The authors measured the comorbid effect of alcohol and other drug (AO
D) problems on medical surgical, and psychiatric inpatient charges and
length of stay (LOS) in an urban hospital by use of retrospective stu
dy of hospital clinical computer data comparing AOD-affected patients
with non-AOD-affected patients in terms of cost, diagnostic, demograph
ic, and utilization variables (N = 14,768). Patients were men and wome
n with and without comorbid history of AOD problems, admitted for medi
cal, surgical, and psychiatric reasons. For 10 of the 20 most frequent
Diagnosis-Related Groups (DRGs), total hospital charges and LOS were
significantly lower inpatients with comorbid AOD problems (P < 0.001).
Overall, for the most frequent 20 DRGs, total charges and LOS remaine
d significantly lower for the AOD group. Most physicians believed that
AOD-affected patients were often less ill than non-AOD patients withi
n the same DRG. Alcohol/drug-affected patients had robustly lower cost
s and LOS. Fragmentation of psychosocial costs and addiction treatment
from general health care and the fee-for-service DRG system appear to
financially reward acute-care hospitals to repeatedly treat secondary
AOD sequelae without Providing any apparent incentives for the treatm
ent of the primary alcohol/drug condition itself.