[Background] The diagnosis procedure combination (DPC) is a method for classifying patients into combined types of medical care associated with disease codes of ICD-10. The standardized clinical information by the DPC is quite valuable for evaluating medical costs and the quality of care and sharing the information among medical professions, policy makers, owners of medical facilities, and researchers. Lately, numbers of studies have been conducted using the DPC data. However, there are still few studies to examine the validity of the DPC system.
[Objective] The main objective of this study is to evaluate the validity of the DPC data base for hospital management. For this purpose, we will test an empirical hypothesis such that length of DPC experience influence the efficiency improvement of resource allocation for in-hospital care.
[Methods] This study focuses on patients who are diagnosed with “gastric cancer”, “appendicitis”, “gallbladder disease (including gallstones)” ,and “hernia”. For each diagnosis group, we estimate the effects of length of DPC experience on the length of hospital stay and medical costs, which would imply the resource allocation within a medical facility. In order to control for the effect of laparoscopic surgery on outcomes we will adjust the possible bias caused by the endogeneity of choosing high-tech treatment, using an instrumental variable method.
[Results] For all diseases, both the average length of hospital stay and costs are the lowest in hospitals which have longer DPC experience. Then, the mean length of hospital stay and medical costs tend to be longer and higher in medical facilities which have shorter DPC experience.
[Conclusion] Our results show that the longer DPC experience would improve the efficiency of resource allocation. A possible policy implication is that hospital management will be improved not simply because medical facilities utilize the DPC data, but because they have been activated as DPC hospitals for several years and they have a certain length of DPC experience.
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