Article: Analysis of variations in mortality rates with small numbers.

An important type of analysis, and one that the Health Care Financing Administration (HCFA) has directed state Peer Review Organizations to conduct, involves investigating mortality rates following hospital admission (Health Care Financing Administration 1992b). This type of analysis is directed at studying the extent to which differences in mortality rates across hospitals can be explained by differences in selected patient characteristics. For example, the observed mortality at each hospital can be compared with the mortality expected from national norms or from a model that accounts for patient characteristics. If the observed rates vary substantially from the expected ...

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