Figure 1: Service Line Rate-Setting Process Flowchart
This figure represents a flowchart showing the Service Line Rate-Setting Process. The process is explained below.
The SLTs/SLOs assigned to each service line obtain budgeted costs from the Service Costing System. These budgeted costs are determined from either workload assumptions and/or benchmark data.
SLTs then develop service line rates and prepare rate proposals. The SLO submits rate proposal to DRR Director for approval.
If the DRR Director does not approve the rate proposal from the SLO, then the proposal is sent back to the SLTs to
develop new service line rates. If the DRR Director approves the rate proposal, then the DRR Director submits the rates to the CFO for approval.
Once the CFO receives the rates from the DRR Director, the CFO either approves or disapproves the rates.
If the CFO disapproves the rates, the rates are sent back to the SLTs to develop new rates and the approval process is repeated.
If the CFO approves the rates,
then the rates are used for receivership billings. Variance analysis are performed by SLTs during the year.
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