Measurements for Top 100
April 1, 1998 less than 1 minute read
Measurements for Top 100
This year's HCIA and Mercer ranking was based on these nine measures of clinical quality practices, operations, and financial management:
Risk-adjusted mortality index: number of actual deaths divided by number expected, given risk of death for each patient.
Risk-adjusted complications index: number of actual complications divided by number expected, given risk of complication for each patient.
Severity-adjusted average length of stay: average patient length of stay, adjusted for differences in severity of illness.
Expense per adjusted discharge, case mix- and wage-adjusted: total operating expenses divided by number of adjusted discharges, case mix- and wage-adjusted.
Profitability (cash flow margin): sum of net income, depreciation, and interest expense divided by sum of net patient revenue and total other income.
Index of outpatient activity: sum of two rankings - proportion of outpatient revenue and growth in outpatient revenue.
Index of total facility occupancy.
Long-term growth in equity: average annual compound growth in equity from 1993 to 1995.
Productivity (total asset turnover ratio): net patient revenue divided by total assets.
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