Watson Health 100 Top Hospitals Study 2019 - 26th edition | March 4, 2019 - IBM

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Watson Health
100 Top Hospitals Study
2019

26th edition | March 4, 2019
IBM Watson Health™
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Cambridge, MA 02142
800-525-9083
ibm.com/watsonhealth

Watson Health 100 Top Hospitals Study, 2019; 26th edition

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ISBN: 978-1-57372-474-6
Introduction
Contents
                                 Welcome to the 26th edition of the
03  Introduction                 Watson Health 100 Top Hospitals® study
07	2018 100 Top Hospitals       from IBM Watson Health™.
    award winners
13  2018 Everest Award winners   For over 25 years, the 100 Top Hospitals program
19  Findings                     has been producing annual, quantitative studies
35  Methodology                  designed to shine a light on the nation’s highest
51	Appendix A                   performing hospitals and health systems.
53	Appendix B
55	Appendix C:                  The 2019 study of US hospitals began with the
    Methodology details          same goal that has driven each study since the
                                 beginning of the 100 Top Hospitals program:
                                 To identify top performers and deliver insights
                                 that may help all healthcare organizations
                                 better focus their improvement initiatives on
                                 achieving consistent, balanced, and sustainable
                                 high performance.

                                 Illuminating achievement for a
                                 value-based world
                                 Our research is based on clinical, operational, and
                                 patient perception-of-care measures that form
                                 a balanced scorecard. For over 25 years, the
                                 hospitals achieving excellence on our scorecard
                                 inherently set attainable benchmarks for others in
                                 the industry to aspire to over time.

                                 Providing these measures of successful
                                 performance may be especially important today as
                                 the healthcare landscape continues to evolve from
                                 fee-for-service toward value-based care models.

                                                                                       3
100 Top Hospitals winners
 consistently set industry   By finding ways to take balanced performance
 benchmarks for measures     to the next level, the winners of our 100 Top
 like 30-day readmissions,   Hospitals award are identifying opportunities to
 mortality rates, patient    deliver healthcare value to patients, communities,
 experience, and profit      and payers. The performance levels achieved
 margins.                    by these hospitals may motivate their peers to
                             use data, analytics, and benchmarks to close
                             performance gaps.

                             Hospitals do not apply for our 100 Top Hospitals
                             selection process, and award winners do not pay
                             to market their honor.

                             Delivering a transparent assessment
                             To maintain the 100 Top Hospitals study’s integrity
                             and avoid bias, we use public data sources and
                             explain the methodologies we use to calculate
                             outcome metrics. This supports inclusion of
                             hospitals across the country and facilitates
                             consistency of definitions and data.

                             Our national balanced scorecard, based on Norton
                             and Kaplan’s concept1, is the foundation of our
                             research. It is comprised of key measures of
                             hospital performance: inpatient and extended care
                             quality, operational efficiency, financial health, and
                             customer experience. The composite score derived
                             from these measures reflects excellence in hospital
                             care, management, and leadership.

                             In addition, to support consideration of different
                             types of hospitals, the 100 Top Hospitals study
                             categorizes the nation’s hospitals into five groups:
                             major teaching, teaching, large community,
                             medium community, and small community
                             hospitals. This produces benchmarks that are
                             comparable and action-driving across each
                             organizational type. This is important because
                             each kind of hospital has its own set of challenges
                             and opportunities.

4 IBM Watson Health
Yielding a measure of leadership excellence               –– Provided faster emergency care
Since 1993, the 100 Top Hospitals program                 –– Kept expenses low, both in-hospital and
has also sought to shed light on the efficacy                through the aftercare process
of innovative leaders. The methodology is
aimed at identifying leaders who can transform            –– Scored higher on patient ratings of their overall
an organization by pinpointing improvement                   hospital experience
opportunities and adjusting goals for key
performance domains. We believe that higher             Our study projections also indicate that if the
composite scores on the balanced scorecard              benchmarks of performance established by our
typically indicate more effective leadership and a      2019 winners were achieved by all hospitals in the
consistent delivery of value.                           US, the following would be true:
                                                          –– More than 103,000 additional lives could be
The leadership of today’s hospitals, including               saved in-hospital
the board, executive team, and medical staff
leadership, is responsible for ensuring all facets of     –– Over 38,000 additional patients could be
a hospital are performing at similarly high levels           complication-free
in both the short and long term. The 100 Top              –– Over $8.2 billion in inpatient costs could
Hospitals study and analytics provide a view of that         be saved
enterprise performance alignment.
                                                          ––The typical patient could be released from
Comparing the performance of our                            the hospital a half a day sooner and would
2019 winners to nonwinners                                  have 12 percent fewer expenses related to
                                                            the complete episode of care than the median
Using the measures presented in our national
                                                            patient in the US
balanced scorecard, this year’s 100 Top Hospitals
study revealed significant differences between            –– Over 155,000 fewer discharged patients would
award winners and their nonwinning peers.                    be readmitted within 30 days
                                                          –– Patients would spend 17 minutes less in
Our study’s highest-performing hospitals:
                                                             hospital emergency rooms per visit
  –– Had lower inpatient mortality, considering
     patient severity                                   This analysis is based on applying the difference
                                                        between study winners and nonwinners to
  –– Had fewer patient complications
                                                        Medicare patient counts. If the same standards
  –– Delivered care that resulted in fewer HAIs         were applied to all inpatients, the impact would be
                                                        even greater.
  –– Had lower 30-day mortality and 30-day
     readmission rates
                                                        For more details about this study’s findings and the
  –– Sent patients home sooner                          achievements of the 100 Top Hospitals, please see
                                                        the Findings section of this document.

                                                                                                                 5
Welcoming your input                                    In addition to the major studies, customized
 The 100 Top Hospitals program works to ensure           analyses are also available from the 100 Top
 that the measures and methodologies used in our         Hospitals program, including custom benchmark
 studies are fair, consistent, and meaningful. We        reports. Our reports are designed to help
 continually test the validity of our performance        healthcare executives understand how their
 measures and data sources. In addition, as part of      organizational performance compares to peers
 our internal performance improvement process, we        within health systems, states, and markets.
 welcome comments about our study from health
 system, hospital, and physician executives. To          100 Top Hospitals program reports offer a
 submit comments, visit 100tophospitals.com.             two-dimensional view of both performance
                                                         improvement over time, applying the most
                                                         current methodologies across all years of data
 Showcasing the versatility of the                       to produce trends, as well as the most current
 100 Top Hospitals program                               year performance.

 The 100 Top Hospitals research is one of three
                                                         You can read more about these studies, order
 major annual studies of the Watson Health
                                                         customized reports, and view lists of all winners by
 100 Top Hospitals program. To increase
                                                         visiting 100tophospitals.com.
 understanding of trends in specific areas of the
 healthcare industry, the program includes:
    –– 100 Top Hospitals and Everest Award studies       About IBM Watson Health
       Research that annually recognizes the 100         Each day, professionals throughout the health
       top-rated hospitals in the nation based on        ecosystem make powerful progress toward a
       a proprietary, balanced scorecard of overall      healthier future. At IBM Watson Health, we help
       organizational performance, and identifies        them remove obstacles, optimize efforts, and
       those hospitals that also excel at long-          reveal new insights to support the people they
       term rates of improvement in addition to          serve. Working across the landscape, from payers
       performance                                       and providers to governments and life sciences,
    –– 50 Top Cardiovascular Hospitals study             we bring together deep health expertise; proven
       An annual study introduced in 1999 that           innovation; and the power of artificial intelligence
       identifies hospitals demonstrating the highest    to enable our customers to uncover, connect, and
       performance in hospital cardiovascular            act as they work to solve health challenges for
       services for four important patient groups:       people everywhere.
       heart attack, heart failure, coronary artery
       bypass graft and percutaneous coronary            For more information, visit ibm.com/watsonhealth.
       intervention
    –– 15 Top Health Systems study
       An annual study introduced in 2009 that
       provides an objective measure of health
       system performance overall and offers insight
       into the ability of a system’s member hospitals
       to deliver consistent top performance across
       the communities they serve, all based on our
       national health system scorecard

6 IBM Watson Health
Note that the order of hospitals in the following
2019                                                                                       tables does not reflect performance rating.
                                                                                           Hospitals are ordered alphabetically. For full details
100 Top Hospitals                                                                          on these peer groups and the process we used to
                                                                                           select the winning benchmark hospitals*, see the
award winners                                                                              Methodology section of this document.

