Where are America’s most cost-efficient hospitals?

Nov. 10, 2021

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 healthcare 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, according to a Lown Institute press release, 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. 

10 most cost-efficient hospitals in America:

  • Pinnacle Hospital (Crown Point, IN)
  • Saint Mary’s Regional Medical Center (Reno, NV)
  • Mercy Medical Center Dubuque (Dubuque, IA)
  • Encino Hospital Medical Center (Encino, CA)
  • Park Ridge Health (Hendersonville, NC)
  • Oroville Hospital (Oroville, CA)
  • Saint Michael’s Medical Center (Newark, NJ)
  • UnityPoint Health - Meriter (Madison, WI)
  • East Liverpool City Hospital (East Liverpool, OH)
  • Maple Grove Hospital (Maple Grove, MN)

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.

Lown Institute press release