CMI is an important performance indicator for your hospital not because it tells a big story in and of itself, but because of how it impacts your hospital's finances. CMI is a measure of the average severity level of a hospital's procedures. ... While the logic may be debatable, the revenue impact on hospitals is not.

What is case mix and why is it important?

Case mix index is a measure used by the Centers for Medicare and Medicaid Services (CMS) to determine hospital reimbursement rates for Medicare and Medicaid beneficiaries. This measure reflects the diversity, complexity, and severity of patient illnesses treated at a given hospital or other healthcare facility.

How CMI affects a facility?

Increased CMI results in higher reimbursement and lower adjusted cost per patient per day, which equates to a significant revenue enhancement for hospitals. Not only that, it also positively impacts Observed Over Expected (O/E) ratios for quality scores, including mortality and expected complications.