Additional collectable revenue projection based on the reduction of average emergency department length-of-stay
Additional (annual) collectable revenue =
(Average % non-admitted patients x Average ED fee +
Average % admitted patients x Average inpatient fee)
x annual ED patient volume x ED LoS improvement rate
The additional collected revenue projection is calculated in this tool by multiplying the hospital's annual ED volume with the average ED patient revenue with the projected ED length of stay performance improvement results obtained from 31 non-teaching hospitals which have completed a performance improvement project with improvements measured in the last 6 weeks of the project.
The overall Emergency Department length of stay can be calculated as the sum of the percent of patients who are discharged multiplied with the average time these patients spent in the emergency department, and the percent of patients who are admitted multiplied with the average time patients spent in the emergency department before they were admitted to the hospital as an inpatient.
Annual ED volume is based on the median patient volume from a CMS reported ED volume or volume category for the hospital or based on the ED volume provided by the user of the calculator. In case the CMS volume category is used, the calculation is based on the following median value: Low (0 - 19,999 patients annually), with a median value of 10000; Medium (20,000 - 39,999 patients annually), with a median value of 30000; High (40,000 - 59,999 patients annually), with a median volume of 50000 or Very High (60,000+ patients annually), were a value of 70000 patients is used.
Average ED patient revenue is calculated as the average inpatient revenue multiplied with the inpatient ratio, plus the average ED patient revenue multiplied with the ED patient ratio. The ratio between inpatient and ED patients is based on national average from the Center of Disease Control or provided by the user of this tool.
The average inpatient revenue and average outpatient revenue results were obtained from 19 hospitals (both rural and urban facilities) which completed an ED performance assessment project between 2016 and 2018, or the calculator used the values provided by the user of the tool.
Additional collected revenue may be derived in whole or part from shortened wait times, work flow improvements, decrease in patients who leave without being seen, among other factors. Projection is based on the reported collectable revenues for admitted and discharged emergency room patients (excluding OB and surgical admissions). A weighted average is applied based on the individual’s admission and discharged percentages. A reduction in ED length of stay can result in capacity to see additional ED volumes.
Philips does not make any determination as to what extent there is a demand for increased emergency department volume. Results are not predictive of results in other cases. Results may vary.