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Stop penalizing high-performing ACO’s

 

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James Weinstein, M.D., and William Weeks, M.D.,  both affiliated with Dartmouth’s medical complex, write that Medicare should end its penalty for high-performing hospital systems under the Accountable Care Organization model.

At the start of their piece in Modern Healthcare they write:
“Imagine a company that produces a high-quality product, operates efficiently and generates $16 million in year-over-year savings. Then imagine that the company is not allowed to retain those savings, but is assessed a financial penalty. Hard to imagine? Well, it’s a reality in the American healthcare system today.”They elaborate: “It is … important to recognize that participation in the program required these ACO’s to make the expensive upfront investments in information technology and case- management personnel that are indispensable to success in shared-savings models. And, while these investments improve quality, they also reduce healthcare utilization, which reduces per capita Medicare revenue—the basis for shared savings.”Given these high initial investments, anticipated lower Medicare revenue and the lack of well-designed incentives, this financial model is struggling for wider adoption. When Medicare established the Pioneer ACO shared-savings model in 2011, 32 healthcare systems participated in the effort; today 19 remain. ”

“{H}istorically, Dartmouth-Hitchcock {Medical Center} has had very low Medicare per-beneficiary costs. Under the Pioneer ACO model, program results are measured against an annual cost target, instead of on year-over-year improvement. Using this method, healthcare systems with high baseline costs…have a lot of room for improvement, while those with low baseline costs—such as Dartmouth-Hitchcock—do not,” they explain.

“Just as it is easier for an athlete who runs a 10 minute mile to run faster than it is for one who runs a 4 minute mile to do so, it is easier for providers with high baseline healthcare costs to reduce them than it is for providers with low baseline healthcare costs to do so.”

“Given the Pioneer ACO program’s flawed current incentive structure, Dartmouth-Hitchcock is deciding whether to continue to participate.”

FQHC’s get busier despite the ACA

 

Editor’s note: Cambridge Management Group has done much work with Federally Qualified Health Centers so we follow stories such as this closely.

This article is part of a reporting partnership with NPR, WFAE and Kaiser Health News.

 

By MICHAEL TOMSIC, WFAE

Nurse practitioner Martha Brinsko helps a lot of patients manage their diabetes at the Charlotte Community Health Clinic, in North Carolina.

“Most mornings when you check your sugar, what would you say kind of the average is?” Brinsko asked patient Diana Coble.

Coble hesitated before explaining she ran out of the supplies she needs to check her blood sugar levels, and she didn’t have the gas money to get back to the clinic sooner. Brinsko helped Coble stock up again.
Coble, who is unemployed, lives with her sister and can’t afford insurance even now that the health law is in place, relies on the clinic for healthcare.“If you need to get more than one box, get more than one box,” Brinsko said. “But you need to check them every morning so that we can adjust things.”

“They do a great job with everything,” Coble said. “I couldn’t do without them.”

Nancy Hudson was the clinic’s director as the Affordable Care Act was rolled out and  she now consults for the clinic. She expected the insurance exchange, or marketplace, established under the ACA would reduce the number of uninsured patients the clinic sees. The opposite happened, she says.

“What we found within our patient population and within the community is that a lot of the advertisement and information about the marketplace brought people [in who] didn’t know anything about free clinics and did not qualify for any of the programs within the ACA marketplace,” Hudson says.

And now they get free or low-cost care at the clinic, which is designated by the government as a Federally Qualified Health Center.

The health law was designed to cover the poorest people by expanding Medicaid, the federal-state program for low-income people. But the Supreme Court made that optional. The result in states that didn’t expand Medicaid is a gap, where some people make too much money to qualify for Medicaid but not enough to qualify for insurance subsidies. In North Carolina, about 319,000 people, like Coble, fall into the Medicaid gap.

“Over half of the people that we see would’ve been eligible for Medicaid expansion had the state elected to exercise that option,” says Ben Money, president of the association that represents North Carolina’s community health centers.

North Carolina is among the 21 states, including many in the South, currently saying no to Medicaid expansion. Louisiana is another.

Gary Wiltz,  M.D., the CEO of 10 community health centers in  southwestern Louisiana, says demand has surged. “We’ve gone from 10,000 patients to 20,000 in the last six or seven years, so we’ve doubled,” he says.

Wiltz says other things are at play, too. The economic recovery hasn’t reached many of the poorest people, and some who do qualify for ACA subsidies say their options are still too expensive.

“The need keeps increasing, and I think that’s reflected throughout all the states,” he says.

Wiltz, who also heads the board of directors for the National Association of Community Health Centers, says clinics are packed even in states that expanded Medicaid. After all, most of the clinics treat Medicaid patients too.

The Charlotte clinic’s Nancy Hudson says there’s another part of the health law helping fuel the growth: additional funding for community health centers.

Hudson found out last week her clinic is getting about $700,000 to expand in partnership with Goodwill.

“Many of their clients did not have any access to healthcare,” she says. “They can’t train and sustain a job if they don’t have the basic needs taken care of, and healthcare is one of them.”

