Empiric investigation on direct costs-of-illness and healthcare utilization of Medicaid patients with diabetes mellitus.

OBJECTIVE: To determine total direct costs-of-illness and to study the influence of different factors affecting these costs. In addition, we examined each type of service (e.g., hospitalization, outpatient care, prescription drugs, physician encounters, and laboratory tests) for diabetic Medicaid patients to provide evidence about the relationship between diabetic patients' healthcare utilization and their related predictors. PATIENTS AND METHODS: A total of 7931 patients with diabetes who were 65 years or younger in the Alabama Medicaid program from 1992 to 1995 were studied. Using a relational database created from Medicaid claims, multiple regression and canonical correlation methods were used to analyze the patients' direct costs-of-illness, including the costs associated with each healthcare service used by each patient. RESULTS: The costs of hospitalization, outpatient care, prescription drugs, and physician encounters were the four largest components of the direct costs-of-illness for diabetic Medicaid patients, comprising 29.9%, 21.3%, 28.2%, and 14.3%, respectively. After controlling for other factors in an empiric model, the direct costs-of-illness for a patient with insulin-dependent diabetes mellitus was $5160 higher than for a patient with noninsulin-dependent diabetes mellitus during the 3-year study. The cost for a patient with renal dysfunction was $59,920 higher than for other diabetic patients. Each increase in the number of different prescribing physicians per patient was associated with a cost increase of $450. Each additional comorbidity increased the cost by $735 per patient. The cost for a male patient was $2140 higher than that for a female patient, and the cost for a white patient was $1330 higher than that for a non-white patient. For a patient who relied on diet to control diabetes, there were $2750 less in costs compared with other patients during the study period. More than 20% of the variability in patients' healthcare utilization costs was explained by the set of predictive factors. CONCLUSIONS: The direct costs-of-illness and healthcare utilization for Medicaid diabetic patients were significantly accounted for by the number of comorbidities, the number of different physicians visited, insulin-dependent diabetes mellitus, and complications (especially renal dysfunction). Patients who relied on dietary therapy and exercise to control their diabetes had lower healthcare costs and utilization than other patients. A significant amount of healthcare costs and utilization might be controlled or reduced if diabetes disease management can successfully be aimed at preventing diabetic complications, controlling comorbidities, and minimizing the number of different physicians visited.

Quality determinants and hospital satisfaction. Perceptions of the facility and staff might be key influencing factors.

Perceptions of service quality ultimately affect consumer satisfaction, but objective measures of quality can be hard to come by when evaluating the quality of clinical care in a hospital. To determine if dimensions other than those found in models such as SERVQUAL were at play, the authors undertook a survey of 472 consumers, who were divided into two groups: those who had been hospital patients within the last three years (users) and those who were visitors (observers). The results suggest that facilities-related and human-factor related considerations helped shape the quality assessments of both groups, with observers generally giving higher marks to the hospitals with which they were familiar on the dimension of facilities-related quality and users expressing a less critical view of the human-factor dimension.

Prediction of hospital failure: a post-PPS analysis.

This study investigates the ability of discriminant analysis to provide accurate predictions of hospital failure. Using data from the period following the introduction of the Prospective Payment System, we developed discriminant functions for each of two hospital ownership categories: not-for-profit and proprietary. The resulting discriminant models contain six and seven variables, respectively. For each ownership category, the variables represent four major aspects of financial health (liquidity, leverage, profitability, and efficiency) plus county marketshare and length of stay. The proportion of closed hospitals misclassified as open one year before closure does not exceed 0.05 for either ownership type. Our results show that discriminant functions based on a small set of financial and nonfinancial variables provide the capability to predict hospital failure reliably for both not-for-profit and proprietary hospitals.

The effects of demographics on determinants of perceived health-care service quality. The case of users and observers.

Notes that previous research suggests the components of perceived service quality are industry specific, and that calls have been made for academics to integrate their theory into practice. Investigates the effects of demographic factors on users and observers of perceived hospital quality. Reports results suggesting perceived quality is industry specific, users and observers differ in their perceptions of hospital quality and demographic factors do make a difference in perceived hospital quality.

An empirical examination of shift strategies in the service industry: how hospitals adapt to industry change.

Research on the ability of firms to select different strategies in an effort to shift their strategic position has focused almost entirely on the mature manufacturing industries. In this paper, we propose that the relationship of strategy selection in manufacturing extends to the service industry, and test this proposition in one very visible faction of the service industry, health care. The results of this study show that health care organizations use both operational and strategic shift strategies to adjust to new environmental conditions.