeholders.
Our forecasting model enables you to:
Forecast and monitor volume, revenue and cost
Stay on top of expected vs. realised volumes, revenues and costs on a near real-time basis.
Analyse and factor risk into payer contracts
Automate value-at-risk calculations for all contractual agreements with commissioners.
Leverage machine learning algorithms
Build and maintain reliable, easy-to-access forecasts based on machine learning algorithms.
Produce timely, compliant reports with ease
Deliver periodic financial results that are fully compliant with national regulations.
The impact
- Hassle-free InEK application, getting it right the first time
- Undisputed remuneration by the InEK
- Impact on the quality and appropriateness of service financing in the German hospital system
- Creation of data transparency as a control instrument in hospital management
- Internal cost transparency and benchmarking capability at the case, DRG group, department and hospital level are achieved
- Identification of economic weaknesses and recognition of strategic fields of action