Nationwide, the federal government estimates  that its latest round of funding will lead to about 650,000 people getting better access to healthcare.

This story is part of a reporting partnership with NPR, WFAE and Kaiser Health News.


Quadruple aim for healthcare reform

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In 2008, Donald Berwick, M.D., and  some colleagues came up with the “Triple Aim” of healthcare reform: improving the individual experience of care; improving the health of populations and reducing the per-capita healthcare cost.

But, it is argued in this BMJ article, a fourth aim should be added: Strengthening the  engagement of the healthcare workforce by raising their sense of meaning and even “joy.”

 


Maryland successes in partnerships

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“Here in Maryland, operating under a unique agreement with the Centers for Medicare & Medicaid Services, hospitals have made great strides in the quality of care by fostering new and innovative partnerships. In the first year under this agreement, hospitals have:

  • “Reduced the readmissions rate by 0.80 percent, faster than the nation as a whole.
  • “Reduced the cost of potentially avoidable utilization by nearly 7 percent.
  • “Reduced admissions from the emergency department by nearly 4 percent./

“This success was only possible because of collaboration among primary care physicians, long-term care facilities, home health operators and others. There is much experimentation around healthcare partnerships, but amid the uncertainty that comes with any new venture is a very inspiring idea–that different organizations, no matter where they sit along the care continuum, are committed to caring for the whole spectrum of their patients’ needs.”

 

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The declining benefits of CBT

Pacific Standard  magazine reports that the benefits of cognitive behavioral therapy,  whose benefits include reducing the need  for psychotropic drugs, seem to have declined since it was developed in the ’70’s.

The magazine said that one explanation is that once it became an established technique in the ’70’s, less experienced and thus less effective therapists have been using it in increasing numbers.

 


Calif. bill would boost ND’s

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In a battle reminiscent of when the American Medical Association tried  its damnest to keep down chiropractors and osteopathic physicians, California legislators are considering legislation to increase prescription-writing and and other privileges for naturopathic physicians, says this story from  MedPage Today’s Joyce Frieden.

The Web Web site  of the California Naturopathic Doctors Association (CNDA) says: “The training consists of comprehensive study of the conventional medical sciences, including anatomy, physiology, pathology, microbiology, immunology, clinical and physical diagnosis, laboratory diagnosis, cardiology, gastroenterology, gynecology, etc., as well as detailed study of a wide variety of natural therapies.”

But ND’s do not receive any residency training.

When ND’s were first licensed in California, in 2003, they got  restricted licenses making them supervised by  MD’s or DO’s when writing prescriptions. That restriction “was put in place as a temporary measure to allow a regulatory subcommittee to determine what the independent formulary for naturopathic doctors should be,” the association told MedPage Today.

The ND association has argued  that the restriction severely  and unfairly limits ND’s’ ability to practice because most MD’s and DO’s  don’t want to supervise ND’s so  that the ND’s can prescribe for their patients. The organization says: “This restriction places significant limitations on ND’s … who have extensive didactic, practical, and continuing education training in conventional pharmacology,” the association said.

ND’s don’t get paid as much as MD’s or DO’s. So understandably MD’s, in particular, fear losing business to cheaper competitors. MD’s already fear growing competition from nurse practitioners and physician assistants.

 

 


More data on dubious payments to providers

 

Medicare releases previously redacted data on dubious gigantic payments to some providers.


CMS is opening healthcare-data stores to private sector

 

For the first time,  the  Centers for Medicare and Medicaid Services will  allow entrepreneurs, access to federal healthcare data stores, reversing a longstanding rule barring researchers from  using CMS data for commercial purposes.

Acting CMS Administrator Andy Slavitt said:

“{Tuesday’s} announcement is aimed directly at shaking up healthcare innovation and setting a new standard for data transparency. We expect a stream of new tools for beneficiaries and care providers that improve care and personalize decision-making.”


Warning to physicians, researchers: First, don’t fool yourselves

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“King Lear and the Fool in the Storm,” by William Dyce

Shannon Brownlee, of the Lown Institute, in a piece about big economic conflicts of interest involving physicians, researchers and the drug and device companies that try to influence them, writes:

“Do I think pharmaceutical and device companies are run entirely by evil people? Of course not. They are working within the rules they’ve been given. Do I think researchers who have conflicts of interest are unethical and greedy? I’m sure some of them are, but most are simply kidding themselves that they can take the money, allow industry to control the agenda, and still conduct unbiased research. As physicist Richard Feynman once said, the first principle of good science is you must not fool yourself, and you are the easiest person to fool.”


Taking the EHR utopians down a few notches

 

Roy Poses, M.D., in  his Healthcare Renewal site, discusses how the federal government is backing down on some requirements for digital health records after claims of an EHR utopia have been proven false.

He writes:
“In recent months, the hyper-enthusiasts and their government allies have had to eat significant dirt, and scale back their grandiose but risible — to those who actually have the expertise and competence to understand the true challenges of computerization in medicine, and think critically — plans.

“(At this point I’ll give them the benefit of the doubt and not call the utopians and hyper-enthusiasts corrupt, just stupid.)”


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