Ayanian, J. Z., and P. D. Cleary. 1999. Perceived risks of heart disease and cancer among cigarette smokers. JAMA 281 (11):1019-21.

CONTEXT: Cigarette smoking causes more preventable deaths from cardiovascular disease and cancer than any other modifiable risk factor, but smokers may discount the increased personal risk they face from continued smoking. OBJECTIVE: To assess smokers' perceptions of their risks of heart disease and cancer. DESIGN AND SETTING: Telephone and self-administered survey in 1995 of a probability sample of US households with telephones. PARTICIPANTS: A total of 3031 adults aged 25 to 74 years, including 737 current smokers (24.3%). MAIN OUTCOME MEASURES: Respondents with no history of myocardial infarction (MI) (96.2 %) or cancer (92.9%) assessed their risk of these conditions relative to other people of the same age and sex. Among current smokers, perceived risks were analyzed by demographic and clinical factors using logistic regression. RESULTS: Only 29% and 40% of current smokers believed they have a higher-than-average risk of MI or cancer, respectively, and only 39% and 49% of heavy smokers (> or =40 cigarettes per day) acknowledged these risks. Even among smokers with hypertension, angina, or a family history of MI, 48%, 49%, and 39%, respectively, perceived their risk of MI as higher than average. In multivariate analyses, older (> or =65 years), less educated ( high school graduate), and light smokers (1-19 cigarettes per day) were less likely than younger, more educated, and heavy smokers to perceive an increased personal risk of MI or cancer. CONCLUSIONS: Most smokers do not view themselves at increased risk of heart disease or cancer. As part of multifaceted approaches to smoking cessation, physicians and public health professionals should identify and educate smokers who are not aware of smoking-related health risks.

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Ayanian, J. Z., J. S. Weissman, S. Chasan-Taber, and A. M. Epstein. 1998. Quality of care for two common illnesses in teaching and nonteaching hospitals. Health Aff (Millwood) 17 (6):194-205.

Teaching hospitals are recognized for treating rare diseases, but their value in caring for common illnesses is less clear. To assess quality of care for congestive heart failure and pneumonia, we reviewed the medical records of Medicare beneficiaries in major teaching, other teaching, and nonteaching hospitals in four states. Overall quality was rated better in major and other teaching hospitals than in nonteaching hospitals by physician reviewers and explicit process criteria, but the results varied for different subsets of explicit measures. Future studies should assess whether outcomes differ between teaching and nonteaching hospitals.

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Bailit, H. 1999. Dental insurance, managed care and traditional practice. J Am Dent Assoc 130 (12):1721-7.

BACKGROUND AND OVERVIEW: The author examined the impact of trends in commercial insurance plans and their managed care products on the traditional fee-for-service solo or partnership model of dental practice. CONCLUSION: In response to rising dental expenditures, employers are passing on more costs of dental insurance to employees, dropping dental benefits altogether and moving from indemnity to managed care plans, mainly preferred provider organizations. These trends are likely to continue, resulting in fewer people with employer- based dental insurance coverage. PRACTICE IMPLICATIONS: These changes in dental insurance coverage are unlikely to challenge the traditional model of dental practice within the next five years, largely because of the growing decline in the supply of dental services and a lack of local market concentration of dental managed care companies.

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Berndt, E. R., H. L. Bailit, M. B. Keller, J. C. Verner, and S. N. Finkelstein. 2000. Health care use and at-work productivity among employees with mental disorders.  Health Aff (Millwood) 19 (4):244-56.

This study examines the differential medical care use and work productivity of employees with and without anxiety and with other mental disorders at a large national firm. A unique aspect of this study is that we integrate medical claims and employer-provided, objective productivity data for the same employees. We find extensive mental health comorbidities among anxious employees. Although medical care use differs considerably among employees having no, one, or several treated mental disorders, in most cases their annual average absenteeism and average at-work productivity performance do not differ. Differences among subgroups are observed for job tenure and maternity claims. We discuss these long-term average productivity findings in relation to other literature encompassing shorter time periods.

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Blumenthal, D., and M. B. Buntin. 1998. Carve outs: definition, experience, and choice among candidate conditions. Am J Manag Care 4 Suppl:SP45-57.

Despite increasing discussion of carve outs as a device for controlling costs and improving quality of care, little systematic information exists on the effects of carve outs on cost, quality, and access to healthcare services. In the absence of such information, a conceptual framework is useful for deciding which conditions and populations may benefit from carve-out strategies, and how such arrangements should be designed. After carefully defining carve outs, and distinguishing them from other similar arrangements, this paper identifies five characteristics of a healthcare condition that increase the likelihood that a carve out's benefits will outweigh its drawbacks. The paper also examines the advantages and disadvantages of alternative approaches to structuring and administering carve-out arrangements, including how to pay for services, how to integrate them with mainstream care, provisions for consumer choice and provisions for carve-out accountability. The piece concludes that population carve outs, in which all the healthcare problems of a group of patients are managed by the carve-out organization, have inherent advantages, and identifies candidate conditions for population carve outs.

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Bozzette, S. A., S. H. Berry, N. Duan, M. R. Frankel, A. A. Leibowitz, D. Lefkowitz, C. A. Emmons, J. W. Senterfitt, M. L. Berk, S. C. Morton, and M. F. Shapiro. 1998. The care of HIV-infected adults in the United States. HIV Cost and Services Utilization Study Consortium. N Engl J Med 339 (26):1897-904.

BACKGROUND AND METHODS: In order to elucidate the medical care of patients with human immunodeficiency virus (HIV) infection in the United States, we randomly sampled HIV-infected adults receiving medical care in the contiguous United States at a facility other than military, prison, or emergency department facility during the first two months of 1996. We interviewed 76 percent of 4042 patients selected from among the patients receiving care from 145 providers in 28 metropolitan areas and 51 providers in 25 rural areas. RESULTS: During the first two months of 1996, an estimated 231,400 HIV-infected adults (95 percent confidence interval, 162,800 to 300,000) received care. Fifty-nine percent had the acquired immunodeficiency syndrome according to the case definition of the Centers for Disease Control and Prevention, and 91 percent had CD4+ cell counts of less than 500 per cubic millimeter. Eleven percent were 50 years of age or older, 23 percent were women, 33 percent were black, and 49 percent were men who had had sex with men. Forty-six percent had incomes of less than $10,000 per year, 68 percent had public health insurance or no insurance, and 30 percent received care at teaching institutions. The estimated annual direct expenditures for the care of the patients seen during the first two months of 1996 were $5.1 billion; the expenditures for the estimated 335,000 HIV-infected adults seen at least as often as every six months were $6.7 billion, which is about $20,000 per patient per year. CONCLUSIONS: In this national survey we found that most HIV- infected adults who were receiving medical care had advanced disease. The patient population was disproportionately male, black, and poor. Many Americans with diagnosed or undiagnosed HIV infection are not receiving medical care at least as often as every six months. The total cost of medical care for HIV-infected Americans accounts for less than 1 percent of all direct personal health expenditures in the United States.

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Cleary, P. D., A. M. Zaslavsky, and M. Cioffi. 2000. Sex differences in assessments of the quality of Medicare managed care. Women's Health Issues 10 (2):70-79.

Women rate their care slightly more positively than men on the Medicare managed care Consumer Assessments of Health Plans Study (CAHPS®)survey. On four of five composites, women have comparable or slightly more positive composite scores than men. Responses to individual questions in 1997 indicate that women may have slightly more problems getting referrals, equipment, and assistance. In 1998, there were no differences in difficulty getting a referral or assistance, but women were less likely to say their plan provided help, services, and equipment. Women were less likely to get a flu shot in both years. Further monitoring of CAHPS® data on sex differences in difficulty getting needed medical equipment are warranted.

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Cutler, D. M., M. McClellan, J. P. Newhouse, and D. Remler. 1998. Are medical prices declining?  Evidence from heart attack treatments. Quarterly Journal of Economics 113 (4):991-1024.

