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Groundbreaking Medicare Project Improves Hospital Care

by Barbara Kram, Editor | January 30, 2007

The value-based purchasing policies used in the demonstration project include financial incentives for the top 20 percent of high scoring hospitals in each of the five clinical areas. The top 10 percent of all hospitals receive a 2 percent incentive payment for patients in that clinical area. Hospitals in the second decile receive a 1 percent incentive payment. Hospitals in the top 50 percent of each clinical area receive public recognition on the CMS website.

Hackensack University Medical Center in Hackensack , NJ , was a top performer in all five areas for the second year in a row, providing high-quality care for 2,853 Medicare patients. Their total award across the five clinical areas will be approximately $744,000.

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Charleston Area Medical Center in Charleston , WV , received the second highest incentive award, $701,000, for achieving top performance in four clinical areas. Charleston Area Medical Center also received the highest single award, $432,901, in one clinical area for providing high quality care to 883 Medicare patients who had CABG procedures.

The second largest single award totals $250,775 and will be provided to the Bone and Joint Hospital in Oklahoma City , OK , for exceptionally high quality of care for patients receiving hip and knee replacement procedures.

The average composite quality scores, an aggregate of all quality measures within each clinical area, improved significantly between the inception of the program and the end of Year 2 in all five clinical focus areas:

* From 87.5 percent to 94.4 percent for patients with AMI (heart attack)
* From 84.8 percent to 93.8 percent for patients with coronary artery bypass graft.
* From 64.5 percent to 82.4 percent for patients with heart failure.
* From 69.3 percent to 85.8 percent for patients with pneumonia.
* From 84.6 percent to 93.4 percent for patients with hip and knee replacement.

In addition, the range of variance among participating hospitals is closing, as those hospitals in the lower quality range continue to improve their quality scores and close the gap between themselves and the demonstration's top performers.

For complete information about the HQID project and to view a list of those hospitals ranking in the top 50 percent in each focus area, visit www.cms.hhs.gov/HospitalQualityInits.

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