• Patient centered medical home fails to deliver

    First the study:

    Importance  Interventions to transform primary care practices into medical homes are increasingly common, but their effectiveness in improving quality and containing costs is unclear.

    Objective  To measure associations between participation in the Southeastern Pennsylvania Chronic Care Initiative, one of the earliest and largest multipayer medical home pilots conducted in the United States, and changes in the quality, utilization, and costs of care.

    Design, Setting, and Participants  Thirty-two volunteering primary care practices participated in the pilot (conducted from June 1, 2008, to May 31, 2011). We surveyed pilot practices to compare their structural capabilities at the pilot’s beginning and end. Using claims data from 4 participating health plans, we compared changes (in each year, relative to before the intervention) in the quality, utilization, and costs of care delivered to 64 243 patients who were attributed to pilot practices and 55 959 patients attributed to 29 comparison practices (selected for size, specialty, and location similar to pilot practices) using a difference-in-differences design.

    Exposures  Pilot practices received disease registries and technical assistance and could earn bonus payments for achieving patient-centered medical home recognition by the National Committee for Quality Assurance (NCQA).

    Main Outcomes and Measures  Practice structural capabilities; performance on 11 quality measures for diabetes, asthma, and preventive care; utilization of hospital, emergency department, and ambulatory care; standardized costs of care.

    Results  Pilot practices successfully achieved NCQA recognition and adopted new structural capabilities such as registries to identify patients overdue for chronic disease services. Pilot participation was associated with statistically significantly greater performance improvement, relative to comparison practices, on 1 of 11 investigated quality measures: nephropathy screening in diabetes (adjusted performance of 82.7% vs 71.7% by year 3, P < .001). Pilot participation was not associated with statistically significant changes in utilization or costs of care. Pilot practices accumulated average bonuses of $92 000 per primary care physician during the 3-year intervention.

    Bottom line: the patient centered medical home failed to make improvements in 10 of 11 quality measures in three years, and it didn’t reduce utilization or costs. But the accompanying editorial is what you want to read:

    This problem may be similar to that of expensive biomedical technologies that often are proven to have benefit in high-risk patient populations but then are inappropriately exported to broad, community-based, low-risk populations for which they fail. The same error may be occurring with the PCMH, a different type of expensive technology. The PCMH has been promoted for widespread adoption, using a fairly generic and fixed set of structural practice features, even before being fully developed in targeted high-risk populations or before clearly understanding which features or combination of features are most effective with which patients. It is time to replace enthusiasm and promotion with scientific rigor and prudence and to better understand what the PCMH is and is not. Widespread implementation of the PCMH with limited data may lead to failure.

    The critical characteristic of the US health care system that defines how the PCMH will best be deployed is the skewed distribution of health care utilization across the population. Nearly a quarter of all medical care is consumed by 1% of the patient population, nearly half by just 5%. The healthy half of the population uses nearly no medical care and therefore has essentially no opportunity to benefit from any restructuring of health care delivery, however robust. The methods by which health care is delivered need to be adjusted similarly to how health care is utilized. Insurers, both private and government, and employers should be providing substantial support to health service investigators and primary care physicians to assess and then implement features of the PCMH that work best for different strata of patient risk and health care utilization, but with a particular focus on the most expensive and complex patients. The identification of target populations should not be defined by disease, as was the case with failed disease management programs of the past that focused on a single disease, but by the simple measures of utilization and cost. This approach can be linked with other aspects of health care reform, such as accountable care organizations, in which both primary care and specialty physicians are held jointly accountable for cost and outcomes.

    We keep assuming that the health care system will improve things for everyone. Even the OHIE was guilty of this misconception. We need to get better about realizing that not everyone needs the same thing, and that not all interventions are necessary for all patients.

    You really should go read the whole thing.

    @aaronecarroll

     
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  • Choosing more expensive drugs when cheaper ones exist

    Long read in WaPo this weekend on drug choices:

    The two drugs have been declared equivalently miraculous. Tested side by side in six major trials, both prevent blindness in a common old-age affliction. Biologically, they are cousins. They’re even made by the same company.

