Association of Measured Quality and Future Financial Performance Among Hospitals Performing Cardiac Surgery

Abstract

Goal: For decades, hospitals performing cardiac surgery have carried the cost of implementing quality improvement activities and reporting quality outcomes. However, the financial return of such investments is unclear, which weakens the incentive for hospitals to invest in quality improvement activities. This study explored the relationship between a hospital's measured quality and its financial performance.Methods: Using data from the American Hospital Association and Hospital Compare from 2014 to 2018, we performed an observational study of hospitals performing cardiac surgery. We used mixed-effects regression models with fixed-year effects and random intercepts to explore associations between measured quality and hospital financial performance. Our dependent variables were margins (profit divided by revenue) and financial distress; our independent variables included Patient Safety Indicator 90 (PSI-90) and hospital characteristics.

When Agency Fails: An Analysis of the Association Between Hospital Agency Staffing and Quality Outcomes

“…Previous research has identified a positive association between high quality of care in hospitals and their financial performance. 44 , 59 Specifically, many of the steps taken to improve patient perceptions of quality and safety are all in the best interest of the patient but also serve to financially support the organization’s long-term economic viability. Notably, initiatives such as VBP provide a financial incentive for hospitals to deliver high-quality care.…”