U.S. Hospitals Ranked by Lowest Medicare Cost and Lowest Mortality Rates

The Lown Institute released the first-ever ranking of costs at 3,000 U.S. hospitals, identifying $8 billion in potential Medicare savings. The findings ranked the 10 most cost-efficient hospitals based on the lowest mortality rates and lowest associated costs. Their interactive Hospitals Index allows consumers to create their own rankings based on location, hospital type, and 53 other metrics.

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Top 10 Most Efficient According to Lown

Based on Medicare data from 2016-2018, the 2021 ranking focused on what each hospital billed and how many patients died. The analysis adjusted for both mortality and cost based on the level of patient risk. Their research methodology rewarded hospitals with low mortality rates and low costs, giving the lowest scores to hospitals with high mortality rates and high costs.

The 10 most cost-efficient hospitals identified had the lowest mortality rates and the lowest associated costs, including:

  1. Pinnacle Hospital (Crown Point, Indiana)
  2. Saint Mary’s Regional Medical Center (Reno, Nevada)
  3. Mercy Medical Center Dubuque (Dubuque, Iowa)
  4. Encino Hospital Medical Center (Encino, California)
  5. Park Ridge Health (Hendersonville, North Carolina)
  6. Oroville Hospital (Oroville, California)
  7. Saint Michael’s Medical Center (Newark, New Jersey)
  8. UnityPoint Health – Meriter (Madison, Wisconsin)
  9. East Liverpool City Hospital (East Liverpool, Ohio)
  10. Maple Grove Hospital (Maple Grove, Minnesota)
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What Can be Learned from the Top 10 Hospitals?

Analyzing data from 3,000+ hospitals, the Lown study looked at how much Medicare was billed compared to how many patients died within 30 and 90 days from admission. Among hospitals with average 30-day mortality rates, costs ranged from $9,000 to $27,000 per patient.

Lown found that costs across hospitals vary widely per patient irrespective of their mortality rates, meaning that they found almost no correlation between mortality rates and costs.

“The study shows that if all hospitals matched the performance of the country’s most cost-efficient hospitals, there would be $8 billion in Medicare savings each year.”

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These 10 Cities have Hospitals that Could Save $206M+

In addition to the overall ranking, the study compared Medicare costs for large major teaching hospitals in the same city with similar mortality rates and indicated how much they estimated Medicare cost savings “if the less efficient hospital had the same per-patient costs as its more efficient peer.”

Across the 10 cities included in this part of the analysis, the identified major teaching hospitals could save a total of more than $206M. View individual totals for hospitals in Boston, Chicago, Fort Lauderdale, Houston, Indianapolis, Los Angeles, San Francisco, St. Louis, and Washington, DC.

How Does Your Hospital Rank for Cost Efficiency?

Are you concerned that your costs are out of alignment with your peers in the same city? Is there waste and inefficiencies hiding in your operations – front-office, patient care, and back-office? SDLC Partners, as part of the larger CitiusTech organization, delivers top-ranked support to healthcare operations, quality, efficiency, and revenue functions with the expertise and technologies to deliver measurable improvements.

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