Innovation in diagnostic imaging services: assessing the potential for value-based reimbursement

Innovation in the field of diagnostic imaging is based primarily on the availability of new and improved equipment that opens the door for new clinical applications. Payments for these imaging procedures are subject to complex Medicare price control schemes, affecting incentives for appropriate use and innovation. Achieving a "dynamically efficient" health care system-one that elicits a socially optimal amount of innovation-requires that innovators be rewarded in relation to the value they add and can demonstrate with evidence. The authors examine how and whether value-based reimbursement for diagnostic imaging services might better reward innovation explicitly for expected improvements in health and economic outcomes.

Medicaid payment levels to dentists and access to dental care among children and adolescents

CONTEXT

Although Medicaid removes most financial barriers to receipt of dental care among children and adolescents, Medicaid recipients may not be able to access dental care if dentists decline to participate in Medicaid because of low payment levels or other reasons.

OBJECTIVE

To describe the association between state Medicaid dental fees in 2 years (2000 and 2008) and children's receipt of dental care.

DESIGN, SETTING, AND PARTICIPANTS

Data on Medicaid dental fees in 2000 and 2008 for 42 states plus the District of Columbia were merged with data from 33,657 children and adolescents (aged 2-17 years) in the National Health Interview Survey (NHIS) for the years 2000-2001 and 2008-2009. Logit models were used to estimate the probability that children and adolescents had seen a dentist in the past 6 months as a function of the Medicaid prophylaxis fee and control variables including age group, race, poverty status, and state and year effects. The effect of fees on children with Medicaid relative to a control group, privately insured counterparts, served to separate Medicaid's effect on access to care from any correlation between the Medicaid fee or changes in fees by state and other attributes of states.

MAIN OUTCOME MEASURE

Whether a child or adolescent had seen a dentist in the past 6 months.

RESULTS

On average, Medicaid dental payment levels did not change significantly in inflation-adjusted terms between 2000 and 2008, although a difference existed for some states, including in 5 states plus the District of Columbia, where payments increased at least 50%. In 2008-2009, more children and adolescents covered by Medicaid (55%, 95% confidence interval [CI], 53%-57%) had seen a dentist in the past 6 months than did uninsured children (27%, 95% CI, 24%-30%), but fewer than children covered by private insurance (68%, 95% CI, 67%-70%). Changes in state Medicaid dental payment fees between 2000 and 2008 were positively associated with use of dental care among children and adolescents covered by Medicaid. For example, a $10 increase in the Medicaid prophylaxis payment level (from $20 to $30) was associated with a 3.92 percentage point (95% CI, 0.54-7.50) increase in the chance that a child or adolescent covered by Medicaid had seen a dentist.

CONCLUSION

Higher Medicaid payment levels to dentists were associated with higher rates of receipt of dental care among children and adolescents.

Where's the Value? TMA Warns Value-Based Purchasing Could Harm Patients' Access

A provision of the Patient Protection and Affordable Care Act (PPACA) requires the U.S. Department of Health and Human Services (HHS) to create a special modifier within the Medicare physician fee schedule that would adjust physician payments based on a measurement of cost and quality. They're calling it the "value-based purchasing modifier." The PPACA gives little detail on what factors will go into the cost and quality measurements, leaving it to HHS Secretary Kathleen Sebelius to make most of those decisions.

Physician practice and hospital revenue cycle drivers: what's the difference?

There are two key differences between hospitals and physician practices in revenue cycle management: unit of work and its value, and per unit cost to collect. Reducing a physician practice's cost to collect requires, first and foremost, the right technology and functionality and the right staff. Three advanced collections techniques-denials management, contract compliance, and fee schedule management and maintenance-should be examined for their potential value in ensuring that an owned practice is paid correctly for every service.

The influence of economic incentives on treatment patterns in a third-party funded dental service

OBJECTIVE

To investigate the response of dental practitioners to administration and remuneration adjustments to the Dental Treatment Services Scheme (DTSS) in the Republic of Ireland.

DESIGN

Following the introduction of a series of administration and fee adjustments by a third party payments system in December 1999 the pattern of extractions and restorations are examined to determine whether the adjustments had influenced provider behaviour, in particular whether a substitution effect from extractions to restorations would result from a relative fee increase of 62% for amalgam fillings.

DATA AND METHODS

Data on patient and provider characteristics from June 1996 to April 2005, collected by the Health Service Executive (HSE) National Shared Services Primary Care Reimbursement Service to facilitate remuneration to dentists providing services in the DTSS, was used in this analysis. A graphical analysis of the data revealed a structural break in the time-series and an apparent substitution to amalgam fillings following the introduction of the fee increases. To test the statistical significance of this break, the ratio of amalgams to restorations was regressed on the trend, growth and level dummy variables, using Ordinary Least Squares (OLS) regression. The diagnostics of the model were assessed using the Jarque-Bera normality test and the LM to test for serial correlation.

RESULTS

The initial results showed no evidence of a structural break. However on further investigation, when a pulse dummy was included to account for the immediate impact of the fee adjustment the results suggest a unit root process with a structural break in December 1999. This implies that the amalgam fee increase of December 1999 influenced the behaviour patterns of providers.

CONCLUSIONS

System changes can be used to change the emphasis from a scheme that was principally exodontia/emergency based to a scheme that is more conservative and based on restoration/prevention.