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(1989) showed that hospitals continued to respond to constrained Medicare revenues by reducing length of stay and operating expenses per case.
We hypothesized that this not only reduces the economic burden of joint replacement by reducing length of stay, but also helps in reduction of early complications.
'Geriatrics and other specialties' has the largest percentage of hospital days that could be saved by reducing length of stay to the 15th percentile.
In the second case, for a cardiology ward, what-if analyses with the model showed that workload could be substantially lowered by reducing length of stay.
Hospitals responded by reducing length of stay and operating expenses per case, more so among hospitals facing the greatest revenue constraints.
Brownell et al. (1995) determined the potential savings by reducing length of stay in eight major acute care hospitals in Manitoba [ 5].
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In July, C.M.S. announced a gainsharing demonstration project at 12 New Jersey hospitals, which will offer doctors financial rewards for helping the hospitals improve efficiency and lower costs by reducing length-of-stay, improving discharge planning and so on.
Therefore, the potential percentage reduction generated by reducing lengths of stay to the 15th percentile hospital is relatively small, but because Internal Medicine is the largest specialty (in number of admissions), the absolute number of hospital days that can be saved is the highest of all specialties.
Indeed, it has been estimated that reducing length of stay by 1 day or reducing re-admissions by 50% could generate annual cost savings of between £50 and £120 million.
If the decrease in variable costs from reducing length of stay by 5 days is $100 per patient, then line B1 in Figure 1 is too low an estimate of the costs of infection and the potential savings from prevention.
As DRG is based on an estimated cost of a certain patient group, reducing expenditures, by for instance reducing length of stay, for this patient group will improve hospital economy, at least in the short term.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com