Archive for category Value-Based Purchasing

Best in Value™ Hospitals Recognized for Affordability and Efficiency

Merit Award names hospitals nationwide; NY, PA & AL top the list 

NASHVILLE, Tenn. –Today, Data Advantage, LLC announced the names of hospitals receiving the Best in
Value: Superior Affordability & Efficiency Merit Award™ from the 2009-2010 Hospital Value Index™, the
first and only national study on U.S. hospitals and the value of care they provide. 

The Superior Affordability & Efficiency Merit Award™ showcases hospitals that deliver affordable, high
quality care to their communities with high patient satisfaction. Hospitals in economically diverse
markets, such as New York, Pennsylvania and Alabama, indicate success on all fronts and dominate this
Merit Award list. Interestingly, no hospitals from California made the list. 

“The American Hospital Association recently revealed that profitability at community hospitals is
decreasing,” said Hal Andrews, CEO of Data Advantage. “Even so, hospitals like the Affordability &
Efficiency Merit Award winners are able to prevail in an economic downturn by operating their hospitals
efficiently. In doing so, this group is able to provide their patient communities with affordable
healthcare.” 

“With upcoming health reform legislation and the insolvency of the Medicare trust fund in 2017,
hospitals can expect continuous pressures on reimbursement. It will be increasingly important for
hospitals to deliver high-quality care in an efficient manner,” added Andrews. 

The Hospital Value Index™ is an independent analysis of each hospital’s performance in the categories
of: quality, affordability & efficiency and patient satisfaction. Out of the more than 4,500 hospitals that
were analyzed, 75 received the Superior Affordability & Efficiency Merit Award for achieving high marks
in the affordability & efficiency category. 

In order to receive the award, hospitals were first considered as Best in Value™, or in the top 25 percent
of all hospitals when considering quality and patient satisfaction. The top 10 percent of this group were
then recognized in the affordability & efficiency category in order to receive the Superior Affordability &
Efficiency Merit Award™. 

“The Affordability & Efficiency Merit Award™ hospitals exhibit some remarkable results,” said John R.
Morrow a founder of the Hospital Value Index™ study. “These hospitals improved their scores on
average by 18.58% representing the top ten percent of all hospitals in the study, while those in the
bottom ten percent on average saw a decrease of 23.51% in their affordability and efficiency scores.”
“These improvements reflect both a reduction of costs and a decrease in prices charged for the market
basket of services. This reveals a progressive and enhanced value proposition that these hospitals
deliver to their local communities every day,” Morrow added. 

In alphabetical order, the Superior Affordability and Efficiency Merit Award recipients from the 2009-
2010 Hospital Value Index™ study are: 

• ACMH Hospital – Kittanning, PA
• Alle-Kiski Medical Center – Natrona Heights, PA
• Anson General Hospital – Anson, TX
• Arkansas Methodist Medical Center –Paragould, AR
• Arnot Ogden Medical Center – Elmira, NY
• Bertrand Chaffee Hospital – Springville, NY
• Billings Clinic – Billings, MT
• Bourbon Community Hospital – Paris, KY
• Bristow Medical Center – Bristow, OK
• Brooks Memorial Hospital – Dunkirk, NY
• Butler Memorial Hospital – Butler, PA
• Canton-Potsdam Hospital – Potsdam, NY
• Claxton-Hepburn Medical Center – Ogdensburg, NY
• Clifton Springs Hospital and Clinic – Clifton Springs, NY
• Community Hospital – Tallassee, AL
• Decatur General Hospital – Decatur, AL
• DuBois Regional Medical Center – DuBois, PA
• East Texas Medical Center Crockett – Crockett, TX
• Five Rivers Medical Center – Pocahontas, AR
• Gilmore Memorial Hospital – Amory, MS
• Graham Regional Medical Center – Graham, TX
• Greenbrier Valley Medical Center – Ronceverte, WV
• Hamilton General Hospital – Hamilton, TX
• Helen Keller Memorial Hospital – Sheffield, AL
• Heritage Valley Beaver – Beaver, PA
• Heritage Valley Sewickley – Sewickley, PA
• Highland Hospital – Rochester, NY
• Iberia General Hospital and Medical Center – New Iberia, LA
• Ira Davenport Memorial Hospital – Bath, NY
• Jameson Memorial Hospital – New Castle, PA
• Jamestown Hospital – Jamestown, ND
• Jellico Community Hospital – Jellico, TN
• Jennings American Legion Hospital – Jennings, LA
• Jones Memorial Hospital – Wellsville, NY
• Kenmore Mercy Hospital – Buffalo, NY
• Lakeland Community Hospital – Haleyville, AL
• Lakeside Memorial Hospital – Brockport, NY
• Livingston Regional Hospital – Livingston, TN
• Marion General Hospital – Columbia, MS
• Marshall Medical Center South – Boaz, AL
• McCullough-Hyde Memorial Hospital – Oxford, OH
• Medcenter One – Bismarck. ND
• Mercy Hospital – Buffalo, NY
• Meritcare Health System – Fargo, ND
• Minden Medical Center Inc – Minden, LA
• Monroe County Hospital – Monroeville, AL
• Morehead Memorial Hospital – Eden, NC
• Nason Hospital – Roaring Spring, PA
• Nicholas H. Noyes Memorial Hospital – Dansville, NY
• Northern Hospital of Surry County – Mount Airy, NC
• Northwest Medical Center – Winfield, AL
• Pauls Valley General Hospital – Pauls Valley, OK
• Punxsutawney Area Hospital – Punxsutawney, PA
• Roane Medical Center – Harriman, TN
• Rochester General Hospital – Rochester, NY
• Rolling Plains Memorial Hospital – Sweetwater, TX
• Southeast Alabama Medical Center – Dothan, AL
• St. Alexius Medical Center – Bismarck, ND
• St. Bernard’s Medical Center – Jonesboro, AR
• St. Clair Memorial Hospital – Pittsburgh, PA
• St. Francis Hospital – Charleston, WV
• St. Joseph’s Hospital Yonkers –Yonkers, NY
• St. Mary’s Hospital at Amsterdam – Amsterdam, NY
• St. Mary’s Medical Center of Campbell County – La Follette, TN
• Stonewall Jackson Memorial Hospital – Weston, WV
• Takoma Regional Hospital – Greeneville, TN
• Tawas St Joseph Hospital – Tawas City, MI
• Taylor Regional Hospital – Hawkinsville, GA
• Uniontown Hospital – Uniontown, PA
• Unity Hospital of Rochester – Rochester, NY
• UPMC Bedford – Everett, PA
• Weirton Medical Center – Weirton, WV
• Wheeling Hospital – Wheeling, WV
• Williamson Memorial Hospital – Williamson, WV
• Woman’s Christian Association – Jamestown, NY
 

