Hospitals
Hospitals
Hospitals
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Pricing the Bundle: Factors that Drive Payment<br />
Bundles<br />
Progression of R 2 Value with Addition of Variables in Model A, Model B, and Model C<br />
All MS-DRGs (Number of Observations = 1,292,352)<br />
Regression Model Variables Cumulative R 2 *<br />
MS-DRG 0.511<br />
Age, Sex, Race 0.514<br />
Chronic Conditions 0.528<br />
Model A<br />
HCC Count 0.534<br />
Functional Ability and Live Alone 0.647<br />
Model B<br />
= Contribution to<br />
Explained Variance<br />
Dual Eligibility 0.647<br />
IME, DSH, Index Outlier Payment 0.669<br />
Look Back CCU, ICU, and Episode Death 0.669<br />
Region 0.669<br />
Rural 0.669<br />
Bed Size 0.670<br />
Unique Physician Count 0.762<br />
Model C First PAC 0.781<br />
Source: Dobson | DaVanzo Analysis, 30-day episodes , 2007-2009 5% Medicare claims, no outlier model applied<br />
* The adjusted-R 2¸ which accounts for degrees of freedom, was nearly identical to the R 2 values presented and follows<br />
the same trend.<br />
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2012 AAMC Annual Meeting
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