As we prepare for the 30th Anniversary AcademyHealth Annual Research Meeting (ARM), we’ve asked leaders in the field to share some of their memories of the event and/or perspectives on how the field has changed since our first meeting in 1983. Below is a submission from Dr. Carolyn Clancy, Director of the Agency for Healthcare Research and Quality (AHRQ).

DrClancy250[1]

Ten years ago, the Agency for Healthcare Research and Quality (AHRQ) published its first National Healthcare Quality and Healthcare Disparities Report. The reports, requested by Congress on an annual basis,[i] sought basic information on two important questions:  What are the national trends in the quality of health care provided to the American people?  And, what are the prevailing disparities in health care delivery as they relate to racial and socioeconomic factors in our priority populations?

In certain respects, these types of questions mirror the analytical framework that health services researchers use as we attempt to understand a wide range of cost, access and quality issues.  We define a significant research question, collect and crunch voluminous amounts of data, describe the magnitude or direction of change informed by that data, and articulate implications for policy and future research. Occasionally, research findings can inform a current policy debate or confirm or refute the value of a particular intervention.

As AHRQ’s Director, I strongly support health services research that deepens our understanding of the status and impact of changes to our health care system.

But today, observing, measuring, and reporting back our findings to researchers, policymakers and others with similar expertise is no longer good enough.  At a time when implementation of the Affordable Care Act compels us to deliver high-quality, safe, and cost-efficient care, we need to embrace collaborative, or participatory, research models.

Many of AcademyHealth’s members and readers of Health Services Research are likely to be familiar with the emerging interest in collaborative research. Briefly, this model calls on researchers to work with the “end users” of the information generated by that research – hospitals and health systems, clinicians, advocacy groups, and, most important, patients themselves.

As Andy Bindman’s recent Health Services Research editorial points out, this collaborative approach clearly represents the leading edge for health services researchers focused on informing policy.  For example, the Keystone Project, funded by AHRQ, involved close collaboration by the Johns Hopkins team with the Michigan Hospital Association, Blue Cross Blue Shield of Michigan, frontline clinicians, and hospital leaders.[ii]

AHRQ’s authority for comparative effectiveness research requires ongoing consultation with stakeholders to identify priorities for research.   Stakeholders also have ample opportunity to comment on specific topics and draft final reports.  Both the Patient-Centered Outcomes Research Institute and the Centers for Medicare and Medicaid Innovation are funding the researchers who are collaborating with the end-users of their work. [iii]

I don’t underestimate the enormous change that the shift to collaborative research represents to those of us trained – and rewarded – by the traditional, top-down, model. Now, instead of us defining the research question, we must seek the input and perspective from the end users at the outset and throughout the research process, respond to and act on feedback that we hadn’t considered before, and better communicate our findings to new audiences in ways they can understand. All of this will take place against the backdrop of funding challenges that are an ongoing reality.

How might participatory research work — not just in concept, but in reality?  Let’s use AHRQ’s latest Quality and Disparities reports, which are being published in this month and reflect large amounts of data compiled in 2012.[iv] The reports found that hospitalizations for uncontrolled diabetes are about four times higher for low-income groups (41 percent vs. 10 percent), and about three times higher for blacks than for whites (62 percent vs. 14 percent).

To many of us, this data is yet another unfortunate confirmation of findings that have been reported for years. How might a collaborative research approach begin to change some of these entrenched patterns?

Advocate Health Care, a health system outside of Chicago, is beginning to translate well-known research findings into genuine improvements in patients’ health.[v]  The system, an accountable care organization (ACO), has hired care coordinators for high-cost patients, including those with diabetes, who interact frequently with them on managing their disease.  It also provides doctors’ offices with report cards on how their patients are faring.  Advocate has seen its overall admissions drop by 6 percent, and hospital days are down by 9 percent.

Because it is a large, clinically and technologically integrated health system, Advocate’s approach to putting knowledge into practice in caring for high-cost patients will not work everywhere. But it is already providing insight into the kind of information that end-users – in this case, doctors, care coordinators, and patients – need to manage a costly chronic disease more effectively and efficiently.

Translating health services research knowledge and disseminating it more broadly is a complex undertaking, but signs of change in its support have already emerged.

This general topic was the focus of one session at AcademyHealth’s 2012 annual research meeting. [vi] One fascinating takeaway of that session was the trend by academic journals to launch rapid-cycle peer review to speed the usefulness of the research findings.  Frontiers in Public Health Services and Systems Research, a new journal from the National Coordinating Center for Public Health Services and Systems Research, is targeting an 8- to 10-week timeframe from submission to publication of peer-review articles that include “brief descriptions of preliminary findings from ongoing or recently completed empirical study” or quality improvement program.

AHRQ proudly supports the Electronic Data Methods (EDM) Forum led by AcademyHealth.  The EDM Forum facilitates collaboration on the use of electronic clinical data for the conduct of comparative effectiveness research, quality improvement, and clinical decision support by encouraging exchange and collaboration among researchers, funders, and other stakeholders.[vii]  eGEMs (Generating Evidence & Methods to improve patient outcomes), a product of the EDM Forum, is an open-access journal focused on using electronic clinical data to advance research and quality improvement, with the overall goal of improving patient and community outcomes.

