Are Teaching Hospitals Worth the Extra Cost?

Abstract

Everyone knows that teaching hospitals have greater expenses and charge more for their services than do nonteaching hospitals. In 1981, for example, the average cost of care, per adjusted admission, in the more than 300 major teaching hospitals belonging to the Council of Teaching Hospitals was approximately twice that in the nonteaching hospitals.¹ Several reasons are usually given for this striking difference. Teaching hospitals must bear the direct and indirect costs of their multiple teaching programs. They also do a certain amount of clinical research that is not fully reimbursed through outside grants and contracts. Their patients tend to be . . .