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The 2003 Index of Hospital Quality

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D. Outcome<br />

Many healthcare pr<strong>of</strong>essionals have decried the use <strong>of</strong> mortality rates as an outcomes<br />

measure because <strong>of</strong> limitations in the methods used to adjust for risk. Nonetheless,<br />

research strongly suggests a positive correlation between a better-than-average riskadjusted<br />

mortality rate and overall quality <strong>of</strong> care. 7-16 Based on these findings, we used<br />

adjusted mortality rate as the outcome measure for our quality <strong>of</strong> care model. Predicted<br />

mortality rates were provided by MEDSTAT Group, Inc., <strong>of</strong> Franklin, Tenn., using the All<br />

Patient Refined Diagnosis Related Group (APR-DRG) method designed by 3M Health<br />

Information Systems. <strong>The</strong> APR-DRG adjusts expected deaths for severity <strong>of</strong> illness by<br />

means <strong>of</strong> principle diagnosis and categories <strong>of</strong> secondary diagnoses. A detailed<br />

description <strong>of</strong> the full APR-DRG methodology is provided in Appendix D. <strong>The</strong> method<br />

was applied to the pooled 1999, 2000, and 2001 MEDPARS data set <strong>of</strong> reimbursement<br />

claims made to CMS by hospitals. <strong>The</strong>se complete data sets were the most current<br />

available for analysis.<br />

<strong>2003</strong> DRG refinements<br />

We annually review the DRG groupings for every specialty. <strong>The</strong> groupings are<br />

important because they define the cases included in the mortality measures as<br />

well as the volume measure in the structural component. In <strong>2003</strong>, we conducted<br />

a thorough examination <strong>of</strong> the DRG groupings in Digestive Disorders,<br />

Orthopedics, and Gynecology. Several physicians independently conducted<br />

reviews <strong>of</strong> the DRG groupings (two for Digestive Disorders, two for Orthopedics,<br />

and one representative for Gynecology). Based on the review and<br />

recommendations, the changes in Figure 8 were made for <strong>2003</strong>.<br />

23

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