Thirty-Day Spending and Outcomes for an Episode of Pneumonia Care Among Medicare Beneficiaries

Abstract

Recent policy initiatives aim to improve the value of care for patients hospitalized with pneumonia. It is unclear whether higher 30-day episode spending at the hospital level is associated with any difference in patient mortality among fee-for-service Medicare beneficiaries. This retrospective cohort study assessed the association between hospital-level spending and patient-level mortality for a 30-day episode of care. The study used data for Medicare fee-for-service beneficiaries hospitalized at an acute care hospital with a principal diagnosis of pneumonia from July 2011 to June 2014. Analysis was conducted by using Medicare payment data made publicly available by the Centers for Medicare & Medicaid Services on the Hospital Compare website combined with Medicare Part A claims data to identify patient outcomes. A total of 1,017,353 Medicare fee-for-service beneficiaries were hospitalized for pneumonia across 3,021 US hospitals during the study period. Mean ± SD 30-day spending for an episode of pneumonia care was $14,324 ± $1,305. The observed 30-day all-cause mortality rate was 11.9%. After adjusting for patient and hospital characteristics, no association was found between higher 30-day episode spending at the hospital level and 30-day patient mortality (adjusted OR, 1.00 for every $1,000 increase in spending; 95%CI, 0.99-1.01). Higher hospital-level spending for a 30-day episode of care for pneumonia was not associated with any difference in patient mortality.