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Batra A, Candon M. Price Transparency for Primary Care Office Visits and Routine Tests: Results From a 2016 Audit Study. INQUIRY 2022; 59:469580221092122. [PMID: 35412869 PMCID: PMC9008822 DOI: 10.1177/00469580221092122] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Track Full Text] [Download PDF] [Figures] [Subscribe] [Scholar Register] [Indexed: 11/15/2022]
Abstract
Introduction: Price transparency is a central component of the shift from volume to value in healthcare delivery. Price transparency in primary care, the most common point of contact with the healthcare system for patients in the U.S., has not been widely studied. Methods: Using an audit study across 10 states in 2016, we examined the characteristics of primary care practices that were able to provide price information for office visits and routine tests. Results: Most primary care practices were able to disclose some price information for office visits and routine tests. Results indicate that larger, integrated primary care practices in urban areas and in areas with a higher percentage of minority residents were less likely to provide prices than smaller, standalone practices. Conclusion: These findings suggest that future efforts to increase price transparency in primary care should be tailored to practice characteristics, including practice location and whether the practice is embedded in an integrated health system.
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Affiliation(s)
| | - Molly Candon
- University of Pennsylvania, Philadelphia, PA, USA
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Thomas Craig KJ, McKillop MM, Huang HT, George J, Punwani ES, Rhee KB. U.S. hospital performance methodologies: a scoping review to identify opportunities for crossing the quality chasm. BMC Health Serv Res 2020; 20:640. [PMID: 32650759 PMCID: PMC7350649 DOI: 10.1186/s12913-020-05503-z] [Citation(s) in RCA: 12] [Impact Index Per Article: 3.0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Key Words] [Track Full Text] [Download PDF] [Figures] [Journal Information] [Subscribe] [Scholar Register] [Received: 04/23/2020] [Accepted: 07/02/2020] [Indexed: 12/25/2022] Open
Abstract
Background Hospital performance quality assessments inform patients, providers, payers, and purchasers in making healthcare decisions. These assessments have been developed by government, private and non-profit organizations, and academic institutions. Given the number and variability in available assessments, a knowledge gap exists regarding what assessments are available and how each assessment measures quality to identify top performing hospitals. This study aims to: (a) comprehensively identify current hospital performance assessments, (b) compare quality measures from each methodology in the context of the Institute of Medicine’s (IOM) six domains of STEEEP (safety, timeliness, effectiveness, efficiency, equitable, and patient-centeredness), and (c) formulate policy recommendations that improve value-based, patient-centered care to address identified gaps. Methods A scoping review was conducted using a systematic search of MEDLINE and the grey literature along with handsearching to identify studies that provide assessments of US-based hospital performance whereby the study cohort examined a minimum of 250 hospitals in the last two years (2017–2019). Results From 3058 unique records screened, 19 hospital performance assessments met inclusion criteria. Methodologies were analyzed across each assessment and measures were mapped to STEEEP. While safety and effectiveness were commonly identified measures across assessments, efficiency, and patient-centeredness were less frequently represented. Equity measures were also limited to risk- and severity-adjustment methods to balance patient characteristics across populations, rather than stand-alone indicators to evaluate health disparities that may contribute to community-level inequities. Conclusions To further improve health and healthcare value-based decision-making, there remains a need for methodological transparency across assessments and the standardization of consensus-based measures that reflect the IOM’s quality framework. Additionally, a large opportunity exists to improve the assessment of health equity in the communities that hospitals serve.
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Affiliation(s)
- Kelly J Thomas Craig
- IBM® Watson Health® Center for AI, Research, and Evaluation, 75 Binney Street, Cambridge, MA, 02142, USA.