We address long-standing problems in measuring medical inflation by estimat­ing two types of price indices. '1 'he first, a Set-vice Price Index, prices specific medical services, as clues the current CI'I. The second, a Cost of Living Index, measures a quality-adjusted cost of treating a health problem. We apply these indices to heart attack treatment between 198;1 and 1111)4. More frequent reweight­ing and accounting for price discounts lowers the measured price change fur heart attacks by three percentage points annually. Accounting for quality change lowers it further; we estimate that the real Cost of Living index fell about 1 percent annually.

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Eisen, S. V., J. A. Shaul, B. Clarridge, D. Nelson, J. Spink, and P. D. Cleary. 1999. Development of a consumer survey for behavioral health services. Psychiatr Serv 50 (6):793-8.

A consumer survey was designed to assess the quality of mental health and substance abuse services and evaluate insurance plans that provide such services. This paper describes the development of the Consumer Assessment of Behavioral Health Services instrument, which began with a review of existing consumer satisfaction surveys and input from several groups working toward development of nationally standardized satisfaction instruments. Consumer focus groups were used to ensure that all the important domains of quality were included, and group members were interviewed to ensure that all items on the instrument were understandable. Results of a pilot test conducted with 160 consumers, 82 enrolled in Medicaid plans and 78 in commercial plans, suggested that the survey was able to distinguish between the two groups in terms of evaluations of their care and insurance plans. Future efforts will focus on further testing of larger, more diverse samples and on developing scoring and reporting formats for the survey that will be useful to consumers and purchasers in choosing behavioral health services and plans.

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Epstein, A., and J. P. Newhouse. 1998. Impact of Medicaid expansion on early prenatal care and health outcomes. Health Care Financing Review 19 (4):85-99.

To assess the impact of Medicaid expan­sion for pregnant women in South Carolina and California, the authors compared change in rates of timely prenatal care, adverse infant and maternal health out­comes, and use of cesarean section for groups of pregnant women who were either uninsured or covered by Medicaid, versus women with private coverage. The results showed small and/or inconsistent changes. Provision of coverage may be the first logi­cal step in improving health care for the uninsured, but outcomes may rely more on outreach, coordination of care, and non­medical interventions than on provision of insurance coverage per se.

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Epstein, A. M. 1998. Rolling down the runway: the challenges ahead for quality report cards. JAMA 279 (21):1691-6.

Today, steadily increasing numbers of hospitals and health plans are publicly releasing performance reports on the quality of care to permit comparisons across different providers. Our experience in recent years has provided important new evidence of what public quality reporting can accomplish and the difficulties it faces. Several years ago, the most important impediments to quality reporting may have been the availability of acceptable quality indicators and the feasibility of voluntary, standardized data collection by health plans. We have made strides in these areas. The Health Employer Data and Information Set (HEDIS) has expanded, and there have been new innovations in collecting data on quality from both patients and physicians. Hundreds of health plans have begun to report standardized quality data on a routine basis either voluntarily or in response to requirements from the Health Care Financing Administration, state Medicaid agencies, or private payers. Now, the more formidable barriers to the use of quality report cards may relate to the ways we report the data and use it. We need to find acceptable middle ground for those who believe information on individual physicians is critical and those who believe it is harmful. We need to reap the advantages in different modalities of data collection and different tools for quality management. Most of all, we need to find better ways to use quality reporting to empower purchasers and consumers and improve quality of care.

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Frank, R. G., C. Koyanagi, and T. G. McGuire. 1997. The politics and economics of mental health 'parity' laws. Health Aff (Millwood) 16 (4):108-19.

The enactment of the Domenici-Wellstone amendment in September 1996, which calls for the elimination of certain limits on coverage for mental health care under private insurance, is being hailed as a major step forward in the quest for "parity" in mental health coverage. Parity legislation is being introduced in a number of state legislatures and is finding new enthusiasm in Congress. In this paper we consider the efficiency rationale for these laws and examine their likely impact in the era of managed care. We conclude that although such successes represent important political events, they may offer only small gains in the efficiency and fairness of insurance markets.

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Frank, R. G., and T. G. McGuire. Parity for mental health and substance abuse care under managed care. Journal of Mental Health Policy and Economics (in press).

Background: Parity in insurance coverage for mental health and substance abuse has been a key goal of mental health and substance abuse care advocates in the United States during most of the past 20 years. The push for parity began during the era of indemnity insurance and fee for service payment when benefit design was the main rationing device in health care. The central economic argument for enacting legislation aimed at regulating the insurance benefit was to address market failure stemming from adverse selection. The case against parity was based on inefficiency related to moral hazard. Empirical analyses provided evidence that ambulatory mental health services were considerably more responsive to the terms of insurance than were ambulatory medical services.
Aims
:  Our goal in this research is to reexamine the economics of parity in the light of recent changes in the delivery of health care in the United States. Specifically managed care has fundamentally altered the way in which health services are rationed. Benefit design is now only one mechanism among many that are used to allocate health care resources and control costs. We examine the implication of these changes for policies aimed at achieving parity in insurance coverage.

Method
:  We develop a theoretical approach to characterizing rationing under managed care. We then analyze the traditional efficiency concerns in insurance, adverse selection and moral hazard in the context of policy aimed at regulating health and mental health benefits under private insurance.

Results:
We show that since managed care controls costs and utilization in new ways Parity in benefit design no longer implies equal access to and quality of mental health and substance abuse care. Because costs are controlled by management under managed care and not primarily by out of pocket prices paid by consumers, demand response recedes as an efficiency argument against parity. At the same time parity in benefit design may accomplish less with respect to providing a remedy to problems related to adverse selection.

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Frank, R. G., and T. G. McGuire. 1998. The economic functions of carve outs in managed care. Am J Manag Care 4 Suppl:SP31-9.

This paper considers the economic functions of contracting separately for a portion of the insurance risk, offering both the payer's (i.e., employer's) and the health plan's perspective. Four major forms of carve outs are discussed: (1) payer specialty carve outs from all health plans; (2) payer specialty carve outs from only indemnity and preferred provider organization arrangements; (3) individual health plan carve outs to specialty vendors; and (4) group practice carve outs to specialty organizations. The paper examines whether carving out care fosters the payer's goal of delivering reasonable healthcare efficiently, how adverse selection affects the provision of healthcare, and the costs of providing this specialized care.

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Frank, R. G., T. G. McGuire, J. P. Bae, and A. Rupp. 1997. Solutions for adverse selection in behavioral health care. Health Care Financing Review 18 (3):109-122.

Health plans have incentives to discour­age high-cost enrollees (such as persons with mental illness) from joining. Public policy to counter incentives created by adverse selection is difficult when managed care controls cost through methods that are largely beyond the grasp of direct regula­tion. In this article, the authors evaluate three approaches to dealing with selection incentives: risk adjustment, the carving out of benefits, and cost- or risk-sharing between the payer and the plan. Adverse selection is a serious problem in the context of managed care. Risk adjustment is not likely to help much, but carving out the benefit and cost-­sharing are promising directions for policy.

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Gittell, J. H., K. M. Fairfield, B. Bierbaum, W. Head, R. Jackson, M. Kelly, R. Laskin, S. Lipson, J. Siliski, T. Thornhill, and J. Zuckerman. 2000. Impact of relational coordination on quality of care, postoperative pain and functioning, and length of stay: a nine-hospital study of surgical patients. Med Care 38 (8):807-19.

