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Measuring cost

Our cost ratings show how well clinics and hospitals use resources for the unique group of patients they serve. We look at the total cost of care for treating a whole person or specific conditions, not just the fees for a certain service. The total cost includes lab tests, X-rays, care from additional physicians and hospital costs. The ratings help you compare the overall cost of care at one clinic or hospital to another.

Explaining Total Cost Index (TCI)

We use the Total Cost Index (TCI) to measure efficiency, intensity and price of the care delivered by a clinic or hospital compared to those delivering similar types of care (e.g., cardiologists compared to cardiologists).

Displaying cost ratings

Cost ratings are displayed on a scale of 1 to 4 dollar signs, with one dollar sign indicating lowest total cost of care. Ratings are calculated using data submitted by clinics and hospitals that show diagnosis and treatment for HealthPartners members. Compared to their peers, lower-cost providers are more efficient in diagnosing and treating conditions, charge a lower fee for delivering care, or both.

1 out of 4 dollars is lower cost, 4 out of 4 dollars is higher cost

Primary care

For more than a decade, HealthPartners has used the TCI to assess cost and efficiency differences among primary care groups. This HealthPartners-developed measure is one of the first measures of resource use and cost endorsed by the National Quality Forum.

Specialties

We report cost results for cardiology, ear, nose and throat, obstetrics and gynecology, and orthopaedic specialties. The total cost includes hospital, professional, ancillary and pharmacy costs.

Hospitals

Our regional hospital TCI measures Minnesota, Eastern South and North Dakotas, Western Wisconsin, and Northern Iowa facility’s inpatient and outpatient total costs compared to all other hospitals in the 11 county Twin Cities metropolitan area.

Overall cost ratings for hospitals in other parts of the country are based on hospital billed charges, which does not factor in negotiated discounts with HealthPartners. This currently is the only cost data available about these hospitals.

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