The Health Matrix -DRGS

1. The Health Matrix -DRGS

2. We Know…. • Hospitals need to be cost effective • They are usually non-profit & have to watch every penny • One way to control cost is through DRG’s (Diagnostic Related Groups)

3. DRG’s • Classifies a diagnosis into one payment group • A limit is placed on the cost of care • If the cost of care is > than the set amount, the agency must accept the loss • If the cost of care is < than the set amount, the agency makes a profit

4. Because of this….. • Hospitals track workers hours based on payments received So…….. • We aregoing to look at DRG’s, define the math system, and use matrices to determine whether this agency is operating cost effectively. • We will do multiplication in matrix form.

5. Have you ever compared the cost of clothing? • If you work, do you ever wonder why one week you work 12 hours and the next week 32 hours? • Do you know what a matrix is? • Have you ever used one? • Do you know who Keanu Reeves is?

6. Terms • Matrix: A rectangular array of numbers, in rows & columns • Matrices: Plural for Matrix • Rows: Horizontal data (N = # of rows) • Columns: Vertical data (M = # of columns) • Order of a Matrix: Is its size N x M, read as N by M)

7. Let’s look at how to set up a Matrix See Flip Chart & distribute hand outs • In order for two matrices to be multiplied, the # of columns of the 1st matrix must = the # of rows in the 2nd matrix • Because they match they can be multiplied

8. How to determine the size of the answer • See page 2 of flip chart • Look at the number of # of rows in Matrix A & the # of columns in Matrix B • Multiply the two numbers • R x C = answer Matrix, 1 x 1 = one answer • Note appendix B (Note 4 rows X 1 column = 4 answers) • See page 3 of flip chart - Do 1st row together • Continue with examples on flip chart • See appendix B transparency • Complete appendix B with your partner & do group review

9. Assessment • Put your name at the top • Complete • Discuss