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This analysis aims to understand how changes in hospitalization length and service intensity affect hospital costs.

September 1, 2000Health Affairs

An Analysis Of Hospital Productivity And Product Change

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This analysis aims to understand how changes in hospitalization length and service intensity affect hospital costs.
Model developed to assess length-of-stay, service intensity, and productivity contributions from 1992 to 1996.
Data analyzed included trends in hospital costs per discharge and changes in service delivery settings.
Leading indicators evaluated to infer ongoing trends beyond 1996.
Length-of-stay reductions accounted for 97% of the decrease in real costs per discharge from 1992 to 1996.
Shift of care from inpatient to postacute settings contributed significantly to the cost reduction observed.
Later indicators suggest that reductions in length-of-stay had a smaller relative impact on cost growth in 1997 and 1998, with potential increases in productivity.

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Randomized trial analyzes the impact of service intensity on hospital costs, indicating significant changes in productivity.

Ashby et al. (2000) studied this question.

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