Categories

Category: Uncategorized

POLICY: An Outcomes Primer by Eric Novack

THCB welcomes back regular contributor Dr. Eric Novack, who has something to say about outcomes as well as some recent snide comments made about orthopedic surgeons by a certain other poster on the site. In addition to blogging for THCB in his (oh so rare) free time, Eric is also the host of The Eric Novack show, which airs every Sunday on KKNT 960 AM in Phoenix. You can find an archive of his recent shows here.   

An Outcomes Primer

By ERIC NOVACK M.D.

Many in medicine view those of us in orthopedics as the ‘dumb bone doctors’Sd2 (or, according to the IV, much worse than that). Much of this stems from the basic idea that fracture care, or broken bone treatment, seems very straight-forward. Oh, but wait…

So here is a brief sense of how difficult it can be to evaluate outcomes even in the ‘simple’ area of a broken wrist. And, how it can be absurd to make the surgeon completely responsible?

The first question we need to ask is, “what outcome are we measuring”? Are
we going to look at (a) has the bone healed? (b) how ‘good’ does the
xray look- i.e. how close to ‘perfect’ are the bones lined up? (c) how
is the patient’s function, and at what point after injury do you
measure- months, years?

THCB is big on functional outcomes, so let’s just say that we care about wrist function 1 year after injury. But what kind of function? Range of motion? Return to work? Return to sports?

I’ll
make it easy and say we’ll leave that to the patient and simply ask
about satisfaction with ability to return to pre-injury functioning.

Stick
with me- I know we are looking at the easy area of a broken bone. So,
we are trying to determine functional outcomes 1 year after a wrist
fracture.

Here is one way to look at the factors impacting the outcome:

1. Patient
factors – age, motivation to get better, willingness to listen to
medical advice and follow recommendations, nutritional status, other
medical conditions, previous injuries, secondary gain issues (workers’
comp, lawsuits), body’s response to injury (i.e. inflammatory response
to trauma)

2. Injury factors—severity of injury force (e.g. trip
over dog vs. 60mph motorcycle crash), location of fracture (e.g.
involving joint cartilage), degree of displacement (i.e. how ‘bad’ the
xray looks), associated soft tissue injuries, associated injuries
impacting treatment and rehab decisions

3. Surgeon
factors—appropriate decision making, surgical technical skill,
doctor-patient communication (discussing injury, options, risks, and
expectations)

Rhetorically (and not), I ask- how much of the outcome can the surgeon possibly control?

The
answer, of course, is only the ‘surgeon factors’, which I will claim
generally make up a relatively small piece of the total outcome pie.

So
I say again (and again)- until I can get some converts… the future of
quality improvement lies not in just trying to identify ‘best
practices’ that can be difficult to prove and identify and can change
every few years—but rather in identifying what are the WRONG approaches
for conditions (much easier to get agreement here), and emphasizing the
importance of communicating appropriate expectations to patients.

POLICY/PHYSICIANS: Too many doctors

Dartmouth worthy David Goodman has an op-ed in the NY Times called Too Many Doctors in the House. It makes the arguments that you all know well, but it does contain this lovely zinger.

The association of medical colleges has argued that increasing the doctor supply overall can remedy regional shortages. But in the past 20 years, as the number of doctors per capita grew by more than 50 percent, according to our measurements, most of the new ones settled in areas where the supply was already above average — places like Florida or New York — rather than in regions that lack doctors, like the rural South. Medical training is an expensive business, and it makes little sense to waste additional public dollars to perpetuate doctors’ preference to live in affluent places. (my emph added)

HOSPITALS: Overpaid facility managers?

A long while ago (1995?) I was with Ian Morrison trying to sell something to an exec Mt Sinai Hospital in New York. Wondering by the exec’s office was Jack Rowe, lately of Aetna, but then the CEO of Mt Sinai. Ian was due to talk to their board; Jack noticed him and said something similar to, "don’t use your line about hospital CEO’s being overpaid facilities managers". It was half joking full serious.

Recently close to my neck of the woods there’s been a little fuss about salaries at El Camino Hospital–a district hospital in Mountain View, CA in the heart of Silicon Valley. (A district hospital is a weird California beast–basically a typical non-profit with some relatively minor tax support from the locale).