The Watson Health 100 Top Hospitals® program
is pleased to present the 2019 Watson Health
100 Top Hospitals.

 Major teaching hospitals*
 Hospitals                                                                   Location                     Medicare ID         Total year(s) won
 Advocate Illinois Masonic Medical Center                                    Chicago, IL                  140182              8
 Ascension Providence Hospital                                               Southfield, MI               230019              11
 Banner - University Medical Center Phoenix                                  Phoenix, AZ                  030002              2
 Cedars-Sinai Medical Center                                                 Los Angeles, CA              050625              3
 Garden City Hospital                                                        Garden City, MI              230244              2
 Mayo Clinic Hospital                                                        Jacksonville, FL             100151              2
 Mount Sinai Medical Center                                                  Miami Beach, FL              100034              2
 NorthShore University HealthSystem                                          Evanston, IL                 140010              20
 Saint Francis Hospital and Medical Center                                   Hartford, CT                 070002              8
 Spectrum Health Hospitals                                                   Grand Rapids, MI             230038              10
 St. Joseph Mercy Hospital                                                   Ann Arbor, MI                230156              10
 St. Luke's University Hospital - Bethlehem                                  Bethlehem, PA                390049              7
 The Miriam Hospital                                                         Providence, RI               410012              1
 UCHealth University of Colorado Hospital                                    Aurora, CO                   060024              6
 University of Utah Hospital                                                 Salt Lake City, UT           460009              2
 * Everest Award winners are in bold type.

* To see a full list of our award winners through the years, visit https://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=40019540USEN&.

                                                                                                                                                    7
Teaching hospitals*
   Hospitals                                   Location             Medicare ID   Total year(s) won
   Abbott Northwestern Hospital                Minneapolis, MN      240057        3
   Aspirus Wausau Hospital                     Wausau, WI           520030        7
   Brandon Regional Hospital                   Brandon, FL          100243        7
   BSA Health System                           Amarillo, TX         450231        6
   CHRISTUS St. Michael Health System          Texarkana, TX        450801        3
   Good Samaritan Hospital                     Cincinnati, OH       360134        6
   Lakeland Medical Center                     St. Joseph, MI       230021        2
   Mercy Hospital St. Louis                    St. Louis, MO        260020        7
   Monmouth Medical Center                     Long Branch, NJ      310075        1
   Morton Plant Hospital                       Clearwater, FL       100127        7
   Mount Carmel St. Ann's                      Westerville, OH      360012        2
   Park Nicollet Methodist Hospital            St. Louis Park, MN   240053        5
   Parkview Regional Medical Center            Fort Wayne, IN       150021        4
   PIH Health Hospital - Whittier              Whittier, CA         050169        5
   Riverside Medical Center                    Kankakee, IL         140186        10
   Rose Medical Center                         Denver, CO           060032        12
   Sentara Leigh Hospital                      Norfolk, VA          490046        5
   Sky Ridge Medical Center                    Lone Tree, CO        060112        2
   SSM Health St. Mary's Hospital - Madison    Madison, WI          520083        6
   St. Luke's Hospital                         Cedar Rapids, IA     160045        8
   St. Mark's Hospital                         Salt Lake City, UT   460047        6
   Sycamore Medical Center                     Miamisburg, OH       360239        10
   UCHealth Poudre Valley Hospital             Fort Collins, CO     060010        13
   Utah Valley Hospital                        Provo, UT            460001        1
   West Penn Hospital                          Pittsburgh, PA       390090        5
   * Everest Award winners are in bold type.

8 IBM Watson Health
Large community hospitals*
Hospitals                                                     Location            Medicare ID   Total year(s) won
Advocate Sherman Hospital                                     Elgin, IL           140030        2
Banner Del E. Webb Medical Center                             Sun City West, AZ   030093        1
Baylor Scott & White Medical Center - Grapevine               Grapevine, TX       450563        1
Hoag Hospital Newport Beach                                   Newport Beach, CA   050224        4
IU Health Bloomington Hospital                                Bloomington, IN     150051        1
Mease Countryside Hospital                                    Safety Harbor, FL   100265        11
Memorial Hermann Memorial City Medical Center                 Houston, TX         450610        8
Mercy Health - Anderson Hospital                              Cincinnati, OH      360001        12
Mercy Health - St. Rita's Medical Center                      Lima, OH            360066        4
Mercy Hospital                                                Coon Rapids, MN     240115        7
Mercy Hospital Oklahoma City                                  Oklahoma City, OK   370013        4
Northwestern Medicine Central DuPage Hospital                 Winfield, IL        140242        10
Sarasota Memorial Hospital                                    Sarasota, FL        100087        4
Scripps Memorial Hospital La Jolla                            La Jolla, CA        050324        4
St. Clair Hospital                                            Pittsburgh, PA      390228        5
St. David's Medical Center                                    Austin, TX          450431        10
St. Joseph's Hospital                                         Tampa, FL           100075        3
Texas Health Harris Methodist Hospital Southwest Fort Worth   Fort Worth, TX      450779        4
University of Maryland St. Joseph Medical Center              Towson, MD          210063        1
WellStar West Georgia Medical Center                          LaGrange, GA        110016        3
* Everest Award winners are in bold type.

                                                                                                                    9
Medium community hospitals*
  Hospitals                                  Location             Medicare ID   Total year(s) won
  AdventHealth Wesley Chapel                 Wesley Chapel, FL    100319        2
  Dupont Hospital                            Fort Wayne, IN       150150        5
  East Cooper Medical Center                 Mt. Pleasant, SC     420089        1
  East Liverpool City Hospital               East Liverpool, OH   360096        2
  Garden Grove Hospital Medical Center       Garden Grove, CA     050230        5
  IU Health North Hospital                   Carmel, IN           150161        2
  IU Health West Hospital                    Avon, IN             150158        1
  Logan Regional Hospital                    Logan, UT            460015        9
  Memorial Hermann Katy Hospital             Katy, TX             450847        3
  Mercy Health - Clermont Hospital           Batavia, OH          360236        10
  Mercy Hospital Northwest Arkansas          Rogers, AR           040010        1
  Mercy Medical Center                       Cedar Rapids, IA     160079        7
  Montclair Hospital Medical Center          Montclair, CA        050758        4
  Mountain View Hospital                     Payson, UT           460013        3
  Northwestern Medicine Delnor Hospital      Geneva, IL           140211        1
  St. Luke's Anderson Campus                 Easton, PA           390326        1
  St. Vincent's Medical Center Clay County   Middleburg, FL       100321        1
  UCHealth Medical Center of the Rockies     Loveland, CO         060119        3
  West Valley Medical Center                 Caldwell, ID         130014        6
  Wooster Community Hospital                 Wooster, OH          360036        5
  *Everest Award winners are in bold type.

