In workers’ compensation cases, a criterion for determining liability, or whether a claim is or is not compensable. AOE refers to how the activity of work led to the injury in question. It is one of the legal tests that must be met for a medical condition to be covered by workers’ compensation insurance. COE refers to how the activity the employee was engaged in at the time of injury must grow out, or be incidental to, the employment.

In the Medicare program, the average number of days for a patient’s DRG inpatient hospital stay. This figure is used to determine payment for outlier cases and to predict occupancy rates. To obtain this number, use this formula: total number of patient days divided by (÷) the total number of hospital admissions for a specific time period. It is also known as average length of stay (ALOS).