Momentum is also taking place on engaging patients at the outset of major research undertakings.  A newly appointed advisory panel on patient engagement was recently convened by PCORI, which will help the institute refine and prioritize research questions and demonstrate meaningful patient and stakeholder engagement efforts.[viii] Thirteen of the 21 members represent patients, caregivers, and patient advocates.

In ways not envisioned 30 years ago, the challenges facing health services researchers today are as closely aligned as the opportunities for success.  Your willingness to fully embrace collaborative research will influence the health of our nation’s population for years to come.

 

Carolyn M. Clancy, MD, is Director of the Agency for Healthcare Research and Quality, Rockville, MD.



[i] U.S. Congress, 106th Session. Healthcare Research and Quality Act of 1999.  Available at: http://www.ahrq.gov/policymakers/hrqa99a.html

[ii] Report Organization & Project Background: Final Report on the National On the CUSP: Stop BSI Project. January 2013. Agency for Healthcare Research and Quality, Rockville, MD. http://www.ahrq.gov/professionals/quality-patient-safety/cusp/clabsi-final/clabsifinal1.html

[iii] Bindman, A. The Evolution of Health Services Research. Health Services Research 48:2, April 2013.

[iv] Agency for Healthcare Research and Quality.  2012 National Healthcare Quality and Disparities Reports.  May 2013.  Available at:  www.ahrq.gov/research/findings/nhqrdr/index.html.

[v] Lowrey, A. A Health Provider Strives to Keep Hospital Beds Empty.  New York Times, April 23, 2013.  Available at: http://www.nytimes.com/2013/04/24/business/accountable-care-helping-hospitals-keep-medical-costs-down.html?hpw

[vi] Academy Health. Using HSR to Influence Policy Change and Population Health Improvement, Research Insights. Available at: http://www.academyhealth.org/files/RI2013PopHealth.pdf

[viii] Patient-Centered Outcomes Research Institute. Patient-Centered Outcomes Research Institute Finalizes Multi-Stakeholder Advisory Panels. Press release, April 1, 2013. Available at: http://www.pcori.org/2013/advisory-panels/

 

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We have long known that one of the reasons that health care costs so much in the United States is the prices. It’s an unsatisfying answer, but it’s just true that health care costs so much because it… costs so much. Things are expensive because they can be.

Stephen Brill described this fact in detail in what is the longest article ever published in Time magazine. It is full of anecdotal stories of patients who were hit with enormous hospital bills that seemed completely out of proportion to the care they received. More important, hospitals appeared to charge whatever they liked to people without insurance, while charging much less to those who had help paying for their care.

The plural of anecdote is not data, however. Until this point, it has been almost impossible to examine the difference in costs between hospitals in any rigorous manner. That, however, has now changed:

As part of the Obama administration’s work to make our health care system more affordable and accountable, data are being released that show significant variation across the country and within communities in what hospitals charge for common inpatient services.

The data provided here include hospital-specific charges for the more than 3,000 U.S. hospitals that receive Medicare Inpatient Prospective Payment System (IPPS) payments for the top 100 most frequently billed discharges, paid under Medicare based on a rate per discharge using the Medicare Severity Diagnosis Related Group (MS-DRG) for Fiscal Year (FY) 2011. These DRGs represent almost 7 million discharges or 60 percent of total Medicare IPPS discharges.

It’s important to note that these data are not perfectly complete. They don’t represent every single facility in the United States, nor every single aspect of care. However, they account for more than enough to give us a representation of what’s going on in this country. You can go to the CMS website and download the data yourself in Excel or CSV formats.

The numbers are hugely variable. As Sarah Kliff points out, the cost for a joint replacement could run from just over $5000 to more than $223,000, with an average of about $52,000. How can that be? Even looking at states, instead of counties, the results are all over the place. Treating pneumonia could cost under $10,000 in one state and more than $50,000 in another.

Of course, relatively few people pay these actual prices. The variability exists, but not to the extent we likely see here. Anyone who has health insurance will pay far less, because their plan will have negotiated for a discounted rate. This is especially true of Medicare and Medicaid. Their large purchasing power allows them to force hospitals to accept much less in the form of reimbursement in order to handle the volume of patients those plans control.

It’s individuals – without the ability to negotiate in groups – who get stuck with these charges. Ironically, it’s mostly the uninsured, who lack even the basic protections against health care costs, who might get stuck with an astronomical bill.

That will, of course, change under the Affordable Care Act. Making these data public may get policymakers or advocacy groups to act in order to bring thee prices more in line with each other. But there’s a larger point above the actual numbers themselves. Individuals will no longer contract individually for health care. Theoretically, everyone will be represented by an insurance company, and everyone will benefit from larger purchasing power. If no one is uninsured, no one will be paying these prices at all. It may not reduce the variability all at once, but the Affordable Care Act should immediately reduce the actual numbers of people who might be subject to the prices in the database. That’s certainly a step in the right direction.

