iLoveBenefits: Industry News Blog

What C-Suite Executives Want in 2017

Birth Defects Account for 5.2% of Hospital Costs

The CDC recently released an analysis of the hospitalization costs associated with birth defects. Here are some key findings from the report:

• Structural or genetic birth defects affect 3% of live births in the U.S.
• 20% of infant deaths in the U.S. are due to birth defects.
• Birth defects accounted for 3% of all hospitalizations.
• 5.2% of total hospital costs are attributable to birth defects.
• Birth defect–associated hospitalizations cost $22.9 billion in 2013.
• Cardiovascular defects accounted for 14% of birth defect hospitalizations.

Source: Centers for Disease Control and Prevention, January 20, 2017

January 30, 2017 | Categories: Cost,healthcare,hospitals,quality | Tags: , , , | Comments (0)

Diabetes Spending Reached $16,021 Per Capita in 2014

The Health Cost Institute recently released a study on healthcare spending for diabetes patients. Here are some key findings from the report:

  • Spending on people with diabetes reached $16,021 per capita in 2014, an $897 increase from 2013.
  • Health care spending for people with diabetes rose 6% compared to 3.2% for people without diabetes.
  • The number of ER visits among people with diabetes rose 8.1% annually from 2012-2014.
  • People with diabetes had 7x more filled days of cardiovascular drugs than those without diabetes.
  • Young adults (19-25) with diabetes had 4x more hospital admissions for mental health and substance use.
  • In 2014, insureds with diabetes spent $1,944 out of pocket compared to $752 for those without diabetes.

Source: Health Cost Institute, June 20, 2016

50% in Four Years – The Increase in Surgical Admissions

According to a recent report, the average price of a surgical admission for a child in 2010 was $35,423, but by 2014 it had risen to $53,372 – a more than 50% price increase. Source: “Higher Prices for Children’s Health Care Drove Spending Growth in 2014, While Use of Services Declined,” Health Care Cost Institute Press Release, May 16, 2016, http://www.healthcostinstitute.org/news-and-events/higher-prices-children%E2%80%99s-health-care-drove-spending-growth-2014-while-use-services-d

Superior Customer Experience Correlates to 50% Higher Hospital Margins

Superior Customer Experience Correlates to 50% Higher Hospital Margins

Accenture recently published an analysis on customer satisfaction from the Hospital Consumer Assessment of Healthcare Providers and Systems (HCAHPS). Here are some key findings from the report:

  • Hospitals that deliver “superior” customer experience have 50% higher net margins than average hospitals.
  • The margin increase at urban hospitals is roughly eight times that of rural hospitals.
  • Academic hospitals had a 2.1% margin increase per 10% increase in HCAHPS score in 2013.
  • Margin increase correlated to a 10% consumer experience improvement grew 70% from 2008-2013.
  • Among the top 20% of patient experience performers, revenues grew 10.9% and costs grew 7.8% in 2013.
  • For profit hospitals had a 3.3% margin increase per 10% increase in HCAHPS score in 2013.

Source: Accenture, May 11, 2016

What revenue does a physician generate for their hospital?

According to a recent survey, the average net revenue generated on behalf of an affiliated hospital is as follows:

  • $1,560,688 by a single physician
  •  $2,746,605 by a full-time orthopedic surgeon
  •  $2,448,136 by an invasive cardiologist
  •  $2,445,810 by a neurosurgeon
  •  $2,169,693 by a general surgeon
  •  .$1,493,518 by a family physician
  • $1,830,200 by a general internist

Source: “Survey: Each Physician Generates an Average $1.56 Million a Year Per Hospital,” Merritt Hawkins News Release, April 12, 2016, http://www.merritthawkins.com/uploadedFiles/MerrittHawkins/Pdf/2016%20Merritt%20Hawkins%20-%20Inpatient-Outpatient%20Revenue-%20Press%20Release.pdf

