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Health Care Financ Rev. 2006 Spring;27(3):111-22.

Cost weight compression: impact of cost data precision and completeness.

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London Health Sciences Center, University Campus, Ontario, Canada.


This study was designed to quantitatively assess the impact of deficiencies in completeness and precision of hospital case cost data on cost weight compression. For the nursing per diem model versus the nursing workload model the average compression was 19.6 percent (for the 25.9 percent of cases that changed cost weight by at least 5 percent). We concluded that the compression of case mix cost weights based on nursing per diem cost or per diem charge models, such as for U.S. diagnosis-related groups (DRGs), may be pervasive and material.

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