How Florence Nightingale cleaned up ‘hell on earth’ hospitals and became an international hero

http://www.pbs.org/newshour/updates/florence-nightingale-cleaned-hell-earth-hospitals-became-international-hero/?utm_source=atlanticfacebook&utm_medium=social

British nurse Florence Nightingale (1820 - 1910) makes her rounds in the Barrack hospital at Scutari, during the Crimean War, 24th February 1855

In all of medical history, few names have been sung more brightly than Florence Nightingale, born on this day in 1820. Credited with founding the first modern, secular nursing school in 1860 (at St. Thomas’s Hospital in London, and currently part of King’s College, University of London), Florence’s birthday has been designated International Nursing Day.

Nicknamed “the Lady of the Lamp” by an intrepid journalist for the London Times, and subsequently immortalized by Henry Wadsworth Longfellow in his 1857 poem “Santa Filomena,” Florence Nightingale first came to prominence during the Crimean War.

Appalled by the primitive, filthy hospital facilities, Nightingale later wrote, “the British high command had succeeded in creating the nearest thing to hell on earth.”

In 1855, she organized and trained a group of nurses to help the soldiers injured during that conflict. Appalled by the primitive hospital facilities, the lack of beds, bandages, and bathing facilities, all wrapped into a decidedly filthy, vermin-ridden environment, Nightingale later wrote, “the British high command had succeeded in creating the nearest thing to hell on earth.” Initially, her nurses were not allowed to see the suffering soldiers and, instead, ordered to clean the hospital floors. As the casualties mounted and the physicians became overwhelmed, Nightingale’s nurses were finally enlisted to help.

READ MORE: Celebrating Rebecca Lee Crumpler, first African-American woman physician

Nightingale’s poetic moniker was the result of her late evening rounds visiting the wounded soldiers. When the war ended and she returned home to London, she was lauded as a national hero and showered with awards and medals including a jewel from Queen Victoria.
Nightingale’s 1859 book, “Notes on Nursing,” on the other hand, shed a far better light on the profession and soon became a standard textbook for training nurses around the globe.Ever busy with advancing the profession of nursing, Nightingale worked extraordinarily hard to counter the prevalent (and negative) view of nurses, such as that described by Charles Dickens in his 1842-1843 novel, “Martin Chuzzlewit.” One of the minor characters in this delightful tome is an incompetent, poorly trained and negligent nurse named Sarah Gamp. She is best recalled as an alcoholic, far more interested in her next glass of gin than the needs of her patients.

Florence was also consumed with advancing the causes of cleanliness in the hospital setting and beyond by using the newly developed mathematical methods of statistics to prove that such interventions made a difference.

Beginning with her war work, Nightingale noted that 10 times more soldiers died of the so-called filth diseases, such as cholera, dysentery, typhoid and typhus, than those who succumbed to bullets and cannon balls. She determined the cause to be related to the overcrowding of soldiers, paltry latrine and sewer facilities and, in an era when “poisonous miasmas” were still thought to the source of many infectious diseases, poor ventilation in the hospital wards. Indeed, her insistence on adequate ventilation led to a worldwide trend of building hospitals with large windows and cross-ventilation schemes, a design one can still see in the few 19th century hospital buildings that remain in various American and European cities.

READ MORE: How poet John Keats met his early end

Working with the pioneering British statistician William Farr and public health and urban poverty expert Edwin Chadwick, she compiled, analyzed and presented understandable and detailed information on the living conditions of England’s poorest citizens, as well as the living conditions, public health, and medical care of those living in India. Florence Nightingale pioneered in the graphical representation of the numbers she crunched. She was an early adopter of the “pie chart” and developed her own “rose diagram,” which is a circular histogram of data she called the “coxcomb” and used to describe seasonal changes in patient mortality, first in various military theaters and, subsequently, among Britain’s poor.

