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Self-funding for employee health plans.

In today's environment of increasing pressures to contain costs, hospital management is faced with the need to identify all potential areas of cost savings. Self-funding of employee health care benefits appears to be one such area: this approach should enable the hospital to control its health plan and allow cash flow to work to its advantage. Further advantages may accrue to the hospital which elects to self-fund its employee health plan should a group of hospitals purchase reinsurance together. SCHA members have enjoyed similar advantages through pooled arrangements in purchasing other employee benefit plans. A series of regional meetings conducted during the fall of 1980 provided a forum for discussion of self-funding alternatives by administrators, chief financial officers, and personnel directors. As a result of these meetings, hospital management is better equipped to monitor, evaluate, and consider alternatives to their present employee health plans. And SCHA, through its committee structure, is continuing to explore self-funding of employee health care benefits as a potential area of cost savings.

Health Benefit Plans, Employee↗

Allocating health resources ethically: new roles for administrators and clinicians.

Rationing of health care is an inevitable correlate of living in a world of finite resources. It is morally necessary. The Hippocratic ethic commits clinicians to do whatever will benefit the patient and therefore must be abandoned in a world of moral rationing. After looking at some unacceptable preliminary strategies, two patient-centered adjustments in the Hippocratic ethic, adopting a more objective standard of patient benefit and adding a principle of patient autonomy, are defended. Still, however, cutting the fat out of the system will not be sufficient. A true social ethic of resource allocation will be necessary. A social contract approach supports a principle of equity as a necessary supplement to utility and cost-benefit analysis. It does not follow, however, that clinicians must take on these social ethical decisions. Clinicians should be exempt from normal social ethics so they are free to pursue the objective welfare of patients (provided they consent to such benefit). Administrators are in no better position to allocate scarce resources. What is needed is input from patients to (a) set categorical limits on their own care, (b) articulate principles for fine-tuning the allocation decisions, and (c) supervise professional agents who will make specific gatekeeping decisions for allocating a pool of resources legitimately thought to belong to the patient population. Neither administrators nor clinicians will be responsible for rationing decisions. In 1989 we spent $604.1 billion on health (U.S. Department of Health and Human Services 1990). That is almost $2 billion a day. Sometimes the benefits are dramatic: the pneumonia cured, the heart transplanted, the children spared from infectious diseases with immunizations that cost only pennies. Even so, the American health care system leaves much to be desired. Many other countries have higher life expectancy at birth. Infant mortality in the United States is far higher than countries like Japan and Sweden (United Nations Children's Fund 1990). If we look at the distribution of health status in the United States, the problems look even worse. Today, depending on the study, about 13 to 15 percent of the population has no health insurance at all (U.S. Bureau of the Census 1989; Short, Monheit, and Beauregard 1989). Another 13 percent is woefully underinsured (Farley 1985). Social variables such as income, education, and race reveal dramatically different health status (Short, Monheit, and Beauregard 1989; Farley 1985). To respond to these needs, rationing will be essential.(ABSTRACT TRUNCATED AT 400 WORDS)

Cost Control↗

[Injuries to the cervical spine in automobile accidents].

Despite the improvement of protective properties in vehicles acceleration injuries to the cervical spine have not lost their significance. The increase of minor injuries and a high rate of seat belt usage is, beside other reasons, responsible for the increase of mild cervical spine injuries. From a data pool of 15,000 vehicle-vehicle collisions the portion of cervical spine injuries was selected for further investigation. Acceleration injuries to the cervical spine occur especially during rear end collisions. It can be shown that women, front seat occupants and occupants of lighter vehicles have a higher risk of suffering from such injuries. More than 90% of cervical spine injured had mild injuries by AIS standards; the portion of injuries with fractures was 0.6%. The diagnosis "wiplash injury" or "acceleration injury to the cervical spine" was given in more than 30% of all cervical spine injured showing only 1 symptom. Although most patients are first being treated in a hospital only 2/3 from 744 detailed studied cases were x-rayed, which in 71% were without significant conditions. Additional instrumental diagnostic measures (CT, MR) were used in only 1%. The study indicates that the "acceleration injury" requires a critical verification by doctors and insurers. A detailed finding following a thorough history taking and, in case, an interdisciplinary definition of accident injuries an early point of time will certain the diagnosis and facilitate therapy and judgement.

