100 Top Hospitals, 2019 - Competitor Report Client Hospital Date of Delivery - IBM
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100 Top Hospitals, 2019 Competitor Report Client Hospital Date of Delivery
Contents –Background and Approach –Profiled Competitors –Executive Summary –2017 Performance and 5-Year Rate of Improvement Graphs –Methodology Overview Watson Health © IBM Corporation 2019 2
Background In this analysis, Sample Hospital’s performance and rate of improvement are compared to that of seven client-selected and Approach competitors, using the 100 Top Hospitals® measures and methodologies Measures included in the analysis: OVERALL performance score Inpatient mortality Average length of stay Complications Emergency department throughput Healthcare-associated infections* Inpatient expense per discharge Mean 30-day mortality Operating profit margin Mean 30-day readmissions HCAHPS score (Overall rating question) Results are displayed as the rank percentile of each hospital’s performance and rate of improvement compared to all U.S. hospitals within each hospital’s 100 Top peer group – Conversion to percentiles allows direct comparison of all selected hospitals, without regard to peer group *Healthcare-Associated Infections composite index was included in the Overall Score but is not reported on the matrix graph because there are insufficient data years to trend. We have shown HAI as a separate bar graph. Watson Health © IBM Corporation 2019
Profiled Competitors –Client Hospital –Competitor 1 –Competitor 2 –Competitor 3 –Competitor 4 –Competitor 5 –Competitor 6 –Competitor 7 Watson Health © IBM Corporation 2019 4
Executive Overall National Performance – Sample Hospital falls into the ____ Percentile nationally for Summary both 2017 performance and 2013-2017 rate of improvement – Competitor ______ and ______ facilities lead this group based on performance on all 100 Top Hospitals measures Where Sample Hospital is strong among peers, and improving – Curabitur pulvinar dui a erat placerat gravida. Nunc non felis eu ante vestibulum posuere ultricies at neque. – Donec vehicula lorem feugiat enim congue, quis blandit metus suscipit. Mauris vel elementum velit. In at dictum arcu. Where Sample Hospital might have significant opportunity to improve nationally, and compared to these competitors – Phasellus vitae egestas felis. Sed libero ante, dignissim id massa commodo, iaculis tincidunt neque. – Pellentesque volutpat, sapien eget bibendum lobortis, sem leo feugiat odio, nec ornare neque sapien at leo. Watson Health © IBM Corporation 2019 5
100 Top Hospitals, 2019 Overall Performance Comparison 2017 Performance and 2013-2017 Rate of Improvement 100 Hospital Key 3 1 Client Hospital 80 4 2 Competitor 1 7 3 Competitor 2 2013 - 2017 Rate of Improvement 1 4 Competitor 3 5 Competitor 4 6 6 Competitor 5 60 7 Competitor 6 8 Competitor 7 40 2 Quintile Key > 80 to 100 8 > 60 to 80 20 > 40 to 60 > 20 to 40 5 > 0 to 20 0 0 20 40 60 80 100 2017 Performance Watson Health © IBM Corporation 2019 6
100 Top Hospitals, 2019 Risk-Adjusted Inpatient Mortality 2017 Performance and 2013-2017 Rate of Improvement 100 4 Hospital Key 6 3 7 1 Client Hospital 80 2 Competitor 1 2013 - 2017 Rate of Improvement 3 Competitor 2 4 Competitor 3 5 Competitor 4 60 6 Competitor 5 7 Competitor 6 8 Competitor 7 8 40 2 Quintile Key > 80 to 100 > 60 to 80 20 5 > 40 to 60 1 > 20 to 40 > 0 to 20 0 0 20 40 60 80 100 2017 Performance Watson Health © IBM Corporation 2019 7
100 Top Hospitals, 2019 Risk-Adjusted Complications 2017 Performance and 2013-2017 Rate of Improvement 100 6 Hospital Key 3 1 7 1 Client Hospital 8 80 5 2 Competitor 1 2013 - 2017 Rate of Improvement 3 Competitor 2 2 4 Competitor 3 5 Competitor 4 60 6 Competitor 5 7 Competitor 6 8 Competitor 7 4 40 Quintile Key > 80 to 100 20 > 60 to 80 > 40 to 60 > 20 to 40 > 0 to 20 0 0 20 40 60 80 100 2017 Performance Watson Health © IBM Corporation 2019 8