This work led to the passage of England’s Public Health Acts of 1874 and 1875, which required property owners to connect their sewage lines to main drain pipes, as a means of controlling the dumping of huge amounts of human waste onto city streets, and giving control of public health problems to local authorities who saw the unhealthy conditions first hand, rather than the previous system of granting those powers to centralized government officials in a faraway office. Both these reforms are credited with playing a vital role in extending the lifespan of British subjects (as well as citizens in other industrialized, western nations) by 20 years, between 1891 and the mid-1930s, when there were not yet the advantages of antibiotics, intravenous fluids or other modern medical conveniences.

If you want to know what is really going on with a patient, make sure you ask his or her nurse first.

A deeply religious woman, Florence was the advantaged child of a wealthy family. She managed to use those advantages, as well as surmount the disadvantages of being an ambitious, professional woman in Victorian England, to help the neediest and most vulnerable, both to the ravages of poverty and disease.

Today, on Florence Nightingale’s birthday and International Nurse’s Day (this year’s celebratory theme is “The Balance of Mind, Body and Spirit”), we celebrate her multitude of accomplishments and those of the legion of nurses who followed in her path and continue to make a huge difference in caring for the ill.

When reflecting on the life of this extraordinary woman, the doctor in me is forced to recall a lesson he learned the hard way as an intern: if you want to know what is really doing on with a patient, make sure you ask his or her nurse first.

Dignity Health reports $85M operating loss in Q3

http://www.beckershospitalreview.com/finance/dignity-health-reports-85m-operating-loss-in-q3.html

Image result for dignity

San Francisco-based Dignity Health saw a decrease in revenue in the third quarter of fiscal year 2017, according to an unaudited quarterly report.

The nonprofit health system reported revenues of $3.14 billion for the three-month period ended March 31, down about 2 percent from $3.2 billion in the same period the year prior. Dignity partially attributed lower revenues to a $111.3 million decrease in net patient and premium revenue over the same period in the previous fiscal year.

The system’s operating loss more than doubled in the third quarter when compared with the same period last year. For the three-month period, the health system recorded operating losses of $85.4 million, up from $41.7 million in the same period the year prior.

Dignity attributed the loss to several factors, including unrecognized provider fee income during the period, which is pending CMS approval. The system recorded provider fee income of $108.9 million in the third quarter of the previous fiscal year.

For the nine months ended March 31, Dignity reported an operating gain of $79.5 million, up from an operating loss of $87.1 million for the same period in the prior year.

Moody’s: US nonprofit hospitals see decrease in median operating margin

http://www.beckershospitalreview.com/finance/moody-s-us-nonprofit-hospitals-see-decline-in-median-operating-margin.html

OR Efficiencies

U.S. nonprofit hospitals’ median operating margin fell in fiscal year 2016 as expenses grew, according to preliminary financial data compiled by Moody’s Investors Service.

The data is from the agency’s annual report, “Not-for-profit Healthcare and Public Hospitals — US: Preliminary 2016 Medians Skew Lower As Revenue and Expense Pressures Hinder Profitability.” For the report, Moody’s examined audited fiscal year 2016 financial statements for 150 hospitals and health systems.

Here are seven things to know from the analysis.

 

Kaiser raises record $4.4 billion in white-hot hospital bond market

http://www.modernhealthcare.com/article/20170510/NEWS/170519985

Image result for white-hot hospital bond market

Kaiser Permanente raised $4.4 billion through a series of three bond offerings this month.

That’s a record for the Oakland, Calif.-based health plan and hospital giant, which plans to use the proceeds to fuel expansion, said Chief Financial Officer Kathy Lancaster.

The aggregate interest rate on the A+-rated bonds was a stellar 3.8%.

Kaiser Permanente investors ordered four to five times as many of the A+-rated bonds as were available, Kaiser Treasurer Tom Meier said. Overall, the bond market is white-hot for hospital debt offerings.

Just this month, Community Health Systems grew a $700 million debt offering to $900 million. Competition for MetroHealth’s $945.7 million offering dropped the rate to under 5%.

MetroHealth, located just west of Cleveland, raised the money to finance the transformation of its main campus, including a new replacement hospital. Struggling CHS is refinancing debt that was expiring.