Back in the 1990s like many hospitals, El Camino was bleeding money. But the ship got righted. Now it makes a pretty decent profit with around $21m in income on something over $300m revenue. Still there was a big spat about whether or not the hospital (which does after all get some tax payer support) should tell the world about how much its CEO gets. Eventually they were forced to reveal all

El Camino Hospital’s chief executive officer earned a base salary of $492,291 in 2004, according to IRS Form 990, released by the hospital last week. In addition, CEO Lee Domanico received a bonus of $173,306, $9,000 in expenses and allowances and $249,127 in deferred compensation and contributions to his benefit plan. In 2002, the hospital lent the CEO $850,000 at 6 percent simple interest on a 10-year loan. Annual interest forgiveness is treated as additional compensation. In 2004, $19,380 in interest was forgiven.The typical salary of a CEO of an independent hospital with more than $200 million in annual revenue was $426,000 in 2004, according to Sullivan, Cotter and Associates, which prepared the comparison sheet the hospital released with the Form 990. The independent El Camino Hospital’s revenue is more than $300 million a year, Friedenberg said.

But actually it was rather more than that for the CEO, the scurrilous local rag the Mt View Voice reported

Tax documents released this week show El Camino Hospital CEO Lee Domanico received more than $900,000 in total compensation in the fiscal year ending June 30, and five other members of the hospital’s management team earned more than $300,000 during the period.

Compared to that the new guy, who starts Aug 7 but is going to have to scrape by:

Graham’s base salary is $543,000, which ranks him near the top of
his Bay Area counterparts. Washington Hospital in Fremont, also a
community district facility, pays CEO Nancy Farber a $424,557 base
salary. Domanico’s base was $500,000. Domanico’s contract also offered him a bonus of up to 40 to 45
percent of his base salary; Graham’s incentive pay will be capped at 30
percent of his base.

Now I know that living in Silicon Valley is expensive, but even so half a million bucks a year for running a community hospital seems like a pretty decent salary. Yet apparently they’re happy to believe that it’s par for the course–and it more or less is. USA Today had a piece on hospital CEO salaries a while back, but it really focused on the bigger non-profit systems which all pay a million or two. But there are roughly 2000 hospitals bigger than 200 beds but smaller than the giants. And if El Camino paying its execs that amount isn’t so out of line with other large community hospitals as their compensation excuse maker says–well perhaps running a hospital is just much harder than we cynics suppose it is. At any rate there are therefore some 2,000-ish CEOs making a prett decent whack.

Who knows, maybe the surgeons make the CEO pick up the tab.

TECH: Will Silicon Valley invade health care? by Andy Kessler

Andy Kessler is a finance guy who’s worked on Wall Street and ran a hedge fund. And like a rich-man’s Michael Lewis, he’s written a couple of books about Wall Street and the money world, and, following down the path that Maggie Mahar’s taken, he’s moving onto health care (presumably before he finds something more interesting like baseball! His book is called The End of Medicine: How Silicon Valley (and Naked Mice) Will Reboot Your Doctor. Andy saw my recent talk  at PARC and decided that I ought to know about his views, and they’re at the least provocative. So here’s a taster:

Will Silicon Valley invade health care?

