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Appendix B - HCUP

National Healthcare Quality Report, 2008

Appendix B: Estimating Total Cost Savings From Reducing Avoidable Hospitalizations

Step 1) Use the 2005 adjusted rates for Uncontrolled Diabetes (PQI 14) for top 10% of States and calculate the average.

Vermont3.825
Utah3.892
Colorado4.985
New Hampshire5.042
Average Adjusted Rate for Top 10% of States4.436


Step 2) Determine the expected number of U.S. cases assuming the same rate as the top 10% of States.

U.S. 2005 resident population over 18221,644,344
Top 10% average4.436
Expected U.S. cases based on top 10% rate9,832


Step 3) Determine the actual number of U.S. cases.

U.S. 2005 Resident Population over 18221,644,344
2005 U.S. adjusted rate for PQI 1420.446
Actual U.S. cases45,318


Step 4) Reduction in cases if assuming top 10% rate.

Actual U.S. cases45,318
Expected U.S. cases based on top 10% rate9,832
Reduction in cases35,486


Step 5) Average cost per case for PQI 14 (based on the 2005 NIS).

2005 average cost for PQI 14$4,168


Step 6) Determine the total cost savings (product of reduction in cases and average cost).

Reduction in cases if assuming top 10% rate35,486
2005 average cost for PQI 14$4,168
Total cost savings$147,922,724

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Current as of March 2009
Internet Citation: Appendix B - HCUP: National Healthcare Quality Report, 2008. March 2009. Agency for Healthcare Research and Quality, Rockville, MD. http://www.ahrq.gov/research/findings/nhqrdr/nhqr08/methods/hcupapb.html