DRG production costs: one more dimension in management information for South Australia hospitals

This paper summarises and discusses a report of a recent study undertaken by the South Australian Health Commission (SAHC) aimed at the measurement of the production costs of diagnosis related groups. Data were generated on an experimental basis for the seven major public hospitals in the State. The methodology was judged to be feasible, and data outputs of great potential value. It has therefore been decided that the costing process should become a routine component of the hospital management information system. Work is proceeding to extend the process to other sites. It is anticipated that production costs data of these types will make significant contributions to clinical program management, facilities planning, and hospital budgeting decisions in the future.