By ANDY KESSLER

What the heck is a tech and finance guy like me doing sniffing around medicine? Well, I think IKessler_good_1 figured out that the way to save the $2 trillion healthcare industry – it’s for people to not get sick by getting doctors out of medicine. After spending the last few years following doctors and radiologists around, visiting cancer centers and spending time watching mice get poked and prodded, I’ve realized it is time to embed the expertise of doctors in silicon and software. Why have radiologists read mammograms to find 1 in 200 that have breast cancer? Today, a third of mammograms now have their second read done by computer, computer aided detection from companies like R2 and iCad, and for $29, much less than a radiologist, and perhaps more accurate. For me, that’s just a start. But I was astounded to learn that CT scans are on the same learning curve as PCs and iPods and cell phones. One slice per rotation moved to 4 slice, 16 slice, 64 slice and soon 256 slice CT scanners. Instead of film, the output is a high res color 3D model. Beats a blood pressure reading and cholesterol number, which is all that physicians can manage. They are flying blind.So I started running the numbers. State of the art scans are still close to $1000. Say 1% of adults have heart attacks every year. A stent procedure runs about $15,000 just for the stent, with the hospital stay and bandaids, you are in for closer to $20-30,000, let alone lost wages and productivity. Heart scans today are around $1000. So if you screen 100 people, it costs $100,000, certainly more than treating the 1 in 100 heart attack patient. So,…, Blue Cross won’t pay for scans. It is better for them if nature does their screening for them, you or I actually having a heart attack – ding, ding, ding, we found our 1 in 100.They probably still wouldn’t pay if the scans were $500. But they might at $200. And they certainly would pay at $100, because it would be cheaper to screen than to pay for care. Because it is on the silicon learning curve (down 30% every year, 50% every two years), it is pretty easy to see $100 scans within five years, probably less. Heart attacks and stroke may become a thing of the past.And cancer, the third member of the Big Three in healthcare spending? Structural CT scans will transition to molecular imaging to find cancer early. I can see biomarkers on antibody chips that can eventually sell for $1 or maybe even 10 cents can detect unique cancer proteins in blood and flag cancer early enough for much cheaper treatment, beating symptoms by five years.Doctors can’t do that. In the end, I believe that Silicon Valley will do to doctors what ATMs did to tellers.

QUALITY: Performance measures only have a little of the answer

(Hat-tip to Modern Healthcare for spotting this one). While there was lots of fuss about the IHI 1OOK lives campaign recently and whether it did or didn’t meet its target—and the NY Times gave it a pat on the back this morning in the Editorial section—there’s perhaps even more important news from a study published in JAMA today. A large multi-center team looked at the Medicare data for performance measures on post-heart attack patients with regard to how improved processes related to outcomes. These measures are the bedrock of the “we know what to do, but we don’t know how to do it” meme of IHI and the quality movement. In other words, the theory is that if we just did it all as well as the literature says we should, then there is potential for vast improvement. Unfortunately the outcomes are sobering for those of us who believe that if you apply relatively simple industrial processes to medicine it can markedly improve outcomes (and lower costs too).

We found moderately strong correlations (correlation coefficients ≥0.40; P values <.001) for all pairwise comparisons between beta-blocker use at admission and discharge, aspirin use at admission and discharge, and angiotensin-converting enzyme inhibitor use, and weaker, but statistically significant, correlations between these medication measures and smoking cessation counseling and time to reperfusion therapy measures (correlation coefficients <0.40; P values <.001). Some process measures were significantly correlated with risk-standardized, 30-day mortality rates (P values <.001) but together explained only 6.0% of hospital-level variation in risk-standardized, 30-day mortality rates for patients with AMI.

In other words, even when the hospitals did well on the performance measures, it only explained a small fraction of the overall variation in outcomes. So there are to my mind only two possible conclusions. Either performance measurements and controlling process variation don’t matter too much, or we actually—in this case at least—don’t know what works. Neither one is a particularly satisfying explanation.

TECH: Medical Manager as described by non-fans

Two very interesting pieces. First MrHISTalk has an interesting interview with the CEO of MediNotes, which sells an EMR aimed at the small physician practice market. There are some interesting remarks about the future viability of Emdeon’s Medical Manager product. Fred Trotter is an open source and therefore not entirely unbiased advocate, but take a look at his history of Medical Manager which somewhat dovetails with the MediNotes view.

 

QUALITY: Quiet welcome to new sponsor

It’s a quiet return around here from the prolonged July 4th weekend. Meanwhile, there’s a new sponsor at THCB. This time it’s a  book called On Track To Quality by James Todd, a pediatrician at Children’s Hospital in Denver. The book is a philosophical investigation into quality, involving not a motorcycle trip, but a train journey.  Interesting stuff, and a longer review will be forthcoming shortly.

HOSPITALS: HCA’s Californication problem

Not all is well with HCA in California. The SEIU has been trying to start a fight with HCA over staffing for some time.. Apparently three Southern Calif hospitals are threatening to go on strike and in Northern California something similar is going on at HCA’s Good Samaritan Hospital in San Jose. The union employees have been negotiating with HCA and working without a contract for months now. They voted on Weds overwhelmingly with 90% approval to go on strike sometime in the near future, possibly this week.

assetto corsa mods