December 2006

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On Wednesday, The New York Times reported (“What Money Doesn’t Buy in Health Care“) reported on the relative ineffectiveness of drug-coated stents (aka drug-eluting stents). (For more information regarding what is a stent, visit the Angioplasty.org webpage.) On Friday, December 8th, the FDA recommended that “…doctors and patients be given stronger warnings about the dangers associated with the use of drug-coated stents in high-risk patients.” Why is this recommendation being given?

“After listening to testimony, they concluded that for healthier patients with simple forms of heart disease, the benefits of drug-coated stents appeared to outweigh the risks. The picture was less clear for people with diabetes, multiple blocked arteries or other complications. In the end, the panel concluded that doctors and patients needed to be aware of the risks and that researchers should continue collecting data. The entire affair — from the invention of the new stent to the willingness to reconsider it — was in many ways an impressive display of American medicine.

Yet it was also a nearly perfect example of what’s wrong with our health care system.

See, there was an elephant in the hearing room last week that went almost entirely ignored. One study after another has found that whether or not a stent is coated, angioplasty — the process of opening up an artery before a stent is inserted — and stenting do not actually reduce the risk of heart attack or extend life span for most patients.”

If angioplasties and stents aren’t helping patients, why are they being preformed?

Ah, yes — money. Medicare typically pays $12,000 to $15,000 for a coated stent procedure, according to Thomas Gunderson of Piper Jaffray. Angioplasty and stenting have accounted for almost 10 percent of the increase in Medicare spending since the mid-1990s, Jonathan S. Skinner, a Dartmouth economist, estimates.”

Probably the most insightful comment of the entire article are the following two sentences:

“But we patients deserve some of the blame, too. We’ve come to believe that aggressive treatment somehow offers us the best chance to stay healthy, even when the evidence says otherwise.”

What can be done regarding patients who desire aggressive medical treatment where the average outcome of the procedure is no better than no treatment at all? The libertarian in me says, ‘if they want the treatment, let them have it.’ The problem is, individuals are not paying for these procedures out of pocket; private insurance companies or the government is paying for the treatment in most cases. A private insurance company or government agency who properly rationed care only when it was beneficial to the patient is the obvious solution. But will the private insurance companies and government ration care in the best interests of the patients or will they simply try to save money? This is a question at the heart of the current healthy care debate and one which I will be investigating throughout my career as a healthcare economist. There is no easy answer.

What is the best method to immunize individuals? Vaccinations are typically delivered via scheduled or walk-in visits. Mass vaccinations, however, may offer a more efficient means to vaccinate large populations. The mass vaccination locations can take place at schools, convention centers, fair grounds, churches, parking lots or other places (see Arkansas’ Mass Flu Vaccine locations as an example).

Authors John Fontanesi, Linda Hill and colleagues take a more in depth look at this issue in their 2006 paper. The researchers found that while only 59% of individuals who saw a physician for a well visit received a flu shot, 99% of those who went to a mass immunization clinic received the flu shot. The cost to administer the vaccines at the two sites were remarkably similar (see below).

Direct Unit Costs

Routine Scheduled Visit Mass Vaccination
Physician ($61.43/hr) $3.07 $0.00
Nurse ($21.93/hr) $0.40 $1.10
Receptionist ($10.14/hr) $0.24 $0.68
Vaccine cost $8.73 $8.73
Syringe cost $1.24 $1.24
Overhead $5.04 $6.30
Total $18.72 $18.05

Thus, if we measure productivity as the cost for each person vaccinated, we see that mass clinics are about twice as productive. Regular office visits, however, are able to detect other health problems, whereas mass clinics only administer influenza vaccinations. Information gathering at mass vaccination clinics is minimal. The authors define efficiency as the quality of the visit divided by the cost of the visit. On this scale, the the study finds that office visits dominate mass vaccination clinics since they offer more patient education and better documentation of the encounter (see below). The authors conclude that “balancing critical resources…with the need to vaccinate as many at-risk patients…may be best accomplished by tightly integrating routine scheduled mass vaccination clinics with ambulatory care centers…”

