• Journal of Preventive Medicine and Public Health
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• v.11 no.1
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• pp.123-127
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• 1978

The major objective of this research is to identify those hospital characteristics that best explain cost variation among hospitals and to formulate linear models that can predict hospital costs. Specific emphasis is placed on hospital output, that is, the identification of diagnosis related patient groups (DRGs) which are medically meaningful and demonstrate similar patterns of hospital resource consumption. A casemix index is developed based on the DRGs identified. Considering the common problems encountered in previous hospital cost research, the following study requirements are estab-lished for fulfilling the objectives of this research: 1. Selection of hospitals that exercise similar medical and fiscal practices. 2. Identification of an appropriate data collection mechanism in which demographic and medical characteristics of individual patients as well as accurate and comparable cost information can be derived. 3. Development of a patient classification system in which all the patients treated in hospitals are able to be split into mutually exclusive categories with consistent and stable patterns of resource consumption. 4. Development of a cost finding mechanism through which patient groups' costs can be made comparable across hospitals. A data set of Medicare patients prepared by the Social Security Administration was selected for the study analysis. The data set contained 27,229 record abstracts of Medicare patients discharged from all but one short-term general hospital in Connecticut during the period from January 1, 1971, to December 31, 1972. Each record abstract contained demographic and diagnostic information, as well as charges for specific medical services received. The 'AUT-OGRP System' was used to generate 198 DRGs in which the entire range of Medicare patients were split into mutually exclusive categories, each of which shows a consistent and stable pattern of resource consumption. The 'Departmental Method' was used to generate cost information for the groups of Medicare patients that would be comparable across hospitals. To fulfill the study objectives, an extensive analysis was conducted in the following areas: 1. Analysis of DRGs: in which the level of resource use of each DRG was determined, the length of stay or death rate of each DRG in relation to resource use was characterized, and underlying patterns of the relationships among DRG costs were explained. 2. Exploration of resource use profiles of hospitals; in which the magnitude of differences in the resource uses or death rates incurred in the treatment of Medicare patients among the study hospitals was explored. 3. Casemix analysis; in which four types of casemix-related indices were generated, and the significance of these indices in the explanation of hospital costs was examined. 4. Formulation of linear models to predict hospital costs of Medicare patients; in which nine independent variables (i. e., casemix index, hospital size, complexity of service, teaching activity, location, casemix-adjusted death. rate index, occupancy rate, and casemix-adjusted length of stay index) were used for determining factors in hospital costs. Results from the study analysis indicated that: 1. The system of 198 DRGs for Medicare patient classification was demonstrated not only as a strong tool for determining the pattern of hospital resource utilization of Medicare patients, but also for categorizing patients by their severity of illness. 2. The wei틴fed mean total case cost (TOTC) of the study hospitals for Medicare patients during the study years was $11,27.02 with a standard deviation of $117.20. The hospital with the highest average TOTC ($1538.15) was 2.08 times more expensive than the hospital with the lowest average TOTC ($743.45). The weighted mean per diem total cost (DTOC) of the study hospitals for Medicare patients during the sutdy years was $107.98 with a standard deviation of $15.18. The hospital with the highest average DTOC ($147.23) was 1.87 times more expensive than the hospital with the lowest average DTOC ($78.49). 3. The linear models for each of the six types of hospital costs were formulated using the casemix index and the eight other hospital variables as the determinants. These models explained variance to the extent of 68.7 percent of total case cost (TOTC), 63.5 percent of room and board cost (RMC), 66.2 percent of total ancillary service cost (TANC), 66.3 percent of per diem total cost (DTOC), 56.9 percent of per diem room and board cost (DRMC), and 65.5 percent of per diem ancillary service cost (DTANC). The casemix index alone explained approximately one half of interhospital cost variation: 59.1 percent for TOTC and 44.3 percent for DTOC. Thsee results demonstrate that the casemix index is the most importand determinant of interhospital cost variation Future research and policy implications in regard to the results of this study is envisioned in the following three areas: 1. Utilization of casemix related indices in the Medicare data systems. 2. Refinement of data for hospital cost evaluation. 3. Development of a system for reimbursement and cost control in hospitals.

• Proceedings of the Korea Society for Industrial Systems Conference
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• 1998.10a
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• pp.731-740
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• 1998

This paper discusses a brcriterion approachto sequencing with time/cost trade-offs. The first problem is to minimize the total flow time and the maximum tardiness. And second is to the maximum tardiness and resource allocation costs. This approach , which produces an efficient frontier of possible schedules, has the advantage that it does not require the sequencing criteria to be measurable in the same units as the resource allocation cost. The basic single machine model is used to treat a class of problems in which the sequencing objective is to minimize the maximum completion penalty. It is further assumed that resource allocation costs can be represented by linear time/cost function.

