RESULTS

The University of Michigan Medical Center discharged 29,036 patients during fiscal year 1998. Table 1 provides descriptive statistics on all surviving patients discharged during this period who had LOS of 4 days or more and were not discharged against medical advice (n = 12,365). Patients who fit this description had mean and median LOS of 10.5 days and 7 days, respectively. Mean (± SEM) and median total costs per case were $17,734 ± $229 and $10,289, respectively, and the mean (± SEM) and median variable direct costs of the last full day before discharge were $420 ± $7 and $310. These results show that hospital-wide, the last full day before discharge represented 9.5% of the mean 10.5-day LOS, and yet only 2.4% of the total cost of care can be identified specifically with this interval. Table 1 also stratifies patients by LOS. In all cases, last-day resource consumption was remarkably light; mean variable direct costs incurred on that day were $458 or less. For LOS of 4 days, for example, the last full day represented 25% of the total LOS, and yet only 6.8% of the total cost of care was attributable to this period.

Table 1. Costs for Surviving Patients for the Hospital at Large


LOS  n Mean total cost ($) Last-day VDC ($) Last-day VDC as percentage of mean total cost (%)

4 2,614 6,782 ± 96 458 ± 20 6.8
5 1,820 8,453 ± 154 445 ± 24 5.3
6 1,284 9,632 ± 185 373 ± 9 3.9
7 1,130 11,131 ± 211 421 ± 28 3.8
8-14 3,365 16,419 ± 182 406 ± 14 2.5
>15 2,152 49,246 ± 999 402 ± 7 0.8
All patients LOS > 4   12,365 17,734 ± 229 420 ± 7 2.4


Data are presented as mean ± SEM or %.
LOS, length of stay; VDC, variable direct cost.

Table 2 examines subgroups of this population who had major surgery (n = 4,163) and those who did not (n = 7,195). The purpose of this stratification is to determine whether the results in Table 1 might be driven primarily by patients with large up-front expenses followed by long periods of convalescence (with low attendant resource costs). The left-hand columns of Table 2 describe patients who incurred $2,000 or more in surgical costs during their hospital stays; the right-hand columns include those patients who incurred less than $1,000 in such costs. There were relatively few patients (n = 1,007) who had total surgical costs in the $1,000 to $2,000 range, and so this group was omitted to ensure a stark distinction between the categories. By design, this stratification isolates patients who likely had large expenditures early in their hospital stays and juxtaposes them against lower-cost patients who could conceivably consume hospital resources more uniformly over the entire LOS. As one might expect, cases involving major surgery entailed higher mean total costs. The $36 difference in the last-day variable direct costs ($396 for patients with major surgery and $432 for patients without major surgery), although statistically significant (p = 0.020 by the two-tailed Student's t-test), is small. Consequently, variable direct costs incurred on the last full day before discharge constituted only 1.5% of the $26,547 average total cost for patients having major surgery, compared with 3.4% of the $12,631 average total cost for patients not having major surgery. The stratification by LOS in Table 2 reinforces the results in Table 1. What is striking is that last-day costs as a percentage of total costs are remarkably small even for patients who undergo no major surgery and have LOS of 4 or 5 days.

Table 2. Comparison of Patients With Major Surgery and Patients Without Major Surgery


  Surviving patients with major surgery (patients incurring >$2,000 in surgical costs) Surviving patients with no major surgery (patients incurring <$1,000 in surgical costs)
 

LOS  n Mean total cost ($) Last-day VDC ($) Last-day VDC as percent of mean total cost (%) n Mean total cost ($) Last-day VDC ($) Last-day VDC as percent of mean total cost (%)

4 681 10,737 ± 249 461 ± 54  4.3  1,756 5,316 ± 74   464 ± 21 8.7
5 522 13,055 ± 395 410 ± 52 3.1 1,137 6,596 ± 122 466 ± 28 7.1
6 394 13,934 ± 414 348 ± 12 2.5 798 7,545 ± 154 388 ± 13 5.1
7 381 14,493 ± 418 358 ± 23 2.5 670 9,287 ± 209 429 ± 24 4.6
8-14 1,274 20,835 ± 330 379 ± 16 1.8 1,800 16,351 ± 199 421 ± 24 2.6
>15 911 64,552 ± 1,979 399 ± 13 0.6 1,034 36,532 ± 861 397 ± 7 1.1
All patients LOS >4 4,163 26,547 ± 552 396 ± 13 1.5 7,195 12,631 ± 184 432 ± 10 3.4

Data are presented as mean ± SEM or %.
LOS, length of stay; VDC, variable direct cost.

