By: Yosh Thomas  Oct. 27, 2020
Dexur analyzed Medicare Claims data to calculate the Medicare Spending per Beneficiary (MSPB) cost for hospitals in the New York tri-state area for Spine surgery and found a wide disparity among hospitals in each sub-area such as Manhattan, Long Island, New Jersey, and Connecticut. MSPB is 25% of the weighting for the CMS Value-Based Purchasing (VBP) programs. Hospitals have to wait about 12-18 months to get aggregate MSPB numbers with no insight into DRG or service line specific costs. Dexur updates DRG and service line MSPB costs by replicating the CMS algorithm on a quarterly basis and only a 5-6 month delay. For the analysis, Dexur considered hospitals in the New York tri-state area that had recorded more than 11 episodes of DRG 460 during the calendar year 2019. Dexur did the analysis based on Q1 2020 data but the Index Hospitalization discharge date was till December 2019 to accommodate the 30-day post-discharge period in calculating rehospitalization, SNF, and HHA costs. The analysis was risk-adjusted and was done for DRG 460: Spinal Fusion Except Cervical Without Major Complication or Comorbidity (MCC).
Manhattan, NY - Spine Surgeries Hospital MSPB Cost Ranking | ||||||||||
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Rank | Hospital | City | County | Episodes | Avg. MSPB Cost Per Episode | Avg. Index Hospitalization Cost Per Episode | Avg. Post Discharge Cost Per Episode | Avg. Rehospitalization Cost per Episode | Avg. SNF Cost per Episode | Avg. HHA Cost per Episode |
1 | Hospital for Special Surgery | New York | New York | 159 | $39,696 | $35,703 | $3,992 | $1,248 | $1,537 | $1,204 |
2 | New York-Presbyterian Hospital/ Weill Cornell Medical Center | New York | New York | 65 | $48,532 | $41,334 | $7,198 | $4,636 | $1,760 | $797 |
3 | Lenox Hill Hospital | New York | New York | 57 | $48,582 | $39,686 | $8,896 | $2,430 | $5,666 | $799 |
4 | NewYork-Presbyterian/Columbia University Medical Center | New York | New York | 32 | $51,086 | $42,562 | $8,524 | $5,423 | $1,778 | $1,322 |
5 | Mount Sinai Hospital | New York | New York | 75 | $58,318 | $43,432 | $14,874 | $6,293 | $6,910 | $1,670 |
6 | NYU Langone’s Tisch Hospital | New York | New York | 72 | $58,882 | $49,178 | $9,703 | $4,198 | $3,576 | $1,928 |
7 | Mount Sinai West | New York | New York | 16 | $60,588 | $43,059 | $17,529 | $11,229 | $4,463 | $1,815 |
The analysis revealed that Hospital for Special Surgery had the lowest average MSPB cost per episode in Manhattan, NY, with $39,696. It was followed by NewYork Presbyterian/Weill Cornell Medical Center with an average MSPB cost per episode of $48,532 and an average post-discharge cost per episode of $7,198. On the other hand, Mount Sinai West had the highest average MSPB cost per episode in Manhattan with $60,588. The hospital’s average post-discharge cost per episode was $17,529. The rehospitalization cost was the major contributor to post-discharge costs with the average cost per episode being $11,229. Similarly, NYU Langone's Tisch Hospital and Mount Sinai Hospital also had high average MSPB costs per episode with $58,882 and $58,318, respectively.
