Hospital Efficiency Index

Milliman's Hospital Efficiency Index™ combines actuarial insight and detailed information for thousands of hospitals—in effect, millions of dollars of research investment—to enable clients to evaluate the relative efficiency of hospitals. We give our clients access to three years of data routinely, as well as older data for special studies, through printed editions of the report or in browser software.

Comprehensive research, powerful analysis

We build the Index on data from inpatient admissions and lengths of stays and carefully adjust for case mix, case severity, and other factors. These adjustments allow insurers and providers to measure the relative efficiency of hospitals within regions or across the country. Our reports focus on potentially avoidable admissions and days of stay, as determined through comparison with similar hospitals. The Index also provides clients with the option to balance efficiency measures against healthcare quality measures, such as those developed by the Agency for Healthcare Research and Quality. Index versions using Medicare data, which covers nearly all hospitals and states, and commercial data, which covers approximately 20 states, also are available.

Empowering evaluation for insurers and providers

Hospital Efficiency Index is a key tool in selecting and evaluating provider networks, determining charge and reimbursement levels, and negotiating provider contracts. For hospitals, it pinpoints specific specialty areas where efficiency improvements can be made and provides meaningful benchmarks for measuring the success of re-engineering and cost-cutting efforts. For all of our clients, we ensure high standards of service and expertise. The Index is easily customizable and flexible so that you can incorporate your organization's data for comparison.



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Kathy Ahn