Concept: Adjusted Clinical Group® (ACG®) - Relative Cost Weights
Last Updated: 2002-11-02
Hospital Costing Details
Using 1995/96 patient hospital data, all inpatient hospital days were classified into RDRGs (version 9); each was weighted using Manitoba RCWs. Adjustments were made to the weights for atypical cases (cases involving non-acute days, outliers (LOS > Trim), transfers or deaths). For example, for cases with LOS > Trim, a marginal case weight was added to the [term=103489] Relative Case Weight (RCW) for every day that the LOS was past the ALOS (that is, case weight = RCW + Marginal case weight * (LOS - ALOS)). Marginal case weights were developed for each RDRG®.
For each hospital the case weights were summed. Hospital-specific average case weights were calculated by summing all the case weights in each hospital and dividing by the total number of hospital cases. Hospital average costs per weighted case (CWC) were calculated by dividing the total inpatient dollars by the total hospital case weights. The CWC for a hospital represents an average cost per case adjusted for the types of patients treated in that hospital.
CWC (per hospital) = Total dollars per hospital / Sum of all RCW (per hospital)To find the cost of a particular case:
Cost of a case = CWC * RCW for that caseDay care surgery costs were estimated using the DPG to classify cases and apply appropriate weights. The DPG weight was then multiplied by the CWC for the hospital providing the care to obtain an estimated cost per case.
Estimated day surgery cost for a case = DPG weight * CWC for that hospitalFor each patient, the inpatient and day procedure costs, if any, were combined.