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Published in: International Journal of Health Economics and Management 3-4/2013

01-12-2013

Between two beds: inappropriately delayed discharges from hospitals

Authors: Tor Helge Holmås, Mohammad Kamrul Islam, Egil Kjerstad

Published in: International Journal of Health Economics and Management | Issue 3-4/2013

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Abstract

Acknowledging the necessity of a division of labour between hospitals and social care services regarding treatment and care of patients with chronic and complex conditions, is to acknowledge the potential conflict of interests between health care providers. A potentially important conflict is that hospitals prefer comparatively short length of stay (LOS) at hospital, while social care services prefer longer LOS all else equal. Furthermore, inappropriately delayed discharges from hospital, i.e. bed blocking, is costly for society. Our aim is to discuss which factors that may influence bed blocking and to quantify bed blocking costs using individual Norwegian patient data, merged with social care and hospital data. The data allow us to divide hospital LOS into length of appropriate stay (LAS) and length of delay (LOD), the bed blocking period. We find that additional resources allocated to social care services contribute to shorten LOD indicating that social care services may exploit hospital resources as a buffer for insufficient capacity. LAS increases as medical complexity increases indicating hospitals incentives to reduce LOS are softened by considerations related to patients’ medical needs. Bed blocking costs constitute a relatively large share of the total costs of inpatient care.
Footnotes
1
There are reasons to believe that patients gain too by shorter length of stay given that they are provided adequate follow up services if needed, for instance rehabilitation services and help to cope with daily tasks.
 
2
See Holmås et al. 2010 for an analysis of the effects on LOS of changes in the way local authorities and hospitals interact.
 
3
Utilization review has been developed to reduce inappropriate hospital use by assessing hospital records. However, concurrent review of every patient admitted is very resource-intensive (e.g. Decoster et al. 1997).
 
4
In Norway, the provision of social care services for elderly people is the responsibility of the local authorities, while the provision of hospital services is the responsibility of state owned hospitals. Henceforth, when a patient is discharged from hospital, the medical and, if needed, the long term care responsibility is subsequently carried over to another governmental level. Social care services for the elderly are mainly nursing home services and home care services including services from trained nurses. Hospitals receive their income from the state based on a prospective Diagnosis related group (DRG) based remuneration system, while social care are financed by block grants and user fees.
 
5
We have analysed the effect of using social care expenditures divided by population 67 + instead of a per capita calculation (the results not reported in table). The coefficient is still significant, with the same sign but smaller (0.02 vs. 0.034).
 
6
The average remuneration per DRG point over the period 2006–2009 is approximately 33,370 NOK. For each of the six DRGs, we multiply the specific number of points associated with the DRG (the DRG ‘weight’) times the average remuneration of 33,370 NOK times number of patients treated.
 
7
In the Norwegian DRG based remuneration system the so called trim point is associated with ‘normal’ patients’ length of stay. The trim point is calculated on the basis of quartiles. For each DRG, the LOS values of the first and third quartile is calculated (Q1 and Q3). 25% of inpatients have a shorter LOS than the figure given by Q1 of 25% who have a longer LOS than Q3. The formula for the number of days that determine the trim point is Q3 + 1.5 (Q3 \(-\) Q1). In effect, patients with an extreme LOS do not influence the cost calculations for each DRG and the costs associated with treatment and care of these patients are not included in the DRG cost calculations or the DRG prices.
 
8
Home based care may be an alternative for some of the patients and home based care is typically a less expensive form of care compared to institutional care.
 
9
To test the sensitivity of our analysis, we have re-estimated the model where LOD is measured by using the difference between trim point of LOS, which is exogenous to each case, and discharge date. In respect to our baseline model for LOD, the results are similar, particularly for the main local authority characteristics. The effects of per-capita net expenses on social care (Net_exp_SC/inhab) and the net expenses institutional care as a share of the net expense of domestic care (exp_NH/totSC) are still negative and significant for LOD. However, the absolute magnitudes of the coefficients are smaller than the baseline model.
 
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Metadata
Title
Between two beds: inappropriately delayed discharges from hospitals
Authors
Tor Helge Holmås
Mohammad Kamrul Islam
Egil Kjerstad
Publication date
01-12-2013
Publisher
Springer US
Published in
International Journal of Health Economics and Management / Issue 3-4/2013
Print ISSN: 2199-9023
Electronic ISSN: 2199-9031
DOI
https://doi.org/10.1007/s10754-013-9135-4

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