Biomedical subjects

J C Vertrees

Publications and source records attributed to J C Vertrees.

16 recordsLinked to original sources

PubMed2001

Funding and future diagnosis related group development.

PURPOSE: Diagnosis Related Groups (DRGs) are widely used for a variety of purposes including quality improvement, hospital output measurement and funding. DRGs are a patient classification scheme which provides a means of relating the type of patients a hospital treats (i.e., its casemix) to the costs incurred by the hospital. This is done by classifying patients into mutually exclusive groups based on the patient's principal diagnosis and other information. The original Health Care Financing Administration DRGs (HCFA DRGs) have been in use since 1982. This document provides an overview of future directions for the newer DRG systems and it provides a framework for understanding the use of DRGs for funding. FUTURE DIRECTIONS: Newer DRG systems incorporate explicit adjustment for severity of illness, include separate measures for the likelihood of mortality, and are more independent of the underlying coding systems (e.g., ICD-10 for diagnoses, ICD-9-CM for procedures). THE FRAMEWORK: The framework for a casemix-based budgeting system consists of five basic aspects. They are: 1) Categories--which kind of DRG will be the basis for the casemix system; 2) Relative Weights--relative weights reflect the expected cost of a case in one DRG relative to the expected cost of the average patient; 3) Base Rates/Pricing--the base rate converts the relative values to prices or budgets; 4) Adjustments--adjustments account for exogenous factors; 5) Transition Policy--this provides time so hospital administrators can learn to respond to the incentives contained in the DRG system.

Budgets↗

PubMed1996

Prior and current costs in capitated health plans: the effects of health status at enrollment.

We compared the prior and current costs of persons age 65 and older enrolling in a Social/Health Maintenance Organization in each of four sites with samples of persons using standard Medicare benefits in each site. Analyses were adjusted for individual health differences using case mix scores. Costs were examined in the year before S/HMO enrollment or prior to the sampling of a person using regular Medicare services as well as costs during the study. Costs during the study are analyzed using a two-stage procedure where first the propensity to enroll in a S/HMO is modeled and then costs derived from either Medicare sources or shadow prices assigned to service units provided in a S/HMO are modeled. The costs for case mix groups with different health and functional characteristics varied significantly. Cost differences between case mix classes differed between the S/HMO and FFS populations.

Aged↗

PubMed1996

Achieving short-term Medicare savings through the expansion of the prospective payment system.

This article addresses the introduction of competition into the Medicare prospective payment system (PPS), the application of aa expanded PPS to ensure that Medicare is not paying more than the market price for comparable services, the expansion of the Medicare PPS to outpatient services, and the expansion of the Medicare PPS to physician fees for inpatient care.

Ambulatory Care↗

PubMed1995

Evaluating long-term care demonstrations in real time with study design and plan performance interactions.

The evaluation of long-term care demonstrations has to deal with complex organizational entities, with large, heterogeneous client populations that, during the course of study, may have to change features of their organization or operation. The implications of such "real-time" changes are discussed for analyses of the operation and performance of Social/Health Maintenance Organizations over a 5-year period (2 years of start-up and enrollment and 3 years of follow-up). Analyses conducted of the plans in the context of real-time changes have to be based on different statistical models than for classic experimental study designs, where treatment factors are fixed rather than dynamic. A number of issues that may arise are identified, and possible approaches to their solutions described. Key words: long-term care; demonstrations; evaluations; study design; capitation.

Activities of Daily Living↗

PubMed1994

Developing an outpatient prospective payment system based on APGs for the Iowa Medicaid program.

This article describes the development of an outpatient prospective payment system (PPS) based on ambulatory patient groups (APGs) for the Iowa Medicaid Program. Currently, hospitals in Iowa are reimbursed for outpatient services on the basis of cost. Because of concern about escalating costs, the Iowa General Assembly mandated development of a hospital outpatient payment system to promote efficient use of resources and high quality care. The first use of APGs for payment across the full spectrum of services will be a testing ground that should have long term implications for outpatient prospective payment and quality improvement efforts.

Ambulatory Care↗

PubMed1994

A method for adjusting capitation payments to managed care plans using multivariate patterns of health and functioning: the experience of Social/Health Maintenance Organizations.

A multivariate procedure for identifying case-mix dimensions from discrete health variables is presented. Since the dimensions are generated only from health use data and not service use data, they can be used for adjust capitation rates to provide incentives to treat persons not currently well integrated in standard health care system (e.g., very ill persons, the uninsured) or to promote specific health outcomes. The procedure is illustrated with data from Social/Health Maintenance Organizations (S/HMO) since they provide both acute and long-term care (LTC) services. Thus, case-mix measures to adjust S/HMO reimbursements have to represent both medical conditions and the degree, and type, of functional impairment. From 31 health and functioning items, six case-mix dimensions, and scores for individuals on each, were calculated. The multivariate distribution of scores in S/HMO enrollees, and in Medicare eligible, comparison samples, were examined in each site to see how their health differed. S/HMO enrollees were healthier and less frail than persons remaining in the Medicare FFS system. Such differences are important in adjusting capitation rates to provide incentive to accept clients with complex health problems.