For more information on the Voices of Value™ and the Best in Value™ hospitals, please visit
www.HospitalValueIndex.com

Note: In order for hospitals to publicize results, including the use of this news release, hospitals must
obtain written approval from Data Advantage. To do so, please contact Araby Thornewill at 866-996-
3282.

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Hospital Value Index™ Quality Award Recipients Released

Superior Quality Merit Award recognizes 75 hospitals nationwide

NASHVILLE, Tenn. Data Advantage, LLC announced today 75 hospitals receiving a Best in Value™: Superior Quality Merit Award from the 20092010 Hospital Value Index™ the first and only national study on U.S. hospitals and the value of care they provide.

The 20092010 Hospital Value Index™is an independent analysis of each hospital’s performance in the categories of: quality, affordability & efficiency and patient satisfaction. Out of the more than 4,500 hospitals that were analyzed, 75 received the Superior Quality Merit Award for achieving high marks in the quality category.

“This group of hospitals has a proven ability to deliver high quality care, a key element in providing overall value to their communities,” said Hal Andrews, CEO of Data Advantage. “Our study suggests that hospitals that achieve outstanding scores in the area of quality will be rewarded in the new world of ValueBased Purchasing, so each of these hospitals is off to a good start.”

The quality category is analyzed using data from the Centers for Medicare and Medicaid Services (CMS) Core Measures, AHRQ Patient Safety Indicators, CMS 30day mortality scores and CMS reported hospital readmission rates. In order to receive the award, hospitals were first considered as Best in Value™ or in the top 25 percent of all hospitals in the study. The top 10 percent of this group were then ranked in the quality category in order to receive the Superior Quality Merit Award.

“The Hospital Value Index™ study found that all hospitals recognized as Best in Value™ improved their quality scores by an average of 8.14% since March 2009, while those that were not recognized as Best in Value™ saw a drop in quality by 1.1% during the same term,” said John Morrow, a founder of the Hospital Value Index™ study.

“Quality continues to improve in high value hospitals, and these Merit Award recipients are being recognized for their exceptional quality performance,” Morrow added.

In alphabetical order, the Superior Quality Merit Award recipients from the 20092010 Hospital Value Index™study are:

  • Advocate Good Samaritan Hospital (Downers Grove, IL)
  • Alegent Health Immanuel Medical Center (Omaha, NE)
  • Alegent Health Lakeside Hospital (Omaha, NE)
  • Alegent Health Mercy Hospital (Council Bluffs, IA)
  • Alegent Health Midlands Hospital (Papillion, NE)
  • Arnot Ogden Medical Center (Elmira, NY)
  • Aurora Baycare Medical Center (Green Bay, WI)
  • Ball Memorial Hospital (Muncie, IN)
  • Baylor Medical Center at Irving (Irving, TX)
  • Berger Hospital (Circleville, OH)
  • Berkshire Medical Center (Pittsfield, MA)
  • Bon Secours-Memorial Regional Medical (Mechanicsville, VA)
  • Carolinas Medical Center‐University (Charlotte, NC)
  • Centra Health (Lynchburg, VA)
  • Clara Maass Medical Center (Belleville, NJ)
  • Cleveland Clinic Florida (Fort Lauderdale, FL)
  • Community Medical Center (Toms River, NJ)
  • Cullman Regional Medical Center (Cullman, AL)
  • Delray Medical Center (Delray Beach, FL)
  • Evanston Hospital (Evanston, IL)
  • Flowers Hospital (Dothan, AL)
  • Forsyth Memorial Hospital (Winston
  • Fort Madison Community Hospital (Fort Madison, IA)
  • Fremont Area Medical Center (Fremont, NE)
  • Gaston Memorial Hospital (Gastonia, NC)
  • Good Samaritan Hospital Medical Center (West Islip, NY)
  • Goshen General Hospital (Goshen, IN)
  • Hackensack University Medical Center (Hackensack, NJ)
  • Hackettstown Regional Medical Center (Hackettstown, NJ)
  • Harlingen Medical Center (Harlingen, TX)
  • Heartland Regional Medical Center (Saint Joseph, MO)
  • Holland Community Hospital (Holland, MI)
  • Holy Name Hospital (Teaneck, NJ)
  • Huntington Beach Hospital (Huntington Beach, CA)
  • Integris Mayes County Medical Center (Pryor, OK)
  • Jackson Purchase Medical Center (Mayfield, KY)
  • Kettering Medical Center (Dayton, OH)
  • Kettering Medical Center‐Sycamore (Miamisburg, OH)
  • Kingwood Medical Center (Kingwood, TX)
  • La Palma Intercommunity Hospital (La Palma, CA)
  • Main Line Hospital Bryn Mawr Campus (Bryn Mawr, PA)
  • Mariners Hospital (Tavernier, FL)
  • Meadowview Regional Medical Center (Maysville, KY)
  • Memorial Hospital Pembroke (Hollywood, FL)
  • Memorial Regional Hospital (Hollywood, FL)
  • Mercy Medical Center‐Dubuque (Dubuque, IA)
  • Mercy San Juan Medical Center (Carmichael, CA)
  • Minden Medical Center (Minden, LA)
  • Moberly Regional Medical Center (Moberly, MO)
  • Munson Medical Center (Traverse City, MI)
  • Newport Hospital (Newport, RI)
  • North Ottawa Community Hospital (Grand Haven, MI)
  • Oklahoma Heart Hospital (Oklahoma City, OK)
  • Owatonna Hospital (Owatonna, MN)
  • Parkway Medical Center (Decatur, AL)
  • Peninsula Medical Center (Burlingame, CA)
  • Presbyterian Hospital (Charlotte, NC)
  • Presbyterian Hospital Huntersville (Huntersville, NC)
  • Reid Hospital and Health Care Services (Richmond, IN)
  • Saint Joseph Hospital London (London, KY)
  • Saint Joseph Mercy Saline Hospital (Saline, MI)
  • St. Charles Hospital (Port Jefferson, NY)
  • St. Luke’s Regional Medical Center (Sioux City, IA)
  • St. Mary’s Health Center (Jefferson City, MO)
  • Summa Health System Barberton Hospital (Barberton, OH)
  • Sutter Roseville Medical Center (Roseville, CA)
  • Tawas St. Joseph Hospital (Tawas City, MI)
  • Texas Health Harris Methodist Hospital Cleburne (Cleburne, TX)
  • United Hospital Center (Clarksburg , WV)
  • Vassar Brothers Medical Center (Poughkeepsie, NY)
  • Venice Regional Medical Center (Venice, FL)
  • Walker Baptist Medical Center (Jasper, AL)
  • Walla Walla General Hospital (Walla Walla, WA)
  • West Anaheim Medical Center (Anaheim, CA)
  • Williamsport Hospital and Medical Center (Williamsport, PA)

