----Lead Forensics----

Luke Wylie

Data Scientist

Nicolaus Enko

Data Scientist

Quantifying the Volume Revenue Relationship

Our TEAM™ platform allows users a full view of their local healthcare network. From pre-acute episodes, through a hospital stay, all the way to post-acute care such as SNF’s and PM&R groups. A deep understanding of this network allows healthcare facilities and physician practices to align themselves with providers who offer quality care to a large patient volume.

While TEAM can paint a clear picture of patient volume moving through a market, we wanted to see if there was a direct correlation between the patient volume seen in TEAM and a hospitals net income. We combined income data from 2014 Healthcare Cost Report Information System (HCRIS) reports to 2014 Medicare teaming data from TEAM for 1,579 acute care facilities across the country to see what affect shared patient visits had on a hospital’s net income.

The TEAM platform aggregates data using a 30-day window when a patient is seen between two providers. We capture the shared treatment visits (all clinical treatments), unique patients, and same day visits shared between the two providers. To help quantify the relationship between volume and revenue, we combined Net Income from the 2014 HCRIS, and 2014 shared visits, unique patients, and same day visits from TEAM by hospital, where the hospital was the second provider to see the patient.

Once the data was aggregated, we were left with a sample size of 1,579 hospitals that had net income reported in HCRIS and a significant amount of pre-acute shared visits, unique patients, and same day visits. We used R to analyze the data and after checking for normality, a Pearson-R correlation was employed to quantify correlations between unique patients, same day visits, shared treatment visits, and net income.

The result was a positive correlation with all three variables.

  • A 28% positive correlation was found in Net Income and Shared Visits (r=.2716, n=1579, p <0.05)
  • Net Income and Unique patients had a 32% correlation (r=.3173, n=1579, p <0.05)
  • Net Income and Same Day Visits had a correlation of 24% (r=.2350, n=1579, p <0.05) which are all statistically significant.

These results suggest that a significant relationship does exist between patient volumes seen in the TEAM platform and a hospital’s net income.