Saving Money by Bundling Care

A few months ago my a member of my family had 3 extended stays in the hospital. I had Appendicitis in graduate school, so I had a scene of how messed up the medical billing system had become. But I was not prepared for the sheer number of bills for doctors, specialists, sub contractors, hospitals, laps, other tabs that were the result of nearly a month in the hospital.

One of the things that have lead to the increased cost of medical care in the United States has been the overhead realated to record keeping and billing. A new pilot program by Department of Health and Human Services aims at streamlining this process. This program will offer "bundled" care. Patents would pay a single flat fee that would cover for an episode of treatment. From kaiserhealthnews.org

On Tuesday, the Department of Health and Human Services unveiled a Medicare pilot program that will pay participating hospitals, doctors and other health providers one, “bundled,” payment to treat a patient for a single episode of care. The program starts in 2012. To participate, providers will have to bid less, in total, than what Medicare would pay each provider separately. The traditional Medicare program pays each hospital and doctor a separate fee for its services, which critics say leads to uncoordinated care and incentives to drive up Medicare bills.

By reducing inefficiencies and waste, health care organizations will be able to reduce the cost of providing care.

Until Next Time,
Mike
Healthcare Software

Why the recession increased access to health care

The Washington Post's Sarah Kliff has an interesting post on her blog:

One unexpected side effect of the recession: Access to health care has increased. A studypublished today by the Center for Studying Health Change tracks issues related to accessing health care from 2007 through 2010. It finds that fewer Americans are experiencing unmet health needs or delaying medical care. As the above chart shows, this is true for both those with and without health insurance.

As it becomes more difficult for people to pay for treatment the demand for treatment drops and along with it the cost. This is clearly a double edged sword. The fact that people are not seeking treatment means a larger burden on the healthcare system in the short and long term. Delaying care can lead to an experimental growth health issues. In times of recession, however, healthcare organizations are able to reduce in inefficiencies that are a inevitable result in an over-stressed system. Studies by the Kaiser Family Foundation believes wasteful spending accounts for 30% of medical costs.

One way that health care organizations are cutting down on waste is by using electronic medial records and tracking tools to manage the work flow within in a doctor's office or hospital. This reduces mistakes and oversights on the part of the staff. Patients get healthy faster and fewer mistakes mean less liability for the hospital.



Until Next Time
Mike,
Healthcare software

New Essay on the Advantages of Electronic Medical Records

Yesterday, while doing some research on ways to increase patient safety, I came across this essay and I though you might it useful: Electronic Medical Records and Patient Safety.