Storm Harvey could financially hurt already strained Houston hospitals

http://www.reuters.com/article/us-storm-harvey-healthcare/storm-harvey-could-financially-hurt-already-strained-houston-hospitals-idUSKCN1B92T2

Image result for houston hospitals under water

 

Structural improvements over the last decade to Houston hospitals have helped them so far to avoid devastation like Hurricane Katrina in New Orleans in 2005, but the pounding it is receiving from Tropical Storm Harvey is expected to financially hobble many already strained Texas medical centers.

The storm has forced hospitals to cancel surgeries, evacuate patients and contend with food and supply shortages. Even bigger challenges are expected in coming months when people who have lost homes and jobs avoid medical treatment or seek charitable care.

“A lot of hospitals already were burdened by uncompensated care…they were already struggling, and this will make things much harder,” said Vivian Ho, a healthcare economist at Rice University.

Rice has been temporarily closed because of the slow-moving storm that has killed at least 11 people since Friday and paralyzed Houston, the fourth most-populous city in the United States with a U.S.-census estimated 2.3 million.

Houston’s healthcare industry includes some of the most prestigious institutions in the country and has grown to accommodate a rising population in recent years.

But uncertainty about changes to U.S. health insurance policy, the region’s shrinking energy sector and Texas’ high percentage of uninsured have forced several Houston hospitals to cut thousands of jobs this year and post millions of dollars in losses, even before the storm.

Investment bank Jefferies warned in an Aug. 28 note that Harvey could have a significant impact on Texas healthcare providers, especially HCA Healthcare Inc, which has “11 percent of its beds in the areas impacted by severe weather.”

Texas Hospital Association spokesman Lance Lunsford said medical centers made significant improvements after buildings were damaged by Tropical Storm Allison in 2001.

Harvey broke rainfall records for the continental United States, with one site south of Houston recording 49.2 inches (1.25 meters) of precipitation.

Flooding prompted MD Anderson on Monday to cancel appointments and surgeries until Wednesday at the earliest, St. Luke’s Hospital closed one of its branches, and flooding at Ben Taub Hospital shut its food service.

MD Anderson on Monday told employees not part of its storm “ride out” team to stay home.

Roads around the cancer center’s main hospital were impassible, and a doctor posted photos of flooding that reached into the hospital lobby.

MD Anderson’s economic impact to the area is about $35 billion, according to its web site. Its 21 hospitals and affiliated institutions employ more than 106,000 people.

An Untapped Opportunity For Health Care Progress: Redesigning Care For High-Need Patients

http://healthaffairs.org/blog/2017/08/28/an-untapped-opportunity-for-health-care-progress-redesigning-care-for-high-need-patients/

A doctor works with a patient

While uncertainty and debate about health care reform remains, there is near-universal agreement on the need to improve care delivery and health outcomes and decrease the rate at which spending continues to grow. An underrecognized but crucial component to achieving these goals is redesigning care for “high-need patients”—in other words, the small cohort of patients with complex needs who represent the greatest usage of the health care system.

Currently, 1 percent of patients account for more than 20 percent of health care expenditures, and 5 percent account for nearly half of the nation’s spending on health care, according to the Agency for Healthcare Research and Quality. Driving these costs for high-need patients are the functional limitations that impact patients’ daily living and ability to cope with health challenges, leading to their use of health care and social services that are often too late and poorly matched to their needs.

A 2014 survey conducted by the Commonwealth Fund found that high-need patients are highly susceptible to lack of coordination within the health care system and are more likely to experience cost-related barriers to accessing care, compared to other older adults. A 2016 Commonwealth Fund survey found that nearly two-thirds of high-need patients reported hardships with housing, meals, or utilities and that this population was also more likely to report feeling socially isolated, compared with the general adult population. Providing quality care for these high-need patients is a sizable challenge—yet it’s also an area where strategic attention and investment could yield significant payoffs for patients and the entire health system.

Indeed, a number of health systems have designed successful models that leverage an understanding of the unique characteristics of high-need patients to deliver quality care at sustainable costs.

