# How Are Cmi Adjusted Discharges Calculated

“Adjusted discharge” is the number of discharges multiplied by the ratio of total gross revenue to inpatient gross revenue and multiplied by the case-mix index and the wage index.

How is CMI calculated?

The Case Mix Index (CMI) is the average relative DRG weight of a hospital's inpatient discharges, calculated by summing the Medicare Severity-Diagnosis Related Group (MS-DRG) weight for each discharge and dividing the total by the number of discharges.

How do you calculate case mix adjustment?

To calculate CMI, choose a time period (e.g., one month) to examine. Within that time, take all the DRGs your hospital billed and add up the relative weights (RW). Now, divide that number by the total number of DRGs.

## How is adjusted patient day calculated?

Adjusted patient days represent actual patient days adjusted to include outpatient services by multiplying actual patient days by the sum of gross inpatient revenues and outpatient revenues and dividing the result by gross inpatient revenues.

## What is CMI adjusted length of stay?

We encourage hospitals to use a modified measure as a baseline for efficiency: CMI-adjusted length of stay. It is defined as the ratio of the number of days of hospital care that were utilized to care for patients adjusted for the documented severity of the illnesses.

## What is CMI adjusted discharge?

The CMI, which is defined by the Centers for Medicare & Medicaid Services, is calculated by summing all diagnosis-related group weights for the hospital and dividing by the number of discharges using both transfer-adjusted cases and unadjusted cases.

## How does CMI affect reimbursement?

A higher CMI means more reimbursement dollars for providing care because it indicates that a hospital is treating a sicker patient population. Increasing the CMI hinges on having clinical documentation that accurately reflects the severity level of patients' conditions.

## What does the calculated CMI tell you about a facility?

The CMI of a facility reflects the diversity and clinical complexity of the patients and the associated resources utilized in the care of those patients. The adjusted average cost per patient would reflect the charges reported for the types of cases treated in that year.

## Why would we want to monitor CMI?

CMI is an important performance indicator for your hospital not because it tells a big story in and of itself, but because of how it impacts your hospital's finances. CMI is a measure of the average severity level of a hospital's procedures. While the logic may be debatable, the revenue impact on hospitals is not.

## What is a good CMI score?

The average CMI of all 25 hospitals is 3.48, though CMIs range from 3.02 to 5.26. This is a shift up from the last reporting period, which ranged from 2.75 to 4.88. CMI does not appear to correlate to the number of annual discharges, with discharges from the top 10 hospitals ranging from 5,531 to 87 annually.

## How CMI affects a facility?

Increased CMI results in higher reimbursement and lower adjusted cost per patient per day, which equates to a significant revenue enhancement for hospitals. Not only that, it also positively impacts Observed Over Expected (O/E) ratios for quality scores, including mortality and expected complications.

## What is CMI in long term care?

CMI is a relative value assigned to individual patients in an SNF facility. That value in aggregate, in turn, is used to determine the allocation of resources to care for and/or treat patients in the facility. Essentially, case mix reimbursement was designed to tailor payment amounts to acuity in a facility.

Adjusted admission means the sum of all inpatient admissions divided by the ratio of inpatient revenues to total patient revenues.

## What does the operating revenue per adjusted discharge ratio measure?

Operating Revenue Per Adjusted Discharge measures the amount of operating revenues generated from the organization's patient care line of business patient and Operating Expense Per Adjusted Discharge measures operating expenses incurred from providing its patient care services All of these ratios are part of the

## How do you calculate profit from discharge?

Profit per inpatient discharge

Inpatient revenue (net) less inpatient operating expenses divided by total discharges. Measures the amount of profit (contribution to net income) earned on each inpatient discharge.

## How do you calculate adjusted occupied beds?

Calculate adjusted occupied beds by dividing the total dollar amount of revenue generated by the hospital's patients (this includes the revenue generated by both inpatients and outpatients) by the dollar amount of revenue generated by the hospital's inpatients.

## How do you calculate patient revenue?

• The Formula: Gross Annual Revenue / # of Annual Exams Performed = Revenue/Patient.
• *MBA Example: \$659,736 / 2,156** = \$306. OR.
• The Formula: Gross Annual Revenue / # Total Patient Visits = Revenue/Patient.
• MBA Example: \$659,736 / 2,598*** = \$254.
• ## How is hospital discharge rate calculated?

For instance, if 5 persons were discharged after 10 days in the hospital and 3 were discharged after 7 days in the hospital, the number of discharge days for these patients would be 71 days (5 x 10 = 50, 3 x 7 = 21, 50 + 21 = 71).

## What is a CMI score?

A hospital's CMI represents the average diagnosis-related group (DRG) relative weight for that hospital. It is calculated by summing the DRG weights for all Medicare discharges and dividing by the number of discharges. CMIs are calculated using both transfer-adjusted cases and unadjusted cases.

## What is case mix adjustment?

Abstract. We review case-mix adjustment, which is the process of adjusting for differences in the cases treated in different hospitals so that their costs or outcomes can be compared.

## How does CMI affect Hppd?

Case Mix Index was significantly associated with HPPD (β =0.33, p <. 001); Model 5 explained 57.4 percent of the variance in HPPD. Finally, both unit level CMI (β =−0.29, p <. 01) and inadequate number of assistive personnel (β=0.30, p =.

## What is the case mix index in nursing homes?

Case Mix Index CMI Weight or numeric score assigned to each RUG-III group that reflects the relative resources predicted to provide care to a resident. The higher the case mix weight, the greater the resource requirements for the resident.

## What is the purpose of utilization review?

Utilization review is a method used to match the patient's clinical picture and care interventions to evidence-based criteria such as MCG care guidelines. This criteria helps to guide the utilization review nurse in determining the appropriate care setting for all levels of services across the arc of patient care.

## Is a high CMI good or bad?

If the CMI is high, DRG payments are larger. It indicates a lower average cost per patient. So, in theory, you get more money to spend. The inverse, however, is not good.