Breaking even on Medicare As reimbursement reductions make it harder and harder
implications. We perform comparative analyses to
to break even on Medicare, a holistic approach to cost
peer hospitals to identify potential areas to explore to
reduction is essential. And with the additional cuts
reduce waste, and change practice patterns and reduce
through sequestration – another 2 percent cut – making
unjustifiable utilization.
margin on Medicare seems ever-elusive. If your margins are being squeezed, as they are Whether it’s supply chain pricing or resource utilization,
across the industry, let’s talk about how to get to
operational efficiency or labor productivity, no stone can
Medicare Breakeven.
remain unturned. Using integrated data, looking across total cost of
Overall Cost per Discharge Opportunity $149,833,262
sustain significant cost reduction, without negatively impacting quality. In fact, one Premier member, a large multi-hospital system in the Midwest, was looking to cut expenses by $750,000 to get to breakeven on their Medicare population. Our data-driven, holistic approach identified more than $22 million in opportunity, $5 million of which has already been achieved. As part of our Medicare Breakeven offering, we drill deep
Medicare Cost per Discharge CMI/WI Adj.
care, Premier is helping alliance members find and
$20,000
$18,797
$18,000 $16,000 $14,000 $12,000
$10,148
$10,000 $8,000 $6,000 $4,000 $2,000 $0
Hospital Name Medicare Cost Per Disch. CMI/WI Adj.
QUEST Medicare Only TPT
into the data to identify the departments (lab/respiratory/ surgery/cardiology) and spend categories (blood/PT/ OT/Chest X-Rays) that are causing inappropriate cost
T R A N S F O R M I N G H E A LT H C A R E TO G E T H E R ®
FOR MORE INFORMATION, please email medicare_breakeven@premierinc.com
TRANSFORMING H E A LT H C A R E TO G E T H E R ÂŽ
13034 Ballantyne Corporate Place Charlotte, NC 28277 T 704 357 0022 F 704 357 6611 444 N Capitol Street NW Suite 625 Washington, DC 20001-1511 T 202 393 0860 F 202 393 6499 PREMIERINC.COM
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FOR MORE INFORMATION, please email medicare_breakeven@premierinc.com
About the Premier healthcare alliance, Malcolm Baldrige National Quality Award recipient Premier is the nation’s largest performance improvement alliance of more than 2,800 U.S. hospitals and 93,000 other sites using the power of collaboration and technology to lead the transformation to coordinated, high-quality, cost-effective care. Owned by healthcare providers, Premier operates a leading purchasing network with nearly $5 billion in annual savings. Premier also maintains clinical, financial and outcomes databases based on 1 in every 4 patient discharges. A world leader in measurably improving patient care, Premier has the largest performance improvement collaboratives in America, including one in partnership with the Centers for Medicare & Medicaid Services. Headquartered in Charlotte, NC, Premier also has an office in Washington. 3621
@PremierHA