Analyzing inpatient hospital duration and intensity: a methodology

Area of Science:

• Health Services Research
• Healthcare Management
• Medical Economics

Background:

• Existing cost-containment programs are complemented by new utilization review methods.
• Hospital inpatient service utilization is analyzed along two dimensions: duration and intensity.
• Blue Cross of Maryland developed a length of stay (LOS) review process.

Purpose of the Study:

• To introduce and describe a new methodology for reviewing hospital length of stay (LOS).
• To statistically analyze the relationship between LOS and ancillary service charges.
• To present preliminary findings from a pilot study of the new LOS review process.

Main Methods:

• A seven-step methodology was developed to review hospital length of stay.
• The process statistically analyzes the relationship between LOS and ancillary service charges as a proportion of total charges.
• This method monitors service duration (days) and service intensity (ancillary charges to total charges) simultaneously.

Main Results:

• Preliminary findings from a pilot study in eight Baltimore hospitals are presented.
• The study details the statistical analysis of LOS and ancillary service charges for selected diagnoses.
• The departure from existing methods involves simultaneous monitoring of two dimensions of inpatient care.

Conclusions:

• The new LOS review process offers a novel approach to monitoring inpatient care dimensions.
• This methodology aims to complement existing cost-containment strategies.
• Further evaluation of the pilot study findings is warranted.