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

Your HospitalCompetitor

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Discharges15090

Average age6850

Length of stay4.44.1

Average cost$10,550$7,108

Nursing cost1,9981,208

Ancillary cost8,5525,900

Operating room cost2,4052,158

Lab cost836484

Radiology cost277191

Medical Supplies cost3,0221,690

Pharmacy cost857335

Other costs1,1561,042

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