    But one holds a clear price advantage.

    Avastin costs about $50 per injection.

    Lucentis costs about $2,000 per injection.

    Doctors choose the more expensive drug more than half a million times every year, a choice that costs the Medicare program, the largest single customer, an extra $1 billion or more annually.

    Spending that much may make little sense for a country burdened by ever-
    rising health bills, but as is often the case in American health care, there is a certain economic logic: Doctors and drugmakers profit when more-costly treatments are adopted.

    Genentech, a division of the Roche Group, makes both products but reaps far more profit when it sells the more expensive drug. Although Lucentis is about 40 times as expensive as Avastin to buy, the cost of producing the two drugs is similar, according to scientists familiar with the drugs and the industry.

    Doctors, meanwhile, may benefit when they choose the more expensive drug. Under Medicare repayment rules for drugs given by physicians, they are reimbursed for the average price of the drug plus 6 percent. That means a drug with a higher price may be easier to sell to doctors than a cheaper one. In addition, Genentech offers rebates to doctors who use large volumes of the more expensive drug.

    Kudos to Peter Whoriskey and Dan Keating for recognizing that physicians are part of the problem here. You really should go read the whole thing.

    @aaronecarroll

     
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  • Quote: Best in the world my ass

    Politicians say a lot of dumb things, but perhaps the dumbest thing they say is that the U.S. has “the finest health care system in the world.” Senate Minority Leader Mitch McConnell (R-Ky.) said that in 2012, echoing a common Republican talking point in opposition to health care reform.

    No. Stop saying this. The American health care system sucks.

    We spend about twice as much money per person as our peer countries to achieve roughly the same health care outcomes — and despite all that spending, 48 million people in America lack health insurance coverage.

    and

    But the real problem with Obamacare is that it does not change the American health care system enough in the direction of other countries’ systems. Republicans are wrong to warn that Obamacare will turn America’s health care system into a European-style one. I wish they were right.

    Josh Barro, Business Insider

    @aaronecarroll

     
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  • Chart: Cost of cancer drugs

    Yesterday I encouraged you to read the NY Magazine piece by Stephen Hall on the cost of cancer drugs. If you haven’t read it yet, you should, and all the way to the end. It’s that good.

    In it, Hall describes a chart that illustrates the rising cost of pharmacological cancer treatment. He should have just posted it. You’ll find it on the Sloan-Kettering website or right here:

    cancer drug cost

    The Sloan-Kettering site has links to related reports and papers, so go check them out. I thank Peter Bach and Geoffrey Schnorr at S-K for helping me find the chart.

    @afrakt

     
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  • Why Are American Health Care Costs So High? – the movie!

    Twitter brought me this gem this evening. It’s made by John Green, who is a New York Times bestselling author, and who also – it turns out – lives in Indianapolis. TIE readers will recognize many of the facts, as well as the charts.

    Enjoy!

    @aaronecarroll

     
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  • Who’s responsible for controlling health care costs?

    That’s the question that a recent study in JAMA asked doctors. “Views of US Physicians About Controlling Health Care Costs“:

    Importance  Physicians’ views about health care costs are germane to pending policy reforms.

    Objective  To assess physicians’ attitudes toward and perceived role in addressing health care costs.

    Design, Setting, and Participants  A cross-sectional survey mailed in 2012 to 3897 US physicians randomly selected from the AMA Masterfile.

    Main Outcomes and Measures  Enthusiasm for 17 cost-containment strategies and agreement with an 11-measure cost-consciousness scale.

    So who do docs think is responsible? Evidently, everyone but them. Those who have a “major” responsibility for lowering health care costs included trial lawyers (60%), insurance companies (59%), hospitals and health systems (56%), drug and device companies(56%), and, of course,  patients (52%). Only about a third of them thought they they themselves has a “major” responsibility. Lots of them approve of quality initiatives to reduce cost, but almost none (7%) thought that getting rid of fee-for-service reimbursement was a good idea.

