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    Transparency in Healthcare

    July 30th, 2008

    by Nick Jacobs

    Transparency in healthcare will facilitate the improvement of performance and quality by providing hospitals and physicians with the additional information necessary for benchmarking their work. It will obviously assist patients as they attempt to make informed decisions regarding their potential care. Finally, transparency will improve quality and efficiency by encouraging private insurers and public programs through providing necessary information to them to make necessary decisions. Transparency is not the end-all, but it is a solid start.

    [More:]

    Having dealt with insurance companies, car dealers, computer sales specialists, architects, construction companies, stock brokers, and any number of other professions, it is obvious that any steps toward transparency would significantly move us in the right direction, toward truth, justice and the American way, but none of these topics raise as much passion as conversations about transparency in healthcare.

    A little over a year ago, I was informed that a retirement policy endorsed by a former employer had gone bad, and, co-incidentally, it had cost me five years of my personal savings. Could a lack of transparency that may have resulted in personal gain for those involved in selling the product have contributed? One can only guess.

    When we realize that we have lost hard earned money, the result is anger, disillusionment, and frustration. When, however, we realize that a loved one has lost their ability to walk because of a lack of information needed to make an appropriate clinical decision, the passion becomes significantly more extreme. We talk a lot about transparency in healthcare, but, not unlike most professions, the jargon, complexity, and intricacies of the profession's jargon keep all but the most learned individuals from sorting through the risks and rewards of each clinical decision.

    Do you want coated or uncoated stents? Should you try controlling this situation with medication, open heart surgery or angioplasty? Will I do better with 20 mg. of cholesterol medicine or 40 mg. and what is the potential side affect of this new drug? These questions are incredibly complex, individual, sometimes life and death oriented questions. Simple transparency is not necessarily the answer here.

    Let’s be candid and face the stark realities of transparency. Patients are, by and large, the least prepared to command greater quality. Usually we are facing these hard-hitting decisions when we are experiencing some type of health crisis. Shopping for the best of anything at that time is improbable. To further complicate things, the power of an individual as weighed against that of an insurance company, all levels of government, and the myriad of professional societies is infinitesimal when it comes to influencing transparency related issues.

    Sara R. Collins, PhD. and Karen Davis, PhD. in their article “Transparency in Health Care: The Time Has Come” written for the Commonwealth Fund, describe the fact that higher patient cost-sharing and high deductible health plans are the wrong prescription; that price information is of little or no value, and that the current state of information is inadequate. They do suggest that the following steps should be considered:

    Medicare should take a leadership role in requiring more transparency.

    A National Quality Coordination Board should be established.

    Continued investment in health information technology must be embraced.

    Fundamental changes should occur within current payment methods.

    And Health Savings Account legislation to reduce potentially harmful effect on vulnerable populations should be enacted.

    They conclude that price transparency is a good beginning step but only a beginning.

    With my two decades of healthcare experience securely tucked away, it is important to recognize that we all have the right to question, the right to look for outcome results, and the permission to get the information needed to help us make informed decisions about our personal futures.

    Comments:

    Comment from: Scott Hodson [Visitor] · http://mavhc.com
    My Firm's point of view is that to truly "move the needle" on cost and quality, an organization must begin by clearly defining and measuring it, and then making the results available to trustees, employees, physicians and the general public. Transparancy is essential to achieving significant lasting improvement in quality and patient safety.

    While there is no standard healthcare industry definition of what constitutes "quality," we have found that top healthcare performers adopt a composite of measures that consider:

    Clinical Outcomes: Ultimately it is the outcome that matters most. Risk adjusted healthcare quality measures such as inpatient mortality rate, readmission rate, complication rate are commonly accepted indicators of quality outcome success.

    Clinical Process: Effective clinical processes are essential to achieving superior healthcare quality outcomes. At a minimum, current publicly reported "core measures" should be considered. Evidence based physician order sets and clinical care plans provide a rich assortment of additional quality process measures.

    Patient Experience: Effective communication with caregivers, environment, and customer service are an important part of an effective treatment program. The medicare Hospital Consumer Assessment of Healthcare Providers and Systems is one good source of useful performance data.

    Resource Utilization: "Too little" or "too much" care can adversely affect outcomes. Measures such as risk adjusted average length of stay, ICU ALOS, and cost per case are examples of effective resource utilization indicators.