–Aaron Carroll, M.D., M.S.

 

Updated by AcademyHealth, May 8, 2013 at 2:30 p.m.: 

RWJF and CMS to Hold Webinar on Hospital Pricing Data
AcademyHealth will facilitate a joint webinar by RWJF and the Centers for Medicare & Medicaid Services on May 15, 2013 (2:00 – 3:30pm EDT) to discuss the new hospital pricing data. Details on how to join will be forthcoming on our website. If you would like to be notified when registration opens, please email us.

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The recent macroeconomic debate over the meaning of the work of Harvard economics Carmen Reinhart and Kenneth Rogoff is an opportunity for epistemic reflection, as is the flood of analysis (some of it mine) around the latest work oOregon’s Medicaid expansion by lottery.  What can really be learned from a single study and how do we collectively improve our communication around limitations for lay audiences? 

Of course the answer depends on many things, and, in particular, the nature of the study’s methods. Yet, even when methods are about as good as can be, we probably should never trust a single study with high confidence. Most serious consumers of the products of medical or social science know that the chances of a single study being wrong or, to be more precise, not being fully right, are significant. Even a well done study has limitations, which is why one is on safer ground examining a body of work, composed of many studies using a diversity of methods and data sources.

The full set of limitations of each individual study are rarely clearly articulated beyond the original publication itself, if they are even done so there. Yet the limitations are as important as the study itself. Even the perfect study — if ever there were such a thing — is only perfect in a narrow range of experience, and perhaps only laboratory reproducible experience.

Take, for example, the randomized controlled trial (RCT). It’s reasonably considered the gold standard of social science methods. When you read the results of a well-conducted RCT, does that mean you can take them and run with it? Not so fast. They may not apply outside the population studied. Sometimes that population is more narrow than you presume it to be or than even the authors tell you. Sometimes it is too small to draw useful conclusions.

Researchers should be forthcoming about this and other limitations, and many are. Yet one factor, the nonenrollment rate, or the proportion of individuals considered for but omitted from the trial, is not reported for a sizable proportion of RCTs.

In a Research Letter in JAMA Internal Medicine, Keith Humphreys and colleagues report on their study of the 20 most influential RCTs pertaining to each of 14 prevalent chronic disorders, 280 studies in total.

Only 145 studies (51.8%) provided sufficient information to allow calculation of the nonenrollment rate. These RCTs had a mean (SD) nonenrollment rate of 40.1% (23.7%). For 6 of the 14 diseases, the influential trials included at least 1 study with a nonenrollment rate higher than 90%. [...]

Only 35.0% of studies (n=98) provided sufficient information to categorize reasons for nonenrollment. In these studies, an average of 27.3% of participants did not meet eligibility criteria, 11.2% refused participation, and 3.7% were not enrolled owing to other reasons.

They do report that the trend in reporting nonenrollment rates is improving. In 2010, for example three-quarters of studies examined did report it.

There are often very good reasons not to enroll certain patients in studies. Children and elderly individuals, for example, are particularly vulnerable and it may, for this reason, be considered unethical to offer certain experimental treatments. Nonenrollment isn’t always the researcher’s fault either. Many patients refuse to participate in a trial, which is their right. Sometimes the sample you have is all you can reasonably obtain. Still, it imposes limitations that need to be considered in evaluating the results.

Nonenrollment does threaten external validity. Matters are even worse when it or the reasons for it are not reported. It’s hard to fathom a good, patient-centered reason to withhold such information from study reports.

I have not touched on any of the other, well-known threats to study validity. Whether RCTs or other methods, studies are only as good as fallible humans can make them, and rarely even that good. Reporting of them in the media is often even worse, famously confusing correlation for causation, for example, or overstating the import of results that are not statistically significant. From data registries to publicly reporting study hypotheses in advance of analysis, we know a great deal of ways to potentially improve the reliability and credibility of studies.

To all this, I want to add another point. The language of journal articles and the press releases and author interviews that accompany them is usually constructed to do more than convey science. It is also a means of self and institutional promotion. In this less scientific context, careful delineation of limitations and issues of causality or statistical significance often take a back seat. They’re just not the most exciting way to promote academic work, and we all know it. This is part of the art of academic communication. And it has its dangers, as Reinhart and Rogoff learned the hard way.

When it comes to medical science, the connection between a misleading or misunderstood study and patient care may be more direct and, therefore, more harmful. I don’t have a ready solution to this challenge. At least we should discuss it more. Are we all as honest as we could be in disseminating our work or as vigilant as we might be in getting out in front of the media’s misunderstanding of it? What would it take to be more so? Would our careers suffer if we were?

Austin Frakt, Ph.D.