State Board information available to consumers

A newly released report of the Informed Patient Institute, done in conjunction with Consumer Reports,  that evaluates what type of information is available to consumers on medical board websites nationwide. Medical boards are state government agencies established to protect the public from the unprofessional, improper and incompetent practice of medicine. Seeking Doctor Information: A Survey and Ranking of State Medical and Osteopathic Board Websites in 2015 http://www.informedpatientinstitute.org/Seeking%20Doctor%20Information%20Online.pdf

After evaluating 65 state medical and osteopathic board websites, the report concludes that the information you find on these sites varies greatly—and all can be improved to make it easier to access information about doctors.  In some states, a site may be easy to use, but have little information about a doctor.  In others, the information may be comprehensive, but is hard to find.

Sixty-one criteria were used to evaluate the boards including their search capabilities, complaint process, general board information, and what types of information about board disciplinary actions, hospital actions, malpractice, Federal actions and criminal convictions could be found on an individual doctor.  Each website was rated on a scale of 1 to 100.  The results ranged from a low of 6 (for the Mississippi Board) to a high of 84 (for the Medical Board of California).  All of the state medical board websites were rated using the signature Consumer Reports Red and Black circles. The report also includes over 20 recommendations for making medical board websites more consumer-friendly. The report is also available at Consumer Reports’ Safe Patient Project, and is mentioned in the latest version of Consumer Reports magazine cover story on doctors.

Medicaid programs educating beneficiaries

A new AHIP Issue Brief provides background information about the Medicaid program and explains how health plans work with the states to deliver care for Medicaid beneficiaries.

Our issue brief provides an overview of the federal-state Medicaid partnership, who is covered by Medicaid and the benefits they receive, the role of Medicaid health plans, research findings on the value offered by Medicaid health plans, and the key issues health plans face under the Medicaid “mega reg” that CMS is expected to finalize at some point this spring.

The brief also highlights key areas where Medicaid health plans are demonstrating strong leadership:

  • By offering integrated health care delivery systems, Medicaid health plans promote access to coordinated, quality care and prevent overutilization of services that are both unnecessarily costly and potentially harmful for their enrollees, including dual eligibles.
  • By conducting outreach and health education efforts that encourage Medicaid beneficiaries to receive needed preventive care, Medicaid health plans help to reduce unnecessary hospital admissions.

By helping to manage chronic conditions through patient-centric disease management programs, Medicaid health plans are improving health outcomes while also reducing the costs of providing health care to beneficiaries with complex health care needs.

4 in 5 expect that by 2021, patients will compare ratings before choosing a hospital

Survey: Most Patients Will Belong to Incentivized Health Plans by 2021

The Society for Healthcare Strategy & Market Development recently conducted a survey on healthcare leaders’ thoughts on emerging trends in healthcare. Here are some key findings from the report:

  • 99% agreed that by 2021 patients will demand a greater role in treatment planning.
  • 4 in 5 expect that by 2021, patients will compare ratings before choosing a hospital.
  • 89% said that most of their hospital’s insured patients will belong to incentivized health plans by 2021.
  • Most practitioners (88%) predict that at least a quarter of chronic disease patients will receive it remotely.
  • Two-thirds of practitioners predict that most chronic illness patients will receive primary care that includes some type of psychotherapy service.

Source: Society for Healthcare Strategy & Market Development, January 26, 2016

Getting the right diagnosis the first time is critical

According to a recent report from the Institute of Medicine, it is estimated that:

  • 5% of U.S. adults who seek outpatient care each year experience a diagnostic error
  • diagnostic errors contribute to approximately 10% of patient deaths
  • diagnostic errors account for 6 to 17% of adverse events in hospitals

Source: “Improving Diagnosis in Health Care,” Institute of Medicine/the National Academy of Sciences, Report in Brief, September 22, 2015, http://iom.nationalacademies.org/~/media/Files/Report%20Files/2015/Improving-Diagnosis/DiagnosticError_ReportBrief.pdf

October 2, 2015 | Categories: healthcare,hospitals,quality | Tags: , , , | Comments (0)
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