Watson Health 15 Top Health Systems Study, 2018 - 10th edition | April 23, 2018 - Truven Health
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Watson Health 15 Top Health Systems Study, 2018 10th edition | April 23, 2018
IBM Watson Health™ 75 Binney Street Cambridge, MA 02142 800-525-9083 ibm.com/watsonhealth Watson Health 15 Top Health Systems Study, 2018; 10th edition © Copyright IBM Corporation 2018. All rights reserved. IBM, the IBM logo, ibm.com, Watson Health, and 100 Top Hospitals are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. Printed and bound in the United States of America. The information contained in this publication is intended to serve as a guide for general comparisons and evaluations, but not as the sole basis upon which any specific conduct is to be recommended or undertaken. The reader bears sole risk and responsibility for any analysis, interpretation, or conclusion based on the information contained in this publication, and IBM shall not be responsible for any errors, misstatements, inaccuracies, or omissions contained herein. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from IBM Watson Health. ISBN: 978-1-57372-475-3
Introduction Contents Welcome to the 10th edition of the 03 Introduction Watson Health 15 Top Health Systems study. 09 2018 15 Top Health Systems award winners This 2018 study from IBM Watson Health™ 11 Findings marks another milestone in the 100 Top Hospitals® 21 Methodology program’s rich history: a full decade of publishing 37 Appendix A: an annual quantitative study designed to shine Health system winners and a light on the nation’s highest-performing their member hospitals health systems. 41 Appendix B: The top quintile: Highest- Our research of US health system performance performing health systems began with the same goal that has driven each 43 Appendix C: study since the beginning of the 100 Top Hospitals Methodology details program: To identify top performers, and also 57 Appendix D: deliver insights that may help healthcare systems All health systems in study better focus their improvement initiatives on achieving consistent, balanced, and sustainable high performance. Truven Health Analytics® was acquired by Health systems do not apply for our 15 Top Health IBM in 2016 to help form a new business, Systems selection process, and winners do not pay Watson Health. to market their honor. Illuminating achievement for a value-based world Our research is based on clinical, operational, financial, and patient perception-of-care measures that form a balanced scorecard. For 10 years, the health systems achieving excellence on our scorecard inherently set attainable benchmarks for others in the industry to aspire to over time. Providing these measures of success may be especially important today as we see the healthcare landscape continuing to evolve from fee-for-service toward value-based care models, with many health systems paying closer attention to population health management and system- wide alignment of performance. 3
The Watson Health By finding ways to take balanced performance to 15 Top Health Systems the next level, the winners of our 15 Top Health scorecard results are divided Systems award are identifying opportunities to into two separate sections deliver healthcare value to patients, communities, that graphically illustrate: and payers. The performance levels achieved by ––A health system’s these systems may motivate their peers to use performance and data, analytics, and benchmarks to close their improvement versus peer performance gaps. health systems ––Cross-system performance alignment of member Delivering a robust and transparent assessment hospitals We have designed this study to provide a view of health system performance across multiple dimensions: how they stand compared to peers and high performers (whole-system performance), where they stand in the evolution of their own cultures of performance improvement (relative long-term improvement and rate of improvement), and the achievement of cross-system performance alignment (member hospital performance). These collective insights may be used by health system leaders to adjust continuous improvement targets, enrich the collaboration of member hospitals, and track system-wide alignment toward common performance goals. To maintain the 15 Top Health Systems study’s integrity and avoid bias, we use public data sources and explain the methodologies we use to calculate outcome metrics. This approach supports inclusion of systems across the country and facilitates consistency of definitions and data. Our national balanced scorecard, based on Kaplan and Norton’s concept1, is the foundation of our research. It is comprised of key measures of performance: inpatient and extended care quality, operational efficiency, financial health*, and patient experience. The composite score derived from these measures reflects top performance in hospital-based care, management, and leadership. * In this study, measures of financial health are reported for information-only purposes because public, audited financial statements are not available for all US health systems. 4 IBM Watson Health
In addition, to support consideration of the Comparing the performance of our differences in scale among systems, the study 2018 winners to nonwinners categorizes the nation’s systems into three groups: Using the measures in our national balanced large, medium, and small health systems. This scorecard, this year’s 15 Top Health Systems study produces benchmarks that are comparable and revealed important differences between award action-driving across similar systems. winners and their nonwinning peers. Our study’s highest-performing systems: Yielding a measure of leadership excellence –– Had lower inpatient mortality and fewer patient Since 1993, the 100 Top Hospitals program has complications, considering patient severity sought to shed light on the efficacy of innovative leaders. The methodology is aimed at identifying –– Delivered care that resulted in fewer HAIs leaders who can transform an organization by –– Had lower 30-day readmission rates* pinpointing improvement opportunities and adjusting goals for key performance domains. –– Sent patients home sooner We believe that higher composite scores on –– Provided faster emergency care the balanced scorecard typically indicate more effective leadership and a consistent delivery –– Kept episode-of-care expenses low, both of value. in-hospital and through the aftercare process –– Scored higher on patient ratings of their overall The leadership of today’s health systems, including hospital experience the board, executive team, and medical staff leadership, is responsible for ensuring all of their Our study projections also indicate that if the system hospitals are performing at similarly high benchmarks of performance established by our levels in both the short and long term. The 15 Top 2018 winners were achieved by all US health Health Systems study and analytics provide a view systems we studied, the following would be true: of that enterprise performance alignment. –– Over 60,000 additional lives could be saved in-hospital Providing new insight into clinical quality –– Over 31,000 additional patients could be For this 2018 15 Top Health Systems study, we complication-free added a newly available measure of clinical quality: healthcare-associated infections (HAIs). Since –– 16% fewer infections would be acquired by there is public interest in tracking and preventing hospital patients hospital-acquired infections, we used the HAI data ––The typical patient could be released from the reported by the Centers for Medicare & Medicaid hospital almost a half day sooner and would Services to analyze hospital performance and have 5.6% fewer expenses related to the provide national benchmarks in this area. complete episode of care than the median patient in the US –– Patients could spend 40 minutes less time in hospital emergency rooms per visit * 30-day mortality was slightly higher for winning health systems in this year’s study. 5
