michael chernew, "value based health care payments"
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Post on 26-Jan-2017
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Scope of Accountability
Contingent on Savings
Budget Neutral
MIPPS Service No Yes
Medicare Advantage/ ACO
Patient Yes No
Bundled Payments for Care Improvement
Episode No No
Mixed/Inconclusive ◦ Many studies found no effect of P4P on quality
Of studies w/ positive effects, the effect sizes were small
◦ Low generalizability, design features differ
Size of incentives:
generally, larger incentives = larger improvements
Time: effects decrease over time
Quality measures chosen
Source: Eijkenaar et al (2013). “Effects of pay for performance in health care: a systematic review of systematic
reviews.” Health Policy 110(2-3): 115-130.
Convey information ◦ How much consumers value goods and services
◦ How much it costs to produce goods and services
Provide incentives to producers and buyers
Divide “surplus” between producers and sellers
Price regulation can attempt to remedy market failures in health care
In health care we worry that markets do not work well and quality is under provided ◦ this motivates paying more for “value”
Definition 1: Quality relative to cost ◦ Loosely synonymous with cost effective
◦ This is circular in payment models because value depends on payment.
◦ If you pay for value, value falls
Definition 2: Synonymous with quality ◦ Patient perspective (willingness to pay)
Sovaldi is a novel treatment for Hepatitis C ◦ Better quality
◦ Cost effectiveness was estimated at $47,304/QALY
Should we pay more
Source: http://nvhr.org/sites/default/files/.users/u27/Clin%20Infect%20Dis.-2015-Rein-cid_civ220%281%29.pdf
If we want to pay for value we should expect to pay for value ◦ Budget neutrality could be counter productive
◦ Access issue may arise for low value locations or providers
Contingent payments are likely sub optimal
In FFS providers do not capture downstream savings
ACOs do capture downstream savings
If primary care lowers spending higher payment may be needed in FFS but maybe not in ACOs
Measures need not be aligned across programs