Integrating cost information with health management support system: an enhanced methodology to assess health care quality drivers.

Changes in health care delivery, reimbursement schemes, and organizational structure have required health organizations to manage the costs of providing patient care while maintaining high levels of clinical and patient satisfaction outcomes. Today, cost information, clinical outcomes, and patient satisfaction results must become more fully integrated if strategic competitiveness and benefits are to be realized in health management decision making, especially in multi-entity organizational settings. Unfortunately, traditional administrative and financial systems are not well equipped to cater to such information needs. This article presents a framework for the acquisition, generation, analysis, and reporting of cost information with clinical outcomes and patient satisfaction in the context of evolving health management and decision-support system technology. More specifically, the article focuses on an enhanced costing methodology for determining and producing improved, integrated cost-outcomes information. Implementation issues and areas for future research in cost-information management and decision-support domains are also discussed.

The cost and efficiency of hospital care provided by primary care physicians and medical subspecialists.

There is a perceived excess of subspecialists compared with primary care doctors, but there are few severity-adjusted data that characterize the care provided by these physician groups. In a nationwide hospital network, we studied outcomes of 17,185 patients who were hospitalized for 1 of 9 common internal medicine illnesses. For 4 of 9 conditions, the subspecialists treated more severely ill (P < .001) patients. The raw total charges for their care were higher (P < .002) for 4 of 9 conditions and longer stays were required for 2 conditions. After adjusting for severity of illness, differences between the physician groups became minimal. In nine-severity adjusted medical illnesses, subspecialists and primary care physicians provide care that produces similar results for length of stay, charge, and mortality. Health care manpower projections should be re-evaluated in light of this information.

The utility of hospital administrative data for generating a screening program to predict adverse outcomes.

A system to predict which patients will suffer medical complications or poor financial outcomes during a hospitalization would be very useful to providers of medical care. To develop such a system, we applied two previously developed indices that predict in-hospital complications to all 321,558 adult patients discharged from our hospital network. The indices identified 26,377 patients (8.2%) who experienced one or more medical complications. For these patients, high-risk admitting diagnoses were identified. We tabulated 4235 admitting diagnoses and focused on 26 (0.6%) diagnoses that were high-risk and high-volume for complications. We found that 25% of patients with these admitting diagnoses experienced complications during hospitalization. Prevention of these complications could have saved 1241 hospital days, 11 lives, and $10.5 million. Administrative data available at the time of admission can be useful in identifying the small subset of patients who are likely to experience adverse clinical outcomes during a hospitalization and those who are likely to generate adverse financial outcomes for the hospital.