Acceleration↗

Serum micronutrients and risk of cancers of low incidence in Finland.

The associations between serum alpha-tocopherol, beta-carotene, retinol, retinol-binding protein, and selenium levels and the subsequent occurrence of different cancers of low incidence were investigated in a nested case-control study of 39,268 men and women participating in the Social Insurance Institution's Mobile Clinic Health Examination Survey in Finland. During follow-up from the baseline in 1968-1972 to the end of 1977, a total of 115 cancers of the lip, oral cavity, pharynx, larynx, esophagus, liver, gallbladder, kidney, urinary bladder, brain, and skin were reported to the nationwide Finnish Cancer Registry. Alpha-tocopherol, beta-carotene, retinol, retinol-binding protein, and selenium concentrations were determined from stored serum samples collected from these cancer cases and matched controls at baseline. Several sites indicated an elevated risk of cancer at low levels of the serum variables, although only a few of these associations were statistically significant. Only melanoma patients had significantly lower serum alpha-tocopherol and beta-carotene levels than corresponding controls. Since the numbers of cancer cases were small, no firm conclusions can be drawn from these results until they have been confirmed in studies based on larger cohorts or on pooled data from several small samples.

Adult↗

Integrated patient data for optimal patient management: the value of laboratory data in quality improvement.

Managed care organizations are shifting from traditional utilization management programs to focus on initiatives that improve the health of an insured population. This strategy requires sophisticated data integration to identify at-risk individuals and track outcomes. Laboratory data are becoming increasingly valuable tools for managed care organizations and healthcare providers. The HEDIS Effectiveness of Care measures have incorporated laboratory data into several key performance indicators. By building a comprehensive repository of laboratory data that includes both procedure codes and laboratory values, managed care organizations can realize substantial savings by avoiding the costly medical record reviews required when administrative data are incomplete. In addition to tracking clinical outcomes, laboratory data provide the ability to risk-stratify a population to target high-risk individuals for case management and disease management interventions. Healthcare organizations face several challenges in the integration of laboratory data into medical databases and practice management software. Confidentiality is a key consideration in view of recent healthcare regulations. Providers of laboratory services should work collaboratively with organizations setting standards for healthcare informatics to facilitate the pooling of data for quality improvement and outcomes research. Health Level Seven, Inc. (HL7), Logical Observation Identifier Names and Codes (LOINC), and Systematized Nomenclature of Medicine (SNOMED) will likely play a key role in this process.

Clinical Laboratory Techniques↗

Identification of in-hospital complications from claims data. Is it valid?

OBJECTIVES: This study examined the validity of the Complications Screening Program (CSP) by testing whether (1) ICD-9-CM codes used to identify a complication are coded completely and accurately and (2) the CSP algorithm successfully separates conditions present on admission from those occurring in the hospital. METHODS: We compared diagnosis and procedure codes contained in the Medicare claim with codes abstracted from an independent re-review of more than 1,200 medical records from Connecticut and California. RESULTS: Eighty-nine percent of the surgical cases and 84% of the medical cases had their CSP trigger codes corroborated by re-review of the medical record. For 13% of the surgical cases and 58% of the medical cases, the condition represented by the code was judged to be present on admission rather than occurring in-hospital. The positive predictive value of the claim was greater than 80% for the surgical risk pool, suggesting the value of the CSP as a screening tool. CONCLUSIONS: The CSP has validity as a screen for most surgical complications but only for 1 medical complication. The CSP does not have validity as a "stand-alone" tool to identify more than a few in-hospital surgery-related events. The addition of an indicator to the Medicare claim to capture the timing of secondary diagnoses would improve the validity of the CSP for identifying both surgical and medical in-hospital events.

