The Health Matrix DRGS

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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 DRGs
  (Diagnostic Related Groups)

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DRGs

• Classifies a diagnosis into one payment group
• A limit is placed on the cost of care
• If the cost of care is gt than the set amount, the
  agency must accept the loss
• If the cost of care is lt than the set amount, the
  agency makes a profit

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Because of this..

• Hospitals track workers hours based on payments
  received
• So..
• We are going to look at DRGs, 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?

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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)

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Lets 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

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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

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Assessment

• Put your name at the top
• Complete
• Discuss