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<h1>Appendix B - HCUP</h1>
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<h2>National Healthcare Quality Report, 2008</h2> <div id="basic-modal"><!-- start: Basic Modal -->
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<h3>Appendix B: Estimating Total Cost Savings From Reducing Avoidable Hospitalizations</h3><h4>Step 1) Use the 2005 adjusted rates for Uncontrolled Diabetes (PQI 14) for top 10% of States and calculate the average.</h4><table border="1" cellpadding="2" cellspacing="0" width="40%"><tbody><tr><td align="left" scope="row" valign="top" width="20%">Vermont</td><td align="right" width="20%">3.825</td></tr><tr><td align="left" scope="row" valign="top">Utah</td><td align="right">3.892</td></tr><tr><td align="left" scope="row" valign="top">Colorado</td><td align="right">4.985</td></tr><tr><td align="left" scope="row" valign="top">New Hampshire</td><td align="right">5.042</td></tr><tr><td align="left" scope="row" valign="top">Average Adjusted Rate for Top 10% of States</td><td align="right">4.436</td></tr></tbody></table><br /><br /> <h4>Step 2) Determine the expected number of U.S. cases assuming the same rate as the top 10% of States.</h4><table border="1" cellpadding="2" cellspacing="0" width="40%"><tbody><tr><td align="left" scope="row" valign="top" width="20%">U.S. 2005 resident population over 18</td><td align="right" width="20%">221,644,344</td></tr><tr><td align="left" scope="row" valign="top">Top 10% average</td><td align="right">4.436</td></tr><tr><td align="left" scope="row" valign="top">Expected U.S. cases based on top 10% rate</td><td align="right">9,832</td></tr></tbody></table><br /><br /> <h4>Step 3) Determine the actual number of U.S. cases.</h4><table border="1" cellpadding="2" cellspacing="0" width="40%"><tbody><tr><td align="left" scope="row" valign="top" width="20%">U.S. 2005 Resident Population over 18</td><td align="right" width="20%">221,644,344</td></tr><tr><td align="left" scope="row" valign="top">2005 U.S. adjusted rate for PQI 14</td><td align="right">20.446</td></tr><tr><td align="left" scope="row" valign="top">Actual U.S. cases</td><td align="right">45,318</td></tr></tbody></table><br /><br /> <h4>Step 4) Reduction in cases if assuming top 10% rate.</h4><table border="1" cellpadding="2" cellspacing="0" width="40%"><tbody><tr><td align="left" scope="row" valign="top" width="20%">Actual U.S. cases</td><td align="right" width="20%">45,318</td></tr><tr><td align="left" scope="row" valign="top">Expected U.S. cases based on top 10% rate</td><td align="right">9,832</td></tr><tr><td align="left" scope="row" valign="top">Reduction in cases</td><td align="right">35,486</td></tr></tbody></table><br /><br /> <h4>Step 5) Average cost per case for PQI 14 (based on the 2005 NIS).</h4><table border="1" cellpadding="2" cellspacing="0" width="40%"><tbody><tr><td align="left" scope="row" valign="top" width="20%">2005 average cost for PQI 14</td><td align="right" width="20%">$4,168</td></tr></tbody></table><br /><br /> <h4>Step 6) Determine the total cost savings (product of reduction in cases and average cost).</h4><table border="1" cellpadding="2" cellspacing="0" width="40%"><tbody><tr><td align="left" scope="row" valign="top" width="20%">Reduction in cases if assuming top 10% rate</td><td align="right" width="20%">35,486</td></tr><tr><td align="left" scope="row" valign="top">2005 average cost for PQI 14</td><td align="right">$4,168</td></tr><tr><td align="left" scope="row" valign="top">Total cost savings</td><td align="right">$147,922,724</td></tr></tbody></table><br /> <p class="size2"><a href="/research/findings/nhqrdr/nhqr08/methods/hcupqr.html#apb">Return to Document</a></p><p> </p> </div><!-- end: Basic Modal -->
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<div class="current-as-of">Current as of March 2009</div>
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<span>Internet Citation: Appendix B - HCUP: National Healthcare Quality Report, 2008.
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March 2009. Agency for Healthcare Research and Quality, Rockville, MD. http://archive.ahrq.gov/research/findings/nhqrdr/nhqr08/methods/hcupapb.html</span>
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