Advisory Board May 10, 2021

CMS recently released its updated hospital quality star ratings on Medicare’s Hospital Compare, marking the first release of the ratings since CMS updated its methodology last year.

How CMS calculated this year’s star ratings

CMS updated its star ratings methodology in its 2021 Outpatient Prospective Payment System final rule. Previously, CMS calculated its star ratings using a method called a latent variable model, which uses a variety of variables to calculate the weight of each measure used in the ratings. 

In the new methodology, CMS gives equal weight to the quality and safety measures it uses. It also reduced the overall number of those measures from 65 to 48, and grouped the measures into five—rather than the former seven—categories:

  • Mortality (weighted...

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