Quality Costs Less

 

Health Risk Management Inc. says "States with higher quality of care generally have lower per-capita healthcare costs. HRM's annual "Quality First" index includes 46 weighted quality indicators that consider what individuals, healthcare systems, and states do to affect health status and care, and the degree to which those efforts improve outcomes."

1. Do not pay for medically unnecessary, experimental or inefficient care when better practices exist in the community - We must begin to identify the latter.
2. Train staff well (for example, in Six Sigma, below) and do this as job enrichment
3. Pay fairly: it is better to pay the specialist when they reduce hospitalization then to reduce their pay only to see them generate additional, more expensive work.  EG, we are seeing false + imaging leading to unnecessary heart caths.  (This calls for incentive realignment).
4. Get documentation only when it is required; train the doctor's office to tell us, accurately what their assessment is, even if preliminary; and, succinctly, why the patient needs a dear procedure.
5. Use peer reviewed guidelines for which there has been buy in by the provider community.
6. Educate physicians and their staffs.
7. Don't sweat the small stuff (e.g., why review a 99213 after an auto-auth unless it is to check par status and eligibility that any clerk, well trained, can do)
8. Identify cases before they are a crisis or at least pay attention when they appear and reappear.
9. Get PCPs involved in all admissions, follow-up care and get timely follow-ups.
10. Install case management
www.healthleaders.com/index.ez?viewStory=4041

The Origins of the Quality-of-Care Debate- Part Four of Six
(paraphrased) from Blumenthal, D.
New Eng J Med. October 10, 1996;335 (15):1146-1149.

  • Wennberg and Gittelsohn20 among others brought clinical epidemiology to our attention in quality management (QM), making its first contribution in identifying the wide variation in the processes and outcomes of care among patients who received routine treatment for the same health care problems in different places and health care settings.21,22,23 However, variation may create the impression that much medical practice lacks scientific foundation. This has "emboldened purchasers and policy makers to challenge physicians' claims that they know authoritatively what constitutes optimal health care.23" But, it has also created opportunities for learning about and improving daily work. While an activity as complex as medical practice is inevitable, the "challenge is to identify the variations that produce the best outcomes. From this standpoint, failure to learn from the variation would be a far more serious indictment of the profession than the variation itself.23"
  • Clinical epidemiology can help us understand better how such variation affects outcomes. For example, consider the quality improvement (QI) opportunity in evaluating the timing of prophylactic administration of antibiotics and the risk of surgical-wound infection.24
  • "Our tools for measuring outcomes were primitive, however.25 At the same time, sociologists and psychometricians had developed better methods of assessing not only patients' functioning, but also their values and preferences for various functional states.26,27 Outcomes research has created new measures of quality that will change clinical practice, especially the treatment of chronic illnesses, in which improved functioning is a primary objective. This is already apparent with regard to such conditions or procedures as back pain,28 benign prostatic hypertrophy,29 and hysterectomy.30 "
  • Progress in information systems, computer technology, and communication techniques is very relevant to QI/QM, especially given the complexity of health care and its systems. Advances In management information systems (MIS) have made it "cheaper, easier, and faster for researchers, clinicians, and managers to accumulate and analyze multiple types of data - including billing data, data on encounters with patients, and data from automated medical records, now increasingly common. Even more important, the spread of computer technology into physicians' offices through desktop equipment and the Internet has created opportunities to gather new and timely information about providers' performance and the clinical choices available to them and their patients.31 This information ranges from advice about drugs and their side effects to consultation with specialists in distant places."
  • "For years, advanced industrial organizations have used methods adapted from psychology, statistics, and operations research to avert predictable human errors, eliminate unnecessary and harmful variation, and improve the production of goods and services.33 Despite skepticism on the part of physicians, there is reason to believe that such techniques may be useful not only in preventing error, but also in managing chronic diseases, such as asthma,34 hypertension,35 and other illnesses.36"
  • For physicians to retain control of their own work, they must harness information science-medical informatics-to the extent that it enters their practice lives. This will have the side-benefit of helping them "resist untested, radical efforts to reduce the costs of care because they pose threats to quality.
  • Furthermore, it can be argued that it is essential to be involved making integrated processes of care work well as this will, inevitably affect clinical decision making if not satisfaction of the practitioner.37 "Earlier in this series, we noted that various definitions of quality were legitimate and reasonable, depending on one's position in the health care system. Physicians tend to see quality in terms of the excellence of the services they provide ("doing the right things right") and the quality of their interactions with patients. Organizations and health plans emphasize the optimal functioning of systems when they define quality of care. The changing nature of medical services is forcing physicians also to pay increasing attention to systems of care, for such systems are increasingly important to both technical excellence and optimal interaction with patients. This is a challenge for which few physicians are prepared.