Long Island, NY - Spine Surgeries Hospital MSPB Cost Ranking | ||||||||||
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Rank | Hospital | City | County | Episodes | Avg. MSPB Cost Per Episode | Avg. Index Hospitalization Cost Per Episode | Avg. Post Discharge Cost Per Episode | Avg. Rehospitalization Cost per Episode | Avg. SNF Cost per Episode | Avg. HHA Cost per Episode |
1 | Huntington Hospital | Huntington | Suffolk | 24 | $40,206 | $31,122 | $9,084 | $4,640 | $4,116 | $304 |
2 | St. Francis Hospital Roslyn | Roslyn | Nassau | 34 | $40,569 | $29,927 | $10,642 | $1,773 | $7,319 | $1,549 |
3 | Good Samaritan Hospital Medical Center | West Islip | Suffolk | 19 | $43,514 | $31,498 | $12,015 | $7,386 | $2,484 | $2,144 |
4 | John T. Mather Memorial Hospital of Port Jefferson | Port Jefferson | Suffolk | 39 | $44,040 | $36,153 | $7,881 | $2,125 | $4,490 | $1,266 |
5 | Peconic Bay Medical Center | Riverhead | Suffolk | 21 | $44,203 | $34,350 | $9,853 | $1,687 | $6,154 | $2,012 |
6 | St. Catherine of Siena Hospital | Smithtown | Suffolk | 17 | $44,392 | $29,838 | $14,553 | $4,869 | $8,252 | $1,431 |
7 | Long Island Jewish Valley Stream | Valley Stream | Nassau | 18 | $45,576 | $38,023 | $7,553 | $4,069 | $2,268 | $1,215 |
8 | Long Island Jewish Medical Center | New Hyde Park | Nassau | 27 | $47,413 | $39,478 | $7,934 | $1,299 | $5,394 | $1,241 |
9 | North Shore University Hospital | Manhasset | Nassau | 63 | $51,837 | $39,216 | $12,605 | $2,999 | $8,277 | $1,285 |
10 | Long Island Community Hospital | Patchogue | Suffolk | 11 | $52,905 | $32,222 | $20,683 | $4,176 | $16,011 | $495 |
11 | NYU Winthrop Hospital | Mineola | Nassau | 39 | $55,452 | $48,414 | $7,037 | $3,238 | $1,894 | $1,905 |
12 | University Hospital at Stony Brook | Stony Brook | Suffolk | 45 | $56,939 | $43,151 | $13,788 | $7,776 | $4,638 | $1,373 |
Dexur considered Nassau and Suffolk counties in Long Island and the corresponding hospitals that met the prerequisite for the study. The analysis revealed that Huntington Hospital, located in Suffolk County, had the lowest average MSPB cost per episode for DRG 460 with $40,206. It was followed by St. Francis Hospital, Roslyn and Good Samaritan Hospital Medical Center with average MSPB costs of $40,569 and $43,514, respectively. On the other hand, University Hospital at Stony Brook had the highest average MSPB cost per episode with $56,939. The hospital’s average post-discharge cost per episode was $13,788. Rehospitalization cost was the major contributing factor with the average per episode being $7,776, followed by SNF costs and HHA costs with an average of $4,638 and $1,373, respectively, per episode.
