The effect of adverse medical events on spending on inpatient care

Abstract

Background: In this study, we examined the proposition that the occurrence of adverse medical events (AMEs) increases spending on inpatient hospital care.

Methods: Employing the individual and the episode of care as the unit of analysis, the study relied on data assembled in the Public Use Data File maintained by the Oklahoma State Department of Health. Multiple regression analyses were used to examine the covariates of the revenue per case and its components, the average revenue per day, and the number of days per case.

Results: The results indicate that the occurrence of AMEs would increase the revenue per case, the days of care per case, and the revenue per day.

Conclusions: Study findings suggest that a decline in AMEs improves quality while lowering spending on hospital care and the use of inpatient services.