10 IBM Watson Health
Small community hospitals*
Hospitals                                    Location             Medicare ID   Total year(s) won
Alta View Hospital                           Sandy, UT            460044        6
Aurora Medical Center                        Two Rivers, WI       520034        3
Brigham City Community Hospital              Brigham City, UT     460017        5
Buffalo Hospital                             Buffalo, MN          240076        5
Cedar City Hospital                          Cedar City, UT       460007        8
Hill Country Memorial Hospital               Fredericksburg, TX   450604        8
Lakeview Hospital                            Bountiful, UT        460042        9
Lone Peak Hospital                           Draper, UT           460060        1
Marshfield Medical Center                    Rice Lake, WI        520011        4
Nanticoke Memorial Hospital                  Seaford, DE          080006        1
Parkview Noble Hospital                      Kendallville, IN     150146        2
Parkview Whitley Hospital                    Columbia City, IN    150101        1
Piedmont Mountainside Hospital               Jasper, GA           110225        1
San Dimas Community Hospital                 San Dimas, CA        050588        3
Seton Medical Center Harker Heights          Harker Heights, TX   670080        1
Southern Tennessee Regional Health System    Lawrenceburg, TN     440175        2
Spectrum Health Zeeland Community Hospital   Zeeland, MI          230003        5
St. John Owasso Hospital                     Owasso, OK           370227        3
St. Luke's Hospital - Quakertown             Quakertown, PA       390035        2
Stillwater Medical Center                    Stillwater, OK       370049        2
*Everest Award winners are in bold type.

                                                                                                    11
This award recognizes the boards, executives, and
2019 Everest                                               medical staff leaders who developed and executed
                                                           the strategies that drove the highest rates of
Award winners                                              improvement, resulting in the highest performance
                                                           in the US at the end of five years.
The Watson Health 100 Top Hospitals® Everest
Award honors hospitals that have both the highest          The Everest Award winners are a special group
current performance and the fastest long-term              of the 100 Top Hospitals award winners that, in
improvement in the years of data analyzed.                 addition to achieving benchmark status for one
                                                           year, have simultaneously set national benchmarks
                                                           for the fastest long-term improvement on our
                                                           national balanced scorecard. In 2019, only 15
                                                           organizations achieved this level of performance.

                                                           The 2019 Everest Award winners
                                                           IBM Watson Health™ is pleased to present
                                                           the winners of the 2019 100 Top Hospitals
                                                           Everest Award.

2019 Everest Award winners
Hospitals                                     Location              Medicare ID   Total year(s) won
Advocate Sherman Hospital                     Elgin, IL             140030        2
CHRISTUS St. Michael Health System            Texarkana, TX         450801        1
East Liverpool City Hospital                  East Liverpool, OH    360096        2
Garden City Hospital                          Garden City, MI       230244        1
IU Health Bloomington Hospital                Bloomington, IN       150051        1
Parkview Regional Medical Center              Fort Wayne, IN        150021        1
Parkview Whitley Hospital                     Columbia City, IN     150101        1
Rose Medical Center                           Denver, CO            060032        1
Sentara Leigh Hospital                        Norfolk, VA           490046        2
St. Joseph Mercy Hospital                     Ann Arbor, MI         230156        3
St. Joseph's Hospital                         Tampa, FL             100075        2
St. Mark's Hospital                           Salt Lake City, UT    460047        1
Stillwater Medical Center                     Stillwater, OK        370049        1
UCHealth University of Colorado Hospital      Aurora, CO            060024        1
Utah Valley Hospital                          Provo, UT             460001        1

                                                                                                               13
The value of the Everest Award measures to the                                                   –– What incentives do we need to implement
 healthcare industry                                                                                 for management to achieve the desired
 Leaders facing the challenges of a rapidly changing                                                 improvement more quickly?
 healthcare environment may benefit from unbiased                                                 –– Will the investments we are considering help
 intelligence that provides objective insights into                                                  us achieve improvement goals?
 complex organizational performance. Those
 insights may also help leaders balance short- and                                                –– Can we quantify the long- and short-term
 long-term goals to drive continuous gains in                                                        increases in value our hospital has provided to
 performance and value.                                                                              our community?

 Transparency may present hospital boards and
 CEOs with a public challenge to increase the value                                            How we select the Everest Award winners
 of core services to their communities. Providing                                             Winners of the 100 Top Hospitals Everest
 value is characteristically not a one-time event; it                                         Award set national benchmarks for both fastest
 is a continuous process of increasing worth over                                             rate of improvement and highest current year
 time. The goal of the 100 Top Hospitals program                                              performance on the study’s balanced scorecard.
 is to provide information that can help inform
 the leadership decisions that guide hospitals to                                             Everest Award winners are selected from among
 achieve those objectives.                                                                    the new 100 Top Hospitals award winners. The
                                                                                              national award and the Everest Award are based on
 We believe the greatest value can be achieved                                                a set of measures that reflect performance across
 when leaders integrate knowledge of their                                                    the whole organization.
 organization’s performance compared to
 national benchmarks with information on rates                                                Our methodology for selecting the Everest Award
 of improvement compared to peers. In this way,                                               winners can be summarized in three main steps:
 leaders can determine the effectiveness of long-
                                                                                                   1. Selecting the annual 100 Top Hospitals award
 term strategies that led to current performance and
                                                                                                      winners using our objective methodology*
 understand where to act to course-correct.
                                                                                                      based on publicly available data and a
                                                                                                      balanced scorecard of performance measures
 Our research is designed to help boards and CEOs
                                                                                                      using the most current data available (2017 at
 better answer questions such as:
                                                                                                      the time of this study)
    –– Did our long-term strategies result in a stronger
                                                                                                   2. Using our five-year (2013 - 2017) trending
       hospital across all performance areas?
                                                                                                      methodology to select the 100 hospitals
    –– Did our strategies drive improvement in some                                                   that have shown the fastest, most consistent
       areas but inadvertently cause deteriorating                                                    improvement rates on the same balanced
       performance in others?                                                                         scorecard of performance measures
    –– What strategies will help us increase the rate of                                           3. Identifying those hospitals that ranked in the
       improvement in the right areas to come closer                                                  top 100 on both lists; these hospitals are the
       to national performance levels?                                                                Everest Award winners

 * For full details on how the 100 Top Hospitals winners are selected, see the Methodology section of this document.

14 IBM Watson Health
Combining these two methodologies yields a select                                            For this year’s study, after excluding hospitals
group of Everest Award winners. The number                                                   with insufficient, missing, or invalid data, along
of winners will vary every year, based solely on                                             with hospitals that would skew study results (for
performance in the two dimensions.                                                           example, specialty hospitals), we had a database
                                                                                             study group of 2,752 hospitals.

                                                                                             Comparison groups
                                                                                             Because bed size and teaching status have an
   Top                              Everest             Most improved                        effect on the types of patients a hospital treats
   performance,                     Award                performance,                        and the scope of services it provides, we assigned
   current year                     winners                   five years                     each hospital in the study database to one of
                                                                                             five comparison groups according to its size and
                                                                                             teaching status (for definitions of each group, see
                                                                                             the Methodology section of this document):
                                                                                                –– Major teaching hospitals
                                                                                                ––Teaching hospitals
Data sources
As with all 100 Top Hospitals studies, our                                                      –– Large community hospitals
methodology is designed to be objective, and                                                    –– Medium community hospitals
all data comes from public sources. We build a
database of short-term, acute care, nonfederal US                                               –– Small community hospitals
hospitals that treat a broad spectrum of patients.
The primary data sources are the Medicare Provider                                          To support evaluating hospitals fairly and
Analysis and Review (MEDPAR) patient claims data                                            comparing them to like hospitals, we use these
set, the Centers for Medicare & Medicaid Services                                           comparison groups for all scoring and ranking to
Hospital Compare hospital performance data set,                                             uncover winners. For more information on how we
and the Hospital Cost Report Information System                                             build the database, see the Methodology section.
Medicare Cost Report file. We use the most recent
five years of data available for trending and the
most current year for selection of winners*.

Residency program information, used in classifying
teaching hospitals, is from the Accreditation
Council for Graduate Medical Education (AMA-
accredited programs) and the American
Osteopathic Association.