Understanding the similarities The analysis on the previous page is based on and differences between applying the difference between study winners high and low performers can and nonwinners to Medicare patient counts. If the help provide benchmarks for same standards were applied to all inpatients, the the industry. The findings we impact would be even greater. assemble for this study provide examples of excellence, as For more details about this study’s findings and evidenced in several additional the achievements of the 15 Top Health Systems, published studies2 - 24. please see the Findings section of this document. Welcoming your input The 100 Top Hospitals program works to ensure that the measures and methodologies used in our studies are fair, consistent, and meaningful. We continually test the validity of our performance measures and data sources. In addition, as part of our internal performance improvement process, we welcome comments about our study from health system, hospital, and physician executives. To submit comments, visit 100tophospitals.com. Showcasing the versatility of the 100 Top Hospitals program The 15 Top Health Systems research is one of three major annual studies of the Watson Health 100 Top Hospitals program. To increase understanding of trends in specific areas of the healthcare industry, the program includes: –– 100 Top Hospitals and Everest Award studies Research that annually recognizes the 100 top-rated hospitals in the nation based on a proprietary, balanced scorecard of overall organizational performance, and identifies those hospitals that also excel at long-term rates of improvement in addition to performance –– 50 Top Cardiovascular Hospitals study An annual study introduced in 1999 that identifies hospitals demonstrating the highest performance in hospital cardiovascular services for four important patient groups: heart attack, heart failure, coronary artery bypass graft, and percutaneous coronary intervention 6 IBM Watson Health
–– 15 Top Health Systems study An annual study introduced in 2009 that The 2018 study provides an objective measure of health analyzed 338 system performance overall and offers insight into the ability of a system’s member hospitals health systems and to deliver consistent top performance across 2,422 hospitals that the communities they serve, all based on our national health system scorecard are members of health systems. In addition to the major studies, customized analyses are also available from the 100 Top Hospitals program, including custom benchmark reports. Our reports are designed to help healthcare executives understand how their organizational performance compares to peers within health systems, states, and markets. 100 Top Hospitals program reports offer a two-dimensional view of both performance improvement over time, applying the most current methodologies across all years of data to identify trends, as well as the most current year performance. You can read more about these studies, order customized reports, and view lists of all winners by visiting 100tophospitals.com. About IBM Watson Health Each day, professionals throughout the health ecosystem make powerful progress toward a healthier future. At IBM Watson Health, we help them remove obstacles, optimize efforts, and reveal new insights to support the people they serve. Working across the landscape, from payers and providers to governments and life sciences, we bring together deep health expertise; proven innovation; and the power of artificial intelligence to enable our customers to uncover, connect, and act as they work to solve health challenges for people everywhere. For more information, visit ibm.com/watsonhealth. 7
Note that the order of health systems in the 2018 following tables does not reflect performance rating. Systems are ordered alphabetically. 15 Top Health For full details on these peer groups and the process we used to select the winning benchmark Systems award health systems*, see the Methodology section of this document. winners The Watson Health 100 Top Hospitals® program is pleased to present the 2018 Watson Health 15 Top Health Systems. 15 Top Health Systems award winners Large health systems (> $1.85 billion) Location Mayo Foundation Rochester, MN Mercy Chesterfield, MO Sentara Healthcare Norfolk, VA St. Luke’s Health System Boise, ID UCHealth Aurora, CO Medium health systems ($800 million - $1.85 billion) Location Aspirus Wausau, WI HealthPartners Bloomington, MN Mercy Health - Cincinnati Cincinnati, OH Mission Health Asheville, NC TriHealth Cincinnati, OH Small health systems (< $800 million) Location Asante Medford, OR CHI St. Joseph Health Bryan, TX Maury Regional Health Columbia, TN Roper St. Francis Healthcare Charleston, SC UPMC Susquehanna Health System Williamsport, PA * To see a full list of Winners Through the Years, visit truvenhealth.com/Products/100-Top-Hospitals/Program-Info/15-Top-Health-Systems/Winners-Through-the-Years. 9
Note: In Tables 1 through 4, data for the Findings 15 Top Health Systems award winners is labeled “Benchmark,” and data for all health systems, The Watson Health 15 Top Health Systems study excluding award winners, is labeled “Peer group.” profiles the top-performing health systems* in the In columns labeled “Benchmark compared country. According to publicly available data and with peer group,” we calculated the actual and our transparent methodologies, these industry percentage difference between the benchmark leaders appear to be successfully addressing the hospital scores and the peer group scores. challenge of deploying innovative clinical and operational approaches to multiple hospital sites 15 Top Health Systems had better survival rates** to achieve consistent top performance. ––The winners had 14.6% fewer in-hospital deaths than their nonwinning peers, For 10 years, the 15 Top Health Systems study considering patient severity (Table 1) has followed the results achieved by leading –– Mortality results for medium health systems health systems and published numerous showed the greatest difference between examples of the benchmark systems’ clinical winners and nonwinners, with 15.9% fewer and operational excellence. The study is more deaths among benchmark