| X̅gn | = | weighted arithmetic mean cost per case for DRGg for n hospitals (inter-hospital mean nursing cost per case); |
| Nig | = | number of cases in DRGg for hospitals 1 to N; |
| X̅ig | = | mean cost per case in DRGg for hospitals 1 to N; |
| Ngn | = | total number of cases in DRGg for n hospitals. |
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