Corporate bond activity is expected to remain robust, even if the Federal Reserve raises interest rates a couple of quarter-point notches this year, according to an April debt report by Fitch Ratings.

Even with a quarter-point increase in March, Fed borrowing rates are still near a historic low at 1%. The government will only continue to raise interest rates if the economy is strong, said Fitch Managing Director Megan Neuburger.

What that means for hospitals is that higher interest rates would be offset by more patient volume since consumers might feel more financially comfortable getting elective and preventive care.

That’s the case even for troubled systems such as CHS with below-investment-grade debt ratings.

“The high-yield (bond) market is healthy,” Neuburger said.

Kaiser, the nation’s largest integrated health system with annual revenue of $71 billion, needs more hospital capacity, physician offices and technology enhancements after adding about 2.5 million new health plan members over the past three years, Lancaster said.

The recent acquisition of Group Health in Seattle and other organic growth has brought Kaiser’s enrollment to 11.7 million members.

Most of those enrollees will get their care at Kaiser’s 39 hospitals and hundreds of medical offices staffed by Permanente physicians contracted to Kaiser.

For Kaiser to meet its mission of convenient, affordable care, the system needs to keep investing in locations and technology that allows patients to select whether they come to a physician office or connect with its physicians through telemedicine or secure internet links, CEO Bernard Tyson told a Nashville Health Care Council luncheon audience last month.

Part of the reason this month’s offering was so big is that Kaiser had not gone to the debt markets since 2012, Lancaster said. Typically, it would do an offering every other year. But the need for capital and low interest rates urged Kaiser to put together the offering, Lancaster said.

Kaiser likes to operate with a debt-to-capitalization ratio of 20% to 30%, she said. The recent offering puts the system at 28%.

Interestingly, $1 billion of the $4.4 billion in bonds were designated as “green bonds” or those that appeal to funds and investors that look for environmentally or socially friendly organizations to invest in, Lancaster said.

Kaiser received that designation due to its new environmentally friendly hospital in San Diego that opened two weeks ago, she said.

MetroHealth reports that it had 122 banks, funds, firms and individuals put in orders for its hospital bonds.

“Not only is this an important validation of the success we’ve earned with our strategy, recent growth and operating performance improvements, it’s proof of the industry’s belief in MetroHealth and the path we’re taking,” said Dr. Akram Boutros, MetroHealth CEO.

The health system is using the proceeds to construct a new 12-story, 270-bed replacement hospital on its main campus as well as a new central utility plant and parking garage among other projects.

 

Kaiser hits $1 billion operating gain in Q1

http://www.modernhealthcare.com/article/20170515/NEWS/170519892?utm_campaign=CHL:%20Daily%20Edition&utm_source=hs_email&utm_medium=email&utm_content=51986490&_hsenc=p2ANqtz-839Ex2h99Z8rm5tf8l2lPojAGaBIqcTZ4WSv6wsJY2cbOYWcNtHo6UgIzmQJnqy-2QzLnCsclP8jXne8igI2EeUoSRaA&_hsmi=51986490

Image result for kaiser permanente thrive

Kaiser Permanente Monday posted a record $1 billion operating gain in its first quarter, just days after holding its largest-ever bond offering.

The Oakland, Calif.-based health plan and hospital giant eclipsed the $1 billion barrier on revenue of $18.1 billion. That compared with an operating gain of $701 million on revenue of $16.3 billion in the year-earlier quarter.

The 5.5% operating margin in the first quarter beat the strong 4.3% operating margin from the year-earlier period.

Not-for-profit Kaiser is the nation’s largest integrated health system with 11.7 million health plan members and 39 hospitals.

Its record first quarter was disclosed in a financial filing Monday.

Efforts to reach Kaiser for a comment late Monday were unsuccessful.

Kaiser’s performance was only nominally aided by contributions from its $1.8 billion acquisition of Seattle-based Group Health Cooperative on Feb. 1.

