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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.
| Vermont | 3.825 |
| Utah | 3.892 |
| Colorado | 4.985 |
| New Hampshire | 5.042 |
| Average Adjusted Rate for Top 10% of States | 4.436 |
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 18 | 221,644,344 |
| Top 10% average | 4.436 |
| Expected U.S. cases based on top 10% rate | 9,832 |
Step 3) Determine the actual number of U.S. cases.
| U.S. 2005 Resident Population over 18 | 221,644,344 |
| 2005 U.S. adjusted rate for PQI 14 | 20.446 |
| Actual U.S. cases | 45,318 |
Step 4) Reduction in cases if assuming top 10% rate.
| Actual U.S. cases | 45,318 |
| Expected U.S. cases based on top 10% rate | 9,832 |
| Reduction in cases | 35,486 |
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% rate | 35,486 |
| 2005 average cost for PQI 14 | $4,168 |
| Total 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://archive.ahrq.gov/research/findings/nhqrdr/nhqr08/methods/hcupapb.html
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