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Health care organizations have been using performance measures to compare hospitals. However, it is unclear if compliance with these performance measures results in better healthcare outcomes. We examined compliance with acute myocardial infarction, congestive heart failure, pneumonia and surgical process of care measures with traditional outcome measures including mortality rates, morbidity rates, length of stay and readmission rates using the Veterans Healthcare Administration Quality and Safety report. Disappointingly, increased compliance with the performance measures was not correlated with better outcomes with the single exception of improved mortality with higher rates of compliance with echocardiography. We also evaluated the hospital level of care and found that higher levels of complexity of care correlated with the acute myocardial infarction performance measure, but not with the congestive heart failure, pneumonia, or surgical process of care performance measures. However, level of complexity of care strongly correlated with all cause mortality (p