* Hospital inpatient mortality and complications are based on two years of data combined for each study year data point. See the Performance Measures section of this
document for details.

                                                                                                                                                                         15
Performance measures                                  present-on-admission (POA) data in our proprietary
 Both the 100 Top Hospitals and the Everest Awards      risk models. POA coding became available in the
 are based on a set of measures that, taken together,   2009 MEDPAR data set.
 are designed to assess balanced performance
 across the organization, reflecting the leadership     For the inpatient mortality and complications
 effectiveness of board members, management, and        (clinical measures with low frequency of
 medical and nursing staff. These measures fall into    occurrence), we combine two years of data for
 five domains of performance: inpatient outcomes,       each study year to stabilize results. This year, we
 extended outcomes, operational efficiency,             combined data sets as follows:
 financial health, and patient experience.                –– Study year 2017 = 2017 and 2016 MEDPAR
                                                             data sets
 The 10 measures used to select the 2019
 winners are:                                             –– Study year 2016 = 2016 and 2015 MEDPAR
                                                             data sets
    1. Risk-adjusted inpatient mortality index
                                                          –– Study year 2015 = 2015 and 2014 MEDPAR
    2. Risk-adjusted complications index                     data sets
    3. Mean healthcare-associated infection index         –– Study year 2014 = 2014 and 2013 MEDPAR
    4. Mean 30-day risk-adjusted mortality rate              data sets
       (includes acute myocardial infarction [AMI]),      –– Study year 2013 = 2013 and 2012 MEDPAR
       heart failure [HF], pneumonia, chronic                data sets
       obstructive pulmonary disease [COPD],
       and stroke)                                      For specific data periods used for each measure,
    5. Mean 30-day risk-adjusted readmission rate       see page 47 of the Methodology section.
       (includes AMI, HF, pneumonia, THA/TKA,
       COPD, and stroke)
    6. Severity-adjusted average length of stay
    7. Mean emergency department throughput
       (in minutes)
    8. Case mix- and wage-adjusted inpatient
       expense per discharge
    9. Adjusted operating profit margin
    10. Hospital Consumer Assessment of
        Healthcare Providers and Systems score
        (overall hospital performance)

 For full details, including calculation and scoring
 methods, see the Methodology section. We use

16 IBM Watson Health
Ranking and five-year trend summary
To select the 100 Top Hospitals award winners,
we rank hospitals on current year performance
on each of the study measures relative to other
hospitals in their comparison group. We then sum
each hospital’s performance-measure rankings and
re-rank them, overall, to arrive at a final rank for
the hospital. The hospitals with the best final ranks
in each comparison group are selected as the 100
Top Hospitals award winners. See the Methodology
section for details on the ranking methodology,
including measures, weighting, and selection of
100 Top Hospitals winners.

Separately, for every hospital in the study, we
calculate a t-statistic that measures five-year
performance improvement for each of the included
performance measures. This statistic measures the
direction and magnitude of change in performance,
and the statistical significance of that change. We
rank hospitals on the basis of their performance
improvement t-statistic on each of the study
measures relative to other hospitals in their
comparison group. We then sum each hospital’s
performance-measure rankings and re-rank them
overall, to arrive at a final rank for the hospital.
The hospitals with the best final rank in each
comparison group are selected as the performance
improvement benchmark hospitals. See the
Methodology section for details on trending,
including measure weighting.

As our final step, we find those hospitals that are
identified as benchmarks on both lists. These
hospitals are the Everest Award winners.

                                                        17
–– Over 155,000 fewer discharged patients
Findings                                                                                       would be readmitted within 30 days
                                                                                            –– Patients would spend 17 minutes less in
The Watson Health 100 Top Hospitals® study                                                     hospital emergency rooms per visit
shines a light on the top-performing hospitals in
the country. According to publicly available data                                        We based this analysis on the Medicare patients
and our transparent methodologies, these industry                                        included in this study. If the same standards were
leaders appear to have successfully negotiated                                           applied to all inpatients, the impact would be
the fine line between running highly effective                                           even greater.
operations and being innovative and forward-
thinking in ways that grow their organizations over                                      Note: All currency amounts listed in this 100 Top
the short and long term.                                                                 Hospitals study are in US dollars.

Year after year, the public data we have gathered
for the 100 Top Hospitals studies has provided                                           How the winning hospitals compared to
numerous examples of benchmark hospitals’                                                their peers
clinical, financial and operational excellence and                                       In this section, we show how the 100 Top Hospitals
affirmed the validity and stability of this approach                                     performed within their comparison groups
to performance measurement2–28.                                                          (major teaching, teaching, large community,
                                                                                         medium community, and small community
The study is more than a list of accomplishments; it                                     hospitals), compared with nonwinning peers. For
is a method US hospital and health system leaders                                        performance measure details and definitions of
can use to help guide their own performance                                              each comparison group, see the Methodology
improvement initiatives. By highlighting what the                                        section of this document.
highest-performing leaders around the country are
doing well, we create aspirational benchmarks for                                        Note: In Tables 1 through 6, data for the 100 Top
the rest of the industry.                                                                Hospitals award winners is labeled “Benchmark,”
                                                                                         and data for all hospitals, excluding award winners,
Based on comparisons between the 100 Top                                                 is labeled “Peer group.” In columns labeled
Hospitals study winners and a peer group of similar                                     “Benchmark compared with peer group,” we
hospitals that were not winners, we found that                                           calculated the actual and percentage difference
if all hospitals performed at the level of this                                          between the benchmark hospital scores and the
year’s winners:                                                                          peer group scores.
   –– Over 103,000 additional lives could be saved
      in-hospital                                                                        100 Top Hospitals had better survival rates*

   –– Over 38,000 additional patients could be                                              –– Overall, the winners had 24% fewer deaths
      complication-free                                                                        than expected (0.76 index), considering patient
                                                                                               severity, while their nonwinning peers had 1%
   –– Over $8.2 billion in inpatient costs could                                               more deaths than would be expected (1.01
      be saved                                                                                 index) (Table 1)
   ––The typical patient could be released from                                             –– Small community hospitals had the most
     the hospital a half day sooner and would                                                  dramatic difference between winners and
     have 12% fewer expenses related to the                                                    nonwinners; the winning small hospital median
     complete episode of care than the median                                                  mortality rate was 47% lower than nonwinning
     patient in the US                                                                         peers (Table 6)

* Risk-adjusted measures are normalized by comparison group, so results cannot be compared across comparison groups.

                                                                                                                                                19
–– Medium-sized community hospitals also had                                                 –– Overall, nationally, there were 35% fewer
       a significantly lower median mortality index                                                 infections than expected at winning hospitals
       values than nonwinning peer hospitals, with a                                                (0.65 standardized infection ratio [SIR]
      29.5% lower mortality index (Table 5)                                                         median), compared to 19% fewer infections
                                                                                                    at peer nonwinning hospitals (0.81 SIR
 100 Top Hospitals had fewer patient complications*                                                 median)*** (Table 1)
    –– Overall, patients at the winning hospitals had                                            –– On the HAI composite index, medium
       23% fewer complications than expected (0.77                                                  community hospitals showed the widest
       index), considering patient severity, while                                                  difference between winning benchmark
       their nonwinning peers had only 5% fewer                                                     hospital performance and nonwinners,
       complications than expected (0.95 index)***                                                  with the winning median HAI composite
       (Table 1)                                                                                    index 30% lower than the median value of
                                                                                                    nonwinners (0.51 and 0.73 median SIR values,
    –– For complications, as with inpatient mortality,
                                                                                                    respectively) (Table 5)
       small community hospitals had the most
       dramatic difference between winners and                                                   ––The winners among major teaching hospitals
       nonwinners; the winning small hospital median                                               had 19% fewer infections than expected (0.81
       observed-to-expected ratio of complications                                                 SIR median), while their nonwinning major
       was 41.5% lower than nonwinning peers’ index                                                teaching peers had only 7% fewer infections
       value (0.54 versus 0.92) (Table 6)                                                          than expected (0.93 SIR median) (Table 2)

