PHYSICIANS FOR A NATIONAL HEALTH PROGRAM

1. PHYSICIANS FOR A NATIONAL HEALTH PROGRAM 29 EAST MADISONSUITE 602CHICAGO, IL 60602TEL: (312) 782-6006WWW.PNHP.ORG

2. The Uninsured

8. Financial Suffering Among the INSURED

13. Rising Economic Inequality

15. Persistent Racial Inequalities

20. Rationing Amidst a Surplus of Care

21. Unnecessary Procedures

22. Variation in Medicare Spending: Some Regions Already Spend at Canadian Level

24. Half of Americans Live Where Population Is Too Low for Competition A town’s only hospital will not compete with itself Source: NEJM 1993;328:148

25. ACOs:A Rerun of the HMO Experience?

26. Why the ACO/HMO Concept Resonates Proliferation of redundant high tech facilities and useless, even harmful interventions Neglect of primary care, public health, prevention, mental health Lack of teamwork Widespread quality problems need system solutions Inadequate public accountability

27. HMO-ACO Logic FFS is the problem; capitation(shifting insurance risk) the solution. But . . . small clinics and hospitals can’t bear risk, so consolidation is necessary. Shifting risk creates incentive to deny care, so report cardsare necessary.

35. Medicare’s PGP/ACO Demo. Project : Gaming, But No Savings “The model for the ACO program . . . has been tested in the PGP Demonstration Project . . . diagnosis coding changes the PGP sites initiated . . . produced apparent savings that resulted in shared savings payments to some of the demonstration sites, but not actually fewer dollars spent” Berenson RA. Am J. Managed Care, 2010; 16:721-726.

36. ACO Cost Cutting Armamentarium • Prevention • Disease management • “Care Coordination” (consolidation, gate-keeping, utilization review) • Electronic medical records • Report cards and P-4-P

37. Prevention Saves Lives,But Not Money “Although some preventive services do save money, the vast majority reviewed in the health economics literature do not.” Cohen JT et al., New England Journal of Medicine 2008;358:661-663. “It’s a nice thing to think, and it seems like it should be true, but I don’t know of any evidence that preventive care actually saves money.” Gruber J,quoted in “Free lunch on health? Think again,” NY Times, August 8, 2007: C 2.

39. Medical Homes and Enhanced Primary Care Don’t Require ACOs “Medical Homes” that integrate more nurses, social workers etc. into primary care and cut physicians’ panel size may improve care and reduce ED and inpatient utilization, possibly enough to offset the additional personnel costs But this intervention does not require recycling the HMO experiment.

42. P4P – Scores on Whatever You Pay for Improve, But . . . “The [British P4P] scheme accelerated improvements in quality for 2 of 3 chronic conditions in the short term. However, once targets were reached, the improvement . . . slowed, and the quality of care declined for 2 conditions that had not been linked to incentives.” Source: NEJM 7/23/2009:368

44. ACOs and HMOs:Faith-Based Solutions Capitation as magic bullet Consolidation among providers cuts costs Prevention, care management & EMR/ computers save money P-4-P encourages global quality Risk adjustment can overcome gaming (upcoding of diagnoses)

45. Truly Accountable Care Non-profit All capitation payments used for patient care, not for capital investments, profits, bonuses or exorbitant salaries. Separate capital funding based on regional health planning Eliminate insurance middle-men Rich and poor in same plan Quality data used for improvement, not financial reward

47. Investor-Owned Care:Inflated Costs, Inferior Quality

48. For-Profit Hospitals’ Death Rates are 2% Higher Source: CMAJ 2002;166:1399

49. For-Profit Hospitals Cost 19% More Source: CMAJ 2004;170:1817

50. For-Profit Dialysis Clinics’ Death Rates are 9% Higher Source: JAMA 2002;288:2449