Lecture 10/Chapter 12 Flashcards

1
Q

Learning Objectives

A
  • Meaning of health care costs and trend review
  • Factors that led to past cost escalations
  • Describe regulatory and market-oriented approaches to contain costs
  • Why some regulatory cost-containment approaches were unsuccessful
  • Discuss the access to care framework and various dimensions of access to care
  • Describe access indicators and measurements
  • The nature, scope, and dimensions of quality
  • Differentiate between quality assurance and quality assessment
  • Implications of the ACA for health care costs, access, and quality
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Cost, access, and quality introduction

A
  • 3 cornerstones of health care delivery:
  • cost
  • access
  • quality
  • expansion of access will increase health care expenditures
  • cost of health care from a macro and micro perspective
  • equal access to high quality care
  • cost is important in the evaluation of quality
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

quality

A

-up to date capabilities, evidence-based processes, and measuring outcomes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

cost of health care

A
  • trends in national health expenditures
  • should health care costs be contained?
  • consumer price, national perspective, provider perspective
  • 3 sources to assess if spending too much:
    1. international comparisons
    1. rise in private sector health insurance premiums
    1. government spending on health care for beneficiaries
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

reasons for cost escalation**

A
  • third-party payment
  • moral hazard
  • provider induced demand
  • imperfect market -> health care market in the US is neither free***
  • growth of technology and specialization
  • increase in the elderly population
  • medical model of health care delivery
  • multipayer system and administrative costs
  • defensive medicine
  • fraud and abuse- upcoding and anti-kickback statute
  • practice variations- small area variations (SAV)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

cost containment: regulatory approaches

A
  • health planning
  • price controls
  • peer review
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

health planning

A
  • government undertaking steps to align and distribute health care resources so that the system will achieve desired health outcomes for all people
  • health planning experiments in the US
  • certificate of need statutes (CON)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

cost containment: competitive approaches

A
  • competition refers to rivalry among sellers for customers -> technical quality, amenities, access or others
  • demand-side incentives
  • supply side regulation
  • payer-driven price competition
  • utilization controls
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

cost containment under health reform

A
  • medicare payment cuts to providers
  • new taxes imposed
  • reforms contributed to a health care spending slowdown
  • tightening provider payment rates
  • providing incentives to reduce costs
  • medicare projected to spend $1 trillion less by 2020
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

access to care

A
  • key implications of access for health and health care delivery
  • access to medical care, along with environment, lifestyle, and heredity factors
  • access in a benchmark in assessing the effectiveness of the delivery system
  • measures of access reflect if delivery is equitable
  • access is linked to quality of care and efficient use
  • framework of access
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

five dimensions of access

A
  • availability
  • accessibility
  • accommodation
  • affordability
  • acceptability
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

4 main types of access

A
  • potential access
  • realized access
  • equitable or inequitable access
  • effective and efficient access
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

measurement of access

A
  • current status of access
  • using conceptual models access is measured at 3 levels
    1. individual
    1. health plan
    1. delivery system
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

affordable care act and access to care

A
  • insurance coverage and access to health care have increased
  • fewer report problems with medical bills and financial barriers
  • gaps in access to and affordability of care
  • preventive services without cost sharing expanded
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

quality of care

A
  • IOMs quality implications:
  • quality performance has a range from unacceptable to excellent
  • focuses on services provided by the health care delivery system
  • quality may be evaluated from the perspective of individuals and populations or communities
  • emphasis on desired health outcomes
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

with managed care, the balance of power shifted towards

A
  • providers- health care professional
  • supply side- health care facilities
  • demand side- patients**
  • risk shifts to providers
  • supply side and providers are on one side of the equations and demand side and patients are on the other
  • third party of the demand side is insurance
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

dimensions of quality

A
  • micro view focuses on services at the point of delivery and their subsequent effects:
  • clinical aspects
  • interpersonal aspects
  • quality of life

-macro view looks at quality from the standpoint of populations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

quality assessment and assurance

A
  • quality assurance is based on the principles of total quality management (TQM)
  • referred to as a CQI
  • donabedian model
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Donabedian Model**

A
  • three parts of quality assessment
  • structure- the capacity to delivery quality -> building, staff, finance, equipment
  • process- how health care is delivered -> transaction between patients and providers
  • outcome- effects or results obtained -> effects on the health
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

processes that improve quality

A
  • clinical practice guidelines
  • cost-efficiency
  • critical pathways
  • risk management
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

public reporting of quality

A
  • CMS programs on quality
  • AHRQ quality indicators
  • states public reporting of hospital quality
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