Activities of Daily Living↗

PubMed1993

A multivariate analysis of disability and health, and its change over time in the National Channeling Demonstration data.

The Channeling Demonstration examined the effects of case management interventions on a variety of outcomes. In the study, longitudinal data were collected from interviews of cases and controls. A multivariate procedure applied to this data identified groups with specific health profiles. Six profiles described health variation over individuals, and time, according to likelihood ratio statistics. Six sets of life tables were calculated, one for each health profile, to estimate the average duration of service use and the "follow-up" services used. A number of differences, and changes, in service use between the six groups were significant.

Activities of Daily Living↗

PubMed1993

Social/health maintenance organization and fee-for-service health outcomes over time.

Evaluating the performance of long-term care (LTC) demonstrations requires longitudinal assessment of multiple outcomes where selective mortality and disenrollment, if not accounted for, can give the appearance of reduced (or enhanced) efficacy. We assessed outcomes in social/health maintenance organizations (S/HMOs) and Medicare fee-for-service (FFS) care using a multivariate model to estimate active life expectancy (ALE). S/HMO enrollees and samples of FFS clients in four sites were analyzed and outcome differences assessed for a 3-year period. Results provide insights into S/HMO performance under different conditions and, more generally, into evaluating LTC demonstrations without randomized client and control groups.

Activities of Daily Living↗

PubMed1993

Use of Medicare services before and after introduction of the prospective payment system.

OBJECTIVE: The case mix-adjusted pattern of use of health care services, especially posthospital care, is compared before and after the introduction of Medicare's Prospective Payment System (PPS). DATA SOURCES: The 1982 and 1984 National Long Term Care Surveys (NLTCS) linked to Medicare administrative records 1982-1986 provide health and health service use data for 12-month periods before and after the introduction of PPS. STUDY DESIGN: Case-mix differences between pre- and post-periods are controlled by using the Grade of Membership model to identify health groups from the NLTCS data. Differences in timing (e.g., hospital length of stay) were controlled using life table models estimated for each health group, that is, service use patterns pre- and post-PPS are compared within groups. PRINCIPAL FINDINGS: Hospital LOS and admission rates declined post-PPS. Changes in the timing and location of death occurred but, overall, mortality did not increase. Changes in post-acute care service use by elderly, chronically disabled Medicare beneficiaries were observed: home health service use increased overall and among the unmarried disabled population. CONCLUSIONS: PPS did not adversely affect quality of care as reflected in mortality or in hospital readmissions. Moreover, the differential use of post-acute care, and changes in hospital LOS by health group, indicate that the system responded, specific to marital status and age, to the severity of needs of chronically disabled persons.

Age Factors↗

PubMed1990

Changes in health service use and mortality among U.S. elderly in 1980-1986.

Concern has emerged about the impact on quality of care of recent changes in Medicare reimbursement for acute hospital episodes (i.e., the introduction of the Prospective Payment System based on the Diagnosis Related Groups Reimbursement methodology). One aspect of those concerns is that very sick patients would be prematurely discharged to nursing homes in which the high level of medical care required would not be available. This was recently studied in terms of changes between 1981 and 1985 in the location of deaths (e.g., hospital, institutional) reported on U.S. death certificates. We analyzed the death certificate data for a longer period of time (1980 to 1986) and stratified the analysis by both age and cause of death--which we felt were important determinants of location of death. We also examined data from the 1982 and 1984 National Long Term Care Surveys linked to data on Medicare service use. In those analyses we could explicitly identify chronically disabled and institutionalized populations and study death rates in different locations within those populations. Our analyses showed little evidence of increased mortality rates due to premature hospital discharge. There were, however, significant changes in the patterns of service use. More home health agency (HHA) and skilled nursing facility (SNF) services were consumed though the rates of death per episode in those venues declined.

Aged↗

PubMed1990

Functionally and medically defined subgroups of nursing home populations.

The functional and health characteristics of nursing home residents in New York State using a multivariate classification procedure are examined in this article. This analysis suggested that these characteristics could be explained in terms of six dimensions. The association of these six dimensions with two existing sets of nursing home case-mix groups was analyzed in order to determine how groups based only on the health and functional characteristics of residents related to groups based primarily on measures of current service use. A number of resident characteristics were not described well by case-mix measures based only on service use, suggesting the need to modify such groups using additional sources of input.

