October 2010

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All patients with end stage renal disease (ESRD) are eligible for Medicare regardless of their age.  In 1972, the Social Security Act extended all Medicare Part A and Part B benefits to individuals with ESRD (of any age) who are entitled to receive Social Security benefits. ESRD beneficiaries now account for 1% of Medicare enrollment. This post review the types of services ESRD Medicare beneficiaries receive and how Medicare pays providers for these services.  Today, however, I will review Medicare efforts to improve the quality of care ESRD beneficiaries receive.  You can find an overview of the ESRD Quality Improvement Program (QIP) here.

Timeline

  • 1972. the Social Security Act extends all Medicare Part A and Part B benefits to individuals with ESRD (of any age) who are entitled to receive Social Security benefits. ESRD beneficiaries account for 1% of Medicare enrollment.
  • 1978. ESRD Amendments require the formation of ESRD Network Organizations to support the ESRD program. CMS currently contracts with 18 ESRD networks.
  • 1994. The Core Indicators Project was established to improve the care of patients with ESRD.  The Core Indicators included measures related to anemia management, adequacy of hemodialysis, nutritional status and blood pressure control
  • 1999 (Mar). ESRD CIP was merged with the ESRD Clinical Performance Measures.
  • 2000 (Jan). Section 4558(b) of the Balanced Budget Act of 1997 required CMS to develop and implement a method to measure and report
    the quality of renal dialysis services furnished under the Medicare program. To implement this legislation, CMS developed the ESRD Clinical Performance Measures (CPM) Project based on the National Kidney Foundation’s Dialysis Outcome Quality Initiative (NKF–DOQI) Clinical Practice Guidelines.
  • 2001 (Jan). Medicare launched Dialysis Facility Compare based on the Nursing Home Compare website. The quality measures initially reported on DFC were measures of anemia control, adequacy of hemodialysis treatment and patient survival. Medicare claims data were used to calculate the anemia management and hemodialysis
    adequacy rates, and administrative data were used to determine patient survival rates.
  • 2008 (Apr). The updated ESRD Conditions for Coverage final rule, which contains revised requirements that dialysis providers and facilities must meet in order to be approved by Medicare and receive payment. As part of the revised requirements, dialysis providers and facilities are each required to implement their own quality assessment and performance improvement program. The CPMs were updated to include 26 measures from the areas of anemia management; hemodialysis adequacy; peritoneal dialysis adequacy; mineral metabolism; vascular access; patient education/perception of care/quality of life; and patient survival.
  • 2008 (Jul). Section 153(c) of the Medicare Improvements for Patients and Providers Act (MIPPA) requires that Medicare implement a quality incentive program (QIP)
  • 2009 (Feb). Medicare began implementing the CROWNWeb system to electronically collect information on about patients, facilities, providers, and clinical data to support the CPM Project.
  • 2009 (Sep). Medicare decides to begin paying ESRD providers based on a prospective payment system (PPS) beginning in 2011.

Where are we now?  Medicare will begin paying dialysis providers through a PPS beginning in 2011.  This will give providers an incentive to provider services more cost effectively, but also potentially will give them an incentive to decrease the quality of care.  To ensure that ESRD beneficiaries receive the same quality of services under PPS as under a FFS, Medicare developed the QIP.  Below, I review the QIP in more detail.

Quality Incentive Program

The QIP requires Medicare to establish an ESRD quality program using the following steps:

  1. Select measures;
  2. Establish the performance standards that apply to the individual measures;
  3. Specify a performance period with respect to a year;
  4. Develop a methodology for assessing the total performance of each provider and facility based on the performance standards with respect to the measures for a performance period; and
  5. Apply an appropriate payment reduction to providers and facilities that do not meet or exceed the established total performance score.

Medicare has already chose quality measures for the initial year.  Data from the following three measures will be submitted to CMS via ESRD claims.

