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Section C - Supplementary Information Calculation of WIES7 (Part A)(Part B) The WIES7 tables and specification have been simplified to assist anyone wishing to calculate WIES7. There is a new WIES weights "lookup" table so that users may add the components without having to work out or apply complex formulae. Total, Fixed and Variable Weights For WIES7, separate weights are provided for calculating total, fixed and variable WIES. Modelled budgets are based upon total WIES, but hospitals are paid according to fixed WIES (based upon agreed targets) and variable WIES (based upon actual throughput in 1999/2000). Weights are calculated so that for networks and major providers Modelled total funds = Modelled Variable funds + Modelled fixed funds For most VIC-DRG3s total, fixed and variable weights are equal but for some high cost VIC-DRG3s a greater proportion of funding is based upon actual throughput (ie on variable WIES). For these VIC-DRG3s total weights, fixed weights and variable weights differ. In the computer files containing the weights tables for calculating WIES7 there are separate variables (columns) for total, fixed and variable weights. The type of weight is indicated by the last letter on the column label (t for total; v for variable; f for fixed). For example:
For ease of presentation, the weights table printed in this report gives total, fixed and variable weights as separate rows for each VIC-DRG3 (labeled 'Tot.', 'Fix.', or 'Var.'). Where all three sets of weights are equal they are presented as a single row (labeled 'All'). BoundariesLow Outliers, Inliers and High Outliers Payment for VIC-DRG3s are primarily based on length of stay. In most cases (there are exceptions) the average length of stay is divided by three to get the low boundary point and multiplied by three to get the high boundary point. Cases within this range are called inliers, cases below the low boundary point are called low outliers and cases beyond the high boundary point are called high outliers. For example, if the average length of stay was 6 days, the inlier range would be from 2 days to 18 days. Cases less than 2 days would be low outliers and those greater than 18 days high outliers. Weights The weights are based on costs derived from the Victorian Cost Weights Study. A series of modifications are made to adjust for technical difficulties in the costing process and to ensure WIES equivalence over time. This is outlined in Chapter 12. Definition of Variables Definitions and descriptions of each variable within the WIES weights "lookup" table are given below.
D:
funded for each day provided at least six hours of ventilation
is provided. Patients attract a daily rate of 0.7729 WIES E:
patients with a reported ICD-10-AM procedure code of 13382-02
are funded an additional 3.1323 WIES 4:
funded for each day of mechanical ventilation after 4 days.
Patients attract a daily rate of 0.7729 WIES. I:
ineligible for mechanical ventilation co-payments
Thal.:
a co-payment of 0.2648 WIES is made to patients with a reported
ICD-10-AM thalessaemia diagnosis code of D56.x or D57.2 (Note:
These do not have to be principal diagnoses) Redo
: a co-payment of 0.9108 WIES is made to patients with an ICD-10-AM
procedure code for hip revision (49324-00).
where x
= t,v or f
Designated
Same day VIC-DRG3s Non-Same
Day VIC-DRG3s with a low boundary of zero days Non-Same
Day VIC-DRG3s with a low boundary of 1 day Non-Same
Day VIC-DRG3s with a low boundary of 2 days or more (low outliers) where x
= t,v or f
Designated
Same day VIC-DRG3s The
one day weight is based on the costs of all inliers excluding
same day patients. If the patient is an inlier they attract the
full multiday inlier weight. If the patient is a low outlier they
attract the low outlier per diem weight. Designated
One day VIC-DRG3s The
one day weight is based on the costs of patients with a length
of stay of one day. Non-Same/One
Day VIC-DRG3s with a low boundary of 1 day or less The
one day weight is set at the multiday inlier weight. Non-Same/One
Day VIC-DRG3s with a low boundary of 2 day or more (low outliers) The
one day weight is set at the low outlier per diem weight.
where x
= t,v or f
Not
all VIC-DRG3s have low outliers. No weight is reported in these
cases. For
most VIC-DRG3s the weight is derived as: md_in
divided by lb The
WIES value is calculated by multiplying the low outlier multiday
per diem weight by the patients length of stay.
where x
= t,v or f
For
designated VIC-DRG3s, same day/one day patients are excluded when
deriving the inlier multiday weight.
where x
= t,v or f
In
general this is derived from: high
factor ´ In_md_x divided by estimated alos where
the high factor is set at 0.7 for surgical VIC-DRG3s and 0.8 for
medical VIC-DRG3s to recognise that the days at the end of a patients
stay are less resource intensive than days at the beginning of
a patients stay. A
number of variations exist on the general formula:- 1)
The high factor is set at one or greater for some high cost VIC-DRG3s
(Chaper 12). 2)
Theatre and prostheses costs are excluded from the calculation
of the weight for some VIC-DRG3s with high costs in these areas
(Chapter 12). 3)
Maximum and minimum criteria apply (Chapter 12).
Calculating WIES7 - Part B |