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Specialty Hospitals Not More Cost-efficient Than Full-service Hospitals, Study Finds

Date:
October 2, 2008
Source:
Wiley-Blackwell
Summary:
A new study in Health Services Research compared the costs of physician-owned specialty hospitals with those of full-service hospitals. Results show that specialty hospitals are not more cost-efficient than the full-service hospitals with whom they compete.

One of the most notable recent developments in the U.S. hospital industry is the rapid rise of small hospitals specializing in cardiac, orthopedic, or surgical services which have tripled in number over the past 15 years.

A new study in Health Services Research compared the costs of physician-owned specialty hospitals with those of full-service hospitals. Results show that specialty hospitals are not more cost-efficient than the full-service hospitals with whom they compete.

Results show that orthopedic and surgical specialty hospitals appear to have significantly higher levels of cost inefficiency. This effect was not observed among cardiac specialty hospitals.

“We do conclude from our analysis that policy makers should not adopt the assumption that physician-owned specialty hospitals produce patient care more efficiently than their full-service competitors,” the authors note.

Kathleen Carey, James F. Burgess Jr., and Gary J. Young analyzed hospital costs using inpatient data from three states where single specialty hospitals are highly prevalent, includingTexas, California, and Arizona.


Story Source:

The above story is based on materials provided by Wiley-Blackwell. Note: Materials may be edited for content and length.


Journal Reference:

  1. Kathleen Carey, James F. Burgess Jr., and Gary J. Young. Specialty and Full-Service Hospitals: A Comparative Cost Analysis. Health Services Research, 2008; 43 (5p2): 1869 DOI: 10.1111/j.1475-6773.2008.00881.x

Cite This Page:

Wiley-Blackwell. "Specialty Hospitals Not More Cost-efficient Than Full-service Hospitals, Study Finds." ScienceDaily. ScienceDaily, 2 October 2008. <www.sciencedaily.com/releases/2008/10/081002103712.htm>.
Wiley-Blackwell. (2008, October 2). Specialty Hospitals Not More Cost-efficient Than Full-service Hospitals, Study Finds. ScienceDaily. Retrieved July 25, 2014 from www.sciencedaily.com/releases/2008/10/081002103712.htm
Wiley-Blackwell. "Specialty Hospitals Not More Cost-efficient Than Full-service Hospitals, Study Finds." ScienceDaily. www.sciencedaily.com/releases/2008/10/081002103712.htm (accessed July 25, 2014).

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