Avi Dor of the George Washington University’s Milken Institute School of Public Health and coauthors looked at the effects of Hospital Compare quality reporting on prices for two common, costly cardiac procedures-coronary artery bypass graft (CABG) and percutaneous coronary intervention (PCI). While prices for both continued to rise after initiation of Hospital Compare quality scores, the rate of increase was significantly lower in states that did not mandate quality reporting metrics prior to the introduction of Hospital Compare rankings.
After accounting for general rates of inflation, annual rates of increase for PCI were 4.4 percent in states with no previous reporting metrics versus 8.7 percent in states that mandated public reporting systems. For CABG, it was 3.9 percent versus 10.6 percent, respectively. The authors note that Hospital Compare provided leverage for moderating price increases, while adding competitive pressures on hospitals.
Study: Medicare’s Hospital Compare Quality Reports Appear To Have Slowed Price Increases For Two Major Procedures, Avi Dor, William E. Encinosa and Kathleen Carey, Health Affairs, doi: 10.1377/hlthaff.2014.0263, published January 2015.
Source: Health Affairs