Antitrust and affiliations among healthcare providers: the need for a level playing field

Under pressure to remain competitive in the rapidly changing healthcare industry, policy leaders and healthcare administrators face the challenge of resolving antitrust matters arising from the creation of innovative healthcare provider affiliations. Although guidance from the Federal Trade Commission (FTC) is available, development of new affiliations is hindered due to contradictory rulings and ambiguous guidelines. Provider associations are further disadvantaged by a federal act granting insurance companies antitrust exemption, which enables insurance companies to affiliate more easily. Current antitrust regulations create unequal market powers, resulting in the development of inefficient systems. Softening antitrust laws in favor of provider-sponsored healthcare affiliations will provide for the flexibility necessary for effective healthcare reform.     

The spillover effects of Medicare managed care: Medicare Advantage and hospital utilization

More than a quarter of Medicare beneficiaries are enrolled in Medicare Advantage, which was created in large part to improve the efficiency of health care delivery by promoting competition among private managed care plans. This paper explores the spillover effects of the Medicare Advantage program on the traditional Medicare program and other patients, taking advantage of changes in Medicare Advantage payment policy to isolate exogenous increases in Medicare Advantage enrollment and trace out the effects of greater managed care penetration on hospital utilization and spending throughout the health care system. We find that when more seniors enroll in Medicare managed care, hospital costs decline for all seniors and for commercially insured younger populations. Greater managed care penetration is not associated with fewer hospitalizations, but is associated with lower costs and shorter stays per hospitalization. These spillovers are substantial – offsetting more than 10% of increased payments to Medicare Advantage plans.     

The costs of decedents in the Medicare program: implications for payments to Medicare + Choice plans

OBJECTIVE: To discuss and quantify the incentives that Medicare managed care plans have to avoid (through selective enrollment or disenrollment) people who are at risk for very high costs, focusing on Medicare beneficiaries in the last year of life-a group that accounts for more than one-quarter of Medicare's annual expenditures. DATA SOURCE: Medicare administrative claims for 1994 and 1995. STUDY DESIGN: We calculated the payment a plan would have received under three risk-adjustment systems for each beneficiary in our 1995 sample based on his or her age, gender, county of residence, original reason for Medicare entitlement, and principal inpatient diagnoses received during any hospital stays in 1994. We compared these amounts to the actual costs incurred by those beneficiaries. We then looked for clinical categories that were predictive of costs, including costs in a beneficiary's last year of life, not accounted for by the risk adjusters. DATA EXTRACTION METHODS: The analyses were conducted using claims for a 5 percent random sample of Medicare beneficiaries who died in 1995 and a matched group of survivors. PRINCIPAL FINDINGS: Medicare is currently implementing the Principal Inpatient Diagnostic Cost Groups (PIP-DCG) risk adjustment payment system to address the problem of risk selection in the Medicare+Choice program. We quantify the strong financial disincentives to enroll terminally ill beneficiaries that plans still have under this risk adjustment system. We also show that up to one-third of the selection observed between Medicare HMOs and the traditional fee-for-service system could be due to differential enrollment of decedents. A risk adjustment system that incorporated more of the available diagnostic information would attenuate this disincentive; however, plans could still use clinical information (not included in the risk adjustment scheme) to identify beneficiaries whose expected costs exceed expected payments. CONCLUSIONS: More disaggregated prospective risk adjustment methods and alternative payment systems that compensate plans for delivering care to certain classes of patients should be considered to ensure access to high-quality managed care for all beneficiaries.     

To sign or not to sign: physician participation in Medicare, 1984.

Factors leading physicians to sign the 1984 Medicare participation agreement are assessed in this study. The decision was highly sensitive to Medicare reimbursement levels. A 10-percent increase in the Medicare reasonable charge increased average participation rates by 9.5 percent, or 3.2 percentage points (around the mean of 34 percent). Higher collection costs associated with obtaining that payment from Medicare discourage participation, and physicians with large Medicare caseloads were more likely to participate. Although board-certified physicians were no less likely to participate, graduates from non-English speaking non-Western European medical schools were more likely to sign. Physicians in more liberal States and in areas with greater health maintenance organization activity were significantly more likely to participate, as were those with lower malpractice costs and weaker private demand.     

On and off the playing field: ethics in medicine

The sportscasters' metaphor, "on and off the playing field," is used to describe the altruistic demeanor of good ethical and moral behavior and empathy toward patients that is required of medical students and physicians. It has been noted that these altruistic qualities often compete unsuccessfully with scientific skills and scholarly pursuits. Many schools hold the "White Coat Ceremony" annually and host a chapter of the Honor Medical Society to instill these traits in students. Teaching of altruistic demeanor is most successful using a combination of techniques, which include philosophy, virtue theory, small-group discussions using case vignettes, and the structured objective clinical examination with "standardized patients." On the playing field, current major issues are intellectual honesty, mandatory testing/treatment for HIV/AIDS, abortion, end-of-life issues, and gene therapy. Off the playing field, family, religion, community service, and leadership will immortalize medical students in the mythical Health Care Hall of Fame.     

Characterizing Cardiac Catheterization Utilization in a US Population with Commercial or Medicare Advantage Health Plans

BackgroundHealth plans and health systems need to understand the demand for common healthcare services to ensure adequate access to care. Utilization of cardiac catheterization is of particular interest, because it is relatively common and has the potential for variation across subpopulations, similar to the level of geographical variation in heart disease in the United States.ObjectivesTo illustrate how the utilization of cardiac catheterization has changed over time in a US population with commercial and Medicare Advantage health plans, and how it differs between subpopulations.MethodsCardiac catheterization claims data from 2012 to 2018 were extracted from the database of a national healthcare organization offering commercial and Medicare Advantage health plans. Contemporaneous health plan enrollment data and government data were used to determine the patients'' characteristics. Annual catheterizations per 1000 patients for the population as a whole and for subpopulations were determined using claims data. Spearman''s rank-order correlation was used to assess the monotonicity of trends. Catheterization utilization for each subpopulation was compared with that of the population average. A second, patient-level analysis was used to determine the factors predictive of patients'' catheterization utilization in 2018.ResultsAcross the overall population, the rate of cardiac catheterization was stable from 2012 to 2018. An adjusted analysis of 2018 data showed that catheterization utilization was significantly associated with older age, male sex, residence in a rural zip code, residence in a lower-income zip code, and residence in a state with a high obesity rate. The trendlines of the relative utilization of catheterization in subpopulations over time revealed similar patterns.ConclusionMarked differences were observed in the rates of cardiac catheterization utilization between the subpopulations in our study. Overall, these data show a direct correlation between geographic residence, obesity level, wealth, and the rate of cardiac catheterization utilization. To ensure adequate access to care, health plans and health systems should explore the implications of disproportionately high demand for cardiac catheterization in populations from lower-income areas, higher obesity rate states, rural patients, and older patients.