Productivity (The lower score, the greater the productivity)

Routine Scheduled Visit Mass Vaccination
Mean Labor Cost $3.72 $2.45
Mean Overhead Cost $5.04 $9.90
Mean Materials cost $9.98 $9.98
Mean Patients seen/hr 2.87 8.9
Production Value 6.58 2.50

Efficiency (The higher the score, the greater the efficiency)

Routine Scheduled Visit Mass Vaccination
Nbr who could be vaccinated/hr 2.87 8.9
Probability of being vaccinated 59% 99%
Probability of health history reviewed 59% 0%
Probability VIS given 54% 71%
Probability vaccination documented 70% 45%
Efficiency Value 0.020 0.001

A second paper by Fontanesi and colleagues published in 2004 uses critical path analysis to analyze the rate of influenza immunization at 1) scheduled visits, 2) walk-in visits, 3) scheduled shot only visits, and 4) walk-in shot only. They find vaccination rates similar to the 2006 paper listed above. Immunization rates are 58%, 45%, 100%, and 98% respectively. The main indicators which contributed to a vaccination occurring were 1) the patient and provider discuss immunization, 2) the ratio of the number of providers to the number of registration staff, 3) the ratio of the number of providers to the number of exam rooms, and 4) the patient was asked about the examination in the exam room or before the exam. The authors wisely conclude the following:

“Critical path analysis of vaccination activities occurring during routine scheduled health encounters suggests that this is a complex task and should not simply be seen as an incremental activity added to the general health encounter. Critical path analysis also suggests that provider-patient discussion is more productively viewed as the culmination rather than the beginning of the vaccination process.”

  • Fontanesi; Hill; Olson; Bennett; Kopald; (2006) “Mass vaccination clinics versus appointments.” Medical Practice Management, vol March/April, pp. 1-7.
  • Fontanesi, J., A. M. Shefer, D. B. Fishbein, N. M. Bennett, M. De Guire, D. Kopald, K. Holcomb, D. W. Stryker and M. S. Coleman. “Operational Conditions Affecting the Vaccination of Older Adults.” American Journal of Preventive Medicine, 2004, 26 (4), pp. 265-270.

This week’s edition of the Health Wonk Review is posted at MSSPNexus.

Yesterday we examined the cost effectiveness of the influenza vaccine in children. Today I will look at two papers which focus on the same question using children as the sub-population of interest. Estimated influenza infection rate among young healthy children is between 35% and 50% each year.

Cohen and Nettleman (2000) look at preschool children and create a cost-benefit scenario under a flexible and fixed (i.e.: 8am – 5pm) schedules. The net cost savings for the vaccination is calculated as below.

No Vac Flexible Fixed
Direct Cost 14.87 14.53 14.53
Indirect Cost 29.16 8.23 28.3
Total Cost 44.03 22.76 42.83
Net Cost -21.27 -1.20

The authors find that direct costs of administering the vaccination can be as little as $4 in an HMO, and up to $10 in an outpatient stand-alone practice. Cost savings from the vaccination results from fewer pediatric office visits (estimated to cost $51/visit) and fewer ER visits (estimated at $124.42/visit) as well as fewer antibiotics used and fewer hospitalizations. Indirect costs included the parental time spent in the doctor’s office with their child as well as time absent from work from having to take care of a sick child.

This analysis shows that flexible vaccination is far superior to fixed schedule vaccination. The problem with this is that it is likely that health care providers would need to be compensated more to work a flexible schedule which may decrease the cost savings. Also, vaccination costs do not count physician rent, utilities, staffing, chart maintenance, etc. which go into the cost of a physician visit.