100 Top Hospitals, 2019 Healthcare-Associated Infections (HAI) Composite Performance Higher percentile denotes better relative performance in peer comparison group. 100 Client Hospital 93.6 88.4 90 Competitor 1 80 Competitor 2 72.9 65.5 2017 Rank Percentile 70 Competitor 3 61.0 60 Competitor 4 50 Competitor 5 Competitor 6 40 Competitor 7 30 25.2 20 11.9 6.7 10 0 Watson Health © IBM Corporation 2019 9
100 Top Hospitals, 2019 Mean 30-Day Mortality* 2017 Performance and 2013-2017 Rate of Improvement 100 8 Hospital Key 6 1 Client Hospital 1 80 2 Competitor 1 2013 - 2017 Rate of Improvement 3 Competitor 2 4 Competitor 3 5 Competitor 4 60 6 Competitor 5 3 7 Competitor 6 8 Competitor 7 40 5 2 4 Quintile Key > 80 to 100 20 > 60 to 80 > 40 to 60 > 20 to 40 7 > 0 to 20 0 0 20 40 60 80 100 2017 Performance *Includes AMI, HF, PN, COPD, STK Watson Health © IBM Corporation 2019 10
100 Top Hospitals, 2019 30-Day Readmissions 2017 Performance and 2013-2017 Rate of Improvement 100 4 Hospital Key 3 1 Client Hospital 80 2 Competitor 1 2013 - 2017 Rate of Improvement 3 Competitor 2 4 Competitor 3 5 Competitor 4 60 7 6 Competitor 5 7 Competitor 6 8 Competitor 7 40 2 Quintile Key > 80 to 100 20 > 60 to 80 6 > 40 to 60 5 > 20 to 40 8 1 > 0 to 20 0 0 20 40 60 80 100 2017 Performance *Includes AMI, HF, PN, THA/TKA, COPD, STK Watson Health © IBM Corporation 2019 11
100 Top Hospitals, 2019 Severity-Adjusted Average Length of Stay 2017 Performance and 2013-2017 Rate of Improvement 100 7 Hospital Key 1 Client Hospital 2 Competitor 1 80 4 3 Competitor 2 2013 - 2017 Rate of Improvement 4 Competitor 3 5 Competitor 4 60 6 Competitor 5 6 7 Competitor 6 8 Competitor 7 40 8 Quintile Key > 80 to 100 > 60 to 80 20 > 40 to 60 1 3 > 20 to 40 2 5 > 0 to 20 0 0 20 40 60 80 100 2017 Performance Watson Health © IBM Corporation 2019 12
100 Top Hospitals, 2019 Mean Emergency Department Throughput* 2017 Performance and 2013-2017 Rate of Improvement 100 2 Hospital Key 3 4 1 1 Client Hospital 80 2 Competitor 1 3 Competitor 2 2013 - 2017 Rate of Improvement 4 Competitor 3 5 Competitor 4 60 6 Competitor 5 7 5 7 Competitor 6 8 Competitor 7 40 Quintile Key > 80 to 100 20 > 60 to 80 6 > 40 to 60 > 20 to 40 8 > 0 to 20 0 0 20 40 60 80 100 2017 Performance *Includes median time to admission; median time to discharge for non-admitted patients Watson Health © IBM Corporation 2019 13
100 Top Hospitals, 2019 Inpatient Expense per Discharge* 2017 Performance and 2013-2017 Rate of Improvement 100 8 Hospital Key 1 1 Client Hospital 6 2 Competitor 1 80 2013 - 2017 Rate of Improvement 3 Competitor 2 4 Competitor 3 5 Competitor 4 60 2 6 Competitor 5 7 Competitor 6 8 Competitor 7 40 Quintile Key > 80 to 100 7 > 60 to 80 20 > 40 to 60 5 3 > 20 to 40 4 > 0 to 20 0 0 20 40 60 80 100 2017 Performance *CMS area wage index and casemix adjusted Watson Health © IBM Corporation 2019 14
100 Top Hospitals, 2019 Adjusted Operating Profit Margin* 2017 Performance and 2013-2017 Rate of Improvement 100 Hospital Key 1 Client Hospital 80 2 Competitor 1 2013 - 2017 Rate of Improvement 3 Competitor 2 4 4 Competitor 3 5 Competitor 4 60 6 Competitor 5 2 7 Competitor 6 3 8 Competitor 7 1 7 40 Quintile Key > 80 to 100 6 > 60 to 80 20 8 > 40 to 60 > 20 to 40 5 > 0 to 20 0 0 20 40 60 80 100 2017 Performance *Adjusted for net related organization expense Watson Health © IBM Corporation 2019 15
100 Top Hospitals, 2019 HCAHPS Score (Overall rating question) 2017 Performance and 2013-2017 Rate of Improvement 100 Hospital Key 1 1 Client Hospital 80 2 Competitor 1 3 Competitor 2 2013 - 2017 Rate of Improvement 3 4 Competitor 3 5 Competitor 4 60 6 Competitor 5 7 7 Competitor 6 8 Competitor 7 40 5 Quintile Key > 80 to 100 > 60 to 80 20 6 > 40 to 60 4 2 > 20 to 40 8 > 0 to 20 0 0 20 40 60 80 100 2017 Performance Watson Health © IBM Corporation 2019 16