Aged↗

Strategies for recruitment to a population-based lung cancer prevention trial: the CARET experience with heavy smokers. Beta-Carotene and Retinol Efficacy Trial.

The Beta-Carotene and Retinol Efficacy Trial tested the effect of the combination of beta-carotene (30 mg) and retinyl palmitate (25,000 units) daily on the incidence of lung cancer in high-risk individuals. In study centers located in Seattle, WA; Portland, OR; and Irvine, CA, we recruited current and recent ex-cigarette smokers, aged 50-69 years. Our primary method of recruitment was by mailing study information and eligibility questionnaires to age-selected health insurance subscribers. A total of 1,216,549 subscriber households were contacted, which resulted in 16,449 enrollments and 12,184 randomizations. Other methods of recruitment yielded 1421 enrollments and 1002 randomizations. Seventy-four % of those participants who enrolled in the 3-month placebo run-in were randomized. The major reasons for nonrandomization once subjects were enrolled were: becoming ineligible (13%), concern about or development of side effects attributed to the study vitamins (18%), loss of interest or being too busy (23%), and not showing up at the appointed time or not willing to come to the study center (23%). Here, we discuss the reasons for nonparticipation and for subjects leaving the trial prior to randomization and possible modifications of trial design and procedures to address these problems. This recruitment approach provided a constant flow of potentially eligible participants, screened out many ineligible and uninterested persons prior to the scheduling of a study center visit, and ensured randomization of committed participants. A major limitation of this study was that the pool of minorities that was reached was small.

Aged↗

Health care for the indigent: overview of critical issues.

Health care for the indigent is a major problem in the United States. This review of the literature on health care for the indigent was undertaken to determine which major questions remain unresolved. Overall, this article finds that a very large pool of individuals under age 65 are at risk of being medically indigent. A myriad of health programs for some economically disadvantaged individuals do exist, but their level of funding has fluctuated over time--and many poor individuals must rely entirely on the generosity of a relatively small number of hospitals and other providers for their care. Economic pressures on these providers as well as structural changes in the health care sector can only adversely affect the amount of charity care that they offer. It is clear that a well-planned solution to indigent care in the United States, rather than a piecemeal approach, is needed.

Financing, Government↗

Cost-utility of the cochlear implant in adults: a meta-analysis.

OBJECTIVE: To conduct a meta-analysis of the cost-utility of the cochlear implant in adults. DATA SOURCES: MEDLINE literature search, review of article bibliographies, and consultation with experts. STUDY SELECTION: Studies that reported (1) data on adults (age > or = 18 years) with bilateral, postlingual, profound deafness; (2) a health-utility gain from cochlear implantation on a scale from 0.00 (death) to 1.00 (perfect health); (3) a cost-utility ratio in terms of dollars per quality-adjusted life-year (QALY); and (4) at least 1 conventional statistical parameter (ie, SD, 95% confidence interval [CI], or P value). DATA EXTRACTION: From each study, we extracted the number of subjects, study design, health-utility instrument used, health-utility associated with profound deafness, health-utility gain from cochlear implantation, cost-utility of cochlear implantation, and reported statistical parameters. DATA SYNTHESIS: Weighted averages were calculated using a statistical weight of 1 per variance. Pooling 9 reports (n = 619), the health-utility of profoundly deaf adults without cochlear implants was 0.54 (95% CI, 0.52-0.56). Pooling 7 studies (n = 511), the health-utility of profoundly deaf adults after cochlear implantation was 0.80 (95% CI, 0.78-0.82). This improvement of 0.26 in health-utility resulted in a cost-utility ratio of $12,787 per QALY. CONCLUSIONS: Profound deafness in adults results in a substantial health-utility loss. Over half of that loss is restored after cochlear implantation, yielding a cost-utility ratio of $12,787 per QALY. This figure compares favorably with medical and surgical interventions that are commonly covered by third-party payers in the United States today.

