Health care payers and providers are increasingly monitoring hospital
discharge data bases for adverse events as markers for quality of care
. The principal criticisms of these analyses have focused on the imped
iments to risk adjustment posed by the incompleteness and inaccuracy o
f the data bases. However, efforts to address the inadequacies of the
data bases will not correct deficiencies of the analytic process. Thes
e deficiencies arise from the application of one adverse outcome to al
l disease states. Instead, analysis should be restricted to comparison
s of subgroups of patients in which a close fit exists between the qua
lity of care for the disease state and the expected outcome. Furthermo
re, these disease-outcome pairs should be minimally subject to measure
ment error. The authors present a conceptual framework for developing
such meaningful disease-outcome pairs, and using the hospital discharg
e data base of the Department of Veterans Affairs, show how the framew
ork can be used to devise a monitoring strategy for re-admission.