Can Paying for a Health Problem as a Whole, Not Piece by Piece, Save Medicare Money?

Can Paying for a Health Problem as a Whole, Not Piece by Piece, Save Medicare Money?

Among the standard complaints about the American health care system is that care is expensive and wasteful. These two problems are related, and to address them, Medicare has new ways to pay for care.

Until recently, Medicare paid for each health care service and reimbursed each health care organization separately. It didn’t matter if tests were duplicated or if a more efficient way of delivering care was available — as long as doctors and organizations were paid for what they did, they just kept providing care the way they always had.

But ordinary people do not think this way. We focus on solving our health problem, not which — or how many — discrete health care services might address it. New Medicare programs are devised to more closely align how care is paid for with what we want that care to achieve.

One of these programs is known as bundled payments. Instead of paying separately for every health care service associated with a medical event, you pay (or Medicare pays, in this case) one price for the entire episode. If health care providers can address the problem for less, they keep the difference, or some of it. If they spend more, they lose money. Bundled payment programs vary, but some also include penalties for poor quality or bonuses for good quality.

Medicare has several bundled payment programs for hip and knee replacements — the most common type of Medicare procedures — and associated care that takes place within 90 days. This includes the operation itself, as well as follow-up rehabilitation (also known as post-acute care). In theory, if doctors and hospitals get one payment encompassing all this, they will better coordinate their efforts to limit waste and keep costs down.

Do bundled payments work? They certainly appear promising, at least for some treatments. But it’s important to conduct rigorous evaluations.

Previous studies for Medicare by the Lewin Group and other researchers suggest that Medicare’s Bundled Payments for Care Improvement program has reduced the amount Medicare pays for each hip and knee replacement.

But that doesn’t mean the program saved money over all.

One possible issue would be if, despite saving money per procedure, health care providers wastefully increased the number of procedures — replacing hips and knees that they might not otherwise. A related concern is if hospitals try to increase profits by nudging services toward patients who may not need a procedure as much as patients with more severe and more expensive conditions. An average joint replacement costs $26,000, split almost equally between the initial procedure and post-acute care. But more expensive cases can be $75,000 to $125,000 — a costly proposition for hospitals.

A recent study published in JAMA examined whether the volume of Medicare-financed hip and knee replacements changed in the markets served by hospitals that volunteered for a bundled payments program, relative to markets with no hospitals joining the program. It found no evidence that the bundled payment program increased hip and knee replacement volume, and it found almost no evidence that hospitals skewed their services toward patients whose procedures cost less.

“These results suggest bundled payments are a win-win,” said Ezekiel Emanuel, a co-author of the study. “They save payers like Medicare money and encourage hospitals and physicians to be more efficient in the delivery of care.”

But Robert Berenson, a fellow at the Urban Institute, urges some caution. “Studying one kind of procedure doesn’t tell you much about the rest of health care,” he said. “A lot of health care is not like knee and hip replacements.”

Michael Chernew, a Harvard health economist, agreed. “Bundles can certainly be a helpful tool in fostering greater efficiency in our health care system,” he said. “But the findings for hip and knee replacements may not generalize to other types of care.”

Christine Yee, a health economist with the Partnered Evidence-Based Policy Resource Center at the Boston Veterans Affairs Healthcare System, has studied Medicare’s previous efforts and summarized studies about them. (I and several others were also involved in compiling that summary.) “Medicare has tried bundled payments in one form or another for more than three decades,” Ms. Yee said. “They tend to save money, and when post-acute care is included in the bundle, use of those kinds of services often goes down.”

One limitation shared by all of these studies is that they are voluntary: No hospital is required to participate. Nor are they randomized into the new payment system (treatment) or business as usual (control). Therefore we can’t be certain that apparent savings are real. Maybe hospitals that joined the bundled payment programs are more efficient (or can more easily become so) than the ones that didn’t.

Another new study in JAMA examines a mandatory, randomized trial of bundled payments. On April 1, 2016, Medicare randomly assigned 75 markets to be subject to bundled payments for knee and hip replacements and 121 markets to business as usual. This policy experiment, known as the Comprehensive Care for Joint Replacement program, will continue for five years. The JAMA study analyzed just the first year of data.