A second, more reliable study is preformed by Luce, et al. (2001). This study employs data from a multicenter, prospective, randomized, double-blind, placebo controlled efficiency trial during two flu seasons (fall 1996 through spring 1998). The vaccine studied was the live, attenuated, trivalent, intranasal influenza vaccine (not the more commonly used intramuscular shot). It was found that vaccinated children have 1.2 fewer influenza related illness (ILI) fever days/child than unvaccinated children. The costs of the vaccine are analyzed are as follows:

COST CATEGORY
Direct Costs
Resources to administer vaccination
Resources to treat vaccine-associated adverse affects
Resources to treat ILI
Direct non-medical costs
Caregivers’ travel for vaccination
Caregivers’ travel to health care visits from vaccine-related adverse affects
Caregivers’ travel to health care visits for treatment of ILI
Lost Productivity Costs
Caregivers’ missed usual activity to receive vaccine
Caregivers’ missed usual activity as a result of vaccine associated adverse affects
Caregivers’ missed usual activity as’ a result of children’s ILI

For the direct costs, the authors take into account the vaccine cost, time to administer the vaccine, and medication use from adverse affects of the vaccine. To measure the health care resources used to treat ILI, the authors look at expected costs from hospitalization, health care provider visits (ER or physician), laboratory and diagnostic tests and procedures, antibiotics and other prescription or over-the-counter medications.

Direct non-medical costs and lost productivity costs are measure using transportation costs (e.g.: vehicle mileage and parking costs) and caregivers’ time costs respectively. Most of the cost data is culled from other papers or NAMCS and NHAMCS data. The authors find that from society’s point of view, a $28 intranasal vaccination was worth the cost. From an individual’s point of view, an intranasal vaccination costing less than $5 was worth the cost. The individual’s break even value is lower than society’s since the individual does not take into account the externality that if they are vaccinated, it is less likely that someone else becomes infected with influenza.

How does one measure the cost effectiveness of flu vaccination? Today we will examine a paper which attempts to do just that.

Nichol, et al. (2003) preforms a cost-benefit analysis of live attenuated influenza vaccination (LAIV) for healthy, working adults. This type of vaccination is administered through a nasal spray than through an intramuscular shot. The authors attempted to answer this question using a multi-center, randomized, double blind placebo controlled trial. They found that adult influenza vaccinations decreased the number of work days missed by 18%, decreased the number of less effective work days by 18% and decreased the number of provider visits by 13%. This amounts to a large benefit to society, but one must also estimate the costs of vaccination in order to have an accurate cost-benefit analysis. Nichol and colleagues estimate the costs as follows:

COST CATEGORY EQUATION


Costs of vaccination
Direct costs of vaccination Costs of vaccine and administration
Indirect costs of vaccination P(missing work for Vac.) x (hrs of work missed for Vac.) x (wage)
Direct costs of side effects due to vaccination P(side effects)x (provider visit cost)
Indirect costs of side effects due to vaccination P(side effect lead to work loss)x(wage)x(8 h/day)


Costs averted due to vaccination
Direct costs of medical care averted due to vaccination P(provider visit from illness among NV) x (1 − RR_V) x (cost of provider visit)
Indirect costs of work loss averted due to vaccination P(work loss due to illness among NV)x(1 − RR_V)x(wage)x(8h/day)
Indirect costs of reduced work effectiveness P(reduced work effectiveness_NV) x (1- RR_V) x (wage) x (8h/day)

Provider visit costs is estimated separately for influenza-like illness (ILI) and upper respiratory tract illness. Costs include not only physician time, but also the average number of tests and procedures ordered and medications prescribed (e.g.: antibiotics, Rx and over the counter meds) and are estimated using NAMCS data. The authors find that the break even cost of flu vaccinations for healthy adults is $43.07. Monte Carlo simulation is then used to prove their results more robust.

The study does have some problems. The authors do not include overhead costs in their estimate of physician visits. Secondly, no justification is found for the distributional assumptions of the Monte Carlo simulations. Most distributions are triangular between the min and the max.

