This indicator measures the ratio of a hospital's total acute inpatient care expenses to the number of acute inpatient weighted cases related to the inpatients for which the hospital provided care.

Interpretation

Cost per weighted case is an indicator that measures the relative cost-efficiency of a hospital's ability to provide acute inpatient care. This indicator compares a hospital's total acute inpatient care expenses to the number of acute inpatient weighted cases related to the inpatients that it provided care for. The result is the hospital's average full cost of treating the average acute inpatient. A high cost per weighted case indicates a relatively high cost of treating the average acute inpatient; a low cost per weighted case indicates that the cost of treating the average acute inpatient is relatively low.

HSP Framework Dimension

Health System Outputs: Efficiently delivered

Areas of Need

Getting Better

Geographic Coverage

Newfoundland and Labrador, Prince Edward Island, New Brunswick, Nova Scotia, Quebec, Ontario, Manitoba, Saskatchewan, Alberta, British Columbia, Yukon, Northwest Territories

Reporting Level/Disaggregation

National, Province/Territory, Region, Facility, Others: This indicator is calculated at the hospital level and aggregated to the regional, provincial and national levels.

This indicator measures the ratio of a hospital's total acute inpatient care expenses to the number of acute inpatient weighted cases related to the inpatients for which the hospital provided care.

Calculation: Description

The indicator is calculated by dividing the facility's total inpatient cost by its total acute inpatient weighted cases (obtained from the Discharge Abstract Database), excluding day procedures.

Unit of Analysis: An acute inpatient weighted case

The indicator is expressed as the total inpatient expenses incurred to produce a weighted case. The indicator is calculated by fiscal year.

Calculation: Geographic Assignment

Place of service

Calculation: Type of Measurement

Ratio

Calculation: Adjustment Applied

The following covariates are used in risk adjustment:
See Cost per Weighted Case Methodology document for the methodology for determining total inpatient expense.

Calculation: Method of Adjustment

The range of acceptable values is 1st quartile (25th percentile) − 1.5 × IQR to 3rd quartile (75th percentile) + 1.5 × IQR, where IQR stands for the interquartile range. Values outside of this range are removed from regional, provincial and national averages.

Denominator

Description:
The denominator includes total acute inpatient weighted cases (obtained from the Discharge Abstract Database), excluding day procedures. Exclusions:
Day procedures

Numerator

Description:
The numerator is the total inpatient cost for the facility. The methodology for determining the total inpatient cost is found in the Cost per Weighted Case Methodology document.

Background, Interpretation and Benchmarks

Rationale

The indicator was developed to increase cost-efficiency in hospitals.

The four factors that influence indicator results are organizational structure, components of CPWC, methodological issues and data quality.

The indicator can provide insight into the total cost to treat an average inpatient with a Resource Intensity Weight (RIW) of 1, to improve cost-efficiency.

Interpretation

Cost per weighted case is an indicator that measures the relative cost-efficiency of a hospital's ability to provide acute inpatient care. This indicator compares a hospital's total acute inpatient care expenses to the number of acute inpatient weighted cases related to the inpatients that it provided care for. The result is the hospital's average full cost of treating the average acute inpatient. A high cost per weighted case indicates a relatively high cost of treating the average acute inpatient; a low cost per weighted case indicates that the cost of treating the average acute inpatient is relatively low.

HSP Framework Dimension

Health System Outputs: Efficiently delivered

Areas of Need

Getting Better

Targets/Benchmarks

Not Applicable

References

Not Applicable

Availability of Data Sources and Results

Data Sources

CMDB, DAD

Available Data Years

Type of Year:
Fiscal First Available Year:
2009 Last Available Year:
Ongoing

Geographic Coverage

Newfoundland and Labrador, Prince Edward Island, New Brunswick, Nova Scotia, Quebec, Ontario, Manitoba, Saskatchewan, Alberta, British Columbia, Yukon, Northwest Territories

Reporting Level/Disaggregation

National, Province/Territory, Region, Facility, Others: This indicator is calculated at the hospital level and aggregated to the regional, provincial and national levels.