BACKGROUND: Health care organizations face pressures from patients to improve the quality of care and clinical outcomes, as well as pressures from managed care to do so more efficiently. Coordination, the management of task interdependencies, is one way that health care organizations have attempted to meet these conflicting demands. OBJECTIVES: The objectives of this study were to introduce the concept of relational coordination and to determine its impact on the quality of care, postoperative pain and functioning, and the length of stay for patients undergoing an elective surgical procedure. Relational coordination comprises frequent, timely, accurate communication, as well as problem-solving, shared goals, shared knowledge, and mutual respect among health care providers. RESEARCH DESIGN: Relational coordination was measured by a cross-sectional questionnaire of health care providers. Quality of care was measured by a cross-sectional postoperative questionnaire of total hip and knee arthroplasty patients. On the same questionnaire, postoperative pain and functioning were measured by the WOMAC osteoarthritis instrument. Length of stay was measured from individual patient hospital records. SUBJECTS: The subjects for this study were 338 care providers and 878 patients who completed questionnaires from 9 hospitals in Boston, MA, New York, NY, and Dallas, TX, between July and December 1997. MEASURES: Quality of care, postoperative pain and functioning, and length of acute hospital stay. RESULTS: Relational coordination varied significantly between sites, ranging from 3.86 to 4.22 (P 0.001). Quality of care was significantly improved by relational coordination (P 0.001) and each of its dimensions. Postoperative pain was significantly reduced by relational coordination (P = 0.041), whereas postoperative functioning was significantly improved by several dimensions of relational coordination, including the frequency of communication (P = 0.044), the strength of shared goals (P = 0.035), and the degree of mutual respect (P = 0.030) among care providers. Length of stay was significantly shortened (53.77%, P 0.001) by relational coordination and each of its dimensions. CONCLUSIONS: Relational coordination across health care providers is associated with improved quality of care, reduced postoperative pain, and decreased lengths of hospital stay for patients undergoing total joint arthroplasty. These findings support the design of formal practices to strengthen communication and relationships among key caregivers on surgical units.

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Goldman, D. P., J. L. Buchanan, and E. B. Keeler. 2000. Simulating the impact of medical savings accounts on small business. Health Serv Res 35 (1 Pt 1):53-75.

OBJECTIVE: To simulate whether allowing small businesses to offer employer-funded medical savings accounts (MSAs) would change the amount or type of insurance coverage. STUDY SETTING: Economic policy evaluation using a national probability sample of nonelderly non- institutionalized Americans from the 1993 Current Population Survey (CPS). STUDY DESIGN: We used a behavioral simulation model to predict the effect of MSAs on the insurance choices of employees of small businesses (and their families). The model predicts spending by each family in a FFS plan, an HMO plan, an MSA, and no insurance. These predictions allow us to compute community-rated premiums for each plan, but with firm-specific load fees. Within each firm, employees then evaluate each option, and the firm decides whether to offer insurance- and what type-based on these evaluations. If firms offer insurance, we consider two scenarios: (1) all workers elect coverage; and (2) workers can decline the coverage in return for a wage increase. PRINCIPAL FINDINGS: In the long run, under simulated conditions, tax-advantaged MSAs could attract 56 percent of all employees offered a plan by small businesses. However, the fraction of small-business employees offered insurance increases only from 41 percent to 43 percent when MSAs become an option. Many employees now signing up for a FFS plan would switch to MSAs if they were universally available. CONCLUSIONS: Our simulations suggest that MSAs will provide a limited impetus to businesses that do not currently cover insurance. However, MSAs could be desirable to workers in firms that already offer HMOs or standard FFS plans. As a result, expanding MSA availability could make it a major form of insurance for covered workers in small businesses. Overall welfare would increase slightly.

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Goldman, D. P., A. Leibowitz, and J. L. Buchanan. 1998. Cost containment and adverse selection in Medicaid HMOs. Journal of the American Statistical Association (March).

This article examines whether substituting a health maintenance organization (HMO) for traditional fee-for-service (FFS) Medicaid insurance reduces the cost of children's health care. The estimation is complicated by the fact that in nonrandomized settings, unobserved selection can bias estimates of HMO performance. To control for selection, researchers often rely on parametric assumptions or instrumental variables estimation to compute selection-free estimates. But the robustness of these approaches has been questioned. We pursue a different approach based on semiparametric maximum likelihood techniques. Monte Carlo and applied economic studies have shown this method to be quite robust in a variety of contexts. We apply this model to data from a self-selected sample of children in          either a Medicaid HMO or a traditional FFS in Florida. After controlling for selection, we estimate that the HMO reduced expenditures on children by 9.1%. Conversely, a model assuming no selection predicts no savings from the HMO. We also validate our estimates by comparing our results with those obtained from a randomized sample of HMO and FFS enrollees. These indicate that the HMO reduces expenditures by 13.6%. We conclude that selection can substantially bias estimates of HMO impact and that this technique provides a potentially useful method for accounting for this bias.

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Haas, J. S., P. D. Cleary, A. L. Puopolo, H. R. Burstin, E. F. Cook, and T. A. Brennan. 1998. Differences in the professional satisfaction of general internists in academically affiliated practices in the greater-Boston area. Ambulatory Medicine Quality Improvement Project Investigators. J Gen Intern Med 13 (2):127-30.

Managed care has created more professional constraints for general internists. We surveyed 198 general internists at 12 academically affiliated practices in the greater-Boston area to examine professional satisfaction. Overall, these physicians were moderately satisfied (mean of 59.1 on a 100-point scale). Before adjustment, women had lower overall satisfaction than men, as well as poorer satisfaction with the domains of career concerns and patient access. Gender had no independent effect on satisfaction after adjustment for age, income, percentage of time providing direct patient care, work status, and site. Younger physicians also had lower overall satisfaction, and these differences remained after adjustment. Improvements in professional satisfaction may be required to ensure the continued recruitment of young physicians, particularly women, into general internal medicine.

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Hays, R. D., J. A. Shaul, V. S. Williams, J. S. Lubalin, L. D. Harris-Kojetin, S. F. Sweeny, and P. D. Cleary. 1999. Psychometric properties of the CAHPS 1.0 survey measures. Consumer Assessment of Health Plans Study. Med Care 37 (3 Suppl):MS22-31.

OBJECTIVES: Consumer surveys are being used increasingly to assess the quality of care provided by health plans, physician groups, and clinicians. The purpose of the Consumer Assessment of Health Plans Study (CAHPS) is to develop an integrated and standardized set of surveys designed to collect reliable and valid information about health plan performance from consumers. This article reports psychometric results for the CAHPS 1.0 survey items in samples of individuals with Medicaid or private health insurance coverage. METHODS: Reliability estimates for CAHPS 1.0 measures were estimated in a sample of 5,878 persons on Medicaid and 11,393 persons with private health insurance. Correlations of the CAHPS global rating of the health plan with willingness to recommend the plan and intention to re-enroll were estimated in a sample of 313 persons on Medicaid. The association of the rating of the health plan with ratings using a 5-point Excellent-to- Poor response scale also was investigated in the latter sample and in a sample of 539 persons with private health insurance. RESULTS: The CAHPS measures appeared to have good reliability, particularly at the health- plan level. Responses from 300 consumers per health plan tend to yield estimates that are reliable enough for health plan comparisons, especially among the privately insured. The global health plan rating was significantly correlated with consumers' willingness to recommend the plan to family and friends and to their intention to re-enroll in the plan if given a choice. CONCLUSIONS: The CAHPS 1.0 survey instrument appears to have excellent psychometric properties.

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Huskamp, H. A. 1998. How a managed behavioral health care carve-out plan affected spending for episodes of treatment [see comments]. Psychiatr Serv 49 (12):1559-62.

OBJECTIVE: This study examined the impact on spending for episodes of mental health and substance abuse treatment of a managed behavioral health care carve-out program implemented by the Massachusetts Group Insurance Commission in July 1993. METHODS: Episodes of mental health and substance abuse treatment were defined using claims and enrollment data from before and after the carve-out implementation. Regression models were used to compare spending per episode for different types of episodes of mental health and substance abuse care: those involving care provided only in an inpatient facility (that is, inpatient care or partial hospitalization), those involving both inpatient-facility and outpatient care, and those involving only outpatient care. RESULTS: Adoption of the carve-out plan was associated with a large decrease in spending per episode across all three episode types, particularly for episodes involving inpatient-facility care. The decrease was 54 percent for inpatient-facility-only episodes, 46 percent for combined inpatient facility and outpatient episodes, and 21 percent for outpatient-only episodes. The decrease in spending per episode was larger for episodes involving a diagnosis of either unipolar depression or substance dependence. CONCLUSIONS: The findings suggest that spending per episode of mental health and substance abuse treatment may drop substantially after a carve-out is implemented. Individuals with a diagnosis of either unipolar depression or substance dependence seem to be disproportionately affected. It appears that even weak financial incentives placed on the managed behavioral health care vendor can result in dramatic changes in spending patterns for episodes of mental health and substance abuse treatment.

