Concept: Calculating Hospital Costs Using Cost Per Weighted Case (CPWC) / Cost of a Standard Hospital Stay (CSHS) Values
Last Updated: 2025-10-03
CPWC = Total Hospital Costs ÷ Total Weighted Cases (TWC)Hospital Costs
1. Shanahan et al. (1994) and Lloyd et al. (1995)
In the earliest of MCHP's work with cost per weighted case, Shanahan et al. (1994) and Lloyd et al. (1995) used the Refined Diagnosis Related Groups (RDRG®) case mix system to develop a cost per weighted case. Although this work has relevance to the development of CPWC methods used at MCHP, the RDRG case mix system is no longer used at MCHP - we now use the Case Mix Group (CMG™) case mix system in our work with CPWC. This information is provided for historical reasons.
For more information on costing methods using the RDRG case mix system, please see:
- Appendix A: Overview of Methodology for Calculating Cost Per Weighted Case in the Hospital Case Mix Costing Project 1991/92: Methodological Appendix (1995) deliverable; and
- section 1 - Case-Mic Costing Using RDRGs in the Hospital Costing in the 1990's concept.
2. Finlayson et al. (1999)
In the deliverable Hospital Case-Mix Costing Project: Using the Manitoba Management Information System: A first step by Finlayson et al. (1999), they investigated the feasibility of using Management Information System (MIS) data to perform case mix costing. This was the first year (1995-96) of data collection in the MIS data, as well as the use of CMGs and RIWs from CIHI in the hospital abstract data. The study was designed to determine if MIS could be used to:
- estimate the cost of providing inpatient care to different types of patients, and
- estimate the average cost of providing inpatient care in different types of hospitals.
For more information on the methods used to develop the CPWC in this research, see Chapter 2 - Methods in the deliverable.3. Finlayson et al. (2001)
In the deliverable Using the Manitoba Hospital Management Information System: Comparing Average Cost Per Weighted Case and Financial Ratios of Manitoba Hospitals. The Next Step, by Finlayson et al. (2001), they calculated the CPWC for 1997/98 hospital abstract data using the CMG / RIW system and financial data from the Management Information System (MIS) data. The CPWC for all hospital cases in Manitoba in 1997/98 was $2,194.
This deliverable also presented information on the average CPWC:
- as an average of all hospitals;
- by type of hospital (teaching, urban community, major rural, intermediate rural, small rural, northern isolated and small multi-use facility). See the Hospital Types concept for additional information; and
- by Regional Health Authority.
For more information, please read section 3.1 Cost Per Weighted Case Comparison Between Hospitals and Health regions in the deliverable.
In subsequent work on costing, Finlayson et al. were able to develop additional CPWC values for use in MCHP research. This information is presented in the table below. The first two years in the table, 95/96 and 96/97, were developed using information based on the Refined Diagnosis Related Groups (RDRG®) case mix system (NOTE: RDRGs are no longer in use at MCHP), a precursor to the CIHI CMG case mix system. The rest of the table is based on the CMG case mix system.NOTE:
Year Cost Per Weighted Case (CPWC) 95/96 $2,18296/97 $2,18897/98 $2,19498/99 $2,23799/00 $2,293----- ----------------98/99 $2,20799/00 $2,42400/01 $2,56201/02 $2,72902/03 $2,91903/04 $3,069
- It may be important to apply the CPWC value specific to each year when computing costs, but this depends on the purpose of the study.
- The CPWC values in the second set of numbers for 98/99 to 03/04 were provided July 4, 2006 by G. Finlayson. NOTE: There are two years of data presented twice in the table; 98/99 and 99/00. The second set of CPWC values for 98/99 and 99/00 are different than the first set of values based on updated financial statements of hospital expenditures in annual reports.
An example of the SAS code developed and used in this research is available below - see the section MCHP SAS Code Example Using the CPWC Measure.
NOTE RE: ADDITIONAL TABLES of CPWC / CSHS VALUES
The values in the table above relate to the work that was done by Finlayson et al., from ~2001. For more recent information about CPWC / CSHS values, please see the Cost Per Weighted Case (CPWC) / Cost of a Standard Hospital Stay (CSHS) – Canadian Institute of Health Information (CIHI) Methods section below.4. Finlayson et al. (2001)
In the deliverable A Comparison of Preliminary and Adjusted Cost per Weighted Case Determinations for Manitoba Hospitals: Impact for Evaluation and Report Cards by Finlayson et al. (2001), they calculated the CWC for each hospital and type of hospital in Manitoba. Four different CWC measures were calculated using different sets and combinations of data:
- raw MIS data;
- confirmed MIS data;
- in-year adjusted total weighted cases (TWC); and
- confirmed MIS data and in-year adjusted total weighted cases (TWC).
For more information on the methods used to develop the CWC in this research, see Chapter 3 - Methods in the deliverable.5. Finlayson et al. (2009)
In the deliverable The Direct Cost of Hospitalizations in Manitoba, 2005/06, by Finlayson et al. (2009), they developed separate cost lists for hospital inpatient services and day surgery services based on data available for 2004/2005. They calculated the provincial average CPWC as: $2,954.45.
For more detailed information, see the following information in the Hospital Costing: Using the 2009 Cost List for Manitoba Hospital Services concept:
- the Methods section describes the CPWC methodology used in this research; and
- The Cost Lists section describes information about the two cost lists that were developed and provides links to the cost lists that are available in this deliverable.
6. Martens et al. (2015)
In the deliverable The Cost of Smoking: A Manitoba Study, by Martens et al. (2015), they investigated the cost of health services related to smoking, including physician services, prescription drugs, and hospital services. In this research, they used a standard costing approach to estimate hospital costs. This involved using the resource intensity weight (RIW) for inpatient procedures and an average cost per weighted case (CWC). The CWC value used in this research was $5,438, based on 2010 data available on the Canadian Institute for Health Information (CIHI) web site.
For more information on how CWC was calculated and used in this research, please read the sub-section titled Hospital Use under the main heading Healthcare Costs: Putting Prices on Use of Healthcare Resources.
For more information on CIHI's development and use of CPWC, see the Cost Per Weighted Case (CPWC) / Cost of a Standard Hospital Stay (CSHS) – Canadian Institute of Health Information (CIHI) section below.
YearCost of a Standard
Hospital Stay (CSHS)2011/2012 $5,7672012/2013 $6,0042013/2014 $6,0932014/2015 $6,2382015/2016 $6,358
Information received in October 2023 from the CIHI web site reported Manitoba CSHS values for the period 2017/2018 to 2021/2022. Additional information from CIHI (Source: CIHI Website - Canadian Institute for Health Information.
Cost of a Standard Hospital Stay.
Accessed October 3, 2025) for partial data coverage only for 2022/2023 was added to the table in October 2025, as follows:
NOTE: For a comparison of provincial CSHS over the period 2017/2018 to 2022/2023, please see the document titled CIHI - Cost of a Standard Hospital Stay (CSHS) - Provincial Comparison Listing - 2017/18 to 2022/23 (XLSX) - INTERNAL in the LINKS section below (internal access only).
YearCost of a Standard
Hospital Stay (CSHS)2017/2018 $6,2032018/2019 $6,5082019/2020 $6,5762020/2021 $7,6672021/2022 $85602022/2023 $8123