Different Costs for Different Places and Healthcare Market Differences

August 29th, 2009 | Uncategorized

 Thought I would elaborate on some of my comments about Different Costs for Different Places. The following is a Chart I prepare every time a new MEDPAR Data Set comes out from CMS. The 2007 data is the most recent and it was posted August 20, 2009 at http://www.cms.hhs.gov/MedicareFeeforSvcPartsAB/03_MEDPAR.asp#TopOfPage.

 Medicare ALOS_2007

Recall that the NPR Report discussion at http://cpanet.typepad.com/cpanet/2009/08/how-far-is-it.html indicated ALOS (average length of stay) in Japan was 36 days versus 6 here in the US.  6 was in fact the correct number before the relase of the 2007 data so the Author had it right. More important, look at the Chart above and ask yourself: What is going on in New Jersey that makes length of stay so long? And what about Maryland and Oregon? Could it be that there are some differences in Hospital Capacity? Maybe Style of Medical Practice? Maybe Payment Rates for Hospitals? How about health of the population or access to care? I did mention that Oregon is the size of England with less than 10% as many people. THINK ABOUT IT! This data means something and it is a critical reason why Healthcare Reform on a National Basis is, at best, suspect.

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