Payment policy for chemotherapy in public hospitals: a case for splitting DRG 780/R63Z.
OBJECTIVE
To assess the appropriateness of the current way chemotherapy is classified in the Australian casemix classification system.


METHODS
Secondary analysis of patient-level data for all cases of DRG 780 separated from Victorian hospitals with clinical costing systems in the years 1994/95, 1995/96 and 1996/97 using the Chi-squared Automatic Interaction Detector (CHAID) option of Answer Tree Version 2.0.


RESULTS
Different cancers have different costs. There is a significant difference (F=316.8, df=4, 11091, p=0.00) between the cost of colon cancer (mean=$289), breast cancer (mean=$481), lymphatic cancer (mean=$605), leukemia (mean=$1,118) and other cancers (mean=$512). The differences are sufficiently large that they meet the statistical criteria for splitting a DRG.


CONCLUSIONS
Application of nationally agreed criteria for creation of Diagnosis Related Groups suggests that the existing DRG 780 should be split into five groups: colon, breast and lymphatic cancers, leukemia and a residual 'other cancers' category. The new groups increase the explanation of variation in costs (about a 10% reduction in variance).


CONCLUSIONS
It is no longer valid for casemix development to be based on length of stay as a proxy for resource utilisation, especially for DRGs that are primarily same day.
Duckett
S J
SJ
School of Public Health, La Trobe University, Victoria. s.duckett@latrobe.edu.au
Stow
S
S
D000970:Antineoplastic Agents / Q000191:economics* / Q000627:therapeutic use; D016009:Chi-Square Distribution; D003361:Cost Allocation; D003953:Diagnosis-Related Groups / Q000145:classification* / Q000191:economics; D016527:Drug Costs; D017048:Health Care Costs; D006291:Health Policy; D006779:Hospitals, Public / Q000191:economics*; D006801:Humans; D007902:Length of Stay; D009369:Neoplasms / Q000145:classification* / Q000188:drug therapy / Q000191:economics; D012051:Reimbursement Mechanisms; D014739:Victoria
D000970:Antineoplastic Agents