Watson Health 50 Top Cardiovascular Hospitals Study, 2020 - November 18, 2019

 
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November 18, 2019

Watson Health
50 Top Cardiovascular
Hospitals Study, 2020
IBM Watson Health™
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Cambridge, MA 02142
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Watson Health 50 Top Cardiovascular Hospitals Study,
2020; 21st edition

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Contents                             Introduction
                                     Each year, IBM Watson Health™ conducts objective,
03   Introduction                    quantitative research to shine a light on the nation’s
                                     highest-performing hospitals, health systems, and
09   This year’s winners
                                     cardiovascular service lines, through the Watson
11   Findings                        Health 100 Top Hospitals® program. The goal of the
23   Methodology                     program is to deliver unbiased, guiding insights that
                                     can help all healthcare organizations focus their
37   Appendix: Methodology details   improvement initiatives and move toward consistent,
54   Footnotes                       sustainable top performance. Organizations do not
                                     apply to participate in the study, and award winners
                                     do not pay to market their honor.

                                     Now, as we have since 1998, we have analyzed
                                     public data with our proprietary methodologies to
                                     provide the industry with this year’s Watson Health
                                     50 Top Cardiovascular Hospitals study.

                                     Like all 100 Top Hospitals program research, this
                                     study creates a balanced scorecard of metrics to
                                     identify top-performing cardiovascular providers in
                                     the United States.

                                     But the study is far more than a list. Since our
                                     cardiovascular award winners have achieved an
                                     outstanding balance of clinical and operational
                                     excellence in a complex and changing landscape, we
                                     believe their success can help provide a clear and
                                     bright path for others to follow.

                                     The information contained in our 50 Top
                                     Cardiovascular Hospitals study is designed to put
                                     impartial, action-driving, and attainable benchmarks
                                     in the spotlight for hospital and clinical leaders
                                     across the country to leverage as they work to raise
                                     their own organizations’ standards of performance.

                                                                                              3
The Watson Health 50 Top                  Illuminating achievement for a value-based
Cardiovascular Hospitals study focuses    world
on one of healthcare’s most important     By finding ways to take clinical and operational
service lines that affects hundreds of    performance to the next level, the winners of our 50
                                          Top Cardiovascular Hospitals study are identifying
thousands of patients’ lives annually
                                          opportunities to deliver healthcare value to patients,
and adds billions of dollars to our       communities, and payers.
nation’s overall healthcare costs.
                                          Repeatedly, we see that these hospitals lead the
                                          cardiovascular healthcare industry, often inspiring
                                          the clinicians and staff within their own walls and
That’s why publishing new and             systems, as well as their peers and competitors, to
achievable benchmarks for                 better understand data and benchmarks, and close
                                          performance gaps.
cardiovascular service line performance
is important and has the potential to     It is a kind of leadership that is perhaps becoming
make a large and lasting impact on the    even more important as the industry continues to
                                          transition to a value-based payment environment.
quality and cost of care for heart
patients across the US.
                                          Why cardiovascular hospitals?

                                          A 2018 report from the American Heart Association
                                          states that about 92.1 million American adults are
                                          living with some form of cardiovascular disease or
                                          the after-effects of stroke1. Cardiovascular diseases
                                          have a significant impact on mortality and cost,
                                          accounting for about 2,300 Americans dying each
                                          day, an average of 1 death every 38 seconds and
                                          costs the United States about $200 billion each
                                          year2. In addition, prevalence of cardiovascular
                                          disease is expected to increase to a point where
                                          approximately 40 percent of the US population will
                                          have the disease by 20303.

                                          It is no wonder, then, that cardiovascular services are
                                          among the highest-profile service lines in healthcare.
                                          With the stakes so high, it is important that hospitals
                                          provide high-quality, highly efficient cardiac care and
                                          that they look for ways to improve. The 50 Top
                                          Cardiovascular Hospitals study attempts to answer
                                          that need each year.

                                                                                                    4
The 50 Top Cardiovascular Hospitals study is also         A measure of leadership excellence and its
unique for the 100 Top Hospitals program. The             effect on service line performance
program’s research series publishes only this one
clinical service line study. Only the cardiovascular      For more than 20 years, the 100 Top Hospitals
service line has consistently had both the inpatient      program has collaborated with academics on a wide
volume and supplemental clinical process metrics          range of topics to dig deeper into the leadership
from the Centers for Medicare & Medicaid Services         practices of the nation’s top healthcare
(CMS) Hospital Compare initiative to support the          organizations.
publication of scorecard-based benchmarks for a           As such, the 100 Top Hospitals studies not only
service line. And with each annual 50 Top                 provide a distinctive approach to measuring the
Cardiovascular Hospitals study, more is learned, as       performance of hospitals, health systems, and
the transparency and depth of inpatient and               cardiovascular service lines, but also deliver insights
continuum-of-care data grow and evolve.                   into the effectiveness of hospital leadership. Higher
                                                          composite scores on our national balanced scorecard
                                                          reflect the effectiveness of the leadership team in
Objective, real-world assessment                          executing both short-term and long-term strategies
                                                          across the organization.
To maintain the study’s level of integrity, only public
data sources are used for calculating study metrics.      The leadership of today’s hospitals, including the
This helps eliminate bias while including as many         board, executive team, and medical staff leadership,
hospitals as possible, and facilitates consistency of     is responsible for ensuring all facets of a hospital and
definitions and data. In turn, this allows us to          its cardiovascular service line are performing at the
produce national norms and benchmarks that are            same high level. The 50 Top Cardiovascular Hospitals
useful for assessing clinical outcomes and                study and analytics provide a view of that enterprise
operational efficiency in an objective, independent,      performance alignment. And that information can be
and meaningful way. In addition, we report rate of        helpful in assessing the strategic intersection among
improvement compared to peers, which enables              cost, quality, efficiency, and community value.
clinical leadership and service line management to
determine their real-world progress toward
consistent top performance within and across the          The performance of this year’s
cardiovascular patient groups profiled.                   50 Top Cardiovascular Hospitals

                                                          The 50 Top Cardiovascular Hospitals study identifies
                                                          US hospitals that have achieved the highest
                                                          performance on a balanced scorecard of
                                                          performance measures.

                                                          This year, based on comparisons between the study
                                                          winners and a peer group of similar hospitals that
                                                          were not winners, we found that our study winners
                                                          delivered better outcomes while operating more
                                                          efficiently and at a lower cost.

                                                                                                                     5
Compared to nonwinning cardiovascular hospitals,                             We based this analysis on the Medicare patients
this year’s winners had:                                                     included in this study. If the same standards were
                                                                             applied to all inpatients, the impact would be even
• Significantly higher inpatient survival (28.7% to                          greater.
   47.4% higher)

• Fewer patients with complications (6.3% to 27.7%
   fewer)                                                                    Trends in cardiovascular care

• Higher 30-day survival rates for acute myocardial                          An analysis of trends in cardiovascular care over the
   infarction (AMI), and coronary artery bypass                              five years ending in this study’s data year, revealed:
   grafting (CABG) patients (0.3 to 0.5 percentage                           • Readmission rates for AMI and CABG patients
   points higher)*                                                             showed statistically significant improvement in a
• Lower readmission rates for AMI, HF, and CABG                                large percentage of hospitals (38.2% and 49.9%
                                                                               improvement, respectively)
   patients (0.5 to 0.8 percentage points lower)
                                                                             • HF wage- and severity-adjusted average cost per
• Average lengths of stay (ALOS) for CABG patients
                                                                               case also showed statistically significant
   that were over one day lower than nonwinners and
                                                                               improvement for a large percentage of hospitals
   on average a half a day lower for AMI, HF, and
                                                                               (32.2%), which was more than twice the
   percutaneous coronary intervention (PCI)**
                                                                               improvement than in the other patient groups
• $1,485 to $6,704 less in total costs per patient
                                                                             • As in our prior study, a majority of hospitals (from
   case (the smallest dollar-amount difference was                             67% to 86%) continue to hold the cost of
   for HF, and the largest was for CABG)                                       delivering care to AMI, HF, CABG, and PCI patients
• Lower average 30-day episode of care payments                                stable from 2014 to 2018, with no statistically
   for AMI and HF ($1,323 and $706 less per                                    significant change, at 95% confidence

   episode, respectively)

