Direct Patient Related Expenses PD - Multi-Pedia

Patient-Related Costs per Patient Day = Total Patient Related Costs / Patient Days for the period

This is one of the three major categories of cost in Hospice.

Patient-Related Costs – Costs such as Medications, Medical Supplies, Therapies, DME, etc. Sometimes they are referred to as Ancillary Costs. Other Patient-Related costs are: Ambulance, Bio-Hazardous Waste, Clinical Mobile Phones, Clinical Pagers, Lab, Outpatient, Mileage, etc.

Many people equate high cost with high quality. This is flawed thinking. Just because you spend $25 a patient day on medications does NOT mean that patients are getting better care. It simply means that your Hospice is wasting money. The SAME outcome could be achieved at two-thirds LESS cost. The same lesson applies to Direct Labor as well as to other Patient-Related costs.

While MVI typically encourages the use of Percentages of Net Patient Revenue (NPR %) rather than Patient-Day costs for Hospice financial measurement, Patient-Day amounts do work well for Patient-Related Costs where there is no salary/wage component involved.

For more detail on what Percentages of Net Patient Revenue is, and why/how a Hospice would use it rather than Patient-Day costs, click here.

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