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5.3. Risk-adjusted average cost per day

The model for average cost per day (per diem rate) had a very good fit, explaining approximately 74% of the variation. The important risk factors were age – though not across all 19 age bands, level of care, the hospital group and the pre-existing conditions listed in the table below. Gender does not have a significant impact on the daily benefits paid.

Significant pre-existing conditions: average daily cost  HIV  Asthma  Bronchiectasis  Diabetes mellitus type 1  Diabetes mellitus type 2  Cardiac failure  Hyperlipidemia  Hypertension  Hypothyroidism  Chronic obstructive pulmonary disorder  Coronary artery disease  Rheumatoid arthritis  Cancer  Obesity

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Board of Healthcare Funders Industry Technical Advisory Committee

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