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Study challenges ideas about ER ‘super-utilizers’

 

 

Super-utilizers are the frequent fliers of the healthcare system, whose serious illnesses send them to the hospital multiple times every year and cost the system hundreds of thousands of dollars annually. Figuring out how best to address these patients’ needs and reduce their financial impact on the health care system is a subject of intense interest among policymakers.

Now a new study has found that, in contrast to the notion that “once a super-utilizer, always a super-utilizer,” many patients who use healthcare services intensely do so for a relatively brief period of time.

Research and news reports often point out that super-utilizers are often uninsured or on Medicare and Medicaid and account for a large percentage of health care spending. Federal officials have suggested that their “large numbers of emergency department [ED] visits and hospital admissions … might have been prevented by relatively inexpensive early interventions and primary care.” Many of the programs that have been developed to reduce super-utilizer health care use have focused on the needs of people with multiple chronic conditions, ensuring they have a medical home through which their care is coordinated, for example, or addressing their social services needs.

The study by researchers at Denver Health, a medical center that serves many uninsured and underinsured patients, examined the characteristics and costs of patients who were hospitalized more than three times during a 12-month period in the 2 years from May 1, 2011, to April 30, 2013, or were hospitalized at least twice in 12 months and had a serious mental illness.

The results surprised researchers, says Tracy Johnson, director of healthcare reform initiatives at Denver Health and lead author of the study, published in Health Affairs. At the end of the first year, only 28 percent of 1,682 patients who were originally identified as super-utilizers still met the criteria. At the end of 2 years, the figure had shrunk to 14 percent Per-person spending decreased in line with their decreased use of health care services, from a baseline $113,522 per capita to $47,017 in year two.

Moreover, on an individual level, super-utilizers didn’t necessarily have characteristics of patients frequently assumed to fall into that group, Johnson says. “You’d think they’d all be people with multiple chronic conditions,” she says.

While a substantial 42 percent of high-cost patients with frequent hospital stays did have multiple chronic conditions, others did not. (Researchers grouped patients based on the category that best represented the reason for their hospitalizations. Some patients could have been placed in multiple categories.) Forty-one percent of super-utilizers’ hospitalizations were primarily related to serious mental-health diagnoses. Smaller numbers of high-use patients were hospitalized because of orthopedic surgery, trauma, terminal cancer, or for emergency inpatient dialysis.

“Other literature we saw said that there’s this homogenous group of people, and [suggest that] we can just do this one program and save millions of dollars,” Johnson says, “but what we saw is that it’s more nuanced.” Therefore, different types of super-utilizers may benefit from different program interventions to reduce their health care use and costs.


BOOM!Health as model for marginalized patients

 

By LISA GILLESPIE, for Kaiser Health News

 

Harm-reduction centers — where drug users and sex workers can get clean needles, syringes, free condoms and HIV-prevention information — have existed for decades.  They’ve generally operated on the outskirts of the healthcare system and pieced together shoestring budgets with the help of state and federal programs as well as private donations.

But harm-reduction centers are increasingly trying to reposition themselves as a commodity for hospitals and insurers because of their unique experience in coordinating care for high-risk and often marginalized patients.

Robert Cordero, outgoing president and chief program officer for New York City’s BOOM!Health, says this opportunity is new — and very real. A decade ago, he adds, this nonprofit, integrated health clinic, with its $12 million operating budget, would have struggled to survive. That’s changed now. State-based health reforms, coupled with new incentives put in place by the federal health law, have improved the clinic’s prospects.

Boom!Health was created two years ago when two New York-based organizations — Bronx AIDS Services and CitiWide Harm Reduction — merged to create a new healthcare delivery model that combined harm-reduction services with primary- care, preventive- and behavioral-health services. The clinic also works with an on-site pharmacy to assist patients with medication management, helps homeless patients find affordable housing, and provides  such other services as food and nutrition counseling and legal aid.

The New York Academy of Medicine recently pointed to BOOM!’s integrated approach as a possible model for other clinics around America. It involves partnerships with a local hospital, a Federally Qualified Health Center and other community-based health organizations to reach a down-on-their-luck population sometimes struggling for basic survival. The momentum for these partnerships is fueled in part by providers’ interest in forming the accountable care organizations created by the health law as well as New York state’s push for Medicaid managed care and its reforms toward a value-based, rather than a fee-for-service payment system.

I asked him whom his organization serves:

“We receive Medicaid funding through Medicaid managed care organizations from hospitals like the Bronx-Lebanon Hospital Center, and it’s all tied in with Medicaid expansion and health care reform. Community-based organizations can participate in reform by providing care coordination to people with two or more chronic conditions, many of whom have behavioral health conditions and addiction issues, or things like asthma and diabetes. The hospitals we partner with pay us a ‘per- member, per-month’ rate. Medicaid assigns … high utilizers with two or more conditions to these hospitals, and they have to show health care outcomes.

