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AHA Task Force on Variation in Health Care Spending Report to the Institute of Medicine

AHA Task Force on Variation in Health Care Spending Report to the Institute of Medicine Committee on Geographic Variation In Health Care Spending and Promotion of High-Value Care January 17, 2011. Findings. Variation exists at all levels of the system and within the hospital itself

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AHA Task Force on Variation in Health Care Spending Report to the Institute of Medicine

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  1. AHA Task Force on Variation in Health Care Spending Report to the Institute of Medicine Committee on Geographic Variation In Health Care Spending and Promotion of High-Value Care January 17, 2011

  2. Findings • Variation exists at all levels of the system and within the hospital itself • Regions with high levels of spending don’t necessarily have high spending growth • Variation in performance goes beyond spending • Regional variation in service use is not the same as variation in spending • Some spending differences are due to forces beyond a provider’s control • While financial incentives matter, providers respond to data

  3. Findings Many Factors Influence Variation

  4. Findings . Percent of Variation in Spending per Medicare Beneficiary Explained by Various Factors Source: Deb, Partha. Explaining Geographic Variation in Spending per Medicare Beneficiary. March 2010. Includes spending for Parts A&B.

  5. Framework

  6. Conclusions • The hospital field is committed to action but cannot tackle it alone • Fair performance metrics needed to hold providers accountable • Assign accountability to providers not geographic areas • Distinguish appropriate from inappropriate variation • Adjust for factors beyond the control of providers • Need for better evidence base, timely data across the continuum and tools

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