Bryant/Smith Case 42: Hopsital Charges
Keller Graduate School of Management
The research is done to find the solutions for some of questions like; the relationship between the doctors and their charges, the type of insurance having its effects on its customers and if there is any relationship between charges, payor and physicians. The data that is used in this research analysis to find the proper equation model for the relationship between payor, physicians and charges and number of days stay at the hospital, is from the Bryant/Smith Case 42 Hospital Charges (Appendix 1). As described in the case, the hospital’s revenues are determined ...view middle of the document...
The purpose of this report is to prepare a data model based on some of the questions like; whether the patient is charged more based on the insurance, or whether the physicians have different charges for their patients, and/or if the charges (CHRGS) are related to days (DAYS), physicians (PHYS) and/or payor (PAYOR).
The data that is used to prepare the report contains four variables; hospital stay in DAYS, charges that are charged to the patients in CHRGS, type of the physician treated the patient in PHYNS and the type of insurance the patient is carrying in PAYOR. The data was given in the Bryant/Smith case 42: Hospital Charges.
ANALYSIS AND METHODOLOGY
I am doing Descriptive Statistics, Hypothesis Testing, Confidence Interval and Regression analysis; Linear and multiple.
As mentioned in the text, descriptive statistics is a science of describing the important aspects of a set of measurements (Bowerman). The measures of central tendency measures mean, median and mode. The measures of variation measures range, standard deviation and variance. The mean is sum of numbers divided by the total numbers. As explained in encyclopedia2 of the free dictionary website, the arithmetic mean is found by adding the numbers and dividing the sum by the number of numbers in the list (Farflex, Inc). This is what is most often meant by an average. The median is the middle value in a list ordered from smallest to largest (Farflex, Inc). The mode is the most frequently occurring value on the list (Farflex, Inc).
The hospital doctors are not the employees of the hospital, but they have control over certain functions such as prescribing medicines to the patients and also prescribing them the stay at the hospital for further advanced treatments (Bryant-Smith, 2003).
I’ll start my research analysis with the comparison of two insurances; managed care insurance and commercial insurance. The question being asked in the case study is,” Do charges incurred by a patient depend on the type of insurance the patient has?” [ (Bryant-Smith, 2003) ] In respect to answer the above question I have started my research with running some descriptive statistics. Here, in this research analysis, I have separated the DAYS and CHRGS by the insurance. That means the patients who carry managed care insurance and those who carry commercial insurance. Patients who carry commercial insurance are only 96 and patients who carry managed care insurance are 193. The total number of patient data that are studied here is 289.
Comparison between Managed Care Insurance and Commercial Insurance
Let’s just look into the managed Care Insurance. The mean of $2714.28, is the average charge of one day stay at the hospital when the patient has managed care insurance. This means that, those patients who have managed care insurance, pay average of $2714.28 per day. Similarly, the mean of 2.02 days means that the average stay of the patient at the hospital...