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Medical Care Research and Review, Vol. 54, No. 3, 326-356 (1997)
DOI: 10.1177/107755879705400306
© 1997 SAGE Publications

Case-Mix Adjustment Using Administrative Databases: A Paradigm to Guide Future Research

Nelda P. Wray

Houston VA Medical Center, Baylor College of Medicine

John C. Hollingsworth

Houston VA Medical Center, Baylor College of Medicine

Nancy J. Petersen

Houston VA Medical Center, Baylor College of Medicine

Carol M. Ashton

Houston VA Medical Center, Baylor College of Medicine

One of the most persistent problems in the field of quality assessment remains how to remove the confounding effect of different institutions providing care to patients with dissimilar severity of illness and case complexity. The authors review the literature to determine whether risk adjustment systems based on administrative data are inherently inferior to systems that depend on primary data collection and conclude that they are not. In light of the potential competence of risk adjustment systems based on administrative data, the authors identify those systems that are best supported by theory and evidence. Data elements that have been found most explanatory of medical outcomes are also identified. On the basis of an evaluation of the performance of various risk adjustment approaches, the authors propose a paradigm that could serve to unify and direct future studies.


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