Dr. Mallory practices at your hospital and your competitor. Presented below are

Question

Dr. Mallory practices at your hospital and your competitor. Presented below are data

for DRG 469 (major joint and limb reattachments,(lower extremity) with MCC 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

Question: What do you think accounts for the difference in costs between the two hospitals?

Explanation / Answer

The main reasons for the increase in costs are

No of discharges

No of days stay

The average age

By seeing the above the expenses are almost all are variable in nature.

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