Case weight derivation, case-weighted payment and casemix cost comparison function
w_g = c_bar_g / c_bar; P_i = w_g * B * a_h; P_i = NWAU_i * NEP; R_h = C_h / (CM_h * c_bar)
Maps the mean costs of patient classification groups, such as diagnosis-related groups (DRGs), to relative case weights, and uses the weights to price hospital cases and to compare hospital costs for a given casemix. The records follow the notation of the Case Weight article, where w_g is the weight of group g and c_bar the mean cost per case across all groups, so a weight of 1 marks a group whose cases cost the same as the average case.
Relative cost weight of a case group from group mean costs
c_bar = sum_(k=1)^K [n_k * c_bar_k] / sum_(k=1)^K [n_k]; w_g = c_bar_g / c_bar
Case-weighted payment per hospital case
P_i = w_g * B * a_h
Casemix-adjusted cost ratio of a hospital
CM_h = sum_(g=1)^G [n_hg * w_g]; R_h = C_h / (CM_h * c_bar)
Price of an Australian admitted acute episode from national weighted activity units
NWAU_i = PW_g * A_paed * (1 + A_res + A_ind + A_rt + A_dia) * (1 + A_treat) + A_icu * h_i; P_i = NWAU_i * NEP