CMS unveils updated hospital star ratings formula

The CMS announced Thursday it has added updated star ratings to its Hospital Compare site using a new methodology after a five-month delay.

The agency had postponed the release of the star ratings since July as it worked to change the methodology and gather stakeholder feedback. The new methodology was designed in response to criticism—particularly from hospitals—that the previous formula was flawed and provided inaccurate information about providers.

The retooled formula slightly flattens the usual bell-curve of hospitals that receive stars on a scale of 1 to 5, with 5 being the highest. In the previous methodology, few hospitals received 1 or 5 stars, and the majority have 2, 3 or 4 stars. While that is still the case, the number of hospitals with 1 or 5 stars has risen.

Using the new methodology, 260 hospitals have a 1-star rating compared with 125 hospitals under the earlier calculation. At the same time, there are now 337 hospitals with a 5-star rating versus 78 hospitals with the same rating in the old formula.

The distribution of quality metrics in order to get a composite score for each hospital has been altered as well. The new methodology has significantly decreased the emphasis on patient experience while slightly increasing the score for readmissions and timeliness of care.

“We continue to refine the star ratings and look forward to an ongoing dialogue with hospitals and patients and their families on how we can provide beneficiaries useful information,” CMS Administrator Seema Verma said in a statement.

Source:  Modern Healthcare

http://www.modernhealthcare.com/article/20171221/NEWS/171229968