Measuring Hospital Quality

How does one measure hospital quality? Quality occurs along multiple dimensions. Thus, to summarize overall quality, one must create a weighting scheme to compete the distinct quality measures in a single measure. In most cases, quality measures should also account for differences in patient case mix. Hospitals should not be punished with lower quality scores…

PQRS in 2013

Some background: Created in March 2007, the PQRI established a financial incentive for eligible healthcare professionals to participate in a voluntary quality reporting program. By reporting on a minimum of 3 measures on a specified group of patients, a physician can earn a bonus payment of 0.5% on all of their Medicare billing for 2012.…

Medicare Payments Cut for Low-Quality Hospitals

In the past, Medicare basically paid hospitals the same amount for every type of admission regardless of quality.  Of course, Medicare did adjust payments to hospitals based on the their cost of labor (hospital wage index adjustment), share of low-income patients (disproportionate share hospital payment), and number of medical school residents (indirect medical education payment),…

Do Surgeons Strategically Select Patients to Improve Scores on Health Care Quality Report Cards?

Do report cards improve quality or simply incentivize hospitals and physicians to stratetically choose which patients to treat? To answer this question, a paper by Chen and Meinecke (2012) examine coronary artery bypass graft (CABG) report cards introduced in Pennsylvania.  Report cards can improve quality but they can also induce selection behavior not only by…

How to Measure Physician Efficiency

Many payers are moving towards value-based purchasing programs that reward efficient physicians with additional payments and punish inefficient physicians with decreased payments.  Medicare’s Quality and Resource Use Reports (QRUR) are a step in this direction. However, summarizing overall physician quality is a difficult prospect.  First, the types of cases each physician treats is not homogeneous,…

Measuring Hospital Efficiency

Medicare recently released the Medicare Spending per Beneficiary (MSPB) measure on Hospital Compare. This measure includes all payments to doctors, hospitals or other facilities for services provided to a patient during the three days before the hospital stay, during the stay, and during the 30 days after discharge from the hospital. Kaiser Health news provides…