References

1. Millman M, ed. Access to health care in America. Washington, D.C.: National Academy Press, 1993.
2. McGovern PG, Pankow JS, Shahar E, et al. Recent trends in acute coronary heart disease -- mortality, morbidity, medical care, and risk factors. N Engl J Med 1996;334:884-890.[Abstract/Full Text]
3. Schroeder SA. The medically uninsured -- will they always be with us? N Engl J Med 1996;334:1130-1133.[Full Text]
4. Robinson JC, Casalino LP. Vertical integration and organizational networks in health care. Health Aff (Millwood) 1996;15:7-22.
5. Gesenway D. Is California-style health care the future? ACP Observer 1996;16:1.
6. Shore MF, Beigel A. The challenges posed by managed behavioral health care. N Engl J Med 1996;334:116-118.[Full Text]
7. Blumenthal D, Epstein AM. Physician-payment reform -- unfinished business. N Engl J Med 1992;326:1330-1334.[Medline]
8. Gold MR, Hurley R, Lake T, Ensor T, Berenson R. A national survey of the arrangements managed-care plans make with physicians. N Engl J Med 1995;333:1678-1683.[Abstract/Full Text]
9. Franks P, Clancy CM, Nutting PA. Gatekeeping revisited -- protecting patients from overtreatment. N Engl J Med 1992;327:424-429.[Medline]
10. Gray BH. The profit motive and patient care. Cambridge, Mass.: Harvard University Press, 1991.
11. Chassin MR. Improving the quality of care. N Engl J Med 1996;335:1060-1063.[Full Text]
12. Kassirer JP. The quality of care and the quality of measuring it. N Engl J Med 1993;329:1263-1265.[Full Text]
13. Hillman AL. Financial incentives for physicians in HMOs: is there a conflict of interest? N Engl J Med 1987;317:1743-1748.[Abstract]
14. Lurie N, Ward NB, Shapiro MF, Brook RH. Termination from Medi-Cal -- does it affect health? N Engl J Med 1984;311:480-484.[Medline]
15. Weissman JS, Epstein AM. Falling through the safety net: insurance status and access to health care. Baltimore: Johns Hopkins University Press, 1994.
16. Ware JE Jr, Brook RH, Rogers WH, et al. Comparison of health outcomes at a health maintenance organisation with those of fee-for-service care. Lancet 1986;1:1017-1022.[Medline]
17. Blumenthal D, Meyer G. TennCare and academic medical centers: the lessons from Tennessee. JAMA 1996;276:672-676.[Medline]
18. Starr P. The social transformation of American medicine. New York: Basic Books, 1982.
19. Berwick DM. Continuous improvement as an ideal in health care. N Engl J Med 1989;320:53-56.[Medline]
20. Wennberg J, Gittelsohn A. Small area variations in health care delivery. Science 1973;182:1102-1108.[Medline]
21. Vayda E. A comparison of surgical rates in Canada and in England and Wales. N Engl J Med 1973;289:1224-1229.[Medline]
22. Detsky AS. Regional variation in medical care. N Engl J Med 1995;333:589-590.[Full Text] 23. Blumenthal D. The variation phenomenon in 1994. N Engl J Med 1994;331:1017-1018.[Full Text]
24. Classen DC, Evans RS, Pestotnik SL, Horn SD, Menlove RL, Burke JP. The timing of prophylactic administration of antibiotics and the risk of surgical-wound infection. N Engl J Med 1992;326:281-286.[Abstract]
25. Mulley AG Jr. Industrial quality management science and outcomes research: responses to unwanted variation in health outcomes and decisions. In: Blumenthal D, Scheck AC, eds. Improving clinical practice: total quality management and the physician. San Francisco: Jossey-Bass, 1995:73-107.
26. Ware JE Jr, Sherbourne CD. The MOS 36-item short-form health survey (SF-36). I. Conceptual framework and item selection. Med Care 1992;30:473-483.[Medline]
27. Stewart AL, Greenfield S, Hays RD, et al. Functional status and well-being of patients with chronic conditions: results from the Medical Outcomes Study. JAMA 1989;262:907-913. [Erratum, JAMA 1989;262:2542.][Medline]
28. Malmivaara A, Häkkinen U, Aro T, et al. The treatment of acute low back pain -- bed rest, exercises, or ordinary activity? N Engl J Med 1995;332:351-355.[Abstract/Full Text]
29. Barry MJ, Fowler FJ Jr, O'Leary MP, Bruskewitz RC, Holtgrewe HL, Mebust WK. Measuring disease-specific health status in men with benign prostatic hyperplasia. Med Care 1995;33:Suppl:AS145-AS155.[Medline]
30. Carlson KJ, Miller BA, Fowler FJ Jr. The Maine Women's Health Study. I. Outcomes of hysterectomy. Obstet Gynecol 1994;83:556-565.[Medline]
31. Classen DC, Pestotnik SL, Evans RS, Burke JP. Computerized surveillance of adverse drug events in hospitalized patients. JAMA 1991;266:2847-2851. [Erratum, JAMA 1992;267:1922.][Medline]
32. Leape LL. Error in medicine. JAMA 1994;272:1851-1857.[Medline]
33. Berwick DM. Controlling variation in health care: a consultation from Walter Shewhart. Med Care 1991;29:1212-1225.[Medline]
34. Gibson PG, Wlodarczyk J, Hensley MJ, Murree-Allen K, Olson LG, Saltos N. Using quality-control analysis of peak expiratory flow recordings to guide therapy for asthma. Ann Intern Med 1995;123:488-492.[Medline]
35. Neuhauser D, Headrick L, Katcher W, Lucas P. Applying the statistical methods of continuous quality improvement to primary care: hypertension. In: Blumenthal D, Scheck AC, eds. Improving clinical practice: total quality management and the physician. San Francisco: Jossey-Bass, 1995:111-36.
36. Blumenthal D. Total quality management and physicians' clinical decisions. JAMA 1993;269:2775-2778.[Medline]
37. Palmer RH, Adams MME. Quality improvement/quality assurance: a framework in putting research to work in quality improvement and quality assurance. Rockville, Md.: Agency for Health Care Policy and Research, 1993. (AHCPR 90-0034.)


