Australian Health Review Australian Health Review Society
Journal of the Australian Healthcare & Hospitals Association

An assessment of the effects of casemix funding on hospital utilisation: A Northern Territory perspective

Jianguo Xiao, Andy Lee and Siva Ram Vemuri

Australian Health Review 23(1) 122 - 136
Published: 2000


This article is concerned with the methodological issues of assessing the effects of casemixfunding on hospital utilisation. Time-series analysis and intervention analysis are proposedto ascertain the effects. It was found there had been a decline in average length of stay andnumber of bed-days, an increase in weighted separations for teaching and non-teachinghospitals, and no apparent increase of costliness in terms of a comprehensive casemix index.No evidence of decline in quality of care can be established in terms of readmission rates.The long-term effects of casemix funding, and specific issues in terms of the funding modelused, patients and cost shifting between hospital services and community health services,remain to be studied.

© AHHA 2000

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