Beaufort investigates the individual components of the remuneration rates for long-term care and calculates the so-called ‘treatment-component’
Utrecht, September 2020
For a healthcare-based client (turnover level of appr. €150m), Beaufort did a survey concerning the individual components of the remuneration rates for long-term care drawn up by the Dutch Healthcare Authority (NZa). The client specifically wished to assess the height of the so-called ‘treatment-component’, as a part of the total remuneration rate for a single performance.
Every year, the NZa publishes a policy rule in which the maximum remuneration rates for performances for long-term care are given. Usually, the remuneration rates are divided into 5 different components: VOV (caretakers, nurses, etc.), DB (personnel w.r.t. daily activities), BH (treatment-component), OP (supporting staff) and MK (material costs). For remuneration rates for which these components were not shown, the treatment-component could be calculated by calculating the difference between a performance with the treatment-component and the comparable performance without the treatment-component.
From 2019/2020 onwards (depending on the specific performance), new remuneration rates have come into effect. These rates are based on a sector-wide cost price research which was completed in 2018 and which based its investigation on figures from 2016. The NZa used the cost price research to base its remuneration rates on. In two documents, the NZa explains how the remuneration rates were calculated. In the documents, the split-up between the five different components VOV, DB, BH and MK is quickly lost. Due to the new way of determining the remuneration rates, the height of the treatment-component can no longer be calculated by calculating the difference between a performance with the treatment-component and the comparable performance without the treatment-component. The height of the treatment-component therefore remained unknown.
Our client however wished to know the height of the treatment-component for different performances. We managed to determine the height of the treatment-component by retracing and recalculating the steps performed by the NZa based on their published documents. Our research has shown that - despite the increased needs of the client population - the level of treatment rates had shown a decreasing pattern over the years. During the course of the assignment, Beaufort also identified potential cost savings measures and advised on the internal methodology of revenue and cost allocation
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