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Huskamp, H. A. 1999. Episodes of mental health and substance abuse treatment under a managed behavioral health care carve-out. Inquiry 36 (2):147-61.

Little is known about the effect of a managed behavioral health care (MBHC) carve-out on treatment episodes for a mental health/substance abuse (MHSA) condition. This study found adoption of a carve-out for Massachusetts state employees associated with a dramatic drop in total MHSA costs per episode (particularly for individuals with certain severe MHSA conditions). The carve-out also was associated with a shift away from the use of facility care toward the use of outpatient care for enrollees with a diagnosis of unipolar depression.

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Huskamp, H. A., M. B. Rosenthal, R. G. Frank, and J. P. Newhouse. 2000. The Medicare prescription drug benefit: how will the game be played? [see comments]. Health Aff (Millwood) 19 (2):8-23.

Most recent proposals to add a prescription drug benefit to the Medicare program suggest using pharmacy benefit managers (PBMs) to control costs and promote quality. However, the proposals give little detail on the institutional arrangements that would govern PBM operations and drug procurement. The recent Congressional Budget Office cost estimate of the Clinton administration's proposal reflects this lack of detail on how PBMs would function. We sketch an approach for structuring PBM operations that focuses on competition among PBMs, manufacturers, and distributors; incentive pricing; and risk sharing with PBMs.

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Kao, A. C., D. C. Green, N. A. Davis, J. P. Koplan, and P. D. Cleary. 1998a. Patients' trust in their physicians: effects of choice, continuity, and payment method. J Gen Intern Med 13 (10):681-6.

OBJECTIVE: To evaluate the extent to which physician choice, length of patient-physician relationship, and perceived physician payment method predict patients' trust in their physician. DESIGN: Survey of patients of physicians in Atlanta, Georgia. PATIENTS: Subjects were 292 patients aged 18 years and older. MEASUREMENTS AND MAIN RESULTS: Scale of patients' trust in their physician was the main outcome measure. Most patients completely trusted their physicians "to put their needs above all other considerations" (69%). Patients who reported having enough choice of physician (p .05), a longer relationship with the physician (p .001), and who trusted their managed care organization (p .001) were more likely to trust their physician. Approximately two thirds of all respondents did not know the method by which their physician was paid. The majority of patients believed paying a physician each time a test is done rather than a fixed monthly amount would not affect their care (72.4%). However, 40.5% of all respondents believed paying a physician more for ordering fewer than the average number of tests would make their care worse. Of these patients, 53.3% would accept higher copayments to obtain necessary medical tests. CONCLUSIONS: Patients' trust in their physician is related to having a choice of physicians, having a longer relationship with their physician, and trusting their managed care organization. Most patients are unaware of their physician's payment method, but many are concerned about payment methods that might discourage medical use.

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Kao, A. C., D. C. Green, A. M. Zaslavsky, J. P. Koplan, and P. D. Cleary. 1998b. The relationship between method of physician payment and patient trust [see comments]. JAMA 280 (19):1708-14.

CONTEXT: Trust is the cornerstone of the patient-physician relationship. Payment methods that place physicians at financial risk have raised concerns about patients' trust in physicians to act in patients' best interests. OBJECTIVE: To evaluate the extent to which methods of physician payment are related to patient trust. DESIGN: Cross-sectional telephone interview survey done between January and June 1997. SETTING: Health plans of a large national insurer in Atlanta, Ga, the Baltimore, Md-Washington, DC, area, and Orlando, Fla. PARTICIPANTS: A total of 2086 adult managed care and indemnity patients. MAIN OUTCOME MEASURE: A 10-item scale (alpha = .94) assessing patients' trust in physicians. RESULTS: More fee-for-service (FFS) indemnity patients (94%) completely or mostly trust their physicians to "put their health and well-being above keeping down the health plan's costs" than salary (77%), capitated (83%), or FFS managed care patients (85%) (P.001 for pairwise comparisons). In multivariate analyses that adjusted for potentially confounding factors, FFS indemnity patients also had higher scores on the 10-item trust scale than salary (P.001), capitated (P.001), or FFS managed care patients (P.01). The effects of payment method on patient trust were reduced when a measure based on patients' reports about physician behavior (eg, Does your physician take enough time to answer your questions?) was included in the regression analyses, but the differences remained statistically significant, except for the comparison between FFS managed care and FFS indemnity patients (P=.08). Patients' perceptions of how their physicians were paid were not independently associated with trust, but the 37.7% who said they did not know how their physicians were paid had higher levels of trust than other patients (P.01). A total of 30.2% of patients were incorrect about their physicians' method of payment. CONCLUSIONS: Most patients trusted their physicians, but FFS indemnity patients have higher levels of trust than salary, capitated, or FFS managed care patients. Patients' reports of physician behavior accounted for part of the variation in patients' trust in physicians who are paid differently. The impact of payment methods on patient trust may be mediated partly by physician behavior.

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Keating, N. L., P. D. Cleary, A. S. Rossi, A. M. Zaslavsky, and J. Z. Ayanian. 1999. Use of hormone replacement therapy by postmenopausal women in the United States [see comments]. Ann Intern Med 130 (7):545-53.

BACKGROUND: The benefits and risks of hormone replacement therapy (HRT) in postmenopausal women are not fully defined, and individual characteristics and preferences may influence decisions to use this therapy. Previous studies of postmenopausal women who use HRT have been conducted in local or highly selected cohorts or have not focused on current use. OBJECTIVE: To examine sociodemographic, clinical, and psychological factors associated with current use of HRT in a national population-based cohort. DESIGN: Random-digit telephone survey. SETTING: Probability sample of U.S. households with a telephone. PARTICIPANTS: 495 postmenopausal women 50 to 74 years of age in 1995. MEASUREMENTS: Current use of HRT. RESULTS: Current use of HRT was reported by 37.6% of women (58.7% of those who underwent hysterectomy and 19.6% of those who did not undergo hysterectomy; P = 0.001). In multivariable analyses, use of HRT was more common among women in the South (adjusted odds ratio, 2.67 [95% CI, 1.08 to 6.59]) and West (odds ratio, 2.76 [CI, 1.01 to 7.53]) than the Northeast. Use was more common among college graduates (odds ratio, 3.72 [CI, 1.29 to 10.71]) and less common among women with diabetes mellitus (odds ratio, 0.17 [CI, 0.05 to 0.51]). Other cardiac risk factors and most psychological characteristics were not associated with HRT use. CONCLUSIONS: Sociodemographic factors, such as region and education, may be more strongly associated with use of HRT than clinical factors, such as risk for cardiovascular disease. Future efforts should focus on understanding sociodemographic variations, defining which women are most likely to benefit, and targeting therapy to them.

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Keating, N. L., A. M. Zaslavsky, and J. Z. Ayanian. 1998. Physicians' experiences and beliefs regarding informal consultation [see comments]. JAMA 280 (10):900-4.

CONTEXT: Efforts to control medical expenses by emphasizing primary care and limiting specialty care may influence how physicians use informal or "curbside" consultation. OBJECTIVE: To understand physicians' use of and beliefs about informal consultation. DESIGN: Survey mailed in July 1997. PARTICIPANTS: Of a random sample of Massachusetts general internists, pediatricians, cardiologists, orthopedic surgeons (n=300 each), and infectious disease specialists (n=200) surveyed, 1225 were eligible and 705 (58%) responded. MAIN OUTCOME MEASURES: Self-reported use of and beliefs about informal consultation. RESULTS: Generalist physicians requested more informal consultations than specialists (median, 3 vs 1 per week; P.001) and were asked to provide fewer (2 vs 5 per week; P.001). In multivariate analyses, physicians in a health maintenance organization, multispecialty group, or single-specialty group requested more informal consultations than those in solo practice (82%, 40%, and 28% more, respectively; all P.001) and were more often asked to provide them (43%, 63%, and 14% more, respectively; all P.05). Physicians with at least 30% of their income from capitation requested 38% more and were asked to provide 46% more informal consultations than those with little or no income from capitation (both P.001). Generalists' overall approval of informal consultation was greater than specialists' (mean 5.9 vs 5.1 on a 7-point Likert scale; P.001), and approval was strongly associated with beliefs about how informal consultation affects quality of care (P.001). CONCLUSIONS: Use of informal consultation is common, varies by specialty, practice setting, and capitation, and therefore may increase with current trends toward group practice and managed care. Because overall approval of informal consultation is strongly associated with beliefs about how it affects quality of care, this issue should be carefully considered by physicians who participate in informal consultation.