New Jersey - Spine Surgeries Hospital MSPB Cost Ranking | ||||||||||
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Rank | Hospital | City | County | Episodes | Avg. MSPB Cost Per Episode | Avg. Index Hospitalization Cost Per Episode | Avg. Post Discharge Cost Per Episode | Avg. Rehospitalization Cost per Episode | Avg. SNF Cost per Episode | Avg. HHA Cost per Episode |
1 | Holy Name Medical Center | Teaneck | Bergen | 17 | $33,871 | $29,517 | $4,354 | $1,320 | $2,046 | $968 |
2 | Valley Hospital | Ridgewood | Bergen | 26 | $35,238 | $28,832 | $6,406 | $1,629 | $3,646 | $1,126 |
3 | Penn Medicine Princeton Health | Plainsboro | Middlesex | 36 | $36,283 | $32,018 | $4,264 | $2,450 | $1,103 | $710 |
4 | Overlook Medical Center | Summit | Union | 22 | $38,345 | $32,790 | $5,554 | $4,369 | $799 | $386 |
5 | Robert Wood Johnson University Hospital | New Brunswick | Middlesex | 44 | $42,172 | $36,027 | $6,144 | $3,681 | $1,774 | $689 |
6 | Englewood Health | Englewood | Bergen | 26 | $42,955 | $36,357 | $6,597 | $1,647 | $3,508 | $1,441 |
7 | St. Joseph's University Medical Center | Paterson | Passaic | 16 | $46,407 | $35,684 | $10,722 | $7,314 | $2,286 | $1,122 |
8 | Hackensack University Medical Center | Hackensack | Bergen | 38 | $47,630 | $34,718 | $12,911 | $8,060 | $3,516 | $1,335 |
9 | Saint Barnabas Medical Center | Livingston | Essex | 28 | $52,996 | $35,264 | $17,732 | $11,174 | $4,671 | $1,886 |
Dexur’s latest analysis found that Saint Barnabas Medical Center, located in Essex county, had the highest average MSPB cost per episode with $52,996. The Index MSPB cost accounted for 66% of the overall MSPB cost at an average of $35,264 while the average post-discharge cost per episode was $17,732. Hackensack University Medical Center, located in Bergen county, also had a high average MSPB cost per episode of $47,630. Contrastingly, Holy Name Medical Center, located in the same county has the lowest average MSPB cost per episode with $33,871. The two hospitals had a difference of $8,557 in the average post-discharge cost per episode.
Connecticut - Spine Surgeries Hospital MSPB Cost Ranking | ||||||||||
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Rank | Hospital | City | County | Episodes | Avg. MSPB Cost Per Episode | Avg. Index Hospitalization Cost Per Episode | Avg. Post Discharge Cost Per Episode | Avg. Rehospitalization Cost per Episode | Avg. SNF Cost per Episode | Avg. HHA Cost per Episode |
1 | Stamford Hospital | Stamford | Fairfield | 13 | $33,817 | $31,405 | $2,411 | NA | $497 | $1,914 |
2 | MidState Medical Center | Meriden | New Haven | 47 | $34,610 | $30,133 | $4,476 | $1,664 | $1,607 | $1,202 |
3 | Norwalk Hospital | Norwalk | Fairfield | 24 | $39,290 | $32,494 | $6,796 | $1,903 | $3,379 | $1,514 |
4 | Danbury Hospital | Danbury | Fairfield | 75 | $40,018 | $32,223 | $7,794 | $2,997 | $3,063 | $1,733 |
5 | St. Vincent's Medical Center | Bridgeport | Fairfield | 19 | $40,550 | $33,213 | $7,337 | $2,598 | $2,743 | $1,994 |
6 | Bridgeport Hospital | Bridgeport | Fairfield | 16 | $42,443 | $34,738 | $7,704 | $1,558 | $2,862 | $3,282 |
7 | Greenwich Hospital | Greenwich | Fairfield | 19 | $43,158 | $35,466 | $7,692 | $2,869 | $2,806 | $2,016 |
8 | Yale New Haven Hospital | New Haven | New Haven | 60 | $58,116 | $39,660 | $18,429 | $8,996 | $6,745 | $2,687 |
Fairfield and New Haven were the only two counties in Connecticut that were considered for the study. Yale New Haven Hospital, located in New Haven county, had the highest average MSPB cost at $58,116 in the region. This was attributed to the high post-discharge costs with the average per episode being $18,429. Dexur’s analysis revealed that rehospitalization contributed about 15% of MSPB costs with the average rehospitalization cost being $8,996. The cost of Skilled Nursing Facility (SNF) and Home Health Agency (HHA) contributed to 11% and 3% of MSPB costs, respectively, at an average cost of $6,745 and $2,687 per episode. The only other hospital in the county that met the prerequisites for the study, MidState Medical Center, had a low average MSPB cost per episode with $33,881. Similarly, Stamford Hospital and Norwalk Hospital, located in Fairfield County, had lower average MSPB costs per episode with $33,817 and $39,290, respectively.