A large academic medical center decided during a recent MedCom Comprehensive Pricing Review to incorporate a thorough supply pricing analysis as a component of their overall strategy. This initiative required the acquisition of line item cost data for each of the approximately 22,000 distinct supply items in the chargemaster. A decision-making process followed, involving the financial modeling of seven possible markup scenarios based on revenue code and cost range criteria. MedCom provided detailed gross and net revenue impact modeling at the line item and department level for each possible markup scenario, allowing the medical center to make an informed selection of a defensible standard supply cost markup. An evaluation of line items with large price changes also allowed the facility to research and revise anomalous cost data in their cost accounting system. The final prices for all supplies, based on the newly selected supply cost markup, were implemented at the conclusion of the project. Despite a slight loss of revenue from the standardization of the supply cost markup, the medical center's Comprehensive Pricing Review, which also included an ancillary market pricing study, resulted in a projected annualized net revenue impact of nearly $30 million.

As a component of a Comprehensive Pricing Review, MedCom was recently engaged to evaluate the operating room charging structure at three for-profit facilities owned by the same corporate entity, with the goal of facilitating standardization of operating suite charging structure at the facilities. After receiving detailed encounter data from the operating room suites at each site, MedCom analyzed the current structures at the three facilities and discovered that the time increments used for charge capture were structured and priced in such a way that for many patient encounters, the total gross charges were below competitive benchmark rates and even below reimbursement rates. MedCom proceeded to model several alternative charging scenarios that would properly align the gross charges with total costs, reimbursement rates and competitive price data. The final implemented structure provided the three facilities with a total projected annualized gross revenue impact of $12.5 million.