    Ezekiel Emanuel and Andrew Steinmetz, who wrote an editorial on this study, noted something important:

    These attitudes, however, have an interesting character: while supporting cost-consciousness in health care, they largely relieve the physician from being the decision-maker and taking responsibility for cost control. Someone outside—either insurance companies, a government board, or some organization determining cost-effectiveness ratios—would bear the responsibility for bringing cost into the health care equation. This would allow physicians to point to someone else doing the resource allocation and cost control.

    One of the reasons I’ve often supported “more” government involvement is that someone has to be the “bad guy” at some point. Physicians, amongst others, often don’t want to do that. But sometimes, someone has to say “no”.

    Both the study and the editorial are worth your time.

    @aaronecarroll

     
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  • What does California show?

    A number of you have written me in the last few minutes to shout that everyone is wrong about California. Some of you are charging that a healthy 25 year old, rates have gone up more than 100%. I have a number of comments:

    1. A healthy 25 year old could have the option of remaining on their parents’ family plan. Sure, that’s not for everyone, but if you’re a low income young adult, it’s totally a viable option for many. So it’s an odd example.
    2. It’s possible that a completely healthy person out there can find a plan for cheaper than the exchanges, but I’m doubtful it’s as comprehensive. One of the things the ACA does is mandate minimum benefits, do away with annual and lifetime limits, etc. Deal with it. Attack that if you like. But don’t pretend that it’s a “RATE INCREASE!” comparing apples to apples. Crappy insurance is cheap. Good insurance is not.
    3. These arguments always ignore the subsidies. Many, many people won’t pay the full sticker price of the premium. So even if the premium goes up, the actual cost to the individual may not.
    4. I even give that it’s likely that rates will increase for some segment of the population. We’re going from an individual rating system which was awesome for young, healthy people but terrible for everyone else, to a community rating system. The young, healthy people are the ones who will get the short end of the stick. But many can go on family plans or still get subsidies. And, in return, they get the guarantee of more affordable insurance in the future as they age. That’s the tradeoff.
    5. Why are people always using the straw man of the healthy 25 year old male? Or even the nearly-apocraphyl perfectly healthy 45 year old male, who has nothing wrong with him at all?  Is that really who the system is for?

    Bottom line is that this is a huge endeavor that affects tens of millions of people. No one should be under the illusion that all of them will see awesomeness tomorrow. Community ratings and a mandate mean that some people – especially the young and perfectly healthy with no family history of illness – will see an increase in their premiums over what they paid before. But the number of people who will actually pay more out of pocket for the same insurance as before is quite small. Trying to find them, and using them as the repeated anecdote to attack the overall policy may score political points, but isn’t necessarily representative of the entire scope of the ACA.

    @aaronecarroll

     
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  • Sound Medicine: A bitter pill to swallow

    Sound Medicine is a radio show produced by the Indiana University School of Medicine and WFYI Public Radio. In the last few years, I’ve become their go-to guy on health policy.

    Recently, the show interviewed Steven Brill. While I recommend you listen to the whole thing, I got to sneak in a question or two, and at 7:20 you can hear me ask what I first posted here a few weeks ago. Specifically, I asked why he didn’t comment on all-payer as a solution, and whether he thinks it might be a good idea. Listen, after the jump!

    Steven Brill, journalist, knows healthcare. Brill’s latest article, ‘Why Medical Bills are Killing Us,’ is the cover story for the March 4, 2013 edition of Time magazine and it’s also the longest story ever to be published in Time. Brill spent months poring over and analyzing medical records, and his findings are fascinating. Many hospitals charge $1.50 for acetaminophen, a generic version of Tylenol, when consumers can buy over 100 of these generic pills for the same price at the drug store. Although $1.50 may not seem very costly, does $15,000 for routine blood work sound high? For cancer patients the cost may be even higher as, many hospitals charge mark-ups in excess of 400% for cancer treatments.
    Read the rest of this entry »

     
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  • You mean it’s the prices, stupid?