Further, our study indicated that if all cardiovascular                      Additional findings
hospitals performed at the same level of this year’s
winners:                                                                     For more details about the 50 Top Cardiovascular
                                                                             Hospitals study findings, including complete hospital
• More than 11,000 additional lives could be saved                           reporting data on this year’s winning cardiovascular
                                                                             hospitals, please see the Findings section of this
• More than 2,800 heart patients could be
                                                                             document.
   complication-free

• Over $1.5 billion could be saved

* An AMI is a heart attack, which happens when the arteries leading to the heart become blocked and blood supply is slowed or stopped. Heart failure is a
weakening of the heart's pumping power, leading to the body not receiving enough oxygen and nutrients to work properly. A CABG is a type of surgery that
improves blood flow to the heart by moving or redirecting a blood vessel to bypass blockages.
** A PCI is a procedure that uses a small stent to open up blood vessels in the heart that have narrowed from a buildup of plaque.

                                                                                                                                                        6
Study integrity                                             The value of 50 Top
                                                            Cardiovascular Hospitals
Organizations are included in the 100 Top Hospitals®        benchmarks
program studies based solely on availability of data
from Medicare and meeting criteria listed in the
methodology section, without regard to whether they         • To improve performance,
                                                              cardiovascular hospital leaders need
are a client. They do not apply to be included in the
                                                              objective information about what is
studies, nor do winners pay to promote their award.
                                                              achievable. They need relevant
                                                              benchmarks that allow them to
To uphold the integrity of the study, it is the policy of
                                                              compare their performance to peers
IBM Watson Health to revoke a 100 Top Hospitals
                                                              and top-performing organizations.
award if hospital data is found to be inaccurate or
misleading for any 100 Top Hospitals data source.           • By naming the 50 Top
                                                              Cardiovascular Hospitals in the
At the sole discretion of IBM Watson Health, the              nation, the 100 Top Hospitals
circumstances under which a 100 Top Hospitals                 program provides hospital
                                                              executives, physicians, and
award could be revoked include, but are not limited
                                                              cardiovascular service line managers
to:
                                                              with practical targets for raising
• Inaccurate data                                             performance.
• Agency investigations or sanctions                        • Information in this study, and in
                                                              separate hospital-specific reports,
                                                              provides performance levels to
We welcome your input                                         reach for, with detailed analysis of
Since 1993, the 100 Top Hospitals program has                 how the winners and their
worked to ensure that the measures and                        nonwinning peers performed on the
methodologies used are fair, consistent, and                  study’s balanced scorecard of
meaningful. We continually test the validity of our           measures.
performance measures and data sources.

In addition, as part of our internal performance
improvement process, we welcome comments about
our study from health systems, hospitals, and
physicians. To submit comments, visit the Contact Us
section of 100tophospitals.com.

                                                                                                     7
More about the 100 Top Hospitals program                   About IBM Watson Health
The 50 Top Cardiovascular Hospitals research is one        Watson Health aspires to improve lives and give hope
of several studies of the Watson Health 100 Top            by delivering innovation to address the world’s most
Hospitals program. To increase understanding of            pressing health challenges through data and
trends in specific areas of the healthcare industry, the   cognitive insights.
program includes a range of studies and reports:
                                                           Each day, professionals make powerful progress
• 100 Top Hospitals and Everest Award studies
                                                           toward a healthier future. In an industry that is
  Research that annually recognizes the 100 top-           fragmented and complex, there are many
  rated hospitals in the nation based on a                 opportunities to support professionals as they work
  proprietary, balanced scorecard of overall               toward their goals to simplify, solve, care or cure, so
  organizational performance and also identifies           they can transform health for the people they serve.
  those hospitals that excel at long-term rates of
                                                           At Watson Health, we see and work across the health
  improvement in addition to performance.
                                                           landscape, from payers and providers to government
• 50 Top Cardiovascular Hospitals study                    and life sciences. With an unrivaled vantage point
  An annual study identifying hospitals that               across the industry, deep health expertise, and the
  demonstrate the highest performance in hospital          power of cognitive computing, we create intelligent
  cardiovascular services.                                 connections that shape new ways of working, drive
                                                           value, and accelerate breakthroughs.
• 15 Top Health Systems study
  An annual study introduced in 2009 that provides         With Watson Health at work in their organizations,
  an objective measure of health system                    our clients can uncover, connect, and act on the
  performance overall and offers insight into the          insights that advance their work, and change the
  ability of a system’s member hospitals to deliver        world.
  consistent top performance across the                    For more information about IBM Watson Health, visit
  communities they serve, all based on our national        ibm.com/ watson/health.
  health system scorecard.

• 100 Top Hospitals Performance Matrix
  A two-dimensional analysis, available for nearly all
  US hospitals, that provides a view of how long-
  term improvement and resultant current
  performance compare with national peers.

• Custom benchmark reports
  A variety of reports designed to help healthcare
  executives understand how their organizational
  performance compares to peers within health
  systems, states, and markets.
You can read more about these studies and see lists
of all winners by visiting 100tophospitals.com.

                                                                                                                     8
The Watson Health 50 Top                                                      Teaching hospitals with cardiovascular residency programs*
                                                                                                                                               Medicare
Cardiovascular Hospitals, 2020                                                Hospitals                                     Location
                                                                                                                                               ID
                                                                              Beaumont Hospital - Troy                      Troy, MI           230269
The Watson Health™ 100 Top Hospitals® program is                              Guthrie Robert Packer Hospital                Sayre, PA          390079

pleased to present the 2020 Watson Health 50 Top                              Huntington Hospital                           Pasadena, CA       050438
                                                                              Kettering Medical Center                      Kettering, OH      360079
Cardiovascular Hospitals.
                                                                              Lahey Hospital & Medical Center               Burlington, MA     220171
                                                                              Lankenau Medical Center                       Wynnewood, PA      390195
We stratified winners by three separate peer groups:
                                                                              Mayo Clinic Hospital - Saint Marys Hospital   Rochester, MN      240010
teaching hospitals with cardiovascular residency                              OhioHealth Riverside Methodist Hospital       Columbus, OH       360006

programs, teaching hospitals without cardiovascular                           St. Vincent Indianapolis Hospital             Indianapolis, IN   150084
                                                                              Summa Akron City Hospital                     Akron, OH          360020
residency** programs, and community hospitals
                                                                              UAB Hospital                                  Birmingham, AL     010033
                                                                              UNC Rex Healthcare                            Raleigh, NC        340114
Please note that the order of hospitals in the
                                                                              University Hospital                           Madison, WI        520098
following tables does not reflect performance rating.                         Virtua Our Lady of Lourdes Hospital           Camden, NJ         310029

Hospitals are ordered alphabetically. For full details                        WakeMed Raleigh Campus                        Raleigh, NC        340069

on these peer groups and the process we used to
select the winning benchmark hospitals, please see
the Methodology section of this document.

* Order of hospitals does not reflect performance rating. Hospitals are ordered alphabetically.
** Throughout this document where we refer to ‘cardiovascular residency programs,’ we are including cardiovascular fellowship programs as well.
Please refer to the Methodology section of this document for a complete list of cardiovascular residency and fellowship programs that are used to
classify hospitals.

