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  • Title: Obtaining estimates of marginal cost by DRG.
    Author: Bridges JM, Jacobs P.
    Journal: Healthc Financ Manage; 1986 Oct; 40(10):40-6. PubMed ID: 10311667.
    Abstract:
    Marginal cost is the additional cost incurred for an additional unit of output. The importance of healthcare organizations knowing marginal costs in a DRG environment will increase due to greater competition and falling occupancy and payment rates. A method for obtaining estimates of marginal cost by DRG has been developed. This method is relatively inexpensive to apply, requires information from general accounting records and Medicare logs, and uses linear regression analysis.
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