Using data from a study that involved 500 U.S. acute care hospitals, the author examines the relationship between the profitability of Diagnostic Related Groups (DRGs) and their DRG weight, and the similarity/difference of the most/least profitable DRGs across hospital types. Hospital administrators are cautioned that to engage in case mix management, they must use a management information system that provides the data necessary for determining the cost of treating each patient type within their own institution, not information derived from other facilities or other systems.
Get full access to this article
View all access options for this article.
References
1.
DesHarnaisS.I.KobrinskiE.J.ChesneyJ.D.LongM.J.AmentR.P. and FlemingS.T.1987. The early effects of the prospective payment system on inpatient utilization and the quality of care. Inquiry24: 7–16.
2.
LongM.J.ChesneyJ.D.AmentR.P.DesHarnaisS.I.FlemingS.T.KobrinskiE.J. and MarshallB.S.1987. The effect of PPS on hospital product and productivity. Medical Care25: 528–538.
3.
LongM.J.ChesneyJ.D. and FlemingS.T.1990. A reassessment of hospital product and productivity changes over time. Health Care Financing Review11: 69–77.
4.
Health Care Financing Administration.1983. Rules and regulations. Federal Register46 (Sept 1): 39876–39886.
5.
LongM.J.ChesneyJ.D. and FlemingS.T.Profitable and unprofitable DRGs: The implications for access. Health Services Management Research. In press.
