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Pay-for-performance may not boost quality of care

By Heather T. Gilligan

A hot new trend in health care — rewarding hospitals for better performance — may not be working as intended, according to new research released today.

Pay for performance — as the system is known — is meant to encourage better care than payment based only on fees for services. Currently, most hospitals report information about their quality of care, but are not rewarded for better quality or improvements in care.

The idea of paying for quality instead of just quantity held enough promise that Congress put it into the Affordable Care Act, or federal health reform. Starting in October, hospitals that do the best on certain measures of quality will get bonuses from Medicare.

But the research released today suggests that paying for performance may not give quality of care the expected boost. Expectations that pay for performance will improve patient outcomes “should therefore remain modest,” researchers cautioned.

That caution, however, applies to the particular pay-for-performance model in place at the hospitals examined in the study, says lead author Ashish Jha, Associate Professor of Health Policy and Management at the Harvard School of Public Health. That model is likely to be adopted nationally in October.

“This doesn’t tell us pay for performance doesn’t work,” Jha said. The study does suggest that a better mix of incentives and penalties are needed to improve care, he added.

The study, published today in the New England Journal of Medicine, compares 252 hospitals that are part of a pay-for-performance program (called the Medicare Premier Hospital Quality Incentive Demonstration) to 3,363 hospitals that only report information about their quality.

The study looked at 30-day mortality rates for more than six million patients released from hospitals after treatment for heart attacks, heart failure and pneumonia, as well as hip and knee replacements and bypass surgery.

The study found no difference in 30-day mortality rates for patients treated at pay-for-performance hospitals compared to hospitals that simply reported quality of care.

The traditional payment system, fee for service, however, “clearly doesn’t work,” Jha noted.

He thinks that improving the measures of quality of hospital care, such as evaluations based on patient outcomes, would be a move in the right direction in creating a pay for performance system that improved care.

 

Dying behind bars

According to Jackson, he deserves to die behind bars. He thought his crime was justified at the time, he says, but his prison sentence left his six children without a father. Photo by Armand Emamdjomeh.

By Armand Emamdjomeh

With the tattoos that appear to cover every inch of his body, Terry Jackson cuts a terrifying figure. At least he would, 20 years ago, before his prison sentence, severe arthritis and AIDS wracked his body. Now the 41-year-old prisoner can barely walk, and seems most comfortable in his bed.

Though he may seem feeble now, Jackson is serving a 25-year-to-life sentence for first degree murder. Jackson is one of more than 2,800 inmates at the California Medical Facility, the only California prison facility with a licensed elderly-care unit and a hospice unit for terminally ill inmates.

The facility is emblematic of the dilemma facing the California Department of Corrections and Rehabilitation, as longer sentences and three-strikes requirements lead to an aging prison population – many of whom are serving life sentences and likely to die behind bars. These inmates come at great cost to the state – prisoners’ medical bills can range as high as $2.5 million, according to a report by a federally appointed receiver who oversees the state’s prison health care.

Armand Emamdjomeh originally reported this story with Karen McIntyre and Isabella Cota Schwartz as part of the “Behind Bars” News 21 project at the Graduate School of Journalism at the University of California, Berkeley. He is currently a web developer and producer at the Los Angeles Times.

 

Will California face a doctor shortage?

With an aging population and more people gaining insurance coverage thanks to the federal health reform, California might face a shortage of primary care doctors to serve all those who need care. While the number of doctors in the state has kept pace with population in recent years, the number of graduates from California’s eight medical schools has remained relatively flat over the last 15 years, in spite of the 20 percent growth in population.

The University of California, which operates five of the programs, has announced plans to expand enrollment in existing programs in addition to opening two new medical schools.

See a report on the issue from the California Healthcare Foundation here.

 

LAO: cutting health, welfare spending

Health and social service spending represents nearly a third of the state’s general fund. But facing a $20 billion deficit, the Legislature’s hands are tied by federal mandates, court decisions and voter-approved measures. The nonpartisan Legislative Analyst examines the health and welfare budget and offers proposals for reducing it. See the report here.

 

The health costs of air pollution

smogCalifornians, their health insurers and the government spent nearly $200 million on hospital care for air-pollution-related admissions between 2005 and 2007 that could have been avoided if the state met federal clean air standards, according to a new study from the Rand Institute. Using hospital admissions data and air pollution records, the Rand researchers found an estimated 29,000 emergency room visits and hospital admissions that could have been prevented. Of the hospital visits considered preventable, about three-quarters were attributed to the presence of fine particulate matter in the air, known as PM 2.5. The rest were related to levels of ozone in the air. See the full study here.

Photo from flickr.com

 

More illness, less insurance

Women between the ages of 50 and 64 are more prone than younger women to a wide range of health conditions, including asthma, diabetes and heart disease, according to a new policy brief from the UCLA Center for Health Policy Research. Nearly four in 10 women in this age group will be diagnosed with high blood pressure, while nearly six in 10 are either obese or overweight. In both cases, the percentages are higher than for younger women. The research, based on the California Health Interview Survey, also found that the likelihood of having health insurance was related to a woman’s marital status. The study found that one-quarter of older women who had never married and 21 percent of divorced, separated or widowed women were uninsured — more than twice the rates of married women. See the study here.

 

Heart disease linked to pollution

A new study suggests that living close to busy freeways is related to your chance of getting heart disease. The study found a statistical correlation between exposure to diesel particulate matter — the exhaust from big trucks — and the thickening of plaque on the arteries, a pre-cursor of heart disease. The researchers concede, however, that their conclusions are weakened by a small sample size, and they report that the connection between the heart condition and exposure to pollution was greater among low-income people, suggesting that other factors, including diet or stress, could also be in play.

To see the full study, go here.

Photo by Daniel R. Blume
 

Prisons versus higher ed


The Legislative Analyst’s Office gives two thumbs down to the governor’s proposal for a constitutional amendment that would require the state to spend more on universities than prisons. Why? The office says legislators and the governor can switch spending priorities now if they have the will to do so, and it would be unwise to lock more spending formulas — and less flexibility — into the constitution. The chart above from the LAO is a look at the trend in spending on both programs.

 
 
 

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