One Approach to Assessing Experience/Price Levels at Hospitals
Comparing the levels of hospital charges made between different hospitals is by no means a straight forward excercise. This is because hospitals may carry out vastly different mixes of procedures and treat patients who may require longer/shorter stays in hospitals. So it is necessary to take account of procedure mix and patient mix when assessing charges in order to ensure that ‘like with like’ comparisons are made.
A number of approaches were considered by BUPA and comparisons of episode and daily charges studied into some depth. Both episode and daily charge comparisons have a number of advantages and disadvantages. A decision was made that for practical applications comparison of the daily charges adjusted for length of stay and procedural complexity mix would be used.
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