Study: Increased Hospital Capacity Associated With Increased Utilization, Costs

The combination of higher hospital capacity and longer length of stay is associated with increased hospital bed utilization and costs, according to a study (pdf) by HCI3.

HCI3, a non-profit organization that creates programs to improve healthcare quality, was commissioned for this study by the Pittsburgh Business Group on Health. HCI3 studied data on hospital supply and utilization in Pittsburgh, Cleveland, Cincinnati and St. Louis hospital referral centers.

Data showed that Pittsburgh and Cleveland had the most beds per 1,000 residents at 4.2 and 4.3, respectively. In contrast, Cincinnati had 2.6 and St. Louis had 3.5 beds per 1,000 residents. Pittsburgh had the highest average adjusted length of stay at 5.4 days and the highest average hospital bed utilization per 1,000 residents at 751. Cincinnati had the lowest average hospital bed utilization per 1,000 residents at 512. Using Cincinnati bed utilization as a baseline, the researchers estimated the annual burden of additional hospitalizations is $187 million, $74 million and $127 million for Pittsburgh, St. Louis and Cleveland, respectively.

The authors concluded that a greater supply of beds and length of stay contributed to increased costs. They suggested local and state governments consider the financial burden against the potential gain of jobs from added hospital bed capacity.

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