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The high cost of low-acuity ICU outliers
Deborah Dahl1, Greg G Wojtal, Michael J Breslow
1Banner Health, Phoenix, USA. deb.dahl@bannerhealth.com
Insights
High-acuity patients drive intensive care unit (ICU) costs, but low-risk patients who stay longer incur disproportionately high costs and mortality. Identifying and managing these outliers is key to improving patient outcomes and reducing healthcare expenses.
Area of Science:
- Health Economics
- Critical Care Medicine
- Healthcare Management
Background:
- Direct variable costs in intensive care units (ICUs) significantly impact overall hospital expenditures.
- Understanding cost drivers and length of stay (LOS) is crucial for optimizing ICU resource allocation.
Purpose of the Study:
- To analyze the direct variable costs and length of stay (LOS) for patients in four Phoenix-area hospital ICUs.
- To identify patient factors, including acuity and risk level, associated with prolonged ICU stays and high costs.
Main Methods:
- Direct variable costs were calculated daily for all ICU patients.
- Patient acuity was assessed using the APACHE risk prediction methodology.
- Length of stay (LOS) outliers were defined as patients with ICU stays exceeding six days.
Main Results:
- Average daily ICU costs ranged from $1,436 to $1,759.
- Patients with higher acuity and longer LOS incurred higher daily costs.
- A significant portion of ICU costs (56.7%) were attributed to LOS outliers (16.2% of patients).
- Low-risk patients who became LOS outliers (11.1% of low-risk group) accounted for 25.3% of ICU costs and had fivefold higher costs and mortality.
Conclusions:
- Severity of illness is a key determinant of ICU resource consumption and LOS.
- A substantial number of long-stay ICU patients are initially low-risk, indicating a critical, under-recognized issue.
- Focusing on low-risk LOS outliers presents an opportunity to improve patient outcomes and reduce healthcare costs.
Abstract:
Direct variable costs were determined on each hospital day for all patients with an intensive care unit (ICU) stay in four Phoenix-area hospital ICUs. Average daily direct variable cost in the four ICUs ranged from $1,436 to $1,759 and represented 69.4 percent and 45.7 percent of total hospital stay cost for medical and surgical patients, respectively. Daily ICU cost and length of stay (LOS) were higher in patients with higher ICU admission acuity of illness as measured by the APACHE risk prediction methodology; 16.2 percent of patients had an ICU stay in excess of six days, and these LOS outliers accounted for 56.7 percent of total ICU cost. While higher-acuity patients were more likely to be ICU LOS outliers, 11.1 percent of low-risk patients were outliers. The low-risk group included 69.4 percent of the ICU population and accounted for 47 percent of all LOS outliers. Low-risk LOS outliers accounted for 25.3 percent of ICU cost and incurred fivefold higher hospital stay costs and mortality rates. These data suggest that severity of illness is an important determinant of daily resource consumption and LOS, regardless of whether the patient arrives in the ICU with high acuity or develops complications that increase acuity. The finding that a substantial number of long-stay patients come into the ICU with low acuity and deteriorate after ICU admission is not widely recognized and represents an important opportunity to improve patient outcomes and lower costs. ICUs should consider adding low-risk LOS data to their quality and financial performance reports.
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