Group Health contributed $18 million of operating income on revenue of $709 million over the last two months of the quarter, the financial filing shows.

Kaiser earlier this month raised a record $4.4 billion through a series of three bond offerings to build out access points in its current markets and look for growth opportunities in communities neighboring its facilities. Those include hundreds of physician offices and outpatient centers across the country.

Kaiser reported operating income of $1.9 billion on revenue of $64.6 billion in full-year 2016 compared with operating income of $1.8 billion on revenue of $60.7 billion in the prior year.

In the first quarter of 2017, Kaiser also posted an investment gain of $582 million compared with an investment loss of $157 million in the year-ago period.

The operating gain coupled with the investment gain and other non-operating income pushed Kaiser to a net gain in the quarter of $1.56 billion.

Kaiser only books actual investment gains, not paper or unrealized gains in its investment portfolio.

Medicare Advantage aggressive coding or fraud

https://www.balloon-juice.com/category/mayhew-on-insurance/

Image result for medical coding

The New York Times has a good story from the 15th on a False Claims Act lawsuit filed by a former United Healthcare employee.  It alleges UHC systemically defrauded the US government of billions from up-coding its Medicare Advantage claims to get bigger risk adjustment payments.  This is a big deal.  Medicare knows that the incentive in Medicare Advantage is to make the patients look as sick as possible to maximize upcoding. A recent estimate has coding differentials leading to a $20 billion dollar a year payment differential between Medicare Advantage and Fee for Service Medicare for intrinsically similar patients.

At the heart of the dispute: The government pays insurers extra to enroll people with more serious medical problems, to discourage them from cherry-picking healthy people for their Medicare Advantage plans. The higher payments are determined by a complicated risk scoring system, which has nothing to do with the treatments people get from their doctors; rather, it is all about diagnoses.

Diabetes, for example, can raise risk scores by varying amounts, depending on a patient’s complications. So UnitedHealth gave people with diabetes intensive scrutiny, to see if they had any other conditions that the diabetes might have caused.

As Mr. Poehling’s lawyer, Mary Inman, described it, the government would pay UnitedHealth $9,580 a year for enrolling a 76-year-old woman with diabetes and kidney failure, for instance, but if the company claimed that her diabetes had actually caused her kidney failure, the payment rose to $12,902 — an additional $3,322. Ms. Inman is with the law firm of Constantine Cannon in San Francisco.

We need to differentiate between aggressive coding and fraud.  The key question in this example is not whether or not UHC got a doctor to say that the kidney failure was caused by diabetes but whether or not the evidence in the chart supports that assertion.

If it is medically supported from the chart, history and corroborating results, this is not fraud.  It is aggressive coding designed to maximize revenue.  If it is not supportable, then it is either fraud or abuse.  That will be the key area of argument.  Does the evidence show that the diagnosis codes that UHC is chasing are supportable by medical evidence?

Betsy Nicoletti is a coding specialist who shared her coding book with me.  I want to highlight a legitimate example of what happens at every health plan that has risk adjusted plans.  The example is about diabetes:

Fresh Food By Prescription: This Health Care Firm Is Trimming Costs — And Waistlines

http://www.npr.org/sections/thesalt/2017/05/08/526952657/fresh-food-by-prescription-this-health-care-firm-is-trimming-costs-and-waistline

Is prevention medicine the future?

This program is an example of the booming interest in prevention-oriented medicine.

The current health care system in the U.S. is often more aptly described as a disease-care system. “It’s reactive,” says Mitesh Patel, a physician and assistant professor of health care management at The Wharton School at the University of Pennsylvania. “We wait until people get sick and then spend lot of resources helping them get better.”

But Patel says there are signs this is beginning to change. “I think the paradigm shift has already begun,” he told us. Patel’s take on Geisinger’s new Fresh Food Pharmacy program: It includes the kind of financial and social incentives that can help motivate people to make changes.

For instance, the Fresh Food Pharmacy gives free, fresh food not just to the patients enrolled but to everyone in their household as well.

