Measure Methodology Reports
Medicare Spending Per Beneficiary (MSPB) Measure
The methods used in the development of the Medicare Spending Per Beneficiary (MSPB) measure are described briefly here and in more detail in technical reports, below.
The MSPB measure was developed by Centers for Medicare & Medicaid Services (CMS) in conjunction with a team of clinical and statistical experts from Acumen LLC and Vangent. The MSPB measure evaluates hospitals’ efficiency relative to the efficiency of the median national hospital. The MSPB measure assesses the cost of services performed by hospitals and other healthcare providers during the period immediately prior to, during, and following a beneficiary's hospital stay. The MSPB measure controls for variation in spending levels due to factors such as patient case mix and geographic differences in Medicare payment levels.
The MSPB methodology is described in more detail in the following reports:
- MSPB Measure Information Form, PDF-367 KB (09/20/12) – the methodology used to develop the price-standardized, risk-adjusted MSPB measure
- CMS Price Standardization, PDF-1.5 MB (01/31/12) – CMS' price standardization methodology
- MSPB Measure Calculation Example, ZIP-221 KB (01/31/12) – an example MSPB measure calculation for a fictional hospital