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. 1982 Dec;4(2):47–66.

Table 3. Methodologies Employed to Address Volume Changes.

Program Fixed/Variable Ratio Other Provisions
Arizona None Program does not specifically address volume changes
Connecticut 50/50 (as of FY 1979) Adjustment made to adjusted budget base None
Maryland Generally, 40/60 for routine centers and 60/40 for ancillary services. Adjustment mechanism is complicated and depends on actual percent change the change In revenues and adjusted admissions, and whether the adjustment applies to retrospective or prospective volume changes. Adjustments are computed for hospital overall but are applied departmentally. Intensity increases are addressed via a separate system (Table 4)
Massachusetts Medicaid None No analysis of volume changes
 Charge-control 60/40; 40% of base year costs allowed for volume increases (or decreases) in revenue-producing centers beyond acceptable corridors Projected volume assessed for reasonableness
Minnesota None During budget review, hospital's length of stay is evaluated
New Jersey Generally, 50/50 for personnel and 100% variable for supplies; applied to relevant costs in non-overhead cost centers Only “exceptional” volume increases are scrutinized
New York None Volume changes are not evaluated per se, but utilization is an important system target (Table 4)
Western Pennsylvania None Volume changes are generally considered beyond control of hospital administrator. Beginning in 1977, retroactive adjustments could be obtained to compensate for decrease in length of stay.
Washington As of 1978, ratios established for each peer group (80/20, 70/30, 60/40); applied to incremental revenue resulting from volume changes Trends in various volume measures are examined for reasonableness.