health systems than a list of accomplishments; it is a tool US (Tables 2 - 4) health system leaders can use to help guide their own performance improvement initiatives. By 15 Top Health Systems had fewer highlighting what the highest-performing leaders patient complications** around the country are doing well, we create aspirational benchmarks for the rest of the industry. –– Patients treated at the winning systems’ member hospitals had significantly fewer complications, with rates 17.3% lower than How the winning systems compared at nonwinning system hospitals, considering to their peers patient severity (Table 1) In this section, we show how the 15 Top Health –– Large health systems had the greatest Systems performed within their comparison groups difference between winners and nonwinners, (large, medium, and small systems), compared with 20.9% fewer complications (Tables 2 - 4) to nonwinning peers. In addition, we identify some key findings among comparison groups. For performance measure details and definitions of each comparison group, see the Methodology section of this document. * To be defined as a health system in this study, an organization must have at least two short-term, general, acute care hospitals with separate Medicare provider identification numbers. Systems with multiple hospital facilities reporting under one provider ID are profiled as a single hospital in the Watson Health 100 Top Hospitals® study. ** Mortality and complications index values cannot be compared among the three different comparison groups because they are normalized by comparison group. 11
15 Top Health Systems had fewer healthcare- 15 Top Health Systems had mixed results on associated infections* longer-term outcomes A new ranked measure in the 2018 study, Several patient groups are included in the 30- healthcare-associated infections (HAIs)**, day mortality and readmission extended care captures information about the quality of inpatient composite metrics. The mean 30-day mortality care. Based on nationwide data availability, we rate includes heart attack (AMI), heart failure (HF), built a composite measure of HAI performance pneumonia, chronic obstructive pulmonary disease at the system level, considering up to six HAIs, (COPD), and stroke patient groups. The mean 30- depending on assigned comparison group. The day readmission rate includes AMI, HF, pneumonia, six reported HAIs are: methicillin-resistant total hip arthroplasty and/or total knee arthroplasty staphylococcus aureus (MRSA-bloodstream), (THA/TKA), COPD, and stroke patient groups. central line-associated blood stream infections, catheter-associated urinary tract infections, 30-day mortality results clostridium difficile (C. diff), surgical site infections –– In this year’s study, the winning systems had (SSIs) following colon surgery, and SSIs following a higher mean 30-day mortality rate than the an abdominal hysterectomy. nonwinning systems, due to slightly higher –– Among all types of systems, winners overall rates among large and small systems had a more favorable composite median HAI (Tables 1 - 4) index value than nonwinner peers, at 0.77 –– Small health systems displayed the largest versus 0.92, respectively; this reflects 16.2% gap between winners and nonwinning peers fewer infections occurring at the 15 Top Health on 30-day mortality (13.4% versus 12.9%), Systems compared to other peer systems while medium health system winners had (Table 1) performance the same as nonwinning peers, –– Small health system winners and nonwinners at 12.7%, which was also the lowest median showed the most dramatic difference on 30-day mortality value observed in this year’s HAI performance: winners had a median HAI study (Tables 1, 3, and 4) composite index value of 0.64, which was 26.5% lower than the median HAI index score 30-day readmission results at nonwinning systems (0.87) (Tables 2 - 4) –– Winning health systems had lower 30-day readmission rates than their nonwinning peers nationally (0.6 percentage points lower) and for all comparison groups (Table 1) –– Small winning systems had the best mean 30-day readmission rate (14.4%) among all comparison groups and outperformed their nonwinning peers by the greatest margin, 0.9 percentage points (Tables 2 - 4) * HAI index values cannot be compared among the three different comparison groups because they are normalized by comparison group. ** As developed by a unit of the Centers for Disease Control and Prevention, the National Healthcare Safety Network, and reported by the Centers for Medicare & Medicaid Services (CMS) in the public Hospital Compare data set. 12 IBM Watson Health
Patients treated in 15 Top Health Systems 15 Top Health Systems hospitals had lower hospitals returned home sooner* Medicare spending per beneficiary episode costs –– Winning systems had a median average length –– Overall, winning systems had a 5.6% lower of stay (ALOS) of 4.4 days, nearly a half day Medicare spending per beneficiary (MSPB) shorter than the nonwinner median of 4.9 days index than nonwinners (Table 1) (Table 1) –– Medium health systems showed the greatest ––The ALOS difference between winners difference between winners and nonwinners and nonwinners was consistent across all with an 11.8% lower MSPB index (Table 2) comparison groups, with benchmark systems –– Medium winning systems also had the lowest discharging patients 0.4 days sooner average MSPB index (0.88) among the (Tables 2 - 4) comparison groups (Table 2) Patients spent less time in 15 Top Health Systems Patients rated 15 Top Health Systems hospitals emergency departments higher than peer system hospitals The mean emergency department (ED) throughput composite metric measures the amount of time –– Winning systems had a 2.3% higher overall spent in the ED. It includes median time from ED score on the Hospital Consumer Assessment of arrival to ED departure for admitted ED patients, Healthcare Providers and Systems (HCAHPS), and median time from ED arrival to ED departure which tells us that patients treated by for non-admitted ED patients. members of the top health systems reported a better overall hospital experience than those –– Overall, winning systems had, on average, 40 treated in nonwinning peer hospitals (Table 1) minutes shorter ED wait times per patient than nonwinners (Table 1) –– Small health system winners had the best HCAHPS score (270.3) among the comparison ––The greatest difference between winning groups (Tables 2 - 4) systems and their peers was in the medium health systems comparison group, with ––The small winning systems also had the biggest medium system winners averaging 40.2 lead over nonwinning peers, with an HCAHPS minutes less time spent in the ED per patient score that was 3.1% higher (Tables 2 - 4) visit than nonwinners; the range of time saved was between 34.8 and 40.2 minutes (Tables 2 - 4) * ALOS cannot be compared among the three different comparison groups because values are normalized by comparison group. 13
