Dr. Mallory practices at your hospital and your competitor. Presented below are data for DRG 209 (major joint and limb reattachments,(lower extremity) that reflects practice patterns for Dr. Mallory at the two hospitals:
Your Hospital Competitor
____________________________________________________________
Discharges 150 90
Average age 68 50
Length of stay 4.4 4.1
Average cost $10,550 $7,108
Nursing cost 1,998 1,208
Ancillary cost 8,552 5,900
Operating room cost 2,405 2,158
Lab cost 836 484
Radiology cost 277 191
Medical Supplies cost 3,022 1,690
Pharmacy cost 857 335
Other costs 1,156 1,042
What do you think accounts for the difference in costs between the two hospitals?
What do you think accounts for the difference in costs between the two hospitals?
Probably the age factor
Based on the given data, we can analyze the factors that account for the difference in costs between the two hospitals for DRG 209 (major joint and limb reattachments, lower extremity).
1. Discharges: Your hospital had 150 discharges for this DRG, while your competitor had only 90 discharges. Higher patient volume may contribute to increased costs because more resources are required to treat and manage a larger number of patients.
2. Average Age: The average age of patients at your hospital for this DRG is 68, while at your competitor's hospital, it is 50. Older patients may have more complex medical conditions and require additional care, leading to higher costs in your hospital.
3. Length of Stay: The length of stay at your hospital is 4.4 days compared to 4.1 days at your competitor's hospital. A longer length of stay can result in increased costs due to prolonged use of resources, such as nursing care, medications, and diagnostic tests.
4. Average Cost: The average cost at your hospital is $10,550, whereas at your competitor's hospital, it is $7,108. The average cost includes various components like nursing cost, ancillary cost, operating room cost, lab cost, radiology cost, medical supplies cost, pharmacy cost, and other costs. Differences in any of these individual cost components can contribute to the overall disparity in average cost.
5. Cost Breakdown: Analyzing the individual cost components, it is evident that your hospital has higher costs in almost all categories. Nursing cost, ancillary cost, operating room cost, lab cost, radiology cost, medical supplies cost, pharmacy cost, and other costs are all higher at your hospital compared to your competitor's hospital. These differences may be due to variations in staffing levels, equipment costs, pricing negotiations, or utilization patterns.
Considering these factors, it is apparent that the difference in costs between the two hospitals for DRG 209 could be attributed to several factors, including patient volume, patient demographics, length of stay, and differences in cost components. To gain a more comprehensive understanding of the cost differences, a detailed analysis would be required, taking into account additional variables such as case mix, resource utilization, and hospital-specific factors.