What's New with HCFO - December 19, 2008 (Print All Articles)The Consequences of Reporting on Health Care Quality
With a growing public interest in addressing problems in the current health care system, a variety of health care reform proposals are underway. A common theme includes recognition that high quality care should be rewarded and that consumers need information to identify the individual providers and hospitals which offer this type of care. But does the clearly desirable goal of promoting high quality health care in turn create disparities? The first step in identifying high quality health care providers is measuring performance. Generally, quality reports capture outcome measures1 or process measures.2 In 2001, the Centers for Medicare & Medicaid Services (CMS) began a series of quality initiatives designed to improve care to Medicare beneficiaries. Using a standardized measurement system, data are collected and reported on nursing homes, home health agencies, hospitals, and kidney dialysis facilities.3 More recently, CMS established the Physician Quality Reporting Initiative (PQRI), a voluntary program which provides financial incentives to providers who report quality measure data on submitted claims.4 Private health plans are also developing quality reporting systems, with mixed reviews. Some physicians question whether a scorecard which tracks specified measures is a true representation of the quality of care being provided to patients.5 On the other hand, insurers suggest that providing incentives based on quality scores, as through pay-for-performance programs, will change provider behavior. Moreover, while paying for performance can lead providers to work toward top quality scores, the public disclosure itself is a strong inducement to improve quality and score well. Nevertheless, gathering and reporting quality information on health care providers can generate both intended results and unintended results. Intended Results In medicine, as in any profession, there is a natural tendency to work to a higher potential when faced with information about peers who produce a superior result. Thus, the collection and disclosure of quality of care is likely to have a positive effect on providers, including motivating them to use clinical practice guidelines. The information could also serve as the basis for developing quality improvement programs within provider organizations. As patients have increasingly greater access to information on high performing providers, they will be more likely to seek out those providers.6 Over time, variation in the quality of care could be reduced and patients are likely to receive increasingly better care, thereby improving the overall health status of this country. Moreover, referring physicians and health plans may benefit from information on high quality providers. Unless consumers use comparative quality reports, their value is lost. Thus, educating the consumer on the availability of these reports is paramount. To improve uptake, information must also be easily accessible, understandable, and viewed as trustworthy. While evidence to date does not demonstrate a wholesale realization of the intended consequences of quality reporting, transparency and the fact that providers are more accountable by such disclosures is, in and of itself, a positive step.7 Unintended Results At the opposite end of the spectrum are the potential unintended results which may emerge as quality information is publicized and becomes the basis for rewarding providers. For example, physicians may “practice to the test,” meaning they are more likely to focus on measured areas of quality at the expense of important, yet unmeasured areas.8 Moreover, physicians, hospitals and other providers may “cherry pick” healthy patients and avoid the sickest and most complex patients in order to improve quality scores. These actions disproportionately affect underserved/minority populations, resulting in an increase in health care disparities. Providers may also avoid certain populations—such as minorities and those with low socioeconomic status—if they believe their performance measures and target goals would be negatively impacted. Ultimately, access to high quality care for these populations could be curtailed.9 In a study examining the impact of New York’s coronary artery bypass graft (CABG) report cards, researchers noted that while report cards had the potential to improve the quality of health care, “the release of New York’s CABG report card was associated with a significant increase in racial and ethnic disparities in CABG use in New York compared with other states in the years immediately after the report card’s release.”11 After nine years, the disparities returned to pre-release levels, suggesting that over time, physicians may have determined that race was not a good risk indicator or realized that report cards had little relevance to decision-making by patients or referring physicians.12 Conclusion Quality reporting is likely to continue and expand. The challenge for those structuring the systems is to ensure that the intended results of quality reporting are reached, while the unintended results are eliminated. The key is to maintain a rigorous and useful reporting system which does not disadvantage certain populations. Moreover, quality reporting systems must be designed in such a way as to prevent disparate care. For example, reports should be adequately risk-adjusted to eliminate the likelihood that providers will avoid treating certain groups of patients, thereby exacerbating health care disparities. In addition, by emphasizing measures of appropriate care, physicians are more likely to embrace all patients who would benefit from certain treatments, regardless of their socioeconomic status or race. A