Hospital Productivity, Service Intensity, and Costs

AUTOR(ES)
RESUMO

A financial model of a hospital is used to analyze the relationships among service intensity, productivity, and per diem cost growth rates at various input cost growth rates. The model duplicates the hospital's cost-finding procedure given estimates of service volumes, hours, and direct costs. Results of the analysis indicate that large increases in labor productivity and/or decreases in service intensity would be necessary in order to limit the growth rate of per diem costs to 8 percent per year.

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