Methodology Overview 17
Watson Health All non-federal U.S. acute care hospitals are eligible – Must have Medicare patient claims with valid POA coding 100 Top Study (2016-2017) Eligibility – Must have a complete 2017 cost report – Must have data for all included measures* Specialty and Critical Access hospitals are not included Note: This year we are offering a separate analysis and reports for CAHs We exclude hospitals with the following characteristics: – Federally-owned – Non-U.S. – Fewer than 25 beds – Fewer than 100 Medicare discharges – Medicare average length of stay greater than 30 days – No Medicare deaths reported *Exceptions: For hospitals missing individual 30-day measures, BUT NOT ALL, we substitute the class median. Watson Health © IBM Corporation 2019 18
Hospital Comparison Groups 100 Top Hospitals® Comparison Groups Winners Total Major Teaching Hospitals – 3 ways to qualify: 15 217 ─ 400+ acute beds, 0.25 GME student to acute beds ratio, 10 GME sponsored programs or 20 GME affiliated programs ─ 30 GME affiliated programs ─ 0.6 GME student to acute beds ratio Teaching Hospitals – 2 ways to qualify: 25 488 ─ 200+ acute beds and 0.03 GME student to acute beds ratio ─ 200+ acute beds and 3 GME affiliated programs Large Community Hospitals – 250+ beds 20 290 Medium Community Hospitals – 100 to 249 beds 20 914 Small Community Hospitals – 25 to 99 beds 20 843 Totals 100 2,752 SOURCES: 2017 cost report – acute beds in service; GME student FTEs. AMA & AOA residency program lists. Watson Health © IBM Corporation 2019 19
Scorecard Domains, Measures and Rank Weights 2017 Class 1 Trend Domain Performance Measure Weight 2017* Weight Risk-adjusted inpatient mortality 1 1.25 1 Clinical Outcomes Risk-adjusted complications 1 1.25 1 Mean HAI index* 1 na na Quality Mean 30-day mortality rate (AMI, HF, PN, COPD, STK) 1 1.25 1 Extended Outcomes Mean 30-day readmission rate (AMI, HF, PN, THA/TKA, COPD, STK) 1 1.25 1 Severity-adjusted average length of stay 1 1 1 Operations Efficiency Mean emergency department throughput 1 1 1 Inpatient expense per discharge, AWI and case mix adjusted 1 1 1 Financial Adjusted operating profit margin 1 1 1 Patient Experience HCAHPS Overall Patient Rating Score 1 1 1 *HAI metrics are not ranked for small community hospitals. 2017 weights for inpatient mortality, complications, 30-day mortality and 30-day readmission ranks were increased to 1.25 to balance quality and operational group weights for them. Watson Health © IBM Corporation 2019 20
Data Sources and Time Periods 2017 Performance (100 Top Performance Measure 5-Year Trend Award) MEDPAR Federal Fiscal Year Inpatient mortality MEDPAR FFY 2012-2017* (FFY) 2016 and 2017* Complications Healthcare-associated infection (HAI) CMS Hospital Compare Not Trended indices (CMSHC) CY 2017 30-day mortality rates CMSHC July 1, 2014-June 30, CMSHC 3 yr data sets ending June 30, 2017 2013, 2014, 2015, 2016, 2017 30-day readmission rates Average length of stay MEDPAR FFY 2017 MEDPAR FFY 2013-2017 CMSHC CY 2014, 2015, 2016, 2017 CMSHC CY 2017 Emergency department wait times FFY 2013 (CY2013 unavailable) CMS HCRIS 2018 Q3 Inpatient expense/disch CMS HCRIS 2018 Q3 Hospital 2013, 2014, 2015, 2016, 2017 Hospital 2017 cost reports Operating profit margin cost reports CMSHC CY 2013, 2014, 2015, 2016, HCAHPS Score CMSHC CY 2017 2017 *Two years of MEDPAR data are combined to calculate each study year data point. . Watson Health © IBM Corporation 2019 21