                                                                                                                                                          9
Teaching hospitals without cardiovascular residency programs*
                                                                        Medicare
Hospitals                                            Location
                                                                        ID
Aspirus Wausau Hospital                              Wausau, WI         520030
Baylor Scott & White Medical Center - Hillcrest      Waco, TX           450101
CHRISTUS St. Michael Health System                   Texarkana, TX      450801
Halifax Health Medical Center                        Daytona Beach, FL 100017
Holston Valley Medical Center
                                                     Kingsport, TN      440017
Lee Memorial Hospital/HealthPark Medical Center
                                                     Fort Myers, FL     100012
(LMH/HPMC)
MacNeal Hospital                                     Berwyn, IL         140054

Mercy General Hospital                               Sacramento, CA     050017
MercyOne Des Moines Medical Center                   Des Moines, IA     160083
Mission Hospital                                     Asheville, NC      340002
MultiCare Tacome General Hospital                    Tacoma, WA         500129
North Mississippi Medical Center                     Tupelo, MS         250004
PIH Health Hospital - Whittier                       Whittier, CA       050169
Sacred Heart Hospital                                Pensacola, FL      100025
St. Joseph Mercy Ann Arbor                           Ann Arbor, MI      230156

Community hospitals*
                                                                      Medicare
Hospitals                                          Location
                                                                      ID
Asante Rogue Regional Medical Center               Medford, OR        380018
Baylor Scott & White Medical Center - Round Rock Round Rock, TX       670034
Bellin Health                                      Green Bay, WI      520049
Carolinas Medical Center Mercy-Pineville           Charlotte, NC      340098
Columbus Regional Hospital                         Columbus, IN       150112
Doylestown Hospital                                Doylestown, PA     390203
Eastern Idaho Regional Medical Center              Idaho Falls, ID    130018
Harlingen Medical Center                           Harlingen, TX      450855
                                                   Fredericksburg,
Mary Washington Hospital                                              490022
                                                   VA
McLaren Northern Michigan Hospital                 Petoskey, MI       230105
Saint Mary's Regional Medical Center               Reno, NV           290009
Salem Hospital                                     Salem, OR          380051
San Antonio Regional Hospital                      Upland, CA         050099
Sentara RMH Medical Center                         Harrisonburg, VA   490004
Shasta Regional Medical Center                     Redding, CA        050764
St. David's Medical Center                         Austin, TX         450431
St. Vincent Heart Center of Indiana                Indianapolis, IN   150153
Thibodaux Regional Medical Center                  Thibodaux, LA      190004
University of Maryland St. Joseph Medical Center   Towson, MD         210063
Wake Forest Baptist Health High Point Medical
                                                   High Point, NC     340004
Center

   * Order of hospitals does not reflect performance rating. Hospitals are ordered alphabetically.

                                                                                                     10
Findings                                                 • The 2020 cardiovascular study winners had
                                                           27.7% and 6.3% lower complications observed-
This year’s Watson Health™ 50 Top Cardiovascular           to-expected index values for CABG and PCI,
Hospitals provided better clinical care and were more      respectively, when compared to their peers.
efficient than their peers. If all United States
                                                         • Long-term outcomes were better at winning
hospitals’ cardiovascular service lines performed at
                                                           hospitals, with the exception of Heart Failure (HF)
the level of these study winners, more than 11,000         30-day mortality, for which winning hospitals had
additional lives and over $1.5 billion could be saved,     a slightly higher median rate than nonwinners
and nearly 2,800 additional bypass and angioplasty         (11.4% v. 11.3%).
patients could be complication-free.
                                                         • 30-day heart attack (AMI) and CABG mortality
These findings are based on the Medicare patient           rates were all lower among winning hospitals than
data included in this study and analysis of study          peers, meaning a smaller percentage of patients
winners versus nonwinners. If the same standards           died, of any cause, within 30 days after inpatient
were applied broadly to all inpatients, the impact         admission. The difference was greatest among
                                                           AMI patients, with a 30-day mortality rate of
would be even greater.
                                                           12.2% for winners versus 12.7% for nonwinners.
One of the goals of the Watson Health 100 Top
                                                         • The winning hospitals also had lower readmission
Hospitals® program is to provide action-driving
                                                           rates, with a smaller percentage of patients
benchmarks that can help all hospitals improve their       returning to the hospital, for any cause, within 30
performance. This section highlights winner                days of discharge. AMI and CABG patient
(benchmark) versus nonwinner differences in all            readmissions showed the same difference, with
study hospitals as a group and by hospital type            rates of 14.9% and 12%, respectively, which was
(residency program and teaching status).                   nearly a full percentage point better than
                                                           nonwinning peers.
Benchmark hospitals outperformed peers
                                                         • Winning hospitals were more efficient, releasing
Comparisons between this year’s 50 Top                     patients sooner than their peers. The typical
Cardiovascular Hospitals and their peers showed that       winning hospital released CABG patients more
room for improvement still exists (See Table 1).           than a full day (1.2) earlier, and in this year’s study
                                                           results, AMI, HF, and PCI patients were released
• Survival rates were markedly better at benchmark
                                                           0.5 – 0.6 days sooner than patients getting care at
  (winning) hospitals, particularly for patients           nonwinning peers.
  receiving coronary artery bypass graft surgeries
  (CABGs). The median benchmark hospital had a           • The 50 Top Cardiovascular Hospitals maintained
  risk-adjusted CABG inpatient mortality index of          high clinical performance while keeping inpatient
  0.5, meaning there were 50% fewer deaths than            costs lower. The typical winning hospital spent
                                                           about $6,700 less per CABG patient and $2,900
  would be expected, given patient severity. With an
                                                           less per PCI case.
  index of 0.95, peer (nonwinning) hospitals had
  only 5% fewer CABG deaths than expected.               • Benchmark hospitals also showed stronger
                                                           performance on measures of total Medicare claims
• Notably, in the 2020 CABG patient group we also
                                                           payment across 30-day episodes of care for AMI
  saw the most pronounced difference in severity-          and HF patients ($1,323 less per AMI episode and
  and wage-adjusted cost per case, with winners            $706 less per HF episode) compared to
  having an average cost of $35,197, versus peers at       nonwinning peers.
  $41,901 – a difference of over $6,000.

                                                                                                                 11
Table 1: National performance comparisons (all hospitals in study)

                                                                                                        Benchmark compared with peer group

                                                                                  Benchmark   Peer
                            Performance measure                                                                                              How winning benchmark
                                                                                  median      median                          Percent
                                                                                                        Difference                           hospitals outperform
                                                                                                                              difference
                                                                                                                                             nonwinning peer hospitals

                                                        AMI mortality             0.72        1.01      -0.29                 -28.7          Lower mortality

                                                        HF mortality              0.67        1.01      -0.34                 -33.7          Lower mortality
                            Risk-adjusted mortality
                            index
                                                        CABG mortality            0.50        0.95      -0.45                 -47.4          Lower mortality
 Clinical outcome
 measuresa                                              PCI mortality             0.68        1.00      -0.32                 -32.0          Lower mortality

                                                        CABG complications        0.68        0.94      -0.26                 -27.7          Fewer complications
                            Risk-adjusted
                            complications index
                                                        PCI complications         0.89        0.95      -0.06                 -6.3           Fewer complications

 Clinical process           CABG patients with internal mammary artery (IMA)
                                                                                  97.8        95.9      2.0                   n/a            Higher IMA use
 measuresa,c                use (%)

                            AMI 30-day mortality (%)                              12.2        12.7      -0.5                  n/a            Lower 30-day mortality

                            HF 30-day mortality (%)                               11.4        11.3      0.1                   n/a            Higher 30-day mortality