 100 Top Hospitals had fewer healthcare-                                                     100 Top Hospitals had lower 30-day mortality
 associated infections                                                                       and readmission rates
 Healthcare-associated infections (HAIs)**,                                                  Several patient groups are included in the 30-
 captures information about the quality of inpatient                                         day mortality and readmission extended care
 care. Based on nation-wide data availability, we                                            composite metrics. The mean 30-day mortality
 built a composite measure of HAI performance                                                rate includes heart attack (AMI), heart failure (HF),
 at the hospital level, considering up to six HAIs,                                          pneumonia, chronic obstructive pulmonary disease
 depending on assigned comparison group. (The                                                (COPD), and stroke patient groups. The mean 30-
 HAI measure is not ranked for small community                                               day readmission rate includes AMI, HF, pneumonia,
 hospitals in the 2019 study.) The six reported HAIs                                         total hip arthroplasty and/or total knee arthroplasty
 are: methicillin-resistant staphylococcus aureus                                            (THA/TKA), COPD, and stroke patient groups.
 (MRSA-bloodstream), central line-associated blood
                                                                                                 –– Mean 30-day mortality and readmission rates
 stream infections, catheter-associated urinary tract
                                                                                                    were lower at the winning hospitals than
 infections, clostridium difficile (C.diff), surgical site
                                                                                                    nonwinning hospitals, across all comparison
 infections (SSIs) following colon surgery, and SSIs
                                                                                                    groups (by 0.6 and 0.4 percentage points,
 following an abdominal hysterectomy.
                                                                                                    respectively) (Table 1)

 * Risk-adjusted measures are normalized by comparison group, so results cannot be compared across comparison groups.
 ** As developed by the National Healthcare Safety Network and reported by the Centers for Medicare & Medicaid Services (CMS) in the public Hospital Compare data set.
 *** Mortality, complications and HAI index values are calculated using a subset of hospitals from which the measures are developed, which is why there will be instances
 where both peer and bench indexes are below 1.0 .

20 IBM Watson Health
–– Major teaching hospital winners continued                                                ––The most dramatic difference in emergency
      to demonstrate the best 30-day mortality                                                   department (ED) service delivery times
      performance among all hospital comparison                                                  between winning hospitals and their peers
      groups, with a median rate at 11.7%) (Table 2)                                             occurred in the major teaching category where
                                                                                                 there was 69.3 minutes less time-to-service;
   –– Small community hospital winners again had
                                                                                                 winning teaching hospitals followed right
      the best 30-day readmission performance
                                                                                                 behind with 41.5 minutes less time-to-service
      among all comparison groups (14.3%)
                                                                                                 (Tables 2 and 3)
      (Table 6)
                                                                                               –– However, major teaching hospitals had the
   –– Major teaching hospital winners outperformed
                                                                                                  longest throughput times of all comparison
      nonwinners on 30-day readmissions by the
                                                                                                  groups, at 246.5 minutes for winners and
      greatest margin (0.7 percentage points)
                                                                                                  315.8 minutes for nonwinners (Tables 2
      (Table 2)
                                                                                                  through 6)
Patients treated at 100 Top Hospitals returned                                                 –– Small community hospitals had the shortest
home sooner*                                                                                      throughput times of all comparison groups for
                                                                                                  both winning and nonwinning hospitals (163
   –– Overall, winning hospitals had a median
                                                                                                  and 182.5 minutes, respectively) (Table 6)
      severity-adjusted average length of stay (LOS)
      that was a 0.5 day shorter than peers (Table 1)
                                                                                            100 Top Hospitals had lower inpatient expenses
   –– Both the winning small- and medium-sized
                                                                                               ––The findings show that overall, and in all
      community hospitals had a large difference
                                                                                                 comparison groups, the winning hospital
      from the non-winners in average LOS, with
                                                                                                 median for case mix- and wage-adjusted
      a median average LOS of 0.7 days shorter
                                                                                                 inpatient expense per discharge was lower
      (Tables 5 and 6)
                                                                                                 than the median for nonwinner peers this
   –– Among major teaching hospitals, there was                                                  year (Tables 1 through 6)
      also a large difference between winners and
                                                                                               –– Medium community hospital winners and
      nonwinners on median average LOS, at 4.3
                                                                                                  nonwinners had the lowest case mix- and
      days versus 4.9 days (a 13.0% difference)
                                                                                                  wage-adjusted inpatient expense per
      (Table 2)
                                                                                                  discharge than any other comparison
                                                                                                  group with expenses at $5,894 and $6,742,
Patients spent less time in 100 Top Hospitals
                                                                                                  respectively (Table 5)
emergency departments
                                                                                               ––The largest difference in expenses between
   –– Overall, winning hospitals had shorter median
                                                                                                 and winning and non-winning hospitals was
      wait times for emergency services** than their
                                                                                                 found in the small hospital comparison group
      peers, by 8% (Table 1)
                                                                                                 with a difference of $1,340 (Table 6)

* Risk-adjusted measures are normalized by comparison group, so results cannot be compared across comparison groups.
** Includes median time from ED arrival to ED departure for admitted patients and median time from ED arrival to ED departure for non-admitted patients.

                                                                                                                                                           21
100 Top Hospitals were more profitable
    –– Overall, winning hospitals had a median
       operating profit margin that was 11.9
       percentage points higher than nonwinning
       hospitals (15.6% versus 3.8%) (Table 1)
    –– Profitability difference was the most dramatic
       in the medium community hospital group,
       where winners had operating profit margins
       that were 17.1 percentage points higher than
       nonwinners (Table 5)
    –– Medium hospital winners also had the largest
       median operating profit margin of any winning
       group at 21.5% (Table 5)
    –– In contrast, small community hospital winners
       had the lowest median operating profit margin
       of any winning group at 12.9% (Table 6)

 Patients rated 100 Top Hospitals higher than
 peer hospitals
    –– Patients treated at the 100 Top Hospitals
       reported a better overall hospital experience
       than those treated in peer hospitals, with
       a 3.0% higher median Hospital Consumer
       Assessment of Healthcare Providers and
       Systems (HCAHPS) overall rating score
       (Table 1)
    ––The winning small community hospitals had
      the highest median HCAHPS score of all
      comparison groups, at 273 versus 265 for
      nonwinners (maximum score is 300) (Table 6)
    –– Large community hospital winners had the
       biggest performance difference over peers
       (4.0 % higher HCAHPS scores) among all
       comparison groups (Table 4)

22 IBM Watson Health
Table 1. National performance comparisons (all hospitals in study)
Domain              Performance measure                                   Medians                              Benchmark compared with peer group
                                                                          Benchmark
                                                                          hospitals           Peer hospitals                Percent
                                                                          (winners)           (nonwinners)     Difference   difference    Comments

Clinical            Inpatient Mortality Index         1
                                                                          0.76                1.01             -0.25        -24.9%        Lower mortality
Outcomes
                    Complications Index       1
                                                                          0.77                0.95             -0.18        -18.7%        Fewer complications
                    HAI Index    2
                                                                          0.65                0.81             -0.2         -19.3%        Fewer infections
Extended            30-Day Mortality Rate3                                12.0                12.7             -0.6         n/a6          Lower 30-day mortality
Outcomes
                    30-Day Readmission Rate3                              14.5                14.9             -0.4         n/a6          Fewer 30-day readmissions
Operational         Average Length of Stay        1
                                                                          4.3                 4.7              -0.5         -10.1%        Shorter stays
Efficiency
                    ED Throughput Measure             4
                                                                          196.8               214.0            -17.3        -8.1%         Less time to service
                    Inpatient Expense per Discharge          5
                                                                          $6,150              $6,980           -$830        -11.9%        Lower inpatient cost
Financial
                    Operating Profit Margin5                              15.6                3.8              11.9         n/a6          Higher profitability
Health
Patient             Hospital Consumer Assessment of                       271.0               263.0            8.0          3.0%          Better patient experience
Experience          Healthcare Providers and Systems
                    (HCAHPS) score4

