The Pulse July 2010

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July 2010 VOLUME XXXV NO. 3

Presidential Viewpoints Accountability, Emergency Medicine and Healthcare Reform Thomas A. Brabson, D.O., MBA, FACOEP, President

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The summer of 2010 is finally here after a long and harsh winter. I hope this issue of the Pulse finds you healthy, happy and enjoying the summer fun. Make sure you take some time to relax and enjoy yourself with family and friends. The healthcare reform movement has been signed into law and now is well on its way to becoming a reality at a time when our country’s economy continues to struggle. Healthcare costs continue to rise and for the past 30 years, these costs have increased 2.8% above the Gross Domestic Product (GDP) on an annual basis. Healthcare is the largest growing expense in the $30,000 - $80,000 income households with the average family premium being $13,000. In order for the healthcare reform to take fully implemented in 2017 with a ‘new normal delivery system’, much work needs to be accomplished over the next few years. There is a proposed timeline in the law but no detail of how to achieve the goals. In the first 3 years there are approximately

105 new agencies and programs that need to be implemented in order to shape the future of the system. There also must be coordination between the state and federal governments and conformity among the insurance companies. Excise taxes will be levied on insurance, medical devices, pharmaceuticals and who knows, maybe even medical practitioners. To help fund the system, Medicare cuts will amount to $439 billion and the American Hospital Association promised $155 billion. So, we may be seeing our best reimbursement from Medicare today than we ever will in the future. That is not to say however, that Medicare is the be all and end all. Accountability is a term that is being used in many different places these days. As emergency medicine physicians, we are accustomed to being held accountable for good patient care and favorable outcomes. With the new health care law though, we will be held accountable for being active participants in the new model of care. This new model is proposed to be an integrated and coordinated model of patient care. It is proposed to deliver high value with overall total cost management. There will be new financial incentives that will not be based on high cost tests, equipment and procedures. Efficiency in patient care is what will be rewarded. The efficiency will come as the result of a more integrated system for the delivery of healthcare. As we all witness in our daily practice of emergency medicine, one of the biggest contributors to the inefficiencies in our current system is a lack of care coordination. We have a system that

The PULSE JULY 2010

allows multiple areas of episodic care but no formal mechanism to assure that all of the information about the episodes of care are gathered and assimilated in one organized place to be reviewed by a specific person. An Accountable Care Organization (ACO) is a new concept that is proposed to be a step in the right direction to have an organized continuum of medical care. These are an expansion beyond the medical home concept. The ACOs will be responsible for the clinical care coordination and integration of medical services for patients. They will also be responsible for capturing medical and financial data across the care continuum. They will be held accountable for measuring and monitoring costs and the quality of the medical care delivered. It is believed that clinical quality and efficiency will drive better financial performance. Clinical results will be outcome based and income will be based on outcomes. This means that we will be subjected to many more clinical core measures than we are today. Evidence based medicine will be the driving force for the clinical quality indicators. Appropriate resource utilization will be key to the success of this initiative. The emergency department should no longer be one of the primary entry points for access to medical care. With this integrated system, the patient should have ample opportunity to access the care that they need based upon the principle that there is healthcare provider coordination across the patient’s continuum of care. There will be continued on page 28

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