MANAGED CARE OUTLOOK

How managed care affects hospitalization

As managed care's share of a metropolitan market grows, hospitalization costs are more tightly controlled and hospital lengths of stay come down. That's what common sense suggests, and that's what a recent study bears out. But there are anomalies. In Milwaukee and Miami, for example, higher-than-average hospital costs coexist with fairly heavy managed care penetration. The maps below show how 20 of the nation's largest metropolitan areas fared in the study, which drew on a data base of 11.7 million patients discharged from 3,700 acute care hospitals.

Hospital costs by metropolitan area, vs. national average

ATLANTA

-2.41

BALTIMORE

+0.38

BOSTON

-6.45

CHICAGO

+6.34

CLEVELAND

+1.02

DALLAS

+3.94

DETROIT

-2.66

HOUSTON

+32.82

LOS ANGELES

-16.15

MIAMI

+10.47

MILWAUKEE

+13.60

MINNEAPOLIS-ST. PAUL

-3.61

NEW YORK

-9.28

PHILADELPHIA

+0.23

PITTSBURGH

+2.67

ST. LOUIS

+7.49

SAN DIEGO

-10.00

SAN FRANCISCO

-32.24

SEATTLE

-18.46

WASHINGTON

+6.21

Hospital lengths of stay by metropolitan area, vs. national average

ATLANTA

-7.70

BALTIMORE

-2.77

BOSTON

-2.41

CHICAGO

-3.76

CLEVELAND

-5.70

DALLAS

-14.13

DETROIT

+4.65

HOUSTON

+2.14

LOS ANGELES

-17.81

MIAMI

-2.81

MILWAUKEE

-0.54

MINNEAPOLIS-ST. PAUL

-18.92

NEW YORK

+50.07

PHILADELPHIA

+11.50

PITTSBURGH

+3.69

ST. LOUIS

-5.06

SAN DIEGO

-26.07

SAN FRANCISCO

-20.32

SEATTLE

-25.54

WASHINGTON

+8.92

Percentages are adjusted for severity differences.

SOURCE: KPMG PEAT MARWICK LLP, COSTA MESA, CALIF. (CALL 800-243-1397 FOR A COPY OF THE STUDY'S EXECUTIVE SUMMARY.)

MANAGED CARE March 1996. ©1996 Stezzi Communications