Background. The ownership, location, and teaching status of hospitals affec
t their missions, policies, finances, and operations.
Objective. This study assesses the relationship of hospital ownership, loca
tion, and teaching status with charges and length of stay for children with
asthma, the most common reason for pediatric admission after birth.
Methods. All 28 545 complete records of patients less than or equal to 18 y
ears of age with the principal diagnosis asthma in 1994 were extracted from
the Healthcare Cost and Utilization Project Nationwide Inpatient Sample, p
roviding a stratified sample of 735 nonfederal, acute-care hospitals In 17
states. Multiple regression analysis on log transformed data was used to ca
lculate mean total charges and average length of stay (ALOS) after adjustin
g for illness severity and mortality risk (four All Patient Refined-Diagnos
is Related Group classes based on secondary diagnoses and procedures); paye
r (Medicaid, private, uninsured, other); patient age, sex, income (four cat
egories based on ZIP code of residence); state; bed size (three categories
varying by location); hospital ownership; location; teaching status; and ad
mission month.
Results. Asthma severity did not differ significantly by hospital location
or teaching status. Nonprofit hospitals treated a slightly higher proportio
n of children with major or extreme severity asthma than either public or f
or-profit hospitals. Urban teaching hospitals treated more children with as
thma who lived in low-income neighborhoods, were uninsured, or received Med
icaid coverage than urban nonteaching hospitals. For-profit hospitals admit
ted fewer children with asthma from low-income areas than did public hospit
als. The ALOS was 2.5 days and did not differ significantly by hospital own
ership, location, or teaching status. However, the mean total charges, afte
r adjusting for all other significant covariates, was higher at for-profit
($4203) than at nonprofit ($3640) or public hospitals ($3620). Average char
ges also were higher at urban teaching ($4230) and lower at rural instituti
ons ($2910) compared with urban nonteaching hospitals ($3424).
Conclusions. Despite similar ALOS, mean charges for childhood asthma varied
significantly by hospital ownership, location, and teaching status. Implic
ations. Additional clinical and outpatient data are needed to study variati
ons in quality of care by hospital characteristics. With the proliferation
of investor-owned hospitals, both the reasons for and the impact of higher
average charges at for-profit institutions require additional investigation
With the expanding needs of the medically underserved, socially just polic
ies are required for financing hospitals that care for a disproportionate s
hare of economically disadvantaged children.