Date of Conferral

6-13-2024

Date of Award

6-13-2024

Degree

Doctor of Healthcare Administration (D.H.A.)

School

Health Services

Advisor

Dr. David Bull

Abstract

Walden University September 2023 The purpose of this quantitative descriptive correlational study was to investigate the financial implications of Length of Stay (LOS) and Readmission Rates (RR) on the cost of patient care (C) and to determine the extent of the relationship between the variables in Texas, United States. A secondary dataset from the Texas hospital data collection database of 920 hospitals was used, where 65 hospitals were included in the study following a G*Power analysis. Pearson correlation and regression analyses were conducted to explore the relationship between the variables at a 95% confidence interval. The findings showed a significant negative relationship between average length of stay (LOS) and average total cost (C), with Spearman’s rho, r = -.291, p = .019. In addition, the results showed no statistically significant relationship between readmission rate (RR) and average total cost (C), with Spearman’s rho, r = .067, p = .594. A multiple regression analysis showed that the regression model was not statistically significant, F (2,62) = 1.591, p = .212; hence, there was no need to interpret the coefficients. Thus, the LOS and RR do not necessarily predict the cost of care. The study implicates that there is a need for further research to evaluate factors affecting the cost of care in Texas hospitals since LOS and RR are not major predictors. The absence of a significant relationship between LOS, RR, and C does not necessarily indicate inefficiency or lack of effectiveness. Future research should consider the mediating and moderating factors that impact the relationship between LOS, RR, and C to understand their association better and inform strategies that healthcare facilities can employ to improve healthcare quality and reduce costs.

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