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Hospital Performance Analysis

Hospital Performance Index

Healthcare resources are finite—achieving the best patient outcomes through high quality, efficient care requires that these resources are intelligently directed.

The Milliman Hospital Performance Index (HPI) has been in use by national payors, regional payors, health systems, and government health care agencies since 1993, and was re-launched in 2013 with a newly designed, user-friendly interface. The HPI helps payors and providers analyse performance against national or regional best practice benchmarks.

The HPI identifies potentially avoidable inpatient days, all the way down to the DRG level. This allows better strategic deployment of care management resources. The HPI is also an extremely powerful tool when evaluating risk contracts or considering expansion into a new market.

Usable benchmarks, actionable data

Our benchmarks are statistically robust—the HPI benchmarks every facility to a common benchmark (the most efficient national or regional practice), allowing any payor or provider to compare (by specific DRG a specific hospital) against either national best practice or any other provider in the U.S. The HPI also accounts for complicated patients and accounts for complicated cases so that comorbidities or unavoidable complications don't prevent clear, specific, detailed insight.

The HPI can also offer an edge in strategic planning:

  • Contracting efforts. As risk models shift, the newly re-launched HPI can be an invaluable tool to constantly evaluate the performance of facilities against not only national and regional best practice, but also other local providers. This Milliman tool has withstood the test of time: It has been used by payors and providers for two decades to evaluate performance, as well as identify opportunities for risk sharing.
  • Trend analysis. For 20 years, providers and payors alike have been using the HPI to help make high-level care management and contracting decisions. Use the re-launched HPI to track your organisation’s trends against critical benchmarks as you implement new contracts and deploy precious resources.
  • Care management opportunities. Providers can use the detail provided by the HPI to identify, at a high-level, areas where deployment of care management resources could result in higher quality, more efficient patient outcomes.

Twenty years of product development, backed by Milliman’s Healthcare Intelligence offerings

The Hospital Performance Index is part of Milliman’s Healthcare Intelligence offerings—a comprehensive suite of solutions to help payors and providers analyse their network. It integrates seamlessly with our other Healthcare intelligence offerings, including MedInsight

The Hospital Performance Index has been used by national and regional health plans and federal health agencies since 1993. The HPI leverages a core Milliman strength: It turns massive amounts of data into meaningful information and helps payors and providers navigate the changing healthcare environment in the U.S. as care moves away from fee-for-service arrangements—supporting high-level decisions about reimbursement structures and the development of shared risk models.

Milliman Experts

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Scott Harris


Scott Harris currently leads the practice that produces the Hospital Performance Index, which is a tool that produces best practice benchmarks by DRG, and compares the relative performance of every hospital in the USA to those benchmar...

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