Describe how the measurement is compared externally to other like settings; differentiate between the actual rate and a percentile ranking.  

When measuring hospital readmission rates, the actual rate can be compared externally to other like settings, such as hospitals in the same region or hospitals with similar patient populations. This external comparison allows hospitals to identify areas for improvement and learn from other high-performing hospitals.

One way to compare actual readmission rates is to use a benchmarking tool such as the CMS Hospital Compare website, which allows hospitals to compare their performance to national, state, and regional averages for readmission rates for specific conditions. This tool also provides hospitals with a percentile ranking, which compares their performance to other hospitals in the same region or with similar patient populations.

Percentile ranking is a way to rank hospitals based on their performance relative to other hospitals in the same category. For example, if a hospital has a 30-day readmission rate of 15% and a percentile ranking of 80%, it means that the hospital performed better than 80% of other hospitals with similar patient populations.

It is important to note that percentile ranking does not provide information about the actual rate, but rather how the hospital’s rate compares to other hospitals. For example, a hospital may have a low readmission rate but a low percentile ranking if many other hospitals in the same category have even lower readmission rates.

In summary, comparing actual readmission rates externally to other like settings and using percentile ranking can help hospitals identify areas for improvement and learn from high-performing hospitals. Percentile ranking provides a way to compare hospitals based on their performance relative to other hospitals in the same category, but it should be used in conjunction with actual rates to get a comprehensive picture of hospital performance.