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Keeler, E. B., G. Carter, and J. P. Newhouse. 1998. A model of the impact of reimbursement schemes on health plan choice. Journal of Health Economics 17:297-320.

Flat capitation (uniform prospective payments) makes enrolling healthy enrollees profitable to health plans. Plans with relatively generous benefits may attract the sick and fail through a premium spiral. We simulate a model of idealized managed competition to explore the effect on market performance of alternatives to flat capitation such as severity-adjusted capitation and reduced supply-side cost-sharing. In our model flat capitation causes severe market problems. Severity adjustment and to a lesser extent reduced supply-side cost-sharing improve market performance, but outcomes are efficient only in cases in which people bear the marginal costs of their choices.

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Landon, B. E., C. Tobias, and A. M. Epstein. 1998. Quality management by state Medicaid agencies converting to managed care: plans and current practice. JAMA 279 (3):211-6.

CONTEXT: Enrollment in Medicaid managed care plans has increased more than 5-fold in this decade, but how states monitor and encourage quality of care in these programs is not known. OBJECTIVE: To characterize the quality monitoring and assurance activities of state Medicaid agencies for Medicaid beneficiaries enrolled in comprehensive prepaid managed care programs. DESIGN: Structured telephone survey conducted between October 1996 and January 1997. SETTING: State Medicaid agencies. PARTICIPANTS: Representatives from all state Medicaid agencies, including the District of Columbia, with beneficiaries enrolled in comprehensive prepaid managed care plans as of July 1, 1996. MAIN OUTCOME MEASURES: Proportion of states with specific quality monitoring and assurance activities for Medicaid managed care. RESULTS: We surveyed all 34 states enrolling beneficiaries in comprehensive managed care programs. In 1996, all 34 states enrolled the population receiving assistance from the Aid to Families With Dependent Children (AFDC) program, while only 21 (62%) and 15 (44%) enrolled the disabled and elderly populations, respectively. In the period 1995 to 1996, 19 states (63%) collected data on satisfaction with care, and 25 states (83%) collected data on childhood immunizations. No more than half of the states collected data on other selected measures of access and quality, but a substantial number planned to collect such data in 1997. While at most 37% of states were providing comparative data to health plans, up to 80% were planning to provide such information in 1997. Similarly, while at most 10% of states provided beneficiaries with such information, up to 38% planned to do so in 1997. The breadth of contracting requirements designed to assure quality varied substantially across states. CONCLUSIONS: State Medicaid agencies have already begun adapting to their new roles as purchasers of health care. Continued monitoring is essential to ensure that state agencies implement planned programs and that quality of care for Medicaid enrollees is preserved or improved.

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Landon, B. E., I. B. Wilson, and P. D. Cleary. 1998. A conceptual model of the effects of health care organizations on the quality of medical care. JAMA 279 (17):1377-82.

There has been a great deal of interest in recent years in developing measures of health care quality that can be used to characterize and study the effects of health plans. However, because of the recent emergence of diverse types of health care organizations, it is often difficult to know which parts of a plan should be combined for analysis purposes. Also, simple taxonomies of health maintenance organizations (eg, staff, independent practice associations, group, and network) no longer adequately describe the diverse types of organizations that have become common. In this article we describe these trends, explain why older taxonomies of health care plans are not adequate, and present a new framework for characterizing and studying the effects of diverse types of plans.

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Marquis, M. S., and J. L. Buchanan. 1999. Simulating the effects of employer contributions on adverse selection and health plan choice. Health Serv Res 34 (4):813-37.

OBJECTIVE: To investigate the effect of employer contribution policy and adverse selection on employees' health plan choices. STUDY DESIGN: Microsimulation methods to predict employees' choices between two health plan options and to track changes in those choices over time. The simulation predicts choice given premiums, healthcare spending by enrollees in each plan, and premiums for the next period. DATA SOURCES: The simulation model is based on behavioral relationships originally estimated from the RAND Health Insurance Experiment (HIE). The model has been updated and recalibrated. The data processed in the simulation are from the 1993 Current Population Employee Benefits Supplement sample. PRINCIPAL FINDINGS: A higher fraction of employees choose a high-cost, high-benefit plan if employers contribute a proportional share of the premium or adjust their contribution for risk selection than if employees pay the full cost difference out-of-pocket. When employees pay the full cost difference, the extent of adverse selection can be substantial, which leads to a collapse in the market for the high-cost plan. CONCLUSIONS: Adverse selection can undermine the managed competition strategy, indicating the importance of good risk adjusters. A fixed employer contribution policy can encourage selection of more efficient plans. Ironically, however, it can also further adverse selection in the absence of risk adjusters.

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Normand, S. L., B. J. McNeil, L. E. Peterson, and R. H. Palmer. 1998. Eliciting expert opinion using the Delphi technique: identifying performance indicators for cardiovascular disease. Int J Qual Health Care 10 (3):247-60.

Combining opinion from expert panels is becoming a more common method of selecting criteria to define quality of health care. The Rand Corporation pioneered this method is the 1950s and 1960s in the context of forecasting technological events. Since then, numerous organizations have adopted the methodology to develop local and national policy. In the context of quality of care, opinion is typically elicited from a sample of experts regarding the appropriateness or importance of a medical treatment for several well-defined clinical cohorts. The information from the experts is then combined in order to create a standard or performance measure of care. This article describes how to use the panel process to elicit information from diverse panels of experts. Methods are demonstrated using the data from five distinct panels convened as part of the Harvard Q-SPAN-CD study, a nationally- funded project whose goal is to identify a set of cardiovascular- related performance measures.

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Palmer, R. H. 1998. Using health outcomes data to compare plans, networks and providers [see comments]. Int J Qual Health Care 10 (6):477-83.

PURPOSE: To analyze the challenge of using health outcomes data to compare plans, networks and providers. ANALYSIS: Different questions require different designs for collecting and interpreting health outcomes data. When evaluating effectiveness of treatments, tests or other technologies, the question is what processes improve health outcomes? For this purpose, the strongest evidence comes from a double- blind randomized controlled trial. In program evaluations, the question is 'what is the impact of this policy and related programs on health outcomes?' For this purpose, we may be able to randomize subjects, but are more likely to have a quasi-experimental or an epidemiological design. When we compare plans, networks and providers for quality improvement purposes the question is 'do these specific plans perform differently from one another?', or, 'are these specific plans improving their performance over time?' We want to isolate for study the effects attributable to specific plans. Designs that yield strong evidence cannot be applied because we lack experimental control. CONCLUSIONS: When we already have strong evidence linking specific processes of care with specific outcomes, comparing process data may reveal more about performance of plans, networks and providers than comparing outcomes data. Comparisons of process data are easier to interpret and more sensitive to small differences than comparisons of outcomes data. Outcomes data are most useful for tracking care given by high volume providers over long periods of time, targeting areas for quality improvement and for detecting problems in implementation of processes of care.

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Remler, D. K., K. Donelan, R. J. Blendon, G. D. Lundberg, L. L. Leape, D. R. Calkins, K. Binns, and J. P. Newhouse. 1997. What do managed care plans do to affect care? Results from a survey of physicians. Inquiry 34 (3):196-204.

Little is known about physicians' exposure to managed care techniques that affect clinical practice. In 1995, we conducted a survey of 2,003 U.S. physicians asking them about their share of patients subject to a variety of managed care techniques. Nationally, 24% of physicians received some form of capitation payment for their patients. The two most widely used techniques were utilization review (UR), applied to an average of 59% of patients, and discounted fees, applied to an average of 38% of patients. Although UR was common, ultimate denial rates of coverage were very low: at most 3% for the types of care studied. Use of managed care techniques varied more within states than between states. Conventional measures of HMO market penetration revealed little about how managed care affects physicians.