CMS programs on quality

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

AHRQ quality indicators

A

-prevention, inpatient, patient safety, and pediatric

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

3 objectives of affordable care act and quality of care

A
    1. make health care more accessible, safe, and patient centered
    1. address environmental, social, and behavioral influences on health and health care
    1. make care more affordable
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

affordable care act and quality of care

A
  • organizations are incentivized to provide high quality care in 2 ways:
    1. penalized for failing to report quality measures
    1. sharing in the savings generated by quality measures
  • the number of patients safety and medical errors has decreased since 2010
  • patient centered outcomes research institute (PCORI)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

summary

A
  • increasing costs, lack of access, and quality concerns pose the greatest challenges
  • lack of universal coverage negatively affects the health status of uninsured groups
  • access to medical care is one of the key determinants of health status
  • health care quality at the micro and macro levels
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

financing equation

A
  • Cost of health care = (cost for each health care service) x (how often that service is utilized)
  • E = P x Q
  • insurance extension to uninsured increases health care expenditures (E)
  • insurance with payment (price=P) influences supply
  • insurance and supply of services determine access and service utilization (quantity of services consumed = Q)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

high quality care

A
  • achieved when: accessible services are efficient
  • cost effective
  • provided in an acceptable manner
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

consumer price

A
  • physicians bill
  • prescription bill
  • premiums
30
Q

national perspective

A

-how much nation spends on health care (health care expenditures)

31
Q

provider perspective

A

-cost of production (staff, salaries, capital, supplies)

32
Q

evaluating national health care expenditures

A
    1. compared to consumer price index (CPI)
  • CPI measures general inflation in the economy and calculates the annual changes
    1. compared to gross domestic product (GDP)
33
Q

trends in national health expenditures**

A
  • US uses a larger precentage of economic resources on health care
  • 2005, 15.2% of GDP was spent on health care -> 5,3
34
Q

reasons for cost escalation

A
  • 3rd party payments
  • moral hazard
  • provider induced demand
35
Q

technology and specialization: reasons for cost escalation

A
  • belief and values
  • high R&D spending
  • innovation that leads to utilization
  • surplus of specialists
36
Q

increase in elderly population: reasons for cost escalation

A
  • increased longevity
  • baby boomers
  • the elderly use nearly three times as much health care as younger people
37
Q

medical model of health: reasons for cost escalation

A
  • misplaced emphasis on medical treatments

- health promotion/diseases prevention takes a back seat

38
Q

multipayer system and administrative costs

A
  • inefficiencies related to:
  • financing
  • insurance
  • delivery
  • payment functions
  • enrollment process
  • ]contracts
  • claims processing
  • utilization
  • denials and appeals
  • marketing
39
Q

defensive medicine: reasons for cost escalation

A

-medial tests and treatments that are not justified, but done for self-protection (CYA) -> cover your assets

40
Q

fraud and abuse: reasons for cost escalation

A
  • waste and abuse
  • inefficiencies and fraud
  • major problem in medicare and medicaid
  • unnecessary services may be provided
  • misallocation of costs to increase reimbursement (in cost plus reimbursement systems)
  • receiving kickback for referrals
  • self-referral (stark laws)- referring to someone you know
41
Q

practice variations : reasons for cost escalation

A
  • small area variations
  • signal gross inefficiencies in the system
  • people practice medicine differently
  • compromise both cost and quality
42
Q

all-payer (single-payer) system: cost containment regulatory approaches

A
  • top down control (global budgets)
  • the US does not have an all-payer system
  • bottom up cost control
  • cost shifting occurs
43
Q

health planning: cost containment regulatory approaches

A
  • governments efforts to align and distribute health care resources to achieved health outcomes
  • no system wide planning and controls in the US
  • certificate of need planning used by some states
44
Q

price controls:: cost containment regulatory approaches

A

economic stabilization program used during the nixon presidency

  • provider induced demand mitigated the effects of price controls
  • DRG based prospective payment systems shifted costs to the outpatient sector
  • PPS extended to other health care sectors
  • arbitrary rate setting by medicaid
  • pay for performance (Provider incentives)
45
Q

peer review: cost containment regulatory approaches**

A
  • Peer review organizations (PROs)
  • statewide private organization
  • review by physicians and other health professionals
  • paid by federal government
  • to review care provided to medicare patients
  • is care reasonable? necessary? appropriate?
  • meets quality?
  • each state has a PRO
  • can deny payment if care not necessary or appropriate
  • PROs are now called quality improvement organizations (QIOs)
46
Q

