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Related Experiment Videos

A new methodology for ancillary services review.

M L Garg, W M Kleinberg, B Schmitt

    Medical Care
    |June 1, 1985
    PubMed
    Summary

    Most diagnostic tests and treatments occur early in a hospital stay. Length-of-stay (LOS) reviews after day 9 impact only 25% of services, suggesting a need for earlier cost control methods.

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    Area of Science:

    • Health Economics
    • Hospital Administration
    • Medical Informatics

    Background:

    • Ancillary services constitute a significant portion of hospital costs.
    • Current length-of-stay (LOS) reviews often occur late in a patient's admission.
    • The implementation of diagnosis-related groups (DRGs) necessitates efficient cost management strategies.

    Purpose of the Study:

    • To analyze the daily accumulation of charges for diagnostic tests, procedures, and therapies.
    • To evaluate the impact of traditional LOS reviews on cost control.
    • To propose a method for early-stage hospital service utilization review.

    Main Methods:

    • Life table analysis techniques were applied to patient data.
    • Charges for ancillary services were tracked daily.
    • Analysis was conducted for general patient populations and those with congestive heart failure.

    Main Results:

    • Approximately 50% of ancillary services are utilized by day 5 of hospitalization.
    • By day 9, 75% of all diagnostic tests, procedures, and therapies are administered.
    • LOS reviews initiated after day 9 only influence the remaining 25% of services.

    Conclusions:

    • The majority of hospital ancillary services are consumed within the first week of stay.
    • Late-stage LOS reviews are suboptimal for controlling costs associated with early service utilization.
    • A proposed method for early data generation can support cost control initiatives under DRG reimbursement.

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