Texas Hospital Reduces Readmissions with Analytics

Great example of outside the box thinking for using business intelligence/analytics to improve healthcare. In this case, reducing readmissions. Why are readmissions a big deal you ask?

MedPAC estimates that Medicare pays about $12 billion annually in costs related to unnecessary hospital readmissions.  On average, one in five Medicare patients arereadmitted to the hospital within 30 days of being discharged.  In 2007 the Medicare Payment Advisory Commission estimated about 75% of those readmissions could have been avoided.

The health-care overhaul will address this by penalizing hospitals with higher-than-expected readmission rates for Medicare patients who have been treated for variety of disease treatments. Those hospitals will see their Medicare payments reduced by 1 percent beginning in October 2012, 2 percent the following year and 3 percent the next. The law expands the list of conditions that can result in penalties in later years.

So, bottom line it becomes very important from the hospital and the patient perspective to reduce readmissions.


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Posted in Analytics, Healthcare

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