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The costs of disease
D S Young1, B S Sachais, L C Jefferies
1Department of Pathology and Laboratory Medicine, University of Pennsylvania, 3400 Spruce St., Philadelphia, PA 19104-4283, USA. donaldyo@mail.med.upenn.edu
Clinical Chemistry
|July 15, 2000
Summary
This study analyzed hospital costs for over 1.3 million inpatients, finding length of stay and accommodation costs predict medical expenses, while laboratory costs predict surgical expenses. Hospitals can use this data for cost reduction and program decisions.
Area of Science:
- Health Economics
- Hospital Management
- Healthcare Cost Analysis
Background:
- No prior studies have identified and compared component costs for treating numerous inpatient diseases.
- Understanding disease-specific treatment costs is crucial for hospital financial management.
Purpose of the Study:
- To identify and compare component costs for treating a wide range of diseases in hospitalized patients.
- To provide data for hospitals to optimize cost reduction strategies and clinical program decisions.
Main Methods:
- Analysis of hospital costs for 486 diagnosis-related groups (DRGs) from over 1.3 million patient discharges.
- Examination of length of stay, total cost, and key cost components (accommodation, intensive care, surgery) for each DRG.
Main Results:
- Surgical diseases generally incurred higher total costs than medical diseases.
- Percutaneous cardiovascular procedures and neonatal respiratory failure management were the costliest DRGs.
- Length of stay and accommodation costs predicted medical condition costs; laboratory costs predicted surgical condition costs.
Conclusions:
- Length of stay and accommodation costs are key predictors for medical condition expenses.
- Laboratory costs are the primary predictor for surgical condition expenses.
- Hospitals can leverage this comparative cost analysis for targeted cost reduction and strategic planning.
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