The best bang for the buck: Where are America’s most cost-efficient hospitals

First-ever ranking examines costs at 3,000 hospitals, identifying $8 billion in potential Medicare savings

News Release from Lown Institute, November 9, 2021

BOSTON, MA — A new analysis identifies the most cost-efficient hospitals in America and highlights how potentially billions of dollars could be saved in the nation’s Medicare program.    

The analysis from the Lown Institute, a health care think tank, uncovered big differences in the cost of care between hospitals, even those within the same city.

The study analyzed data from more than 3,000 hospitals, looking at how much Medicare was billed and comparing that to how many patients died, both 30 and 90 days from admission.

Among hospitals with average 30-day mortality rates, costs ranged from $9,000 to $27,000 per patient. The study shows that if all hospitals matched the performance of the country’s most cost-efficient hospitals, there would be $8 billion in Medicare savings each year. 

“If we want to keep costs low for the Medicare program and provide quality care for the 60 million Americans who depend on it, hospitals must be as efficient as possible,” said Vikas Saini, M.D., president of the Lown Institute. “The best hospitals prove that you can save Medicare dollars and deliver great patient outcomes at the same time.”

Link: Top 3 hospital systems with hospitals in Hawaii ranked nationally

1  Queen's Health Systems  VIEW PROFILE

2  Hawaii Health Systems Corporation  VIEW PROFILE

3  Hawaii Pacific Health  VIEW PROFILE

Link: Most cost efficient hospitals in Hawaii

Viewing 10 hospitals in Hawaii Ranked by …

COST EFFICIENCY

1  Straub Clinic and Hospital  Honolulu, HI  VIEW PROFILE

2  Adventist Health Castle  Kailua, HI  VIEW PROFILE

3  Kuakini Medical Center  Honolulu, HI  VIEW PROFILE

4  Pali Momi Medical Center  Aiea, HI  VIEW PROFILE

5  The Queens Medical Center  Honolulu, HI  VIEW PROFILE

6  Wahiawa General Hospital  Wahiawa, HI  VIEW PROFILE

7  North Hawaii Community Hospital  Kamuela, HI  VIEW PROFILE

8  Wilcox Memorial Hospital  Lihue, HI  VIEW PROFILE

9  Hilo Medical Center  Hilo, HI  VIEW PROFILE

10  Kona Community Hospital  Kealakekua, HI  VIEW PROFILE

  *   *   *   *   *

OUTCOMES

1  Pali Momi Medical Center  Aiea, HI  VIEW PROFILE

2  Straub Clinic and Hospital  Honolulu, HI  VIEW PROFILE

3  The Queens Medical Center  Honolulu, HI  VIEW PROFILE

4  Kuakini Medical Center  Honolulu, HI  VIEW PROFILE

5  Hilo Medical Center  Hilo, HI  VIEW PROFILE

6  Adventist Health Castle  Kailua, HI  VIEW PROFILE

7  Kona Community Hospital  Kealakekua, HI  VIEW PROFILE

8  Wahiawa General Hospital  Wahiawa, HI  VIEW PROFILE

9  Wilcox Memorial Hospital  Lihue, HI  VIEW PROFILE

10  North Hawaii Community Hospital  Kamuela, HI  VIEW PROFILE

  *   *   *   *   *

VALUE

1  Straub Clinic and Hospital  Honolulu, HI  VIEW PROFILE

2  Pali Momi Medical Center  Aiea, HI  VIEW PROFILE

3  The Queens Medical Center  Honolulu, HI  VIEW PROFILE

4  Wilcox Memorial Hospital  Lihue, HI  VIEW PROFILE

5  Adventist Health Castle  Kailua, HI  VIEW PROFILE

6  Kuakini Medical Center  Honolulu, HI  VIEW PROFILE

7  Wahiawa General Hospital  Wahiawa, HI  VIEW PROFILE

8  North Hawaii Community Hospital  Kamuela, HI  VIEW PROFILE

9  Hilo Medical Center  Hilo, HI  VIEW PROFILE

10  Kona Community Hospital  Kealakekua, HI  VIEW PROFILE

  *   *   *   *   *

EQUITY

1  Kona Community Hospital  Kealakekua, HI  VIEW PROFILE

2  Wahiawa General Hospital  Wahiawa, HI  VIEW PROFILE

3  Kuakini Medical Center  Honolulu, HI  VIEW PROFILE

4  The Queens Medical Center  Honolulu, HI  VIEW PROFILE

5  Wilcox Memorial Hospital  Lihue, HI  VIEW PROFILE

6  Hilo Medical Center  Hilo, HI  VIEW PROFILE

7  North Hawaii Community Hospital  Kamuela, HI  VIEW PROFILE

8  Pali Momi Medical Center  Aiea, HI  VIEW PROFILE

9  Straub Clinic and Hospital  Honolulu, HI  VIEW PROFILE

10  Adventist Health Castle  Kailua, HI  VIEW PROFILE

The Institute tracked Medicare patients hospitalized from 2016-2018 using claims data, and adjusted both mortality rates and cost based on patient risk. Total Medicare cost included claims from inpatient hospitalizations and post-discharge claims (hospice, skilled nursing facilities, etc). Hospitals with the lowest mortality rates and lowest costs received the best scores on cost efficiency.  

The study is part of the 2021 Lown Hospitals Index. A full methodology for the cost efficiency rankings is available.

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SA: Hawaii Pacific Health ranks second in nation for cost-efficiency