Table 1. National health system performance comparisons (all systems) Performance measure Medians Benchmark compared with peer group Winning Nonwinning Difference Percent Comments benchmark peer group difference health of US Health systems systems Inpatient mortality index1 0.88 1.03 -0.15 -14.6% lower mortality Complications index1 0.85 1.02 -0.18 -17.3% fewer complications Healthcare-associated infection (HAI) index 2 0.77 0.92 -0.15 -16.2% fewer infections 30-day mortality rate (%) 3 12.9 12.7 0.1 n/a4 higher 30-day mortality 30-day readmission rate (%) 3 14.7 15.3 -0.6 n/a4 fewer 30-day readmissions Average length of stay (ALOS) (days)1 4.4 4.9 -0.4 -8.8% shorter stays Emergency department (ED) throughput measure2 180.3 220.3 -40.0 -18.2% less time to service Medicare spending per beneficiary (MSPB) index 2 0.94 0.99 -0.06 -5.6% lower episode cost Hospital Consumer Assessment of Healthcare 270.1 264.0 6.1 2.3% better patient experience Providers and Systems (HCAHPS) score2 1. Mortality, complications and average length of stay based on Present on Admission (POA)-enabled risk models applied to MedPAR 2015 and 2016 data (ALOS 2016 only). 2. HAI, ED measure, MSPB and HCAHPS data from CMS Hospital Compare Jan 1, 2016 - Dec 31, 2016 data set. 3. 30-day rates from CMS Hospital Compare July 1, 2013-June 30, 2016 data set. 4. We do not calculate percent difference for this measure because it is already a percent value. NNote: Measure values are rounded for reporting, which may cause calculated differences to appear off. Table 2. Large health system performance comparisons Performance measure Medians Benchmark compared with peer group Benchmark Peer group Difference Percent Comments health of US health difference systems systems Inpatient mortality index1 0.89 1.00 -0.11 -11.0% Lower mortality Complications index 1 0.82 1.04 -0.22 -20.9% Fewer complications HAI index 2 0.79 0.93 -0.14 -14.9 Fewer infections 30-day mortality rate (%)3 12.8 12.7 0.1 n/a4 Higher 30-day mortality 30-day readmission rate (%)3 14.6 15.3 -0.7 n/a4 Fewer 30-day readmissions ALOS (days) 1 4.4 4.9 -0.4 -8.9% Shorter stays ED throughput measure 2 189.9 229.6 -39.7 -17.3% Less time to service MSPB index 2 0.94 0.99 -0.05 -5.5% Lower episode cost HCAHPS score2 270.1 264.0 6.0 2.3% Better patient experience 1. Mortality, complications, and ALOS based on POA-enabled risk models applied to MEDPAR 2015 and 2016 data (ALOS 2016 only). 2. HAI, ED measure, MSPB, and HCAHPS data from CMS Hospital Compare Jan. 1, 2016 - Dec. 31, 2016 data set. 3. 30-day rates from CMS Hospital Compare July 1, 2013 - June 30, 2016 data set. 4. We do not calculate percent difference for this measure because it is already a percent value. Note: Measure values are rounded for reporting, which may cause calculated differences to appear off. 14 IBM Watson Health
Table 3. Medium health system performance comparisons Performance measure Medians Benchmark compared with peer group Benchmark Peer group Difference Percent Comments health of US health difference systems systems Inpatient mortality index1 0.85 1.01 -0.16 -15.9% Lower mortality Complications index 1 0.85 1.03 -0.18 -17.0% Fewer complications HAI index 2 0.77 0.92 -0.15 -16.5% Fewer infections 30-day mortality rate (%)3 12.7 12.7 0.0 n/a4 No difference in 30-day mortality 30-day readmission rate (%)3 14.7 15.2 -0.5 n/a4 Fewer 30-day readmissions ALOS (days) 1 4.5 4.9 -0.4 -7.6% Shorter stays ED throughput measure 2 181.0 221.2 -40.2 -18.2% Less time to service MSPB index 2 0.88 1.00 -0.12 -11.8% Lower episode cost HCAHPS score2 269.2 265.0 4.2 1.6% Better patient experience 1. Mortality, complications, and ALOS based on POA-enabled risk models applied to MEDPAR 2015 and 2016 data (ALOS 2016 only). 2. HAI, ED measure, MSPB, and HCAHPS data from CMS Hospital Compare Jan. 1, 2016 - Dec. 31, 2016 data set. 3. 30-day rates from CMS Hospital Compare July 1, 2013 - June 30, 2016 data set. 4. We do not calculate percent difference for this measure because it is already a percent value. Note: Measure values are rounded for reporting, which may cause calculated differences to appear off. Table 4. Small health system performance comparisons Performance measure Medians Benchmark compared with peer group Benchmark Peer group Difference Percent Comments health of US health difference systems systems Inpatient mortality index1 0.99 1.03 -0.04 -3.4% Lower mortality Complications index 1 0.83 1.00 -0.17 -17.1% Fewer complications HAI index 2 0.64 0.87 -0.23 -26.5% Fewer infections 30-day mortality rate (%)3 13.4 12.9 0.5 n/a4 Higher 30-day mortality 30-day readmission rate (%)3 14.4 15.3 -0.9 n/a4 Fewer 30-day readmissions ALOS (days) 1 4.5 4.9 -0.4 -8.7% Shorter stays ED throughput measure 2 177.3 212.2 -34.8 -16.4% Less time to service MSPB index 2 0.95 0.99 -0.04 -4.0% Lower episode cost HCAHPS score2 270.3 262.2 8.1 3.1% Better patient experience 1. Mortality, complications, and ALOS based on POA-enabled risk models applied to MEDPAR 2015 and 2016 data (ALOS 2016 only). 2. HAI, ED measure, MSPB, and HCAHPS data from CMS Hospital Compare Jan. 1, 2016 - Dec. 31, 2016 data set. 3. 30-day rates from CMS Hospital Compare July 1, 2013 - June 30, 2016 data set. 4. We do not calculate percent difference for this measure because it is already a percent value. Note: Measure values are rounded for reporting, which may cause calculated differences to appear off. 15
Appendix A. 16 IBM Watson Health Winning health system results For a list of all hospitals included In Table 5, we provide the 15 Top Health Systems values for each of in each winning health system, see the study’s performance measures. Table 5. Winning health system performance measure results Winning system name Mortality Complications HAI index2 30-day 30-day ALOS1 ED MSPB HCAHPS index1 index1 mortality readmission measure index4 score4 rate3 rate3 mean minutes4 Large health Mayo Foundation 0.82 1.23 0.7 11.9 14.6 4.5 166.6 0.92 278.9 systems Mercy 0.89 0.72 0.8 12.8 14.9 4.4 174.6 0.96 269.9 Sentara Healthcare 0.87 0.82 0.9 12.9 15.2 4.7 235.8 0.94 270.1 St. Luke's Health System 0.96 0.74 0.8 12.5 14.1 4.1 206.3 0.88 268.9 UCHealth 0.91 0.88 0.9 12.9 14.1 4.1 189.9 0.98 271.5 Medium health Aspirus 0.98 0.71 0.6 13.3 14.8 3.9 154.6 0.69 269.2 systems HealthPartners 0.87 1.08 0.8 12.7 14.7 4.3 174.8 0.88 268.7 Mercy Health - Cincinnati 0.68 0.85 0.5 12.0 15.4 4.6 210.0 1.00 271.6 Mission Health 0.82 1.02 1.0 13.0 13.2 4.5 195.1 0.87 275.2 TriHealth 0.85 0.83 0.8 12.3 14.7 4.5 181.0 0.99 267.3 Small health Asante 0.99 0.53 0.6 13.1 14.3 4.5 185.0 0.91 270.3 systems CHI St. Joseph Health 0.73 0.88 0.5 14.1 15.3 4.6 166.6 0.98 273.0 Maury Regional Health 1.05 0.51 0.5 13.6 15.5 3.9 177.3 0.95 269.0 Roper St. Francis Healthcare 1.06 0.83 1.1 12.0 13.9 4.8 159.2 0.99 276.9 UPMC Susquehanna Health System 0.74 1.09 0.7 13.4 14.4 4.3 180.3 0.79 267.0 1. Mortality, complications, and ALOS based on POA-enabled risk models applied to MEDPAR 2015 and 2016 data (ALOS 2016 only). 2. HAI, ED measure, MSPB, and HCAHPS data from CMS Hospital Compare Jan. 1, 2016 - Dec. 31, 2016 data set. 3. 30-day rates from CMS Hospital Compare July 1, 2013 - June 30, 2016 data set. Note: Mortality, complications, HAI and ALOS measures cannot be compared across comparison groups because they are normalized by comparison group.