| | - Mollie M McKillop
- IBM® Watson Health® Center for AI, Research, and Evaluation, 75 Binney Street, Cambridge, MA, 02142, USA
| | - Hu T Huang
- IBM® Watson Health® Center for AI, Research, and Evaluation, 75 Binney Street, Cambridge, MA, 02142, USA
| | - Judy George
- IBM® Watson Health® Center for AI, Research, and Evaluation, 75 Binney Street, Cambridge, MA, 02142, USA
| | - Ekta S Punwani
- IBM® Watson Health® Center for AI, Research, and Evaluation, 75 Binney Street, Cambridge, MA, 02142, USA
| | - Kyu B Rhee
- IBM® Watson Health® Center for AI, Research, and Evaluation, 75 Binney Street, Cambridge, MA, 02142, USA
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Ferguson W, White BS, McNair J, Miller C, Wang B, Coustasse A. Potential savings from consumer-driven health plans. International Journal of Healthcare Management 2020. [DOI: 10.1080/20479700.2020.1770425] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 10/24/2022]
Affiliation(s)
- William Ferguson
- Healthcare Administration Program, Lewis College of Business Marshall University, South Charleston, WV, USA
| | - Brittany S. White
- Healthcare Administration Program, Lewis College of Business Marshall University, South Charleston, WV, USA
| | - Jessica McNair
- Healthcare Administration Program, Lewis College of Business Marshall University, South Charleston, WV, USA
| | - Christopher Miller
- Healthcare Administration Program, Lewis College of Business Marshall University, South Charleston, WV, USA
| | - Bojing Wang
- Healthcare Administration Program, Lewis College of Business Marshall University, South Charleston, WV, USA
| | - Alberto Coustasse
- Healthcare Administration Program, Lewis College of Business Marshall University, South Charleston, WV, USA
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Hrifach A, Ganne C, Couray-targe S, Brault C, Guerre P, Serrier H, Rabier H, Grguric G, Farge P, Colin C. National cost study versus hospital cost accounting for organ recovery cost assessment in a French hospital group. Cost Eff Resour Alloc 2018; 16:34. [PMID: 30356786 PMCID: PMC6190563 DOI: 10.1186/s12962-018-0155-2] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Abstract] [Track Full Text] [Download PDF] [Journal Information] [Subscribe] [Scholar Register] [Received: 06/19/2018] [Accepted: 10/09/2018] [Indexed: 11/10/2022] Open
Abstract
Background Methods Results Conclusions
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Carter MJ. Why Is Calculating the "True" Cost-to-Heal Wounds So Challenging? Adv Wound Care (New Rochelle) 2018; 7:371-379. [PMID: 31768298 DOI: 10.1089/wound.2018.0829] [Citation(s) in RCA: 3] [Impact Index Per Article: 0.5] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Key Words] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Received: 08/01/2018] [Accepted: 08/10/2018] [Indexed: 01/10/2023] Open
Abstract
Objective: The aim of the study was to illustrate the differences in the cost-to-heal wounds using two methods: (1) reimbursement-based costing and (2) activity-based costing (ABC). Approach: A small cohort (100 patients with multiple wounds of which 1 was a diabetic foot ulcer [DFU]) was randomly selected from the U.S. Wound Registry to be representative of all patients with DFUs in the registry. Unit costs, resource utilization, and total costs were estimated through both methods. For the ABC method, costs were calculated in ranges: low, mid, and high. Results: The mean cost to heal through the reimbursement-based costing method was US$20,618 compared with a range of US$18,627-US$35,185 for the ABC method. About 20% of DFUs that cost US$10,000-US$20,000 to heal with the reimbursement-based costing method shifted to much higher values based on the ABC method. The percentage of costs represented by inpatient procedures was much lower for the reimbursement method compared with the ABC method. Innovation and Conclusions: The results show that (1) the "true" cost-to-heal DFUs strongly depend on the method used to calculate the costs, and (2) the reimbursement-based costing method may not accurately reflect real costs. The concept of aggregating episodes of care to obtain a single value equating to cost to heal is likely to remain a challenging exercise for the foreseeable future. A better approach may be to provide a range of cost values that are dependent on specific methods, such as the ABC method.
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Visscher SL, Naessens JM, Yawn BP, Reinalda MS, Anderson SS, Borah BJ. Developing a standardized healthcare cost data warehouse. BMC Health Serv Res 2017; 17:396. [PMID: 28606088 DOI: 10.1186/s12913-017-2327-8] [Citation(s) in RCA: 67] [Impact Index Per Article: 9.6] [Reference Citation Analysis] [What about the content of this article? (0)] [Abstract] [Key Words] [Track Full Text] [Download PDF] [Figures] [Journal Information] [Subscribe] [Scholar Register] [Received: 07/08/2016] [Accepted: 05/22/2017] [Indexed: 01/17/2023] Open
Abstract
Background Research addressing value in healthcare requires a measure of cost. While there are many sources and types of cost data, each has strengths and weaknesses. Many researchers appear to create study-specific cost datasets, but the explanations of their costing methodologies are not always clear, causing their results to be difficult to interpret. Our solution, described in this paper, was to use widely accepted costing methodologies to create a service-level, standardized healthcare cost data warehouse from an institutional perspective that includes all professional and hospital-billed services for our patients. Methods The warehouse is based on a National Institutes of Research–funded research infrastructure containing the linked health records and medical care administrative data of two healthcare providers and their affiliated hospitals. Since all patients are identified in the data warehouse, their costs can be linked to other systems and databases, such as electronic health records, tumor registries, and disease or treatment registries. Results We describe the two institutions’ administrative source data; the reference files, which include Medicare fee schedules and cost reports; the process of creating standardized costs; and the warehouse structure. The costing algorithm can create inflation-adjusted standardized costs at the service line level for defined study cohorts on request. Conclusion The resulting standardized costs contained in the data warehouse can be used to create detailed, bottom-up analyses of professional and facility costs of procedures, medical conditions, and patient care cycles without revealing business-sensitive information. After its creation, a standardized cost data warehouse is relatively easy to maintain and can be expanded to include data from other providers. Individual investigators who may not have sufficient knowledge about administrative data do not have to try to create their own standardized costs on a project-by-project basis because our data warehouse generates standardized costs for defined cohorts upon request. Electronic supplementary material The online version of this article (doi:10.1186/s12913-017-2327-8) contains supplementary material, which is available to authorized users.