Although there is no one-size-fits-all solution, a new publication from the National Academy of Medicine (NAM) says successful models generally share a number of common features across four dimensions:

    • Focus of service setting. Successful models tailor their care settings for either a targeted age group with various combinations of illnesses or individuals who use a significant amount of care. Examples of care settings include enhanced primary care, transitional care, integrated care, home-based care, and others.
    • Care and condition attributes. Successful models include practices such as targeting patients most likely to benefit from an intervention, coordinating care and communication among patients and providers, promoting patient and family engagement in self-care, and facilitating transitions from the hospital and referrals to community resources.
    • Delivery features. Successful models often feature the use of care managers alongside primary care providers to identify and work with high-risk patients. In addition, they often put high-risk patients under the care of specific physicians who treat a limited number of patients to enhance communication and adherence.
    • Organizational culture. For care models to be successful, organizations must emphasize leadership at all levels; be capable of adapting based on the size of the program and local circumstances; offer specialized, customizable training for team members; and effectively use data access, sources, and application.

Denver Health: A Real-World Example

In 2012, Denver Health—an integrated system that includes an acute care hospital, all of Denver’s federally qualified health centers, a public health department, an emergency 9-1-1 call center, a health maintenance organization, and several school-based health centers—set out to create a new care model and transform its primary care delivery system by providing individualized care that would more effectively meet medical, behavioral, and social needs for its largely low-income population. In designing its 21st Century Care model, which included modifications to better serve its high-need patients, Denver Health’s goals were to improve the experience of care, improve the health of populations, and reduce per capita costs of health care. Early in its implementation, a fourth goal also emerged: improving provider engagement and creating healthier and happier patients.

With support from a Center for Medicare and Medicaid Innovation award, Denver Health was able to redesign its health teams and invest in health information technology to enable population segmentation and categorization of patients by clinical risk groups. Funds were also spent on rapid evaluation efforts to refine the care model’s design.

The new model matched care delivery to four risk tiers. Healthy individuals were assigned to tier one and interacted with staff using Denver Health’s eTouch text messaging platform. Individuals in tier two received additional chronic disease management, such as lay patient navigators, nurse care coordination and home visits, and environmental scans for children with asthma. For patients in tiers three and four, integrated behavioral health assessments and care were standard, as was the inclusion of nurse care coordinators, clinical pharmacists, and clinical social workers as part of the care team. For patients in tier four, Denver Health relied on specialized intensive outpatient clinics to serve as adult patients’ medical homes or multidisciplinary special needs clinics for high-risk pediatric patients. Targeted toward individuals who had experienced multiple potentially avoidable inpatient admissions within one year, care teams in these clinics included a dedicated social worker and navigator, and teams were responsible for a limited number of patients. This clinic also worked closely with the Mental Health Center of Denver.

Denver Health’s systems modification paid off, particularly for high-need patients. These innovations not only improved patient outcomes and patient and provider satisfaction, but also resulted in reductions in expected spending. Over a one-year period, the system saw an approximately 2 percent reduction in expected spending. Most of the savings were driven by a decrease in hospitalizations among patients in tier four. Denver Health’s success demonstrates the real potential of strategic models to improve care for these patients while curbing health care spending.

The Opportunity

Health systems can play an essential role in improving care for our nation’s high-need patients. That’s why we, as members of an initiative under the NAM Leadership Consortium for a Value and Science-Driven Health System, are spreading the word about the characteristics of high-need patients, the challenges they face, and the features of successful care models for this population. This initiative was conducted in partnership with the Harvard T.H. Chan School of Public Health, the Bipartisan Policy Center, the Commonwealth Fund, and publication sponsor, the Peterson Center on Healthcare.

To promote improvements to the care of high-need patients, health systems should work with payers, providers, and other health systems to better identify and target high-need patients, test new practices and tools, and develop interactive electronic health records that can include functional and behavioral status and social needs. They should use established metrics and quality improvement approaches to continuously assess and improve care models and partner with community organizations, patients, caregivers, and social and behavioral health service providers outside the health care system to create patient-centered care plans. Health systems can also assess their current culture and promote changes needed to build new and successful care models, blending medical, social, and behavioral approaches.