Top and bottom quintile results ––They had somewhat lower mean 30-day We divided all the health systems in this study into mortality rates (0.4 percentage points lower; performance quintiles, by comparison group, based includes AMI, HF, pneumonia, COPD, and on their performance on the study’s measures. stroke patients) In Table 6, we have highlighted differences ––They had lower mean 30-day readmission between the highest- and lowest-performing rates (14.8% versus 15.5%; includes AMI, quintiles by providing their median scores on the HF, pneumonia, THA/TKA, COPD, and study performance measures. (See Appendix B stroke patients) for a list of the health systems included in the top-performance quintile and Appendix D for all ––They had dramatically lower mean ED wait systems included in the study.) times, with an average difference of 62 minutes per ED patient (24.1% less than the The top quintile systems outperformed their lowest bottom quintile) quintile peers in the following ways: ––They were more efficient, releasing patients ––They had much better patient outcomes: almost one day (0.9) sooner than the lowest 19.7% lower mortality and 5.7% lower performers and at a 5.3% lower MSPB index complications ––They scored 11.3 points higher on the HCAHPS ––They had fewer occurrences of HAIs in their overall patient rating of care facilities: a 25.8% smaller median HAI index value (0.8) in the top performance quintile Table 6. Comparison of health systems in the top and bottom quintiles of performance1 Performance measure Top quintile Bottom quintile Difference Percent Top versus bottom median median difference quintile Inpatient mortality index2 0.89 1.11 -0.22 -19.7% Lower mortality Complications index2 0.99 1.05 -0.06 -5.7% Fewer complications HAI index 3 0.8 1.0 -0.3 -25.8% Fewer infections 30-day mortality rate (%) 4 12.6 12.9 -0.4 n/a 5 Lower 30-day mortality 30-day readmission rate (%) 4 14.8 15.5 -0.8 n/a 5 Fewer 30-day readmissions ALOS 2 4.5 5.4 -0.9 -16.1% Shorter stays ED measure mean minutes3 195.0 256.9 -62.0 -24.1% Less time to service MSPB index3 0.96 1.01 -0.05 -5.3% Lower episode cost HCAHPS score 3 269.0 257.7 11.3 4.4% Better patient experience 1. Top and bottom performance quintiles were determined by comparison group and aggregated to calculate medians. 2. Mortality, complications, and ALOS based on POA-enabled risk models applied to MEDPAR 2015 and 2016 data (ALOS 2016 only). 3. HAI, ED measure, MSPB, and HCAHPS data from CMS Hospital Compare Jan. 1, 2016 - Dec. 31, 2016 data set 4. 30-day rates from CMS Hospital Compare July 1, 2013 - June 30, 2016, data set. 5. We do not calculate percent difference for this measure because it is already a percent value. Note: Measure values are rounded for reporting, which may cause calculated differences to appear off. 17
Test metrics: Reported for information only Excess days in acute care measures Every year, we evaluate the 15 Top Health Systems The newest set of measures available from CMS study and explore whether new measures would in the Hospital Compare data set are the excess enhance the value of the analysis we provide. days in acute care (EDAC) measures for AMI and For this 2018 study, we are testing several HF. CMS defines “excess days” as the difference new performance measures that update basic between a hospital’s average days in acute standards of inpatient care and expand the care and expected days, based on an average balanced scorecard across the continuum of care. hospital nationally. Days in acute care include These metrics were not used in the ranking and days spent in an ED, a hospital observation unit, selection of winning health systems. or a hospital inpatient unit for 30 days following a hospitalization. The data period in our study for If you would like to provide feedback on these measures is the same as for the other 30-day the following proposed measures, email metrics for specific patient conditions: three years, 100tophospitals@us.ibm.com. combined (July 1, 2013 - June 30, 2016). 30-day all-cause, hospital-wide 90-day episode-of-care payment measure readmission measure Another measure recently made available in the We are continuing to publish the hospital-wide, Hospital Compare data set is the 90-day episode- 30-day readmission measure, which CMS is of-care payment metric for primary, elective publicly reporting in the Hospital Compare data set THA/TKA. Like the other 30-day episode-of- to provide an overall readmission comparison, for care payment measures, CMS calculates risk- information only. However, we rank on a composite standardized payments associated with a 90-day score based on the publicly available individual episode of care, compared to an average hospital patient groups. The data period for the hospital- nationally. The measure summarizes payments wide readmission measure is July 1, 2015 - for patients across multiple care settings, services, June 30, 2016. and supplies during the 90-day period, which starts on the day of admission. The data period for 30-day episode-of-care payment measures this measure combines three years, April 1, 2013 - We are continuing to publish risk-standardized March 31, 2016. payments associated with 30-day episode-of-care measures for three patient groups that are now 90-day complication measure being published by CMS in the Hospital Compare Along with the THA/TKA 90-day payment data set. These measures capture differences in measure recently made available in Hospital services and supplies provided to patients who Compare data, CMS is also publishing a THA/ have been diagnosed with AMI, HF, or pneumonia. TKA 90-day complication measure. This measure According to the CMS definition of these measures, calculates a risk-standardized complication rate for they are the sum of payments made for care and THA/TKA procedures using the occurrence of one supplies starting the day the patient enters the or more of the subsequent complications within hospital and for the next 30 days. In our study, the the specified timeframes. The data period for this data period for these measures is the same as measure combines three years, April 1, 2013 - for the other 30-day metrics for specific patient March 31, 2016 (complications are listed on the conditions: three years, combined (July 1, 2013 - following page). June 30, 2016). 18 IBM Watson Health
