With the July, 2008 release of the Hospital Comparison Tool, the tool has been enhanced to calculate and report costs at the condition level rather than the overall cost applied for all conditions.  This enhancement will allow additional transparency of hospital costs.

The following methodology was applied to assign the cost comparisons and ratings.

• Facility ratings were assigned using admissions incurred between 11/1/2006 and 10/31/2007, paid through 1/31/2008
  
• Facility ratings use cut points adjusted to obtain a distribution of 10%($), 26.67%($$), 26.67%($$$), 26.67%($$$$), and 10%($$$$$)
  
• Cut points are determined using case mix adjusted allowed dollars per admission
  
• Facility distributions are set using only In-Network Acute care facilities that meet the overall threshold of 50 or more admissions
• Hospital Comparison Tool conditions are uniquely mapped to an MDC for cost comparison purposes
  
• MDC distributions are set using only In-Network Acute care facilities that meet the overall threshold of 50 or more admissions and threshold of 10 or more admissions for that MDC
• To view the crosswalk from condition to MDC for the cost component, click here

posted 06/2008