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As we prepare for the 30th Anniversary AcademyHealth Annual Research Meeting (ARM), we’ve asked leaders in the field to share some of their memories of the event and/or perspectives on how the field has changed since our first meeting in 1983. Below is a submission from Dr.  Sherry Glied, Professor of Health Policy and Management, Mailman School of Public Health, Columbia University and former Assistant Secretary for Planning and Evaluation at the U.S. Department of Health and Human Services. 

sherryGlied

Early in President Obama’s first term, it became evident that achieving bipartisan support for comprehensive health reform legislation was unlikely. Then, on June 20, 2009, Al Franken was sworn in as Senator from Minnesota, giving the Democrats a filibuster-proof majority of 60 votes in the Senate, a supermajority that lasted only until January 19, 2010, when Scott Brown was elected in Massachusetts — a total of 213 days. In that period, just over 30 weeks, Congressional committees developed legislation, the Congressional Budget Office (CBO) scored proposals, and both Houses passed laws. Both the House and Senate bills were very wide-ranging in scope, encompassing everything from reform of the insurance market, to new subsidies, to extensive delivery system reforms, to public health and workforce policies, and much more.

The torturous path that led to final passage of the Law meant that the Department of Health and Human Services had already missed several statutory deadlines (codified in the December Senate bill that was never amended) even before the Presidential signing ceremony. With the Law finally in hand, the Executive branch immediately began work on implementation. By the end of July, new regulations had been promulgated establishing an early retiree reinsurance program, a web portal, and a pre-existing condition insurance program, and defining the rules governing dependent coverage, grandfathered plans, lifetime and annual limits, consumer protections, preventive services, and claims and appeals.

A lot of bytes have been flashed over the pros and cons of the law, the legislative maneuvering, the strategy and tactics – but with that timeline in mind, it’s also reasonable to ask “How could so much be achieved in so little time?” To be fair, Medicare passed a little quicker (President Johnson signed it just 204 days after proposing it to Congress), but Medicare was much simpler – it built on the Social Security infrastructure and made no effort at all at reforming the delivery system, containing costs, or addressing public health — and Medicare passed long before the CBO, whose cost estimates had since been one of the major roadblocks to reform, was invented.

Much of the credit for the rapid passage of the Act, and the equally speedy rollout of implementing regulations, goes to the community of health services researchers. After the demise of the Clinton health reform plan, many saw health reform as impossible and politically toxic. Yet research continued, and the knowledge base on issues like how the non-group market worked, how people responded to new coverage opportunities, how delivery system reform connected to cost containment and quality improvement, and how much mental health parity might cost advanced considerably after 1993. In effect, researchers ensured that future health reform efforts would be ready with numbers and ideas when they were needed.

Health reform is a challenging issue for the political process. The beneficiaries are diffuse and often invisible. The opposition is large, diverse, and well-funded. The issues are invariably arcane. The accumulation of data and studies over the 1990s and 2000s helped to overcome the opacity and lack of public salience of the problems motivating health reform. Research helped to persuade policymakers and opinion leaders both that something needed to be done and that politically viable options were within reach.

Once interest in reform was re-ignited, the health services research literature took on even greater importance. As the CBO began to develop its health reform model, in the fall of 2007, it turned to that literature to ground its parameter estimates. When staffers on the five different Congressional committees involved in writing legislation sought ideas and advice, they turned to that literature and to its authors. When HHS began to draft regulations, the health services research literature was our almanac. As political reporters began to cover the legislative tactics around passage of legislation, they could turn to a set of credible and established experts to fill them in on policy details.

The political process is a frustrating ordeal for health services researchers. Our work is misinterpreted, ignored, or taken out of context. Legislation is invariably messy, self-contradictory, and full of inappropriate compromises, gumming up our tidy models. Any good health policy researcher should be able to suggest at least one significant improvement to the Affordable Care Act (although we are likely to disagree among ourselves about it!).  Nonetheless, the process of passage and implementation of the Affordable Care Act suggests that the political process and the health services research enterprise can and do complement one another. As reform implementation continues, the work of health services researchers, assessing and evaluating alternative options and monitoring processes and outcomes, are likely to remain critical to achieving the goals of the Affordable Care Act.

–Sherry Glied, Ph.D.

 

Registration for the 2013 AcademyHealth Annual Research Meeting is now open. 
The ARM is the premier forum for health services research, where more than 2,400 attendees gather to discuss health policy implications, sharpen research methods, and network with colleagues from around the world. The ARM program is designed for health services researchers, providers, key decision makers, clinicians, graduate students, and research analysts.

If you’d like to add your own reflections to our website, you can do so here.

 

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On April 18, the Commonwealth Fund released a case study written under the auspices of AcademyHealth’s Beacon Evidence and Innovation Network (BEIN) titled, “The Colorado Beacon Consortium: Strengthening the Capacity for Health Care Delivery Transformation in Rural Communities.” The case study focuses on the Colorado Beacon Consortium, one of 17 communities nationwide that was competitively selected to test and demonstrate how implementing new and/or enhancing existing health IT infrastructure could drive measurable improvements in care and health, and also reduce unnecessary costs.

The Beacon Community Program was created as a landmark project of the HITECH Act, which was part of the 2009 economic stimulus package. Designed to support a diverse set of communities already recognized as leaders (or “beacons”) in implementing health IT infrastructure to support care delivery transformation and payment system innovations, the program aims to demonstrate the impact of further health IT investments on care quality, efficiency, and population health. Another aim of the program is to yield actionable insights and lessons learned to guide others wishing to embark on IT-enabled community transformation initiatives. Through the BEIN, AcademyHealth and the Commonwealth Fund have sought to maximize the quantity and utility of evidence generated by the Beacon Communities, and to amplify their experiences and insights through publication and dissemination support.