“There’s a patient I can recall that got tested for hepatitis C using rapid-testing technology by our community outreach worker. He tested positive, and was immediately connected to our in-house doctor, the pharmacy and assigned to a care coordinator to help him navigate all of that, including getting Medicaid to cover the cost of medication, which is incredibly expensive. His treatment regimen was a few months, and eventually he was cured. There are a lot of barriers, even for those who are middle class — you have to figure out the system. So for low-income people who are more marginalized, BOOM! is a great model if you’ve got a tough medical condition.”

So why don’t hospitals manage these patients themselves?

“Hospitals aren’t good at going out in to the community and finding people in shelters. Hospitals are there when you need them. Most patients assigned from Medicaid are disconnected from the medical system, so any effort is more effective than overdosing or whatever it may be.

“The highest utilizers of the Medicaid system, if you take out long-term care and people going into nursing homes, it’s people who have mental health issues and addiction. So it’s costing the system a lot of money. No one knows what to do with them, people think, ‘Just send them to treatment.’ Only 10 percent actually go to treatment.

“We either say we’re going to figure out a way to adjust their needs or wait for them in the ER, and then the system has to pay for it. We’re already comfortable and knowledgeable about the populations we serve. But you have to prove that. So we invest a lot in measuring and evaluating outcomes. If you can prove your value in an outpatient setting, you have negotiating power.”

How did the partnerships start with hospitals?

“We reached out to the hospitals, and that’s how much of the relationship building is happening. …

“And then we pitch them on subcontracting through Medicaid funding, which is how we ended up partnering with a federally qualified health center that gets a higher rate from Medicaid. And that means they have a little more to spend and more time with patients.”

What lessons can you offer to other similar organizations?

“Payment is now based more toward outcomes, which means we have to be more sophisticated with data systems and infrastructure. With Medicaid expansion, we’ve been able to get the funding to build data systems and IT systems.

“Too many nonprofits unfortunately are struggling to figure out a way to participate in reform because what they’re trying to do is retrofitting into the system of care without looking at how to have steady revenue coming in. You don’t have to become a hospital, but you have to become really good at what you do and show it works.”


Many banned Medicaid providers work in other states

 

A federal auditor reports that undreds of medical providers banned from a Medicaid program in one state have been able to participate in another state’s program despite regulations designed to stop them. This leaves Medicaid programs more open to fraud, waste and other abuse.

Reuters reported that investigators, working for  the U.S. Department of Health and Human Services Office of the Inspector General (OIG), “also found that about half of the states were unable to terminate providers enrolled in privately run Medicaid managed care programs. Some refuse to terminate providers still licensed by a medical board, {investigators} found.”

“If a provider has been terminated by a state, that is a red flag, because it would indicate there was a problem either in billing or the way they handle patients,” said Deborah Cosimo, team leader for the report. “Do states really want to trust beneficiary care to someone who has problems like that?”

“The latest report may underestimate the number of providers who continue to participate in Medicaid after termination and the amount they were paid due to poor record keeping by the states, the auditor wrote.”

 

 


Replacement hospital in New Orleans raises equity issues

 

New_Orleans,_Louisiana_montage

Beautiful New Orleans: The Big Easy and the Big Trouble.

State-owned and  Hurricane Katrina-ravaged Charity Hospital, in New Orleans, has been replaced with an institution with a very different name — University Medical Center New Orleans.

The New York Times reports:”Built largely with federal disaster funds, and run by a private operator under contract with the state, the hospital is being held up as the centerpiece of a much-improved health care system for the poor here.”

“But while University Medical Center is taking Charity’s place as the city’s main trauma and safety-net hospital, its ambitions go far beyond that, to providing high-end specialty care to privately insured patients from around the state and beyond. For that and other reasons, concerns that began when the state shuttered Charity immediately after Katrina — unnecessarily, critics still say — persist.

“There is a perception that U.M.C. wasn’t built for the population that Charity served,” Jacques Morial, a community organizer whose father and brother are former New Orleans mayors, and who helped lead a lawsuit over Charity’s closing, told The Times. “That’s because there’s been no urgency to either replace what Charity represented or rebuild the trust that those who relied on Charity had in it.”

“At the same time, dozens of new community clinics have opened, providing desperately needed primary and mental health care outside the hospital setting. The clinics occupy 60 sites in Greater New Orleans today, compared with a handful in 2004, largely due to federal funds awarded after Hurricane Katrina. Many poor adults get free primary and mental health care at these clinics under a temporary Medicaid waiver program that began here after the hurricane….”


R.I. pushes insurers to PCMHs

 

Kathleen Hittner, the Rhode Island health insurance commissioner, announced an overhaul of the office’s “affordability standards.”  The change will require insurers to increase the percentage of their primary-care networks  running as “patient-centered medical homes (PCMHs)” by 5 percentage points in 2016.

It’s  mostly part of an effort by the new governor, Gina Raimondo, to bring the Medicaid costs under control.

The state announced:

“The Care Transformation Plan requires insurers to increase the percentage of their primary care network functioning as a PCMH by 5 percentage points for 2016 and sets a target of 80% of Rhode Island primary-care clinicians practicing in a PCMH by 2019. The Alternative Payment Methodology Plan establishes payment reform targets for commercial insurers and sets a target for at least 30% of insured medical payments to be made through an alternative payment model by 2016. The payment reform targets will increase the use of payments that emphasize value rather than volume and include efficiency-based global and bundled payment models, as well as payments based on quality performance.”