For more information on the Voices of Value™and the Best in Value™hospitals, please visit www.HospitalValueIndex.com.

About Data Advantage, LLC

Data Advantage, LLC is a privately held healthcare information company that specializes in providing hospitals and other healthcare related businesses with independent and objective business intelligence. The company has aggregated and compiled a warehouse of the most insightful information about healthcare utilization and maintains comprehensive benchmarks about the financial, operational and clinical performance of the U.S. hospital industry. For more information, visit www.dataadvantage.com or call 8669963282.

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100 Top Best in Value(TM) Hospitals

Hospital Value Index: Top 100 Best in Value ™ Hospitals Released

pdf 100 Top Best in Value(TM) Hospitals

Hospitals in New York, Michigan, Pennsylvania, Alabama and North Carolina cited the most

(NASHVILLE, Tenn.) ‐ Data Advantage, LLC announced today the Top 100 Hospital: Best in Value Hospitals™ list from the 2009‐2010 Hospital Value Index™, the first and only national study on U.S. hospitals and the value of care they provide.

The hospitals in the Top 100 list represent nearly every state in the U.S. The states with the most hospitals achieving Top 100 Best in Value™ recognition were: New York, Michigan, Pennsylvania, Alabama and North Carolina.

“These are the hospitals that set the bar for the nation when it comes to value. If every hospital performed at the level of the Top 100, we found that more than $60 billion per year could be saved,” said Hal Andrews, CEO of Data Advantage.

“The Hospital Value Index™ winners are a geographically diverse group of hospitals that have a proven ability to deliver high value care to their communities and represent a model of care that other U.S. hospitals should look to,” added Andrews. “As legislators consider health reform, we believe that it will be increasingly important to recognize and reward those hospitals that deliver outstanding value.”

These results are part of the findings from the 2009‐2010 Hospital Value Index™ study, an analysis of the value of care provided at more than 4,500 U.S. hospitals. As part of the release, Data Advantage is inviting hospitals and healthcare leaders to participate in the Voices of Value™ Summit, which will take place in Chicago December 7‐9. Industry leaders will convene at the Westin Chicago River North and discuss topics such as value, affordability, efficiency and patient satisfaction.


In alphabetical order, the Top 100 list of hospitals from the 2009‐2010 Hospital Value Index™ study is:

