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Casemix in South East Health  

Casemix information is used as a tool in both financial and clinical management of health services.  The Australian Refined Diagnosis Related Groups (AR-DRG) is the Casemix classification currently in use for acute inpatients. As further patient classification systems are developed and information systems are improved Casemix will continue to be used to help provide more effective and efficient health care across the spectrum of health settings.

At present South East Health has various systems in place to provide Casemix information for use in management.  There is an integrated network that allows information to flow from the Area to the hospitals and vice versa.  The Area uses Casemix information to assist in budget allocation and utilises Casemix information in clinical management and planning.

 

Use of Casemix in Reporting

Acute Casemix Reporting

Casemix reporting and costing has been undertaken in the Area for some time using the AR-DRG classification.  Examples of Casemix based activities include:

        Costing of acute inpatients by AR-DRG using both cost modelling and clinical costing approaches

        Cost comparison reports by AR-DRG, using state peer group averages and benchmarks

        Activity and cost by AR-DRG and Service Related Group which is used in planning and / or monitoring service delivery and streamlining existing services

        Monitoring of inflows and outflows to enable cross-Area purchasing arrangements

        Development of clinical pathways in all major acute teaching hospitals to aid in clinical management and quality monitoring

        Monitoring of service use by Veterans for payment purposes

Focusing on acute inpatients does not provide the Area or hospitals with all of the information necessary to manage and cost hospital activity.  In addition to acute inpatients there are other patient types for which there are no classification systems and for which little or no patient data is collected or reported.

Sub-Acute and Non-Acute Casemix Reporting

With the growing demand for Casemix information and more importantly the introduction of Casemix funding to replace traditional funding methods, the need for a system in SEH to capture other types of care is great.  The Australian National Sub-Acute and Non Acute Patient Classification (AN-SNAP) is such a classification system and is designed specifically to capture Sub and Non-Acute care provided in both inpatient and ambulatory settings.  It is intended to be useful for both funding and clinical management purposes across the Area.

AN-SNAP is based on five case types: Rehabilitation, Palliative Care, Psychogeriatric, Geriatric Evaluation and Management and Maintenance Care.  In 1997 a national study was undertaken of these types of care and as a result, the AN-SNAP classification system was developed.  In accordance with the views of various state committees, NSW resolved that AN-SNAP be progressively implemented over a four year period. Phase One began on 1 July 1998.  Within the Area four facilities participated in the voluntary phase, collecting AN-SNAP data relating to designated inpatient settings.

Phase Two of the implementation began on 1 July 1999. Collection then became compulsory for all designated inpatient settings.  It is envisaged that the scope of the collection will increase over the coming two years until 1 July 2001, at which time all AN-SNAP settings regardless of inpatient, ambulatory or community location, will be required to collect AN-SNAP data and submit this to NSW Health for analysis.

Trendstar

To assist in the provision and development of Casemix information the Area implemented TRENDSTAR, an information system that integrates both the clinical and financial feeder systems that exist within the hospital, into one database.  This provides a comprehensive and cohesive Casemix information data base that can be made available to the widest possible platform of users across a wide range of disciplines.  It is a system that is designed to assist with management issues.

The implementation of TRENDSTAR within SEH originated from a decision made by the NSW Information Systems Steering Committee (ISSC) on the 16th December, 1993.  The objectives of acquiring such a system were:

        to provide an effective management tool for the Area and hospitals

        to facilitate the effective allocation of resources from Area to hospitals, enhance the service planning process, and enable accountability of health professionals for the utilisation of health resources

        and to assist with the development of quality improvement programs

In June 1994, the TRENDSTAR Clinical Costing/Decision Support System was selected as the preferred system for NSW Health.

The Area commenced the implementation of TRENDSTAR in September 1995 with a 6 month project at St George Hospital.  TRENDSTAR was then rolled out to the remaining six acute care facilities over the next three years, culminating in an Area wide TRENDSTAR network in June 1998.

Typically, sites have been able to download data from the following systems: Financial, Patient Administration System, Pathology, Radiology, Nursing Dependency and Allied Health.  Recent enhancements to TRENDSTAR also mean that sites are now able to import Casemix data from other local systems such as Nuclear Medicine, Pharmacy and Theatres.  The combination of these data elements provides an unprecedented profile of hospital activity down to the inpatient level.  For clinical and financial managers, understanding the trends and costs of providing services is made possible through analysing a complete profile of the procedures delivered to patients and their costs, and through being able to compare these across given periods of time on a departmental basis.

 

Use of Casemix in funding

At present NSW Health utilises a funding allocation process to Areas based on the population's needs, on recurrent expenditure requirements of new facilities and developments in Commonwealth funding arrangements.  This is known as the Resource Distribution Formula.  The funding provided to Areas is largely provided as a global allocation and decisions about funding of individual institutions are made locally by the Area.

In order to make these allocation decisions more equitable and standard across the state, the NSW Health Council recommended the introduction of episode based funding for acute services from July 2000.  The model calculates funding from Areas to Hospitals and is a prospective payment based model with payment calculated on each hospital’s projected activity and adjusted for case types such as day only patients, transferred patients, long stay outliers and the public / private mix.  Payment is calculated using state hospital peer group benchmark prices.

There is the intention in future years to expand the model to incorporate funding for Emergency Services, Intensive Care, Mental Health and Rehabilitation and Extended Care services.  These services are currently funded on an historical basis.

To further expand on the use of Casemix principles in funding, the Area decided to implement the Contract Payment Advisor (CPA) module of TRENDSTAR.  The four month project commenced in March 1999 and now provides the Area with the ability to simulate funding to individual hospitals using the principles of episode based funding.  CPA provides hospitals with the ability to report actual cost and activity against payment and to model new funding contracts and scenarios.

 

Key Tasks of the Area Casemix Unit

        Managing the NSW Program and Product Data Collection which incorporates the patient costing study and the Unaudited Annual Return.

        Improving performance levels for the coding of hospital records.

        Extensive involvement with the implementation of the NSW Health Information Exchange to ensure changes are well communicated an in line with State, Area and Hospital requirements.

        Participating in the development of an interface from the NSW HIE to Trendstar, ensuring that the relevant patient costing and activity data is readily available.

        Managing the implementation of AN-SNAP across the Area.  

Area Casemix Reports Area Coding Reports
 Responsibility: CSPP
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