Opportunity Analysis

Opportunity Analysis involves comparison of the actual performance of a care provider to the performance that a benchmark performer would have if they had the same population as the care provider. This type of analysis is used to inform prioritization of practice improvement efforts.

So, is there any good use of O/E analysis? Yes. It’s called Benchmark Opportunity Analysis.

In last week’s post, I argued that observed over expected analysis (O/E) was commonly misused as a method for doing “level playing field” performance comparisons.  I recommend against using it for that purpose. But, is there some other good use for O/E analysis? I can’t think of a good use for the O/E ratio itself

So, is there any good use of O/E analysis? Yes. It’s called Benchmark Opportunity Analysis. Read More »

Observed over expected (O/E) analysis is commonly misapplied to performance comparisons. Please don’t.

A few years ago, I had a shocking and enlightening discussion about analytic methods with a group of epidemiologists and biostatisticians from Blue Cross Blue Shield of Michigan. We were sitting around a table at a conference center in Lansing, where we were debriefing from a meeting of the Physician Group Incentive Program. We were

Observed over expected (O/E) analysis is commonly misapplied to performance comparisons. Please don’t. Read More »

ACOs must steer clear of anti-trust issues

What’s the problem? Accountable Care Organizations (ACOs) involve the creation of new entities that are intended to improve quality and efficiency of care.  But, experts in economics and anti-trust law worry that ACOs can have the unintended effect of reducing competition among health care providers, creating local monopolies that can drive up prices. In a

ACOs must steer clear of anti-trust issues Read More »