• Alegent Health Immanuel Medical Center (Omaha, NE)
• Alegent Health Mercy Hospital (Council Bluffs, IA)
• Alegent Health Midlands Hospital (Papillion, NE)
• Alleghany Regional Hospital (Low Moor, VA)
• Arnot Ogden Medical Center (Elmira, NY)
• Berkshire Medical Center (Pittsfield, MA)
• Bertrand Chaffee Hospital (Springville, NY)
• Billings Clinic (Billings, MT)
• Bon Secours ‐Memorial Regional Medical (Mechanicsville, VA)
• Butler Memorial Hospital (Butler, PA)
• Carolinas Med Center‐Mercy (Charlotte, NC)
• Carolinas Med Center‐University (Charlotte, NC)
• Carolinas Medical Center‐Northeast (Concord, NC)
• Centra Health (Lynchburg, VA)
• Chelsea Community Hospital (Chelsea, MI)
• Citizens Medical Center (Victoria, TX)
• Clinch Valley Medical Center (Richlands, VA)
• Cobleskill Regional Hospital (Cobleskill, NY)
• Community Medical Center (Toms River, NJ)
• Connally Memorial Medical Center (Floresville, TX)
• Cullman Regional Medical Center (Cullman, AL)
• Dixie Regional Medical Center (Saint George, UT)
• Dubois Regional Medical Center (Du Bois, PA)
• Flowers Hospital (Dothan, AL)
• Forsyth Memorial Hospital (Winston Salem, NC)
• Fort Madison Community Hospital (Fort Madison, IA)
• Gaston Memorial Hospital (Gastonia, NC)
• Graham Regional Medical Center (Graham, TX)
• Greenbrier Valley Medical Center (Ronceverte, WV)
• Hamilton General Hospital (Hamilton, TX)
• Heart Hospital of Lafayette (Lafayette, LA)
• Heartland Regional Medical Center (Saint Joseph, MO)
• Henry Ford Macomb Hospital (Clinton Township, MI)
• Heritage Valley Sewickley (Sewickley, PA)
• Holland Community Hospital (Holland, MI)
• Integris Mayes County Medical Center (Pryor, OK)
• Jackson Purchase Medical Center (Mayfield, KY)
• Jefferson Regional Medical Center (Crystal City, MO)
• Kettering Medical Center (Dayton, OH)
• Kettering Medical Center –Sycamore (Miamisburg, OH)
• Lakeside Memorial Hospital (Brockport, NY)
• Lakeview Med Center (Rice Lake, WI)
• McCullough‐Hyde Memorial Hospital (Oxford, OH)
• Meadowview Regional Medical Center (Maysville, KY)
• Medical Center Enterprise (Enterprise, AL)
• Memorial Regional Hospital (Hollywood, FL)
• Mercy Health Partners Hackley Campus (Muskegon, MI)
• Mercy Health Partners‐ Mercy Campus (Muskegon, MI)
• Mercy Medical Center (Des Moines, IA)
• Mercy Medical Center‐Dubuque (Dubuque, IA)
• Methodist Medical Center of Illinois (Peoria, IL)
• Methodist Medical Center of Oak Ridge (Oak Ridge, TN)
• Minden Medical Center (Minden, LA)
• Monroe County Hospital (Monroeville, AL)
• Montgomery Regional Hospital (Blacksburg, VA)
• Mount St. Mary’s Hospital and Health Center (Lewiston, NY)
• Nebraska Heart Hospital (Lincoln, NE)
• Northwest Medical Center (Winfield, AL)
• Oklahoma Heart Hospital (Oklahoma City, OK)
• Owatonna Hospital (Owatonna, MN)
• Paradise Valley Hospital (National City, CA)
• Parkway Medical Center (Decatur, AL)
• Presbyterian Hospital Huntersville (Huntersville, NC)
• Redmond Regional Medical Center (Rome, GA)
• Reid Hospital & Health Care Services (Richmond, IN)
• Rochester General Hospital (Rochester, NY)
• Saint Joseph Hospital (London, KY)
• Saint Joseph Mercy Saline Hospital (Saline, MI)
• Saint Vincent Health Center (Erie, PA)
• Saint Vincent Hospital (Worcester, MA)
• Sarah Bush Lincoln Health Center (Mattoon, IL)
• Spectrum Health United Memorial ‐United Campus (Greenville, MI)
• St. Alexius Medical Center (Bismarck, ND)
• St. Anthony Hospital (Oklahoma City, OK)
• St. Anthony Regional Hospital (Carroll, IA)
• St. Charles Hospital (Port Jefferson, NY)
• St. Francis Health Center (Topeka, KS)
• St. Joseph Health Center (Warren, OH)
• St Josephs Hospital (Chippewa Falls, WI)
• St. Josephs Mercy Health Center (Hot Springs, AR)
• St. Luke’s Regional Medical Center (Sioux City, IA)
• St. Mary’s Health Center (Jefferson City, MO)
• St. Mary’s Hospital at Amsterdam (Amsterdam, NY)
• St. Vincent Healthcare (Billings, MT)
• Tawas St. Joseph Hospital (Tawas City, MI)
• Thomasville Medical Center (Thomasville, NC)
• Trinity Hospitals (Minot, ND)
• United Hospital Center (Clarksburg, WV)
• Unity Hospital of Rochester (Rochester, NY)
• UPMC McKeesport (McKeesport, PA)
• UPMC Northwest (Seneca, PA)
• UPMC Passavant (Pittsburgh, PA)
• Venice Regional Medical Center (Venice, FL)
• Walker Baptist Medical Center (Jasper, AL)
• Wesley Medical Center (Hattiesburg, MS)
• West Anaheim Medical Center (Anaheim, CA)
• Western Baptist Hospital (Paducah, KY)
• Wheeling Hospital (Wheeling, WV)
• White River Medical Center (Batesville, AR)
• Williamsport Hospital Medical Center (Williamsport, PA)

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New Study of Best In Value™ Hospitals Highlights Potential Savings

NEW STUDY OF BEST IN VALUE™ HOSPITALS HIGHLIGHTS POTENTIAL SAVINGS OF $600B OVER 10 YEARS

pdf Hospital Value Index™ reveals 747 hospitals leading the way in delivering affordable, quality care  


Top Findings: America’s best hospital value often found in smaller towns, Midwest states

Washington, D.C. – The most comprehensive study of the Best in Value™ care provided by U.S. hospitals was delivered to lawmakers today as they resume the national debate over healthcare reform.

The 2009‐2010 Hospital Value Index™ ranked hospitals by an independent analysis of each hospital’s quality, affordability, efficiency and patient satisfaction performance. Out of the more than 4,500 hospitals that were analyzed, 747 were identified as providing the Best in Value™ care.

Key findings in the Hospital Value Index™ include:

• The highest value hospital care is often provided by community‐based hospitals, suggesting that consumers may find high value close to home and that policymakers should expand their search for models of reform beyond “name‐brand” teaching hospitals.

• If all hospitals in the U.S. performed at the average benchmark for the Best in Value™ hospitals, 9.3% of costs, or approximately $60B, could be eliminated from annual hospital spending on an all‐payer basis.

• The highest ranked hospitals in the study are geographically diverse, with the top 10 hospitals located in Dothan, AL; Minden, LA; Tawas City, MI; Clarksburg, WV; Gastonia, NC; Maysville, KY; Elmira, NY; Mechanicsville, VA; Holland, MI; and Winston‐Salem, NC.