–– AMI, pneumonia, or sepsis/septicemia/shock –– On all reported CMS episode measures of cost, during or within seven days of index admission winning systems consistently outperformed their nonwinner peers; the difference was –– Surgical site bleeding, pulmonary embolism, greatest for THA/TKA 90-day episode payment or death during or within 30 days of index (5.8%) admission –– Winning health systems performed better –– Mechanical complication or periprosthetic joint on the AMI and HF 30-day EDAC measures, infection/wound infection during or within 90 showing that patients spent fewer days than days of index admission expected in the ED, in observation, or back in the hospital after an initial index acute care See the CMS website for measure methodology25. stay (5.2 days under the expected amount for AMI EDAC and 8.5 under expected for HF Table 7 shows the national performance of EDAC); whereas nonwinning peers averaged benchmark and peer health systems on the 7.6 and 8.1 days more than expected (EDAC test metrics. values are reported as excess days per 100 discharges) This year, the 15 Top Health Systems winners outperformed nonwinning peers on all test –– On the 90-day THA/TKA complications rate, measures, which is an interesting finding given that another CMS measure of outcomes extended these are independent variables not used in the outside the hospital stay, winning systems had selection of the winners. 0.3 percentage points lower complication rate than peers –– Benchmark systems had stronger performance on 30-day, hospital-wide readmissions (14.8% versus 15.4% for peers) Table 7. Information-only measures – Health system performance comparisons (all classes) Performance measure Medians Benchmark compared with peer group Benchmark Peer group Difference Percent Comments health systems of US health difference systems 30-day, hospital-wide readmission rate1 14.8 15.4 -0.63 n/a3 Fewer 30-day readmissions AMI 30-day episode payment 1 $22,798 $23,204 -$406 -1.8% Lower episode cost HF 30-day episode payment1 $16,023 $16,376 -$353 -2.2% Lower episode cost Pneumonia 30-day episode payment 1 $17,117 $17,318 -$201 -1.2% Lower episode cost AMI 30-day excess days in acute care 1 -5.2 7.6 -12.81 n/a 3 Fewer excess days HF 30-day excess days in acute care 1 -8.5 8.1 -16.62 n/a 3 Fewer excess days THA/TKA* 90-day episode payment 2 $20,653 $21,931 -$1,278 -5.8% Lower episode cost THA/TKA* 90-day complications rate2 2.4 2.7 -0.30 n/a3 Fewer complications 1. 30-day measures from CMS Hospital Compare July 1, 2013 - June 30, 2016 data set. 2. 90-day measures from CMS Hospital Compare April 1, 2013 - March 31, 2016 data set. 3. We do not calculate percent difference for these measures because it can be a negative number or is already a percent value. * Primary, elective total hip arthroplasty and total knee arthroplasty. 19
Financial metrics –– Overall, benchmark health system We continue to publish the financial measures performance is better than nonwinning peers, each year for information only, as audited financial both on operating margin (1.2 percentage statements are not available for all systems points higher among winners) and long-term included in the study*. These measures are not debt-to-capitalization ratio (LTD/cap) included in the ranking and selection of benchmark (0.1 lower ratio among winners) health systems. –– Notably, medium health system winners had a much higher operating profit margin than Results for included systems are found in nonwinners (8.7% versus 2.4%) and showed Table 8 below. a greater difference on the LTD/cap (0.2 versus 0.4) Table 8. Information-only – Financial performance Performance measure Health system Medians Difference comparison group Benchmark health systems Peer group of US Benchmark compared health systems with peer group Operating margin All systems 4.2 3.0 1.2 (percentage) Large 4.3 3.6 0.7 Medium 8.7 2.4 6.3 Small 4.0 2.2 1.8 Long-term debt-to- All systems 0.3 0.3 -0.1 capitalization ratio (LTD/cap) Large 0.3 0.3 0.0 Medium 0.2 0.4 -0.1 Small 0.3 0.3 -0.1 Note: Data sourced from audited 2016 financial reports via dacbond.com, emma.msrb.org, yahoo.brand.edgar-online.com, and sec.gov. * A total of 84.2% of parent and independent systems published audited financial statements for 2016. Subsystems that are members of a larger “parent” health system generally do not have separate audited financial statements. This translated into 65.1% of all in-study health systems with available financial reports. 20 IBM Watson Health
–– Ranking systems on each of the performance Methodology measures by comparison group –– Determining the 15 top performers (five in Watson Health 15 Top Health Systems is a each comparison group) from the health quantitative study that annually identifies 15 systems’ overall rankings, based on their US health systems with the highest overall aggregate performance (sum of individual achievement on a balanced scorecard. weighted measure ranks) The health system scorecard is based on the The following section is intended to be an overview 100 Top Hospitals® national balanced scorecard of these steps. To request more detailed information methodologies and focuses on four performance on any of the study methodologies outlined here, domains: inpatient outcomes, extended outcomes, email us at 100tophospitals@us.ibm.com or call operational efficiency, and patient experience. 800-525-9083. This 2018 health systems study includes nine measures that provide an objective comparison Building the database of hospitals of health system performance using publicly Like all the 100 Top Hospitals studies, the 15 Top available data. The health systems with the highest Health Systems study uses only publicly available achievement are those with the highest ranking on data. The data for this study primarily came from: a composite score based on these nine measures. –– Medicare Provider Analysis and Review To analyze health system performance, we include (MEDPAR) data set* data for short-term, acute care, nonfederal US –– Centers for Medicare & Medicaid Services hospitals, as well as cardiac, orthopedic, women’s, (CMS) Hospital Compare data set and critical access hospitals (CAHs) that are members of the health systems. We use MEDPAR patient-level demographic, diagnosis, and procedure information to calculate The main steps we take in selecting the top 15 mortality, complications, and length of stay (LOS) health systems are: by aggregating member hospital data to the health –– Building the database of health systems, system level. The MEDPAR data set contains including special selection and exclusion criteria information on the approximately 15 million Medicare patients discharged annually from US –– Identifying which hospitals are members of acute care hospitals. In this year’s study, we used health systems the most recent two federal fiscal years (FFYs) of –– Aggregating the patient-level and hospital- MEDPAR data available (2015 and 2016), which level data from member hospitals and included Medicare Advantage health maintenance calculating a set of performance measures at organization encounters. The 100 Top Hospitals the system level program has used the MEDPAR database for many years. We believe it to be an accurate and –– Classifying health systems into comparison reliable source for the types of high-level analyses groups based on total operating expense performed in this study. * The MEDPAR data years quoted in 100 Top Hospitals research are based on an FFY, a year that begins on October 1 of each calendar year and ends on September 30 of the following calendar year. FFYs are identified by the year in which they end (for example, FFY 2016 begins October 1, 2015, and ends September 30, 2016). Data for all CMS Hospital Compare measures is provided in calendar years, except the 30-day rates. CMS publishes the 30-day rates as three-year combined data values. We label these data points based on the end date of each data set. For example, July 1, 2013 - June 30, 2016, is named “2016.” 21
