5 reasons to take hospital ratings with a big grain of salt

5 reasons to take hospital ratings with a big grain of salt

It’s hospital ratings season in America, that time of year when marketing executives kick it into high gear to trumpet — and spin — the way their hospitals are graded by outside organizations.

This year, their workload has been especially heavy. In addition to annual rankings released Tuesday by U.S. News & World Report, the federal Centers for Medicare and Medicaid Services (CMS) just released its star-rating system for hospitals nationwide. While the ratings offer some valuable information to consumers, here’s why you shouldn’t put too much stock in the results.

No matter how objective the metrics, ratings are inherently subjective

The federal government and private organizations use a vast array of hospital data to break down their performance and boil it into easy-to-understand ratings for consumers. U.S. News & World report formulates its rankings by relying on a mix of physician surveys and data reported to trade groups and the federal government. CMS ratings are based solely on data hospitals are required to report to the agency.

The information itself may be objective, but which data points are used — and how they are weighted — can lead to contradictory conclusions. Consider the following:

Of US News & World Report’s’ top five hospitals,  only one  — Mayo Clinic — received a top, five-star rating from CMS. The rest — Cleveland Clinic, Massachusetts General Hospital, UCLA Medical Center, and Johns Hopkins — were not even in CMS’ top 100. (Johns Hopkins did not receive a rating from CMS because of incomplete data).

J.B. Silvers, a professor of health care finance at Case Western Reserve University, said the information, while boiled down into simple lists and stars, can be difficult for consumers to unpack, especially when hospitals are working behind the scenes to figure out ways to better their scores every year. “Some hospitals are better at working the numbers than others,” he said. “My guess is the safety net hospitals aren’t as good at it as richer hospitals.”

 

Boeing Contracts Directly With California Health System For Employee Benefits

http://khn.org/news/boeing-contracts-directly-with-california-health-system-for-employee-benefits/?utm_campaign=KHN%3A+Topic-based&utm_source=hs_email&utm_medium=email&utm_content=31951328&_hsenc=p2ANqtz–1HG-Jyei7aqz_SWbkRKhJG3Jw-W5nU83bCCryWsDE_3IBpyXne8Y1g4rT4k4e1DlPo9TS25nZBfQF85pxcSd5aXiVuQ&_hsmi=31951328

Los Angeles, United States - March 9, 2015: Boeing manufactuing facility. Boeing manufactures and sells aircraft, rotorcraft, rockets and satellites. It is the second-largest defense contractor in the world.

In another sign of growing frustration with rising health costs, aerospace giant Boeing Co. has agreed to contract directly for employee benefits with a major health system in Southern California, bypassing the conventional insurance model.

The move, announced Tuesday, marks the expansion of Boeing’s direct-contracting approach, which it has already implemented in recent years in Seattle, St. Louis and Charleston, S.C.

Other large employers are also pursuing this idea in regions where they have big concentrations of workers. In some cases, they refer employees to nationally top-performing hospitals for select surgeries.

MemorialCare Health System said Chicago-based Boeing selected it from a group of bidders for the five-year contract in Southern California, where the company has roughly 37,000 employees and dependents. Financial terms weren’t disclosed.

“More employers are interested in moving in this direction,” said Barry Arbuckle, chief executive of the MemorialCare Health System, based in Fountain Valley, California. “It reflects the desire of these employers to participate in bending the cost curve for health care, and it allows the provider to have a more unfettered relationship with the employer and employees.”

If You Want To Spend A Bundle On Your Bundle Of Joy, Go To Northern California

http://khn.org/news/if-you-want-to-spend-a-bundle-on-your-bundle-of-joy-go-to-northern-california/?utm_campaign=KHN%3A+Topic-based&utm_source=hs_email&utm_medium=email&utm_content=31951328&_hsenc=p2ANqtz-_1BzSYwT-xGOcALjAQd2-dZvlcoF62s1zwVRj0oKlA7omZsyLQTHRzY0tbS0zTr7Z71wR4bJ5O-Ict1u1tjlS-DkIWPA&_hsmi=31951328

Everyone knows that real estate is no bargain in Northern California. It turns out that giving birth ain’t cheap either.

New research on the cost of childbirth in the nation’s 30 largest metropolitan areas ranks Sacramento and San Francisco as the two most expensive for both vaginal delivery and Cesarean sections.

Sacramento is No. 1, San Francisco No. 2.

The study, based on private health insurance claims from this year and other data, shows the totals actually paid for childbirth by employees and employers. It was conducted byCastlight Health, a San Francisco-based health care information company that analyzes medical costs to help consumers and purchasers compare prices.

A vaginal delivery costs an average of $15,420 in the Sacramento area and $15,204 in San Francisco — nearly $4,000 more than the third-most expensive location, Minneapolis. In the least expensive metropolitan area, Kansas City, a vaginal delivery costs $6,075.