“In this first look at the data, we examined post-acute care because it is an area where there is concern about overuse,” said Amy Finkelstein, an M.I.T. health economist and an author of the study. “In addition, prior work suggested that it’s a type of care that hospitals can often avoid.”

The study found that bundled payments reduced the use of post-acute care by about 3 percent, which is less than what prior studies found. “Those prior studies weren’t randomized trials, so some of the savings they estimate may really be due to which hospitals chose to participate in bundled payment programs,” Ms. Finkelstein said. Despite reduced post-acute care use, the study did not find savings to Medicare once the costs of paying out bonuses were factored in. The study also found no evidence of harm to health care quality, no increase in the volume of hip and knee replacements, and no change in the types of patients treated.

“Savings could emerge in later years because it may take time for hospitals to fully change their behavior, “ Ms. Finkelstein said. In addition, the program’s financial incentives will increase over time; bonuses for saving money and penalties for failing to do so will rise.

On the other hand, Dr. Berenson said, health care providers could figure out how to work the system: “In three to five years, we may see volume go up in a way that offsets savings through reduced payments for a procedure. We’ll wait and see.”

Medicare put its best foot forward by using a randomized design. Not only were the markets selected in a randomized fashion, but providers in those markets were also required to participate. Though common in medical studiesrandomization is rare in health care policy, as is mandatory participation. Nearly 80 percent of medical studies are randomized trials, but less than 20 percent of studies testing health system change are. Organizations that would be subject to the experiments often strongly resist randomizing health system changes and forcing providers to participate.

Unfortunately, the randomization of the Comprehensive Care for Joint Replacement program will be partly compromised in coming years. The Centers for Medicare and Medicaid Services announced last year that hospitals in only half of markets under the program would have to stay in it. Participation is voluntary in the other half, and only one-quarter of hospitals opted in.

Going to a partly voluntary program will make it harder to learn about longer-term effects, Ms. Finkelstein said, and to get at the answers we’re seeking.

DOJ recovers $2.4B in healthcare fraud cases: 4 things to know

https://www.beckershospitalreview.com/legal-regulatory-issues/doj-recovers-2-4b-in-healthcare-fraud-cases-4-things-to-know.html

Image result for false claims act

The Department of Justice obtained $2.4 billion in fraud and false claims settlements and judgments in fiscal year 2017, marking the eighth consecutive year recoveries in the healthcare sector exceeded $2 billion.

Here are four things to know about the DOJ’s false claims and fraud recoveries.

1. The DOJ recovered more than $900 million from the drug and medical device industry in fiscal year 2017. That total includes Shire Pharmaceuticals’ $350 million settlement. The settlement resolved allegations Shire, a multinational pharmaceutical company with its U.S. headquarters in Lexington, Mass., and one of its subsidiaries paid kickbacks and used other unlawful means to induce physicians and clinics to use or overuse Dermagraft, a bioengineered human skin substitute approved by the Food and Drug Administration for the treatment of diabetic foot ulcers. The settlement was the largest False Claims Act recovery by the federal government in a kickback case involving a medical device.

2. The DOJ also reported substantial recoveries from healthcare providers, including Cleveland, Tenn.-based Life Care Centers of America, which agreed to pay $145 million to settle allegations it caused skilled nursing facilities to submit fraudulent claims to Medicare for unnecessary rehabilitation services.

3. In another substantial settlement this year, Westborough, Mass.-based eClinicalWorks, an EHR vendor, and some of its executives and employees agreed to pay $155 million to resolve false claims allegations. The government alleged eClinicalWorks falsely obtained certification for its EHR software by withholding information from its certifying entity. Due to eClinicalWorks’ alleged misrepresentations, healthcare organizations using the company’s software submitted false claims for federal incentive payments, according to the DOJ.

4. In 2017, the DOJ continued to pursue physicians and healthcare executives involved in fraud cases to hold them personally responsible. For example, in 2015, Fort Myers, Fla.-based 21st Century Oncology paid $19.75 million to settle allegations it violated the False Claims Act by billing for medically unnecessary laboratory urine tests and paid bonuses to physicians based on the number of tests they referred to its laboratory. This year, the DOJ secured separate settlements with various urologists who allegedly referred unnecessary tests to one of 21st Century Oncology’s labs.

