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E N Q U I R E R   L O C A L   N E W S   C O V E R A G E
Friday, February 11, 2000

Hospitals improve performance


Stays, cost, deaths stay below average

BY TIM BONFIELD
The Cincinnati Enquirer

        For the third straight year, Greater Cincinnati hospitals in 1998 posted shorter lengths of stay and lower charges than national averages, yet maintained lower-than-average mortality rates.

        The statistics are part of an annual snapshot of hospital trends released Thursday by the Health Improvement Collaborative of Greater Cincinnati, a coalition of heath care, business and community groups.

        Overall, the numbers didn't change much from 1997. But in the topsy-turvy world of health care, some say the report says a lot.

        “This says we're holding our own in a very turbulent health care environment. We have efficient facilities who are responsibly managing their caseloads and they are doing it without sacrificing quality,” said Lynn Olman, president of the Greater Cincinnati Health Council and executive director of the collaborative.

        In 1998, patients spent an average of 4.1 days in Cincinnati-area hospitals. That's about 11 percent less than the national average of 4.6 days.

        The local mortality rate was 2.27 percent of patients; about 12 percent lower than the national average of 2.57 percent.

        The average charge for a hospital stay was $7,900 — about 40 percent lower than the national average of $13,346.

        While the difference in charges appears striking, Mrs. Olman noted that average charges do reflect what hospitals get paid, not the actual cost of providing care. Most managed care health plans demand and get discounts from these averages, locally and nationally.

        The only reason the report quotes average charges is because that's the only number the collaborative can get that's reported in a consistent way, Mrs. Olman said.

        The slight changes in length of stay and other factors also indicate that hospitals have made about all the deep cost-cutting moves they can.

        Back in 1994, the average stay was 5.2 days. In 1984, it was 7.0 days.

        “For a while, there was a lot of fat to cut. Not anymore,” Mrs. Olman said. “Unless physicians make major changes in the way they practice, I don't think we're going to see a lot of change in these numbers in the next few years.”

        Some health care consultants, however, say hospitals still have room to cut.

        “This data does not impress me,” said Stu Scheller, a partner in the Scheller Bradford Group. “If hospitals think they are operating efficiently and effectively, then they don't have a clue.”

        Mr. Scheller said many local hospitals last year claimed they were losing money and demanded 20 percent and 30 percent increases in rates paid by managed care health plans.

        “Does any other efficient opera tion increase prices 20 to 30 percent in one year?” Mr. Scheller said.

        Mrs. Olman said more businesses should give Cincinnati hospitals more credit for the cost reductions made here. She cited several industry studies that rank Cincinnati as a low-cost city for health care — especially when compared to other cities with similar levels of managed care activity.

        A 1997 health care cost-of-living index by the American Chamber of Commerce Research Association ranked Cincinnati as the lowest of 16 large cities in terms of hospital charges, physician office visits and dental visits. With the index listing the national average as 100, Cincinnati came in at 94.9.

        Of 18 cities ranked in 1996 by SMG Marketing Group, Cincinnati posted the lowest number of hospital days per 1,000 residents. Cincinnati was listed at 553 hospital days per 1,000. The national average was 1,038 days per 1,000.

        Cincinnati also posted the lowest score of 16 cities compared by Milliman & Robertson in a measure of “avoidable” hospital days. If every hospital hit every national benchmark in 1997 for cost-efficient care, Cincinnati patients would have spent 23.5 percent less time in the hospital. That compares to a 36.8 percent national average.

       



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