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Project To Test Payment For High Quality Care

Many Doctors Don’t Discuss Useful, Uncovered Treatments With Patients

Veterans Affairs Will Allow Patients Online Access To Medical Records

Report Says EMRs Are Easier To Understand, Than Paper Records

HHS To Support Paperless Medical Records System

NCQA Issues New HEDIS Measures With Clinical Care, Customer Service

Public Hospital Group Backs Hospital Quality Initiative, Urges Participation

JCR Calls For Poster Presentations For Ambulatory Care Conference

CMWF Makes Business Case For Quality Case Studies Available

Project To Test Payment For High Quality Care

The Centers for Medicare and Medicaid Services and the Premier hospital purchasing alliance have announced a groundbreaking pilot program that will reward top performing hospitals with higher Medicare payments.

At a press conference this week, CMS and the Premier hospital purchasing alliance unveiled a three-year demonstration that will award bonuses to hospitals based on performance on 35 quality measures for heart attack, heart failure, pneumonia, coronary artery bypass graft, and hip and knee replacements. Medicare will pay bonuses totaling $7 million per year for a total of $21 million during the pilot.

Medicare officials explained that all participating hospitals will receive baseline measurements for the first year. As hospitals improve performance on the indicators over the next three years, they will receive an additional payment of 2% for being in, or moving into the top 10% of participating hospitals and 1% for the next 10%.

However, CMS Administrator Thomas Scully said hospitals still in the bottom 20% of performers in the third year of the project will face reduced payments—a 2% reduction for the lowest 10% and a 1% reduction for the next lowest 10%. Scully explained that if every hospital improves on the indicators and moves into the top 20% of performers, all will get bonuses. In addition, if all hospitals improve to rates higher than the lowest 20%, based on the baseline measurement, none will receive reductions in the third year of the demonstration.

Hospitals in the top 50% of performers, but not in the top 20%, will receive recognition but no additional funds.

"The costs of this demonstration will be partly offset by reductions in medical costs, especially in reductions of unnecessary hospital readmissions because of better care in the initial inpatient stay," said Scully, who called the demonstration "budget neutral."

Scully added that the current Medicare law only allows CMS to pay more for higher performance under a demonstration project, but he expressed hope that Congress would consider changing the law to allow for expansion of the initiative to all hospitals.

CMS will rank the hospitals by their performance in as many as eight high-volume clinical areas and all rankings will be posted on Medicare.gov in 2004. As many as 300 of Premier’s 1,500 member hospitals are expected to participate, CMS said.

For more info, www.hhs.gov/news.

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Many Doctors Don’t Discuss Useful, Uncovered Treatments With Patients

Nearly one in three doctors withholds information from patients about useful medical services that aren’t covered by their health insurance companies, according to a new study.

Study authors say their work offers the first empirical evidence for what many have long suspected: that coverage limitations imposed by managed care are inhibiting communications between doctors and patients.

Researchers surveyed 700 physicians and asked how often they had decided not to offer a "useful service to a patient because of health plan rules." Forty-two percent said never, and 27% said rarely. But 23% said "sometimes," and 8% said "often" or "very often."

Most medical codes of ethics strongly discourage physicians from holding back information on useful care from their patients because of coverage rules. However, significant numbers of physicians are withholding information from some patients as a way of dealing with restrictive coverage rules, said lead study author Matthew Wynia, director of the Institute for Ethics at the American Medical Association in Chicago. ·

Wynia said that failing to address uncovered services also denies patients the opportunity to argue to change coverage restrictions, and can lead to distrust of physicians.

Physicians who cared for larger volumes of Medicaid patients were more likely to sometimes withhold information on useful but uncovered treatments, the report said. Researchers said that this attitude may contribute to racial disparities in health care, since African Americans are much more likely than whites to be covered by Medicaid.

Financial pressures also appear to play a role, it said. Physicians whose incomes depended to a large extent on risk-sharing arrangements with managed care plans for patient care costs tended to say they did not offer some patients useful but uncovered services.

For more info, www.healthaffairs.org.

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Veterans ffairs Will Allow Patients Online Access To Medical Records

The Department of Veterans Affairs will offer veterans who seek treatment at its facilities access to their records over the Internet starting next spring.

Although patients will not be able to view complete records, they will get access to copies containing data that VA clinicians consider most relevant, the report said. Data will include progress notes, discharge summaries, medications, ECGs and most laboratory results.

To view their information online, patients will have to sign up for the offering, called MyHealtheVet. They also will be able to authorize relatives, friends and any physician treating them to access their records, the report said.

Patients also will be able to request corrections or amendments to their records by contacting the VA medical center where their records are maintained. The VA said it eventually plans to electronically exchange data with non-VA physicians and facilities. However, physician use of electronic medical records will have to become more pervasive, and the health care industry will have to adopt uniform clinical data standards, the article said.

The report said VA believes that making records accessible online to patients will improve care and communication between patients and physicians.