                            CABG 30-day mortality (%)                             2.7         3.0       -0.3                  n/a            Lower 30-day mortality
 Extended outcome
 measuresb,c                AMI 30-day readmission (%)                            14.9        15.7      -0.8                  n/a            Fewer 30-day readmissions

                            HF 30-day readmission (%)                             20.8        21.3      -0.5                  n/a            Fewer 30-day readmissions

                            CABG 30-day readmission (%)                           12.0        12.8      -0.8                  n/a            Fewer 30-day readmissions

                            AMI severity-adjusted average length of stay (ALOS)   3.7         4.1       -0.5                  -11.2          Shorter ALOS

 Process efficiency         HF severity-adjusted ALOS                             4.3         4.9       -0.6                  -11.8          Shorter ALOS

                            CABG severity-adjusted ALOS                           8.1         9.2       -1.2                  -12.6          Shorter ALOS

                            PCI severity-adjusted ALOS                            3.2         3.6       -0.5                  -12.5          Shorter ALOS

                            AMI wage- and severity-adjusted average cost per
                                                                                  $8,339      $9,974    -$1,635               -16.4          Lower cost per case
                            case

                            HF wage- and severity-adjusted average cost per
                                                                                  $8,055      $9,540    -$1,485               -15.6          Lower cost per case
                            case
 Cost efficiency
                            CABG wage- and severity-adjusted average cost per
                                                                                  $35,197     $41,901   -$6,704               -16.0          Lower cost per case
                            case

                            PCI wage- and severity-adjusted average cost per
                                                                                  $15,511     $18,432   -$2,921               -15.8          Lower cost per case
                            case

                            AMI 30-day episode payment                            $23,671     $24,994   -$1,323.50            -5.3
                                                                                                                                             Lower 30-day payment

 Extended efficiency        HF 30-day episdoe payment                             $17,079     $17,785   -$706.50              -4.0
 measuresb                                                                                                                                   Lower 30-day payment

a. Medicare Provider Analysis and Review (MEDPAR) 2017 and 2018, combined

b. CMS Hospital Compare July 1, 2015 – June 30, 2018

c. We do not calculate percentage difference for measures already expressed as a percent

                                                                                                                                                                         12
Better performance at benchmark teaching                  • Unlike last year’s results, winners performed
hospitals with cardiovascular residency                     better than the nonwinning group on all 30-day
programs                                                    mortality and readmission measures, with the
                                                            greatest difference in the HF 30-day readmission
Teaching hospitals with specialized cardiovascular          rate (1.0 percentage point lower, 20.5% versus
residency and fellowship programs are generally             21.5%). The difference between winners and
believed to treat more complex patients, have a more        national peers on the CABG 30-day readmission
complex staffing mix, and incur higher costs than           measure was similar, at 0.8 percentage points
community hospitals and those without specific              lower (11.9% versus 12.7%).
cardiovascular teaching programs. Evaluating
performance among teaching hospitals with                 • Medicare 30-day episode payment measures
cardiovascular programs as a unique group helps to          showed AMI patients at winning cardiovascular
produce valid quantitative comparisons. (See Table          teaching hospitals having the greatest difference
2.)                                                         between winner and nonwinner performance
                                                            among all three comparison groups. At winning
• Continuing to set the standard bar at a very high         cardiovascular teaching hospitals, 30-day AMI
  mark, cardiovascular teaching winners’ inpatient          payments were 5.9% less than those at nonwinner
  mortality rates were 54% and 34% lower than               peer hospitals ($23,480 versus $24,962).
  peers for CABG and PCI patients, respectively.

• These benchmark hospitals were also leaders for
  treating PCI patients (6.5% fewer complications
  than peers). However their superior performance
  did not extend to CABG patients where nonwinning
  hospitals outperformed with 2% fewer
  complications.

• Cardiovascular teaching benchmark hospitals were
  also much more efficient than their peers, with
  severity-adjusted costs among all patient groups
  being on average almost 14% lower than costs
  calculated for peer facilities. The greatest absolute
  difference in cost was found for CABG patients at
  $4,196 less per bypass surgery case. In addition,
  winners had 13% lower cost per case for HF
  patients and about 17% lower cost for both AMI
  and PCI inpatients.

                                                                                                               13
Table 2: Performance comparisons for teaching hospitals with cardiovascular residency programs

                                                                                                 Benchmark compared with peer group

                                                                         Benchmark     Peer
                         Performance measure                                                                                          How winning benchmark
                                                                         median        median
                                                                                                 Difference   Percent difference      hospitals outperform
                                                                                                                                      nonwinning peer hospitals

                                                   AMI mortality         0.76          1.01      -0.25        -24.8                   Lower mortality

                         Risk-adjusted             HF mortality          0.82          0.97      -0.15        -15.5                   Lower mortality
                         mortality index           CABG mortality        0.44          0.96      -0.52        -54.2                   Lower mortality
 Clinical outcome
 measuresa                                         PCI mortality         0.68          1.03      -0.35        -34.0                   Lower mortality

                         Risk-adjusted             CABG complications    0.95          0.93      0.02         2.2                     More complications
                         complications index
                                                   PCI complications     0.87          0.93      -0.06        -6.5                    Fewer complications

 Clinical process        CABG patients with internal mammary artery
                                                                         97.9          96.8      1.1          n/a                     Higher IMA use
 measuresa,c             (IMA) use (%)

                         AMI 30-day mortality (%)                        11.8          12.4      -0.6         n/a                     Lower 30-day mortality

                         HF 30-day mortality (%)                         10.1          10.5      -0.4         n/a                     Lower 30-day mortality
                         CABG 30-day mortality (%)                       2.4           2.8       -0.4         n/a                     Lower 30-day mortality
 Extended outcome
                                                                                                                                      Fewer 30-day
 measuresb,c             AMI 30-day readmission (%)                      15.0          15.7      -0.7         n/a
                                                                                                                                      readmissions
                                                                                                                                      Fewer 30-day
                         HF 30-day readmission (%)                       20.5          21.5      -1.0         n/a
                                                                                                                                      readmissions
                                                                                                                                      Fewer 30-day
                         CABG 30-day readmission (%)                     11.9          12.7      -0.8         n/a
                                                                                                                                      readmissions
                         AMI severity-adjusted average length of stay
                                                                         3.7           4.1       -0.4         -10.5                   Shorter ALOS
                         (ALOS)
                         HF severity-adjusted ALOS                       4.3           5.0       -0.7         -13.8                   Shorter ALOS
 Process efficiency
                         CABG severity-adjusted ALOS                     8.5           9.1       -0.6         -7.0                    Shorter ALOS

                         PCI severity-adjusted ALOS                      3.1           3.7       -0.6         -15.8                   Shorter ALOS

                         AMI wage- and severity-adjusted average cost
                                                                         $8,130        $9,775    -$1,646      -16.8                   Lower cost per case
                         per case

                         HF wage- and severity-adjusted average cost
                                                                         $8,302        $9,529    -$1,228      -12.9                   Lower cost per case
                         per case
 Cost efficiency
                         CABG wage- and severity-adjusted average
                                                                         $37,154       $41,350   -$4,196      -10.1                   Lower cost per case
                         cost per case
                         PCI wage- and severity-adjusted average cost
                                                                         $15,668       $18,837   -$3,169      -16.8                   Lower cost per case
                         per case

                         AMI 30-day episode payment                      $23,480       $24,962   -$1,482      -5.9
                                                                                                                                      Lower 30-day payment
 Extended efficiency
 measuresb               HF 30-day episdoe payment                       $17,104       $17,892   -$788        -4.4
                                                                                                                                      Lower 30-day payment

a. Medicare Provider Analysis and Review (MEDPAR) 2017 and 2018, combined
b. CMS Hospital Compare July 1, 2015 – June 30, 2018
c. We do not calculate percentage difference for measures already expressed as a percent

