(This is a sample text portion only.  Graphic Analysis is sent separately monthly via email as well)

Monthly Analysis: December (for November 2002 Data)

By Allan P. DeKaye, MBA, FHFMA
President and CEO
DEKAYE Consulting, Inc.

We want to wish all of our subscribers a Happy New Year. Although this is the December 2002 report, the analysis reflects November 2002 performance. It will be very interesting to see how calendar year end performance will rank, given the generally lower scores this month.

The December 2002 National PFS Power Rankings showed a drop-off, as November appears to have been a difficult month for many hospitals in most of the reporting regions. Interestingly, there are some similar patterns across regions and bed size that will be discussed in the analysis that follows. However, the South Central region began reporting this month, and scored quite well, which is also reflected in the bed size rankings, as well.

The Monthly National Average (MNA) dropped from 18.7 to 17.2, just about reversing the gain made from October to November. At the same time, the Historical National Average (HNA) dropped less precipitously going from 17.8 to 17.6. The HNA will be less susceptible to the large swings, particularly as more hospitals report data, and as the time line extends. However, the HNA should be a better indicator of long-term trends (See Graph 1).

Regional and Bed Size rankings also showed declines in all areas except the South Central and the 651+ bed size categories. These will be interesting categories to watch for the next reporting period. Earlier this year, the Southeast region scored a 29.0 (also in the 651+ bed size category), and the following month had a large scoring drop. [Note: No hospital has yet scored a perfect "30" in any month so far.]

The Northeast region saw its monthly ranking average drop from 19.6 to 16.0, and the North Central went from 20.7 to 16.7, showing almost a mirror image from the previous period. In the 0-250 bed size category, the monthly average went from 20.0 to 16.5, and a similar drop from 20.0 to 16.0 was noted in the 251-650 bed size category (See Graph 2). The Southeast region did not report this period.

This section takes a closer look at the responses to the 14 YES or NO survey questions. Graph 3 should be referenced. The full text of the questions is also shown in the spreadsheet file that is attached.

Remarkably, there was no change in the average for the Questions 1, 2, 3, 4, and 7. These five questions (mostly in the "Strength" category), whose maximum points equal 15, or half-way to a perfect score, accounted for only 9.1 points. Otherwise in Questions 5, 6 and 8 (re: meeting cash collection goals in Medicare, Medicaid and Self-Pay/Other), the national averages all declined, leaving, the Commercial/HMO (Question 7) with a no change–showing weakness in the "Quality" category.

In the Cash Collections (Question 9) and A/R Reduction (Question 10) "Consistency" category there was an off-setting increase/decrease. A similar offset was also noted in the "Production" category for Questions 11 and 12 regarding inpatient and outpatient open account reductions. Finally, there was another off-set in the "Detractors" category, as the loss in uncoded Medical Records (Question 13) was countered by more timely filings (Question 14). November 2002 did not look like a very good month overall.

If the South Central region (25.0) and 651+ bed size category (25.0) is isolated, then the Northeast and North Central regions, and the 0-250 and 251-650 bed size categories are almost indistinguishable regarding their monthly ranking averages.

With next month’s data representing "calendar year end," it will be interesting to see at what level the MNA and HNA will end at, and what improvements in the "questions" will be seen.

Hospitals are encouraged to review their individual profiles against this trend data. We encourage hospitals to enter comments onto the PFS Power Rankings Bulletin Board. This information will provide for a more detailed exchange of information about PFS management operations.

You can begin submitting your January 2003 Power Ranking information (for A/R data in December 2002) anytime from now until January 31, 2003, (up to12 Midnight, Eastern Time). But remember, don’t delay. And don’t forget, you do score more points the earlier in the month you submit your data! While some new subscribers missed the submission deadline, there were some hospitals who simply didn’t report data. We encourage all subscribers to submit their data, and make entries onto the Bulletin Board.

Please let us know if you have any questions. Thank you for being a part of PFS Power Rankings.