• Of the 100 largest metropolitan areas in the U.S., the highest ranked markets are Charlotte, NC, Rochester, NY, Grand Rapids, MI, Pittsburgh, PA and Knoxville, TN. Markets with a population of less than 2,000,000 outperformed markets with a population of more than 2,000,000.

• There was no appreciable difference in performance between teaching hospitals and nonteaching hospitals.

• The study found that the top five states with hospitals delivering high value are North Dakota, Iowa, Montana, South Dakota, and Maine. The bottom five states for finding hospitals providing high value care are New Mexico, Arkansas, California, Hawaii and Nevada.

• The study found the gaps in hospital value can be dramatic. In one example, the study found the cost for the same medical procedure provided with the same quality of care at hospitals less than two miles apart can be more than $10,000.

The full findings of the study – and market by market rankings of hospital value performance – areavailable to the public for free at www.HospitalValueIndex.com.

Health reform

“As legislators consider health reform and as consumers shoulder an increasing burden of the cost of healthcare, it is important to recognize and reward those hospitals that deliver outstanding value,” said John Morrow, a senior advisor to Data Advantage.

“Healthcare consumers are increasingly making decisions based on value including quality, patient satisfaction and affordability. Hospitals providing the best value will ultimately be rewarded with more business.”

One of the prominent initiatives in health reform is Value‐Based Purchasing, which the Centers for Medicare and Medicaid Services (CMS) first recommended in November 2007. According to CMS, Value‐Based Purchasing will “drive improvements in clinical quality, patient‐centeredness and efficiency” in hospitals.

“The Hospital Value Index™ is the first‐ever and only benchmark to analyze these components to help hospitals understand their value proposition,” said Hal Andrews, CEO of Data Advantage. “In Value‐Based Purchasing, hospitals will likely be reimbursed based on the overall value that they deliver, and it is essential for hospitals to understand the areas in which improvements are needed. Regardless of the ultimate scope of reform, it is clear that the future of the American economy depends upon value becoming the key determinant in purchasing healthcare.”

The Hospital Value Index™ defines a hospital’s “value” by its success in four critical areas:
Quality, including CMS’s Core Measures, patient safety, mortality and readmission rates;
• Efficiency, including the relative measure of the cost to the hospital for providing services;
• Affordability, a relative comparison of prices charged for inpatient and outpatient services, including what hospitals ultimately collect; and
• Patient satisfaction as measured by HCAHPS.
 

Study summit
In the study, Data Advantage found many hospitals in every state that are providing exceptional value in an increasingly demanding environment. The Best in Value™ hospitals are urban and rural; teaching and non‐teaching; for‐profit and not‐for‐profit.

“Now, more than ever, it is important to identify those hospitals that have achieved excellent results,” said Morrow. “These hospitals are the models for success under health reform.”
In order to discover the keys to delivering high value, Data Advantage will host the Voices of Value™ Summit in December, where Hospital Value Index™ leaders will discuss and share best practices in achieving and providing value in this new era.

Data Advantage will reveal more details on the Voices of Value ™ Summit in the coming weeks, and additional comments from the Voices of Value™ participants can be found below.

About Data Advantage, LLC
Data Advantage, LLC is a privately held healthcare information company that specializes in providing hospitals and other healthcare‐related businesses with independent and objective business intelligence. The company has aggregated and compiled a warehouse of the most insightful information about healthcare utilization and maintains comprehensive benchmarks about the financial, operational and clinical performance of the U.S. hospital industry. For more information, visit www.data‐advantage.com
or call 866‐996‐3282.

Voices of Value™
(full quotes are available at www.HospitalValueIndex.com)
“The HCA TriStar Health System is honored to be named among the ‘best value’ health systems in America. Our ranking is a reflection of the hard work and dedication of our staff and physicians, and our continued focus on efficiency, effectiveness, and quality outcomes.”
Larry Kloess, President
HCA TriStar Health System (Nashville, Tennessee)

 

 
“Our leadership team and staff continue to look at the way we operate our hospital in order to provide improved value, quality and service to our community. We are excited about sharing our strategies, as well as learning new practices from hospitals at the Voices of Value™ summit.”
Lloyd Ford Jr., PhD, FACHE, President and CEO
Jefferson Regional Medical Center (Festus, Missouri)

“Billings Clinic appreciates the recognition as a leader in value from Data Advantage. We are strong believers in the importance of providing quality care at an optimal cost in our current health care environment and to prepare for future changes in health care.”
Nicholas Wolter, MD, CEO
Billings Clinic (Billings, Montana)

 

 
“Parkway is honored to be named a Top 100™ Hospital. We strive to be a leader in offering outstanding ‐ high value ‐ care for our community. At Parkway, patients can expect to be treated always with compassion and professionalism and to have access to the latest medical expertise and advanced technology. It is this combination that positions us well for the future.”
Tim McGill, CEO
Parkway Medical Center (Decatur, Alabama)

 

 
“Zeeland Community Hospital is honored to receive the Best in Value™ Award. The award is an affirmation of our most sincere efforts to meet the needs of our community and exceed their expectations in terms of quality, efficiency and compassionate care.”
Henry A. Veenstra, President
Zeeland Community Hospital (Zeeland, Michigan)

 

 
“I am pleased that Saint Vincent Hospital in Worcester, Massachusetts has been recognized as one of the Top 100™ hospitals in the country in terms of the ‘value’ it provides. If health reform is to be successful at the state and federal levels, hospitals like Saint Vincent that provide the highest level of quality care at reasonable costs will lead the way.”
Joseph J Mullany, President
Vanguard Health System, New England & Chicago Market

 

 
“This achievement is truly a team effort combining the efforts of our Board, medical staff, employees, and community creating a quality health care system. St. Anthony is proud to be recognized by this award and will continue to make a caring difference every day. ”
Gary Riedmann, President
St. Anthony Regional Hospital & Nursing Home (Carroll, Iowa)

 

