Analysis: 10 Most Cost-Efficient Hospitals in the US

Pinnacle Hospital in Indiana, Saint Mary’s Regional Medical Center in Nevada, and Mercy Medical Center Dubuque in Iowa are among the most cost-efficient hospitals in the US, according to a new analysis from the Lown Institute.

The healthcare think tank analyzed Medicare claims data from 2016 through 2018 and patient mortality rates 30 and 90 days after hospital admission to rank healthcare costs at 3,000 hospitals in the US and identify further Medicare savings if hospitals improve efficiency. Researchers adjusted both mortality rates and costs based on patient risk.

The analysis found that the most cost-efficient hospitals of the thousands analyzed, included:

1. Pinnacle Hospital in Crown Point, Indiana
2. Saint Mary’s Regional Medical Center in Reno, Nevada
3. Mercy Medical Center Dubuque in Dubuque, Iowa
4. Encino Hospital Medical Center in Encino, California
5. Park Ridge Health in Hendersonville, North Carolina
6. Oroville Hospital in Oroville, California
7. Saint Michael’s Medical Center in Newark, New Jersey
8. UnityPoint Health - Meriter in Madison, Wisconsin
9. East Liverpool City Hospital in East Liverpool, Ohio
10. Maple Grove Hospital in Maple Grove, Minnesota

The top ten most cost-efficient hospitals had the lowest patient mortality rates and the lowest healthcare costs, the Lown Institute reported. But more cost efficiencies can be realized among all the hospitals analyzed to further reduce Medicare spending, the analysis indicated.

Cost of care at hospitals significant varied, even among hospitals operating in the same city, researchers stated. For example, hospitals with average 30-day mortality rates had costs that ranged from a low of $9,000 to a high of $27,000 per patient.

Researchers determined that if all hospitals matched the efficiency performance of the country’s most cost-efficient hospitals, then facilities could save an additional $8 billion for Medicare each year.

Maximizing Medicare savings is critical to keeping the public healthcare program alive. The latest report from the Medicare Board of Trustees found that the program’s Trust Fund is slated to run out within the next five years without further intervention.

“If we want to keep costs low for the Medicare program and provide quality care for the 60 million Americans who depend on it, hospitals must be as efficient as possible,” Vikas Saini, MD, president of the Lown Institute, said in a press release emailed to RevCycleIntelligence. “The best hospitals prove that you can save Medicare dollars and deliver great patient outcomes at the same time.”