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Reuben, D. B., J. F. Schnelle, J. L. Buchanan, R. S. Kington, G. L. Zellman, D. O. Farley, S. H. Hirsch, and J. G. Ouslander. 1999. Primary care of long-stay nursing home residents:  Approaches of three health maintenance organizations. Journal of the American Geriatrics Society 47:131-138.

OBJECTIVE: To describe the innovative programs of three health maintenance organizations (HMOs) for providing pri­mary care for long-stay nursing home (NH) residents and to compare this care with that of fee-for-service (FFS) residents at the same NHs.  DESIGN: Cross-sectional interviews and case-studies, in­cluding retrospective chart reviews for 1 year.  SETTING: The programs were based in 20 community­based nursing homes in three regions (East, West, Far West).
PARTICIPANTS
: Administrative and professional staff of HMOs in three regions and 20 NHs; 215 HMO and 187 FFS residents at these homes were studied.  MAIN OUTCOME MEASURES: Emergency department (ED) and hospital utilization.  RESULTS: All HMO programs utilized nurse practitioner/ physician's assistants (NP/PA), but the structural configura­tion of physicians' (MD) practices differed substantially. At nursing homes within each region, all three HMO programs provided more total (MD plus NP/PA) visits per month than did FFS care (2.0 vs 1.1, 1.3 vs .6, and 1.4 vs .8 visits per month; all P < .05). The HMO that provided the most total visits had a significantly lower percentage of residents trans­ferred to EDs (6°/a vs 16%, P = .048), fewer ED visits per resident (0.1 vs .4 per year, P = .027), and fewer hospitaliza­tions per resident (0.1 vs .5 per year, P = .038) than FFS residents; these differences remained significant in multivari­ate analyses. However, the other two programs did not achieve the same benefits on healthcare utilization.  CONCLUSIONS: HMO programs for NH residents provide more primary care and have the potential to reduce ED and hospital use compared with FFS care. However, not all pro­grams have been associated with decreased ED and hospital utilization, perhaps because of differences in structure or implementation problems. 

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Rosenthal, M. B. 1999. Risk sharing in managed behavioral health care. Health Aff (Millwood) 18 (5):204-13.

While policymakers have expressed concern over the impact of risk sharing with providers on treatment patterns, the literature lacks decisive evidence on which to base policy. This paper evaluates the impact of a contracting change within a managed behavioral health organization from a fee-for-service system to a case-rate system with utilization management delegated to providers. The contracting change resulted in a 25 percent reduction in mental health visits per episode. This effect varies with the dollar amount of the case rate and is more pronounced for providers with a larger share of revenue from risk contracts and with intensive utilization management programs.

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Schnelle, J. F., J. G. Ouslander, J. Buchanan, G. Zellman, D. Farley, S. H. Hirsch, and D. B. Reuben. 1999. Objective and subjective measures of the quality of managed care in nursing homes. Med Care 37 (4):375-83.

BACKGROUND: The number of nursing home (NH) residents enrolled in managed care plans (HMO) will increase, and there is concern that the quality of their medical care may be compromised by cost-containment pressures. In this study, we evaluated the medical care of residents enrolled in 3 health maintenance organizations (HMO) that developed specific long-term care programs. OBJECTIVES: To compare the medical care received by NH residents enrolled in HMO and Fee-for-Service (FFS) plans with both objective process of care and consumer perception (subjective) measures. To describe the relationship between the objective and subjective measures. MEASURES: Number of primary care visits per month; process of medical care for 2 geriatric tracer conditions (falls, fevers); family and residents' perceptions of the adequacy of sickness episode management; and the frequency of primary provider visits. DESIGN: Quasi-experimental. RESULTS: HMO residents received more timely and appropriate responses to falls and fevers than did FFS residents. HMO residents also received more frequent routine visits by a primary care provider team consisting of a physician and nurse practitioner. Consumer perceptions of quality did not differ between the HMO and FFS groups. Families within both groups were significantly more positive than were residents about the frequency of visits by both physicians and nurse practitioners. Within the HMO group, both families and residents were more positive about the frequency of nurse practitioner visits than were physician visits even when the frequency of visits by the 2 providers were similar. CONCLUSIONS: Although the medical care received by HMO residents was better on most objective process measures than that received by FFS residents, consumer perceptions of care did not detect those differences. NH residents and families have different perceptions about the adequacy of visits by physicians and nurse practitioners, and both families and residents appear to have different expectations concerning how often they want physicians to visit as compared with nurse practitioners.

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Shaul, J. A., F. J. Fowler, Jr., A. M. Zaslavsky, C. J. Homer, P. M. Gallagher, and P. D. Cleary. 1999. The impact of having parents report about both their own and their children's experiences with health insurance plans. Med Care 37 (3 Suppl):MS59-68.

OBJECTIVES: The aim of this study was to determine whether parents rate their children's care differently when they also rate their own care than when they do not. METHODS: Subjects were employees of Washington State who had been enrolled in a health plan for at least 6 months and who had at least one covered child. Subjects were randomly assigned to four study groups that were surveyed using different protocols. To assess the stability of responses over time, a follow-up telephone interview was conducted with individuals in two of the groups. RESULTS: Parents or guardians who received both the Adult and Child Surveys were less likely to complete a survey than those who received only one survey. Responses to selected survey questions were quite stable between survey administrations. Parents who rated only their child's health care experiences generally gave more positive responses than those who also rated their own care, although few of these differences were statistically significant. This may have been due, in part, to the lower response rates in the latter group. The pairs of survey questions that ask about the adult's and child's experiences with the same aspects of care had moderate to high levels of association. The pair with the weakest association asked how clearly the doctor or nurse explained things to the adult or the child. CONCLUSIONS: Sending both an adult and child survey to an adult could have an effect on the pattern of responses and result in lower response rates, but this might be a cost-effective way to collect reports about both adult and child health care.

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Thomas, E. J., D. M. Studdert, J. P. Newhouse, B. I. Zbar, K. M. Howard, E. J. Williams, and T. A. Brennan. 1999. Costs of medical injuries in Utah and Colorado. Inquiry 36 (3):255-64.

Patient injuries are thought to have a substantial financial impact on the health care system, but recent studies have been limited to estimating the costs of adverse drug events in teaching hospitals. This analysis estimated the costs of all types of patient injuries from a representative sample of hospitals in Utah and Colorado. We detected 459 adverse events (of which 265 were preventable) by reviewing the medical records of 14,732 randomly selected 1992 discharges from 28 hospitals. The total costs (all results are discounted 1996 dollars) were $661,889,000 for adverse events, and $308,382,000 for preventable adverse events. Health care costs totaled $348,081,000 for all adverse events and $159,245,000 for the preventable adverse events. Fifty-seven percent of the adverse event health care costs, and 46% of the preventable adverse event costs were attributed to outpatient medical care. Surgical complications, adverse drug events, and delayed or incorrect diagnoses and therapies were the most expensive types of adverse events. The costs of adverse events were similar to the national costs of caring for people with HIV/AIDS, and totaled 4.8% of per capita health care expenditures in these states.

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vom Eigen, K. A., J. D. Walker, S. Edgman-Levitan, P. D. Cleary, and T. L. Delbanco. 1999. Carepartner experiences with hospital care. Med Care 37 (1):33-8.

OBJECTIVES: Family members and other "carepartners" often play an important role in the care and support of patients during and after hospitalization, yet little is known about how they assess their hospital experience or the factors that may influence their perceptions. METHODS: A nationwide telephone survey of 1,800 recently discharged patients and their carepartners about their hospital experience was conducted. Carepartner responses in six domains of care were summarized, and multivariable regression analysis was used to detect independent predictors of more frequent problem reports by carepartners. RESULTS: Carepartners reported problems most frequently in the domains of emotional support (23.9%), discharge planning (20.3%), and family participation (17.6%). Independent predictors of more frequent carepartner problem reports included poor subjective patient health status, emergency hospitalization, nonsurgical admission, carepartner income less than $7,500/year, younger carepartner age, noninvolvement of the patient's regular doctor, less frequent carepartner visits during the hospitalization, and less time spent with the patient after discharge. CONCLUSIONS: Better awareness of the problems carepartners experience and attention to improving quality in these areas may facilitate family involvement in patient care and enhance carepartner and patient satisfaction.