Winner Exclusion Hospitals are ineligible to be considered 100 Top hospital winners if any of the following apply: Rules – An observed inpatient mortality or complications rate that is statistically worse than expected (99% confidence) and above the outlier group 75th percentile trim point – An outlier value for inpatient expense or operating profit margin (Interquartile Range (IQR) Methodology) – A negative operating profit margin – Hospital had data for only 1 of the 3 HAI measures included in the medium community hospital comparison group (See HAI for details) – Hospital has had a 100 Top hospital award rescinded by the Watson Health 100 Top Program within 3 years Note: If a hospital meets a winner exclusion rule, this does NOT mean the hospital would have been a winner. It means they are excluded from consideration when final ranking and selection of winners occurs. Watson Health © IBM Corporation 2019 22
General Ranking Methodology 2017 performance 2013-2017 rate of improvement – Uses most current public data (various – Regression line t-statistic is produced data sets ending in 2017) to rank each measure – Each measure ranked independently – Each measure ranked independently by peer comparison group by peer comparison group – Ranks are weighted, summed and the – Ranks are weighted, summed and the sum is re-ranked by comparison group sum is re-ranked by comparison group to determine each hospital’s overall to determine each hospital’s overall performance score rate of improvement score – Winners are the top scoring overall – Trend results are presented to inform performers in each comparison group leadership decision-making. They are not used in the selection of winners. Watson Health © IBM Corporation 2019 23
Inpatient Mortality Two years of MEDPAR data are combined for each data point (2016, 2017) and Complications – Includes Medicare Advantage (HMO) encounter records Watson Health risk models are used to produce expected values (See methodology notes for details) Normalized z-score is the ranked metric – Indicates whether the observed is significantly different than the expected value; takes into account the effect of small numbers Risk-adjusted index is reported (Ratio of observed to normalized expected value) Hospitals with statistically bad performance on one or more of these metrics are winner excluded (See winner exclusions) Watson Health © IBM Corporation 2019 24
Healthcare- CY 2017 data from CMS Hospital Compare 2018 Q3 Release Associated – CMS Standardized Infection Ratio (SIR) for six healthcare- Infections associated infections (HAIs) – Observed HAI count for all eligible inpatient days of service or procedures for all inpatients (eligible days/procedures vary by HAI) – CMS risk models are used to produce expected values Composite measure is the mean of the included HAIs – For each HAI, we calculate a normalized z-score – The mean of the normalized z-scores is the ranked composite metric – We report the mean of the included HAI SIRs; also the individual HAI SIRs Included HAIs vary by comparison group, due to data availability – A hospital must have data for the study minimum required number of HAIs to be in-study (See table next page) – Medium community hospitals with only 1 of the 3 required HAIs are in-study but winner excluded Watson Health © IBM Corporation 2019 25
Included Healthcare-Associated Infections by Comparison Group Compare Group Included HAIs Min # HAIs Major Teaching HAI-1, HAI-2, HAI-3, HAI-4, HAI-5, HAI-6 4 Teaching HAI-1, HAI-2, HAI-3, HAI-5, HAI-6 (SSI:Hyst 4 excluded) Large Community HAI-1, HAI-2, HAI-3, HAI-5, HAI-6 (SSI:Hyst 4 excluded) Medium Community* HAI-1, HAI-2, HAI-6 (CLABSI, CAUTI, C. diff 1 INCLUDED) Small Community HAIs NOT RANKED for Small Community NA Hospitals * Medium community hospitals with only 1 of the 3 included HAIs are in-study but winner excluded HAI Name Definition HAI-1 CLABSI Central line-associated bloodstream infections in ICUs and select wards HAI-2 CAUTI Catheter-associated urinary tract infections in ICUs and select wards HAI-3 SSI: Colon Surgical site infection from colon surgery HAI-4 SSI: Hyst Surgical site infection from abdominal hysterectomy HAI-5 MRSA Methicillin-resistant Staphylococcus aureus blood laboratory-identified events HAI-6 C. diff Clostridium difficile laboratory-identified events (intestinal infections) Watson Health © IBM Corporation 2019 26
