The Indirect Costs of Graduate Medical Education

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Abstract
This analysis, aimed at measuring the indirect costs associated with hospital teaching programs, found that university teaching hospitals were 33 per cent more costly than nonteaching hospitals with respect to direct hospital costs (excluding overhead) after adjustment for differences in case mix using diagnosis-related groups (DRGs). This study found major teaching hospitals (not administered by a university) to be 18 per cent and minor teaching hospitals 9 per cent more costly than nonteaching hospitals. These cost differentials were due primarily to the greater intensity of services provided in teaching settings rather than to the cost per unit of service.

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