demand-side incentives: cost containment competitive approaches

A
  • cost sharing by consumers
  • a self rationing mechanism (reduces moral hazard)
  • cost sharing between patient, provider, and insurer
  • RAND experiment (cost sharing = lower costs)
  • the more they increase out of pocket cost -> less utilization
47
Q

supply side regulation

A
  • antitrust laws

- anticompetitve practices can be illegal

48
Q

payer driven price competition: cost containment: competitive approach

A
  • patients are not customers in the economic sense
  • payer driven competition occurs at 2 levels:
  • employers shop for value in health insurance plans
  • managed care shops for best value from providers
49
Q

utilization controls: cost containment: competitive approach

A
  • employed by MCOs
  • they overcome the information gap that patients face
  • control how often members utilize services
50
Q

access

A
  • ability to obtain needed, affordable, convenient, acceptable, and effective personal health services timely
  • does patient have a source of care -> Primary Care profession
  • use of health care -> availability, convenience, referral
  • acceptability of services -> a patients preference and values
  • key implications:
  • a determinant of health
  • a benchmark in assessing effectiveness
  • equity
  • quality and efficient use of needed services
51
Q

accessbility

A

-fit between the locations of approved providers and patients (transportation, convenience)

52
Q

afforadability

A

-ability to pay

53
Q

accommodation

A

-how resources are organized to provide services and the patients ability to use the services (timely appointments, quick service, walk ins etc.)

54
Q

acceptability

A

-compatibility (waiting time, race, culture, gender, etc.)

55
Q

types of access

A
  • potential
  • realized
  • potential
  • equitable/inequitable
  • effective and efficient
56
Q

potential access

A
  • capacity
  • organization
  • financing
57
Q

realized access

A
  • type
  • site
  • purpose of health care serivces
  • are they meeting the needs
58
Q

equitable/inequitable access

A

-distribution of health care to patients perceived need

59
Q

effective and efficient access

A

-links realized access to health outcomes

60
Q

institute of medicine definition of quality of care

A
  • increased likelihood of desired health outcomes

- use of current professional knowledge

61
Q

micro view of quality

A
  • clinical (technical) aspects
  • interpersonal aspects
  • individual experinces
  • quality of life:
  • general HRQL
  • disease specific HRQL
  • institution related quality of life
62
Q

macro view**

A

-population

63
Q

quality assurance

A
  • based on total quality management (TQM) -> allows improving
  • similar to continuous quality improvement (CQI) and quality improvement (QI)
  • time entering facility to time fully recovered
  • a step beyond quality assessment
  • cannot occur without quality assessment
  • system wide commitment to engage in the improve of quality on an ongoing basis
  • analyze what happened and how it can be improved
64
Q

quality assessment

A
  • measurement of quality against an established standard
  • use of data
  • subjective measures must be quantified
  • measurement scales must have:
  • validity- extent to which it actually assesses what it purports to measure
  • reliability- extent to which same results occur from repeated applications -> repeatable
65
Q

structure (resources): donabedian model

A
  • facilities: license, accreditation
  • equipment
  • staffing levels
  • staff qualifications
  • staff training
  • distribution of hospital beds, physicians, in a given population
66
Q

process (delivery of care): donabedian model

A
  • clinical practice guidelines (medical practice guidelines)
  • evidence based protocols
  • professional consensus when scientific evidence is lacking
  • critical pathways:
  • a timeline
  • identifies planned medical interventions
  • with expected patient outcomes for diagnosis
67
Q

aspects of process: cost efficiency and risk management: donabedian model***

A

COST EFFICIENCY:
-do benefits exceed the costs
-underutilization and overutilization are based on cost efficiency
RISK MANGEMENT:
-proactive
-efforts to prevent adverse events related

68
Q

outcomes: donabedian model

A
  • final results
  • bottom line measure of effectiveness
  • recovery, improved health
  • postoperative infections, nosocomial infections, iatrogenic illnesses, re-hospitalizations
  • malpractice litigation
  • patient satisfaction
  • HRQL (health related quality of life)
69
Q

HEDIS

A
  • health plan employer data information sets
  • standard for reporting quality in managed care plans
  • measures: effectiveness, access and availability, satisfaction, health plan stability, utilization, cost, informed choices
70
Q

quality report cards***

A
  • HEDIS

- CMS program on quality

71
Q

managed care increased the rate of growth in health care spending between 1993-2015

A

health care spending increased (because it always does) BUT the rate went down
-false

72
Q

prevention and lifestyle behavior changes to promote health is NOT the major focus of the medical model

A
  • true

- wellness is holisitic approach