The Data Advantage Hospital Value Index™ is the first comprehensive scorecard measuring the relative value of care provided by U.S. hospitals. This new measure studied more than 1,500 general acute-care hospitals in America’s 100 largest cities, serving approximately 180 million consumers.
This new measure, the Data Advantage Hospital Value Index™ , was developed in anticipation of the Centers for Medicare and Medicaid Services’ (CMS) Value-Based Purchasing initiative, which will financially reward a hospital based on the value of its care beginning next year. It also recognizes the growing influence of consumers shopping for the best hospital values in their communities.
The Hospital Value Index™ defines a hospital’s value by its success in four critical areas:
- Quality of its care, including core processes and patient safety;
- Efficiency of its care and affordability, including the prices it charges;
- Experience encountered by its patients as measured by patient satisfaction; and
- Comprehensive reputation of a hospital as measured by local public perception.
For a complete list of findings, market-by-market hospital scores, and more information on the Hospital Value Index™, please visit www.hospitalvalueindex.com.
#1 by John R. Morrow on September 17th, 2009
Hospitals set their own prices (charges) for services ranging from lab tests, imaging studies, emergency department visits, operating room use, etc. The Hospital Value Index™ calculations assume that relatively low charges (whether gross or net) contribute to higher value.
One third (33.3 %) of the Affordability Component score is based on a hospital’s performance relative to other hospitals on list prices for a market basket of 100 assorted outpatient services, ranging from labs to x-rays to common and frequent procedures. The market basket services were chosen as those that likely could be provided by any study hospital. Examples of services included in the market basket are chest x-rays, basic metabolic panels, biopsy for skin lesion, diagnostic colonoscopy, bone marrow biopsy, and laparoscopic cholecystectomy. These represent a market basket that form the Outpatient Affordability Index.
One-third (33.3 %) of the Affordability Component score is based upon a hospital’s performance relative to other hospitals on average charge per discharge for a market basket of 18 of the Top 20 most common MS-DRGs.
One-third (33.3 %) of the Affordability Component score is based upon a hospital’s performance relative to other hospitals on case-mix adjusted net patient revenue per adjusted patient-day. This number represents allpayer, all hospital care, inpatient and outpatient, and the aggregate net patient revenue (adjusted for discounts and contractual allowances) generated from that care relative to the volume of care provided. This metric is commonly used by health plans to benchmark comparative price and affordability irrespective of hospital-specific pricing policies.
The hospitals were all scored and then ranked in order of their Affordability, and Hospital Value Index™ points were awarded based on the relative affordability.
#2 by Mark on September 17th, 2009
How is the price of the services integrated into the results?