Journal article
Beyond DRG: The effect of socio-economic indicators on inpatient resource allocation in Australia
Health Policy and Technology, Vol.7(3), pp.302-309
2018
Abstract
Financing in Australia's public hospital works through the Australian Refined Diagnosis Related Groups (AR-DRGs) with separations to specific DRG groups based on medical diagnosis or surgical procedure, patient's age, mode of separation, clinical complexity and complications. This paper aims at assessing how the AR-DRGs reflect the efficiency and equity of the hospitals resource allocation. Using administrative data of all acute public hospital admissions and length of stay (LOS) as a proxy for hospital costs, this paper showed that patients’ socio-economic (SES) characteristics are a strong determinant of health care utilization. Our results revealed that the lower the SES, the longer the LOS and hence more utilization of the inpatient resources. Therefore, omitting SES from the risk adjusters list and solely focusing on DRG- based compensation penalizes hospitals catering to lower SES populations. Our findings further support the idea of smaller/remote hospitals based on block funding.
Details
- Title
- Beyond DRG: The effect of socio-economic indicators on inpatient resource allocation in Australia
- Authors/Creators
- R. Hasanova (Author/Creator) - Australian National UniversityE. Mentzakis (Author/Creator) - University of SouthamptonF. Paolucci (Author/Creator) - Murdoch UniversityA. Shmueli (Author/Creator) - Hebrew University of Jerusalem
- Publication Details
- Health Policy and Technology, Vol.7(3), pp.302-309
- Publisher
- Elsevier
- Identifiers
- 991005542128307891
- Copyright
- © 2018 Published by Elsevier Ltd on behalf of Fellowship of Postgraduate Medicine.
- Murdoch Affiliation
- Sir Walter Murdoch School of Public Policy and International Affairs; School of Business and Governance
- Language
- English
- Resource Type
- Journal article
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