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Updated: Jun 6, 2026

Improving IV Insulin Administration in a Community Hospital

Improving IV Insulin Administration in a Community Hospital

Published on: June 11, 2012

Controlling for quality in the hospital cost function.

Kathleen Carey¹, Theodore Stefos

¹VA Center for Health Quality, Outcomes and Economic Research, Boston University School of Public Health, Bedford, MA 01730, USA. kcarey@bu.edu

Health Care Management Science

|November 19, 2010

Summary

This summary is machine-generated.

This study found that Patient Safety Indicators (PSIs) effectively measure hospital quality and associated costs. The average cost of an adverse event is estimated at $22,413, highlighting the financial benefits of inpatient safety.

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Last Updated: Jun 6, 2026

Improving IV Insulin Administration in a Community Hospital

Improving IV Insulin Administration in a Community Hospital

Published on: June 11, 2012

Area of Science:

Applied microeconomics
Health services research
Healthcare economics

Background:

Assessing hospital quality is complex, involving theoretical and practical challenges.
Incorporating hospital quality into cost function estimation requires robust methodologies.
Patient Safety Indicators (PSIs) offer a potential framework for measuring hospital quality.

Purpose of the Study:

To explore the relationship between hospital care cost and quality using applied microeconomics.
To empirically analyze the utility of 15 Patient Safety Indicators (PSIs) as measures of hospital quality.
To estimate the marginal cost associated with adverse patient safety events.

Main Methods:

Estimation of a total operating cost function.
Utilized 2,848 observations from five states spanning 2001-2007.
Employed 15 Patient Safety Indicators (PSIs) to quantify hospital quality and adverse events.

Main Results:

Patient Safety Indicators (PSIs) successfully capture cost variations linked to adverse patient safety events.
Aggregate measures of adverse events across PSIs are more effective than risk-adjusted individual PSI rates.
The estimated marginal cost of an adverse event is $22,413.

Conclusions:

The study provides empirical evidence supporting the use of PSIs for quality assessment in hospitals.
Aggregate PSI measures offer a superior approach to evaluating hospital quality and associated costs.
Findings underscore the economic rationale for prioritizing inpatient safety in healthcare services.