Affinity uses a unique technique to develop detailed, accurate procedure level costs. Rather than focus the standard setting process at the procedure level, we define an intermediate step, department service units.
Service units represent department level outputs (days of care, acuity levels, tests, dollars of supplies, etc.) that combine in various ways to produce the continuum of patient procedures. This reduces the standard setting burden and, using up to nine service units per department, ensures detailed, highly accurate standards.
Standards for each service unit can be engineered, ratio of cost to charges, historical or budgeted, and can be detailed to whatever level is appropriate. Direct expenses of each department are analyzed for fixed and variable components.