Healthcare : What do you think accounts for the difference in costs between the two hospitals?

Healthcare

Dr. Mallory practices at your hospital and your competitor. Presented below are data for DRG 209 (Major Joint and Limb Reattachments, Lower Extremity) that reflect practice patterns for Dr. Mallory at the two hospitals.

Your Hospital         Competitor
Discharges                                    150                           90
Average Age                                 68                              50
Length of Stay                             4.4                             4.1
Average Cost                              $10,550                      $7,108
Nursing Cost                              $1,998                        $1,208
Ancillary Cost                            $8,552                        $5,900
Operating Room Cost              $2405                         $2,158
Lab Cost                                     $836                            $484
Radiology Cost                          $277                            $191
Medical Supplies Cost             $3,022                        $1,690
Pharmacy Cost                          $857                            $335
Other Costs                                $1,156                         $1,042

What do you think accounts for the difference in costs between the two hospitals?