Of course, health systems can’t do this alone. At the federal level, policy makers should improve coordination among the Medicare and Medicaid programs to increase access to needed services and reduce the burden on patients and caregivers, and should continue payment policy reforms that align initiatives to incentivize pay-for-performance instead of fee-for-service models. Policy makers should also explore the expansion of programs that could mitigate the financial strain of caregiving, such as Medicaid’s Cash and Counseling—a national program in which the government gave people cash allowances to pay for the services and goods they felt would best meet their personal care needs and counseling about managing their services—and incentivize the adoption and use of interoperable electronic health records that include functional, behavioral health, and social factors.

Payers can develop financing models to provide social and behavioral health services that will both improve care and lower the total cost of care for high-need patients, recognizing that even cost-neutral programs are worth supporting if the outcome is positive for patients. Providers can learn to work collaboratively in teams and engage with patients, care partners, and their caregivers in the design and delivery of care.

Return on investment for most models of care for high-need patients will take time. But one of the most expensive and challenging populations for the current health care system will remain underserved and continue to drive health care spending until there is a unified effort to improve their care. We know there are models that work. Now, action is critical, and while health care reform remains on center stage in the national policy agenda, the time is right. By taking the lead in the bold changes needed for this transformation, health systems can play a pivotal role alongside all stakeholders in reducing costs and improving the health of some of the nation’s most vulnerable patients.

Harvey pounded the nation’s chemical epicenter. What’s in the foul-smelling floodwater left behind?

http://www.latimes.com/nation/nationnow/la-na-houston-chemical-plant-20170831-story.html

Image result for Harvey pounded the nation's chemical epicenter. What's in the foul-smelling floodwater left behind?

The pounding rains of Hurricane Harvey washed over the conduits, cooling towers, ethylene crackers and other esoteric equipment of the nation’s largest complex of chemical plants and petroleum refineries, leaving behind small lakes of brown, foul-smelling water whose contents are a mystery.

Broken tanks, factory fires and ruptured pipes are thought to have released a cocktail of toxic chemicals into the waters. Explosions that released thick black smoke were reported at the Arkema Inc. chemical plant, where floods knocked out the electricity, leaving the facility outside Houston without refrigeration needed to protect volatile chemicals.

Meanwhile, emissions into the air have soared as the petrochemical industry shut down and then started up chemical operations, a cycle that causes an uptick in releases.

The potential health problems were magnified by overflowing sewers, inoperative treatment plants and the residues of animal waste, including carcasses.

Nobody is sure how much long-term health impact, if any, will result from the tidal wave of toxins and bacteria that swept through the nation’s fourth largest city.

Exhaustive investigations by the Environmental Protection Agency and the National Academy of Engineering after Hurricane Katrina, in which floodwaters languished in New Orleans for about six weeks, showed that toxic concentrations and the resulting exposures were too low to cause significant long-term health problems.

That festering flood caused a stench for weeks that left soldiers gagging for air as they flew helicopters 2,000 feet over the city. The Army Corps of Engineers had to pump the water out of New Orleans, much of which lies below sea level.

A report by the National Academy of Engineering in March 2006 said the floodwaters contained elevated levels of contaminants. The inorganic compounds were below drinking-water standards, while arsenic levels, attributed in part to lawn fertilizer, were above those standards.

The EPA took 1,800 samples of residue and soil from across the New Orleans area after Hurricanes Katrina and Rita and found that generally “the sediments left behind by the flooding from the hurricanes are not expected to cause adverse health impacts to individuals returning to New Orleans.”

The situation is far different in Houston, where the floodwaters are receding much faster.

But because Houston is far more industrialized, Harvey could have a much larger potential for leaving a toxic trail.

Without question, air emissions rose significantly during and after the storm, said Elena Craft, a toxicologist and senior scientist at the Texas branch of the Environmental Defense Fund.

