Table 2.

Average, risk-adjusted Medicare payments for different components of care at hospitals in the highest and lowest quintiles of risk adjusted complication rates. Based on 2005–7 national Medicare data.

	Hospital quintile of risk adjusted complication rates
	Lowest	Highest	Difference in payments	Proportion of total difference attributable to each cost category
CABG
Index hospitalization	$30,152	$33,635	$3,483	65.1%
Readmissions	$2,032	$2,398	$366	6.8%
Physician services	$4,820	$5,568	$748	14.0%
Post-discharge ancillary care	$3,667	$4,423	$756	14.1%
Total episode	$40,671	$46,024	$5,353	100%
Colectomy
Index hospitalization	$18,124	$19,652	$1,529	56.2%
Readmissions	$1,322	$1,736	$414	15.2%
Physician services	$3,405	$3,837	$432	15.9%
Post-discharge ancillary care	$2,631	$2,975	$344	12.6%
Total episode	$25,481	$28,199	$2,719	100%
AAA repair
Index hospitalization	$21,546	$25,258	$3,712	70.3%
Readmissions	$1,237	$1,593	$356	6.7%
Physician services	$3,405	$3,856	$451	8.5%
Post-discharge ancillary care	$1,535	$2,296	$761	14.4%
Total episode	$27,723	$33,002	$5,279	100%
Hip replacement
Index hospitalization	$10,952	$11,670	$719	29.5%
Readmissions	$763	$1,014	$251	10.3%
Physician services	$2,093	$2,337	$244	10.0%
Post-discharge ancillary care	$5,807	$7,030	$1,223	50.2%
Total episode	$19,615	$22,051	$2,436	100%