Measuring Hospital Performance

In this study we used information from discharge abstracts to develop three different risk-adjusted measures of hospital performance: a Risk-Adjusted Mortality Index, a Risk-Adjusted Readmissions Index, and a Risk-Adjusted Complications Index. The adjustments have face validity, and appear to account for much of the variation across hospitals in the rates of these adverse events. The indexes are stable over time, and are not biased with respect to hospital size, ownership, or teaching status. All three indexes appear to have construct validity when tested against the changes in hospital care that occurred when PPS was introduced.