Adult↗

Payments for care at private for-profit and private not-for-profit hospitals: a systematic review and meta-analysis.

BACKGROUND: It has been shown that patients cared for at private for-profit hospitals have higher risk-adjusted mortality rates than those cared for at private not-for-profit hospitals. Uncertainty remains, however, about the economic implications of these forms of health care delivery. Since some policy-makers might still consider for-profit health care if expenditure savings were sufficiently large, we undertook a systematic review and meta-analysis to compare payments for care at private for-profit and private not-for-profit hospitals. METHODS: We used 6 search strategies to identify published and unpublished observational studies that directly compared the payments for care at private for-profit and private not-for-profit hospitals. We masked the study results before teams of 2 reviewers independently evaluated the eligibility of all studies. We confirmed data or obtained additional data from all but 1 author. For each study, we calculated the payments for care at private for-profit hospitals relative to private not-for-profit hospitals and pooled the results using a random effects model. RESULTS: Eight observational studies, involving more than 350 000 patients altogether and a median of 324 hospitals each, fulfilled our eligibility criteria. In 5 of 6 studies showing higher payments for care at private for-profit hospitals, the difference was statistically significant; in 1 of 2 studies showing higher payments for care at private not-for-profit hospitals, the difference was statistically significant. The pooled estimate demonstrated that private for-profit hospitals were associated with higher payments for care (relative payments for care 1.19, 95% confidence interval 1.07-1.33, p = 0.001). INTERPRETATION: Private for-profit hospitals result in higher payments for care than private not-for-profit hospitals. Evidence strongly supports a policy of not-for-profit health care delivery at the hospital level.

Canada↗

Hospital management: integrating the dual hierarchy?

Traditionally, hospitals are seen as dual hierarchies: in addition to the formal administrative pyramid, the professional medical system forms a second line of authority. Equally traditional, this poses substantial problems for hospital management. The present study reported in this article took place as part of a larger research project on Industrial Democracy in Europe (IDE-2), aimed at studying changes in industrial relations and internal relations in metal and insurance companies. In the Netherlands, this project was enlarged to include hospitals. A number of significant changes have taken place in the past decade in Dutch general hospitals. As a reaction to environmental changes, e.g. in legislation, planning and financing, organizational structures have shown interesting developments. Examples are an increased hospital size due to mergers, the emergence of mid-level management, divisionalization (inpatient vs outpatient wards), and integration of medical specialists in the organization. As a result, several changes in power positions have occurred, mainly at the strategic decision level: middle and top management have gained while the medical profession has lost some influence. The Works Council has established its position, and made a significant gain in influence on strategic decision making.

Decision Making, Organizational↗

An aggregate accident model based on pooled, regional time-series data.

The determinants of personal injury road accidents and their severity are studied by means of generalized Poisson regression models estimated on the basis of combined cross-section/time-series data. Monthly data have been assembled for 18 Norwegian counties (every county but one), covering the period from January 1974 until December 1986. A rather wide range of potential explanatory factors are taken into account, including road use (exposure), weather, daylight, traffic density, road investment and maintenance expenditure, accident reporting routines, vehicle inspection, law enforcement, seat belt usage, proportion of inexperienced drivers, and alcohol sales. Separate probability models are estimated for the number of personal injury accidents, fatal accidents, injury victims, death victims, car occupants injured, and bicyclists and pedestrians injured. The fraction of personal injury accidents that are fatal is interpreted as an average severity measure and studied by means of a binomial logit model.

Accidents, Traffic↗

Barriers to the care of persons with dual diagnoses: organizational and financing issues.