1
    Mortality, complications and average length of stay based on Present on Admission (POA)-enabled risk models applied to MedPAR 2016 and 2017 data (ALOS 2017 only).
2
    Healthcare-Associated Infections (HAI) data from CMS Hospital Compare Jan 1, 2017 - Dec 31, 2017 data set (excluding Small Community Hospitals).
3
    30-day rates from CMS Hospital Compare July 1, 2014-June 30, 2017 data set.
4
    ED measure and HCAHPS data from CMS Hospital Compare Jan 1, 2017-Dec 31, 2017 data set.
5
    Inpatient expense and operating profit margin data from CMS Hospital Cost Report Information System (HCRIS) data file, 2017.
6
    We do not calculate percent difference for this measure because it is already a percent value.

                                                                                                                                                                           23
Table 2. Major teaching hospital performance comparisons
  Domain           Performance measure                                Medians                                Benchmark compared with peer group
                                                                      Benchmark          Peer hospitals      Difference     Percent       How winning benchmark
                                                                      hospitals          (nonwinners)                       difference    hospitals outperformed
                                                                      (winners)                                                           nonwinning peer hospitals
  Clinical         Inpatient Mortality Index1                         0.82               1.01                -0.19          -19.0%        Lower mortality
  Outcomes
                   Complications Index     1
                                                                      0.95               1.03                -0.08          -8.0%         Fewer complications
                   HAI Index   2
                                                                      0.81               0.93                -0.1           -13.9%        Fewer infections
  Extended         30-Day Mortality Rate3                             11.7               12.2                -0.6           n/a6          Lower 30-day mortality
  Outcomes
                   30-Day Readmission Rate3                           14.6               15.4                -0.7           n/a6          Fewer 30-day readmissions
  Operational      Average Length of Stay          1
                                                                      4.3                4.9                 -0.6           -13.0%        Shorter stays
  Efficiency
                   ED Throughput Measure               4
                                                                      246.5              315.8               -69.3          -21.9%        Less time to service
                   Inpatient Expense per Discharge             5
                                                                      $6,761             $8,027              -$1,267        -15.8%        Lower inpatient cost
  Financial        Operating Profit Margin         5
                                                                      13.1               2.6                 10.6           n/a 6
                                                                                                                                          Higher profitability
  Health
  Patient          HCAHPS Score4                                      270.0              263.0               7.0            2.7%          Better patient experience
  Experience

  1
    Mortality, complications and average length of stay based on Present on Admission (POA)-enabled risk models applied to MedPAR 2016 and 2017 data (ALOS 2017 only).
  2
    Healthcare-Associated Infections (HAI) data from CMS Hospital Compare Jan 1, 2017 - Dec 31, 2017 data set (excluding Small Community Hospitals).
  3
    30-day rates from CMS Hospital Compare July 1, 2014-June 30, 2017 data set.
  4
    ED measure and HCAHPS data from CMS Hospital Compare Jan 1, 2017-Dec 31, 2017 data set.
  5
    Inpatient expense and operating profit margin data from CMS Hospital Cost Report Information System (HCRIS) data file, 2017.
  6
    We do not calculate percent difference for this measure because it is already a percent value.

  Table 3. Teaching hospital performance comparisons
  Domain           Performance measure                                Medians                                Benchmark compared with peer group
                                                                      Benchmark          Peer hospitals      Difference     Percent       How winning benchmark
                                                                      hospitals          (nonwinners)                       difference    hospitals outperformed
                                                                      (winners)                                                           nonwinning peer hospitals
  Clinical         Inpatient Mortality Index1                         0.82               1.00                -0.18          -18.2%        Lower mortality
  Outcomes
                   Complications Index     1
                                                                      0.79               1.00                -0.20          -20.3%        Fewer complications
                   HAI Index2                                         0.62               0.84                -0.2           -26.5%        Fewer infections
  Extended         30-Day Mortality Rate       3
                                                                      12.1               12.7                -0.6           n/a 6
                                                                                                                                          Lower 30-day mortality
  Outcomes
                   30-Day Readmission Rate                 3
                                                                      14.5               15.0                -0.5           n/a 6
                                                                                                                                          Fewer 30-day readmissions
  Operational      Average Length of Stay          1
                                                                      4.4                4.9                 -0.5           -11.2%        Shorter stays
  Efficiency
                   ED Throughput Measure               4
                                                                      199.0              240.5               -41.5          -17.3%        Less time to service
                   Inpatient Expense per Discharge5                   $6,152             $6,797              -$645          -9.5%         Lower inpatient cost
  Financial        Operating Profit Margin5                           15.4               5.1                 10.3           n/a6          Higher profitability
  Health
  Patient          HCAHPS Score4                                      270.0              263.0               7.0            2.7%          Better patient experience
  Experience

  1
    Mortality, complications and average length of stay based on Present on Admission (POA)-enabled risk models applied to MedPAR 2016 and 2017 data (ALOS 2017 only).
  2
    Healthcare-Associated Infections (HAI) data from CMS Hospital Compare Jan 1, 2017 - Dec 31, 2017 data set (excluding Small Community Hospitals).
  3
    30-day rates from CMS Hospital Compare July 1, 2014-June 30, 2017 data set.
  4
    ED measure and HCAHPS data from CMS Hospital Compare Jan 1, 2017-Dec 31, 2017 data set.
  5
    Inpatient expense and operating profit margin data from CMS Hospital Cost Report Information System (HCRIS) data file, 2017.
  6
    We do not calculate percent difference for this measure because it is already a percent value.

24 IBM Watson Health
Table 4. Large community hospital performance comparisons
Domain           Performance measure                                Medians                                Benchmark compared with peer group
                                                                    Benchmark          Peer hospitals      Difference     Percent       How winning benchmark
                                                                    hospitals          (nonwinners)                       difference    hospitals outperformed
                                                                    (winners)                                                           nonwinning peer hospitals
Clinical         Inpatient Mortality Index1                         0.80               1.02                -0.22          -21.8%        Lower mortality
Outcomes
                 Complications Index     1
                                                                    0.86               1.00                -0.14          -14.0%        Fewer complications
                 HAI Index   2
                                                                    0.70               0.82                -0.1           -14.2%        Fewer infections
Extended         30-Day Mortality Rate3                             12.3               12.6                -0.3           n/a6          Lower 30-day mortality
Outcomes
                 30-Day Readmission Rate3                           14.5               15.1                -0.6           n/a6          Fewer 30-day readmissions
Operational      Average Length of Stay          1
                                                                    4.6                5.0                 -0.4           -8.3%         Shorter stays
Efficiency
                 ED Throughput Measure               4
                                                                    218.8              238.5               -19.8          -8.3%         Less time to service
                 Inpatient Expense per Discharge             5
                                                                    $6,231             $6,776              -$544          -8.0%         Lower inpatient cost
Financial        Operating Profit Margin         5
                                                                    16.4               6.9                 9.6            n/a 6
                                                                                                                                        Higher profitability
Health
Patient          HCAHPS Score4                                      272.5              262.0               10.5           4.0%          Better patient experience
Experience

1
  Mortality, complications and average length of stay based on Present on Admission (POA)-enabled risk models applied to MedPAR 2016 and 2017 data (ALOS 2017 only).
2
  Healthcare-Associated Infections (HAI) data from CMS Hospital Compare Jan 1, 2017 - Dec 31, 2017 data set (excluding Small Community Hospitals).
3
  30-day rates from CMS Hospital Compare July 1, 2014-June 30, 2017 data set.
4
  ED measure and HCAHPS data from CMS Hospital Compare Jan 1, 2017-Dec 31, 2017 data set.
5
  Inpatient expense and operating profit margin data from CMS Hospital Cost Report Information System (HCRIS) data file, 2017.
6
  We do not calculate percent difference for this measure because it is already a percent value.