 
“Holy Name Hospital is honored to be ranked among the top hospitals in the country for quality, efficiency, affordability and patient satisfaction. The Best in Value™ award is distinguished by its use of published data from objective, third‐party sources. The value index isn’t anecdotal or subjective; it’s culled from a wide variety of nationally‐recognized standards, measures and indicators, and I think that’s what makes this recognition especially meaningful. One of the key tenets of our mission is stewardship, and that’s being recognized here. I am continually impressed by the way our entire team of employees, nurses and physicians comes together in a process that creates value, engendering excellence on every
level.”
Michael Maron, President/CEO
Holy Name Hospital (Teaneck, New Jersey)

 

 
“The Best in Value™ Award recognition is a testament to the great care provided at Berger Hospital. We consistently hold ourselves accountable to deliver high‐quality, cost effective healthcare, and this third party review helps to validate our success.”
Tim Colburn, CEO
Berger Hospital (Circleville, Ohio)

 

 
“At a time when the nation is focused on providing both high quality and affordable healthcare, it’s great to earn national recognition for doing just that. Consumer education is increasingly more important when making healthcare decisions. This study from an independent source verifies the value we provide our patients.”
Rosemari Davis, CEO
Willamette Valley Medical Center (McMinnville, Oregon)

“I am very pleased that we, as a team, have been recognized with this award. Our people make the difference. They are passionate, caring and down‐to earth. Whether it’s a physician, nurse, therapist or the person who works in the lab or in dietary, people make an institution great. Certainly in healthcare that’s true. Over the last 20 years this organization has done a great job of creating the infrastructure of an integrated system, which is ideally suited to successfully face challenges in health care. Our focus is entirely patient centered and we benchmark against the best of the best to constantly improve the quality care and value we are able to offer our patients.”
Mark Laney, President and CEO
Heartland Health (Saint Joseph, Missouri)

 

 
“Earning this recognition demonstrates our commitment to excellence from every part of our organization – physicians, employees, volunteers, managers and our Board of Directors.”
Edward J. Roth III, President and CEO
Aultman Hospital (Canton, Ohio)

 
“There is no way to really reform health care without transparency, consistent metrics and full understanding of value for money. The Hospital Value Index™ is one of the fundamental building blocks for reform that results in an accountable system and a model for engaging physicians and patients in ways that can make a real difference.”
Jonathan T. Lord, CEO
Navigenics

 

 
 
 
 
 

 

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Community Hospitals May Provide Higher Quality, Value

Janice Simmons, for HealthLeaders Media, September 16, 2009

Some of the highest value hospital care actually may be provided by nearby community-based hospitals, according to the 2009-2010 Hospital Value Index released Tuesday that ranks hospitals by an analysis using publically available data on quality, affordability, efficiency, and patient satisfaction performance data……………………..

newspaper   Community Hospitals May Provide Higher Quality, Value  from Media Health Leaders

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A Response to President Obama’s Call For Good Ideas

On Wednesday night, President Obama called for ideas to improve the proposals in Congress to reform healthcare. Taking him at his word, I propose the following for healthcare (not simply health insurance) reform.

My Foundational Premises:

Let me first state the two critical foundational premises that inform my proposals.

First, I don’t think that personal health records or electronic medical records will bring any cost savings to the system. I note that some of President Obama’s advisors agree. In any event, absent 100% inter-operability, PHRs and EMRs will always hit the “End of the Line”, to quote the Traveling Wilburys, most likely when a physician is in urgent need of the information. The only entity in the U.S. that can guarantee anything approximating 100% deployment is the Federal government, the most obvious example of which is the Social Security account.

Second, I think the HSA concept is a good one. Consumerism pervades every aspect of the American economy except for those health care services for which Medicare has established a fee. In contrast, consider how Americans shop for plastic surgery, cosmeceuticals, alternative therapies, and organic foods. I believe that training consumers to make unique value decisions in health care purchases is a good and necessary idea. Even when the tax-deductibility of employer-sponsored health benefits inevitably crumbles (the only real way to pay for reform), I think a tax-advantaged Health Savings Account is good policy.

My Plan:

I know that a good political plan should be summarized in three points, but healthcare merits a few more. Hence, the following eleven points represent a direction that the Federal government could take that would at once be palatable to a majority of working Americans, reap long-term cost-savings and other benefits such as allowing Americans to retain decision-making power over personal healthcare decisions and immediately incentivize the healthcare financing and delivery system to deliver far more value for the money.