The BBC reports (“Italian man…“) on a court case in which a paralyzed man suffering from muscular dystrophy is requesting that “his artificial respirator turned off and to be given sedatives to ease his pain until he dies.“  Euthanasia is illegal in Italy as it in the United States.  On the other hand, euthanasia and doctor-assisted suicide have been legalized in the Netherlands, Belgium, and Switzerland.  Prime Minister Romano Prodi and his center left government—as well as much of the Italian nation—is heavily divided over the issue.

A recent Economist article (see a reprint at the Librarian’s Place blog) chronicles the career of Mena Trott.  Mrs. Trott (along with her husband) founded Six Apart, a company whose blogging enterprises include Typepad, Movable Type and Live Journal.  The most recent and perhaps most profound innovation by the couple at Six Apart is the blogging software named Vox.  Mrs. Trott has her own blog on Vox, appropriately named VoxTrott.  The most significant advance Vox makes is the following:

It is intimate. For every item on Vox—a text paragraph, a photo, a link—bloggers can determine if it is to be public or private and, if it is private, exactly who can see it. Ms Trott, for instance, keeps one part of VoxTrott for communicating only with her mother, who has an insatiable appetite for information about certain minutiae of Ms Trott’s life. She also has a daily “Yay Me Updateâ€? just for herself, in which she uploads self-portraits from her mobile phone in order to preserve a chronicle of her life for her descendants—uninterrupted except for that time when she gained a bit more weight than she cared to commit to memory and conveniently forgot to post for a few days.

While I have not tried to use this software—and it seems unsuitable for professional purposes—the variable level of privacy will be a significant advance for the blog-o-sphere.

According to Thompson, et al. (2003), approximately 51,000 people per year died annually due to influenza related diseases between 1990 and 1999. Mortality rates are appreciably higher for those over 65 years of age.

In order to reduce mortality and morbidity from influenza in the U.S., the CDC’s Advisory Committee on Immunization Practices (ACIP) released its “Prevention and Control of Influenza” guide this summer. The report documents important information regarding influenza and gives recommendations to patients and providers regarding when/for whom/in what manner influenza vaccinations should be administered.

According to this paper, influenza is divided into two types: influenza A and influenza B. Influenza A is further divided into two subgroups: hemagglutinin and neuraminidase. Influenza represents a unique family of viruses since antibodies developed against one strain of influenza offer little or no protection from other strains. There are also two types of vaccines. The live attenuated influenza vaccine (LAIV) uses live but weakened influenza virus. LAIV is administered through a nasal spray. The second, more traditional vaccine is the inactivated vaccine which is administered through an intramuscular injection and uses killed viruses. While the LAIV is often less unpleasant for the patient, it is usually more costly than the inactivated vaccine.

Hospitalization Rates
A variety of studies have found the following hospitalization rates which occur as a result of influenza. Below are a summary of a few studies which analyze the American population.

Years Population Age Hosp/100k – High Risk Hosp/100k – Healthy
’73-’93 TN Medicaid 0-11 mos 1900 496-1038
1-2 yrs 800 186
3-4 yrs 320 86
5-14 yrs 92 41
’92-’97 2 HMOs 0-23 mos 144-187
2-4 yrs 0-25
5-17 yrs 8-12
’68-’69 HMO 15-44 yrs 56-110 23-25
’70-’71 HMO 45-64 yrs 392-635 13-23
72-’73 HMO >64 yrs 399-518
’69-’95 Nat’l Hosp Data <65 yrs 20-42
’69-’95 Nat’l Hosp Data >64 yrs 125-228
’79-’01 Nat’l Hosp Data All 88

New Recommendations
The influenza vaccine is now recommended for a wide range of people (see “Persons for whom annual vaccination is recommended” below). Three important changes in ACIP’s vaccination policies for 2006 are:

  • Children under 6 years and parents of children under 6 should receive an annual flu vaccine.

  • Children under 9 years of age who have never been vaccinated should receive 2 doses of the vaccine.

  • Continued offering of the influenza vaccine even after influenza activity has been documented in a community.