The industry shutdown and startup cycle released 2 million pounds of pollutants, equal to 40% of all the emissions from 2016, Craft said, based on reports the industry made to the Texas Commission on Environmental Quality.

“In a few days, we have had months of exposure,” Craft said.

Marathon Oil, for example, reported to the state that heavy rain had pounded the roof of a storage tank so hard that it tilted, exposing gasoline to the air.

The emissions reports also included such carcinogens and suspected carcinogens as benzene and butadiene.

Craft said that sewage treatment plants in Beaumont went off line. A pipe carrying anhydrous hydrogen chloride was compromised in La Porte. Harris County’s 26 federal Superfund toxic waste sites may have been affected, including one that contains dioxins from a former paper mill along the San Jacinto River.

The fire at the Arkema chemical plant in Crosby released organic hydrogen peroxide, which officials said is an irritant but not toxic.

Tommy Newsom, who lives about 7 miles from the plant, said he felt fine but wondered what other chemicals might be involved. “Who knows how much of what they’re telling us is true?” he said.

“I think the wind’s in my favor,” said Newsom, a 60-year-old port worker, pointing to Texas state and U.S. flags at the entrance to his housing development.

Jennifer Sass, a senior scientist with the Natural Resources Defense Council’s health program, said the situation in Houston is a perfect breeding ground for hepatitis and tetanus.

“The flood is so large and slow-moving and the area is packed with dirty industries that are poorly regulated. Because the oil and gas industries down here are not as safe, we are concerned those toxins and chemicals are leaking,” she said.

Texas regulators urged caution. “Floodwaters may contain many hazards, including infectious organisms, intestinal bacteria, and other disease agents,” the Texas Commission on Environmental Quality said in a statement. “Precautions should be taken by anyone involved in cleanup activities or any others who may be exposed to floodwaters.”

The American Chemistry Council said its members are in constant communication with state and federal regulators about the status of their operations.

“Hurricane Harvey has presented extreme and unique challenges for the city of Houston and the surrounding areas in southeast Texas and Louisiana, warranting an unprecedented response effort, including that by local industry,” the trade group said in a statement.

Podcast: ‘What The Health?’ Hurricane Harvey And Health Costs

Podcast: ‘What The Health?’ Hurricane Harvey And Health Costs

Image result for hurricane relief

Hurricane Harvey and its torrential aftermath disrupted everything on the Texas and Louisiana coasts — including health care. Patients can expect months of chaos, as their providers scramble just to get back to work and sort out medical records. In addition, the storm may end up killing, injuring and sickening many more people, as toxins such as mold and chemical explosions take their toll.

Even so, Harvey could have been worse, says a panel of experienced health care journalists on the latest Kaiser Health News “What the Health?” podcast. That’s because the medical infrastructure, unlike in many previous national disasters, held up relatively well. Hospitals planned for flooding, to the point that underground tunnels connecting one to another could be sealed off with “submarine doors” to keep the water from invading every facility.

Julie Rovner of Kaiser Health News, Joanne Kenen of Politico and Margot Sanger-Katz of The New York Times also discuss what impact the relief effort in Washington could have on an already jampacked September agenda. The pressing need for money to rebuild in Texas and Louisiana could complicate and delay other important congressional decisions, including deliberations on stabilizing or changing the Affordable Care Act.

Also this week: an interview with KHN Editor-in-Chief Elisabeth Rosenthal, author of “An American Sickness,” about why medical care costs so much.

Court Strikes Down Overtime Pay Rule

https://www.tlnt.com/court-strikes-down-overtime-pay-rule/?mkt_tok=eyJpIjoiWW1Wa01qQm1NalF6TlRaaiIsInQiOiJtdjRoMkRUTFB4MkU3eFNobGdCYWszVVwvanBPbnYrSW5LdVZJenZvTVNKTG4zRmxCVjdacVJ4eWI0UFlFUzlXMnJJQXhEZEJCbjBacXJrVGQ0RXVWYWRCaE1xeks3XC9CSFJYSGxyRDVERzFuNjJkcVBUNW5TWURPREVGMncxYnZnIn0%3D

The Department of Labor rule that would have compelled employers to pay overtime to millions of more workers has been struck down by a federal court in Texas.

