How can I put this in an Excel report?
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Notice that the Average Medicare Payment in Toledo is higher than that inYoungstownjpg_Page1.jpg

Notice that the Average Medicare Payment in Toledo is higher than that in Youngstown. The
payment is based on the IPPS and so it is driven by three primary components: DRG weight,
wage index (cost of living), and outlier payments. We can investigate to see if the DRG mix is
the cause of the payment differences by creating a variable that estimates the proportion of cases
with either a CC (MS-DRG 065) or MCC (MS-DRG 064). The following table was created
based on the sample data set.
064 – Intracranial
065 – Intracranial
066 – Intracranial
Hemorrhage or
Hemorrhage or
Hemorrhage or
Cerebral Infarction
Cerebral Infarction
Cerebral Infarction
w/MCC
w/CC
w/o CC or MCC
Toledo
204
315
199
Youngstown
53
191
145
The hypothesis test may be formulated as:
1.
Determine the null and alternative hypotheses:
Ho: Pi = Pz or pi – P2 = 0
Ha: Pi # P or pi – P. # 0
Where pi = proportion of CC/MCC cases in Toledo
P = proportion of CC/MCC cases in Youngstown
2.
Set the acceptable type I error or alpha level
Alpha = 0.05
3.
Select the appropriate test statistic
Z is the appropriate test statistic
4.
Compare the test statistic to a critical value based on alpha and the distribution of
the test statistic

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