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Oct 08, 2015

New Study Finds Average Medicare Spending for Top Technology Hospitals Matches National Rate

Avalere Health partnered with the Advanced Medical Technology Association (AdvaMed) to evaluate the impact of innovative technology adoption on Medicare spending. The analysis found that, on average, Medicare spending for the most technology-intense hospitals matched the national rate for all other hospitals. However, top technology hospitals have a higher percentage of hospitals with spending rates that are lower than the national average.

Approximately 65 percent of top technology hospitals have average Medicare Spending per Beneficiary (MSPB) below the national average compared to 56 percent of the non-top technology hospitals. Additionally, when top technology hospitals are matched against a comparable group of larger hospitals having more than 200 beds, Medicare spending for top technology hospitals is significantly lower than other large hospitals.  

The analysis was based on an evaluation of 2012 MSPB scores for 3,261 Medicare-eligible acute care hospitals.  Top technology hospitals were identified in an independent analysis by U.S. News & World Report1.  The results provide valuable insight into the potential economic benefits of adoption and use of medical technology. 

Additional research is needed to further validate these findings and to assist policymakers in better understanding the relationship between technology adoption and its impact on overall health spending and patient outcomes.

For additional information on the analysis, please contact Erin Sullivan at ESullivan@avalere.com.

Access the full report below. 

​1. U.S. News & World Report Best Hospitals 2012-13. Copyrighted 2015. U.S. News & World Report. 117347:0715JM.

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