Cost of a Standard Hospital Stay
Cost of a standard hospital stay is an indicator that measures the relative cost-efficiency of a hospital's ability to provide acute inpatient care. This indicator compares a hospital's total acute inpatient care expenses to the number of acute inpatient weighted cases related to the inpatients that it provided care for. The result is the hospital's average full cost of treating the average acute inpatient. A high cost of a standard hospital stay indicates a relatively high cost of treating the average acute inpatient; a low cost of a standard hospital stay indicates that the cost of treating the average acute inpatient is relatively low.
The indicator is calculated by dividing the facility's total inpatient cost by its total acute inpatient weighted cases (obtained from the Discharge Abstract Database), excluding day procedures.
Unit of Analysis: An acute inpatient weighted case
The indicator is expressed as the total inpatient expenses incurred to produce a weighted case. The indicator is calculated by fiscal year.
Please note that weighted cases used in these methodologies are grouped using CMG+ 2022, CIHI’s most recent case mix grouping methodology at the time of this release.
The denominator includes total acute inpatient weighted cases (obtained from the Discharge Abstract Database), excluding day procedures.
The numerator is the total inpatient cost for the facility. The methodology for determining the total inpatient cost is found in the Cost of a Standard Hospital Stay Methodology (PDF) document.
Methodology
Name
Cost of a Standard Hospital Stay
Short/Other Names
CSHS; also known in other CIHI publications as "cost per weighted case (CPWC)"
Description
This indicator measures the ratio of a hospital's total acute inpatient care expenses to the number of acute inpatient weighted cases related to the inpatients for which the hospital provided care.
Rationale
The indicator was developed to increase cost-efficiency in hospitals.
The four factors that influence indicator results are organizational structure, components of CSHS, methodological issues and data quality.
The indicator can provide insight into the total cost to treat an average inpatient with a Resource Intensity Weight (RIW) of 1, to improve cost-efficiency.
Interpretation
Cost of a standard hospital stay is an indicator that measures the relative cost-efficiency of a hospital's ability to provide acute inpatient care. This indicator compares a hospital's total acute inpatient care expenses to the number of acute inpatient weighted cases related to the inpatients that it provided care for. The result is the hospital's average full cost of treating the average acute inpatient. A high cost of a standard hospital stay indicates a relatively high cost of treating the average acute inpatient; a low cost of a standard hospital stay indicates that the cost of treating the average acute inpatient is relatively low.
HSP Framework Dimension
Health system outputs: Efficiently delivered
Areas of Need
Getting Better
Targets/Benchmarks
Not applicable
Available Data Years
to (fiscal years)
Geographic Coverage
- Newfoundland and Labrador
- Prince Edward Island
- New Brunswick
- Nova Scotia
- Quebec
- Ontario
- Manitoba
- Saskatchewan
- Alberta
- British Columbia
- Yukon
- Northwest Territories
Reporting Level/Disaggregation
- National
- Province/Territory
- Region
- Facility
- Others: This indicator is calculated at the hospital level and aggregated to the regional, provincial/territorial and national levels.
Indicator Results
Update Frequency
Every year
Latest Results Update Date
Updates
Uses CMG+ Methodology 2022
Description
The indicator is calculated by dividing the facility's total inpatient cost by its total acute inpatient weighted cases (obtained from the Discharge Abstract Database), excluding day procedures.
Unit of Analysis: An acute inpatient weighted case
The indicator is expressed as the total inpatient expenses incurred to produce a weighted case. The indicator is calculated by fiscal year.
Please note that weighted cases used in these methodologies are grouped using CMG+ 2022, CIHI’s most recent case mix grouping methodology at the time of this release.
Type of Measurement
Ratio
Denominator
Description:
The denominator includes total acute inpatient weighted cases (obtained from the Discharge Abstract Database), excluding day procedures.
Exclusions:
Day procedures
Numerator
Description:
The numerator is the total inpatient cost for the facility. The methodology for determining the total inpatient cost is found in the Cost of a Standard Hospital Stay Methodology (PDF) document.
Method of Adjustment
The range of acceptable values is 1st quartile (25th percentile) − 1.5 × IQR to 3rd quartile (75th percentile) + 1.5 × IQR, where IQR stands for the interquartile range. Values outside of this range are removed from regional, provincial/territorial and national averages.
Adjustment Applied
Covariates used in risk adjustment:
See Cost of a Standard Hospital Stay Methodology (PDF) document for the methodology for determining total inpatient expense.
Geographic Assignment
Place of service
Data Sources
- CMDB
- DAD
Caveats and Limitations
This indicator does not account for variances in labour rates across jurisdictions, which decreases comparability across jurisdictions.
Trending Issues
Not applicable
References
Not applicable
How to cite:
Canadian Institute for Health Information. Cost of a Standard Hospital Stay. Accessed April 25, 2025.
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Comments
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