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Weissman, J. S., J. Z. Ayanian, S. Chasan-Taber, M. J. Sherwood, C. Roth, and A. M. Epstein. 1999a. Hospital readmissions and quality of care. Med Care 37 (5):490-501.

BACKGROUND: Readmission rates are often proposed as markers for quality of care. However, a consistent link between readmissions and quality has not been established. OBJECTIVE: To test the relation of readmission to quality and the utility of readmissions as hospital quality measures. SUBJECTS: One thousand, seven hundred and fifty-eight Medicare patients hospitalized in four states between 1991 to 1992 with pneumonia or congestive heart failure (CHF). DESIGN: Case control. MEASURES: Related adverse readmissions (RARs), defined as readmissions that indicate potentially sub-optimal care during initial hospitalization, were identified from administrative data using readmission diagnoses and intervening time periods designated by physician panels. We used linear regression to estimate the association between implicit and explicit quality measures and readmission status (RARs, non-RAR readmissions, and nonreadmissions), adjusting for severity. We tested whether RARs were associated with inferior care and performed simulations to determine whether RARs discriminated between hospitals on the basis of quality. RESULTS: Compared with nonreadmitted pneumonia patients, patients with RARs had lower adjusted quality measured both by explicit (0.25 standardized units, P = 0.004) and implicit methods (0.17, P = 0.047). Adjusted differences for CHF patients were 0.17 (P = 0.048) and 0.20 (P = 0.017), respectively. In some analyses, patients with non-RAR readmissions also experienced lower quality. However, rates of inferior quality care did not differ significantly by readmission status, and simulations identified no meaningful relationship between RARs and hospital quality of care. CONCLUSIONS: RARs are statistically associated with lower quality of care. However, neither RARs nor other readmissions appear to be useful tools for identifying patients who experience inferior care or for comparing quality among hospitals.

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Weissman, J. S., J. S. Haas, F. J. Fowler, Jr., C. Gatsonis, M. P. Massagli, G. R. Seage, 3rd, and P. Cleary. 1999b. The stability of preferences for life-sustaining care among persons with AIDS in the Boston Health Study. Med Decis Making 19 (1):16-26.

BACKGROUND: Clinicians recognize the importance of eliciting patient preferences for life-sustaining care, yet little is known about the stability of those preferences for patients with serious disease. OBJECTIVES: To examine the stability of preferences for life-sustaining care among persons with AIDS and to assess factors associated with changes in preferences. DESIGN: Two patient surveys and medical record reviews, administered four months apart in 1990-1991. SETTING: Three health care settings in Boston. PATIENTS: 252 of 505 eligible persons with AIDS who participated in both baseline and follow-up surveys. MAIN OUTCOME MEASURES: A single question assessing desire for cardiac resuscitation and a scale of preferences for life-extending treatment conditional on hypothetical health states. RESULTS: Approximately one- fourth of the respondents changed their minds about life-sustaining care during a four-month period. Of patients who initially desired cardiac resuscitation, 23% decided to forego it four months later, and of those who initially said they would decline care, 34% later said they would accept it. Of those who initially desired any of the life- extending treatments, 25% decided to forego them four months later, and of those who initially said they would decline life-extending care, 24% later said they would accept some treatment. Patients reporting changes in physical function, pain, or suicide ideation were more likely to modify their desires to be resuscitated (all p or =0.05). Patients lacking an advance directive, not completing high school, or becoming more severely ill were more likely to change their preferences on the Life Extension scale (p or =0.05). Patients who discussed their preferences with at least one physician were just as likely as others to change desires for cardiac resuscitation. Age, gender, race, emotional health, clinical severity, social support, and site of care were not significant correlates of change for either measure. CONCLUSIONS: Health care providers should periodically reassess preferences for life-sustaining care, particularly for patients with progressive disease, given the instability in patient preferences. However, predictors of instability may vary with how preferences are measured. In particular, changes in health status may be related to instability of preferences for certain types of treatments.

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Weissman, J. S., D. Saglam, E. G. Campbell, N. Causino, and D. Blumenthal. 1999c. Market forces and unsponsored research in academic health centers [see comments]. JAMA 281 (12):1093-8.

CONTEXT: Increased competitive pressures on academic health centers may result in reduced discretionary funds from patient care revenues to support the performance of unsponsored research, including institutionally funded and faculty-supported activities. OBJECTIVE: To measure the amount and distribution of unsponsored research activities and their outcomes. DESIGN AND SETTING: Survey conducted in academic year 1996-1997 of 2336 research faculty in 117 medical schools. Responses were weighted to provide national estimates. MAIN OUTCOME MEASURES: Institutionally funded research as a proportion of total direct costs of research was compared across stages of market competition. Logistic regression was used to assess the relationship of performing unsponsored research to faculty characteristics and market stage. RESULTS: Overall, 43% of faculty received institutional funding for research. Young faculty were more likely than others to receive institutional support (adjusted odds ratio [OR], 1.4; 95% confidence interval [CI], 1.1-1.9; P = .004). The amount of institutional support as a proportion of total funding was more than twice as high in less competitive markets (6.1%) compared with the most competitive markets (2.5%; P = .05). Most faculty (55%) performed faculty-supported research. Clinical researchers (OR, 1.6; 95% CI, 1.1-2.3), principal investigators (OR, 4.3; 95% CI, 2.8-7.0), faculty with high levels of research effort (OR, 6.2; 95% CI, 4.0-9.5) or institutional funding (OR, 1.9; 95% CI, 1.4-2.6), and faculty in the most competitive markets (OR, 1.9; 95% CI, 1.4-2.5) were more likely than others to conduct faculty-supported research. When undertaken by clinical researchers, these activities were supported by clinical income, extra hours worked, and discretionary funds, and often led to publications (76%) or grant awards (51%). CONCLUSIONS: Many academic health center faculty receive institutional support to conduct their research or fund the research themselves. Market pressures may be affecting the level of institutional funding available to faculty.

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Williams, T. V., A. M. Zaslavsky, and P. D. Cleary. 1999. Physician experiences with, and ratings of, managed care organizations in Massachusetts. Med Care 37 (6):589-600.

BACKGROUND: Physicians can provide important information about how managed care plans affect the delivery of health care. Assessments of the quality of managed care plans have rarely used physician evaluations. OBJECTIVES: To elicit physician evaluations of managed care plans and to determine factors associated with those evaluations. RESEARCH DESIGN: Physicians were asked in a mail survey to evaluate a managed care plan they were associated with. SUBJECTS: Probability sample of 1,336 physicians associated with the five largest managed care health plans in Massachusetts. MEASURES: Physicians were asked about the extent to which the management strategies used by a plan influenced their clinical behavior and about the quality of care available to their patients. RESULTS: Evaluations of the plans were significantly different among the eight units evaluated. Some differences between divisions within plans were as large as differences among plans. Physicians reported that the use of education and peer influence influenced their clinical behavior and facilitated the provision of high quality care more than did rules and regulations or financial incentives. Physicians evaluated most positively plans, which they said used educational strategies more than other plans and which used rules and regulations and financial incentives less. Physicians tended to rate staff and group model plans more positively than did other plans. CONCLUSIONS: Physicians can provide important information about the extent to which the organization and operation of managed care plans affect the provision of high quality care.

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Zaslavsky, A. M., N. D. Beaulieu, B. E. Landon, and P. D. Cleary. 2000a. Dimensions of consumer-assessed quality of Medicare managed-care health plans. Med Care 38 (2):162-74.