30-Day Mortality CMS Hospital Compare 2018 Q3 Release – 3-years combined for each reported data point (July 1-June 30) and Readmission – Medicare Fee For Service ONLY Rates CMS determines pre-existing conditions for risk- adjustment from documentation in patient claim history; not POA coding* – Mortality: Rates for 5 patient groups are included (heart attack, heart failure, pneumonia, COPD, stroke) – Readmissions: Rates for 6 patient groups are included (heart attack, heart failure, pneumonia, THA/TKA arthroplasty, COPD, stroke) The unweighted mean of the included mortality or readmission rates is the ranked and reported metric – The comparison group median value is substituted for individual missing measures – When all mortality rates or all readmission rates are missing, the hospital is excluded *Exception: CMS pneumonia mortality rates use POA codes to identify the initial pneumonia patient cohort. The measures include patients with a principal discharge diagnosis of sepsis (not including severe sepsis) that have a secondary diagnosis of pneumonia (including aspiration pneumonia) coded as POA and no secondary diagnosis of severe sepsis coded as POA. Watson Health © IBM Corporation 2019 27
Severity-Adjusted One year of MEDPAR data is used for each data point (2017) Average Length of – Includes Medicare Advantage (HMO) encounter records Stay Watson Health risk models are used to produce expected values (See methodology notes for details) – Expected values are normalized by comparison group We convert each LOS index (observed/normalized expected) to average length of stay in days (ALOS) by multiplying the index by the Grand Mean LOS of all in- study hospitals ALOS is the ranked and reported metric Watson Health © IBM Corporation 2019 28
Emergency CY 2017 data on emergency department (ED) patients*, from CMS Hospital Compare 2018 Q3 Department Release Throughput We include two ED throughput metrics that are reported Measures in median minutes – Time to admission – Time to discharge for non-admitted patients We calculate the unweighted mean of the two included ED metrics to produce the mean ED throughput measure, which is the ranked and reported measure We also report the individual ED measures for information only *Note: CMS requires hospitals to meet a minimum sample size of submitted records based on ED population per quarter Watson Health © IBM Corporation 2019 29
HCRIS cost report data for hospital fiscal years ending Inpatient Expense in 2017 per Discharge We calculate inpatient expense for each hospital department, sum the results and divide by acute inpatient discharges – Department-level inpatient expense is calculated by multiplying fully allocated cost by the ratio of inpatient charges to total charges for that department – Expense is adjusted for area wage index and casemix (Sourced from CMS) – Research, non-reimbursable and subacute cost centers are excluded We rank and report wage- and casemix- adjusted inpatient expense per discharge Hospitals that are high or low outliers for this measure are not eligible to be benchmark hospitals (IQR methodology) Watson Health © IBM Corporation 2019 30
