The Effect of Ownership on Length of Stay and Total Charges for Hospital Inpatient Substance Abuse Treatment

Abstract

The purpose of this study is to determine if hospital ownership has an effect on economic factors and quality outcomes related to inpatient substance abuse treatment. The study examines these factors through analyzing the effect of ownership on length of stay and total revenue charges for inpatient substance abuse treatment provided at hospitals in Florida. Hospital inpatient data were collected from the Florida Agency for Health Care Administration. Two multiple regression models were used to compare the effect of ownership, along with other patient factors, on length of stay and total revenue charges. Overall, three key conclusions were made. First, for-profit hospitals charged substance abuse patients more for inpatient care than non-profit hospitals. Second, patients treated in for-profit general hospitals stayed fewer days and received higher charges than patients treated in non-profit general hospitals. Lastly, Medicare patients stayed more days and received higher charges than patients with other types of payers in both facilities, but this trend was stronger in for-profit hospitals. This study concludes that, while hospital ownership results in economic differences in care, the measure of quality of care is inconclusive. It is important that further information is collected to understand the difference in the quality of care provided at non-profit and for-profit hospitals.