Agreeing with business groups and the 21 states that had challenged the Obama administration rule, District Judge Amos Mazzant said the pay level in the changed rules was set too high.

What the Labor Department had done was to nearly double the minimum pay — from $455 to $913 a week — for determining what workers were exempt from overtime and what workers were entitled to it.

“This significant increase would essentially make an employee’s duties, functions, or tasks irrelevant if the employee’s salary falls below the new minimum salary level,” Mazzant said in his ruling.

While that was also true of the old salary threshold, the states and business groups that challenged the DOL argued the new pay level was set so high that it would sweep in millions of workers performing managerial, administrative and professional work.

Under the Fair Labor Standards Act, workers regardless of how much they earn must be paid overtime, except if they fall under certain exemptions, which largely define them as managers and white collar workers. But over the years, the DOL has adopted a financial test setting a minimum pay as a way to simplify the classification.

Thus, those making less than $455 a week are automatically to be paid overtime. And under the duties test, even workers earning more than the $455 a week are entitled to overtime unless they are “bona fide executive, administrative, professional (or) outside sales employees.” Some types of computer jobs also are included.

The revised salary threshold was to have gone into effect December 1 last year. But just weeks before the deadline, Judge Mazzant issued an injunction which left the old pay level — first adopted in 2004 — in place. The Labor Department appealed the injunction, then reversed course after the Trump administration took office. That left the injunction in place and freed the district court to rule on the merits.

In his ruling, Mazzant said the DOL can use a salary test, but only in conjunction with a duties test.

Carolinas HealthCare, UNC Health Care reveal intent to merge

http://www.healthcarefinancenews.com/news/carolinas-healthcare-unc-health-care-reveal-intent-merge?mkt_tok=eyJpIjoiWkRabU1tTmxOek13Wm1FMyIsInQiOiJQYzBXSkh1OU5ZZmpSdndteUpUUEtiZHBHOE5RekdPYVoyOXBWaE80aHBRMCtJZjNHM01xaU1lWW9PeThMdzNlWWZ6ZHFlUHJmcmVXRFBRXC83WllsV1hudzFZR241U1J4WE15ODBmTFwvUVZSZCs3TDdzSHdKSGFaaWR5bUlSQUFiIn0%3D

Image result for carolinas health system headquartersImage result for unc health system

 

Health systems say they are entering negotiations to combine clinical, medical education and research units.

rolinas HealthCare System and UNC Health Care announced on Thursday that they are negotiating a merger that would transform them into a health system earning an estimated $14 billion in annual revenue.

Both organizations have signed a letter of intent to join their clinical, medical education and research resources and the letter kicks off a period of exclusive negotiations, with the goal of entering into final agreements by year’s end.

Together, the health systems would be focused on four strategic areas: increasing access and affordability, advancing clinical care expertise, growing their renowned academic enterprise and contributing to the region’s economic vibrancy.

“The opportunities to be a national model and to elevate health in North Carolina are nearly limitless,” Carolinas CEO Gene Woods said in a statement.

Woods would serve as chief executive officer of the new entity and UNC Health CEO William Roper, MD, would take on the role of executive director.

Woods noted that since the two organizations already serve almost 50 percent of all patients who visit rural hospitals in the state, they are well positioned to participate in the reinvention of rural healthcare and to transform cancer treatment.

Levine Cancer Institute, which is part of Carolinas, cares for more than 10,000 new patients a year, and more than a thousand participate in clinical trials through a ‘care-close-to-home’ model at some 25 locations throughout the Carolinas.

“Combined with UNC Health Care’s National Cancer Institute designation, with more than $70 million in joint cancer research grants for clinical trials, we will create a cancer network that is second to none in the country,” Woods said.

Roper added that merging would enable the combined organization to provide a wider range of care services, build clinical destination centers, advance care in pediatrics, transplants and other services and expand their medical education offerings.

Executives of the two health systems also said the partnership would give them the leverage to negotiate better deals with insurance companies and vendors, potentially saving millions of dollars.