Activities of Daily Living↗

PubMed1989

Controlling risk in capitation payment. Multivariate definitions of risk groups.

There are a number of different reimbursement strategies proposed for health maintenance organization (HMO) style health care providers. Each of those strategies is designed to leave the provider at risk to provide incentives for him to increase the efficiency of his organization. Many such systems do not include as underwriting factors the medical status of the patient. Failure to include adjustment for the patient's medical status can: 1) leave the provider at risk due to real variation in the mix of the medical needs of the enrolled population (i.e., in areas with a sicker than average patient population, HMOs can fail by simply providing appropriate levels of care) and 2) provide incentives for selective enrollment and disenrollment based on the beneficiaries' medical status to see if such financial loss can be avoided. The authors analyzed two capitation reimbursement scenarios with adjustments for medical status to see if such adverse effects could be avoided while maintaining incentives for efficiency.

Capitation Fee↗

PubMed1989

Case-mix adjusted analyses of service utilization for a Medicaid health insuring organization in Philadelphia.

Health Insuring Organizations (HIOs) are capitated plans that serve all of the Medicaid beneficiaries in a defined catchment area. While this approach to capitation eliminates the incentive to enroll only the healthiest beneficiaries in the area, it does not alleviate concerns that the HIO will respond to the incentives for efficiency created by capitation payment by underproviding services. The authors studied change in service utilization patterns produced by the HIO by using a multivariate strategy to identify case-mix groups at the population level to adjust analyses of hospital and nursing home utilization for case mix. This approach was applied to service utilization data for Medicaid beneficiaries in Philadelphia who received medical services from an HIO and for two control groups. In addition to identifying changes in service use, they evaluated the performance of the HIOs on three dimensions--access to care, quality of care, and the efficiency with which the care was provided. While limitations on the information available in the billing files did not allow definitive statements to be made regarding these issues, case-mix adjusted patterns of service use (and mortality) across sets of service may enable Medicaid programs to identify areas where problems in one of these three critical areas exist. This would allow the program to target its limited utilization and quality review resources toward the areas, types of people, and/or providers where problems in one or more of these areas are more likely.

Actuarial Analysis↗

PubMed1989

Cost effectiveness of home and community-based care.

Medicaid section 2176 waivers allow States to provide home and community-based care to Medicaid eligibles who, but for these services, would enter Medicaid-funded nursing homes. One of the conditions required by Congress for granting these waivers is that this substitution results in no additional Medicaid spending (budget neutrality). The results of case studies of two of these waiver programs, one in California and one in Georgia, are presented in this article. The case studies contain a description of the operation of these programs in some detail. Next, the data and techniques needed to assess the ability of these programs to achieve budget neutrality are presented, and the performance of these programs along this dimension is evaluated.

Activities of Daily Living↗

PubMed1986

A multivariate approach for classifying hospitals and computing blended payment rates.

Prospective payment for inpatient hospital care is based on the ideal that hospitals that produce similar outputs, as measured by the types of cases the hospital treats, should be paid similar prices. However, similar output is a multidimensional concept. Thus operationalization of this ideal will ultimately require a more complex framework for determining hospital payment rates than currently employed at either the federal or state level. This article illustrates a multidimensional approach to achieve this objective. This technique, called Grade of Membership, is used to generate a unique type of hospital group and to characterize individual hospitals in terms of their degree of similarity to these groups. In addition, a new concept of grouping is described, a variable set based on hospitals' internal cost structure is developed and used, and ordinary least squares regression is employed to compute prices for these groups. With the use of simulation analysis, these groups are compared with more conventional groups.

Costs and Cost Analysis↗

PubMed1984

The use of Grade of Membership analysis to evaluate and modify diagnosis-related groups.

A classification methodology is presented that can be used to evaluate the heterogeneity of reimbursement categories and service groups in multivariate terms. This methodology, called Grade of Membership analysis, has several properties that are particularly important in such assessments. First, simultaneously with the determination of the multivariate profile of characteristics that describe a group, the methodology determines the degree to which each case is described by that profile, which means that the model can explicitly represent the heterogeneity of individual cases in any derived classification scheme. Second, the estimates of the model's parameters are produced by maximum likelihood procedures; hence, the classification and group descriptions generated by the model can be statistically evaluated. Third, because of the way the group profiles are constructed, the results of the analysis will be reasonably robust to the selection of new samples. The analysis is illustrated using data on hospital discharges for the state of Maryland in 1981. The purpose of the analysis is to examine the association between the patterns of clinical and service attributes identified by the procedures with DRG category assignments.

Aged↗