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 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. 

chevron_right Show key features

• Costing
• Budgeting
• Forecasting
• Appropriate care

Our activity-based costing model empowers you to:

Calculate, apply, and optimise

Make cost calculations for healthcare providers that are easy to understand, apply, and optimise.

Maximise the flow of resources

Allocate resources and costs to patients, care activities and episodes.

Benchmark and improve

Benchmark unit costs with national and international peers to identify areas for improvement.

Deliver, regulate and meet 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.

Bring down costs by providing the right treatments, at the right time. We help you take the first step, starting with a critical assessment of treatment options and care processes.

Reduce variation among physicians and providers

Identify unwarranted variation in treatment decisions and care processes.

Deep-dive into data adjusted for meaningful differences

Compare disease-specific peer group selections adjusted for case-mix, patient characteristics and complexity scores.

Elevate commissioner contracts from volume- to value-based

Establish objective indicators to qualify for innovative value driven contracts with commissioners.

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Benefits

Overall ease of use
Simple navigation with a full audit trail integrated analytics and benchmarking. No need for internal SQL skills. Costing practitioners and Trust colleagues can focus on engagement and identifying performance improvement opportunities

Hosting

• Fully hosted and secure
• No need to rely on internal IT infrastructure and resources or invest in expensive infrastructure

Engagement

• Integrated analytics so less reliance on Trust-wide BI infrastructure
• Unlimited use
• Full access control
• “Live” system enables use in meetings

Pricing

• Fully inclusive annual subscription with no hidden extras
• All Technical Consulting support included
• Unlimited use included
• Analytics included

Speed

• Fast set up and model build
• Make changes live and use for discussion in meetings

NHSI submission requirements

• Easy visualisation of how your costs relate to NHSI categories
• Automated submission outputs

Implementation

Fast turnaround with limited input required from the Trust team

More value from Costing data

• Use costing data and methodology for budgeting, forecasting, and costing care pathways
• Fully integrated financial management control platform

System working and benchmarking

• Easily configured to support group working
• Integrated benchmarking to identify performance improvement opportunities

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