A method for Allocation of Resources to US Army, US Air Force, and US Navy Medical Departments Based on Inpatient Case Complexity Measures




Austin, Velda R.

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This report presents the results of employing Diagnosis Related Groups (DRGs) to Department of Defense data for the period FY 1985. Inpatient resources were allocated using three methods, each based on the application of DRGs and case complexity as defined by the US Department of Health and Human Services (HHS), Health Care Financing Administration (HCFA) relative weight values. More hospitals would have gained resources under case complexity allocations than those that would have lost resources. The hospitals that would have lost money would have been in critical situations, since the losses were substantial in most cases. Based on all of Department of Defense case complexity, the Army would have lost resources, the Air Force would have gained about one-third of those resources and the Navy two-thirds. The study concludes with the recommendation that implementation of case mix measures for allocation of resources be phased in, that biometric and cost data systems be made more compatible, and that mechanisms for collecting cost data on a case level basis be a high priority in medical system planning.



United States Armed Forces, medical care, diagnosis related groups, appropriations, expenditures


Austin, V.R. (1987). A method for allocation of resources to US Army, US Air Force, and US Navy medical departments based on inpatient case complexity measures (Unpublished thesis). Southwest Texas State University, San Marcos, Texas.


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