Background-Previous studies have shown that for the treatment of subarachnoid hemorrhage (SAH), outcomes are improved but costs are higher at hospitals with a high volume of admissions for SAH. Whether regionalization of care for SAH is cost-effective is unknown. Methods and Results-In a cost-utility analysis, health outcomes for patients with SAH were modeled for 2 scenarios: 1 representing the current practice in California in which most patients with SAH are treated at the closest hospital and 1 representing the regionalization of care in which patients at hospitals with Ͻ20 SAH admissions annually (low volume) would be transferred to hospitals with Ն20 SAH admissions annually (high volume). Using a Markov model, we compared net quality-adjusted life-years (QALYs) and cost per QALY. Inputs were chosen from the literature and derived from a cohort study in California. Transferring a patient with SAH from a low-to a high-volume hospital would result in a gain of 1.60 QALYs at a cost of $10 548/QALY. For transfer to result in only borderline cost-effectiveness ($50 000/QALY), differences in case fatality rates between low-and high-volume hospitals would have to be one fifth as large (2.2%) or risk of death during transfer would have to be 5 times greater (9.8%) than estimated in the base case. Conclusions-Transfer of patients with SAH from low-to high-volume hospitals appears to be cost-effective, and regionalization of care may be justified. However, current estimates of the impact of hospital volume on outcome require confirmation in more detailed cohort studies. Key Words: cost-benefit analysis Ⅲ quality of health care Ⅲ hemorrhage, subarachnoid I n several studies of complex medical conditions, hospitals with more annual admissions for those conditions have had better outcomes than hospitals with fewer admissions. 1 These findings have supported the adoption of regionalization policies in which the treatment of patients requiring specialty care is centralized at hospitals that treat a large number of those patients. Furthermore, these policies have been credited with improving outcome in conditions such as coronary artery bypass surgery. 2 Because the management of subarachnoid hemorrhage (SAH) requires a comparable delivery of complex medical and surgical care, a policy of regionalizing care by transferring SAH patients from hospitals with a low volume of admissions for SAH to hospitals with a high volume may result in better outcomes.Previous analyses have shown that patients with SAH who are admitted to hospitals with a high volume of SAH care have better outcomes than those treated at other facilities but that costs are greater. [3][4][5][6][7] Although these results might support a policy that promotes regionalization, it is uncertain whether the benefits of receiving care at a high-volume center would outweigh the costs and risks of transfer. 8 We performed a cost-utility analysis to quantify the costs and benefits of transferring a patient with SAH who arrives at a hospital with a low volume of SAH ad...