John M. Welton, PhD, RN Clara E. Dismuke, PhD Medical University of South Carolina 05/2008
"There has been growing concern about the costs and intensity of inpatient nursing care, which consumes more than 40% of hospital
direct costs and $165 billion each year.
Allocating nursing labor as an average cost per patient and charged as room and board creates cost compression, distorts hospital payment, and hides the economic value of nurses.
This article examines a method for adjusting daily room charges using nursing intensity weights assigned by the diagnosis related group.
The overall findings of this study are that a nursing intensity adjustment to existing inpatient billing improves explained variance in total hospital costs.
Incorporating a nursing intensity adjustment into the existing reimbursement structure would improve payment accuracy."
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