  1. Couple the issuance of a Social Security card to newborns with a tax-advantaged HSA and a PHR.
  2. Similar to Senator Kerry’s proposal in the 2004 Presidential election, purchase a 25-year term catastrophic insurance policy for the child at birth.
  3. Deposit $2,000 per year into the HSA for preventive care.
  4. Marry SCHIP reform/expansion with those HSAs to deliver preventive care, specifically to incorporate CDC guidelines. Between preventive care and catastrophic coverage, we can cover the vast majority of every child’s healthcare needs.
  5. At age 18, allow the child to convert the balance of the HSA into a 529 account for college expenses.
  6. At age 24, “sweep” the balance of the account, if any, into the now-adult’s Social Security account and purchase a new 40-year catastrophic policy.
  7. For adults, a call for personal responsibility is critical – the healthcare delivery system is only 10% of the issue, while behavior and genetics are each more than 30%. For the 30%+ that is behavioral, ERISA should be amended to allow employers flexibility to provide incentives, but not penalties, for improved health behaviors. For the 10% that is related to healthcare purchasing, knowledge is power, and price/cost transparency is necessary to allow consumers to evaluate the value of the care that they need.
  8. The hardest issue, but perhaps most crucial, is the need to address the employer-sponsored tax benefit in a rational fashion so that the consumer/patient is incented to control the costs. The most likely positive unintended consequence of reform is the behavioral change that price/cost transparency would bring.
  9. Repeal of the McCarran-Ferguson Act is essential to health insurance reform. It is widely cited that Medicare’s administrative costs are lower than those of commercial insurers. CMS obviously has the benefits of scale that allow a lower administrative cost as a percentage of dollars paid. The critical fact in comparing CMS to United or Aetna or Wellpoint is that CMS does not have to follow state insurance regulations, which allows it to administer a global budget with one adminstrative team. In contrast, insurers with multi-state operations have tremendous duplication of the same essential function, which is required to comply with differing state requirements. It may seem counter-intuitive to Republicans to federalize the oversight of the insurance industry to eliminate the barriers presented by state-to-state regulation. In a sense, it is a restriction of state authority; in another sense, it is deregulation. Wise regulation can level the playing field across states for private players to compete at an administrative cost level with each other and with CMS.
  10. Address the issue or pre-existing conditions.  Whereas the President seems to believe his version of the reforms will make them a non-issue, Republicans must address this one issue that resonates with most tax payers. If federal oversight is in place, and barriers to interstate competition lowered, wider risk pools will be available to the average consumer, thereby spreading the coverage cost over a larger base. In any event, pre-existing conditions cannot be allowed to prevent Americans from obtaining affordable insurance coverage.
  11. To date, Washington has focused almost no attention on the healthcare delivery side, which is the most complicated aspect. For starters, carefully analyze the 747 hospitals celebrated by The Hospital Value Index™, which should rightfully be the models of healthcare delivery reform, not just Mayo, the Cleveland Clinic and Intermountain. These examples routinely cited by the White House as models of reform cannot be replicated, mostly because they are geographic or demographic outliers. There are literally hundreds of hospitals delivering great value — go find them, find their commonalities, and start there.

A few concluding thoughts:

The White House, and particularly Peter Orszag at the OMB, are fixated on Dartmouth Atlas, which uses 2005 Medicare data as a prescription for reform. As we have demonstrated in our analysis, a “GPS” approach that evaluates the most recent all-payer data is much more insightful than an Atlas.

Elements of this plan do not provide immediate coverage for all uninsured, but it could be adapted to “grandfather” in every person in the U.S. who is under 18 at the effective date of the plan. It would, however, provide a much more targeted program than SCHIP, presumably at a lower cost. My belief is that the combination of a distinctly Democratic concept (Social Security) and an equally distinctly Republican concept (HSA) would allow a truly bipartisan solution.

I keep waiting for a call for shared sacrifice from Washington; instead, all of the bills or proposals shelter labor from any sacrifice in insurance reform. Health reform for all must mean ALL, not everyone except organized labor. As George Will suggests, we will all be much better off when 7% of the workforce stops making all the rules.

All of this requires more thought and discussion, but I think it is fairly reasonable.

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2009-2010 Hospital Value Index™ – Release 3 Big Cities Low Value

HOSPITALS IN LARGEST U.S. CITIES OFFER THE LEAST VALUE
Study Finds Markets Such as Los Angeles and San Francisco Score Particularly Low, while Charlotte, Rochester and Pittsburgh Score Highest

pdf   2009-2010 Hospital Value Index™ – Release 3 Big Cities Low Value 

 

Nashville, TN – According to the most recent Hospital Value Index™ results, a study that analyzed data from more than 4,500 hospitals across the United States, hospitals in the largest U.S. cities generally offer a low value of patient care compared to elsewhere in the country.

“Our findings conclude that these urban areas offer less affordable and less efficient care, which affected the overall performance of the market,” said Hal Andrews, Chief Executive Officer of Data Advantage, the company that developed and maintains the Hospital Value Index™.

“Ironically, we found that the hospitals with which the White House and its advisers are most intimately familiar deliver low healthcare value against every benchmark ‐ city, state, CMS Region, and the U.S.”

For example, the Chicago market ranked 88th out of the 100 largest markets, just one spot behind McAllen, Texas and one spot ahead of Honolulu. Other than Fort Myers and Las Vegas, the lowest‐ranking large markets were all in California. The top five states in delivering value were North Dakota, Iowa, Montana, South Dakota, and Maine. The bottom five states were New Mexico, Arkansas, California, Hawaii, and Nevada.

“Like every other good and service, price is an essential part of healthcare value,” said Andrews. “For California, prices are relatively high, even after adjusting for national wage variances. The uninsured, underinsured and health savings account members are disproportionately harmed by the high prices, without receiving superior quality, outcomes or patient experience in exchange.”

“The rules have changed ‐‐ whether because of the economy, health reform or Value‐Based purchasing, and quality alone is not a sustainable strategy for the U.S. hospital industry,” said John Morrow, one of the authors of the study. “These organizations will need to be accountable to their communities for their performance on value and be transparent about doing so. The Hospital Value Index™ is a means toward that end.”

The latest study from the Hospital Value Index™ used the most current and comprehensive set of publicly available data, including Hospital Compare data released by CMS in July 2009, to analyze more than 4,500 U.S. hospitals to discover where patients can find the best value of care in their community. The Hospital Value Index™ researchers analyzed a variety of public data on hospital quality, price, efficiency, and patient satisfaction. The Hospital Value Index™ is updated frequently to reflect the dynamic impact of change occurring in the hospital industry.

Data Advantage will release the complete 2009‐2010 Hospital Value Index™ results on September 15 in Washington, D.C. For more information on the Hospital Value Index™ findings, please visit HospitalValueIndex.com or this site, www.TheHealthcareValueBlog.com.

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Framework for Comprehensive Health Reform – Senator Baucus

pdf       Latest proposal from Senator Baucus (Chairman Baucus) to the Senante Finance Committee. 








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The Unintended Consequences of Healthcare Reform – #3 Part 2

Even though it appears that the White House and many House members are still determined to get a robust public option into the final bill, the current prognostication is that it will not survive. In its place, there will be some kind of public operated exchange that gives individuals a place to buy their insurance from private insurers in a competitive market. These insurers will have to continue negotiating their rates with providers.  The Baucus bill may set these exchanges up by State and allow States to pool their efforts. In this scenario, different states may choose to give their exchanges different powers. It can be presumed with some safety that any House bill would only have a federal exchange.