The plans for consolidation would be submitted to the Federal Trade Commission for ruling on whether the size of the new entity might inflate the cost of healthcare in the state or limit the choice of doctors and hospitals.

Houston hospitals may not be back to normal for a month

Houston hospitals may not be back to normal for a month

Amid the evacuation of approximately 1,500 patients from Houston-area hospitals, officials are commending the emergency response by health providers — while also cautioning that it may be weeks before the facilities are back to business as usual.

The SouthEast Texas Regional Advisory Council — which has overseen catastrophic medical operations since Hurricane Harvey as part of Houston’s emergency command center — estimates that nearly two dozen hospitals have evacuated patients by ambulance and airplane over the course of the past week.

“The storm was so huge it was uncertain what hospitals might be in harm’s way,” said Darrell Pile, chief executive officer of SETRAC. Had they known Harvey would grow into a Category 4 storm, Pile said, they would have staged evacuations three days in advance. But Harvey was unpredictable from the start — and grew stronger without much warning.

Evacuations have been slow not only because of the perils involved in moving patients but also because it has taken time to find other hospitals to accept them. “Some patients may have had gone to Dallas, San Antonio, Austin, or even Waco,” Pile said. “You’ve got to find the hospital to handle the unique needs of the patients you want to transfer.”

Evacuation numbers continued to climb on Tuesday. But Pile said numerous hospitals also scaled back or suspended plans for evacuations. One such facility was Ben Taub, one of Houston’s major safety-net hospitals, which only evacuated three patients after originally seeking to move all 350 patients after flooding occurred inside the hospital basement.

“In the case of Ben Taub, as the waters went down, and additional staff were able to arrive, they whittled down their list,” Pile said, speaking Wednesday. “They may even open back up to full service later today.”

Bryan McLeod, director of external and online communications at Harris Health System, said in a statement Tuesday afternoon that Ben Taub, the system’s largest hospital, is now seeking to “offload some of the patients that we currently have” in anticipation of a “surge of patients” expected as roads clear.

“I can only imagine the burden is going to increase,” said Vivian Ho, a health care economist with Rice University. “It’s going to get tough on them.”

Coordinated response

Pile praised the coordination of hospitals, first responders, and civic leaders. In other major storms elsewhere, he said, some hospitals have failed to communicate effectively; ambulances would bring patients to their doors even though the facilities might be unable to meet their needs.

By contrast, Pile said, roughly 25 hospitals affected by Harvey declared an “internal disaster” — a status that reflects a hospital facing problems in carrying out normal daily operations — that allowed SETRAC to pass along timely information along to first responders who could, in turn, divert patients toward care at hospitals capable of treating them.

“The majority of our hospitals stayed open,” Pile said. “The teamwork of hospitals and EMS agencies through our coalition kept it from becoming an even a bigger disaster.”

Pile hasn’t heard of any hospitals in the Houston area devastated to the point of shuttering — something that’s also occurred in other storm-ravaged cities. It’s because of that he believes nearly all Houston-area hospitals will be fully up and running by the end of September.

“This storm was paralyzing,” Pile said. “Within a month, [I expect] 90 to 95 percent of hospitals will be back in full service. That’s a first.”

 

When athletes share their battles with mental illness

https://www.usatoday.com/story/sports/2017/08/30/michael-phelps-brandon-marshall-mental-health-battles-royce-white-jerry-west/596857001/

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The Looming Consequences of Breathing Mold

https://www.theatlantic.com/health/archive/2017/08/mold-city/538224/

Image result for The Looming Consequences of Breathing Mold

Flooding means health issues that unfold for years.

The flooding of Houston is a health catastrophe unfolding publicly in slow motion. Much of the country is watching as 50 inches of water rise around the chairs of residents in nursing homes and submerge semitrucks. Some 20 trillion gallons of water are pouring onto the urban plain, where developers have paved over the wetlands that would drain the water.

