Efficiency and cost reduction domain

The Centers for Medicare & Medicaid Services (CMS) measures cost of care through the efficiency and cost reduction domain to increase the transparency of care for consumers by recognizing hospitals that provide high quality care at lower costs to Medicare.

Medicare spending per beneficiary (MSPB) measure

This measure of efficiency is based on an assessment of payment for services provided to a beneficiary during a spending-per-beneficiary episode that spans from 3 days prior to an inpatient hospital admission through 30 days after discharge. The payments included in this measure are standardized and adjusted so that variation in geographic costs are removed, as well as variation in patient health status.

Fiscal Year 2020 Baseline and Performance Periods:

Baseline period:

Performance period:

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