Affordability in healthcare remains a critical concern, with rising premiums and out-of-pocket expenses impacting individuals nationwide. A key question emerges: what can we learn from hospitals that deliver exceptional care efficiently? The Lown Institute Hospitals Index offers valuable insights, evaluating hospitals based on clinical outcomes, value of care and health equity.
Decoding Cost Efficiency: The Lown Index Approach
The Lown Index’s cost efficiency metric assesses risk-standardized hospital mortality rates against risk-standardized costs for Medicare patients. Which means hospitals are evaluated on their ability to achieve positive patient outcomes without excessive spending. The Index utilizes 53 different metrics to provide a comprehensive assessment of hospital performance.
Top Performers in 30-Day Cost Efficiency
Here are the top ten acute care hospitals recognized for 30-day cost efficiency, as identified by the Lown Index:
- Davie Medical Center—Bermuda Run, NC
- Northwestern Medicine Lake Forest Hospital—Lake Forest, IL
- Brigham and Women’s Faulkner Hospital—Boston, MA
- Northwestern Memorial Hospital—Chicago, IL
- Kuakini Medical Center—Honolulu, HI
- Barnes-Jewish West County Hospital—Creve Coeur, MO
- UC Health Highlands Ranch Hospital— Highlands Ranch, CO
- Houston Methodist Hospital—Houston, TX
- MultiCare Covington Medical Center—Covington, WA
- Alta View Hospital—Sandy, UT
These hospitals demonstrated an average risk-adjusted 30-day mortality rate below 7% and risk-adjusted payments under $16,000. In comparison, the average mortality rate across all acute care hospitals measured was 9.5%, with average payments around $17,500. The leading hospitals achieved a low of 4.88% mortality and $11,366 in payments, though not at the same institution.
How the Lown Index Measures Cost Efficiency
The Lown Index’s cost efficiency metric focuses on clinical outcomes achieved relative to the cost of care for Medicare fee-for-service patients. Hospitals with lower mortality rates and lower costs receive higher scores. The data analyzed includes Medicare fee-for-service claims from hospitalizations between 2020 and 2022, excluding patient transfers, cases involving COVID-19, and instances where Medicare wasn’t the primary payer.
Medicare costs are calculated by totaling claim payments within 30 days of hospital admission, encompassing inpatient, outpatient, carrier, skilled nursing facility, home health agencies, durable medical equipment, and hospice claims. These payments are standardized to account for patient risk factors and regional cost variations, ensuring a fair comparison between hospitals.
The Rise of Value-Based Care
The Lown Index’s focus on cost efficiency aligns with the broader industry shift towards value-based care. Traditionally, healthcare reimbursement was based on the volume of services provided. Now, there’s increasing emphasis on rewarding hospitals and healthcare providers for delivering high-quality care at a reasonable cost. This trend is expected to accelerate as healthcare systems seek to control expenses and improve patient outcomes.
Future Trends in Hospital Efficiency
Several factors are likely to shape hospital efficiency in the coming years. Increased adoption of telehealth and remote patient monitoring can reduce the need for costly hospitalizations. Artificial intelligence (AI) and machine learning are being used to optimize hospital operations, predict patient needs, and improve diagnostic accuracy. Greater transparency in pricing and quality data will empower patients to create more informed decisions about their care.
Pro Tip:
When choosing a hospital, don’t solely focus on reputation. Explore resources like the Lown Institute Hospitals Index to compare hospitals based on factors like cost efficiency, health equity, and clinical outcomes.
FAQ
Q: What is the Lown Institute Hospitals Index?
A: It’s a ranking system that evaluates hospitals on clinical outcomes, value of care, and health equity, using over 50 metrics.
Q: What does “cost efficiency” mean in the context of the Lown Index?
A: It measures how well hospitals balance clinical outcomes with the cost of care for Medicare patients.
Q: What data is used to calculate the Lown Index scores?
A: The Index uses Medicare fee-for-service claims data from 2020-2022.
Q: Is the Lown Index the only hospital ranking available?
A: No, but it is unique in its focus on social responsibility and comprehensive metrics.
Did you know? The Lown Institute analyzed over 2,700 acute care hospitals, 800 critical access hospitals, and 300 hospital systems nationwide.
Aim for to learn more about hospital performance and how to advocate for better healthcare? Explore the Lown Institute website and share this article with your network!
