In pursuit of better health care for less money, Minnesota hospitals show uneven results
The uneven outcome showed that
Three
Only one of the three reported savings in 2017, according to results released last month.
The Allina and Fairview systems lost money --
"There's a limit to how much we can afford to lose in any given program," said Dr.
Officials at Allina, Fairview and
"We need payment models that reward us for better outcomes," Christensen said.
Fixed payments per patient increase risks for hospitals if they spend more than predicted, but they also create the flexibility to try solutions that aren't on the typical menu of medical services. Hospitals might hire extra nurses, for example, to coordinate patients' care by calling or visiting them at home, said Dr.
"This is something that, 10 years ago, I only dreamed about," she said.
Kopski recalled a patient who kept turning up in the ER because he was missing appointments for dialysis, a blood-filtering procedure for patients with failing kidneys. A nurse discovered that he felt too weak in the mornings to get up and get to the clinic. A switch to afternoon appointments reduced his ER visits.
Now
Solutions such as home visits might seem simple, compared with new drugs or devices, but patients such as
When she had breathing problems in the past, she would call her clinic and usually be told to go the ER. Under the new approach, doctors took time to learn more about Swanson's illness and determine what types of breathing episodes she could manage at home. They also took steps to improve her well-being, weaning her off a steroid because of the side effect of lost bone density and encouraging her to boost her energy with a higher-calorie diet.
"Eat more French fries. Have a shake once in a while," her doctor advised.
Swanson said her doctors and nurses treat her like a friend. They even discussed the energizing benefits of getting a dog -- though her doctor advised her to get a docile service dog, and Swanson chose a wiggly puppy.
"It's what makes her happy," said her son,
These coordinated medical arrangements are commonly referred to as accountable care organizations, or ACOs. Hospitals and clinics band together to form ACOs, which manage the overall care of patients, and insurers pay them by their predicted total costs, rather than by the number of procedures they perform. Fairview was the first locally, in 2012, to try the ACO approach through private insurance contracts with Medica and PreferredOne.
Fairview, Allina and
The trouble with Next Gen is that it based payments for 2017 on medical costs in 2015 and allowed for no more than a 3 percent increase in the illness levels of patients, said
ACO contracts with private insurers have been more successful and have been easier to negotiate because they encourage hospitals and insurers to save money together, rather than at one another's expense, Fromm said. "They tend to be structured so when we win, the payer wins, and the consumer wins," he said.
Healthier patients?
Patients' outcomes are monitored as part of ACOs, to ensure that cost savings aren't achieved at the expense of patient care.
Fairview offered data showing that patients in its PreferredOne ACO fared better with chronic conditions such as diabetes and asthma. Clinics in
Allina's Christensen agreed that ACOs have improved patient outcomes. Care coordination has helped patients with multiple chronic diseases, who in the past were treated by multiple providers who didn't know what the others were doing, he said.
Whatever savings they've achieved, ACOs haven't reversed the overall trend of rising health care spending. The annual cost per person of commercially insured patients in
One reason could be that health systems are still getting paid largely under the traditional model -- per procedure ordered. Only a sliver of Allina's revenue is affected by the new risk-based ACO contracts. Christensen said that probably isn't enough to motivate wholesale change.
"Until the financial risk gets to a certain size, it really doesn't cross the tipping point where the pressure is enough for the system to fundamentally change the way it provides care," he said. "That's the state of American health care now. These programs have grown in number, but sometimes they're broad and shallow."
When she was hospitalized recently for pneumonia, doctors fitted her with a pump that automatically injected antibiotics into her body. This allowed her to go straight home, rather than to a short-term nursing home. A nurse called frequently for a time and still calls every few weeks, knowing that Swanson has become increasingly homebound this winter.
"She kind of keeps track of me," Swanson said.
___
(c)2019 the Star Tribune (Minneapolis)
Visit the Star Tribune (Minneapolis) at www.startribune.com
Distributed by Tribune Content Agency, LLC.



Trump trashes Roe v. Wade ruling in anti-abortion screed lamenting ‘lives cut short’
Noble Public Adjusting Group is fighting insurance companies after Hurricane Michael to get clients higher claim payments
Advisor News
- Finseca and IAQFP announce merger
- More than half of recent retirees regret how they saved
- Tech group seeks additional context addressing AI risks in CSF 2.0 draft profile connecting frameworks
- How to discuss higher deductibles without losing client trust
- Take advantage of the exploding $800B IRA rollover market
More Advisor NewsAnnuity News
- Somerset Re Appoints New Chief Financial Officer and Chief Legal Officer as Firm Builds on Record-Setting Year
- Indexing the industry for IULs and annuities
- United Heritage Life Insurance Company goes live on Equisoft’s cloud-based policy administration system
- Court fines Cutter Financial $100,000, requires client notice of guilty verdict
- KBRA Releases Research – Private Credit: From Acquisitions to Partnerships—Asset Managers’ Growing Role With Life/Annuity Insurers
More Annuity NewsHealth/Employee Benefits News
- AI, health insurance stocks drove a bumpy week for markets
- Medicare Advantage insurers face new curbs on overcharges in Trump plan
- When health insurance costs more than the mortgage
- As ACA subsidies expire, thousands drop coverage or downgrade plans
- Findings from Centers for Disease Control and Prevention Provides New Data about Managed Care (Association Between Health Plan Design and the Demand for Naloxone: Evidence From a Natural Experiment in New York): Managed Care
More Health/Employee Benefits NewsLife Insurance News