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Related Experiment Videos

Hospital mission and cost differences.

E A Sorrentino

    Hospital Topics
    |April 9, 1989
    PubMed
    Summary
    This summary is machine-generated.

    For-profit hospitals show lower labor costs per patient day, indicating cost-cutting behavior, but no significant differences in overall patient stay or admission costs compared to non-profit and government hospitals.

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    Area of Science:

    • Health Services Research
    • Hospital Administration
    • Healthcare Economics

    Background:

    • Hospital ownership (non-profit, government, for-profit) is often assumed to influence operational costs and patient care.
    • Previous research has yielded mixed results regarding cost differences between hospital ownership types.
    • The dynamic nature of the healthcare environment necessitates ongoing examination of these differences.

    Purpose of the Study:

    • To compare key cost indicators and labor intensity across different hospital ownership types.
    • To investigate whether hospital ownership significantly impacts average length of stay, cost per patient day, and cost per admission.
    • To analyze manhours per patient day as a proxy for labor costs and efficiency.

    Main Methods:

    • Comparative analysis of hospital financial and operational data.

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  • Statistical controls for factors such as bed capacity, occupancy rates, and Medicare/Medicaid utilization.
  • Examination of manhours per patient day, with consideration for the presence or absence of hospital nurseries.

    • Main Results:

    • No significant differences were found in average length of stay, cost per patient day, or cost per admission between non-profit, government, and for-profit hospitals after controlling for key variables.
    • For-profit hospitals exhibited significantly lower manhours per patient day compared to non-profit and government hospitals.
    • The lower manhours in for-profit hospitals, particularly those without nurseries, suggest cost-cutting strategies focused on labor reduction.

    Conclusions:

    • Hospital ownership alone may not be a significant predictor of major cost outcomes like length of stay or cost per admission.
    • For-profit hospitals appear to employ labor-saving strategies, potentially impacting patient care delivery intensity.
    • Future research should consider the evolving healthcare landscape, including reimbursement policies and internal organizational factors, when examining hospital mission and cost variations.