The toll on human life and health so far has been small relative to what the images suggest. Authorities have cited thirty known deaths as of Tuesday night, while 13,000 people have been rescued. President Donald Trump—who this month undid an Obama-era requirement that infrastructure projects be constructed to endure rising sea levels—offered swift reassurance on Twitter: “Major rescue operations underway!” and “Spirit of the people is incredible. Thanks!”

But the impact of hurricanes on health is not captured in the mortality and morbidity numbers in the days after the rain. This is typified by the inglorious problem of mold.

Healthcare spending, price growth slows in 2017 but job growth spikes

http://www.healthcarefinancenews.com/news/healthcare-spending-price-growth-slows-2017-job-growth-spikes?mkt_tok=eyJpIjoiT0RCalpUWTNNbU16TmpJeiIsInQiOiJyUTBEc0s5clMzSUUyRVV4UGJEam9ZOTBVVW5uWmVzQnpMa1hTSjY0clYyK3FGcmtPOFNQelVtd2hRQmZ3aFwvZndPUDNoZk8zOXBBcHNGQzh6U0ErRnhFSmc3RlVzelhoMXp4SjQ5bU02NDQ4K3Badyt4dFhUMzB3ajZ3U0hhNWIifQ%3D%3D

Altarum report finds spending grew by only 4.6 percent in 2016.

Healthcare spending growth slowed in 2016, and the trend appears to be continuing, according to the August 2017 Altarum Institute Center Health Sector Trend report.

According to the report, spending grew by only 4.6 percent in 2016 and estimates based on new data have the downward trend continuing with growth for the first half of 2017 at 4.4 percent. Altarum said the estimates illustrate the impact of expanded coverage, and its subsequent leveling off, on healthcare utilization. Coverage expansion was concentrated in 2014 and 2015, leading to a jump in health services utilization. That peaked at at 5.1 percent in 2015.

“Coverage leveled off in 2016 and, in response, the growth in health services utilization has been trending back toward pre-expanded coverage rates,” Altarum said.

Healthcare price growth has also dropped in 2017, from 2 percent in the first quarter to 1.6 percent in the second quarter.

Though much higher than healthcare services, prescription drug price growth slowed to 3.6 percent in the second quarter 2017. However it is important to note that the impact of rebates are not reflected in these data, and that drug pricing controversies like the one surrounding Mylan’s EpiPen were recently resolved and some generic alternatives have been made available at lower prices.

Finally, health employment grew an average of 21,000 jobs per month during the first 5 months of 2017 then unexpectedly rebounded to 38,000 in June and July. The jump in June and July was a surprise, and was focused mainly in ambulatory settings.

“Growth averaged 32,000 during 2015 and 2016, and the decline in monthly growth during the first 5 months of 2017 was expected due to slower growth in health care utilization driven by the leveling off in expanded coverage,” Altarum said.

The American Hospital Association’s February 2017 Cost of Caring report also illustrated the increased utilization in 2014 and 2015, due to expanded healthcare coverage and more intense utilization of services like chronic disease management.

However, the report mentioned that statistics also suggested that hospitals are trying to hold costs down. For instance, hospital price growth in 2015, as measured by the Hospital Producer Price Index, was .9 percent, a 13-year low and a notable drop from the rate of 4.4 percent in 2006, the report said.

Growth in Medicare spending for all hospital services, both inpatient and outpatient, is at a 17-year low, and inpatient spending dropped 1.9 percent in 2015.

So it is possible that along with a leveling off of coverage and utilization, successful hospital attempts at stabilizing or reducing cost of care could be responsible for the lower spending. The slowing in hospital price growth in the Altarum report is also illustrative of these theories.

However, the hospital industry faces serious challenges that can slow efforts to reduce costs, including drug prices and regulatory compliance, the AHA report said.

Electronic health records have also proven to be big resource absorbers for providers. AHA estimates show that from 2010 to 2014 hospitals spent over $47 billion annually on IT. Increasing regulatory requirements are also fueling increases in administrative expenses and compliance staffing demands, the AHA report said.

Click to access Altarum%20RWJF%20Trend%20Report%20Aug%202017_1.pdf