                                                                                                                                                                  14
Better performance at benchmark teaching                • The greatest difference between winning and
hospitals without cardiovascular teaching                 nonwinning hospitals in the extended outcome
programs                                                  measures was found in the 30-day readmission
                                                          measure for CABG patients where there was
Winning teaching hospitals without cardiovascular         nearly a full percentage point difference (0.9) with
teaching programs were much more efficient than
                                                          rates of 11.8% versus 12.7%.
their peers, with large differences found in a number
of measures. (See Table 3.)                             • On the Medicare 30-day episode payment
                                                          measures, winning teaching hospitals without
• This difference was most notable in the inpatient
                                                          cardiovascular residency programs outperformed
  mortality measure across all patient groups, with
                                                          their peers, with lower median AMI and HF 30-day
  HF and CABG showing the greatest differences            payment values (1.1% and 3.2% lower,
  between winning and nonwinning hospitals: HF            respectively).
  with 43.6% fewer deaths and CABG with 52%
  fewer.                                                There were two measures in which nonwinning
                                                        hospitals outperformed the winning hospitals: PCI
• These benchmark hospitals also treated AMI, HF,
                                                        complications and HF 30-day mortality. Most
  CABG, and PCI cases at a lower cost, 19.2%,           noticeable is the difference found in performance on
  28.8%, 20.1% and 14.5% less, respectively,
                                                        the PCI complications index: Peer hospitals did
  saving $8,473 per CABG case and $1,967 per AMI        better than benchmark hospitals by a margin of 26%,
  case.
                                                        with a median index value of 0.94 compared to 1.19
• Most 30-day extended outcome measures were            among winners.
  also better at winning teaching hospitals without
  cardiovascular teaching programs, with winners
  having median AMI and CABG 30-day mortality
  rates 0.4 and 0.5 percentage points lower than
  those of peers (AMI – 12.5% v. 12.9%, CABG –
  2.6% v. 3.1%).

                                                                                                                 15
Table 3: Performance comparisons for teaching hospitals without cardiovascular residency programs

                                                                                                     Benchmark compared with peer group

                                                                         Benchmark         Peer                                        How winning
                         Performance measure                                                                                           benchmark hospitals
                                                                         median            median
                                                                                                     Difference   Percent difference
                                                                                                                                       outperform nonwinning
                                                                                                                                       peer hospitals

                                                   AMI mortality         0.73              1.01      -0.28        -27.7                Lower mortality

                         Risk-adjusted             HF mortality          0.57              1.01      -0.44        -43.6                Lower mortality
                         mortality index           CABG mortality        0.48              1.00      -0.52        -52.0                Lower mortality
 Clinical outcome
 measuresa                                         PCI mortality         0.65              0.97      -0.32        -33.0                Lower mortality
                                                   CABG complications    0.92              0.94      -0.02        -2.1                 Fewer complications
                         Risk-adjusted
                         complications index       PCI complications     1.19              0.94      0.25         26.6                 More complications

 Clinical process        CABG patients with internal mammary artery
                                                                         97.4              95.8      1.7          n/a                  Higher IMA use
 measuresa,c             (IMA) use (%)

                         AMI 30-day mortality (%)                        12.5              12.9      -0.4         n/a                  Lower 30-day mortality

                         HF 30-day mortality (%)                         11.6              11.5      0.1          n/a                  Higher 30-day mortality

                         CABG 30-day mortality (%)                       2.6               3.1       -0.5         n/a                  Lower 30-day mortality
 Extended outcome
                                                                                                                                       Fewer 30-day
 measuresb,c             AMI 30-day readmission (%)                      14.9              15.5      -0.6         n/a
                                                                                                                                       readmissions
                                                                                                                                       Fewer 30-day
                         HF 30-day readmission (%)                       21.2              21.3      -0.1         n/a
                                                                                                                                       readmissions
                                                                                                                                       Fewer 30-day
                         CABG 30-day readmission (%)                     11.8              12.7      -0.9         n/a
                                                                                                                                       readmissions
                         AMI severity-adjusted average length of stay
                                                                         3.8               4.2       -0.5         -10.7                Shorter ALOS
                         (ALOS)

                         HF severity-adjusted ALOS                       4.4               5.0       -0.6         -12.2                Shorter ALOS
 Process efficiency
                         CABG severity-adjusted ALOS                     8.1               9.3       -1.2         -12.4                Shorter ALOS

                         PCI severity-adjusted ALOS                      3.1               3.6       -0.5         -13.9                Shorter ALOS

                         AMI wage- and severity-adjusted average cost
                                                                         $8,267            $10,234   -$1,967      -19.2                Lower cost per case
                         per case
                         HF wage- and severity-adjusted average cost
                                                                         $6,998            $9,834    -$2,836      -28.8                Lower cost per case
                         per case
 Cost efficiency
                         CABG wage- and severity-adjusted average
                                                                         $33,656           $42,129   -$8,473      -20.1                Lower cost per case
                         cost per case
                         PCI wage- and severity-adjusted average cost
                                                                         $15,646           $18,310   -$2,663      -14.5                Lower cost per case
                         per case

                         AMI 30-day episode payment                      $24,430           $24,691   -$261        -1.1
                                                                                                                                       Lower 30-day payment
 Extended efficiency
                         HF 30-day episdoe payment                       $17,137           $17,696   -$559        -3.2
 measuresb                                                                                                                             Lower 30-day payment

a. Medicare Provider Analysis and Review (MEDPAR) 2017 and 2018, combined
b. CMS Hospital Compare July 1, 2015 – June 30, 2018
c. We do not calculate percentage difference for measures already expressed as a percent

                                                                                                                                                                 16
Better performance at benchmark community
hospitals

Benchmark community hospitals again outperformed
their peers on the inpatient risk-adjusted mortality
measure, with the most observable performance
difference being in the CABG patient group. Winning
community hospitals had a median risk-adjusted
mortality index value of 0.50, compared to the
median index value of 0.91 at peer hospitals (a
45.1% gap, with fewer patients dying at hospitals
named winners). (See Table 4.)

• The winning community hospitals were also much
  more efficient than their peers. They discharged
  CABG patients almost a day and a half sooner
  (1.4), HF patients almost a day sooner (0.9) and
  AMI patients a half a day sooner (0.5).

• Cost-per-case medians in all patient groups were
  also much lower for benchmark community
  hospitals, with the largest difference, in both
  absolute and percentage terms (23% less), being
  observed for CABG patients, at $9,642 less per
  case than peer hospitals.

• Notably, benchmark community hospitals had the
  most marked contrast in performance between
  winning and nonwinning hospitals on the risk-
  adjusted complications measure for both CABG
  and PCI patients, with a median observed-to-
  expected ratio for winners at 0.60, versus 0.99 for
  nonwinning peers in the CABG patient group (a
  difference of 39%), and a median observed-to-
  expected ratio for winners at 0.67, versus 0.98 for
  nonwinners in the PCI patient group (a difference
  of 31%).