We used the CMS Hospital Compare data The recalibrated models were used in producing set published in the third quarter of 2017 for the risk-adjusted inpatient mortality and healthcare-associated infection (HAI) measures, complications indexes, based on two years of 30-day mortality rates, 30-day readmission rates, MEDPAR data (2015 and 2016). The severity- Medicare spending per beneficiary (MSPB) index, adjusted LOS was produced based on MEDPAR and Hospital Consumer Assessment of Healthcare 2016 data. Providers and Systems (HCAHPS) patient perception-of-care data26. Present-on-admission coding adjustments From 2010 through 2016, we have observed a We also used the 2016 Medicare cost reports, significant rise in the number of principal diagnosis published in the federal Hospital Cost Report and secondary diagnosis codes that do not have Information System (HCRIS) third-quarter 2017 a valid POA indicator code in the MEDPAR data data set, to create our proprietary database for files. Since 2011, an invalid code of “0” has been determining system membership based on “home appearing. This phenomenon has led to an artificial office” or “related organization” relationships rise in the number of complications that appear to reported by hospitals. The cost reports were also be occurring during the hospital stay. See Appendix used to aggregate member hospital total operating C for details. expense to the system level. This data was used to classify health systems into three To correct for this bias, we adjust MEDPAR record comparison groups. processing through our inpatient mortality and complications risk models and LOS severity- Risk- and severity-adjustment models adjustment model as follows: The IBM Watson Health™ proprietary risk- and 1. Original, valid (Y, N, U, W, or 1) POA codes severity-adjustment models for inpatient mortality, assigned to diagnoses were retained complications, and LOS have been recalibrated for this study release using FFY 2015 data available 2. Where a POA code of “0” appeared, we took in the all-payer Watson Health Projected Inpatient the next four steps Database (PIDB). The PIDB is one of the largest a. We treated all diagnosis codes on the US inpatient, all-payer databases of its kind, CMS exempt list as “exempt,” regardless containing approximately 23 million inpatient of POA coding discharges annually, obtained from approximately 5,000 hospitals, which comprise more than 65% b. We treated all principal diagnoses as of the nonfederal US market. Watson Health risk- “present on admission” and severity-adjustment models take advantage c. We treated secondary diagnoses where the of available present-on-admission (POA) coding POA code “Y” or “W” appeared more than that is reported in all-payer data. Only patient 50% of the time in the Watson Health all- conditions that are present on admission are payer database as “present on admission” used to determine the probability of death, complications, or the expected LOS. d. All others were treated as “not present” 22 IBM Watson Health
Hospital exclusions Health system exclusions After building the database, we exclude hospitals Health systems are excluded if: that would have skewed the study results. –– One or more required measures are missing* Excluded from the study were: –– Fewer than 50% of member hospitals have valid –– Certain specialty hospitals (children’s, POA coding psychiatric, substance abuse, rehabilitation, cancer, and long-term acute care) –– Fewer than 50% of member hospitals have valid data for any one or more required measures** –– Federally owned hospitals –– Hospitals not located within the 50 states After all system exclusions were applied, 338 (such as those in Puerto Rico, Guam, and the individual health systems were included in the US Virgin Islands) 2018 study. –– Hospitals with Medicare average LOS longer NOTE: CMS does not publish MSPB measures for than 30 days in FFY 2016 Maryland hospitals due to a separate payment –– Hospitals with no reported Medicare patient agreement. For this reason, we substituted the deaths in FFY 2016 comparison group median, and winner-excluded Maryland health systems that had no reported –– Hospitals that had fewer than 60% of patient MSPB measure to allow Maryland health systems records with valid POA codes to remain in the study. If a Maryland health system included hospitals in other states, we winner- Cardiac, orthopedic, women’s hospitals, and CAHs excluded them when more than 50% of their are included in the study, if they are not excluded member hospitals had no reported MSPB measure. for any other criteria listed above. In addition, specific patient records are also excluded: –– Patients who were discharged to another short-term facility (this is done to avoid double-counting) –– Patients who were not at least 65 years old –– Rehabilitation, psychiatric, and substance abuse patients –– Patients with stays shorter than one day After all exclusions were applied, 2,422 individual hospitals were included in the 2018 study. * For composite measures (HAI, 30-day mortality, 30-day readmissions), the exclusion is applied ONLY if all individual measure comprising the composite are missing. - For HAI, different numbers of individual measures were required depending on the comparison group (five for large and medium systems; three for small systems). A system not meeting the minimum was excluded. See Appendix C for details. - In systems where one or more individual 30-day mortality or 30-day readmission rates were missing, BUT NOT ALL, we calculated a median value for each, by comparison group, and substituted the median for the missing value. ** This rule was not applied to the HAI composite, which followed different exclusion logic. See Appendix C for details. 23