This case study describes how the Colorado Beacon Consortium has used electronic health records to collect, analytic tools to interpret, and health information exchange platforms to share the rich clinical information necessary to support care transformation in seven rural counties on Colorado’s Western Slope. Early results indicate that system changes enabled by these IT tools are beginning to yield improvements in preventive and chronic care, as well as provider teamwork and workflow. The Colorado Beacon experience also lends important insights on how investments in health IT infrastructure support and facilitate ongoing health care delivery and payment reform efforts.

As unprecedented effort and resources are being devoted to testing innovations in care delivery, coverage, and payment, attention to all forms of evidence will be critical. It may be years before we begin to fully understand or appreciate the impact of the Beacon Community Program and other initiatives, such as the Center for Medicare and Medicaid Innovation’s Comprehensive Primary Care Initiative and the Robert Wood Johnson Foundation’s Aligning Forces for Quality, but early signals and stories can contribute great value. This case study and future publications may yield useful insights for others engaging in community-based quality improvement initiatives, and may also heighten our collective awareness of key considerations, challenges, and promising practices. Communities across the United States—whether of similar or different demographics, geography, or socioeconomic status—may be able to learn from the Colorado Beacon experience and apply it to their own health IT implementation efforts.

Through this case study and future BEIN publications, AcademyHealth, the Commonwealth Fund, and their partners hope to synthesize, translate, and move the knowledge gained from these 17 Beacon Communities into practice.

To read the full case study, click here.
To learn more about the BEIN, click here.
To learn more about the Beacon Community Program, click here.

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Last week I had the opportunity to travel to Lexington, Kentucky and to attend my first Keeneland Conference, an already iconic event that brings together all the folks who do, and care about, Public Health Services and Systems Research (PHSSR). This is more than a field; it is a movement and a tight knit but growing community. Led by F. Douglas Scutchfield (known to all as ‘Scutch’) and Glen Mays, both senior faculty from the University of Kentucky, this movement has grown in large part because of the support of the Robert Wood Johnson Foundation and the remarkable recognition by public health practitioners that they need rigorous evidence to do their best with highly constrained resources.

Keeneland’s participants traveled from all corners of the country. They are at every level of career, many disciplines, and are hearteningly diverse in terms of race and ethnicity. I had a chance to hear fine presentations and examine posters at a leisurely pace, and to think, talk, and plot future collaborations. Thirty minute breaks between sessions made networking possible without having to miss out on presentations. I was most taken by the plenary speakers, which included Joe Selby from PCORI; Bill Roper, who has had every position in both public health and health care during his long career; and Paul Kuehnert, from RWJF. All the keynoters were thought provoking and inspiring, but I was particularly impressed with Paul. A pediatric nurse practitioner by training, his thought provoking suggestions for ‘re-imagining public health’ suggest that the Foundation’s new public health team lead has his finger right on the pulse. Paul suggested that “the same old same old” won’t work in a time of both resource constraints and emerging opportunities. His response to the ACA was a call to action to the research, practice, and policy communities.

Bill Roper, borrowing from AcademyHealth Board Member Eduardo Sanchez, noted that public health has largely been, until now, about “Sinks and Toilets,” i.e. sanitation. The 19th century is over; the 21st society is much more complex and so are our health problems. To me, this means that public health needs be consistently and strategically involved with communities of all kinds, with health care providers of all kinds, and with new ideas. We have to figure out how to improve population health beyond just largely invisible “health protection” activities (though those are clearly essential). We also need interactions that will put public health in view. Or, as Paul suggested, public health leaders need to become the “Chief Health Strategists of their communities.”

A major conference theme was dissemination. How can we produce, translate, and disseminate research that helps the field to be become much better at implementing policies and services that work, while simultaneously building public health’s credibility and attracting necessary, but scarce, resources?

PHSSR, in emphasizing work with Practice Based Research Networks, has found a key strategy to influence practice. Influencing policy is a bigger lift. Few public health researchers have formal training in how policy gets made. They don’t naturally gravitate to research questions that policy makers might find compelling, which is where evidence feeds into urgent decisions.

AcademyHealth can certainly contribute here. Our members, the new Translation and Dissemination Institute, and our connections to policymakers in Washington position us uniquely to both inform, and to listen to, policymaker needs.

My graduate education melded public health and health care. So has my career. I call on my fellow researchers in both fields to put their heads together and bring the learning of each field to the other. This is especially important as we try to better integrate public health and medical care, as we reach for improvements in population health as part of the Triple Aim, and as the structure and financing of health care changes in both evolutionary and revolutionary ways.

I’m looking forward to continued interaction with the PHSSR community at the Interest Group Meeting in Baltimore on June 25-26. I urge you to attend that meeting, and to join what is now AcademyHealth’s now largest IG!

