ARE GENERAL-PRACTITIONER HOSPITALS COST-SAVING - EVIDENCE FROM A RURAL AREA OF NORWAY

Objective. We aimed to determine whether general practitioner GP hospi tals, compared with alternative modes of health care, are cost-saving. Methods. Based on a study of admissions (n = 415) to fifteen GP hospi tals in the Finnmark county of Norway during 8 weeks in 1992, a full 1 -year patient throughput in GP hospitals was estimated. The alternativ e modes of care (general hospital, nursing home or home care) were bas ed on assessments by the GPs handling the individual patients. The fun ds transferred to finance GP hospitals were taken as the cost of GP ho spitals, while the cost of alternative care was based on municipality and hospital accounts, and standard charges for patient transport. Res ults. The estimated total annual operating cost of GP hospitals was 32 .2 million NOK (10 NOK = pound 1) while the cost of alternative care w as in total 35.9 million NOK. Sensitivity analyses, under a range of a ssumptions, indicate that GP care in hospitals incurs the lowest costs to society. Conclusion. GP hospitals are likely to provide health car e at lower costs than alternative modes of care.