Identifying health systems To analyze health system performance, we To be included in the study, a health system must aggregate data from all of a system’s included have at least two short-term, general, acute hospitals. In the methodology summary tables in care hospitals with separate Medicare provider this section, we provide specific details about the identification numbers. The minimum of two calculations used for each performance measure hospitals must be met after hospital exclusions and how these measures are aggregated to have been applied. In addition, we also include determine system performance. any cardiac, orthopedic, women’s hospitals, and CAHs that passed the hospital exclusion rules After all exclusions were applied and parent cited on the previous page. For the 2018 study, systems identified, the final 2018 study group we identified the “parent” system by finding the included 338 health systems with the profiles “home office” or “related organization”, as reported outlined in Table 9. on the hospitals’ 2016 (or 2015) Medicare cost report. We identify health systems that have subsystems with their own reported home offices or related organization relationships. Both the parent system and any identified subsystems are treated as “health systems” for purposes of this study and are independently profiled. Hospitals that belong to a parent health system and a subsystem are included in both for analysis of system performance. Table 9. 2018 health systems study group System category Systems Member hospitals Medicare patient Average hospitals Average discharges discharges, FFY per system per system 2015 Winning systems 15 121 330,760 8.1 22,051 Nonwinning systems 323 2,798 9,368,880 8.7 29,006 Total systems 338 2,919 9,699,640 8.6 28,697 Note: A hospital can be a member of both a parent system and a subsystem of that parent. They will be included in both parent and subsystem member hospital counts. The total unduplicated hospital count in this study was 2,422 hospitals. 24 IBM Watson Health
Classifying health systems into The nine measures included in the 2018 study, by comparison groups performance domain, are: Health system comparison groups We refine the analysis of health systems by dividing Inpatient outcomes them into three comparison groups based on 1. Risk-adjusted inpatient mortality index total operating expense of the identified member hospitals. This is done to develop more action- 2. Risk-adjusted complications index driving benchmarks for like systems. For the 2018 3. Mean HAI index study, the three comparison groups we used are listed in Table 10. Extended outcomes 4. Mean 30-day risk-adjusted mortality rate Table 10. Health system comparison groups, defined (includes acute myocardial infarction [AMI], Health system Total operating Number of Number of comparison expense systems in winners heart failure [HF], pneumonia, chronic group study obstructive pulmonary disease [COPD], Large > $1.85 billion 113 5 and stroke) Medium $800 million - 116 5 5. Mean 30-day risk-adjusted readmission $1.85 billion rate (includes AMI, HF, pneumonia, total hip Small < $800 million 109 5 arthroplasty and/or total knee arthroplasty Total systems 338 15 [THA/TKA], COPD, and stroke) Scoring health systems on weighted Operational efficiency performance measures 6. Severity-adjusted average LOS Evolution of performance measures 7. Mean emergency department (ED) throughput We use a balanced scorecard approach, based on (wait time minutes) public data, to select the measures we believe to be most useful for boards, CEOs, and other leaders 8. MSPB index in the current health system operating environment. In addition, we continually review trends in the Patient experience healthcare market, to identify the need for, and 9. HCAHPS score (overall hospital performance) availability of, new performance measurement approaches. We welcome feedback from hospital The data sources for these measures are listed in and system executives on the usefulness of our Table 11. measures and our approach. As the healthcare industry has changed, our methods have evolved. Our current measures are centered on four main components of system performance: inpatient outcomes, extended outcomes, operational efficiency, and patient experience. Measures of financial performance are also included for information only, as not all health systems have publicly reported, audited financial statements. 25
Table 11. Summary of measure data sources and data periods Performance measure Current performance Five-year trend performance (15 Top Health Systems award selection) Risk-adjusted inpatient mortality index MEDPAR federal fiscal year (FFY) 2015 and 2016* MEDPAR FFY 2011 - 2016* Risk-adjusted complications index MEDPAR FFY 2015 and 2016* MEDPAR FFY 2011 - 2016* Mean HAI index CMS Hospital Compare Calendar Year (CY) 2016 Trend not available Mean 30-day mortality rate CMS Hospital Compare July 1, 2013 - June 30, 2016 CMS Hospital Compare: Three-year data sets ending June 30 in 2013, 2014, 2015, 2016 Mean 30-day readmission rate (AMI, HF, CMS Hospital Compare July 1, 2013 - June 30, 2016 CMS Hospital Compare: Three-year data sets pneumonia, THA/TKA**, COPD, stroke) ending June 30 in 2013, 2014, 2015, 2016 Severity-adjusted ALOS MEDPAR FFY 2016 MEDPAR FFY 2012 - 2016 Mean ED throughput measure CMS Hospital Compare CY 2016 CMS Hospital Compare 2012 - 2016 MSPB index CMS Hospital Compare CY 2016 CMS Hospital Compare 2012 - 2016 HCAHPS score (overall hospital rating) CMS Hospital Compare CY 2016 CMS Hospital Compare 2012 - 2016 * Two years of data are combined for each study year data point. ** Primary, elective total hip arthroplasty and total knee arthroplasty. Following is the rationale for the selection of our Extended outcomes balanced scorecard domains and the measures The extended outcomes measures (30-day used for each. mortality rates for AMI, HF, pneumonia, COPD, and stroke patients; and 30-day readmission rates for Inpatient outcomes AMI, HF, pneumonia, THA/TKA, COPD, and stroke Our measures of inpatient outcomes include patients) help us understand how the system’s three measures: risk-adjusted mortality index, patients are faring over a longer period27. These risk-adjusted complications index, and mean HAI measures are part of the CMS Hospital Value- index. These measures show us how the system Based Purchasing Program and are widely reported is performing on what we consider to be the most on in the industry. Hospitals with lower values basic and essential care standards (survival, error- appear to be providing, or coordinating the care free care, and infection prevention) while treating continuum with better medium-term results for patients in their hospitals. these conditions. As systems become more interested in contracting for population health management, we believe that understanding outcomes beyond the walls of the acute care setting is imperative. We are committed to adding new metrics that assess performance along the continuum of care as they become publicly available. 26 IBM Watson Health
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