Vizient study ties quality leadership to stronger hospital margins

IRVING, Texas--(BUSINESS WIRE)--Health systems that achieve the highest quality performance also deliver the strongest financial results, according to new analysis from Vizient^® in collaboration with its intelligence arm Sg2. The findings are discussed further in the article “Quality is healthcare’s most underestimated financial lever.”

The analysis of organizations participating in Vizient’s Quality and Accountability (Q&A) Study found a strong correlation between top-tier quality performance and improved operating margins, lower risk-adjusted direct costs and stronger commercial reimbursement. Organizations ranked in the top quintile of the Q&A Scorecard reported average operating margins of 6.3%, compared to negative margins among lower-performing peers.

The analysis draws on data from more than 1,000 hospitals participating in the Vizient Clinical Data Base (CDB) and Medicare cost reports. Each year, Vizient recognizes top-performing organizations who participate in the CDB through the Q&A Study. This financial analysis was conducted separately and examines how those quality rankings correlate with broader measures of financial performance.

“Quality is the connective tissue between clinical excellence and financial resilience,” said Maddie McDowell MD, senior principal, intelligence at Sg2. “Our research shows that better clinical quality performance better positions hospitals to manage costs, capture revenue and negotiate from a position of strength.” The findings reinforce quality as a core driver of long-term financial sustainability and market resilience—particularly as health systems face continued margin pressure and rising operational complexity.

“The Quality & Accountability Study was designed to measure what matters in patient care,” said David Levine MD, chief medical officer, Vizient. “What we are seeing now is that excellence in those measures directly correlates with financial sustainability. Quality performance is becoming one of the most reliable indicators of organizational strength.”

Read the article, “Quality is healthcare’s most underestimated financial lever,” which explores the findings in more detail.

About Vizient, Inc.

Vizient, Inc., the nation’s largest provider-driven healthcare performance improvement company, provides solutions and services to more than two-thirds of the nation’s acute care providers and more than one-third of ambulatory providers. Vizient offers proprietary data and analytics to deliver unique clinical and operational insights and a contract portfolio representing $156 billion in annual purchasing volume enabling the delivery of cost-effective care. With its acquisition of Kaufman Hall in 2024, Vizient expanded its advisory services to help providers achieve financial, clinical and operational excellence. Headquartered in Irving, Texas, Vizient has offices throughout the United States. Learn more at www.vizientinc.com.

About Sg2

Sg2, a Vizient company, is the health care industry’s trusted partner for accelerating growth and improving financial results. Our analytics and expertise help health care leaders achieve sustainable growth and maintain market relevance by optimizing System of CARE, payer and consumer strategies. Learn more at www.Sg2.com.