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University of Chicago Booth School of Business Develops New Way of Calculating Hospital Overall Scores and Rankings

A Health Affairs Blog post highlights a paper in the journal Operations Research with the aim to demonstrate the flaws of the current Centers for Medicare and Medicaid Services (CMS) Hospital Star Ratings and offers a proposed solution. It discusses a new Website from the University of Chicago Booth School of Business that demonstrates the new way of calculating hospital overall scores and rankings developed in this paper. Using publicly available CMS data from February 2019 Hospital Compare, it computes scores and rankings for nearly 4,000 hospitals in the United States. Users can adjust the peer grouping used, selecting any combination of hospital criteria such as: teaching versus non-teaching, size, and socioeconomic status of patients, and can perform side-by-side comparisons by hospital of this approach versus the existing CMS Hospital Star Ratings.

Based on this esearch paper by Chicago Booth’s Dan Adelman, the Efficient Frontier Hospital Rating System was created. The Efficient Frontier Hospital Rating System is a searchable database of hospital quality ratings that compares against the US government’s Hospital Compare system. This Hospital Rating System is designed to reflect each hospital’s performance according to how well it meets the needs of patients relative to other hospitals.

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