Among the frustrations of managing the dual disorders of chronic mental illness and alcohol and drug abuse is the fact that knowing what to do (by way of special programming) is insufficient to address the problem. The system problems are at least as intractable as the chronic illnesses themselves. Organizing and financing care of patients with comorbities is complicated. At issue are the ways in which we administer mental health and alcohol and drug treatment as well as finance that care. Separate administrative divisions and funding pools, while appropriate for political expediency, visibility, and administrative efficiency, have compounded the problems inherent in serving persons with multiple disabilities. Arbitrary service divisions and categorical boundaries at the State level prevent local governments and programs from organizing joint projects or creatively managing patients across service boundaries. When patients cannot adapt to the way services are organized, we risk reinforcing their overutilization of inpatient and emergency services, which are ineffective mechanisms for delivering the care these patients need. This article reviews the barriers in organization and financing of care (categoric and third party financing, including the special problem of diagnosis-related groups limitations) and proposes strategies to enhance the delivery of appropriate treatment.

Alcoholism↗

A health investment that may save your life.

Breast cancer need not continue to be the devastating, deadly disease it has been in the past. With early detection, there is a higher rate of cure. There are three components to good breast health. These include (a) annual physical exam by a physician, (b) mammography according to the prescribed guidelines, and (c) monthly breast self-examination (BSE). When a woman does all three of these things, she's doing everything she can to insure early detection of breast cancer. This article discusses location, description, and characteristics of tumors. It also includes a teaching protocol developed for Midwest Breast Care Center in St. Louis, Missouri by the writer that includes risk factors, signs, and symptoms of breast cancer. It also includes new, comprehensive examination techniques set forth by the University of Texas System Cancer Center M. D. Anderson Cancer Center. The protocol is set up in a step-by-step format for easier teaching and learning. New, more thorough examination techniques have also been established at M. D. Anderson for the woman who has had a mastectomy and needs to examine the surgical site each month as well as her remaining breast. The article encourages women to take responsibility for their breast health and wellness.

Breast Neoplasms↗

Bridges, pathways and valleys: labour market position and risk of hospitalization in a Swedish sample aged 55-63.

BACKGROUND: The combination of population ageing and increasingly early labour market exit (LME) throughout Europe has made older age a key issue in social policy and research. There is increasing awareness that older people are a heterogeneous group in which health inequalities persist. However, the effects of different types of LME on health have received relatively little attention. Existing studies reach different conclusions. This might be due to several reasons: different types of LME are rarely explored in conjuncture; studies often lack objective assessments of health and frequently rely on small populations. This paper aims to test the relative effects of different LME on the risk of hospitalization compared with those who remained in paid employment. METHODS: Using Government register data on pooled cross-section samples of Swedish workers aged 55-63 years (n=7,024) the authors have compared the likelihood of hospitalization for three types of LME - disability pension (fortidpension), unemployment, and early retirement - with those who continue working. RESULTS: Controlling for previous hospitalization, sex, age, social class, and health at work a significant increased risk of hospitalization was found following LME for the unemployed (OR=1.98). CONCLUSION: Early LME is a varied process with mixed effects on health, and hence is of possible importance for policy, which, therefore, requires more attention. Programmes to help older unemployed workers back into work will have positive health effects for individuals and reduce welfare costs of hospitalization.

Age Factors↗

[Chronic whiplash syndrome--an overview].

In some countries a seemingly large number of patients suffer from chronic whiplash syndrome, whereas in other countries whiplash is not known or is considered to give only moderate symptoms over a brief period of time. In this paper, this discrepancy is accounted for by a biopsychosocial model, a central element of which is the existence of a large pool of spontaneously occurring symptoms in the population, among them head and neck pain. By the mechanisms of attribution, expectation ("nocebo") and reinforcement, common symptoms may be experienced by the patient as caused exclusively by a mild or moderate trauma. Inappropriate behaviour and harmful treatment may worsen and prolong symptoms. To this one should add the effects of conscious exaggeration of symptoms, under-performance in neuropsychological testing, and underreporting of pre-accident symptoms in a medico-legal context. When assessing litigation claims, it is emphasised that a causal relation between common whiplash injuries and chronic complaints has not been demonstrated; a causal relationship can be accepted in exceptional cases only if a set of minimal criteria are fulfilled.

