Payers and policymakers are increasingly examining hospital mortality
rates as indicators of hospital quality. To be meaningful, these death
rates must be adjusted for patient severity. This research examined w
hether judgments about an individual hospital's risk-adjusted mortalit
y is affected by the severity adjustment method. Data came from 105 ac
ute care hospitals nationwide that use the Medis-Groups severity measu
re. The study population was 18,016 adults hospitalized in 1991 for pn
eumonia. Multivariable logistic models to predict in-hospital death we
re computed separately for 14 severity methods, controlling for patien
t age, sex, and diagnosis-related group (DRG). For each hospital, obse
rved-to-expected death rates and z scores were calculated for each sev
erity method. The overall in-hospital death rate was 9.6%. Unadjusted
mortality rates for the 105 hospitals ranged from 1.4% to 19.6%. After
adjusting for age, sex, DRG, and severity, 73 facilities had observed
mortality rates that did not differ significantly from expected rates
according to all 14 severity methods; two had rates significantly hig
her than expected for all 14 severity methods. For 30 hospitals, obser
ved mortality rates differed significantly from expected rates when ju
dged by one or more but not all 14 severity methods. Kappa analysis sh
owed fair to excellent agreement between severity methods. The 14 seve
rity methods agreed about relative hospital performance more often tha
n expected by chance, but perceptions of individual hospitals' mortali
ty rates varied using different severity adjustment methods for almost
one third of facilities. Judgments about individual hospital performa
nce using different severity adjustment approaches may reach different
conclusions.