Research Study

Geographic Variation in Hospital Admission Rates in the Medicare Population

Health care expenditures continue to steadily increase with hospital stays making up about one-third of health care expenditures. A well-functioning delivery system within a managed care plan or a geographic region should be able to minimize the need for hospitalizations. In this 3M Clinical and Economic Research report, the Potentially Preventable Admissions (PPAs) methodology was used to identify hospital admissions that may be potentially preventable. If there are an excess number of PPAs compared to a national norm within a managed care plan or geographic region, it is likely the excess PPAs represent hospital admissions that could be avoided if the delivery system functioned effectively.

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