Accidents, Traffic↗

Enrollee health status under Medicare risk contracts: an analysis of mortality rates.

Previous studies comparing the health status of Medicare beneficiaries enrolled under HMO risk contracts to that of Medicare beneficiaries in fee-for-service (FFS) have generally focused on demonstration projects conducted before 1985. This study examines mortality rates in 1987 for approximately 1 million aged Medicare beneficiaries enrolled in 108 HMOs. We estimated adjusted mortality ratios (AMR) for each HMO and across all HMOs, by dividing the actual number of deaths among HMO enrollees by the "expected" number of deaths. The expected number of deaths was based on death rates among local FFS populations, adjusting for age, sex, Medicaid buy-in status, and institutional status. The AMR for all HMO enrollees pooled together was 0.80. For persons newly enrolled in 1987, the AMR was 0.69; in general, AMRs were higher for beneficiaries who had been enrolled for longer periods of time. Among individual HMOs, none exhibited an AMR substantially above 1.00. Regression analysis indicated lower AMRs for staff model HMOs than for either IPA or group models. Low mortality among Medicare HMO enrollees is consistent with favorable selection or with improvements in the health status of enrollees due to better access or quality of care in HMOs. In either case, health status differences between HMO enrollees and FFS beneficiaries have implications for the appropriateness of Medicare's Adjusted Average Per Capita Cost (AAPCC) payment formula for HMOs.

Aged↗

Healthcare financing systems for increasing the use of tobacco dependence treatment.

BACKGROUND: Smoking cessation treatment increases the number of successful quitters compared with unaided attempts to quit. However, only a small proportion of people who smoke take up treatment. One way to increase the use of smoking cessation treatment might be to give financial support through healthcare systems. OBJECTIVES: The primary objective of this review was to assess the effect of using healthcare financing interventions to reduce the costs of providing or using smoking cessation treatment on abstinence from smoking. SEARCH STRATEGY: Eligible studies were identified by a search of the Cochrane Tobacco Addiction group specialized register, the Cochrane Central Register of Controlled Trials (CENTRAL) Issue 3, 2003, MEDLINE (from January 1966 to August 2003) and EMBASE (from January 1980 to October 2003), screening references of relevant reviews and studies, and contacting experts in the field. SELECTION CRITERIA: We included randomized controlled trials (RCTs), controlled trials (CTs) and interrupted time series (ITS) in which the study population consisted of smokers or healthcare providers or both. DATA COLLECTION AND ANALYSIS: Two reviewers independently extracted data and assessed the quality of the included studies. We calculated odds ratios (ORs) and risk differences (RDs) for the individual studies and performed meta-analysis using a random-effects model. We included economic evaluations when a study presented the costs and effects of two or more alternatives. MAIN RESULTS: Four RCTs and two CTs were directed at smokers. Five studies compared the effect of a full benefit with no benefit of which four reported the prolonged self-reported abstinence rate and showed an increase of 2% (95% confidence interval [CI] 0.00 to 0.05). The pooled OR for achieving abstinence for a period of six months was 1.48 (95% 1.17 to 1.88). Two studies directed at smokers compared a full benefit with a partial benefit and showed that the odds of being abstinent were 2.49 times higher with a full benefit (95% CI 1.59 to 3.90). The pooled RD showed a non-significant increase (RD 0.05; 95% CI -0.07 to 0.16). Only one study compared a partial benefit with no benefit and only one study was directed at healthcare providers. When a full benefit was compared with a partial or no benefit, the costs per quitter varied between $260 and $2330. AUTHORS' CONCLUSIONS: There is some evidence that healthcare financing systems directed at smokers which offer a full financial benefit can increase the self-reported prolonged abstinence rates at relatively low costs when compared with a partial or no benefit. Since there were some limitations to the methodological quality of the studies the results should be interpreted with caution. More studies are needed on the effects of healthcare financing systems directed at healthcare providers.

Cost-Benefit Analysis↗