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Measuring Efficiency: The Association Of Hospital Costs And Quality Of Care Export

Health Aff, Vol. 28, No. 3. (1 May 2009), pp. 897-906.

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cost efficiency quality

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Providers with lower costs may be more efficient and, therefore, provide better care than those with higher costs. However, the relationship between risk-adjusted costs (often described as efficiency) and quality is not well understood. We examined the relationship between hospitals' risk-adjusted costs and their structural characteristics, nursing levels, quality of care, and outcomes. U.S. hospitals with low risk-adjusted costs were more likely to be for-profit, treat more Medicare patients, and employ fewer nurses. They provided modestly worse care for acute myocardial infarction and congestive heart failure but had comparable rates of risk-adjusted mortality. We found no evidence that low-cost providers provide better care. 10.1377/hlthaff.28.3.897


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