How PEPPER determines outliers: percentiles, thresholds and an example calculation
CMS presenters explained that target-area outlier status is based on percentile benchmarks (national 80th percentile) and showed example calculations (e.g., 2% vs. 3.3% with an 80th-percentile threshold of 2.8%).
The full story
Theresa walked attendees through how PEPPER computes target-area percentages and determines outlier status using national percentiles. Using a 3–5 day readmission example, she said the national 80th percentile for fiscal year 2025 was "2.8 percent" and explained facilities with target-area percentages above that benchmark are considered high outliers.
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