UCSF-Stanford health-care merger to create value for academic medicine.
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Biomedical subjects
Publications and source records attributed to P Van Etten.
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Diagnostic Related Groups (DRGs) represent a paradox. On the one hand, they lack clinical meaningfulness, particularly in regard to cancer patients. DRG 403, which includes patients diagnosed than 69 and/or complications or comorbidities, is particularly inadequate as a tool to group together homogeneous patients. On the other hand, the practice of classifying similar patients into clinically meaningful groups represents a potentially valuable new tool for providing cost-effective patient care.
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The approach of the New England Medical Center toward case management and increased productivity, and the role of the pharmacy within this system, are described by a chief hospital administrator. External pressures that caused the hospital to alter its management style included changes in reimbursement, hospital overuse, increased competition, and a surplus of physicians. Variations in medical practice that affected admission rates, length of stay, and use of ancillary services existed because clinical and financial data had not been integrated, so clinicians had no information on the economic consequences of their decisions. The solution offered to this problem was to decentralize resource-use decisions to increase clinician accountability. The goal of the case-management system is to reduce the cost of intermediate product (e.g., laboratory tests) use through increased productivity. The system provides pharmacy with a new power base if pharmacists can reduce overall costs by influencing prescribers to use cost-effective therapies. Pharmacy can increase its influence within the institution by forming new relationships with administrators, physicians, and nurses that broaden its impact on cost.
Many academic medical centers (AMCs) throughout the United States have established their own community-based integrated delivery systems by purchasing physician groups and hospitals. Other AMCs have merged with existing nonprofit community-based delivery systems. Still other AMCs have been sold to for-profit firms. The AMCs at Stanford and the University of California, San Francisco (UCSF), chose a different strategy: to merge with each other to respond to the unique characteristics of the Bay Area marketplace.
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