I also plan to come back to Keeneland (and not just for the bourbon). These folks, especially the younger ones, are too interesting, too determined, and too inspired to ignore. I want to become a member of this emerging research community, and bring what I can to them as an old-timer in health service and policy research. Join me.

–Shoshanna Sofaer, Dr.P.H.

 

Dr. Sofaer is Robert P. Luciano Professor of Health Care Policy, School of Public Affairs, Baruch College, CUNY, and a senior fellow for public health research translation at AcademyHealth, where she is supporting new initiatives to increase the use of evidence to inform public and population health policy. 

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Many believe that one of the reasons that health care costs are so high in the United States is because financial incentives are misaligned. In a fee-for-service system, providers and facilities make more money the more they do. This can lead to an over-use of services, since those in the health care system are encouraged to do more, not less. Even in a less fee-for-service focused system, the incentives are in the wrong direction. Physicians and offices make money when they see patients. Hospitals make more money when they admit patients.

A recent study published in JAMA illustrates an even more perverse financial incentive. In “Relationship Between Occurrence of Surgical Complications and Hospital Finances,” Sunil Eappen and colleagues examined how surgical complications effect hospital finances:

Design, Setting, and Participants: Retrospective analysis of administrative data for all inpatient surgical discharges during 2010 from a nonprofit 12-hospital system in the southern United States. Discharges were categorized by principal procedure and occurrence of 1 or more postsurgical complications, using International Classification of Diseases, Ninth Revision, diagnosis and procedure codes. Nine common surgical procedures and 10 major complications across 4 payer types were analyzed. Hospital costs and revenue at discharge were obtained from hospital accounting systems and classified by payer type.

The main outcomes of interest were measures of how much hospitals spent and earned on patients who both had surgical complications. Why? Because under the reimbursement system of the United States, hospitals actually might make more money when complications occur.

The first thing to note is that most patients did not experience a complication. Of the more than 34,000 discharges studied, only 5% had a postsurgical complication. But a patient with private insurance who had a complication resulted in a much higher profit to the hospital ($55,952 versus $16,936). Complications were also associated with a higher profit per patient with Medicare ($3629 versus $1880).

Please understand that I (and I’m sure the authors) do not believe that any hospitals or physicians are intentionally harming patients in order to make more money. That shouldn’t be the take home message from this study. What’s important to note is the problem the current system poses to any kind of reforms that might improve quality.

What are the financial incentive for hospitals to reduce surgical complications? Under the current system, hospitals actually stand to lose money if they do so. Since they are actually rewarded for caring for these issues, eliminating them will actually hurt their bottom line. Those who might see a financial benefit from reducing complications are payors and patients themselves. But those stakeholders aren’t necessarily responsible or empowered to make changes in processes of care.

If we want a system where hospitals are fighting to reduce complications and improve quality, then we need to find a way to induce them to do so. The current state of affairs does the opposite. We could, perhaps, find ways to pay more for procedures without complications than those with them. Or, we could refuse to pay for care for complications at all, providing a strong incentive for  hospitals to prevent them entirely.

As things stand, however, we are asking many in the health care system to do things that are both hard and costly to them. That’s never a good combination if we want to see real change.

–Aaron Carroll

Dr. Aaron E. Carroll is an associate professor and vice chair of health policy and outcomes research in the department of pediatrics at the Indiana University School of Medicine. He blogs about health policy at The Incidental Economist and tweets at @aaronecarroll

 

As part of our ongoing effort to raise awareness of health services research and increase its application in policy and practice, AcademyHealth has partnered with Austin Frakt, Ph.D., and Aaron Carroll, M.D., M.S., to contribute posts on the subjects of health care costs, delivery system transformation, and public and population health – areas AcademyHealth has identified as a priority in the current policy environment. As regular contributors, they’ll be discussing current events with an eye toward how new and existing research informs the issues. 

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As we prepare for the 30th Anniversary AcademyHealth Annual Research Meeting (ARM), we’ve asked leaders in the field to share some of their memories of the event and perspectives on how the field has changed since our first meeting in 1983. Below is a submission from Dr. Anne Beal, Deputy Executive Director and Chief Operating Officer, Chief Officer for Engagement, Patient-Centered Outcomes Research Institute (PCORI), and a former member of the AcademyHealth board of directors. 

abealHealth disparities research was barely in its infancy 30 years ago at the time of the first AcademyHealth Annual Research Meeting. Few people recognized the increased illness and death rates experienced by African Americans and other minority racial and ethnic groups. However, the past two decades have seen exponential growth in health disparities research. And today the field is poised for an additional burst of productivity, taking advantage of opportunities created by the Affordable Care Act (ACA) and recognizing that many factors must be simultaneously addressed to advance health equity.

In 1985, a Federal report first called attention to the disproportionate burden of illness and death experienced by underserved racial and ethnic communities. Margaret Heckler, President Ronald Reagan’s Secretary of Health and Human Services, described that disparity as “an affront both to our ideals and to the ongoing genius of American medicine.” A few years later, the American Medical Association called for the elimination of the “unjustifiable” differences in medical treatments provided to African Americans and whites.

