A Methodology for Determining a Hospital's Expected Costs for Changes in Patient Load and Service Mix
AbstractThis paper describes a methodology that demonstrates how specific types of patient/cost data can be used to construct a model that predicts the expected increase or decrease in costs associated with a change in patient load, expansion of an existing patient service department, closure of an existing patient service department, or installation of a specific patient service department. Data from a group of New York State hospitals are used to illustrate the development of the model's components that produce cost estimates. A computer-based model is used to demonstrate the methodology's application to a specific hospital. Additionally, a number of program runs that simulate the cost impact of patient load and/or service mix changes are presented. Finally, the methodology's potential management and regulatory applications are discussed.
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Bibliographic InfoArticle provided by INFORMS in its journal Management Science.
Volume (Year): 33 (1987)
Issue (Month): 1 (January)
health care: hospitals; costing;
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- Cote, Murray J., 1999. "Patient flow and resource utilization in an outpatient clinic," Socio-Economic Planning Sciences, Elsevier, vol. 33(3), pages 231-245, September.
- Chowdhury, Sanjib & Miles, Grant, 2006. "Customer-induced uncertainty in predicting organizational design: Empirical evidence challenging the service versus manufacturing dichotomy," Journal of Business Research, Elsevier, vol. 59(1), pages 121-129, January.
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