Analysis of Hospital Charges: Comparing Three Services in Illinois

Abstract

Hospital charges vary greatly among facilities even in those that
are within a 10 mile radius. Establishing procedure costs within a
hospital is a complicated process where many factors can be taken
into account such as overhead costs, equipment, and location.
Hospitals have their own charges for procedures that can
vary greatly within each individual hospital. Hospitals charge a
lot higher than their actual costs in order to compensate for unpaid
bills and other expenses. My research question is to what
extent do hospitals charge different rates for the same diagnoses?
The services/diagnoses being compared are heart failure,
pneumonia, and urinary tract infection. These diagnoses were
selected due to their regularity and are generally treated in a
majority of hospitals.