Six Sigma:
1] A statistical calculation, e.g., 3.4 errors/variations/mil opportunities.
2] A belief system
3] An improvement methodology
4] A strategy deployment approach

As a statistical calculation, Six Sigma has profound implications for understanding the relationship between quality and costs.

First, as discovered by the American automobile industry in the 1980s and 1990s, errors represent the largest component of the cost of producing an automobile. Organizations can categorize costs into the following 3 categories:
I. Process cost - The cost to run one iteration of a process, whether that be producing an X-ray, conducting a surgery, caring for a patient with acute MI. Process cost consumes approximately 67% of the total cost of a process.
II. Cost of Quality (COQ) - The cost incurred to assure quality is maintained at an acceptable level. Typically, every process includes several steps, like inspection, to make sure that the process performs as intended. For example, nurses check, then recheck, to assure that the medication they are preparing to administer to patients will not result in an allergic reaction. Case managers invest up to 90% of their time inspecting care to assure that care paths are followed according to protocol. All of these steps, and their underlying costs, are COQ investments; COQ typically consumes 14% of total cost.
III. Cost of Poor Quality (COPQ) - The cost incurred to correct processes that fail to perform as intended. Almost all processes contain some rework, "work-arounds," and unexplained redundancy, not to mention the cost of malpractice and risk management. COPQ consumes approximately 20% of total cost. Therefore, as one calculates COQ and COPQ, the cost structure would consume about 34%

Measure, Monitor and Manage (3m)

Is there an opportunity to introduce Six Sigma tools into the PDCA process (like FEMA, regression analysis, Idealized Design Solution Sets, etc.), measure variance and change, and provide tangible incentives?