Methodist Earns 9 Awards, Bonus in Value-Based Purchasing Project

Published On 11/09/2011

Methodist Healthcare has been named a top performer in a Centers for Medicare & Medicaid Services (CMS), Premier healthcare alliance value-based purchasing (VBP) project that rewards hospitals for delivering high quality care in five clinical areas.  Methodist’s adult hospitals in Memphis and Somerville are the recipients of nine awards for performance in year 6 of the project that covers the time period of October 2008 to September 2009.  Methodist will be receiving a bonus payment of $322,403. Methodist has received a total of $805,281 in payments since the program began and is the only Memphis hospital participating in the quality project.  

Based on sixth-year results from the Hospital Quality Incentive Demonstration (HQID) project, Methodist Healthcare Memphis Hospitals, which includes Methodist University Hospital, Methodist South Hospital, Methodist North Hospital and Methodist Le Bonheur Germantown Hospital, will receive the following awards: 

  • Attainment in the clinical area of AMI (heart attack) for a total of $7,826
  • Top Performer in the clinical area of AMI (heart attack) for a total of $32,033
  • Attainment in the clinical area of Heart Failure for a total of $31,266
  • Top Improvement in the clinical area of Heart Failure for a total of $106,286
  • Attainment in the clinical area of Pneumonia for a total of $13,201
  • Top Improvement in the clinical area of Pneumonia for a total of $44,654
  • Attainment in the clinical area of SCIP (Surgical Care Improvement Project) for a total of $38,655
  • Top Improvement in the clinical area of Hip/Knee for a total of $47,665

Methodist Healthcare Fayette Hospital will receive the following award:

  • Attainment in the clinical area of Pneumonia for a total of $817

“Providing outstanding patient care has always been our top priority,” said Jerry Maliot, M.D., Chief Quality Officer, Methodist Le Bonheur Healthcare. “Our successes in this project are a testament to our ongoing efforts to improve the quality of care we offer our patients.

Dr. Maliot added, “Achieving high quality is not something that just happens; it takes dedicated, focused work by the leadership and frontline caregivers at each of our hospitals, and I am very proud of that these awards reflect the work they have done.”

“HQID tests the impact of economic incentives on quality,” said Susan DeVore, president and CEO of Premier, a healthcare quality and cost improvement alliance of more than 2,500 U.S. hospitals and 77,000-plus other healthcare sites. “Supporting the Affordable Care Act, HQID members will now have six years of experience in using a value-based purchasing model.”

Participation in the demonstration is voluntary. Currently, about 225 hospitals are participating in the demonstration. CMS is using the Premier demonstration as a pilot test of this concept. CMS is currently working on implementation of value based purchasing for all hospitals, as required by the Affordable Care Act. The Premier demonstration has been extremely valuable in providing design and testing of the concept.

About the HQID project
HQID is the first national project of its kind, designed to determine if economic incentives to hospitals are effective at improving the quality of inpatient care. In the project’s sixth year, Premier collected a set of more than 30 evidence-based clinical quality measures from 216 hospitals across the country. The quality measures were developed by government and private organizations (for more information on the indicators, visit

HQID tracks process and outcome measures in six clinical areas: acute myocardial infarction (AMI), heart failure, coronary artery bypass graft (CABG), pneumonia, hip and knee replacement, and Surgical Care Improvement Project (SCIP).

Improvements in quality of care saved an estimated 8,500 acute myocardial infarction (AMI/heart attack) patients in six years, according to a Premier analysis of mortality rates at participating hospitals. The nearly 3 million patients treated in the six clinical areas at the participating hospitals also received approximately 962,540 additional evidence-based clinical measures, such as the proper administration of aspirin, beta blockers and antibiotics.

For HQID hospitals, the average Composite Quality Score (CQS), an aggregate of all process and outcomes measures within each clinical area, improved by 18.6 percent over the project’s six years. Examples of the measures include the proper administering of aspirin, beta blockers and antibiotics; and readmission and mortality rates.

Additional research by Premier using the Hospital Compare dataset showed that, by September 2009, HQID participants scored on average 5.44 percentage points higher (95.64 percent to 90.2 percent) than non-participants when evaluating 25 common Hospital Compare measures.

Award criteria – All awards are based on the change in the hospital CQS in the performance year compared to two years prior (year 3 to year 6).

  1. Attainment Award – Hospitals that attain or exceed the median level CQS benchmark from two years prior will receive an incentive payment.
  2. Top Performance Award –The top 20 percent of hospitals in each clinical area will receive an additional incentive payment. This group will receive the Attainment Award as well.
  3. Top Improvement Award – Hospitals that attain median level performance and are among the top 20 percent of hospitals with the largest percentage quality improvements in each clinical area will receive an additional incentive payment.

About the Premier healthcare alliance, Malcolm Baldrige National Quality Award recipient
Premier is a performance improvement alliance of more than 2,500 U.S. hospitals and 78,000-plus other healthcare sites using the power of collaboration to lead the transformation to high quality, cost-effective care. Owned by hospitals, health systems and other providers, Premier maintains the nation's most comprehensive repository of clinical, financial and outcomes information and operates a leading healthcare purchasing network. A world leader in helping deliver measurable improvements in care, Premier has worked with the Centers for Medicare & Medicaid Services and the United Kingdom's National Health Service North West to improve hospital performance. Headquartered in Charlotte, N.C., Premier also has an office in Washington. Stay connected with Premier on Facebook, Twitter and YouTube. 

About Methodist Le Bonheur Healthcare
Methodist Le Bonheur Healthcare (MLH) is an integrated healthcare delivery system based in Memphis, Tenn.  Founded in 1918 by The United Methodist Church to help meet the growing needs for quality healthcare in the Mid-South, MLH has grown from one hospital into a seven-hospital system that also includes a home health agency, ambulatory surgery centers, and outpatient facilities serving the Memphis area. Methodist was named the BEST hospital in Memphis by U.S. News and World Report.