C-sections are even more expensive, costing an average of $27,067 in Sacramento — nearly four times as much as in Pittsburgh, the cheapest city. San Francisco had the second highest cost for C-sections, at $21,799. San Diego came in fifth at $16,810.

The data show that prices vary widely even within the most expensive regions. In San Francisco, for example, the cost for a Cesarean delivery ranged from $8,399 to $41,191 — a five-fold price difference. Patients, however, rarely know how much a procedure will cost until they receive the bill.

Are insurers ditching PPOs?

http://www.healthcaredive.com/news/are-insurers-ditching-ppos/423291/

Insurers that have been offering PPO plans in the healthcare marketplace appear to be cutting back on the number of offerings or eliminating PPOs from the marketplace altogether, leaving consumers with fewer options. Is this becoming an industry-wide trend?

“In the large group market, traditional PPO offerings have been on the decline for the last several years as Consumer Driven Health Plans have gained popularity,” says John Greenbaum, senior vice president and employee benefits practice leader at national insurance brokerage Risk Strategies Company. “In the group market, the move has largely been driven by market concern over the now-delayed Cadillac tax.”

According to Greenbaum, insurers offering products on the public exchanges have curtailed their PPO offerings in favor of high-deductible plans. “Their motivation has been the difficulty of achieving profitability in a regulated market with no ability to underwrite the quality of risk,” he says.

Teri Mullaney, President and CEO of DST Health Solutions, says there are benefits to both payers and consumers to moving away from PPOs:

Top 7 leadership deficiencies in healthcare

http://managedhealthcareexecutive.modernmedicine.com/managed-healthcare-executive/news/top-7-leadership-deficiencies-healthcare?cfcache=true

 

UCSF, John Muir dramatically expand, rename Bay Area health network

http://www.bizjournals.com/sanfrancisco/news/2016/07/27/exclusive-ucsf-john-muir-bay-area-healthcare.html?ana=twt

UCSF Health and John Muir Health have dramatically expanded — and renamed — their year-old Bay Area accountable care network, adding seven new hospitals and three new medical groups to the enterprise.

The hope is that the network will be competitive with giants like Kaiser Permanente and Sutter Health. The network’s new brand name — Canopy Health — is intended to reach out to the broad Bay Area community, network CEO Joel Criste told the Business Times Wednesday.

“We’re off and running,” UCSF Health CEO Mark Laret added, in a Wednesday afternoon interview. Laret called Canopy Health’s recent growth spurt “the beginning of something that could be very big,” potentially a model for hospitals and medical groups nationally to use as a template, and a strong, multi-hospital and medical group alternative to Kaiser Permanente, in particular.

Hill Physicians Medical Group, one of Northern California’s largest independent practice associations, the East Bay’s Muir Medical Group IPA and the North Bay’s Meritage Medical Network have quietly joined in recent months, as shareholders and participating providers in the venture, officials told the Business Times.

The two founding organizations still hold the largest stakes and are clearly running the show, however.

The new additions give the network more than 4,000 affiliated doctors in the Bay Area, which in turn gives more clout when competing with regional rivals like Kaiser and Sutter.

“It’s an important step that allows them to position themselves as a system to compete with Kaiser, Sutter and Stanford Health Care,” among others, said Walter Kopp, a longtime Bay Area hospital and medical group consultant.

Hospitals show some benefit from ACA

http://www.post-gazette.com/news/health/2016/07/24/Hospitals-show-some-benefit-from-ACA/stories/201605090123

The Affordable Care Act has cut hospital charity care and bad debt expenses, but opponents say it is not enough to contain healthcare costs.

Healthcare Turnover – The Cost, the Causes, and a Sustainable Solution

http://go.beckershospitalreview.com/healthcare-turnover-the-cost-the-causes-and-a-sustainable-solution

While most organizations measure turnover and try to improve it, many don’t really understand its cost or causes, and fewer still take a holistic, effective approach to attracting and retaining the best talent, at every level of the organization.

This interactive panel discussion will explore turnover from multiple perspectives. HR leaders from two of the nation’s largest not-for-profit health systems and an expert in hiring, selection, and turnover will discuss the cost of turnover and the ROI of improving retention, the issues and variables that drive turnover, and their impact on broader organizational goals. After exploring what really goes into understanding turnover, the panel will share what they’ve learned about what works, what doesn’t, and an approach to the problem that can be tailored to your situation – and that can be sustained.

7 hospital bankruptcies so far in 2016

http://www.beckershospitalreview.com/finance/7-hospital-bankruptcies-so-far-in-2016-july27.html

Chapter 11 Bankruptcy in West Virginia

 

15 things for healthcare leaders to know about Obama’s 2017 budget

http://www.beckershospitalreview.com/finance/15-things-for-healthcare-leaders-to-know-about-obama-s-2017-budget.html