Healthcare Triage News: Knee Surgery Doesn’t Improve Outcomes, but We Still Do A LOT of Them

Healthcare Triage News: Knee Surgery Doesn’t Improve Outcomes, but We Still Do A LOT of Them

Image result for Healthcare Triage News: Knee Surgery Doesn’t Improve Outcomes, but We Still Do A LOT of Them

The news tells us that arthroscopic surgery for knee arthritis and meniscal tears isn’t worth it. Healthcare Triage told you that a while ago. What’s new? This is Healthcare Triage News.

 

Doctors & Hospitals sending seniors to nursing homes for profit. Is your mom next?

https://www.linkedin.com/pulse/doctors-hospitals-sending-seniors-nursing-homes-your-mom-luke-ph-d-?trk=v-feed&lipi=urn%3Ali%3Apage%3Ad_flagship3_feed%3B4WP7qWHisUr%2FcAPkGiWADw%3D%3D

Raise your hand if you can’t wait to be admitted to a convalescent home someday? For five years I have been asking this question from the stage. And no one has come forward yet.

The fact is that hospitals & doctors are sending patients to nursing homes unnecessarily, and have been for years. Its become the norm. I know, as I am a former hospital CEO.

Were you even advised that your parent or grandparent had a right to go home when they were in the hospital? Or were you just told they were being “transferred” to a nursing home without being given an option? Has it happened to your loved one? Should this be a criminal act? When the patient is your mom the answers become clear.

My mom, bless her heart, has stage seven Alzheimer’s Disease. In my case, being a former hospital CEO, the answers are very clear. How about you? Lets find out.

Hypothetical (or maybe not in some of your cases): Your grandmother or mom is admitted to a hospital and after a few days the doctor or hospital case manager “advises” you that your mom is being “transferred” (not discharged; one word suggest finality and another suggests ‘she is not better yet’) to a ‘rehab facility’ to recover.

Who are you to question the doctor or case manager’s authority? After all, they are the experts.

Who are you to question their authority? After all, they are the experts.

A few days later you are visiting your mom in the “rehab facility” and can’t help but notice the facility is filled with much older, apparently sicker patients, many of whom don’t appear capable of doing any ‘rehab’ and in fact may be completely bed-ridden. Several residents are confused and clearly have Alzheimer’s Disease or dementia as well.

So you ask the therapist who is assisting your mom up and down the set of three stairs, “Some of these folks seem incapable of much physical activity, what type of rehab are they doing?” The therapist responds: “Most of these patients are long term care patients, or custodial as we call them in the industry, and don’t do any daily therapy. They just live here until they die because they are too sick unsafe to go home and live alone.”

“Sounds more like a convalescent home to me than a rehab,” you respond.

“Didn’t the doctor or case manager tell you that your mom was coming to a nursing home?” the therapist asks and continues: “I am surprised that they did not discuss this with you because from what I can see I would have thought your mom would have just gone straight home from the hospital as she was clearly strong enough. She really did not need to come here, but I figured the family insisted she come here.”

Allow me to paraphrase: Your mom was sent to a convalescent home unnecessarily, and potentially against her will (and against your will as well). This is not just a violation of one law, but of two laws. Unfortunately it has become the norm in recent years.

Elderly Hospital Patients Arrive Sick, Often Leave Disabled

Elderly Hospital Patients Arrive Sick, Often Leave Disabled

Ron Schwarz, 79, was hospitalized after falling in the shower. Schwarz is a patient in a special ward at the San Francisco General Hospital known as the Acute Care for the Elderly unit, or ACE. (Heidi de Marco/KHN)

Not A Priority

Hospitals can be hazardous places for elderly patients, who are at increased risk of falling, drug-induced injury and confusion.

But as the nation’s senior population grows, many facilities are ill-equipped to address their unique needs.

Kaiser Health News visited hospitals around the country, reviewed data and interviewed dozens of patients, family members and health providers to document the extent of the problem and highlight possible solutions.

How hospitals handle the old — and very old — is a pressing problem. Elderly patients are a growing clientele for hospitals, a trend that will only accelerate as baby boomers age. Patients over 65 already make up more than one-third of all discharges, according to the federal government, and nearly 13 million seniors are hospitalized each year. And they stay longer than younger patients.

Many seniors are already suspended precariously between independent living and reliance on others. They are weakened by multiple chronic diseases and medications.