focus on process measures, rather than outcome measures may also help reduce the potential for increased disparities insofar as process data is not as closely tied to patient characteristics. Finally, adjusting measures for race and socioeconomic status would help to alleviate the potential for quality reports to create a bias against treating certain patient groups.13 For related HCFO-sponsored research, see the grants listed below and see www.hcfo.net. Title: The Impact of Pay for Performance on Hospitals that Care for Minorities and the Poor The researchers will examine the impact of financial incentives to improve quality on hospitals that care for minority or other underserved populations. The Centers for Medicare and Medicaid Services have implemented pay for performance (P4P) demonstrations, and are considering implementing P4P nationally. However, the impact of P4P has not been widely evaluated. Hospitals that care for underserved populations may have greater potential for quality improvement; conversely these facilities lack the tools and resources to improve quality and compete for the additional resources. The researchers will examine changes in quality for hospitals in the Medicare Premier P4P Demonstration that serve disadvantaged populations (minority and poor); these changes will be compared with changes in hospitals in the demonstration that do not serve disadvantaged populations and with hospitals not in the demonstration (and not subject to P4P) that serve disadvantaged populations. The objective of the project is to provide more information about the impact of P4P on hospitals that serve disadvantaged populations, and help policymakers to design incentive systems that encourage higher quality care without disproportionately harming hospitals that care for these populations. The researchers will evaluate the impact of a quality-based scorecard and financial incentives developed by Premera Blue Cross in Washington State. They will compare clinics exposed to two waves of a progressive “paying for quality” intervention with a control group of clinics not subject to the intervention. Specifically, the researchers will assess the joint effects of quality-based financial incentives and the quality scorecard on physicians’ clinical quality, patient satisfaction, and efficiency in caring for patients. They will distinguish the effects on quality, patient satisfaction, and efficiency of providing information to medical groups relative to their performance on an array of clinical quality measures from the incremental effect on quality and efficiency of clinical quality-based financial incentives. The objective of the project is to assist organizational leaders and public policymakers to craft more cost-effective quality incentives. The researchers will examine the quality of hospital care. Using patient-level data from a large sample of hospitals collected by the Hospital Quality Alliance (HQA), they will estimate the proportion of patients receiving recommended care, create new measures of patient care quality, and simulate the impact of several pay-for-performance (P4P) scoring methods on hospital rankings. They will also examine the extent to which care varies by race, ethnicity, or insurance status within and across hospitals. The objective of the study is to assist CMS, other public and private payers, and accrediting organizations in developing strategies to improve hospital performance measurement and payment methods, and, ultimately, the quality of patient care. What tools will consumers need to help select high performing physicians, within CDHPs? Physician performance data is one of the tools that can be used to help consumers make these decisions. However, there are important opportunities and challenges facing consumer-directed health plans (CDHPs) trying to engage consumers in using physician performance data (PPD). The specific aims of the project are: 1) to develop methods for informing consumers about physician clinical performance; 2) to test the effectiveness of these methods in helping consumers with chronic conditions in CDHPs to make an informed choice of primary care physician (PCP); 3) to explore how consumer characteristics affect their ability to understand PPD and their response to that data. The objective of this study is to understand how and whether PPD can be appropriately and effectively used in CDHPs. Title: Strategies to Reduce Health Care Providers’ Administrative Burden Related to Quality Performance Measurement and Reporting How do quality reporting requirements affect hospitals? What strategies do hospitals and quality reporting organizations use to minimize burden? What forces facilitate or impede these efforts? Using a case study approach and building on the HSC’s ongoing tracking of local health care markets across the country, the researchers focused on four communities (Boston, Indianapolis, Seattle, and Orange County, CA) with a high level of reporting and performance measurement activity. In these communities, the researchers: (1) confirmed the programs that hospitals reported participating in during the Round 5 site visits; (2) confirmed what the reporting requirements are for each program based on background work for the project; and (3) indicated the ways in which hospitals believe reporting requirements of the programs differ enough to meaningfully increase burden. The objective of this study was to explore the burden on hospitals of quality reporting in four communities, extrapolate lessons learned for other communities with similar attributes, and draw implications for policymakers and private sector decision makers seeking to reduce administrative burdens associated with this type of reporting. How does examining the feasibility of using episode-based physician