January 14, 2016
Reliability of cost profiles for surgery based on Medicare data
Editor's Note
Medicare data on payments for inpatient surgery are a reliable measure of hospital costs for commonly performed procedures, but are less reliable for lower volume procedures, this study finds.
With increased emphasis on shifting risk from payers to providers through bundled payments and accountable care organizations, hospitals are in need of metrics to understand their costs relative to peers. It has been unclear whether Medicare payments for surgery were reliable for comparing hospital costs, the authors say.
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