Appendix B - HCUP National Healthcare Quality Report, 2008 Appendix B: Estimating Total Cost Savings From Reducing Avoidable HospitalizationsStep 1) Use the 2005 adjusted rates for Uncontrolled Diabetes (PQI 14) for top 10% of States and calculate the average.Vermont3.825Utah3.892Colorado4.985New Hampshire5.042Average 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 18221,644,344Top 10% average4.436Expected 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 18221,644,3442005 U.S. adjusted rate for PQI 1420.446Actual U.S. cases45,318 Step 4) Reduction in cases if assuming top 10% rate.Actual U.S. cases45,318Expected U.S. cases based on top 10% rate9,832Reduction 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% rate35,4862005 average cost for PQI 14$4,168Total cost savings$147,922,724 Return to Document 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
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