OBJECTIVES: We investigated relationships at the health-plan level among member ratings of and reports on plans in the Consumer Assessment of Health Plans Survey (CAHPS). We sought a more parsimonious description of the reports that can be used in analyses of the distribution and correlates of consumer-assessed quality. SUBJECTS: There were 89,419 Medicare beneficiaries enrolled in 212 Medicare managed-care health plans who responded to CAHPS in 1998. MEASURES: There were 39 survey items measuring consumer ratings of and reports on care. METHODS: We adjusted correlations for sampling variability in the plan means and performed a principal factor analysis of the report items with oblique rotation. We grouped items that loaded heavily on the different factors, formed composites, and regressed rating items on the report composites. RESULTS: Four factors explained 75% of the variance in the reports. The corresponding groups of items were concerned with the following subjects: (1) interactions around delivery of care in the doctor's office; (2) customer service from the plan; (3) access to medical services provided by the plan, such as specialist care, equipment, therapy, or drugs; and (4) advice on health-promoting activities. Corrected Cronbach alpha for composites were 0.97, 0.93, 0.86, and 0.60. The "delivery" composite was strongly predictive of overall ratings of care, doctor, and specialist; the "customer" composite was strongly predictive of overall ratings of the plan. CONCLUSIONS: CAHPS distinguishes among dimensions of between-plan variability of consumer-assessed quality. Different global ratings are related to distinct groups of consumer reports on their experiences.

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Zaslavsky, A. M., J. N. Hochheimer, E. C. Schneider, P. D. Cleary, J. J. Seidman, E. A. McGlynn, J. W. Thompson, C. Sennett, and A. M. Epstein. 2000b. Impact of sociodemographic case mix on the HEDIS measures of health plan quality. Medical Care (accepted for publication).

Background: The widely used HEDIS measures may be affected by differences among plans in sociodemographic characteristics of members.  Objective: To estimate effects of geographically-linked patient sociodemographic characteristics on differential performance within and among plans on HEDIS measures.  Research design: Using logistic regression, we modeled associations between age, sex, and residential area characteristics of health plan members and results on HEDIS measures. We then calculated the impact of adjusting for these associations on plan-level measures.  Subjects: 92,232 commercially-insured members with individual-level HEDIS data, and an additional 20,615 members whose geographical distribution was provided.   Measures:  Seven measures of screening and preventive services.  Results: Performance was negatively associated with percent receiving public assistance in the local area (6 of 7 measures), percent Black (5 measures) and percent Hispanic (2 measures), and positively associated with percent college educated (6 measures), percent urban (2 measures), and percent Asian (1 measure), after controlling for plan and product type.  These effects were generally consistent across plans.  When measures were adjusted for these characteristics, rates for most plans changed by less than 5 percentage points.  The largest change in the difference between plans ranged from 1.5% for retinal exams for people with diabetes, to 20.2% for immunization of adolescents.  Conclusions:   Performance on quality indicators for individual members is associated with sociodemographic context.  Adjustment has little impact on the measured performance of most plans, but a substantial impact for a few.  Further study with more plans is required to determine the appropriateness and feasibility of adjustment.

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Zaslavsky, A. M., B. E. Landon, N. D. Beaulieu, and P. D. Cleary. 2000c. How consumer assessments of managed care vary within and among markets [In Process Citation]. Inquiry 37 (2):146-61.

This study investigated the extent to which the Consumer Assessments of Health Plans Survey (CAHPS) distinguishes performance of Medicare managed care (MMC) health plans. Results indicate that CAHPS ratings and report composites distinguish among plans both nationally and within markets. Global ratings of a health plan and reports on customer services varied strongly at the individual plan level, with smaller effects seen at regional and Metropolitan Statistical Area (MSA) levels. Ratings of doctors and health care, and reports on experiences in the doctor's office varied more among regions and among MSAs than among plans within the same MSA. These patterns are consonant with our hypotheses about the determinants of these ratings: customer service is a distinct plan function, but medical services are provided by networks that often overlap for plans in the same area. We conclude that the CAHPS-MMC survey can inform consumers choosing among plans as well as policymakers and researchers.

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Zaslavsky, A. M., T. V. Williams, and P. D. Cleary. 1999. Sample allocation for overlapping domains in a physician survey with a limited population. Stat Med 18 (8):935-46.

We consider an analytic survey in which each survey unit can respond with respect to one or more domains to which it belongs. In this situation, the optimal sample allocation is constrained by the number of available units in each stratum defined by a set of domains. We present optimal sample allocation rules for this situation, and other rules that apply when there are additional constraints on sample sizes or variances by domain. We apply these rules to our motivating example, the design of a survey of physicians on their experiences with health plans, in which each physician can only be asked about her experience with one plan regardless of her number of affiliations.

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Zaslavsky, A. M., L. Zaborski, and P. D. Cleary. 2000. Does the effect of respondent characteristics on consumer assessments vary across health plans? [In Process Citation]. Med Care Res Rev 57 (3):379-94.

Responses to the Consumer Assessments of Health Plans Survey (CAHPS) are related to respondent characteristics. CAHPS procedures include casemix adjustment to remove effects of difference in respondent characteristics on comparative plan ratings, under the assumption that casemix coefficients are homogeneous across plans. The authors analyzed data from the Washington state CAHPS demonstration, fitting hierarchical models in which coefficients of casemix variables and intercepts could vary by plan. They estimated the impact of variability in casemix coefficients on plan adjustments and also assessed the implications for differential effects of individual characteristics at different plans. Estimated between-plan variability of coefficients was small, but the data are consistent with substantially larger variability. The potential impact of this variability on adjustments for plans was small relative to the magnitude of the adjustments. Comparisons between plans for individuals, however, could be affected substantially. This methodology could be useful wherever casemix adjustment is applied.

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Berndt ER, Cutler DM, Frank R, Griliches Z, Newhouse JP, and Triplett JE.  Price Indexes for Medical Care Goods and Services: An Overview of Measurement Issues.  Medical Care Output and Productivity, eds. Ernst Berndt and David Cutler, in press (also available as Working Paper 6817 of the National Bureau of Economic Research, Cambridge, MA, November 1998).

We review in considerable detail the conceptual and measurement issues that underlie construction of medical care price indexes in the U.S., particularly the medical care consumer price indexes (MCPIs) and medical-related producer price indexes (MPPIs). We outline salient features of the medical care marketplace, including the impacts of insurance, moral hazard, principal-agent relationships, technological progress and organizational changes. Since observed data are unlikely to correspond with efficient outcomes, we discuss implications of the failure of transactions data in this market to reveal reliable marginal valuations, and the consequent need to augment traditional transactions data with information based on cost-effectiveness and outcomes studies. We describe procedures currently used by the BLS in constructing MCPIs and MPPIs, including recent revisions, and then consider alternative notions of medical care output pricing that involve the price or cost of an episode of treatment, rather than prices of fixed bundles of inputs. We outline features of a proposed new experimental price index -- a medical care expenditure price index -- that is more suitable for evaluation and analyses of medical care cost changes, than are the current MCPIs and MPPIs. We conclude by suggesting future research and measurement issues that are most likely to be fruitful.

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Cutler D, McClellan M, Newhouse JP, and Remler D.  Pricing Heart Attack Treatments. Medical Care Output and Productivity, eds., Ernst Berndt and David Cutler, in press (available as Working Paper 7089 of the National Bureau of Economic Research, Cambridge, MA, April 1999).

In this paper, we estimate price indices for heart attack treatments, demonstrating the techniques that are currently used in official price indices and presenting some alternatives. We consider two types of price indices, a Service Price Index, which prices specific treatments provided, and a

Cost of Living Index, which prices the health outcomes of patients. Both indices are complicated by price measurement issues: list prices and transactions prices are fundamentally different in the medical care field. The development of new or modified medical treatments further complicates the comparison of like' goods over time. And the Cost of Living Index is hampered by the need to determine how much of health improvement results from medical treatments in comparison to other factors. We describe methods to address each of these obstacles. We conclude that whereas traditional price indices when applied to heart attack treatments are rising at roughly 3 percent per year above general inflation, a corrected service price index is rising at perhaps 1 to 2 percent per year above general inflation, and the cost of living index is falling by 1 to 2 percent per year relative to general inflation. We discuss the implications of these results for official price index calculations.

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