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MCHM 6301: Health Care Policy Analysis

WEEK 1: Introduction to health care policy, and the key players involved.

WELCOME AND INTRODUCTION

Click the sound icon to hear the introduction and lecture overview.

2

Overview

A Look at Health Care Policy by Definition

Determinants of health

Policy analysis

Key issues at the state, local, institutional, provider levels.

Current state of U.S. health care system; how do we evaluate it? (Donabedian’s Model)

The status of Healthcare professions and professionals (Starr’s account)

Definitions of Health

Absence of illness

WHO

“a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity”

The best outcome that medicine can buy

The best outcome that we can afford

4

Determinants of Health

Illness care

Preventive care

Mental health care

Oral health care

Social determinants, such as:

Housing

Education

Income

Built environment

5

What is health policy?

Health policy addresses the following questions:

Where are we with health care and where do we want to be?

What other alternatives are available here and elsewhere?

How can we get there effectively and efficiently?

What is likely to work given our political process? Given our resources?

Policy Analysis Process

Problem definition

Process definition

Process analysis

Delivery modes and expected impacts

Evaluation

Technological feasibility

Political feasibility

Economic and financial viability

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Some Key Issues to Watch

Relationship between insurance and employment

Status, compensation and autonomy of health professionals

Equity in dealing with underserved populations

Adequate supplies of trained personnel

Responsibility for intellectual property

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Issues to Watch - 2

Democratic processes for reaching difficult health policy decisions

Technology development and dissemination

Impacts of social meta-issues, such as:

Aging

Terrorism

9

State and Local Policy Issues

What services to provide under Medicaid?

Use the licensure and insurance regulatory processes to promote adequate supply, increase quality, control costs

Determine role of the public health system

Assure access, especially for uninsured

Emergency response planning & delivery

Deliver mental health services

10

Policy Issues for Institutions

How much uncompensated care?

Stance on National Health Information Net

Participation level in emergency services

Role of volunteerism

Whether or not to rationalize local services

Dealing with antitrust issues locally

Building and maintaining quality services and reputation

11

Policy Issues for Provider Professionals

Breadth of services to provide

Participation in efforts of professional organizations on reimbursement, licensure, regulation, supply of providers

Should I be in an independent practice or join a large group or institution?

Amount of effort to devote to professional leadership and leadership skills.

12

WHERE ARE WE?

When compared to other countries, we find a vast difference in the cost of care in the U.S. making costs of care in the U.S. extremely high. However, the life expectancy in the U.S. is well below that of other countries.

WHERE ARE WE?

US medical error rates –improving

Preventive care getting more attention, but impact of high deductibles unclear

Withdrawal of employer support

Long waits for some for primary care visits

Rapid access to specialists and elective surgery

Lots of repeated tests and unnecessary visits

Considerable inequity in access largely due to inability to pay

14

Contrarian Views

Case-specific results are good for a number of cancers and AIDS

Multi-country statistics are not comparable for a number of reasons

U.S. is paying for much of R&D for rest of world

Cost due to lack of patient financial responsibility

15

Employment-Based Insurance Seen By Some as the Culprit

Costs went up sharply after Medicare and Medicaid started

Most Americans do not bear the cost consequences of health care decisions

Because someone else is paying, consumers:

Do not demand efficiency

Have not demanded price transparency

16

Donabedian Model

Structure Process Outcome

Access

Technical Management

Management of Interpersonal Relationships

Continuity of Care

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Access & Availability

Primary concern in most states – working poor and underinsured

Poor distribution of resources, many pockets of underserved

Racial disparities still abound

Specialists increasing, primary care not

Heavy reliance on immigration of nurses and physicians

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Access

Structure

Pretty good facilities, spotty provider cover

Long waits for primary care in some areas

Process

Dependent on income and/or insurance

Outcome

Very dependent on location and income

19

Technical Management

Structure

Good education, but high regional variability

Fairly tight credentialing processes

Process

High level of waste

Limited attempts to optimize approaches

Outcomes

Quality action, but much room to improve

20

Interpersonal Relationships

Structure

Reimbursement systems shorten contact time

Process

Patients feel rushed, prevention weakened

Doorknob moments lost

Outcome

Emphasis on patient satisfaction

Not clear whether the providers get feedback

21

Continuity of Care

The real casualty in many cases as:

Patients self-refer to triage or for lower costs

People and providers change plans

Was not a concern of Medicaid, changing

Some programs seeing need for case management work on “medical home” concept, but care tends to be diagnosis-related, not oriented to total care

22

Complexity

Programs to help needy are incredibly complex and mutually inconsistent

Each program has own eligibility criteria and payment policies

Each state gets different Medicaid reimbursement via complex formula, mostly based on state income.

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State Governments Are Where Action Is

Many states have refused Medicaid expansion and some cut back on alternatives; yet most seem to acknowledge some responsibility for care

ERISA is a barrier to effective state plans because it exempts many major employers from state regulation

Many experiments going on – stay tuned.

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Starr’s Forecast - 1982

Change in ownership and control

Integration into multi-site organizations

Use of holding companies

Vertical integration of stages

Concentration of ownership and control

To what extent have these been happening?

25

Professional Issues of Interest

Labor substitution

Outsourcing

Rising educational barriers

Disintermediation

Consumer-centered (also called consumer-driven) care

Incentive systems based on quality, cost, or access.

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Factors Supporting Industrialization

Science replacing art

Concerns about cost and efficiency

Heightened belief in markets

Introduction of information technology

Perceived loss of disinterestedness

Higher education levels of general public

Greater access to information sources

27

Medicalization of Society

High proportion of GDP and employment

Continual reminders about health issues

Direct-to-consumer advertising growth

Health-related programs in diverse institutions – workplaces, churches, schools

Reliance on sector for employment growth

Disease mongering

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