Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
<OWN LOGO HERE> Medical Imaging District Services (MIDS) Transfer Pricing In this LHD, facilities have previously / never trialled a business model utilising a transfer price to cross-charge referrers for medical imaging services. To achieve the necessary financial and clinical balance and sustainability MIDS need to build their capacity to provide diagnostic, interventional and therapeutic services for multiple referrers at any hour or day, for routine and emergency patients. Though no actual budget is allocated to Radiology and Nuclear Medicine by the facility, MIDS has an indicative ‘operating budget’ or costs to be recovered. Total costs vary across facilities depending on costs ‘allocated’ to MI departments. Private revenues (Medicare) are deducted from total costs leaving Net Cost of Service (NCOS). The ability to generate private revenue varies across facilities so the percentage of remaining costs varies. These are then recovered using a ‘transfer price’ to cross-charge referring departments for examinations requested. Therefore the transfer price is a function of all MIDS operating costs (including those charged to MIDS by the facility) and the amount of private revenue earned. The transfer price includes components for: Staffing (may be 24/7) Consumables Date issued: <date> page: 1 Equipment replacement (capital or lease) and maintenance for better patient care and revenue maximisation → transfer price minimisation Radiologists’ attendance at MDT and other meetings Consultations Teaching Research Q&A activities Transfer pricing allows referring departments to manage their activity and dollar budgets and ensure appropriate referrals. To keep it simple, the transfer price is based on a percentage of MBS. Although the percentage of MBS charged may be higher than the actual rebate, or bulk billing at a private practice, public hospital departments undertake a wide variety of examinations for a high percentage of unwell, non-ambulatory patients, including time consuming high cost interventional and therapeutic services. In addition, these services are often undertaken after hours. Referrers are therefore encouraged to continue referring low cost high volume examinations such as x-ray through the MIDS. More information In the meantime, if you have any concerns or questions please send an email initially to the contact people below. XXX: [email protected] YYY: [email protected]