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Medical Care Research and Review
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Average Cost of VA Rehabilitation, Mental Health, and Long-Term Hospital Stays

Wei Yu

VA HSR&D Health Economics Resource Center and Stanford University

Todd H. Wagner

VA HSR&D Health Economics Resource Center and Stanford University

Shuo Chen

VA HSR&D Health Economics Resource Center

Paul G. Barnett

VA HSR&D Health Economics Resource Center and Stanford University

This article describes the development of a database for the cost of inpatient rehabilitation, mental health, and long-term care stays in the Department of Veterans Affairs from fiscal year 1998 forward. Using "bedsection," which is analogous to a hospital ward, the authors categorize inpatient services into nine categories: rehabilitation, blind rehabilitation, spinal cord injury, psychiatry, substance abuse, intermediate medicine, domiciliary, psychosocial residential rehabilitation, and nursing home. For each of the nine categories, they estimated a national and a local (i.e., medical center) average per diem cost. The nursing home average per diem costs were adjusted for case mix using patient assessment information. Encounter-level costs were then calculated by multiplying the aver-age per diem cost by the number of days of stay in the fiscal year. The national cost estimates are more reliable than the local cost estimates.

Key Words: cost • economic • expenditures • psychiatry • substance abuse • domiciliary • nursing home

Medical Care Research and Review, Vol. 60, No. 3 suppl, 40S-53S (2003)
DOI: 10.1177/1077558703256724
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