I. The executive summary Hospitals feel that physician has a substantial control. Looking at physician performance data to compare hospital charges with the patient’s length of stay, type of insurance, and physician involved. A sample 289 patient records were selected who had normal deliveries of babies. From those files, we obtained the number of days the patient spent in the hospital, the total expense charged to that patient, the physician code identification, and the type of insurance the patient carried. The analysis revealed that when we compare patients on managed care and commercial insurance alone, we are 95 % confident that patients with managed care does pay more than patients with commercial insurance. We are 95 % confident that physician 2 is the most expensive physician. The strongest relationship using linear regression is the relationship between hospital charges and the length of stays.
II. The introduction
I remember watching a documentary about an insurance company called Health Net and how it got started. It was by a physician who during the early 80’s made a lot of money ordering all the possible tests for his patients, from lab tests to scans, etc. Then when managed care came along he got upset with managed care telling what is standard procedure and why unneeded ordering will be covered by the patient’s insurance plan. Well now that he was losing money, he decided to that it this is where health care is going then he will go where the money is and open up his own insurance company, which is now Health Net.
Well even though manage care health insurance has stepped in, physician at the hospital still have the control over hospital cost, admitting, ordering medication, length of stay, procedure, etc. Even though physicians have this much control, they are usually not employed by the hospital but have their own medical group with