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KMID : 0387319980080010001
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Korean Journal of Health Policy and Administration
1998 Volume.8 No. 1 p.1 ~ p.14
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Statistical Model for Analysing Variations in Inpatient Procedure and Operation Costs of Some Selected K-GRGs by Type of Hospitals
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Lee Young-Jo
Noh Maeng-Seok
Kim Yoon
Lee Moo-Song
Lee Sang-Il
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Abstract
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Analysis of practice variations has been of important issues in trying to contain costs as well as to manage quality in health care. This study was conducted to provide statistical model for analysing variations in inpatient costs by type of hospitals.
Four K-DRGs including Cesarean section, appendectomy, cataract extraction, and pediatric pneumonia with CC class 0 were selected, and means and dispersions of inpatient procedure and operation costs were simultaneously compared between type of hospitals.
The results indicated that joint modelling of means and dispersions by gamma distribution was a very useful analytic tool for identifying factors which might have relationship with variations in inpatient costs. This model can be expanded to test the significance of several independent variables in analysing cost variations.
In surgical conditions, means and unit variations of procedure and operation costs showed consistent pattern which was tertiarty hospital, general hospital, and hospital in descending order. Different findings were identified in pediatric pneumonia, from which mean and unit variation of procedure and operation cost was the highest in general hospital. The practical implication of this difference could not be drawn from this study. It will be done by further sophisticated researches.
In order to develop health policy for cost containment and quality management in Korea, it is essential to find out manageable factors affecting variations in practice patterns which include characteristics of population, providers, regions, and so on. The statistical model presented in this study will give health services researchers useful insights for future investigations in analysing cost variations.
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KEYWORD
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cost variation, K-DRG, joint modelling, gamma distribution, coefficient of variation
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