Costing

Fix the Handful of U.S. Hospitals Responsible for Out-of-Control Costs

A small number of hospitals are responsible for nearly 80% of the excess payments for common Medicare procedures.

by

ManMohan S. Sodhi

and

Navdeep S. Sodhi

by

ManMohan S. Sodhi

and

Navdeep S. Sodhi

November 13, 2013

In May 2013, the Centers for Medicare and Medicaid Services (CMS) released CMS Medicare Provider Analysis and Review (MEDPAR) inpatient data that contain discharge information for 100% of Medicare fee-for-service beneficiaries using hospital inpatient services. This data shows what more than 3,200 hospitals in the United States were being paid for the most frequently performed 100 inpatient procedures. The variations were extraordinary.

ManMohan S. Sodhi is a professor of operations and supply-chain management at Bayes Business School in London. He is the coauthor (with Navdeep S. Sodhi) of the HBR article “Six Sigma Pricing” and (with Christopher Tang) of the book, Managing Supply Chain Risk (Springer).
NS

Navdeep S. Sodhi is managing director of Sodhi Pricing in Minneapolis. He is the coauthor (with ManMohan S. Sodhi) of the HBR article “Six Sigma Pricing” and the book with the same title.

Fix the Handful of U.S. Hospitals Responsible for Out-of-Control Costs

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