 

Just as in Part 1 above, providers will benefit by more people being covered. Bad debt should decline and volumes increase fairly quickly. And just as above, the healthcare cost problem is going to be exacerbated going forward. At some point in the future (when Medicare and Social Security are substantially increasing the annual deficit, the new healthcare entitlement is more costly than expected, and the government’s ongoing operating deficit is unsustainable), the federal government will again have to take on the issue of healthcare costs. At that time, there will not be as profound an access problem complicating the debate. This new debate will focus on controlling healthcare costs.

 

To see into the future about how the government will proceed, it is best to look at the past. The major Congressional initiatives to control Medicare costs after they started to get out of hand were to implement the CON program in the early 70s, begin implementing prospective reimbursement in the early 80s, increase the anti-fraud efforts in the 90s, and reduce provider annual increases in the 2000s. Not once during any of those times was there a serious discussion about cutting back on Medicare benefits. Nor is there any reason to believe there will be any serious discussion of this possibility in the future. The baby boomers will be a large voting bloc that no politician will want to upset. Considering that a vast majority of this group will also not be financially prepared for retirement, they will vote to hold onto as many government benefits as possible. As in the past, the government will focus on a variety of ways to reduce their payments to providers.

 

It would seem that no matter whether there is a robust public option included in the current reform effort or not, the future challenges facing hospitals and all providers are fairly well mapped out. At some point in the future, providers are going to be faced with the challenge of how to survive with fewer revenues while the demand for services is rising. The providers that can establish clinical standards to ensure that each service provided is clinically “necessary” will be way ahead. The greatest barrier to setting such standards will likely not be physician obstruction. The greatest barrier will be the liability risk for limiting services based on low probabilities of clinical harm to patients.

 

                The Unintended Consequences of Healthcare Reform – #1
                The Unintended Consequences of Healthcare Reform – #2
                The Unintended Consequences of Healthcare Reform – #3 Part 1
                The Unintended Consequences of Healthcare Reform – #3 Part 2
                The Unintended Consequences of Healthcare Reform – #4

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The Unintended Consequences of Healthcare Reform – #3 Part 1

To have a “robust” public option or not to have a “robust” public option that is the question. The general opinion of those who have studied the impact of a robust public option is that the enrollment in private insurance would dramatically decline in favor of the public option over a 10 year period. The speed of this decline would be dependent on the incentives given to employers and employees to move from employee based or individual plans respectively.

 

Much has been said about the impact on insurers and physicians if the robust public option is implemented. Less has been said about the impact on hospitals. The immediate impact on hospitals will be a reduction in their average reimbursement per patient encounter. The “robust” public option will pay providers Medicare-like rates. Some analysts have estimated that Medicare on average reimburses hospitals between 30 to 40% less than private insurers. As subscribers move from their private plans to the public option, hospitals’ revenue per patient encounter will begin to decline.

 

The upside for hospitals is that bad debt as a % of revenue will also decline if most people are covered after the reform is implemented. In fact, the dollars written off to bad debt should decline much faster than reimbursement. This is because universal coverage will be implemented immediately while the transfer of people to the public option will occur over time. Patient volumes should also increase. History shows very clearly that insured people increase their demand for healthcare services.

 

As a result, hospitals could enter into a last golden age that may last for 3 to 7 years. After this period ends, an extended dark ages would appear to be inevitable. As many critics have pointed out, the reform initiatives currently on the table will not reduce the % of GDP currently spent on healthcare. This reform’s major accomplishment will be to create a new entitlement.  The notion that giving healthcare access to the uninsured will make them healthier and therefore less expensive in healthcare terms has never panned out. People with insurance coverage continuously demand more healthcare services than those who do not have it. Healthcare costs for the country as a whole and the government will rise at an even higher rate that the already high rate experienced during the last decade.

 

It seems that most everyone no matter what their ideology or position is on the current debate agrees that the US must reduce what it spends on healthcare services. The government will have basically two ways to reduce its healthcare costs when it finally gets serious; cut benefits or reduce the costs of providing those benefits. History teaches us that governments only rarely cut back on the benefits they offer to voters. It is much more politically palatable for governments to cut costs or raise revenues from either a small group of voters or from institutions that do not vote. The other option of course is to just borrow more money and not deal with the problem. It would seem that the clock is ticking on this latter strategy for a whole host of reasons. 

 

Hospitals can be sure that no matter what else happens their reimbursement will be one of the first targets for cuts when the government needs to rein in its budget. If there is any doubt, review what is currently happening in Massachusetts, which is some years into its universal healthcare experiment.  There is a very serious proposal on the table to convert providers to a capitation reimbursement system. Such a system would allow the State government to set an annual healthcare budget at a specific amount and put the financial risk for cost overruns on providers.  As hospitals learned in the 80s and 90s, this is a prescription for fiscal disaster. To survive hospitals will have to successfully reduce the level of services provided to patients despite patients having the same high expectations for services they have always had and doctors being more concerned about lawsuits than the hospitals bottom line.  Cutting hospital reimbursement will reduce healthcare costs in another way besides just paying hospitals less money. The number of institutional providers of all types will decline. Lowering the number of providers will act as a cap on how many healthcare services can be delivered. Rationing will ultimately occur not by government policy but by default. It is worthy to note that the Healthcare Commissioner is given the power to implement a capitation type reimbursement system in the future.

 

                The Unintended Consequences of Healthcare Reform – #1
                The Unintended Consequences of Healthcare Reform – #2
                The Unintended Consequences of Healthcare Reform – #3 Part 1
                The Unintended Consequences of Healthcare Reform – #3 Part 2
                The Unintended Consequences of Healthcare Reform – #4

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