• Proceedings of the Korea Information Processing Society Conference
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• 2011.11a
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• pp.1248-1251
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• 2011

Web Service technologies make the automation of business activities that are distributed across multiple enterprises possible. Existing extended transaction protocols typically resort to compensation actions to regain atomicity and consistency. A reservation-based transaction protocol is proposed to reduce high compensation risk. However, for a serial long running transaction processing, the resource that is reserved in the early stage may be released due to resource holding time expires. Therefore, our analysis theoretically illustrates a scheduling scheme that tries to prevent the loss of resource holding as well as gain an optimized execution plan with minimum compensation cost. In order to estimate cost of different schedules, we set up a costing model and cost metric to quantize compensation risk.

• Environmental and Resource Economics Review
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• v.9 no.3
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• pp.545-562
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• 2000

Environmental regulation affects real income distribution as well as resource allocation. The consumers' quality of life is sure to be improved by the pollution abatement, but consumers should pay part of the abatement cost through the increased prices of consumption goods they purchase. This paper computes pollution abatement costs that each of 15 income classes in Korea paid indirectly by consuming goods whose prices include the abatement cost in 1993. The distribution of pollution abatement costs among income classes turns out to be regressive as expected.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2007.11a
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• pp.809-812
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• 2007

This study suggests a methodology for organizing functions of nD CAD model which 4D object is linked with cost and resource information. And the suggested model is composed of process analysis function of plant project based on visualized scenario analysis. That is, it is possible to manage effectively not only construction schedule plan, but also resource and cost information by integrating construction management information into nD CAD object. And the suggested model can be utilized as information of a effective decision-making tool through analyzing of optimal process scenario and sharing of an analyzed information.

• Environmental and Resource Economics Review
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• v.15 no.4
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• pp.713-740
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• 2006

In this paper, we examine what factors should be considered in cost-benefit analysis of a resource-developing project as cos and benefit item. According to this study, the reduction in forest product value and the reduction in function to clean air pollution should be included as a environmental cost. However, the reduction in recreation function and function in cleaning water need not to be included. We also calculated a cost-benefit of developing project for lime mineral of A company by applying these factor just mentioned. This paper concluded that the net benefit of this project is positive and the range of the value is from 689,900million won to 1,784,000million won.

• Environmental and Resource Economics Review
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• v.18 no.1
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• pp.1-22
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• 2009

The primary purpose of ITQ (individually transferable quota) is to reduce the overcapitalization problem in the open-access fishery. It has been argued that the least cost-efficient vessels under ITQ may exit first from the fishing by selling their quotas, thereby also reducing the excess capital. The purpose of this paper is to provide a case when ITQ may prompt the exit of less cost-inefficient vessels in the presence of irreversible exit cost which is proportional to the cost-inefficiency. Real option model is adopted in order to analyze the source of hysteresis associated with fishery exit decision. By linking the interaction between vessels' adjustment costs, cost-efficiency of harvest and uncertainty of fishery return, we show that cost-inefficient vessels will not exit always first from the fishery in contrast to the conventional wisdom. Relevant policy implications is discussed.

• IE interfaces
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• v.24 no.2
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• pp.128-138
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• 2011

This research proposes a resource allocation model of Data QC (Quality Control) activities using COQ (Cost of Quality). The model has been developed based on a series of research efforts such as COQ classifications, weight determination of Data QC activities, and an aggregation approach between COQ and Data QC activities. In the first stage of this research, COQ was divided into the four typical classifications (prevention costs, appraisal costs, internal failure costs and external failure costs) through the opinions from five professionals in Data QC. In the second stage, the weights of Data QC activities were elicited from the field professionals. An aggregation model between COQ and Data QC activities has been then proposed to help the practitioners make a resource allocation strategy. DEA (Data Envelopment Analysis) was utilized for locating efficient decision points. The proposed resource allocation model has been validated using the case of Korea national defense information system. This research is unique in that it applies the concept of COQ to the data management for the first time and that it demonstrates a possible contribution to a real world case for budget allocation of national defense information.

• Environmental and Resource Economics Review
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• v.3 no.1
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• pp.107-145
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• 1993

• Environmental and Resource Economics Review
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• v.10 no.2
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• pp.259-279
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• 2001

This paper investigates the optimal ratio of the ex post cost settled in the total cost paid to the facility-operating agent and the size of compensation for demand promotion efforts made by the trustee. We have extended McAfee and McMillan(1986)'s principal-agent model by incorporating incentives for the demand promotion efforts. We show that cost reducing effort is negatively related with the ratio of the ex post cost settled in the total cost. In addition, the optimal level of demand promotion effort is determined by the size of the compensation and the ratio of the ex post cost settled. A simulation study confirms our findings from a theoretical model.