Dr. Mallory practices at your hospital and your competitor. Presented below are data Dr. Mallory practices at your hospital and your competitor for DRG 469 (major joint and limb reattachment,(lower extremity) with MCC that reflects practice patterns that reflects practice patterns at both hospitals.

Your Hospital Competitor

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Discharges 150 90

Average age 68 50

Length of stay 4.4 4.1

Average cost $10,550 $7,108

Nursing cost 1,998 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

Question: What do you think accounts for the difference in costs between the two hospitals?