                                                        17
Table 4: Performance comparisons for community hospitals

                                                                                                     Benchmark compared with peer group

                                                                            Benchmark      Peer                                        How winning
                          Performance measure                                                                                          benchmark hospitals
                                                                            median         median
                                                                                                     Difference   Percent difference
                                                                                                                                       outperform nonwinning
                                                                                                                                       peer hospitals

                                                    AMI mortality           0.69           0.98      -0.29        -29.6                Lower mortality

                          Risk-adjusted             HF mortality            0.66           1.02      -0.36        -35.3                Lower mortality
                          mortality index           CABG mortality          0.50           0.91      -0.41        -45.1                Lower mortality
 Clinical outcome
 measuresa                                          PCI mortality           0.73           1.00      -0.27        -27.0                Lower mortality
                                                    CABG complications      0.60           0.99      -0.39        -39.4                Fewer complications
                          Risk-adjusted
                          complications index       PCI complications       0.67           0.98      -0.31        -31.6                Fewer complications

 Clinical process         CABG patients with internal mammary artery
                                                                            98.1           95.5      2.6          n/a                  Higher IMA use
 measuresa,c              (IMA) use (%)

                          AMI 30-day mortality (%)                          12.3           12.7      -0.4         n/a                  Lower 30-day mortality

                          HF 30-day mortality (%)                           11.3           11.6      -0.4         n/a                  Lower 30-day mortality

                          CABG 30-day mortality (%)                         2.8            3.1       -0.4         n/a                  Lower 30-day mortality
 Extended outcome
 measuresb,c              AMI 30-day readmission (%)                        14.8           15.6      -0.9         n/a                  Fewer 30-day readmissions

                          HF 30-day readmission (%)                         20.4           21.3      -0.9         n/a                  Fewer 30-day readmissions

                          CABG 30-day readmission (%)                       12.4           13.0      -0.6         n/a                  Fewer 30-day readmissions

                          AMI severity-adjusted average length of stay
                                                                            3.7            4.1       -0.5         -11.1                Shorter ALOS
                          (ALOS)
                          HF severity-adjusted ALOS                         4.2            5.0       -0.9         -17.5                Shorter ALOS
 Process efficiency
                          CABG severity-adjusted ALOS                       7.9            9.3       -1.4         -14.8                Shorter ALOS

                          PCI severity-adjusted ALOS                        3.3            3.6       -0.3         -8.9                 Shorter ALOS

                          AMI wage- and severity-adjusted average cost
                                                                            $8,392         $10,033   -$1,641      -16.4                Lower cost per case
                          per case
                          HF wage- and severity-adjusted average cost
                                                                            $8,158         $9,574    -$1,415      -14.8                Lower cost per case
                          per case
 Cost efficiency
                          CABG wage- and severity-adjusted average cost
                                                                            $32,295        $41,937   -$9,642      -23.0                Lower cost per case
                          per case

                          PCI wage- and severity-adjusted average cost
                                                                            $15,291        $18,126   -$2,835      -15.6                Lower cost per case
                          per case

                          AMI 30-day episode payment                        $23,825        $25,179   -$1,354      -5.4                 Lower 30-day payment
 Extended efficiency
                          HF 30-day episdoe payment                         $16,913        $17,794   -$881        -5.0
 measuresb                                                                                                                             Lower 30-day payment

a. Medicare Provider Analysis and Review (MEDPAR) 2017 and 2018, combined
b. CMS Hospital Compare July 1, 2015 – June 30, 2018
c. We do not calculate percentage difference for measures already expressed as a percent

                                                                                                                                                                   18
Additional measures for informational                   The measures report the difference (“excess”)
purposes                                                between each hospital’s average days in acute care
                                                        (“predicted days”) and the number of days in acute
Every year, we publish new measures that may be of
                                                        care that each hospital’s patients would have been
interest to the leaders of hospitals and health
                                                        expected to spend if discharged from an average-
systems. For this study edition, we continue to
                                                        performing hospital (“expected days”).
publish 30-day excess days in acute care (EDAC)
measures for AMI and HF patients. These                 The measure is reported as excess days per 100
performance measures, along with the existing           discharges.
ranked extended care measures, 30-day mortality,
                                                        Comparing benchmark hospitals and peers on this
readmission and episode of payment, offer health
                                                        measure yields interesting results, as shown in Table
care leaders an additional insight into the
                                                        5 on the following page.
performance of hospitals across the continuum of
care. If you would like to provide feedback on these    • The benchmark median EDAC score for AMI
informational measures, please email                      patients was 9.4 days less than the peer EDAC
100tophospitals@us.ibm.com.                               score, at -3.7 versus 5.7 for nonwinning hospitals.

30-day excess days in acute care (heart attack [AMI]    • The benchmark median EDAC score for HF
and heart failure [HF])                                   patients was 9.8 days less than the peer EDAC
                                                          score, at -1.5 versus 8.3 for nonwinning hospitals.
In this study, we have profiled performance, for
information only, on the relatively new Centers for
Medicare & Medicaid Services (CMS) excess days in
acute care (EDAC) measures:

       1. 30-day EDAC for AMI patients

       2. 30-day EDAC for HF patients

As defined by CMS5, the EDAC measures capture
excess days that a hospital’s patients spent in acute
care within 30 days after discharge. These measures
summarize the number of risk-adjusted days a
hospital’s patients spend in an emergency
department (ED), a hospital observation unit, or a
hospital inpatient unit during 30 days following a
hospitalization for AMI or HF.

                                                                                                                19
Table 5: National performance comparisons for excess days in acute care (all hospitals in study)

                                                                                              Benchmark compared with peer group
                                                                        Benchma
                                                                                     Peer
                                     Performance measure                rk                                                     How benchmark
                                                                                     median   Differenc
                                                                        median                            Percent difference   hospitals differ from
                                                                                              e
                                                                                                                               peer hospitals
                                     AMI 30-day excess days in acute
                                                                        -3.4         6.0      -9.4        n/a                  Fewer days in acute care
                                     carec
                               a,b
 Extended efficiency measures
                                     HF 30-day excess days in acute
                                                                        -1.5         8.3      -9.8        n/a                  Fewer days in acute care
                                     carec

a. CMS Hospital Compare July 1, 2015 − June 30, 2018
b. We do not calculate percentage difference for measures already expressed as a percent
c. Reported as excess days per 100 discharges

Trends in cardiovascular care                                                         • A healthy proportion of hospitals significantly
                                                                                        improved their 30-day readmission rates for AMI
Again in this edition of the 50 Top Cardiovascular
                                                                                        and CABG (38.2% and 49.9 %, respectively).
Hospitals study, we are presenting new findings on
trends in cardiovascular care delivered in the nation’s                               • 34.5% of all hospitals significantly improved on
teaching and community hospitals. Our intent is to                                      the AMI 30-day mortality measure, between
provide healthcare leaders with new insights by                                         2014-2018.
showing the direction and magnitude of change in
                                                                                      • In 32.2% of all hospitals, heart failure cost per
key cardiovascular care performance indicators,
                                                                                        case statistically decreased, between 2014- 2018.
between 2014 and 2018.
                                                                                      However, there were a few notable declines in
All measures are being trended using five (5) years of
                                                                                      performance over time that should also be pointed
data, with data periods ending in 2014, 2015, 2016,
                                                                                      out. (See the right gray column in Table 6):
2017, and 2018.
                                                                                      • PCI cost per case statistically increased in 15.3%
                                                                                        of all hospitals.
Performance improvement over time: All hospitals
                                                                                      • AMI and HF 30-day episode of payment
By studying the direction of performance change of                                      statistically worsened, or increased, in 50.8% and
all hospitals eligible for our study (winners and                                       52.2%, respectively, of all in-study hospitals.
nonwinners), we can see that US hospitals have not
been able to significantly improve performance
across the entire 50 Top Cardiovascular Hospitals
balanced scorecard: In the majority of measures (17
of 23), 71% or more of all in-study hospitals saw no
statistically significant change on any of the
scorecard measures. (See Table 6.) However, over
the years we studied there were a few notable
performance improvements for specific measures,
especially those extending beyond the acute
inpatient stay. (See the green left column in Table 6.)

