A Study to Compare the Cost of Continuing to Offer Inpatient Services at DeWitt Army Community Hospital Versus Paying Civilian Providers for Inpatient Services at the Prevailing CHAMPUS Reimbursement Rates.
Abstract
This Graduate Management Project compares the cost of continuing to offer inpatient services at DeWitt Army Community Hospital (DACH) versus paying civilian providers for providing these services at the prevailing CHAMPUS rate (a "make" or "buy" decision). A review of the costs to "make" and "buy" inpatient services at DACH is done using the same method as CAPT. Lane T. Rogers (1994), with slight modifications adopted by CPT. Michael D. Crandell (1996). Efforts to contract externally for inpatient services reimbursed at a discounted rate lower than the CHAMPUS prevailing rate have proven largely unsuccessful. The goal of this study is to advise the DACH Governing Board on the financial implications of continuing to provide inpatient services in-house vice paying for local providers at the prevailing CHAMPUS rate. Fiscal year 1996 (FY96) inpatient data are used for the conduct of this study. The results of this study show that inpatient services should remain at DACH. Even with the possibility of negotiating a discounted inpatient service contract with local civilian providers, DACH clearly provides inpatient services at a significantly lower cost.
Document Details
- Document Type
- Technical Report
- Publication Date
- Oct 01, 1997
- Accession Number
- ADA372057
Entities
People
- John R. Stewart