Dr. Mallory practices at your hospital and your competitor. Presented below are data for DRG 209 (Major Joint and Limb Reattachments, Lower Extremity) that reflect practice patterns for Dr. Mallory at the two hospitals.

Your Hospital Competitor
Discharges 150 90
Average Age 68 50
Length of Stay 4.4 4.1
Average Cost $10,550 $7,108
Nursing Cost $1,998 $1,208
Ancillary Cost $8,552 $5,900
Operating Room Cost $2405 $2,158
Lab Cost $836 $484
Radiology Cost $277 $191
Medical Supplies Cost $3,022 $1,690
Pharmacy Cost $857 $335
Other Costs $1,156 $1,042

What do you think accounts for the difference in costs between the two hospitals?Explain