To gain perspective and detail, we conducted a subgroup analysis on all patients discharged from our level I trauma center during this period (n = 665). Table 3 provides descriptive statistics on this population. The table indicates that the $9,177 mean variable direct cost per patient is only 42% of the mean total cost per patient of $22,067. The remaining 58% is hospital overhead. The initial analysis of the population revealed that 46 patients died (6.9%) and 4 were discharged against medical advice (0.6%). There were 287 patients (43.2%) who spent at least 1 day in the ICU and 468 patients (70.4%) who stayed in the hospital 3 days or more. For the entire population, mean and median LOS were 8.3 days and 5 days, respectively. Total variable direct costs were $6,102,551 and total costs were $14,674,355. In aggregate, 19.4% of the total variable direct costs were incurred on the first day of hospitalization, 11.1% were incurred on the second day, and 7.7% were assessed on the third day. On our trauma service, 57.6% of all variable direct costs were incurred within the patients' first 7 days of stay. The mean and median variable direct costs and total costs per patient for the first 3 days are identified in Table 4.

Table 3. Descriptive Statistics for the Trauma Service in Fiscal Year 1998 (n=665)


Characteristic  Mean ± SEM Median

Age (y) 39.2 ± 0.8 37
LOS (d) 8.3 ± 0.4 5
ICU days 2.6 ± 0.2 0
Total cost per patient ($) 22,067 ± 1,416 8,925
Variable direct cost per patient ($) 9,177 ± 645 3,147


LOS, length of stay.

Table 4. Variable Direct Costs Per Day for the First 3 Days of Trauma Hospitalization


Variable direct costs n Mean ± SEM ($) Median ($)

First day of stay 665 1,783 ± 78 1,246
Second day of stay 559 1,216 ± 75 576
Third day of stay 468 1,008 ± 64 508

Table 5 identifies the same figures for the last 3 days of these patients' hospital stays. A comparison of the two tables reveals that these last 3 days are much less expensive than the first few days. For example, the median variable direct cost of $1,246 on the first day of admission is more than four times the $304 median variable direct cost on the day of discharge.

Table 5. Variable Direct Costs Per Day for the Last 3 Days of Trauma Hospitalization


Variable direct costs n Mean ± SEM ($) Median ($)

2 days before discharge 468 712 ± 39 385
Day before discharge 568 653 ± 37 323
Day of discharge 665 614 ± 37 304

For various reasons, the $614 mean variable direct cost incurred on the discharge day overstates the true cost of the last day of a patient's hospital stay. First, this figure includes the unusually high costs incurred by the 46 nonsurvivors in the population. The left side of Table 6 omits these 46 patients, along with 4 patients who were discharged against medical advice. Second, this $614 figure includes 242 patients who stayed in the hospital for 3 days or less. For these patients, the costs incurred in the last 3 days are also costs incurred in the first 3 days. To isolate the costs incurred at the end of the patients' hospital stays, the right-hand side of Table 6 also omits these 242 patients (along with the 50 patients who were omitted in the left-side calculations). These figures identify the end-of-stay variable direct costs of what one might consider a "representative'' surviving trauma-service patient in fiscal year 1998. The mean variable direct costs of the last 3 days of stay were $487, $396, and $333, and the median costs were $334, $278, and $257, respectively.

Table 6. End-of-Stay Variable Direct Costs Per Day for Trauma Subgroups

           
  Excluding nonsurvivors and patients discharged against medical advice Also excluding patients with LOS > 3d (n = 373) 
 

Outcomes n Mean
± SEM
Median Mean
± SEM
Median

LOS (d)  615 8.3 ± 0.4 5 12.4 ± 0.6 8
ICU d 615 2.1 ± 0.2 0 3.4 ± 0.3 1
VDC 2 d before discharge ($) 435 591 ± 30 362 487 ± 24 334
VDC 1 d before discharge ($) 532 535 ± 28 306 396 ± 21 278
VDC on d of discharge ($) 615 471 ± 21 286 333 ± 13 257


LOS, length of stay; VDC, variable direct cost.

Further refinement is possible by stratifying this population. Table 7 represents patients who spent at least 3 days in the ICU and 7 days in the hospital. These are the most seriously injured patients, and the table shows that these patients were costly to care for even after they were discharged from the ICU. The first 3 post-ICU days had mean variable direct costs of $1,017, $1,054, and $894, respectively. Yet by the time they were discharged, these patients' variable direct costs of care fell below $500 per day, as was the case for all other subgroups analyzed.

Table 7. Surviving Trauma Patients with 3 or More ICU Days and Length of Stay of 7 Days or More


Outcomes  n Mean ± SEM Median

LOS (d) 105 22.3 ± 1.5 18
VDC on first post-ICU day ($) 105 1,017 ± 58 975
VDC on second post-ICU day ($)   102 1,054 ± 145 786
VDC on third post-ICU day ($) 98 894 ± 86 644
VDC 2 days before discharge ($) 105 609 ± 55 443
VDC 1 day before discharge ($) 105 487 ± 37 365
VDC on day of discharge ($) 105 404 ± 28 321


LOS, length of stay; VDC, variable direct cost.

Introduction | Methods | Results | Discussion | References

 

JACS

 


This page and all contents are Copyright © 1996-2000
by the American College of Surgeons, Chicago, IL 60611-3211