    Top performing organizations not only define and measure healthcare quality, they ask the question: "How are we doing? We believe that the best way to answer that question is to compare your results to those of "Top Performers." There are a number of organizations that provide excellent health care industry clinical quality and financial benchmark information. Through benchmarking, organizations are able to identify their strengths and weaknesses, and develop strategies to address and overcome healthcare quality gaps.

    Benchmarked performance ratings on individual measures can then be weighted and rolled up to measure overall quality performance for individual conditions (e.g. pneumonia vs. AMI, individual hospitals within a health delivery system, or a system - wide composite score.

    Finally, true improvement occurs when "stretch" goals are established by Board of Directors, and hospital management incentives are tuned to the achievement of those goals.
    Permalink 07/31/08 @ 09:44
    Comment from: Dantes [Visitor]
    I read in this piece and the comments an unquestioned assumption about "transparency" in hospitals, to whit: Hospital administrators adn quality assurance performace standards and so called evidence based medicine (read "protocol medicine") are 100% efficient and correct, the problem lies with the providers, and lack of measuring or top down directives to improve care.

    Across the nation bospitals both large and especially small, are moving to try and dictate medical practices within a hospital by physicians, and have been expanding their intrusion into medical practice.

    Outcome studies in hospital care are full of data acquisition problems and statistical errors inherent in small sample sizes. A hospital with 10 patients a year with a particular problem, 2 of whom might get a nosocomial infection, may be labeled as terrible, when in fact it was just bad luck. A hospital with a data set of 100 patients is not as susceptible to this kind of sample error.

    It seems many hospitals are now focusing efforts on "teaching to the test". By that I mean the quality problem of the day is emphasized so as to garner a favorable number, by shoving a bunch of idiotic directives down people's throats, even as more obvious care issues are put to the side because their is no incentive at the time to fix it. This is the pay for performance conudundrum.




    Hospitals are also irrationaly resistant to more innovative means of healthcare delivery, esp3cially by physicians, who are frustrated by services performed in hospitals and who reestablish some control over quality by building their facilities, often because their suggestions have been ignored by hospitals for months or years. Then the hospitals go on a rampage about greedy cherrypicking doctors.

    The argument that price information is not a valid indicator of quality has some truth, but not because prices are not an effective indicator for medical services. Rather, prices for services in most health care are disconnected from the market, because nobody knows what the true price of a service is. Depends on if you have insurance, are self pay, Medicare, Medicaid, etc. Those "prices"vary by orders of magnitude for the same service.

    The question of price transparency would best be addressed by cost transparency. Few people realize the enormous markups hospitals routinely make for services.

    Let's see a hospital which can present an itemized bill to a patient when he or she walks out the door. Then I will believe hospitals are interested in transparency. Until then, this is a bunch of mumbo jumbo derived from the erroneous interpretation of studies and a lot of unproven assumptions about what is needed for quality improvement.


    I realize that administrators like the mandatory top down control of issues, whether they work or not. And this directs attention from some other issues which are out there in the hospital industry, especially the abuses by the so called not for profit hospitals, who increasingly have profligate spending habits, lack of true accountability to communities, and inflated measures of their charity of care.

    Transparency...ok, go to www.wherethemoneygoes.com and see just how transparent hospitals are. Not very. So, with all due respect, before you lecture in abstentia the medical profession about their quality of care...which is what is happening here...let's have some real transparency in hospital operations, costs and charges, for a start.

    Until


    Permalink 07/31/08 @ 15:22
    Comment from: Anthony Cirillo [Visitor] · http://www.4wardfast.com
    You are right about consumers not making sense of any of this information as they are making decisions in a crisis. One cottage industry cropping up is the patient advocate. Advocates can help guide people through the system. The transparency is really needed for primary care physicians, those independents with multiple privileges, who can use the information intelligently to guide their patients. But that is asking a lot too. Good read. Keep writing.
    Permalink 07/31/08 @ 19:22
    Comment from: Jeremy [Visitor]
    Um, the "article" from the Commonwealth Fund that you talk about: I found the article online, and its dated March of 2006. Not long after that, CF sponsored a study in Health Affairs that showed that HSA plans reduced out of pocket expenses for both the sickest and the healthiest. It also makes assertions that aren't backed up, and have been shown to be flat out not true.

    I appreciate that a hospital is finally considering transparency. But, screwing over the HSA stakeholders through "legislation" is not the right road to take.
    Permalink 07/31/08 @ 20:25
    Comment from: Medical Supplies [Visitor] · http://www.cmsmedical.co.uk/
    Also one of the greatest inefficiencies in our health care system is the lack of interoperable health records.
    Permalink 09/01/08 @ 12:26

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