Determinants of length of stay:implications on differential funding for rural and metropolitan hospitals

Abstract

This study analysed and compared the determinants of length of inpatient stay between the rural and metropolitanpublic hospitals. The investigation was based on the 1998/99 Western Australia patient discharge data. A Coxregression model was used due to the high proportion of patient transfers in the rural hospitals. It was found thatseveral variables were associated with length of stay (LOS) variations within Diagnosis Related Groups (DRG). Themethod provides additional insights to hospital management and clinicians in assessing the risk of prolongedhospitalisation. From a state government perspective, a DRG payment adjustment strategy may be developed fordifferent categories of admitted patient episodes. The analysis has implications on the formulation of differentialfunding rates between rural and metropolitan hospitals.