Given the size and national reach of the VA, some observers think the VA could help boost industry adoption of online personal health records.

For more info, www.va.gov.

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Report Says EMRs Are Easier To Understand, Than Paper Records

Electronic medical records are easier to understand and contain more complete patient information than paper records, according to a British study.

The study focused on whether paperless records contained less information than paper records, and whether that information was harder to receive.

The study included 53 general practitioners—25 using EMRs and 28 using paper records—who each recorded 10 patient consultations. Eighty-nine percent of the electronic records were fully understandable, compared with 70% of the paper ones. All of the EMRs were legible, compared with 64% of paper records, the study said.

In cases where a physician prescribed drugs, 87% of EMRs and 66% of paper records specified the proper dose. Neither set of doctors could recall a greater proportion of specific patients or consultations, but 39% of physicians who used electronic records could recall advice they gave to patients, compared to 27% of doctors using paper records.

The researchers said they could not conclude that high quality electronic records lead to better clinical care or outcomes, but that good records are essential patient protection and a first step to good clinical decision making.

For more info, www.bjm.com.

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HHS To Support Paperless Medical Records System

HHS has announced two new steps in building an electronic health care system that will allow patients and their doctors to access their complete medical records as needed, leading to reduced medical errors, improved patient care, and reduced health care costs.

HHS Secretary Thompson said HHS has signed an agreement with the College of American Pathologists (CAP) to license the College’s standardized medical vocabulary system and make it available without charge throughout the country. HHS said this action opens the door to establishing a common medical language as a key element in building a unified electronic medical records system.

Secondly, HHS has commissioned the Institute of Medicine to design a standardized model of an electronic health record. The health care standards development organization, known as HL7, has been asked to evaluate the model once it has been designed. HHS will share the standardized model record at no cost with all components of the U.S. health care system, and expects to have a model record ready in 2004, HHS said.

The announcements were part of the ongoing effort to develop the National Health Information Infrastructure by encouraging and facilitating the widespread use of modern information technology to improve the country’s health care system.

HHS estimates that the free system will reduce medical errors and reduce health care costs by about $100 billion per year. However, many health care institutions will need to invest in computers and train staff.

With terms for more than 340,000 medical concepts, the College’s standardized system has been recognized as the world’s most comprehensive clinical terminology database available, the agency said. The licensing agreement with the CAP will make it possible for health care providers, hospitals, insurance companies, public health departments, medical research facilities and others to incorporate this uniform terminology system into their information systems.

The National Library of Medicine (NLM), at the National Institutes of Health will administer the CAP agreement, under a 5-year, $32.4 million contract to the College for a permanent license for their terminology, known as SNOMED (Systematized Nomenclature of Medicine) Clinical Terms. The contract includes a one-time payment-shared by the Departments of Veterans Affairs, Defense, and several HHS agencies—with annual update fees paid by the NLM.

NLM will distribute SNOMED through its Unified Medical Language System, which incorporates, links, and distributes in a common format 100 different biomedical and health vocabularies and classifications.

For more info, www.nlm.nih.gov/research/umls/Snomed/snomed_announcement.html.

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NCQA Issues New HEDIS Measures With Clinical Care, Customer Service

The National Committee for Quality Assurance has unveiled its new edition of measures for how health plans evaluate their own clinical care and customer service.

New measures in the Health Plan Employer Data and Information Set (HEDIS) include those that focus on appropriate antibiotic use (two new measures), colorectal cancer screening for adults age 50-80, chemical dependency (two measures), and customer service, NCQA said.

The accreditation group said it has added 10 new measures. Seven of them address public health issues: the two for antibiotics, two for chemical dependency, colorectal cancer, management of urinary incontinence, and osteoporosis management. Three new measures (claims timeliness, call answer timeliness, and call abandonment) address performance of customer service.

NCQA said that this is the first edition of HEDIS to look at the problem of overuse of medical care and the waste it represents.

A draft measure on cardiac care—outpatient management of heart failure—was dropped from the final version of HEDIS 2004. NCQA said it dropped the measure due to data collection and validity issues.

There are now 60 total HEDIS measures. The new measures will be phased in over the next few years.

For more info, www.ncqa.org/publications.

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Public Hospital Group Backs Hospital Quality Initiative, Urges Participation

The board of the National Association of Public Hospitals and Health Systems (NAPH) formally endorsed The Quality Initiative: A Public Resource on Hospital Performance at its recent meeting, according to the American Hospital Association. Hospitals in the initiative will report performance on quality measures that will be posted on the Internet later this year.

The NAPH, which represents more than 100 public hospitals and health systems, plans to send its members a letter encouraging their participation in the voluntary initiative, along with a pledge form and a packet of information, AHA said.

NAHP joins 30 state associations endorsing the hospital-led effort, according to AHA.

For more info, www.aha.org.

