Step 1: Calculate Placement Fees


The procedure determines fee(s) due the placement home for each client receiving service from the home. It is a standalone option on menu 56. If fees are due, the procedure creates a Payment Detail representing a fee for each unique funding source required by the Placement. Before calculating the fees, the program clears any fees that have not been vouchered.

"Calculate Placement Fees" recalculates the Net Payment Due for each Placement ever time it is run. The program calculates a fee only for Placements after the Date Placement Fees Begins defined in Placement Controls. The fee shown in the current reporting period is the difference between the fees now due less the fees previously vouchered. Thus, the program automatically self-corrects fee payments retroactively.

When the Net Payment Due is not equal to zero, "Calculate" creates a Payment Detail for each unique funding source inside each Placement. The Net Payment Due is the difference between the fee now due and the fee amount previously vouchered. It may be positive or negative.

The program reports any errors it finds on an error report. The worker who is controlling the payment process should examine the report, correct errors and omissions, then re-runs the procedure until the error reports are free of unacceptable errors.

Run "Calculate Placement Fees" from Menu PSMN56

To start the procedure, any authorized worker accesses the "Calculate Placement Fees" option from 
menu 56, then specifies the placement home and Provider.

Provider......... ____
Placement Home... _____ Blank = all

Use 'F2=Chg Prt Defaults' to set the correct values in the Printer Window. Send the report to a printer set up to print in landscape format.

Reports failures to calculate a fee for any Attendance Month

The Calculate Placement Error List reports all Placements whose fee cannot be calculated successfully. It specifies each reason for failure to calculate. The message is as descriptive as possible. If there are two reasons for the inability to calculate, the Error List shows two lines and gives separate messages.

Date of Birth, not Age, drives payment

Both Date of Birth and Age are stored for each Person. Since Age changes only when the Person record is updated, the program uses DOB to calculate fees.


Rates

The Standard Rate is the monthly fee paid to a placement home for the room and board it provides each client it houses. The rate is stored in the "Home Rates" table (menu 58 option "Home Rates"). The table supports a separate rate for each client age or range of ages. The program pulls the Rate with the most recent Effective Date prior to current date. The Service Unit for room and board care is a 'B'.

The agency may allow an Override Rate for special placement circumstances. The Override Rate is stored in the Placement screen itself. The agency may define a monthly or daily Override Rate or both. The daily rate need not be the monthly rate divided by the days in the month. If the daily rate is not defined, the program calculates it using the same rules used for the standard rate. If the daily rate is specified, the program uses that rate.

The agency may also pay a fee based upon a Supplemental Rate. The supplemental fee is paid in addition to the standard board fee. The agency may define a monthly supplemental rate, a daily rate, or both rates. If the daily rate is defined, the program uses it.

Calculation Rules

The placement fee is equal to the monthly rate in the rate table if the client stayed at the home for a full month. If the placement period is less than a full month, the fee is the number of days times the daily rate. The daily rate is the monthly rate divided by the number of days in the month. That is, the daily rate for placement in a month with 31 days is less than the rate in a month with 30 days. Both the placement fee and the daily rate are rounded to the nearest penny.

Example 1      31 days        the standard monthly Rate is $310.
                      January        pay $310.00

Example 2      10 days        the standard monthly Rate is $310; the derived daily Rate is $10.00.
                      January        pay $100.00.

Example 3      10 days        the standard monthly Rate is $310; the derived daily rate is $10.33.
                      April             pay $103.33

An override rate may be specified for an individual Placement. Unlike the standard rate, the override rate may be either a monthly or a daily rate. The program substitutes that rate for the Standard Rate found in the Home Rates table. 

Example 4      31 days        the standard Rate is $310; the override rate $510.00
                     January         pay $510.00 

Example 5     10 days         the standard Rate is $310; the override rate $510.00;
                     January         the derived daily rate is $16.45. 
                                         pay $510.00 

A supplemental fee may be authorized for an individual Placement. The program calculates the supplemental fee separately from the standard fee. 

Example 6      10 days        the standard monthly Rate is $310; the derived daily Rate is $10.00.
                     January         the supplemental rate is $50; the daily supplemental rate is $10.
                                         pay $100.00 plus $100.00

Service Days

The program determines the number of 'service' days for each placement in the period.

B Board

Calculation Logic


Determine Clients Age
Use DOB routine.

Count Service Days
Service Days are the number of nights defined by the beginning and ending placement dates.
If Service Days < number of days in the month, the placement period is NOT a full month.
If Service Days = number of days in the month, the placement period a EQUALS full month.

Calculate Base Payment when placement period is NOT full month
If Daily Override Rate NE 0, 
Base Payment = Service Days x Daily Override Rate.
If Daily Override Rate = 0,
Base Payment = Service Days x (Standard Rate/days in month)

Calculate Base Payment when placement period EQUALS full month
If Monthly Override Rate NE 0, 
Base Payment = Monthly Override Rate.
If Monthly Override Rate = 0,
Base Payment = Standard Monthly Rate.

Calculate Supplemental Payment
If Daily Supplemental Rate = 0 and Monthly Supplemental Rate = 0,
Supplement Fee = 0.
Skip routine.
If placement period is NOT full month,
and Daily Supplemental Rate NE 0
Supplement Fee = Service Days x Daily Supplemental Rate.
If placement period is NOT full month,
and Daily Supplement Rate = 0
and Monthly Supplemental Rate NE 0,
Supplemental Payment = Service Days x (Monthly Supplemental Rate/Days in month).
If placement period EQUALS full month,
Supplemental Payment = Monthly Supplemental Rate.

Calculate Net Payment Due

Total Payment = Base Payment + Supplemental Payment.
Net Payment Due = Total Payment - Client Co-payment - Previously Vouchered.



Messages


RATE AGES MUST MATCH CLIENT AGE
RATE AGES USED AS UPPER LIMIT OF MATCHRATE AGES USED AS UPPER LIMIT OF MATCH 
CHILD AGE
No Person Record.
No Rate for Placement.
No Funding Source for Standard Rate.
No Funding Source for Override Rate. 
No Funding Source for Supplement Rate. 
No Fund Account Numbers for Funding Source.
Client's Date of Birth is Zero.