Medical Productivity Index
The Medical Productivity Index (MPI) was conceptualized by economists at the Medical Industry Leadership Institute to provide an accurate measure for consumer productivity of insurance financed medical care. By analyzing the health status achieved by a patient relative to the amount of resources invested in care, the MPI is able to inform health care reform that targets cost reduction and efficient care management. H&E uses plan-specific, expected values to compute an aggregate MPI for the non-elderly insurance market, including Medicaid. Plan-specific MPI values range from a low 1.5 for Medicaid to a high of 4.0 for health savings accounts, reflecting that participants in Medicaid receive poor gains in health status in return for expenditures on care compared to relatively high gains in health status achieved by health savings accounts with more tightly managed resources.