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PHYSICIANS FOR A NATIONAL HEALTH PROGRAM. 29 EAST MADISON SUITE 602 CHICAGO, IL 60602 TEL: (312) 782-6006 WWW.PNHP.ORG. The Uninsured.
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PHYSICIANS FOR A NATIONAL HEALTH PROGRAM 29 EAST MADISONSUITE 602CHICAGO, IL 60602TEL: (312) 782-6006WWW.PNHP.ORG
Hannum thought he had a stomach flu or food poisoning from bad chicken. On Monday, his brother saw him looking ashen and urged him to go to the hospital. "He had a little girl on the way," his older brother Curtis Hannum said. "He didn't want the added burden of an ER visit to hang on their finances. He thought 'I'll just wait,' and he got worse and worse." By the time Hannum got to the hospital and was admitted to surgery, it was too late. Paul Hannum, 45, died on Thursday, August 3, 2006, from a ruptured appendix. His daughter, Cameron was born two months later.
Variation in Medicare Spending: Some Regions Already Spend at Canadian Level
Half of Americans Live Where Population Is Too Low for Competition A town’s only hospital will not compete with itself Source: NEJM 1993;328:148
Why the ACO/HMO Concept Resonates Proliferation of redundant high tech facilities and useless, even harmful interventions Neglect of primary care, public health, prevention, mental health Lack of teamwork Widespread quality problems need system solutions Inadequate public accountability
HMO and ACO:Similar Definition, Purpose, and History Diagnosis: FFS and “fragmentation” Rx: Invert FFS incentives, shift insurance risk to doctors; “protect” patients with report cards; consolidate providers into larger entities Same vague definition: network of providers “held accountable” for cost (via capitation) and quality (via report cards) Shared poster child: Kaiser Permanente Both initiated by politicians advised by key policy entrepreneurs (HMO: Paul Ellwood; ACO: Elliot Fisher)
HMO-ACO Logic FFS is the problem; capitation(shifting insurance risk) the solution. But . . . small clinics and hospitals can’t bear risk, so consolidation is necessary. Shifting risk creates incentive to deny care, so report cardsare necessary.
Predicting the Impact of ACOs • Track record of HMOs • Results of Medicare’s Physician Group Practice Demonstration, 2005-2010 • Evidence on tools ACOs likely to use: • prevention and disease management • “care coordination” • report cards and P4P schemes • electronic medical records