Persons for whom annual vaccination is recommended

  • Children aged 6–59 months;

  • Women who will be pregnant during the influenza season;

  • Persons aged >50 years;

  • Children and adolescents (aged 6 months–18 years) who are receiving long-term aspirin therapy and, therefore, might be at risk for experiencing Reye syndrome after
    influenza infection;

  • Adults and children who have chronic disorders of the pulmonary or cardiovascular systems, including asthma (hypertension is not considered a high-risk condition);

  • Adults and children who have required regular medical follow-up or hospitalization during the preceding year because of chronic metabolic diseases (including diabetes
    mellitus), renal dysfunction, hemoglobinopathies, or immunodeficiency (including immunodeficiency caused by medications or by human immunodeficiency virus);

  • Adults and children who have any condition (e.g., cognitive dysfunction, spinal cord injuries, seizure disorders, or other neuromuscular disorders) that can compromise respiratory function or the handling of respiratory secretions, or that can increase the risk for aspiration;

  • Residents of nursing homes and other chronic-care facilities that house persons of any age who have chronic medical conditions;

  • Persons who live with or care for persons at high risk for influenza-related complications, including healthy household contacts and caregivers of children aged 0–59 months; and
  • Health-care workers.

The important changes

According to the Economist magazine (“Bit by bit“), firms such as Wal-Mart, Pitney Bowes, and Intel are announcing plans to launch an online patient-information service next year with the non-profit firm Omnimedix Institute. The consortium aims to develop Dossia, which—according to the institute—is “a secure, private, independent network for capturing medical information and delivering it to patients and their families.”

Why are firms willing to incur such high costs on behalf of their employees without any compensation in return? According to the Dossia group “with employers paying almost half of all US healthcare costs, Dossia will be an important component in making the healthcare system more efficient and effective, eliminating waste and duplication.” In other words, not only will the patients benefit, but the firms will be able to cut costs. The Economist is not entirely convinced that the consortium’s plans will work since the health care market is so fragmented on the supply-side. In fact, the greatest advances in healthcare IT have occurred within consolidated entities such as Kaiser-Permanente and the VA.

Capitalism certainly creates the best incentives for innovation, but government mandates—while often putting a damper on technological advancement—are able institute important standardization measures. Some national standard of electronic patient medical records would certainly be Pareto-improving for society. Government controlled patient health information would create to significant privacy issues and lack of flexibility on the part of providers; however, a government mandate to standardize patient records using input from insurance companies, physicians, and patients should lead to a superior outcome for all of society.

Which treatment is more effective: placebo one or placebo two? This is the test researchers Ted Kaptchuk and colleagues investigated in their study published in the British Medical Journal and summarized in an April 2006 issue of Discover (“Placebo vs. Placebo“). Kaptchuk looked at 266 volunteers with chronic arm pain and randomly assigned each of them to either receive a sugar pill or be subjected to pretend acupuncture.

Both groups experienced side effects to the placebos:

“25 percent of the acupuncture group experienced side effects from the nonexistent needle pricks, including 19 people who felt pain and 4 whose skin became red or swollen. 31 percent of the pill group experienced side effects from the make-believe drug, including dizziness, restlessness, rashes, headaches, nausea, and 4 cases of nightmares. Dry mouth and fatigue were the most common side effects, and 3 subjects withdrew from the study after reducing the dosage failed to control their symptoms. The reported side effects exactly matched those described by the doctors at the beginning of the study.”

After ten weeks, individuals receiving the fake acupuncture reported a larger reduction in pain than those taking the sugar pill. Kaptchuk has a logical explanation for this.

“Kaptchuk says that the rituals of medicine explain the difference: Performing acupuncture is more elaborate than prescribing medicine. Other rituals that may make patients feel better include ‘white coats, and stethoscopes that you don’t necessarily use, pictures on the wall, the way you reassure a patient, and the secretaries that sign you in.’ Careful manipulation of such rituals could make all types of treatment more effective, Kaptchuk suggests.

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