Public hospital winners and others under ACA

 

Reuters reports:

“A year and a half after the Affordable Care Act brought widespread reforms to the U.S. healthcare system, Chicago’s Cook County Health & Hospitals System has made its first profit in 180 years.

“Seven hundred miles south, the fortunes of Atlanta’s primary public hospital, Grady Health System, haven’t improved, and it remains as dependent as ever on philanthropy and county funding to stay afloat.

“The disparity between the two ‘safety net’ hospitals, both of which serve a disproportionate share of their communities’ poorest patients, illustrates a growing divide nationwide.

“In states like Illinois that have opted to accept federal money to expand Medicaid, some large, public hospitals are finding themselves on solid financial footing for the first time in decades, and formerly uninsured patients are now getting regular care.

“But in states that did not expand the government medical program for the poor, …including Georgia, the impact of the Affordable Care Act on public hospitals has been negligible.”

 

 


How to reduce cost of Medicaid newcomers

 

Last week, the Centers for Medicare and Medicaid Services released its 2014 Actuarial Report on the Financial Outlook for Medicaid.

The  report is making headlines because the actuaries  estimate that for 2014 the newly eligible Medicaid expansion population  had costs greater than the non-newly eligible Medicaid population.

But, Emma Sandoe writes in Health Affairs, “While we still do not have final figures on how much new Medicaid enrollees spent on medical care in 2014, we do have evidence—including a recent study by Naderah Pourat and co-authors published in the July issue of Health Affairs—that primary care and care coordination can help reduce the initial care costs of Medicaid enrollees entering the healthcare system for the first time.

“After all, evidence suggests newly eligible Medicaid beneficiaries are healthier and less costly than the current Medicaid population. However, when negotiating their managed care contracts, many states estimated that the newly eligible would cost more in the first year than non-newly eligible individuals. This approach was based on the theory that the first newly eligible people to enroll would be those previously locked out of the insurance market, quickly entering the healthcare system with pent up demand. Additionally, they would be sicker and would require more healthcare services.

“But it doesn’t have to work that way. Pourat and colleagues show how, several years ago, California found a way to reduce the cost of newly insured Medicaid beneficiaries entering the healthcare system for the first time: care coordination.”

 

 

 

 

 


Medicaid parents incorrectly seek antibiotics

 

Here’s another reason why Medicaid costs taxpayers so much money and why antibiotic resistance has become a serious public-health problem.

Reuters reports:

“Parents of children insured by Medicaid … are more likely to incorrectly assume antibiotics can treat colds and flu and seek these drugs when kids don’t actually need them, a study suggests.

“Parents surveyed in Massachusetts reported using antibiotics for their kids on average less than once a year, the study found. But when asked if antibiotics should be used for colds of flu, only 44 percent of the Medicaid parents correctly said ‘no,’ compared with 78 percent of parents with private coverage.”

 

 


Alaska governor moving unilaterally on Medicaid

juneau

Juneau, the rather vulnerable-looking capital of Alaska.

Alaska Gov. Bill Walker, an independent,  is moving to expand Medicaid for his state’s low-income residents,  as  was intended in  the Affordable Care Act but that some Republican-controlled legislators have opposed. That mostly because they fear that the expansion would be ruinously expensive to their states in the long run. 

Mr. Walker told state legislators that he plans to apply directly to the Obama administration to make the expansion. That would lead lawmakers  to either call a special session or take action to stop his plan from moving forward.

The governor will give the Republican-controlled  legislature 45 days to act  before he acts  unilaterally.  Legislators had previously had refused to expand the program. Mr. Walker says that by not expanding Medicaid, the state loses $400,000 a day in money that would otherwise come from the Feds.

The state has taken a big fiscal hit in the past couple of years from low oil prices.


How Molina lives with lower rates

 

While the Affordable Care Act has helped decrease the  national uninsured rate, it hasn’t  really addressed  healthcare costs, J. Mario Molina, chief executive of Molina Healthcare, one of the nation’s largest managed-care companies, told  Albuquerque Business First.

“I think the next evolution of healthcare reform is figuring out how we do a better job of controlling costs,” he said.

However, Mr. Molina has reasons to be happy about the ACA — it has helped  his company expand, in large part because Medicaid is one of Molina’s primary businesses. So it got many more patients as many states enrolled many more individuals as many states chose to expand their Medicaid programs under the ACA.

Mr. Molina said that his company’s premium-pricing strategy helped let it live with lower rates than other insurers, which have reached very high levels.

He cited the fact that  the insurer didn’t expect to receive any federal funds under the ACA’s risk programs.  That meant Molina could go in conservative because it didn’t have any prior experience, so the company either lowered rates or kept them relatively flat.

He also spoke about about the reinsurance, risk-adjustment and risk corridors: “a lot of companies are looking at the three Rs to help them and we weren’t looking at that at all. We assumed that this was going to be a product that would stand on its own and that’s how we priced it. It’s really worked out for us.”

 

 


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