profiling systems help to evaluate the practice efficiency of physician specialists? The researchers completed a HCFO-funded study in which they evaluated the accuracy of seven primary care provider profiling methodologies and examined the implications of differences in accuracy for assessments of physician performance. In this project, the researchers focused on two of the seven methodologies which were episode-based, Episode Treatment Groups (ETGs) and the MEDecision Practice Review System (PRS), to examine 15 (10 medical and 5 surgical) specialties. The objective of the project was to determine whether the risk-adjustment methodologies used to generate reliable profiles in a primary care setting can be extended to specialists given the unique factors that arise in profiling specialty physicians. How are public “report cards” on consumer and physician behavior being disseminated? The researchers evaluated PacifiCare’s Quality Index report cards which provide a relative performance assessment of provider groups in selected areas of clinical, service and administrative quality. The researchers tested (1) how new and continuing health plan enrollees use comparative quality information to select a physician group; (2) how mobilization of consumer choice based on comparative quality information drives physician group performance improvements; and (3) how physician groups are responding to performance measurement when data are used for confidential benchmarking only while other dimensions of quality are reported to consumers. The objective of the project was to fill an information gap concerning the value of publicly reported quality information and to provide guidance to public and private decision makers on the measurement and dissemination of provider quality information. Title: Assessing the Impact of a Public Report on Hospital Quality: A Controlled Experiment in the State of Wisconsin How do hospitals react to public reports of their quality and how do such reports influence consumers’ perceptions of hospital quality? This study, conducted by researchers at the University of Oregon, is assessing whether public reports of quality lead to improvement efforts within hospitals. The researchers also are studying whether the public reports create a general impression among consumers about the quality and safety of hospitals in the community. Hibbard and her colleagues are working with The Alliance, a large purchasing group based in Madison, Wisconsin, that will disseminate the public report. The researchers are conducting a controlled experiment in which hospitals are assigned to one of the following three groups. Hospitals in The Alliance, 25 in the region surrounding Madison, will be included in the public report. The remaining 100 hospitals in Wisconsin will be separated by size (large and small) and randomly assigned to either the other treatment group or the control group. The second treatment group will receive a report of their own performance compared with other hospitals that will not be made public. The control group will not receive any reports. The objective of the study is to assess whether public reporting of hospital quality motivated improved behavior and performance and how public reporting affects consumer perceptions of hospital quality. Title: A Comparative Evaluation of Risk-Adjustment Methodologies for Profiling Physician Practice Efficiency How accurate are existing physician profiling products used by health plans at predicting/identifying resources used by physicians and physician groups? Researchers at the University of Michigan evaluated these products to answer the following questions: 1) Do some physician profiling risk-adjustment methodologies produce more accurate profiles of physician practice efficiency than others? If so, how do the methodologies compare? 2) How does the number of patients managed by a physician affect the accuracy of the physician’s practice efficiency profile? and 3) Are differences in accuracy among profiling systems’ risk-adjustment methodologies large enough to affect rankings of physicians’ practice efficiency? How consistent are physician practice efficiency rankings from different profiling systems, and how consistent are the systems in identifying outlier physicians? As the researchers noted, physician-profiling information “can be used to select network providers, channel patients, and identify both exemplary practice styles and those that suggest a need for education. Also, reports indicate that profiles are used by health plans for identifying physicians for de-selection from networks.” The objective of this study was to evaluate the accuracy of the profiling methodologies being marketed to health plans and examine the implications of differences in accuracy among the tools. How can information on health plan quality be most effectively presented to consumers? Researchers at the University of Oregon used laboratory studies to examine how consumers process and integrate information in making choices about health plans. While there are many health plan “report cards” available to consumers, little is known about how consumers actually use the information they are given to make decisions. Consumers in a cognitive laboratory environment were presented with different types of information on health plan quality, in different formats, and asked about how they use the information in their decision-making process. The researchers also assessed how specific pieces of information were used and weighted in decisions. The objective of the study was to help determine how best to present information on health plan quality, so that it is valued and understood by consumers, and so that consumers can make the maximum use of information on quality when choosing a health plan.