“The way we behave is really influenced by others around us,” says Patel. So promoting a group effort could “make the program a lot more sticky and more likely to succeed.”

It’s always a challenge to get people to maintain lifestyle changes over the long term. But, Patel says, “If you get the entire family to change the way they eat, you’re much more likely to improve health.”

Top 10 MACRA Considerations for Providers

http://www.healthleadersmedia.com/physician-leaders/top-10-macra-considerations-providers?spMailingID=11001571&spUserID=MTY3ODg4NTg1MzQ4S0&spJobID=1160968896&spReportId=MTE2MDk2ODg5NgS2

Image result for MACRA

Most physician practices are running a race against time to implement Medicare’s value-based payment system, survey data indicates. They have a lot to think about as they go about it.

As Medicare’s reviled Sustainable Growth Rate (SGR) formula for physician reimbursement fades to extinction, its replacement, the Medicare Access and CHIP Reauthorization Act (MACRA) of 2015, is posing a new set of challenges.

This week Black Book Research identified 10 of the top MACRA challenges that physician practices are facing. The survey is based on responses from 8,845 physician practices collected from February to April.

1. MIPS compliance technology: Physician practices are seeking technological solutions to help them achieve reporting compliance, with 77% of practices that have at least three clinicians mulling the purchase of Merit-Based Incentive Payment System Compliance Technology Solutions (MIPS) software.

2. Electronic Health Record (EHR) optimization: MACRA appears to be a golden opportunity for the largest EHR vendors. For the top eight EHR companies, 83% of their physician-practice users reported working to upgrade their system for MIPS compliance. At physician practices with smaller EHR vendor partners, however, 72% reported they were not working with their vendor partner to upgrade their system for MIPS compliance.

3. Consultant opportunity: The EHR capabilities required for participation in MIPS or Alternative Payment Models (APMs) represent a business opportunity for EHR consultants. Most (80%) of physician practices report that conducting a technology inventory is key to strategic planning for a value-based payment system.

4. Data wrangling: Taming data to conform with the reporting requirements of MIPS and APMs is daunting for many physician practices. At practices with at least four clinicians, 81% of physicians report being unable to align their data with the new reporting requirements.

5. Paying for procrastination: Physician practices that have not developed an in-house strategy for participating in MIPS or an APM are looking for outsourcing options. Of these practice procrastinators, 80% are planning to find turnkey software or a MACRA-administration partner this year.

6. MACRA-induced physician-practice consolidation: Black Book found that three-quarters of independent physician practices surveyed are considering selling their practice to a health system, hospital, or large group practice because of the regulatory and capital-cost burdens of MACRA.

In an equally dour data point, 68% of independent physicians predicted that MACRA would either burden or bankrupt their practice by 2020.

7. Economic incentives: For the first five years of the Quality Payment Program, there are powerful economic incentives to beat the MIPS performance threshold.

In 2019, MIPS is set to redistribute about $199 million from physicians who perform below the performance threshold to physicians above the threshold, and this redistribution mechanism is set to expand over time.

There also is $500 million in supplemental funding available for each of the first five years of MIPS implementation. To chase these opportunities, 64% of hospital-networked physician organizations reported including incentives in physician-compensation packages to boost MIPS performance.

8. Reputation risk: A majority (54%) of those surveyed did not know that MACRA would result in performance data being reported publicly through Medicare’s Physician Compare website and other rating systems.

9. ACO appeal: Joining an accountable care organization can increase the odds of MIPS success through penalty avoidance and resource utilization bonuses. Small physician practices have taken notice, with 67% considering joining an ACO to increase the likelihood of MIPS success.

10. Cost and quality transparency: Based on its physician-practice survey and other research, Black Book Research expects MACRA to be one of the market factors driving healthcare cost and quality transparency.

One survey noted 52% of large group practices, independent practice associations, ACOs, and integrated delivery networks reported they were preparing to release cost and quality measures for individual physicians by next year.