    So I finally got around to reading Steven Brill’s piece in Time this weekend. Yeah it took me a while, but man – why so long? I have a number of thoughts on  it, although I’ll be very disappointed in you long-time readers if you found much of it surprising.

    First of all, IT’S THE PRICES, STUPID! Is this really news to anyone (each of those words is a different link, BTW)? Seriously? Not to beat a dead horse, but it’s one of the ways Switzerland keeps its costs under more control. As Sarah Kliff points out, other countries do this, too. Have you guys really not read or heard us talk about Maryland? Yes, it’s the prices. They are super, super high in the United States. Everything costs more here. Granted, the sensational nature of the piece carries far more weight, but I’m shocked at how many of my Twitter followers got the vapors after reading it.

    Second, I was terribly disappointed by this:

    Finally, we should embarrass Democrats into stopping their fight against medical-malpractice reform and instead provide safe-harbor defenses for doctors so they don’t have to order a CT scan whenever, as one hospital administrator put it, someone in the emergency room says the word head. Trial lawyers who make their bread and butter from civil suits have been the Democrats’ biggest financial backer for decades. Republicans are right when they argue that tort reform is overdue. Eliminating the rationale or excuse for all the extra doctor exams, lab tests and use of CT scans and MRIs could cut tens of billions of dollars a year while drastically cutting what hospitals and doctors spend on malpractice insurance and pass along to patients.

    I’m all for real malpractice reform. But I cannot believe, after reading a kajillion words in this article on how greed and prices are causing hospitals and doctors to bilk patients, Brill resorted to this canard. Does he really think that the reason things cost so much – AFTER WRITING THIS ARTICLE – is because doctors and hospitals are “afraid of lawsuits”? Or might it be the economic incentives?

    Third, I’m with Matt Yglesias that, after spending a kajillion words talking about how the prices are the problem, I’m surprised Brill couldnt bring himself to mention all-payer rate setting as a possible fix. Austin is right that the politics are messy, but that doesn’t mean Brill shouldn’t state the obvious.

    Finally, for all you consumer directed health plan fans, this is what it looks like when individuals “shop with their own money” for health care. They are left to the whims of chargemasters and ridiculous prices just when they are at their most vulnerable. No one understands the system. No one can make these decisions when they’re scared. Individuals get screwed. It’s not odd that Medicare get the lowest rates – they have a huge market share. Private insurance companies are smaller than Medicare, get worse rates, but still kick individuals’ butts. Individuals get hosed.

    @aaronecarroll

    UPDATE: After I wrote this, I realized I forgot to say that I still found it quite compelling. It was well written, extensively researched, and I think it will likely move a lot of people in a good direction!

     
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  • Better, if not cheaper

    Ezeliel Emanuel has a great piece over at the NYT about end-of-life care. He starts off by correcting a few myths:

    Here are the real numbers. The roughly 6 percent of Medicare patients who die each year do make up a large proportion of Medicare costs: 27 to 30 percent. But this figure has not changed significantly in decades. And the total number of Americans, not just older people, who die every year — less than 1 percent of the population — account for much less of total health care spending, just 10 to 12 percent.

    While obviously higher than average, these numbers obviously aren’t driving the massive over-spending we do on health care. Plus, what can we do about it? It’s easy to identify the year before people die when we look back at data. It’s impossible to do so looking forward. We spend money on people when they get sick. Sometimes we save them, and sometimes we don’t. We can’t tell ahead of time which group is which in order to save spending by not bothering.

    Besides, we’re never going to do that. Nor should we.

    Emanuel spends the rest of the piece discussing how we could do a better job of end-of life care. But what pleases me most is that he spends his time discussing how we could make it better, not cheaper. Go read it. The stuff he recommends is somewhat common sense, but all-too-often ignored. Death panels even make an appearance.

    If nothing else, it’s nice that one of the first things I read this year acknowledged that sometimes good things cost money.

    @aaronecarroll

     
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