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Dr. Mallory practices at your hospital and at your competitor. Presented below are data for MS-DRG 470 (major joint and limb reattachments, lower extremity)

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Dr. Mallory practices at your hospital and at your competitor. Presented below are data for MS-DRG 470 (major joint and limb reattachments, lower extremity) that reflect practice patterns for Dr. Mallory at the two hospitals. Your Hospital Competitor Discharges Average age 150 90 68 50 Length of stay 4.4 4.1 Average cost $10,550 $7,108 Nursing cost $1,988 $1,208 Ancillary cost $8,552 $5,900 Operating room cost $2,405 $2,158 Lab cost $836 $484 Radiology cost $277 $191 Medical supplies cost $3,022 $1,690 Pharmacy cost $857 $335 Other costs $1,156 $1,042 What do you think accounts for the difference in costs between the two hospitals?

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