                                                                                                                                                          20
Table 6: Direction of performance change for all cardiovascular hospitals in study, 2014 - 2018

                                                                                      Significantly improving        No statistically significant      Significantly declining
                                                                                           performance                change in performance                performance
 Performance measure
                                                                                      Count of         Percent of     Count of        Percent of        Count of      Percent of
                                                                                     hospitals1        hospitals2    hospitals1       hospitals2       hospitals1     hospitals2
                                           AMI mortality                                  10              1.0%             899           94.2%             45               4.7%

                                           HF mortality                                   10              1.0%             901           94.4%             43               4.5%
 Risk-adjusted mortality index
                                           CABG mortality                                 19              2.0%             923           96.8%             12               1.3%
                                           PCI mortality                                  16              1.7%             905           94.9%             33               3.5%
                                           CABG complications                             30              3.1%             895           93.8%             29               3.0%
 Risk-adjusted complications index
                                           PCI complications                              15              1.6%             896           93.9%             43               4.5%
 CABG patients with internal mammary artery (IMA) use                                    143             15.0%             730           76.8%             78               8.2%
 AMI 30-day mortality                                                                    329             34.5%             607           63.6%             18               1.9%
 HF 30-day mortality                                                                     139             14.6%             745           78.1%             70               7.3%

 CABG 30-day mortality                                                                   129             13.5%             753           79.0%             71               7.5%
 AMI 30-day readmission                                                                  364             38.2%             567           59.4%             23               2.4%

 HF 30-day readmission                                                                   178             18.7%             684           71.7%             92               9.6%

 CABG 30-day readmission                                                                 476             49.9%             472           49.5%              6               0.6%

 AMI severity-adjusted average length of stay (ALOS)                                      47              4.9%             871           91.3%             36               3.8%

 HF severity-adjusted ALOS                                                               136             14.3%             780           81.8%             38               4.0%

 CABG severity-adjusted ALOS                                                              44              4.6%             857           89.8%             53               5.6%

 PCI severity-adjusted ALOS                                                              156             16.4%             794           83.2%              4               0.4%

 AMI wage- and severity-adjusted average cost per case                                   122             12.8%             818           86.0%             11               1.2%

 HF wage- and severity-adjusted average cost per case                                    306             32.2%             637           67.1%              7               0.7%
 CABG wage- and severity-adjusted average cost per case                                   85              9.0%             800           84.3%             64               6.7%
 PCI wage- and severity-adjusted average cost per case                                    10              1.1%             795           83.7%             145          15.3%

 AMI 30-day episode of payment                                                            8               0.8%             461           48.3%             485          50.8%

 HF 30-day episode of payment                                                             11              1.2%             445           46.6%             498          52.2%

1. Count refers to the number of in-study hospitals whose performance fell into the highlighted categor for the measure.
2. Percent is calculated by dividing the 'count' by the total in-study hospitals cacross all comparison groups.

Note: Total number of hospitals included in the analysis can vary by measure due to exclusion of IQR outlier data points, causing some in-study hospitals to have too few
remaining data points to calculate trend. This affects the Cost per Case measures.

                                                                                                                                                                                   21
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                                      22
Methodology
                                                         Building the database of hospitals
The Watson Health™ 50 Top Cardiovascular Hospitals
study is based on quantitative research that uses a      Like all Watson Health 100 Top Hospitals® studies,
                                                         the 50 Top Cardiovascular Hospitals study uses only
balanced scorecard approach, based on publicly
                                                         publicly available data. The data come from:
available data, to identify the top cardiovascular
hospitals in the US. This study focuses on short-term,   • Medicare Provider Analysis and Review (MEDPAR)
acute care, nonfederal US hospitals that treat a broad     data set
spectrum of cardiology patients. It includes patients
requiring medical management, as well as those who       • Centers for Medicare & Medicaid Services (CMS)
receive invasive or surgical procedures. Because           Hospital Compare data set
multiple measures are used, a hospital must provide      • Medicare Cost Reports
all forms of cardiovascular care, including open heart
surgery, to be included in the study.                    We use MEDPAR patient-level record information to
                                                         calculate inpatient mortality, complications, and
                                                         length of stay (LOS). MEDPAR is also used for patient-
Overview                                                 level charge data in estimating average cost per case.
                                                         This data set contains information on approximately
The main steps used in the selection of the 50 Top       15 million Medicare patients who are discharged
Cardiovascular Hospitals study winners are:              from the nation’s acute care hospitals annually.

 • Building the database of hospitals, including         Six years of MEDPAR data are used to develop the
   special selection and exclusion criteria              study trend database The two most recent years of
                                                         MEDPAR data available are used to identify current
 • Classifying hospitals into comparison groups
                                                         performance and to select the winning hospitals. To
 • Scoring hospitals on a set of weighted                be included in the study, a hospital must have both
   performance measures                                  years of data available, with valid present-on-
                                                         admission (POA) coding.
 • Determining the 50 hospitals with the best
   overall performance by ranking relative to like       We use Medicare Cost Reports to create our
   comparison groups                                     proprietary database, which contains hospital-
                                                         specific demographic information and hospital-
The following section is intended to be an overview of
                                                         specific, all-payer cost and charge data. The hospital
these steps. To request more detailed information on
                                                         cost-to-charge ratios are applied to MEDPAR patient-
any of the study concepts outlined here, please email
                                                         level claims data to estimate cost for the study’s cost
us at 100tophospitals@us.ibm.com or call 800-525-
                                                         measures. This is done at the cost-center and
9083.
                                                         charge-code levels for each patient record

                                                                                                                   23
The Medicare Cost Report is filed annually by every                           We reference residency and fellowship program
US hospital that participates in the Medicare                                 information from the Accreditation Council for
program. Hospitals are required to submit cost                                Graduate Medical Education (ACGME) and the
reports to receive reimbursement from Medicare. It                            American Osteopathic Association (AOA) to classify
should be noted, however, that cost report data                               teaching hospitals. Participation in a cardiovascular
includes services for all patients, not just Medicare                         fellowship program is identified and confirmed using
beneficiaries.                                                                the sources listed below.
                                                                              • Electronic Residency Application Services (ERAS),
The 100 Top Hospitals program and many others in                                a program of the Association of American Medical
the healthcare industry have used the MEDPAR and                                Colleges (AAMC)
Medicare Cost Report databases for years. We                                  • ACGME website
believe they are accurate and reliable sources for the                        • AOA Office of Graduate Medical Education (OGME)
types of analyses performed in this study. Medicare                             website
data is highly representative of the cardiovascular                           • Medical college websites
patients included in this study. In fact, Medicare                            • Hospital websites
inpatients usually represent about two-thirds of all
patients undergoing medical treatment for acute
myocardial infarction (AMI) or experiencing heart                             Time periods of data
failure (HF), and about half of all patients undergoing
percutaneous coronary intervention (PCI) or coronary                          The following table identifies the years used in this
artery bypass grafting (CABG), as found in the                                study for both the current and trend profiles.
Watson Health Projected Inpatient Database (PIDB)*.                           References made to ‘current’ year, ‘most current’
                                                                              year and ‘trend’ years throughout this overview are
We use the CMS Hospital Compare data set for 30-                              defined below:
day mortality and 30-day readmission rate
performance measures, as well as the 30-day                                    Table 7. Time Periods
episode-of-care payment measures for AMI and HF                                References in text                             Time Periods
patients. CMS publishes these rates as three-year                              Federal fiscal years (FFY)                     Oct - Sept
combined data values. Five data points are used to                             Study Year                                     2020
develop the study trend database for these extended
                                                                               Current data year (MEDPAR)                     FFY 2018
care measures. We label these data points based on
                                                                               Current data year (Medicare Cost Reports)      Year ending in 2018
the end year of each data set. For example, July 1,
                                                                               Two most current/recent years of data
2015-June 30, 2018 is named “2018.” We used the                                (MEDPAR / Medicare Cost Reports)
                                                                                                                              2017 and 2018
current year (most recent data set available) to
                                                                               Trend data years (MEDPAR)                      FFY 2013 - 2018
identify current performance and to select the
                                                                                                                              Years ending in 2014 -
winning hospitals.                                                             Trend data years (Medicare Cost Reports)
                                                                                                                              2018

                                                                               PIDB data used in risk model development       FFY 2015

* The Watson Health Projected Inpatient Database (PIDB) is one of the largest US inpatient, all-payer databases of its kind, containing more than 23
million all-payer discharges annually. This data is obtained from approximately 5,000 hospitals, representing over 65% of all discharges from short-
term, general, nonfederal hospitals in the US.

