The following is a graph of hip replacement surgery costs acrossfour hospitals in a given state from the state’s All Payer ClaimsDatabase. As part of preparing for moving to an alternative paymentmodel such as an ACO, hospitals need to understand why their costsmay be higher than others. From a systems perspective, identify atleast three questions that should be asked to help determine thecause of the variation: Hospital Average Cost for HipReplacement
A $21,000
B $32,000
C $24,500
D $22,225
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