HCRIS cost report data for hospital fiscal years ending Operating Profit in 2017 Margin We calculate the difference between a hospital’s total operating revenue and total operating expense divided by the total operating revenue We adjust operating expense by adding the net related organization expense (this can be a negative number) – Where a hospital reports expense additions on worksheet G- 2 lines 30-35, with titles containing home office, related org, or other corporate allocation text, we remove the lesser of ‘net related organization expense’ or ‘expense additions’ from total operating expense to avoid double counting net related organization expense (Exception: where reported net related organization expense is negative, we subtract it from total operating expense and do not make any further adjustments) We rank and report adjusted operating profit margin Hospitals that are high or low outliers for this measure are not eligible to be benchmark hospitals (IQR methodology) Watson Health © IBM Corporation 2019 31
HCAHPS Score HCAHPS: Hospital Consumer Assessment of Healthcare Providers and Systems inpatient survey public data set CMS Hospital Compare 2018 Q3 release – All payer dataset (January 1 - December 31, 2017) HCAHPS Score calculated for the overall rating question (“How do patients rate the hospital, overall?”) – For each hospital, the percentage of patients who rated the hospital low, medium or high were multiplied by a factor of 1, 2 or 3, respectively. – The resultant weighted percent for each rating were summed to produce the HCAHPS Score (Max: 300) We rank and report the HCAHPS Score We also report individual questions for information only Watson Health © IBM Corporation 2019 32
Methodology Notes Watson Health risk-adjustment models used to develop expected values for inpatient mortality and complications; severity-adjustment model for average length of stay – Inpatient mortality model only • Excludes records with ‘Do Not Resuscitate’ (Z66; V49.86) coded as POA • Excludes patients admitted to hospice care (discharged from acute care) – All models • Include palliative care patient records (Z515; V66.7) All models use Agency for Healthcare Research & Quality (AHRQ) Clinical Classifications Software (CCS) grouping to develop rate tables for calibrating risk and severity adjustment models Watson Health © IBM Corporation 2019 33
Methodology Notes Inpatient mortality and complications expected values are normalized by multiplying them by the observed/expected ratio for each hospital’s comparison group. A z-score is calculated from each observed and normalized expected value. The z-score is the ranked metric. Inpatient mortality and complications high outliers, used for winner exclusions, are determined by finding the hospitals with statistically worse than expected results at 99% confidence that are also above the outlier group 75th percentile trim point. Length of stay (LOS) expected values are normalized by multiplying them by the observed/expected ratio for each hospital’s comparison group. The LOS Index (observed/normalized expected) is converted into average length of stay in days by multiplying by the mean LOS of the in-study population. Watson Health © IBM Corporation 2019 34
Methodology Notes Due to high frequency of invalid POA indicator code ‘0’ in MEDPAR, we have modified our MEDPAR data processing. – Valid POA codes are retained (N,Y,W,U,1) – Where invalid POA code ‘0’ appears records are processed as follows: • All principal diagnosis codes (dx) are treated as ‘present on admission’ • All secondary dx on the CMS exempt list are treated as exempt • Secondary dx coded ‘Y’ or ‘W’ more than 50 percent of the time in the Watson Health all-payer data base are treated as ‘present on admission’ • All others are treated as not present on admission Note: This reduces false positives for complications and more accurately determines the risk of death and complications, and expected length of stay. Watson Health © IBM Corporation 2019 35
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