Purpose - Clarifying one of the biggest public Hospital Costs and incomes according to patients’ case mix. It leads to prepare financial information about pubic medical tariffs and hospital operational costs. Research design, data, and methodology - This study calculates the costs both, with and without taking into account capital costs. This holds for comparison of hoteling based on case mix in all medical procedures. The checklists were reviewed and filled by reviewing accounting documents of the hospital, warehouse exclusion list, and daily books of laundry and CSR. Data was analyzed descriptively by using Excel. Results - In both cases, the hospital is losing in terms of hoteling. Because the buildings and equipment are new, this loss is not tangible. However, this will be revealed when costs of reconstruction and replacement of equipment. The loss rate per day of hospitalization was 569318 Rials for Coronary Care Unit (CCU), 528171 Rials for Post Intensive Care Unit (Post ICU), 474570 Rials for ICU, 233183 Rials for Post CCU and 204803 for Surgical ward. Conclusions - Income of hoteling was lower than its costs. ANOVA showed a strong relationship between case mix and hospital costs as well as case mix and its income. This suggests that optimal case mix can minimize the costs and maximize income.

• Hamed Rahimpour Langroudi(Department of Strategic Studies, Petroleum Industry Health Organization, No. 26, Behafarin St., Karimkhanblvd, Tehran, Iran.)
• Mohammad Jamil Kakhani(Executive Manager, Jam Hospital, Fajr St., Motahari St., Tehran, Iran.)
• Roozbeh Hojabri(Head of Statistics and Information Affairs, Petroleum Industry Health Organization, No. 26, Behafarin St., Karimkhanblvd, Tehran, Iran.)