Risk Adjustment

Risk Adjustment is used when comparing the performance of two care processes (or providers) to address potential confounding variables by applying the observed performance to a standardized population to “level the playing field”.

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 »

Dr. Ward to speak at 5th Annual Predictive Modeling Summit, November 8-9, 2011, Washington, DC

The 5th Annual Predictive Modeling Summit is described by conference organizers as the “leading forum on predictive analytics applied to key health care functions, settings and populations.” Dr. Ward will be giving a presentation entitled “Using Intervention Models and Predictive Models to Optimize Patient Selection for Care Management in ACOs” at 1pm on November 9,

Dr. Ward to speak at 5th Annual Predictive Modeling Summit, November 8-9, 2011, Washington, DC Read More »

Klar 3: The necessity of re-qualifying the population to avoid regression-toward-the-mean bias in historical comparison groups

Ron Klar, MD, MPH is a health care consultant with a long history of involvement in federal health care policy and health plan innovation. He published a recent series of three posts regarding the draft rules for the Medicare Shared Savings Program (MSSP) in the Health Affairs Blog, an influential forum for debating health policy

Klar 3: The necessity of re-qualifying the population to avoid regression-toward-the-mean bias in historical comparison groups Read More »