An Update: The Association between the CXO Role and Hospital Patient Experience Scores

Abstract

Due to the healthcare industry’s shift from fee-for-service to value-based purchasing (VBP), many hospitals have changed their internal structure to adapt to the new environment by including a new C-suite leader, a Chief Experience Office (CXO). Payers have implemented various performance models to incentivize hospitals and other providers to incorporate the concept of patient-centeredness for improving the patient experience. The patient experience domain of the HCAHPS survey is an integral part of CMS’ hospital VBP program payment adjustment. Considering that most hospitals operate with under two percent profit margins, payment incentives or penalties can have a significant impact on their financial sustainability. So this study aimed to answer the question, does a hospital receive a return on a CXO investment in way of higher patient experience scores? Using Breen and colleagues (in-press) study data, we wanted to explore if our findings, post three years, would be consistent with their findings, that is, to determine if hospitals that continue to employ a formal full-time CXO role report higher HCAHPS scores than hospitals without this C-suite position. Our study’s findings were consistent with the Breen et al. study in that hospitals that have a formal CXO role are more likely to have higher HCAHPS scores as determined by the patient recommendation question as well as the hospital overall rating question included in the HCAHPS survey. We also provide additional insight into the organization characteristics of hospitals and the market factors associated with those hospitals that have filled the CXO role.