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JCR Calls For Poster Presentations For Ambulatory Care Conference

Joint Commission Resources is seeking proposals for good practice poster presentations at the 8th Annual Ambulatory Care Conference Oct. 9-10.

The theme for 2003 is "Patients First: Enhancing Safety and Minimizing Risk." Those interested in submitting an abstract to the conference planning committee should think broadly on topics such as:

  • Credentialing and Privileging.
  • Implemented Systems to Improve Patient Safety.
  • National Patient Safety Goals.
  • Failure Mode and Effects Analysis.
  • Infection Control.
  • Performance Improvement.

The abstract should include a poster objective, methods, results and conclusions.

Applications must be received by Aug. 15.

One presenter from a selected organization will be given a complementary registration to the 8th Annual Ambulatory Care Conference.

For more info, Alma Harrell, (630) 792-5409; aharrell@jcaho.org.

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CMWF Makes Business Case For Quality Case Studies Available

The Commonwealth Fund has made available six case studies that address the theory of the "business case for quality improvement."

The case studies examine diabetes management programs, group medical appointments, tobacco cessation programs, wellness programs in the workplace, pharmaceutical management, and care based on clinical pathways and outcomes-management programs. All six reports are available from the Health Care Quality page on www.cmwf.org:

"Clinical Pathways and Outcomes Management: Children’s Hospital and Health Center of San Diego"

The Children’s Hospital and Health Center of San Diego (CHSD) has significantly lowered the cost of providing care and slashed the length of hospitalization through measurably increasing its quality outcomes.

Yet, under the current business model of per diem payment, those savings have accrued mostly to insurers and other payers, and the hospital has actually forfeited millions of dollars in annual revenue. The per diem payment structure typical for children’s hospitals (where Medicaid typically becomes the primary payer for chronic conditions) contrasts with the per discharge basis for Medicare; reducing length of stay thereby gives adult hospitals a financial gain, but gives children’s hospitals a financial loss.

For more info, www.cmwf.org/programs/quality/march_physicianorderentry_609.pdf.

"A Corporate Wellness Program: A Case Study Of General Motors And The United Auto Workers Union"

In 1996, General Motors and United Auto Workers launched a corporate wellness program, called LifeSteps, to hold down rising health care costs and improve the health status of workers and their dependents.

There is some evidence that the LifeSteps program has succeeded in slowing the rate of increase in health care costs—by about $42 per person.

For more info, www.cmwf.org/programs/quality/mcglynn_corporatewellness_612.pdf.

"Diabetes Disease Management At Two Managed Care Organizations"

Analysis of two health plans with established diabetes programs shows that the business case for diabetes disease management is weak. The initial costs for such programs are substantial, and plans may not be able to reap the potential savings until 10 years after a health plan member is enrolled in the program.

The authors estimated that net savings under the HealthPartners diabetes management program would be only about $75 per patient. At Independent Health, researchers found that diabetes testing rates and some results improved after the initiation of the plan’s disease management program, but they failed to find proof of substantial short-term medical cost savings attributable to the program.

For more info, www.cmwf.org/programs/quality/beaulieu_diabetesdiseasemanagement_610.pdf.

"Drop-In Group Medical Appointments: A Case Study Of Luther Midlefort Mayo System"

While group medical appointments can increase access to physicians, improve patient satisfaction, and increase physician productivity, a review of the experience of one Wisconsin health system found the model is unprofitable and unpopular with most patients.

For more info, www.cmwf.org/programs/quality/christianson_drop-ingroup_611.pdf.

"Pharmaceutical Management: A Case Study Of Henry Ford Health System"

The Henry Ford Health System experimented with the use of an expensive new drug for treating deep vein thrombosis. Its goal was to prevent or shorten hospitalization for the condition.

The study found that the use of this drug—low molecular weight heparin—can reduce hospitalizations, shorten lengths of stay, and lower overall costs by $800 per patient. In effect, there was a compelling business case for the use of the drug, especially for an integrated health system operating with capitated payments.

The second section examines a lipid clinic created to maximize the benefit of powerful new cholesterol-lowering drugs. The clinic proved effective in helping patients achieve desired level of blood lipids, which may avert a heart attack in the future.

But potential financial savings generated by the clinic probably will not accrue to the Henry Ford system. The report said the clinic was investing to reduce cholesterol levels in patients who probably will not be enrolled in its health plan by the time any averted heart attack would have occurred.

For more info, www.cmwf.org/programs/quality/smits_pharmaceuticalmanagement_613.pdf.

"Tobacco Cessation Programs: A Case Study Of Group Health Cooperative In Seattle"

The report said calculating the cost benefit of smoking cessation programs is a "murky undertaking." If health providers, insurers, and other payers invest in tobacco programs, they do not reap immediate financial savings for delaying the onset of smoking-generated health conditions, the report said.

For more info, www.cmwf.org/programs/quality/march_tobaccocessation_614.pdf.

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