Table 2.
Correlation Matrix of Mean Medicare Costs for Ten Clinical Conditions and Total of All Conditions across Sixty Areas
| Mean Quintile Cost* | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Total Sample Ave. Annual Treatment Costs ($Mill) | Annual Prevalence (%) | Ave. HCC Score | Percent Physician Costs | Ave. No. of Physicians Involved | Mean Adjusted Cost | Lowest Cost Quintile | Highest Cost Quintile | Ratio (High to Low) | |
| Acute conditions | |||||||||
| Bacterial lung infection | 74 | 1.5 | 2.25 | 16.0 | 4.1 | 3,050 | 2,453 | 3,735 | 1.52 |
| Inflammation of the esophagus | 17 | 2.1 | 1.05 | 54.3 | 2.0 | 487 | 406 | 572 | 1.41 |
| Chronic conditions | |||||||||
| Heart disease | 1,347 | 17.6 | 1.67 | 23.3 | 4.5 | 4,245 | 3,538 | 5,171 | 1.46 |
| Joint degeneration of the knee/lower leg | 249 | 4.9 | 1.02 | 21.5 | 2.4 | 3,227 | 2,513 | 3,927 | 1.56 |
| Joint degeneration of back or neck | 229 | 7.9 | 1.14 | 38.8 | 2.8 | 1,752 | 1,506 | 2,009 | 1.33 |
| COPD/asthma | 222 | 5.2 | 1.58 | 20.0 | 3.5 | 2,228 | 1,768 | 2,977 | 1.68 |
| Cataract | 221 | 23.4 | 0.99 | 51.2 | 1.3 | 611 | 507 | 737 | 1.45 |
| Diabetes | 150 | 9.9 | 1.21 | 46.2 | 2.4 | 866 | 755 | 1,008 | 1.34 |
| Nonmalignant neoplasm of the prostrate | 106 | 12.3 | 1.00 | 64.1 | 1.6 | 551 | 422 | 687 | 1.63 |
| Chronic sinusitis | 20 | 3.15 | 1.08 | 71.6 | 1.7 | 414 | 314 | 531 | 1.69 |
| Total beneficiary costs | – | – | 1.00 | – | – | 8,811 | 6,971 | 10,991 | 1.58 |
*
Costs were adjusted for patient health status using the modified Hierarchical Condition Category (HCC) model. Mean costs are per beneficiary and have been adjusted for Medicare prices and health status (comorbidities, age, and sex).