Modeling the Health Care Costs of Geriatric Inpatients

This paper extends a method for modeling the survival of patients in hospitals to allow the expected cost to be estimated for the patients´ accumulated duration of time in care. An extension of Bayesian network (BN) theory has previously been developed to model patients´ survival time in hospitals with respect to the graphical and probabilistic representation of the interrelationships between the patients´ clinical variables. Unlike previous BN techniques, this extended model can accommodate continuous times that are skewed in nature. This paper presents the theory behind such an approach and extends it by attaching a cost variable to the survival times, enabling the costing and efficient management of groups of patients in hospitals. An application of the model is illustrated by considering a group of 4260 patients admitted into the geriatric department of a U.K. hospital between 1994-1997. Results are derived for the distribution for their length of stay in the hospital and associated costs. The model´s practical use is highlighted by illustrating how hospital managers could benefit using such a method for investigating the influence of future decisions and policy changes on the hospital´s expenditure