Customer Experience and Design

The “Secret Sauce” for Financial Transparency

Perficient High Performance Costing Expressway

Assembling the data needed to achieve financial transparency is both a technical and political challenge. My recent BLOG In Managing Finance at Hospitals, the Proof is in the Data discusses this in detail. I thought I’d take a moment now to discuss some of the software that combines clinical and financial data for cost management to elaborate on the “secret sauce”.

The Perficient High Performance Costing Expressway combines the power of Oracle’s OLAP engine, Essbase, via the Hyperion Profitability & Cost Management (HPCM) application, along with Oracle’s leading healthcare data model to allocate and store data.

Our goal with the Perficient High Performance Costing Expressway is to accelerate the implementation of these solutions by defining the commonly used data element inputs into a standard interface formats that can be easily consumed into the HPCM application. This data will seamlessly flow from Oracle PeopleSoft General Ledger, via the adapters available for the Hyperion platform, or the Oracle Health Care Data Model within the data warehouse, if employed, since both the source and target data mappings can be predefined. For data sources that are not sourced from either location, Perficient will work with the client to connect the source data needed into the standard interface format. The diagram below provides a high level view of the overall process for consuming data into the model.

Oracle Data Mart

Once the cost pools are built within HPCM, the data is then mapped back to a star schema allowing the cost pools to be spread back to a micro patient/encounter/procedure level. The Perficient High Performance Costing Expressway includes the pre-built design for this star schema which is based on the data that is consumed into HPCM plus other data that our costing experts deem appropriate. These pre-defined mappings can be augmented by Perficient or by the client as user requirements become more robust. Additional Essbase models may also be built by leveraging the star schema.

In addition to these data integrations, the Perficient High Performance Costing Expressway includes a baseline for cost pool definitions which incorporate multiple methodologies for hospitals and physician practices. At a high level, direct costs relate directly to the procedure being carried out – perhaps the drugs used, or a blood product used in an operation. Then there are the costs that are more loosely associated with a procedure, the equipment or treatment room, for example. We need it, but it is used for multiple activities. These are the semi-direct costs along with the patient care staff that are the billed providers. Finally, we have the true overheads, the corporate expenses, insurance, laundry, maintenance, human resources, and utility costs, etc. These are the indirect costs and require the most effort to allocate appropriately.

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The cost pools definitions can be configured to meet client needs initially and on-going. This pre-built mapping really accelerates the design discussion and once the cost pool calculations are setup, they are maintained and new models are built by finance.

P&L by Patient
There are multiple tools that can be used for visualization of the cost data including OBIEE, SmartView, Endeca, Crystal Ball or other 3rd party business intelligence solutions such as Cognos. The High Performance Costing Expressway provides the Essbase and / or relational star schema for both ad hoc and pre-built dashboards using the Oracle Business Intelligence Foundation Suite to be shared with financial and clinical leaders for a common view of margin by patient, encounter, procedure and other slices. This functionality sets the stage for more advanced costing models that will be needed to evaluate service line and value of care analytics.
Perficient High Performance Costing Expressway

Perficient is an Oracle Platinum Partner with an industry leading healthcare solutions team. Perficient experts will be on hand in booth #1159 at HFMA National Institute 2014 #ANI2014 in Las Vegas and booth #206 at #INTERACT14 in Orlando June 22-25.

Join us to view a demo of our costing solution and hear our BIG IDEAS!

View my recent blogs:

Following the Money Trial: An Approach to Understanding the True Cost of Care

Elevating the Role of Finance within the Hospital

Enterprise Warehouses: The Gift that Keeps on Giving

Balancing clinical effectiveness with profitability

Follow me on twitter @teriemc

About the Author

Terie McClintock is the Oracle Healthcare Practice Director at Perficient, Inc. where she is responsible for providing healthcare subject matter expertise to the Perficient Oracle National Business Unit while also cultivating and managing the partnership with Oracle’s Healthcare Vertical and Horizontal Business Units. Terie has more than 25 years of IT experience. Prior to joining Perficient, Terie contributed over 13 years at M.D. Anderson Cancer Center with the most recent title of Director, Data Management Services. Prior to M.D. Anderson, Terie worked for IBM as a Senior Consultant.

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