Those disparities received little additional attention during the following decade. Then, the discourse began to change. The Clinton Initiative on Race in 1998 provided the first funding for studies on health disparities providing a source of support for disparities researchers. In 1999, Dr. Kevin A. Schulman and his colleagues published an influential article demonstrating physicians’ racial bias in treatment of patients complaining of chest pain. Four years later, the Institute of Medicine released a landmark review that pulled together the research literature to present irrefutable evidence for pervasive disparities in health care. These events helped foster a new social milieu that considered health and healthcare disparities to be unacceptable.

The AcademyHealth Annual Research Meeting was central to the subsequent activity in disparities research. At that meeting, you could report work on health disparities and hear about findings across many areas. Unlike specialty medical conferences, the meeting covers a broad range of topics, from child health to eldercare. As such, it has provided an opportunity for both junior and senior researchers to report findings in the cross-cutting area of disparities research. Furthermore, the AcademyHealth meeting emphasizes policy-relevant research, so it has been a place to explore health effects at the institutional level. In my previous positions as a funder, first at the Commonwealth Fund and then at the Aetna Foundation, I found it very useful to hear from grantees and potential grantees at this meeting to learn about emerging issues in disparities research.

The first wave of health disparities research described the problem. Again and again, as researchers addressed different medical problems and treatment options, disparities showed up. Over the years, the methods for research improved, particularly in the areas of collecting race and ethnicity data to allow for the identification of disparities. As a result of that work, we now have federal standards for collecting data on race and ethnicity and advanced methods to analyze the results.

Simply documenting disparities is not sufficient. We need to discover how to eliminate them. To develop effective interventions, we must answer the question: What causes health disparities? A refocused research effort has identified many factors, including segregation, geography, provider resources, unconscious bias, and communication barriers. The work has shown that racial and ethnic differences can be eliminated under some conditions, such as when quality of care increases and when people have regular sources of medical care.

Nevertheless, recent evaluations show that health and health care disparities persist even after targeted interventions. Solving the problem requires the collective efforts of both the public and private health care systems. The ACA includes provisions to improve health care access and quality that could significantly benefit racial and ethnic minority populations. That legislation also provides the health services research community with an unprecedented, coordinated set of opportunities to develop, test, and implement interventions to advance heath care equity. For example, ACA elevates the National Center on Minority Health and Health Disparities to an Institute and creates the Patient-Centered Outcomes Research Institute (PCORI), which emphasizes research on health disparities and potential means to eliminate them.

At this juncture, we need to apply the rigor of health services research to the complex problem of discovering what interventions work. Researchers must elucidate the multiple factors that contribute to disparities and use that knowledge to design multifaceted interventions that reduce disparities in care and outcomes. It isn’t productive to focus on a particular factor; researchers must simultaneously consider many indicators of health and health care to create an evidence-based action plan for improving health care quality.

Personally, I’d also like to note the increasing diversity of perspectives represented by AcademyHealth. When I first attended the annual meeting in 1990, I saw few people who looked like me. Since then, there’s been growing diversity on a number of fronts. I‘ve seen a large number of women and people of color coming into the field. There’s also more variety in the participants’ specialty areas. Previously there were large numbers of researchers from finance and policy fields like health economics, but the organization now includes more physicians, nurses, and other health professionals, and there’s an emphasis on encouraging young researchers and embracing the diversity of membership. Also, the scope has expanded to include more real-world topics, where policy meets practice, with a valuable emphasis on public health and translating research findings so that they have an impact in the field.

–Anne C. Beal, MD, MPH

Registration for the 2013 AcademyHealth Annual Research Meeting is now open.  The ARM is the premier forum for health services research, where more than 2,400 attendees gather to discuss health policy implications, sharpen research methods, and network with colleagues from around the world. The ARM program is designed for health services researchers, providers, key decision makers, clinicians, graduate students, and research analysts.

If you’d like to add your own reflections to our website, you can do so here.

[Editor's note: AcademyHealth is committed to promoting diversity among our members and the field at large in terms of race, ethnicity, disability, sexual orientation, gender identity, and other historically underrepresented backgrounds. Yesterday, members received the most recent iteration of our salary survey, which includes questions intended to help us understand the current state of diversity among our membership. We encourage you to complete and return the survey. For questions, please contact membership@academyhealth.org]

 

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As we prepare for the 30th Anniversary AcademyHealth Annual Research Meeting (ARM), we’ve asked leaders in the field to share some of their memories of the event and perspectives on how the field has changed since our first meeting in 1983. Below is a submission from Dr. Tom Rice, UCLA Fielding School of Public Health, a former member of the AcademyHealth board of directors and previous recipient of both the AHSR Young Investigator Award (now the Alice S. Hersh New Investigator Award) and the AcademyHealth Article-of-the-Year award.

tomricesm

My first AcademyHealth meeting – at the time it was called the Association for Health Services Research – was in 1985, about a year after I arrived as an assistant professor at UNC’s School of Public Health.  I had recently completed a dissertation that concluded that physicians induce demand for their services, a controversial topic at the time although perhaps not as much so today.  The conclusions were at odds with conventional economics, which viewed the demand curve as something that could be shifted only if people’s tastes and preferences or incomes changed.

