Dr. Mallory practices at your hospital and your competitor. Presented below are data for DRG 469 (major joint and limb reattachments, (lower extremity) with MCC that reflects practice patterns for Dr. Mallory at the two hospitals:
Your Hospital Competitor
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Discharges 150 90
Average age 68 50
Length of stay 4.4 4.1
Average cost $10,550 $7,108
Nursing cost 1,998 1,208
Ancillary cost 8,552 5,900
Operating room cost 2,405 2,158
Lab cost 836 484
Radiology cost 277 191
Medical Supplies cost 3,022 1,690
Pharmacy cost 857 335
Other costs 1,156 1,042
Question: What do you think accounts for the difference in costs between the two hospitals?