Posts Tagged ‘HMO’

“Medical Home” – Closest Care to a House Call

Wednesday, December 30th, 2009

Medical home approach to healthcare can cut hospitalizations and ER visits.  It’s almost – but not quite – a house call.

A new healthcare concept called “medical home” is emerging across the country, especially in Illinois.  It is primary care devoted to prevention and to helping people with chronic conditions such as diabetes or arthritis manage their illness.  In a medical home, a physician oversees a team of nurses, physicians’ assistants and health coaches who make certain that their patients get the care, support and education they need.  Another benefit is that the plan frees up the doctor’s time to focus on the more serious medical issues.

Medicare recently announced a similar initiative, and healthcare reform legislation could champion medical homes.  One pioneer in the field is Group Health Cooperative, a Seattle-based HMO that plans to convert 26 clinics in Washington and Idaho to medical homes.  The pilot program, established two years ago, reduced ER visits by 29 percent and hospitalizations by 11 percent while improving the quality of care, according to a report in the September issue of the American Journal of Managed Care.

For medical homes to function properly, physician compensation will have to change, says Dr. David Swieskowski, chief executive of the Des Moines-based Mercy Clinics, Inc.  The model works optimally when physicians are full-time, salaried employees.  This payment arrangement is fairly rare, and insurance companies don’t reimburse physicians for taking extra time to talk to patients.

Medicaid introduced a version of medical homes in Illinois through Medicaid in 2006 and 2007.  During that time, Medicaid assigned 1.9 million people to physicians who agreed to coordinate care for an extra monthly fee.  As a result, immunizations, vision screenings and other types of basic care have improved, state officials say.

Healthcare Cooperatives Worth a Look

Wednesday, November 11th, 2009

The Obama administration floated the idea of healthcare cooperatives as one solution to fix the nation’s broken delivery system – a proposal that was rejected out of hand by the opponents of reform.  Co-ops thrive in environments where people with mutual economic interests share resources to maximize their market power.  Because co-ops don’t pay dividends to stockholders, they reinvest profits and have a strong track record of providing innovative, cost-effective healthcare.Healthcare Cooperatives Worth a Look

There are downsides to healthcare co-ops, though.  They are often too small to compete with the insurance companies and so lack the ability to negotiate effectively with large hospitals or physician groups.  Most can’t afford computer systems for electronic billing or the technologies to deliver physician services.

Yet there are stories of extremely successful healthcare co-ops.  The major players – in Seattle and Minneapolis/St. Paul – have more than 500,000 members and each runs their own hospitals, clinics, physician groups and insurance plans.  Bloomington, MN-based Health Partners compensates physicians based on productivity.  Between 1998 and 2002, the co-op saw physician productivity soar by 38 percent and costs fall by 20 percent.  In 2007 Health Partners paid $27 million in incentives to caregivers who met productivity and patient satisfaction objectives.

The 62,000-member Group Health Cooperative of South Central Wisconsin, based in Madison, is another success story.  The co-op has used electronic records for seven years, according to executive director Larry Zanoni, and a prominent industry group ranks it eighth nationwide among HMOs for the quality of healthcare it provides.

Switzerland-Style Healthcare System Could be the Solution

Monday, September 28th, 2009

One instructive lesson in reforming American healthcare may be to adopt the Swiss model, which is regulated by the Federal Health Insurance Act of 1994,  and made health insurance compulsory for all residents.  Previously, Switzerland had an American-style system, which became a national outrage when studies revealed that five percent of the population lacked any coverage.

165298519_12e65e294bToday, 99.5 percent of the Swiss people are insured with coverage funded by the individual who generally pays the full cost of premiums. Government subsidies are provided for the poor, with approximately one-third of all Swiss citizens receiving the subsidy.  “These subsidies are designed to prevent any individual from having to pay more than 10 percent of income on insurance.”  All insurance is private and physician compensation is negotiated between the insurance companies and doctors on a canton-by-canton basis.

The down side is that Swiss healthcare is expensive, with costs rising 10 to 20 percent every year.  Monthly health insurance costs for a family with one child can amount to CHF 1,000 ($944).  Deductibles can be adjusted, though, from CHF 300 ($283) to CHF 2,500 ($2,360).  The state will help with the costs if income (married/without children) is around CHF 30,000 ($28,920) or (married/with children) around CHF 60,000 ($56,581).  In those circumstances, the government pays half the cost of insurance.  Options are available that will lower the monthly costs, similar to the American HMO model.  In these plans, the person must consult with their physician prior to seeing a specialist.

“The mix that Switzerland represents between private enterprise and general state regulations that make healthcare accessible to everyone is really an interesting example for the United States,” said Felix Gutzwiller, a Radical Party senator and head of Zurich University’s department of public health.  In Switzerland, administrative costs consume on average five percent of health insurance revenue.  In the United States, it’s closer to 20 percent.

In terms of satisfaction, the World Health Organization puts Switzerland in 20th place in its rankings of healthcare systems around the world.  The United States ranks 37th, sandwiched between Costa Rica and Slovenia.