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The Impact of Reducing Avoidable Admissions

THE IMPACT OF REDUCING AVOIDABLE ADMISSIONS ON U.S. HOSPITALS POTENTIALLY AVOIDABLE ADMISSIONS ARE THESE ADMISSIONS EQUATE TO $9.5 MILLION IN ANNUAL 10-14% OF ALL ADMISSIONS FOR MOST HOSPITALS "AT RISK" PROFIT FOR AN AVERAGE 300-BED HOSPITAL PERCENT OF US HOSPITALS, 220 HOSPITALS, 2011 PERCENT OF CONTRIBUTION PER HOSPITAL BY AVOIDABLE CONDITION, 110 HOSPITALS, 2011 12.6% U.S. AVERAGE 70- POTENTIALLY AVOIDABLE ADMISSIONS BACTERIAL PNEUMONIA CONGESTIVE HEART FAILURE 60- 30% 24% 50- $9.5 >> 40- MILLION CONTRIBUTION? 30- 20- 13% 9% 10- 10% COPD OR ASTHMA IN OLDER ADULTS O to 4 DIABETES WITH SHORT-TERM 5 to 9 10 to 14 15 to 19 20+ POTENTIALLY AVOIDABLE ADMISSIONS COMPLICATIONS URINARY AS % OF TOTAL INPATIENT ADMISSIONS TRACT INFECTION FOOTNOTES: SOURCES: • Objective Health de-identified client data • Premier discharge database • Agency for Healthcare Research and Quality (AHRQ) Prevention Quality Indicators (PQI) criteria • bjective Health analysis OBJECTIVEHEALTH" 1. Avoidable admissions calculated based on ICD-9 diagnosis and procedure codes of 11 conditions as defined by the Agency for Healthcare Research and Quality's (AHRQ) Prevention Quality Indicators 2. Net revenue calculated based on analysis of CMI-adjusted Medicare rates. Ratios of 1.4, 0,5, and 0.1 were applied to Commercial, Medicaid, and Self-pay payors respectively to estimate net revenue for all payors. Ratios calculated based on 15 de-identified client hospitals with average payor mix: Medicare = 43%; Commercial = 30%; Medicaid = 18%; Self-pay = 5%; Other = 4%. Contribution is net revenue minus variable costs; variable cost is equal to 50% of total costs. Costs are calculated based on analysis of 110 hospitals with cost accounting. A MCKINSE Y. SOLUTION FOR HEALTHCARE PROVIDERS Copyright 2012, Objective Health, a Mckinsey Solution for Healthcare Providers. OF HOSPITALS

The Impact of Reducing Avoidable Admissions

shared by thunderfactory on Jul 24
As hospitals and health systems accelerate towards population health models, there is an increasing focus for physicians and health systems to work together to prevent avoidable hospitalizations. This...


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