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Can high healthcare costs be reduced? - Empirical evidence from community hospitals

Haichang Xin 1 , PhD, Mark L. Diana 2 , PhD, Anjum Khurshid 3 , PhD, Lisanne Brown 3 , PhD, Snigdha Mukherjee 3 , PhD University of Alabama at Birmingham; 2 . Tulane University; 3 . Louisiana Public Health Institute.

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Can high healthcare costs be reduced? - Empirical evidence from community hospitals

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  1. Haichang Xin1, PhD, Mark L. Diana2, PhD, Anjum Khurshid3, PhD, Lisanne Brown3, PhD, Snigdha Mukherjee3, PhD University of Alabama at Birmingham; 2. Tulane University; 3. Louisiana Public Health Institute Can high healthcare costs be reduced? - Empirical evidence from community hospitals

  2. Haichang Xin, PhD Presenter Disclosures No relationships to disclose

  3. Introduction and Objectives Hospital inpatient costs comprise the largest proportion of health care expenditures. This study examines cost drivers and cost savings attributed to preventable hospital admissions. The results will inform policies on cost containment.

  4. Methods---Overall Retrospective study design Hospital discharge data Jefferson and Orleans parishes Patients ages 18 and older

  5. Methods---Cost Drivers High cost defined as top ten percentile charges, over $14,682.5 Patient characteristics, including age group, gender, race, insurance status, treatment categories, and length of stay Logit model

  6. Methods---Cost Savings Ambulatory care sensitive conditions Prevention quality indicators (PQIs) from AHRQ Preventable hospital admissions in 2010 Diabetes and heart disease Cost charge ratio converts charges to costs

  7. Results---Cost Driver 1612 diabetes discharges and 3228 heart disease discharges A total related cost of $49.2 million Insignificant difference among age group, gender, and race Significant results (P<0.05): Medicare and other type insurance, compared to Medicaid; Urology medicine and general surgery; Longer patient length of stay

  8. Results---Cost Savings

  9. Conclusions More research needed for cost reduction from patient side Substantial room for cost savings from provider side on ambulatory care quality Future endeavors should identify specific areas on cost containment

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