Assign the Transaction Cost method

The Transaction Cost method uses the exact acquisition cost for the encounter transaction. Typically used for high-cost drugs and devices, this method applies a unique cost to each encounter. This is true even when multiple encounters use the same cost item.

For example, let's say two patients need a knee replacement, which is an implant. Patient A is a taller individual that needs a different implant type versus Patient B, who is smaller. The implant for Patient A costs the hospital $16,000 while the implant for Patient B costs $8,000. Each patient's bill will include the cost of the implant using the same charge code, however, the implant for Patient A costs significantly more. In transaction costing, the actual $16,000 will show up as the cost of the charge code for Patient A, but for Patient B the cost will be $8,000. The difference is the transaction specific to Patient A and the transaction specific to Patient B.

To assist with assigning many methods to a large number of cost items, similar to RVU and Microcost, you can use the Transaction Cost Method Assignment page to update the cost item method.

To assign the Transaction Cost method:

  1. From the Enterprise Decision Support home page, click Cost Process Guide > Methods and Assumptions > Methods > Transaction Cost Method Assignment in the Cost accounting section.

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  2. From the Select Cost Set dropdown, select the cost set in which to assign the method.

    NOTE: The system defaults to the currently active cost set.

  3. From the YRMO Start Date dropdown, select the starting year and month.
  4. From the YRMO End Date dropdown, select the ending year and month.

  5. From the Select Target Method Version dropdown, select the version number to use for the method definition table.

  6. Click Run Now.

    The system schedules a job to run the import.

TIP: After you run the method assignment, the system displays a separate tab that displays the status of the assignment tasks, including the result, the time the job was started, how long it lasted, and the user that ran the job. For more information, see View Axiom processing status.