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Abstract
This paper describes methods of determining costs for economic evaluations of healthcare and considers how cost determination is being affected by recent developments in healthcare. The literature was reviewed to identify the strengths and weaknesses of the four principal methods of cost determination: micro-costing, activity-based costing, charge-based costing, and gross costing. A scoping review was conducted to identify key trends in healthcare delivery and to identify costing issues associated with these changes. Existing guidelines provide information on how to implement various costing methods. Bottom-up costing is needed when accuracy is paramount, but top-down approaches are often the only feasible approach. We describe six healthcare trends that have important implications for costing methodology: (1) reform in payment mechanisms; (2) care delivery in less restrictive settings; (3) the growth of telehealth interventions; (4) the proliferation of new technology; (5) patient privacy concerns; and (6) growing efforts to implement guidelines. Some costs are difficult to measure and have been overlooked. These include physician services for inpatients, facility costs for outpatient services, the cost of developing treatment innovations, patient and caregiver costs, and the indirect costs of organizational interventions. Standardized methods are needed to determine social welfare and productivity costs. In the future, cost determination will be facilitated by technological advances but hindered by the shift to capitated payment, to the provision of care in less restrictive settings, and by heightened concern for medical record privacy.
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Affiliation(s)
- Josephine C Jacobs
- VA Health Economics Resource Center, 795 Willow Rd. (152), Menlo Park, CA, 94025, USA.
| | - Paul G Barnett
- VA Health Economics Resource Center, 795 Willow Rd. (152), Menlo Park, CA, 94025, USA
- Department of Health Research and Policy, Stanford University School of Medicine, Stanford, CA, USA
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Abstract
Purpose - The purpose of this paper is to explore the differences between a traditional costing system (TCS) and resource consumption accounting (RCA) based on a case study carried out in a hospital. Design/methodology/approach - A descriptive case study was first carried out to identify the current costing system of the case hospital. An exploratory case study was then conducted to reveal how implementing RCA within the case hospital assigns costs differently to gallbladder surgeries than the current costing system (i.e. a TCS). Findings - The study showed that, in contrast to a TCS, RCA considers the unused capacity, which is the difference between the work that can be performed based on current resources and the work that is actually being performed. Therefore, it assigns lower total costs to open and laparoscopic gallbladder surgeries. The study also showed that by separating costs into fixed and variable RCA allows managers to benefit from a pricing strategy based on the difference between the service's selling price and variable costs incurred in providing that service. Research limitations/implications - The limitation of this study is that, because of time constraints, the implementation was performed in the general surgery department only. However, since RCA is an advanced system that has the same application procedures for any department inside in a hospital, managers need only time gaps to implement this system to all parts of the hospital. Practical implications - This study concluded that RCA is better than a TCS for use in health care settings that have high overhead costs because it accurately assigns overhead costs to services by considering unused capacities incurred by a hospital. Consequently, this study provides insight into both measuring and managing unused capacities within the health care sector. This study also concluded that RCA helps health care administrators increase their competitive advantage by allowing them to determine the lowest service price. Originality/value - Since the literature review found no study comparing RCA with TCS in a real-life health care setting, little is known about differences arising from applying these systems in this context. Thus, the current study fills this gap in the literature by comparing RCA with TCS for both open and laparoscopic gallbladder surgeries.
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Affiliation(s)
- Hasan Ozyapici
- Department of Business Administration, Eastern Mediterranean University, Famagusta, Cyprus
| | - Veyis Naci Tanis
- Department of Business Administration, Çukurova University, Adana, Turkey
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Carroll N, Lord JC. The Growing Importance of Cost Accounting for Hospitals. J Health Care Finance 2016; 43:172-185. [PMID: 31839701 PMCID: PMC6910125] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Grants] [Subscribe] [Scholar Register] [Indexed: 06/10/2023]
Abstract
Management scholars have identified several cost accounting methods that provide organizations with accurate estimates of the costs they incur in producing output. However, little is known about which of these methods are most commonly used by hospitals. This article examines the literature on the relative costs and benefits of different accounting methods and the scant literature describing which of these methods are most commonly used by hospitals. It goes on to suggest that hospitals have not adopted sophisticated cost accounting systems because characteristics of the hospital industry make the costs of doing so high and the benefits of service-level cost information relatively low. However, changes in insurance benefit design are creating incentives for patients to compare hospital prices. If these changes continue, hospitals' patient volumes and revenues may increasingly be dictated by the decisions of individual patients shopping for low-cost services and as a result, providers could see increasing pressure to set prices at levels that reflect the costs of providing care. If these changes materialize, cost accounting information will become a much more important part of hospital management than it has been in the past.
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Affiliation(s)
- Nathan Carroll
- Department of Health Services Administration University of Alabama at Birmingham USA
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