Notation – The Healthcare Quality Book- Vision, Strategy, And Tools

Number of denominator cases for a month Observed rate for a month Expected rate for a month A) Risk-adjusted rate, or B) Overall observed rate n po pe pe 1) Analysis is based on the score test . This test is based on the difference between the observed and the expected rates divided by the standard error of the expected rate as below. This value follows a normal distribution when the sample size is not very small. Any value less than -2.576 or greater than 2.576 signals statistically significant difference between the two rates at 1% significance level. 460 Appendix 2 2) The confidence interval for observed rate is obtained by expanding the above formula with respect to the expected rate . Its upper limit and lower limit for a month are calculated as follows. Statistical significance can also be determined by comparing the expected rate with the confidence interval . If pe is within the interval, the observed rate is not different from the expected rates, hence it is not an outlier. If pe is outside the interval, it is an outlier. This information is depicted on the comparison chart by converting the confidence interval around the observed rate into the expected range around the expected rate . The upper limit and lower limit of the expected range is calculated as below. The interpretation of comparison chart now involves the relative location of observed rate with respect to the expected range. If the observed rate is within the expected range , it is not a statistical outlier at 1% significance level. If the observed rate is outside the expected range, the observed rate is a statistical outlier.

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Notation – The Healthcare Quality Book- Vision, Strategy, And Tools

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