Risk Adjustment Methods

Risk adjustment methods are techniques used to fairly compare healthcare outcomes and costs among different groups or providers by accounting for varying patient health statuses. They consider factors like age, medical conditions, and severity of illness to ensure that differences in outcomes are not simply due to sicker or healthier patients. This helps policymakers, insurers, and healthcare providers evaluate performance more accurately, promote fairness, and encourage quality improvements. Essentially, risk adjustment levels the playing field so comparisons reflect real performance rather than differences in patient populations.