                                                                                                                                                       24
Present-on-admission data                                 The effect of present-on-
                                                          admission data on risk and
Our risk-adjustment models for inpatient mortality        severity adjustment
and complications, and severity-adjustment models
                                                          • Since 2008, CMS regulations
for LOS and cost per case included POA data reported
                                                            have required all Inpatient
in the MEDPAR data sets. Under the Deficit Reduction
                                                            Prospective Payment System
Act of 2005, as of federal fiscal year (FFY) 2008,
                                                            hospitals to document whether a
hospitals receive a reduced payment for cases with
                                                            patient has certain conditions
certain conditions (such as falls, surgical-site
                                                            when admitted; these are coded
infections, and pressure ulcers) that were not present
                                                            as POA.
on the patient’s admission but occurred during
hospitalization. As a result, CMS now requires all        • Our complication rate
Inpatient Prospective Payment System hospitals to           methodology uses this POA data.
document whether a patient has these conditions             Consequently, the complication
when admitted6.                                             rates exclude “false-positive”
                                                            complications and are more
Present-on-admission coding adjustments
                                                            accurate. In addition, our
Since 2010 we have observed a significant rise in the       mortality, complications, LOS,
number of principal diagnosis (PDX) and secondary           and cost-per-case risk- and
diagnosis (SDX) codes that do not have a valid POA          severity- adjustment models
indicator code in the MEDPAR data files. Since 2011,        develop expected values based
an invalid code of “0” has been appearing. This             only on conditions that were
phenomenon has led to an artificial rise in the             present on admission.
number of complications that appear to be occurring
during the hospital stay. See the Appendix for details.

To correct for this bias, we adjust MEDPAR record
processing through our inpatient mortality and
complications risk models, and LOS and cost- per-
case severity-adjustment models, as follows:
• We treat all principal diagnoses as present on
  admission
• We treat all diagnosis codes on the CMS exempt
  list as “exempt,” regardless of POA coding
• We treat secondary diagnoses where POA
  indicator codes “Y” or “W” appeared more than
  50% of the time in the all-payer database as
  present on admission

                                                                                              25
Hospitals and patient groups included                      Hospitals excluded

The focus of the study is on hospitals that offer both     After building the database of cardiovascular hospitals,
medical and surgical treatment options for patients        we exclude hospitals that reasonably might be
with two of the most common cardiovascular                 expected to include a different patient population or
conditions: AMI and HF. To build such a database, we       population distribution, or whose data is not
included all hospitals that had, in the two most recent    sufficient for analysis.
data years combined, at least 30 unique cases7 in
                                                           Excluded from the study were:
each of the four patient groups described below.
                                                            •   Hospitals with fewer than 30 unique patient
 •   AMI patients – restricted to nonsurgical patients
                                                                records in each patient group (AMI, HF, CABG,
 •   HF patients – restricted to nonsurgical patients           and PCI) for the two most current MEDPAR years
 •   CABG patients – includes all ICD-9-CM and ICD-             combined
     10-CM procedure codes, principal or secondary          •   Specialty hospitals, other than cardiac hospitals
     in MS-DRGs 231 - 236                                       (critical access hospitals, children’s, women’s,
 •   PCI patients – excludes patients with open chest           psychiatric, substance abuse, rehabilitation, and
     coronary artery angioplasty                                long-term acute care hospitals)

Each patient group is mutually exclusive, by design.        •   Federally owned hospitals
To define patient diagnoses, older years of MEDPAR          •   Non-continental US hospitals (such as those in
data files in the trend profile utilize ICD-9-CM and the        Puerto Rico, Guam, and the Virgin Islands)
more current data files utilize ICD-10-CM. See the          •   Hospitals with Medicare average LOS (ALOS)
Appendix for patient group definitions and the code-            longer than 30 days
level detail.                                               •   Hospitals with no reported deaths
Patient records excluded                                    •   Hospitals that did not have Medicare claims for
                                                                the two most current years of data
The AMI and HF groups explicitly exclude patients
                                                            •   Hospitals missing data for calculation of one or
who also had a PCI and/or CABG procedure. This
                                                                more performance measures
helps ensure we have exclusively medical patients in
these groups.                                               •   Hospitals for which a Medicare Cost Report was
                                                                not available for the two most current years of
Also excluded:                                                  data
 • Patients who were discharged to another short-           •   Hospitals that did not code POA indicators on
   term facility (to avoid double-counting)                     the two most current years of MEDPAR data
 • Patients who were not at least 65 years old

                                                                                                                      26
Classifying hospitals into comparison groups              Participation in a fellowship program was identified
                                                          and confirmed using the following sources:
Bed size, teaching status, and residency/fellowship
                                                            • ERAS (AAMC program)
program involvement have a significant effect on the
types of patients a hospital treats and the scope of        • ACGME website
services it provides. When analyzing the performance        • OGME website
of an individual hospital, it is crucial to evaluate it     • Medical college websites
against similar hospitals. To address this, we assign
                                                            • Hospital websites
each hospital to one of three comparison groups
according to its teaching and residency program           Teaching hospitals without cardiovascular residency
status.                                                   programs

Our formula for defining the cardiovascular hospital      Hospitals in this category have no involvement in a
comparison groups includes each hospital’s bed size,      cardiovascular residency program. There are two
residents-to-beds ratio, and involvement in graduate      ways to qualify as a teaching hospital:
medical education (GME) programs accredited by
                                                          Meet two of the following three criteria:
either the ACGME8 or the AOA9. We define the groups
as follows.                                               • 200 or more acute care beds in service
                                                          • An intern/resident-per-bed ratio of at least 0.03
Teaching hospitals with cardiovascular residency
                                                          • Involvement in at least 3 accredited GME
programs
                                                            programs overall
Hospitals in this category must meet the definition of
                                                          Or: have an intern/ resident-per-bed ratio of 0.25 or
teaching (see teaching hospitals without
                                                          greater, regardless of bed size or AHA survey data.
cardiovascular residency programs definition) and be
involved in a cardiovascular residency program            Community hospitals
accredited by the ACGME or the AOA. Cardiovascular        Hospital must meet both of the following criteria:
residency programs include any of the following:          • 25 or more acute care beds in service
      •   Cardiology                                      • Not classified as a teaching hospital per
                                                            definitions above
      •   Cardiovascular disease
                                                          Bed size and number of interns/residents (full- time
      •   Cardiovascular medicine                         equivalents) are taken from each hospital’s most
      •   Cardiothoracic surgery                          current Medicare Cost Report available.
      •   Interventional cardiology                       Cardiovascular study groups
      •   Clinical cardiac electrophysiology              The final study group counts, after exclusions, are
      •   Thoracic surgery                                listed in Table 8:

      •   Thoracic surgery – integrated
                                                          Table 8. Cardiovascular hospital comparison groups
      •   Advanced heart failure and transplant           Comparison group                                               Total
          cardiology                                      Teaching hospitals with cardiovascular residency programs      275

      •   Adult congenital heart disease                  Teaching hospitals without cardiovascular residency programs   291

                                                          Community hospitals                                            423

 Note: Cardiovascular radiology residency programs        Total in-study hospitals                                       989

are not included.

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