Table 5. Medium community hospital performance comparisons
Domain           Performance measure                                Medians                                Benchmark compared with peer group
                                                                    Benchmark          Peer hospitals      Difference     Percent       How winning benchmark
                                                                    hospitals          (nonwinners)                       difference    hospitals outperformed
                                                                    (winners)                                                           nonwinning peer hospitals
Clinical         Inpatient Mortality Index1                         0.68               0.97                -0.29          -29.5%        Lower mortality
Outcomes
                 Complications Index     1
                                                                    0.72               0.99                -0.26          -26.8%        Fewer complications
                 HAI Index2                                         0.51               0.73                -0.2           -30.0%        Fewer infections
Extended         30-Day Mortality Rate       3
                                                                    12.1               12.7                -0.6           n/a 6
                                                                                                                                        Lower 30-day mortality
Outcomes
                 30-Day Readmission Rate                 3
                                                                    14.8               15.0                -0.3           n/a 6
                                                                                                                                        Fewer 30-day readmissions
Operational      Average Length of Stay          1
                                                                    4.2                4.9                 -0.7           -13.9%        Shorter stays
Efficiency
                 ED Throughput Measure               4
                                                                    188.8              213.5               -24.8          -11.6%        Less time to service
                 Inpatient Expense per Discharge5                   $5,894             $6,742              -$848          -12.6%        Lower inpatient cost
Financial        Operating Profit Margin5                           21.5               4.4                 17.1           n/a6          Higher profitability
Health
Patient          HCAHPS Score4                                      271.5              262.0               9.5            3.6%          Better patient experience
Experience

1
  Mortality, complications and average length of stay based on Present on Admission (POA)-enabled risk models applied to MedPAR 2016 and 2017 data (ALOS 2017 only).
2
  Healthcare-Associated Infections (HAI) data from CMS Hospital Compare Jan 1, 2017 - Dec 31, 2017 data set (excluding Small Community Hospitals).
3
  30-day rates from CMS Hospital Compare July 1, 2014-June 30, 2017 data set.
4
  ED measure and HCAHPS data from CMS Hospital Compare Jan 1, 2017-Dec 31, 2017 data set.
5
  Inpatient expense and operating profit margin data from CMS Hospital Cost Report Information System (HCRIS) data file, 2017.
6
  We do not calculate percent difference for this measure because it is already a percent value.

                                                                                                                                                                         25
Table 6. Small community hospital comparisons
  Domain            Performance measure                                  Medians                                  Benchmark compared with peer group
                                                                         Benchmark           Peer hospitals       Difference      Percent       How winning benchmark
                                                                         hospitals           (nonwinners)                         difference    hospitals outperformed
                                                                         (winners)                                                              nonwinning peer hospitals
  Clinical          Inpatient Mortality Index1                           0.53                1.01                 -0.47           -47.2%        Lower mortality
  Outcomes
                    Complications Index      1
                                                                         0.54                0.92                 -0.38           -41.5%        Fewer complications
                    HAI Index   2
                                                                         n/a                 n/a                  n/a             n/a           n/a
  Extended          30-Day Mortality Rate3                               12.1                12.7                 -0.6            n/a6          Lower 30-day mortality
  Outcomes
                    30-Day Readmission Rate3                             14.3                14.7                 -0.3            n/a6          Fewer 30-day readmissions
  Operational       Average Length of Stay       1
                                                                         4.2                 4.9                  -0.7            -13.6%        Shorter stays
  Efficiency
                    ED Throughput Measure            4
                                                                         163.0               182.5                -19.5           -10.7%        Less time to service
                    Inpatient Expense per Discharge        5
                                                                         $6,039              $7,379               -$1,340         -18.2%        Lower inpatient cost
  Financial         Operating Profit Margin      5
                                                                         12.9                1.8                  11.0            n/a 6
                                                                                                                                                Higher profitability
  Health
  Patient           HCAHPS Score4                                        273.0               265.0                8.0             3.0%          Better patient experience
  Experience

  1
    Mortality, complications and average length of stay based on Present on Admission (POA)-enabled risk models applied to MedPAR 2016 and 2017 data (ALOS 2017 only).
  2
    Healthcare-Associated Infections (HAI) data from CMS Hospital Compare Jan 1, 2017 - Dec 31, 2017 data set (excluding Small Community Hospitals).
  3
    30-day rates from CMS Hospital Compare July 1, 2014-June 30, 2017 data set.
  4
    ED measure and HCAHPS data from CMS Hospital Compare Jan 1, 2017-Dec 31, 2017 data set.
  5
    Inpatient expense and operating profit margin data from CMS Hospital Cost Report Information System (HCRIS) data file, 2017.
  6
    We do not calculate percent difference for this measure because it is already a percent value.

 US map and states by region                                                                 This analysis allows us to observe geographic
 The US maps featured in Figures 1 and 2                                                     patterns in performance. Among our observations:
 provide a visual representation of the variability                                                ––The Midwest continues to be the frontrunner
 in performance across the country for the current                                                   in percentage of states in the top two
 and previous studies (2019 and 2018). Additionally,                                                 performance quintiles versus other regions,
 Table 7 shows each state’s rank quintile                                                            although with a slight decrease in this lead
 performance, grouped by geographic region, for                                                      this year (83.3% of states in 2019 versus
 the current and previous year studies.                                                              91.7% in 2018)

 To produce this data, we calculated the 100 Top                                                   ––The Northeast continues to show the poorest
 Hospitals measures at the state level*, ranked each                                                 performance overall, by a large margin in both
 measure, then weighted and summed the ranks to                                                      years, with 66.7% of its states in the bottom
 produce an overall state performance score. States                                                  two quintiles in 2019 and 77.8% in 2018
 were ranked from best to worst on the overall score,                                              ––The South continues to show the same pattern
 and the results are reported as rank quintiles.                                                     as last year with the majority of its states in
                                                                                                     the bottom two quintiles (47.1% in 2019 and
                                                                                                     52.9% in 2018)

 * Each state measure is calculated from the acute care hospital data for that state (short-term, general acute care hospitals; critical access hospitals; and cardiac, orthopedic,
   and women’s hospitals) with valid data for the included measures. Inpatient mortality, complications, and average LOS are aggregated from MEDPAR patient record data. HAIs,
   30-day mortality rates, and 30-day readmission rates are aggregated from the numerator and denominator data for each hospital. Inpatient expense per discharge, operating
   profit margin, and HCAHPS scores are hospital values weighted by the number of acute discharges at each hospital. Mean ED throughput is calculated by averaging the median
   minutes of member hospitals to produce the unweighted mean minutes for each ED measure, then averaging the two ED measures to produce the state-level unweighted ED
   throughput measure. For expense, profit, and HCAHPS, a mean weighted value is calculated for each state by summing the weighted hospital values and dividing by the sum of the
   weights. To calculate the state overall score, individual measure ranks are weighted, using the same measure rank weights as in the 100 Top Hospitals study, then summed.