 

Medicare Didn’t Investigate Suspicious Reports Of Hospital Infections

http://www.npr.org/sections/health-shots/2017/05/09/527432852/medicare-didnt-investigate-suspicious-reports-of-hospital-infections

Almost 100 hospitals reported suspicious data on dangerous infections to Centers for Medicare & Medicaid Services officials, but the agency did not follow up or examine any of the cases in depth, according to a report by the Health and Human Services inspector general’s office.

Most hospitals report how many infections strike patients during treatment, meaning the infections are likely contracted inside the facility. Each year, Medicare is supposed to review up to 200 cases in which hospitals report suspicious infection-tracking results.

The IG said Medicare should have done an in-depth review of 96 hospitals that submitted “aberrant data patterns” in 2013 and 2014. Such patterns could include a rapid change in results, improbably low infection rates or assertions that infections nearly always struck before patients arrived at the hospital.

The IG’s report, released Thursday, was designed to address concerns over whether hospitals are “gaming” a system in which it falls to the hospitals to report patient infection rates and, in turn, the facilities can see a bonus or a penalty worth millions of dollars.

The bonuses and penalties are part of Medicare’s Hospital Inpatient Quality Reporting program, which is meant to reward hospitals for low infection rates and give consumers access to the information at the agency’s Hospital Compare website.

Enrollment in a Health Plan with a Tiered Provider Network Decreased Medical Spending by 5 Percent

http://www.commonwealthfund.org/publications/in-the-literature/2017/may/tiered-provider-network-enrollment?omnicid=EALERT1207817&mid=henrykotula@yahoo.com

Synopsis

Employers and health plans are increasingly using tiered provider networks to steer patients to doctors and hospitals that provide higher-quality care at a lower cost. An analysis of tiered network plans in Massachusetts found that they were associated with a 5 percent decrease in spending—$43.36 less per member per quarter compared with per-member spending in similar plans not offering tiered networks.

The Issue

“Tiered-network benefit designs have the potential to deliver higher value and be a tool that employers and other payers can use to decrease spending in the U.S. health care system.”

In health insurance plans featuring tiered provider networks, providers (e.g., physicians and hospitals) are categorized by the quality and cost of their patient care. Providers with higher quality and lower costs are typically placed in the most-preferred tier rankings. Plans furnish their enrollees with information about providers’ relative value and use financial incentives like lower cost-sharing to steer them to preferred providers. In this Commonwealth Fund–supported study, researchers examined the impact of tiered primary care physician groups and hospitals—offered through Blue Cross Blue Shield of Massachusetts (BCBSMA)—on inpatient care, outpatient care, outpatient radiology, and total health care spending.

Key Findings

  • The tiered network plans offered by BCBSMA were associated with lower total adjusted medical spending of $43.36 per member per quarter relative to enrollee spending in similar plans without a tiered network ($830.07 vs. $873.43). This represents a 5 percent decrease in spending.
  • The tiered network plans were also associated with 4.6 percent lower spending on outpatient care per member per quarter compared with nontiered network plans ($576.89 vs. $604.76) and 6.5 percent lower spending on outpatient radiology ($93.71 vs. $100.23). Savings for inpatient care were not significant.
  • Results were similar when the researchers compared spending only within large-group plans, and only within small-group plans.

The Big Picture

Tiered network plans may be more palatable to consumers than narrow-network plans, the authors say, since they cover care from nonpreferred providers, albeit with higher cost-sharing. These findings also suggest that tiered network plans may be a valuable tool for providers that are under pressure to decrease spending. Provider groups could mirror their referral patterns to match tiered networks.

About the Study

The study population consisted of 184,385 nonelderly enrollees (age 64 and younger) who were enrolled in a Blue Cross Blue Shield of Massachusetts smallor large-group tiered network plan for at least one quarter in 2008–2012 and 927,491 nonelderly enrollees in health plans with matched benefit designs, except for no tiered network, in the same period. Enrollees in the tiered network plans paid different cost-sharing levels depending on the tier ranking of their provider.

The Bottom Line

Tiered provider networks have the potential to reduce overall health care spending.