  • Percentage of Medicare patients with an average Hemoglobin <10.0 g/dL (2%);
  • Percentage of Medicare patients with an average Hemoglobin >12.0 g/dL (26%); and
  • Percentage of Medicare patients with an average Urea Reduction Ratio (URR) >65 percent (96%).

The numbers in parentheses represent the national performance rates for all dialysis providers and facilities based on 2008 data from the Dialysis Compare website.  Providers receive a score between 0-10 based on their performance on each measure.  Medicare has recently proposed a scoring method which subtracts 2 points for every 1 percentage point the provider falls below the initial performance standard (e.g., if the initial performance standard for a particular provider or facility for the Hemoglobin>12 g/dL is set as the 2008 national average rate (26%), then if that provider/facility had 28% of Medicare patients with hemoglobin levels>12 g/dL during 2010, the provider/facility would receive 6 points for its performance on the measure as 28% is 2 percentage points below the performance standard). The provider’s total score could be weighted evenly across all three scores.  Alternatively, some have proposed weighting the Hemoglobin <10.0 g/dL at 50% of the score and the other two quality measures at 25% of the provider’s score to put more weight on avoiding low hemoglobin levels.

Payment will be based on the provider’s score.  THe proposed payment reduction scale is as follows:

  • 26-30 points: 0.0%
  • 21-25 points: -0.5%
  • 16-20 points: -1.0%
  • 11-15 points: -1.5%
  • 0-10 points: -2.0%

In the future, Medicare will consider expanding the QIP program to include additional measures.  Quality measures considered include:  Kt/V, vascular access rates, bone and mineral metabolism, and access infection rates.

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Although somewhat outdated, this report by Mark et al. (2007) provides a glimpse at trends in mental health and substance abuse (MHSA) spending.

National expenditures for the treatment of MHSA disorders amounted to $121 billion in 2003, up from $70 billion in 1993.  The average annual rate of (5.6%) was somewhat slower than spending growth for all medical services (6.5 %).  As a result, MHSA spending as a share of all health spending fell to 7.5 percent of the $1.6 trillion spent on all health services in 2003, from 8.2 percent in 1993.

From 1993 to 1998, a period of rapid expansion of managed care, the growth rate for MHSA expenditures was only 3.4% compared to 5.4% for all health services.  From 1998 to 2003 MHSA spending grew by 7.9 percent similar to the 7.7 percent for all health.

Of all MHSA spending, $100 billion was for mental health and $21 billion was for substance abuse.  The pie chart below gives the breakdown of payers for MHSA spending in 2003.

The next chart shows the distribution of MHSA expenditures by provider in the same year.

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The year 2010 marks the last for the decennial Census.  Although you might miss the ad campaigns every 10 years, the Census hasn’t really disappeared completely.  Instead, it’s being replaced by the American Community Survey (ACS).  Although the goals of the ACS are similar to those of the Census, its approach is very different.  Rather than survey all individuals each year, the ACS surveys about 250,000 addresses per month (i.e., 3 million addresses/year).  This amounts to a survey of about 2.5% of households each year.

The Missouri Census Data Center notes some of the pros and cons of the change.

Pros

  • The ACS provides a more current picture of the country.  Currently, the latest Census data is available for the year 2000 while in December the ACS will release figures for 2009.
  • New questions can be added to the survey without having to wait for the decade to change
  • Researchers can calculate statistics at the national, state, MSA, large city,  counties, and even PUMAs every year.

Cons

  • The sampling error associated with the decennial census long form data is much lower (in general) than that of the ACS.
  • Data for smaller geographic areas (especially those under 20,000 as well as for all ZIP codes, even those with populations over 20,000), are only released as 5-year period estimates.
  • Sampling methodology relies on the accuracy of Census population estimates.
  • Since using data for small area requires the use of a sample taken over a 5-year period, it will be impossible to use the ACS data to pinpoint areas that may be undergoing significant changes over the period.

Overall, the key benefit of the ACS is that it provides more timely responses while the drawback is that the pool of household sampled in a given year is much less than is the case for the decennial Census.

I have also made this spreadsheet to compare the ACS to the decennial Census.

