A Hospital Cost Model for Policy Analysis |
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Authors: | Ian Coverdale Richard Gibbs Keith Nurse |
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Institution: | 1.Department of Health and Social Security,Operational Research Service, |
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Abstract: | The paper describes the development of a model of hospital inpatient costs. The model has three components; overhead, hotel and treatment costs. The size of each component is estimated using regression on historical hospital cost and activity data. It is argued that, for certain types of policy analysis, the model provides a better picture of hospital costs than do conventional accounting methods. The application of the model to a number of policy issues is described. |
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