This work and subsequent research I engaged in did not fit very well into the world of academic economics at the time.  But it did receive a welcome reception at the Annual Research Meetings.  From the beginning of my career, I have found a home at AcademyHealth, as the field of health services research is open to diverse perspectives.

To commemorate the Annual Research Meeting’s 30th Anniversary, I have been asked to reflect on how my own field has changed.  Indeed, health economics has evolved a great deal over these 30 years.  It is more nuanced now.  Thirty years ago we were addressing very basic questions, such as how patient cost sharing affects the demand for care; the impact of fee-for-service vs. HMOs on costs and care; and how technology (counter-intuitively) resulted in higher spending.

We’ve learned a great deal since then, so the questions that health economists address are more sophisticated now.  We’ve known that cost-sharing matters, but now we are devising methods of fine-tuning it so as to encourage the use of appropriate services and discourage those that aren’t.  While we are still interested in service usage, far more emphasis is placed on measuring the quality and outcomes of care.  We now have a better understanding of what makes consumers (and providers) tick as exemplified by the increased use of experimental and behavioral economics in health.  We know, for example, that people do not always respond to more, and more detailed, information in the ways that economic theory predicts.  It’s been over 50 years since Herbert Simon coined the term, “bounded rationality”; this is finally now part of the mindset of health economists, as is the concept of “nudging.”

Perhaps the greatest change is the recognition that economics isn’t always the key to explaining behavior.  It wasn’t all that long ago, for example, that we would have expected that if prescription drugs were free, people would use recommended amounts.  There is now increasing recognition that the social determinants of health outweigh others – the adage that your zip code matters more than all of the tools of modern medicine.   We have paid lip service over the years to collaboration among the medical, social and management sciences to address such disparities in care and health.   I think that the latter two fields have come to grips with this but much more progress needs to be made by medical science in recognizing what the other two fields can bring.

AcademyHealth continues to play a critical role in advancing the field – bringing scientists of all stripes together to address fundamental issues of access, quality, and costs, and advocating for sufficient funding to address these problems.

Tom Rice, PhD
UCLA Fielding School of Public Health

Registration for the 2013 AcademyHealth Annual Research Meeting is now open. 
The ARM is the premier forum for health services research, where more than 2,400 attendees gather to discuss health policy implications, sharpen research methods, and network with colleagues from around the world. The ARM program is designed for health services researchers, providers, key decision makers, clinicians, graduate students, and research analysts.

If you’d like to add your own reflections to our website, you can do so here.

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In all the talk about health care reform, controlling costs, and regulating the market, the actual reason we want people to get insurance can be lost. Health care is expensive. Without insurance, it is prohibitively expensive. Because of that, people who need care often go without it because of cost.

As we’ve discussed many times, about half of uninsured Americans are expected to buy private insurance through the exchanges next year. The other half are expected to get insurance through the Medicaid expansion. These people, the poorest among us, are the ones most likely to delay care because of cost.

Previously, the Commonwealth Fund reported that about one in five Americans had serious problems paying or were unable to pay their medical bills. About one in three Americans avoided needed care or medications because of cost. But those are national numbers. They don’t tell us how individuals in states differ in their actions or need.

In a very recent letter to the NEJM, a group of researchers examined the relationship between Medicaid eligibility and such delays through the 2010 Behavioral Risk Factor Surveillance System survey. They found that there was a great deal of variability in the prevalence of delayed care because of cost, all the way from a low of 7% of people in Norfolk, MA to a high of 41% in Hidalgo, TX.

The concerning part, though, was that the harder it was to get Medicaid, the more delayed care there appeared to be. If eligibility was set at 67-127% of the poverty line (FPL) instead of 133% of FPL or higher, the odds of delaying care were 16% higher. If eligibility was between 46% and 64% of FPL, the odds increased by 39%. If eligibility was below 44% of the FPL, then the odds of delaying care were 42% higher.

Complicating the matter, counties that had the highest rates of delayed care were often those with the lowest incomes, the highest rates of chronic diseases, and governments which had delayed expanding the Medicaid program.

Of particular note, however, was the fact that the concentration of primary care physicians was also related to the odds of delaying care because of cost. Those counties with the highest concentration of such doctors had the lowest levels of delayed care. Areas with more delayed care had fewer primary care physicians.

This is going to be of great concern as Medicaid expands. We already have shortage of general practitioners in the United States. As we add 30 million uninsured to the ranks of the insured, this problem will be exacerbated. Given that the counties with the greatest need also appear to be those with the highest deficiencies, it’s not likely that this issue will resolve in the near future.

The Affordable Care Act was an excellent start on this issue. But it’s unlikely to get everyone who needs Medicaid insurance, given some states’ reluctance to expand the program. Even when it does, it’s not going to fully compensate for the lack of primary care physicians in the areas of the country that need it more. There’s still a lot of work to do to improve the U.S. health care system.

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