OBJECTIVES. The authors examine to what extent comorbidities contribut
e to differences in patient hospital costs. METHODS. The medical recor
d data for this study were collected from 15 metropolitan Boston hospi
tals for 4,439 patients admitted mostly in 1985 for one of eight commo
n conditions. Massachusetts hospital discharge abstract data for 1985
and 1993 also were used. Comorbidities were identified from the medica
l record for the 15-hospital data set and from discharge abstracts for
all cases. Stepwise regression models were used to develop comorbidit
y scores. RESULTS. Across all conditions, the medical record-based com
orbidity score increased the R(2) value from .42 in a model with diagn
osis-related groups alone to .50. In condition-specific analyses, incl
uding the comorbidity score increased the R(2) by more than 50% in six
of eight conditions, and was more important than several other dimens
ions of severity in explaining condition-specific costs. When comorbid
ities were determined from discharge abstract data rather than medical
records, only approximately half as much comorbidity was found. Also,
there was much less explanatory power: the all-condition R(2) only we
nt from .42 to .44. However, a comorbidity score developed from statew
ide hospital discharge abstract data was more useful in explaining var
iations in charges in the eight condition-specific analyses conducted
on patients 65 years and older. CONCLUSIONS. Comorbidities, particular
ly when determined from the medical record, are important determinants
of patient costs.