About the Deductions Model calculator

The Axiom Rolling Forecasting Deductions Model Calculator enables Axiom Rolling Forecasting administrators to forecast reimbursement assumptions using the preferred Net Revenue approach. Configurable options let you include payor-level detail using Inpatient, Outpatient, or Physician displays. Additionally, there are forecasting options for Administrative Adjustments, Bad Debt, and Charity assumptions.

Use the Deductions Model calculator to compute contractuals and allowances for monthly and quarterly rolling forecast periods. This topic provides an overview of the calculator.

This tab compares the 4-quarter history with the 4-quarter forecast of Gross Revenue, Net Revenue, Net % of Gross, and Impact for the entire deductions model, based on your payers. Use the information on this tab to get an idea of what your history is and what assumptions (drivers) are included in your forecast.

The summary has two main sections: Inpatient and Outpatient. Within each section are rows for each payor: Administrative Adjustments, Charity, and Bad Debt. There is no overall total, but rather totals by Inpatient and Outpatient. As shown in the following example, the first column is of each set is historical data, the second is forecast.

Deduction calculations are performed and displayed on this tab. The Deductions tab allows you to split out the total revenue values by payor. If you currently store statistics at the payor level, they will populate for you. The calculator opens to this tab by default.

Key

1 = Information section contains the following:

  • Name of selected plan group

  • Period Ending set in your RF Driver period (note this is not your system current period)

  • RF Deductions Group you selected when opening the calculator

  • Associated driver

  • Scenario you selected when opening the calculator

  • Save option for the calculator

  • Default forecast method for the tab (can be changed for individual payors at the line level)

2 = Save option and Forecast Method drop-downs

3 = Data Selection column with data selection drop-downs for individual lines, and Forecast Method column (this is populated with the default, but you can change it for each payor by block)

4 = Red text indicating attention needed in the row

5 = Calc method for each payor in the block

6 = Forecast method for the payors in the block

7 = Historical quarter columns that bring in actuals from the previous years

8 = Actuals from the current year quarters/months

9 = Forecasted quarters for next year

10 = Input cells (blue) for adding data manually

Use the Deductions Model Configuration utility to configure payor-level data and inpatient and outpatient selections.

Upon opening the Deductions Model calculator, the Refresh Variables dialog prompts you to select the RF deductions group, a scenario (within your security permissions), and optionally the RF Deductions Model option of either Standard or Physician Only. Based on your selections, the Associated Axiom Queries populate the calculator, after which you can begin editing.

When saving your changes, the Deductions Model calculator posts all identified content to two sets of tables:

  • RF_Deductions_yyyy – These tables contain manually-entered data such as Patient Days by payor if not in your organization’s history. These tables also save user elected changes such as drop-down selections or edits to blue cells.

  • RF_Forecast_yyyy – Results of the deduction values are saved to these tables using the DType of “DeductionResult.” This is the reporting code needed to display deduction content to reports like the Consolidated Summary report.

You can also process the calculator on-demand.

See also