By: Parvathy Rajagopal  Oct. 16, 2020

Dexur analyzed Medicare Claims data and replicated CMS algorithms to calculate Medicare Spending per Beneficiary (MSPB) cost per episode of Vanderbilt University Medical Center and found that the cost per episode was $17,139 for Cardiac Arrhythmia & Conduction Disorders from Jan-Dec 2019. The cost increased by 13.7% in 2019 to reach $17,139 compared to $15,068 in 2018. MSPB is the only measure under the Efficiency and Cost Reduction domain under the Value-Based Purchasing (VBP) Program and accounts for 25% of VBP adjustments.

The analysis was done at the DRG level to implement risk adjustment, specifically for DRG 308: Cardiac Arrhythmia & Conduction Disorders with Major Complication or Comorbidity. The data is further fragmented at the DRG group level and for specific DRGs within the group as well, to generate a layered analysis of all claims involved, such as Index hospitalization, rehospitalization, SNFs, HHAs, and Hospice. Reducing the overall MSPB episode cost by targeting specific DRGs with higher averages will improve inpatient care and stabilize financial footing.

Post-discharge costs are the predominant cost contributors per MSPB episode. For the Jan-Dec 2018 period, the post-discharge cost share was $7,251, amounting to 48% of the total share. SNF was the highest post-discharge cost contributor at $4,355. For the current time period, Jan-Dec 2019, the post-discharge cost rose to 52% of the total cost, adding $8,971 to the cost per episode. Rehospitalization saw an increase of 4.04% over a 12 month rolling time period to reach at $3,658.