26 IBM Watson Health
Figure 1. State-level performance comparisons, 2019 study

                           WA
                                                                                                                                                                     ME
                                                  MT
                                                                          ND

                                                                                          MN                                                               VT
                      OR                                                                                                                                        NH
                                                                                                                                                                          MA
                                    ID                                                                    WI                                         NY
                                                                          SD                                                                                       RI
                                                                                                                          MI                                     CT
                                                       WY
                                                                                                                                                PA
                                                                                               IA                                                         NJ
                                                                           NE
                                                                                                                               OH                    MD
                            NV                                                                                       IN                                    DE
                                          UT                                                                   IL
                                                                                                                                     WV
                                                            CO                                                                                  VA
                                                                                                                                                          DC (red)
                                                                                KS                  MO
                 CA                                                                                                       KY
                                                                                                                                                NC

                                                                                                                     TN

                                     AZ                                              OK
                                                                                                                                          SC
                                                       NM                                            AR

                                                                                                                MS    AL        GA
                                                                                                                                                     100 Top Hospitals performance
                                                                                                                                                     2019 study state-level rankings
                                                                           TX                        LA
                                                                                                                                                                      Quintile 1 - Best

                                                                                                                                           FL
                                                                                                                                                                      Quintile 2

                   HI
                                                                                                                                                                      Quintile 3

                                                 AK
                                                                                                                                                                      Quintile 4

                                                                                                                                                                      Quintile 5 - Worst

State data note: The 2019 state findings were based on the 100 Top Hospitals measure methodologies, using 2016 and 2017 MEDPAR data
(combined) for inpatient mortality and complications; July 1, 2014- June 30, 2017, for 30-day rates, and 2017 data for all other measures.

                                                                                                                                                                                           27
Figure 2. State-level performance comparisons, 2018 study

                          WA
                                                                                                                                                                    ME
                                                 MT
                                                                         ND

                                                                                         MN                                                              VT
                     OR                                                                                                                                        NH
                                                                                                                                                                         MA
                                   ID                                                                    WI                                         NY
                                                                         SD                                                                                       RI
                                                                                                                         MI                                     CT
                                                      WY
                                                                                                                                               PA
                                                                                              IA
                                                                                                                                                           NJ
                                                                         NE
                                                                                                                              OH
                           NV                                                                                       IN                                    DE
                                         UT                                                                   IL
                                                                                                                                    WV                    MD
                                                           CO                                                                                  VA
                                                                                                                                                         DC (red)
                                                                               KS                  MO
                CA                                                                                                       KY
                                                                                                                                               NC

                                                                                                                    TN

                                    AZ                                              OK
                                                                                                                                         SC
                                                      NM                                            AR

                                                                                                               MS    AL        GA
                                                                                                                                                    100 Top Hospitals performance
                                                                                                                                                    2019 study state-level rankings
                                                                          TX                        LA
                                                                                                                                                                     Quintile 1 - Best

                                                                                                                                          FL
                                                                                                                                                                     Quintile 2

                 HI
                                                                                                                                                                     Quintile 3

                                                AK
                                                                                                                                                                     Quintile 4

                                                                                                                                                                     Quintile 5 - Worst

 State data note: The 2018 state findings were based on the 100 Top Hospitals measure methodologies, using 2015 and 2016 MEDPAR data
 (combined) for inpatient mortality and complications; July 1, 2013- June 30, 2016, for 30-day rates, and 2016 data for all other measures.

28 IBM Watson Health
Table 7. 100 Top Hospitals two-year state-level performance comparisons
                           ME
                                    Northeast                                 Midwest                              South                               West
                 Current
                VT              study            Previous study   Current study   Previous study   Current study      Previous study   Current study     Previous study
                   NH
           NY     Connecticut
                        MA                       Connecticut      Illinois        Illinois         Alabama            Alabama          Alaska            Alaska
                           RI
                     CT
                  Maine                          Maine            Indiana         Indiana          Arkansas           Arkansas         Arizona           Arizona
      PA          Massachusetts                  Massachusetts    Iowa            Iowa             Delaware           Delaware         California        California
                  NJ
                  New Hampshire
                 DE
                                                 New Hampshire    Kansas          Kansas           District of        District of      Colorado          Colorado
                 MD
                                                                                                   Columbia           Columbia
      VA
                DC (red)
                  New Jersey                     New Jersey       Michigan        Michigan         Florida            Florida          Hawaii            Hawaii
      NC          New York                       New York         Minnesota       Minnesota        Georgia            Georgia          Idaho             Idaho
                  Pennsylvania                   Pennsylvania     Missouri        Missouri         Kentucky           Kentucky         Montana           Montana
SC
                  Rhode Island                   Rhode Island     Nebraska        Nebraska         Louisiana          Louisiana        Nevada            Nevada
                 Vermont              Vermont
           100 Top Hospitals performance
                                                                  North Dakota    North Dakota     Maryland           Maryland         New Mexico        New Mexico
           2018 study state-level rankings                        Ohio            Ohio             Mississippi        Mississippi      Oregon            Oregon
                            Quintile 1 - Best                     South Dakota    South Dakota     North Carolina     North Carolina   Utah              Utah

 FL                                                               Wisconsin       Wisconsin        Oklahoma           Oklahoma         Washington        Washington
                            Quintile 2
                                                                                                   South Carolina     South Carolina   Wyoming           Wyoming
                            Quintile 3
                                                                                                   Tennessee          Tennessee
                            Quintile 4                                                             Texas              Texas
                                                                                                   Virginia           Virginia
                            Quintile 5 - Worst
                                                                                                   West Virginia      West Virginia

                                                                                                                                                                          29
Performance improvement over time:
 All hospitals
 By studying the direction of performance change of
 all hospitals in our study (winners and nonwinners),
 we can see that US hospitals have not been able
 to improve performance much across the entire
 balanced scorecard of performance measures
 (Table 8).

 Notably, only one metric, 30-day readmissions,
 had fewer than 75% of in-study hospitals in the
 category of “no statistically significant change in
 performance.”

  Table 8. Direction of performance change for all hospitals in study, 2013 - 2017
  Performance measure                                     Significantly improving                  No statistically significant                  Significantly declining
                                                          performance                              change in performance                         performance
                                                          Count of            Percentage of        Count of              Percentage of           Count of       Percentage of
                                                          hospitals1          hospitals2           hospitals1            hospitals2              hospitalsa1    hospitals2

  Risk-adjusted inpatient mortality index                 83                  3.1%                 2,374                 88.1%                   238            8.8%
  Risk-adjusted complication index                        198                 7.3%                 2,402                 89.1%                   95             3.5%
  30-day mortality rate                                   33                  1.2%                 2,405                 89.2%                   257            9.5%
  30-day readmission rate                                 1510                56.0%                1,165                 43.2%                   20             0.7%
  Severity-adjusted average LOS                           476                 17.7%                2,050                 76.1%                   169            6.3%
  ED throughput (minutes)                                 183                 6.8%                 2,050                 76.1%                   462            17.1%
  Adjusted inpatient expense per discharge                71                  2.6%                 2,177                 81.2%                   434            16.2%
  Operating profit margin                                 185                 6.9%                 2,336                 87.0%                   165            6.1%
  HCAHPS score                                            286                 10.6%                2,287                 84.9%                   121            4.5%

  1. Count refers to the number of in-study hospitals whose performance fell into the highlighted category on the measure.
    Note: Total number of hospitals included in the analysis will vary by measure due to exclusion of interquartile range outlier data points.
    Inpatient expense and profit are affected. Some in-study hospitals had too few data points remaining to calculate trend.
  2. Percent is of total in-study hospitals across all peer groups.

  However, over the years we studied (2013 through
  2017), many hospitals have been able to raise the
  performance bar on many clinical and operational
  measures (see green column in Table 8):
     –– Over half (56%) of hospitals improved their 30-
        day readmission rates, reiterating the attention
        these measures continue to receive in payment
        system incentives and penalties
     –– Only 3.1% of hospitals improved their inpatient
        mortality (88% had no change), while the great
        majority of hospitals (nearly 90%) also had no

30 IBM Watson Health
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