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High Quality Hospitals Deliver Lower-Cost Care, Analysis Finds

High-quality hospitals deliver lower-cost care for 82% of diagnoses, according to a new analysis that Advisory Board released variations in care that do not improve care costs or patient outcomes. The data from Advisory Board’s analysis of 468 hospitals indicate a typical facility could save up to $29 million annually by delivering care in line with cost benchmarks for high-quality hospitals.

The Advisory Board’s data set for this analysis includes cost and quality data spanning April 2014 to March 2017 for a national cohort of 468 individual hospitals. The sample set includes more than 20 million deidentified patients (from discharge data) across 13 service lines and 983 diagnosis subgroups. High performers were determined solely by care quality indicators, specifically patient mortality rate, complication rate, readmission rate, and length of stay.

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