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The latest edition of the Cavalcade of Risk is up at Wisdom From Wenchypoo’s Mental Wastebasket.

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The 2010 Nobel Prize in Medicine went to Robert G. Edwards, the inventor of in vitro fertilization (IVF).  According to the Nobel Prize press release:

Robert Edwards is awarded the 2010 Nobel Prize for the development of human in vitro fertilization (IVF) therapy. His achievements have made it possible to treat infertility, a medical condition afflicting a large proportion of humanity including more than 10% of all couples worldwide.

As early as the 1950s, Edwards had the vision that IVF could be useful as a treatment for infertility. He worked systematically to realize his goal, discovered important principles for human fertilization, and succeeded in accomplishing fertilization of human egg cells in test tubes (or more precisely, cell culture dishes). His efforts were finally crowned by success on 25 July, 1978, when the world’s first “test tube baby” was born. During the following years, Edwards and his co-workers refined IVF technology and shared it with colleagues around the world.

Approximately four million individuals have so far been born following IVF. Many of them are now adult and some have already become parents. A new field of medicine has emerged, with Robert Edwards leading the process all the way from the fundamental discoveries to the current, successful IVF therapy. His contributions represent a milestone in the development of modern medicine.

Additional coverage can be found: here, here and here.  Also:

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Is an average always the best estimate?  Let us say that we are evaluating physician quality.  Does a physician’s average score across patients (or episodes of care) best represent their true quality level?  Stein’s paradox says that when we are evaluating the true quality value for a number of doctors, we can do better than the average.  To do this, we can use a shrinkage methodology.

Shrinkage methodologies in essence estimate the physician’s true quality score as a weighted average of the individual physicians average score and the average score for all physicians.  The intuition behind this is that if we observe a high quality doctor, there is some probability that the are actually a high quality doctor and some probability that they are an average doctor, but they just happened to perform above average when treating the patients in the sample.  Similarly, for low quality doctors, there is some probability that the individual is actually a low quality doctor and some probability that they are an average doctor who just scored poorly on the patients in the sample.

How to calculate the James-Stein Shrinkage Estimator

Because of an abundance of statistics, let us move from evaluating physician quality to evaluating the quality of quarterbacks (QB) in the NFL.  Let yi be the average QB rating for an individual quarterback i, and Y be the average QB rating for all quarterbacks. Then in this case, given we observe yi and Y, we can calculate the James-Stein estimator as:

  • yJS=Y+c(yi-Y)

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“…in order to prevent undocumented families from obtaining benefits illicitly, a problem that could not even be verified, Congress mandated (under a provision of th eDRA) that all Medicaid recipients must submit proof of their citizenship and identity.  Implemented in 2006, everyone subject ot the new law has to produce a birth certificate, passport, certificate of naturalization, or other designated papers.”

Did these efforts work?

According to Kevin Concannon, director of the Iowa Department of Human Services:

The largest adverse effect of this policy has been on people who are American citizens…[W]e have not turned up many undocumented immigrants receiving Medicaid in Waterloo, Dubuque or anywhere else in Iowa.”

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Although Medicaid receives significant federal funding, States run each program.  This often leads to problems when residents of one state wish to receive care in another state.  This could occur if the Medicaid beneficiary is a snow-bird, or lives in one state and works in another.  Hurricane Katrina, however, highlights best the problems of a state-run Medicaid system.

In September 2005, the Gulf of Mexico coast was devastated by the storm; nearly one million people living in Mississippi and Louisiana were forced to leave their homes,many relocated to another state.  Facing additional Medicaid costs because of these migrations, places such as Texas, Florida, Arkansas, Alabama, and Mississippi demanded federal assistance.  Instead of disbursing supplementary subsidies as needed, the Bush administration required state-by-state negotiations for emergency money through the waiver process.  Seventeen localities ultimately reached deals that allowed them to pay evacuees who met Medicaid eligibility criteria, fully funded by the federal government but only up to five months.”

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