# Statistical Analysis of Hospital Patient Data

The question file for the project was as follows:

Hospital Charges
Data:
The data set Hospital.xls includes 289 patient records for normal deliveries of babies.
The variables are as follows:
DAYS = days in the hospital (Column A)
CHRGS = total expenses charged to the patient (Column B)
PHYS = code identifying the physician (Column C)
PAYOR = type of insurance; = 1 for managed care; = 0 for commercial insurance (Column D)
Situation:
Put yourself in the position of a hospital administrator. Several members of your staff have raised concerns about equitable treatment of patients. Accordingly, you have decided to examine whether the type of insurance coverage influences a patient’s overall and daily charges.
Statistical Analysis:
Compute the following descriptive statistics:
? the proportion of the patients with managed care insurance
? the average time spent in the hospital for a normal delivery
? the mean charges for a normal delivery
? the mean daily charges for a normal delivery
Now consider two patient populations: those with managed care insurance and those with commercial insurance.
On average, do the total charges for these two groups differ?
On average, do the daily charges for these two groups differ?
Conduct a hypothesis test to address each of these questions. Do not omit any observations. In other words, do not worry about outliers.
Technical Report:
In your technical report, present a table with descriptive statistics.
Also present each hypothesis test. In particular, indicate the null and alternative hypotheses and the t-statistic for each test. Label the t-statistics as follows: *** if the p-value < 0.01, ** if the p-value < .05, or * if the p-value < 0.10 (or no stars if the p-value is large).
2
Memo:
Write a memo to your staff.
The audience of the memo includes members of your staff who are not statisticians but who are familiar with the following concepts: mean, standard deviation, and statistical significance. Given their busy schedules, the memo should be able to stand alone; i.e., a busy staff member can understand the gist of your analysis without reading the technical report.
The structure of the memo should be as follows:
TO: Audience
FROM: Author’s Name and Title
RE: Subject of Memo
DATE: Date
The body of the memo should be single-spaced with an extra space between paragraphs. The memo should fit on one page. Attach the technical report to the memo (i.e., present the memo before the technical report).
The memo should include the following content (in paragraph form):
? relevant background information (one or two sentence placing the memo in context)
? motivation (one or two sentences explaining why the analysis is important)
? description of the sample including the sampled population and the sample size
? discussion of select descriptive statistics (a few sentences painting a picture of the sample and one sentence referring the interested reader to the table of descriptive statistics presented in the technical report)
? explanation of the findings of the hypothesis test (including one sentence referring the interested reader to the technical report for more details)
? implications for hospital policy
? limitations of the analysis
The scoring rubric will be posted.
The original case study was published by Bryant and Smith in their book entitled Practical Data Analysis.

The first part of the solution is reproduced below. Please purchase the full solutions if you wish to use them.

TO: Staff Members
RE: Analysis to investigate concerns about equitable treatment of patients.
DATE: 1/12/2011
Background:
Our staff members have raised several concerns about equitable treatment of patients recently. In order to address this concern administration has decided to examine whether the type of insurance coverage influences a patient’s overall and daily charges.
Nature of Data:

In order to look into this issue, we have extracted 289 patients who had normal deliveries of babies. We are interested in the below mentioned variables
DAYS = days in the hospital
CHRGS = total expenses charged to the patient
PHYS = code identifying the physician
PAYOR = type of insurance (1-Managed care; 0- commercial insurance)
Statistical Analysis:
Out of 289 patients, 67% (193) are from Managed care and 33% (96) from Commercial Insurance. From our observations, we found that
Average time spent in hospital 2.207612
Mean charges for normal delivery 2882.678
Mean Daily charges for normal delivery(CHRGS/DAYS) 1382.915

From our hypothesis testing (refer Technical Report) we found that
i) There is no significant difference in average total charges between two groups.
ii) There is no significant difference in average daily charges between two groups.

Subjects: Statistics ->Analysis
Topic: Statistical Analysis of Hospital Patient Data
Level: College / University
Tags:

### Statistical Analysis, report, Hospital Patient Data

Price\$4.95

Math Genius
 Frederick Burke Member Since: March 2003 Customer Rating: 94.7% Projects Completed: 795 Total Earnings: *Private* +1 Ratings from clients: 115
Project Details
Subjects: Statistics ->Analysis
Topic: Statistical Analysis of Hospital Patient Data
Level: College / University
Tags:

## Statistical Analysis, report, Hospital Patient Data

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