The Cost of Care During Times of COVID: Case Study of TDABC and Minimum Utilization Cost Analysis in a Medicare Advantage Population

Abstract

The COVID-19 pandemic has obligated us to rethink the use of telemedicine in healthcare.  During Covid-19 telemedicine has been essential to maintain patient access and provide continuity of care.  Historically, cost calculations in healthcare have not been transparent and accurate enough to project cost-effective strategies. This is particularly relevant when attempting to use value-based costing.  The Medicare Advantage Care service model offers great opportunity to evaluate the cost of care for research and financial reasons. Based on a capitated reimbursement model, a TDABC (Time Driven Activity Based Costing) methodology provides an accurate analysis to determine a MUC (Minimum Utilization Cost), contributing to better alignment and projection of an MLR (Medical Loss Ratio) that helps keep the balance between quality of care and financial responsibility.

PUBLISHER'S NOTE:  I had the pleasure of interviewing two of the authors about this subject matter.