Grantee Spotlight: Ashish Jha, M.D., M.P.H.
Ashish Jha, M.D., M.P.H., is assistant professor of health policy and management at the Harvard School of Public Health. He is also assistant professor of medicine at Harvard Medical School and a staff physician at the Boston VA and Brigham and Women’s Hospitals. Dr. Jha’s research interests include quality of care—particularly in hospitals that serve large minority populations—health care disparities, and the use of health information technology (HIT) and its impact on health care quality, safety, and efficiency. Currently, Dr. Jha is the principal investigator on a HCFO grant investigating the impact of pay for performance (P4P) on hospitals that care for minorities and the poor. The Centers for Medicare & Medicaid Services (CMS) have implemented P4P demonstrations, and are considering implementing P4P nationally. However, the impact of P4P has not been widely evaluated. Hospitals that care for underserved populations may have greater potential for quality improvement, but conversely these facilities lack the tools and resources to improve quality and compete for the additional resources. With this grant, Dr. Jha will examine the impact of financial incentives to improve quality on hospitals that care for poor or other underserved populations, by looking at changes in quality for hospitals in the Medicare Premier P4P Demonstration that serve disadvantaged populations. “It is our hope that this research will provide insights about the impact of P4P on hospitals that serve disadvantaged populations, and help policymakers to design incentive systems that encourage higher quality care for all without disproportionately harming hospitals that care for these populations,” says Dr. Jha. For more information about this study, please visit www.hcfo.net/grantees/grant.cfm?GrantNo=63743. For more information on Dr. Jha and a list of select publications, please visit www.hsph.harvard.edu/faculty/ashish-jha/.
New HCFO Grant!
Institution: University of Minnesota
Spotlight on Grantee Publications
Michael A. Morrisey, Ph.D., professor at the University of Alabama at Birmingham, and colleagues published the article, “Medical Malpractice Reform and Employer-Sponsored Health Insurance Premiums,” in the December 2008 issue of Health Services Research. The article highlights findings from a HCFO-sponsored study that examined the effect of recent malpractice reforms on health insurance costs. Peter J. Neumann, Sc.D., director at the Center for the Evaluation of Value and Risk in Health at Tufts Medical Center, and colleagues published the article, “Measuring the Value of Public Health Systems: The Disconnect Between Health Economists and Public Health Practitioners,” in the December 2008 issue of the American Journal of Public Health. The article highlights findings from a HCFO-sponsored grant—funded under a special topic solicitation in public health systems research (PHSR) and led by Peter Jacobson, J.D., professor at the University of Michigan School of Public Health—that examined how to define and measure the value of governmental public health systems.
Grantees in the News
Ann O’Malley, senior health researcher at the Center for Studying Health System Change, was quoted in the November 23, 2008 Chicago Tribune news blog, “A Crisis in Primary Care Accelerates.” The news blog discusses the current state of primary care and highlights findings from a Physicians Foundation survey. O’Malley states, “(Primary care physicians’) incomes are lower than surgeons and other specialists, and a lot of what (they) do is not compensated…The time they spend coordinating care on the phone, talking to social workers, and talking to specialists about care provided to the same patients just does not get compensated.” In a HCFO-sponsored study, O’Malley is documenting “best practices” that physician offices have developed to coordinate care and identifying challenges and lessons learned. HCFO Releases a New Findings Brief
Hospitals are at the center of a positive national drive toward improved health care quality; however, they face growing demands to participate in clinical quality and performance measurement and reporting programs. Paul Ginsburg, Ph.D., president of the Center for Studying Health System Change (HSC), Debra Draper, Ph.D., associate director at HSC, and colleagues conducted a study which examined hospitals’ quality reporting activities, the strategies hospitals use to manage the demands associated with reporting activities, and the role of external stakeholders in streamlining quality reporting demands. The growing number of different quality reporting programs has both increased the burden for hospitals and posed challenges for the coordination of varying requirements. In response, hospitals have identified several approaches to cope with the growing demands. To learn more, download the full brief. New Data for Researchers
Preliminary estimates of electronic medical record use by office-based physicians: 2008
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February 4, 2009
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