Surgical Quality Difficult for Health Plans to Assess: Study
Health plans face significant challenges in reliably assessing the quality of individual surgeons’ patient outcomes, and need better ways to measure physician quality when selecting the best surgeons for their members, according to a study published in the December American Journal of Managed Care.
The study examined the results of more than 220,000 coronary artery bypass graft (CABG) procedures performed in 75 Florida hospitals between 1998 and 2006.
Marco Huesch, a physician and assistant professor of strategy at Duke University’s Fuqua School of Business, conducted the analysis. “While it might be natural to assume that health plans select surgeons based on the quality of their patient outcomes, as it turns out, it’s generally almost impossible for an individual company to do so,” Huesch said in a statement.
Huesch’s analysis of rates of in-hospital mortality did find differences in outcomes between surgeons. However, it also confirmed that the law of small numbers, a situation where there are too few items in a sample to draw reliable conclusions, would prevent insurers from accurately assessing the quality of the Florida surgeons’ care.
“While we found differences in mortality rates across physicians, no single insurance provider had enough patients undergoing surgeries by the same physicians in order to generate statistically significant data against which it could judge outcomes,” Huesch said. He said the current effort to reform U.S. health care is likely to exacerbate the situation. “As we create new insurance entities to cover previously uninsured Americans, we’ll simply have even more data being collected by separate companies, none of which is being combined in a way that it can be usefully evaluated.”
Don’t Cry for Managed Care Companies
Q2 2009 Managed Care Profits Stagnate
by Carl Mercurio
Second-quarter 2009 net income for the healthcare operations of 10 top managed care organizations rose 1% to $2.095 billion on revenues of $65.433 billion, up 5.6%, according to a tally in the latest issue of Managed Healthcare Market Report.
The figures include United Healthcare Services (United Healthcare, Ovations, AmeriChoice) Aetna Healthcare and Cigna HealthCare. Including the corporate parents, second-quarter net income rose 32% to $2.776 billion on revenues of $68.67 billion, up 5.2% — largely because in 2008 United took nearly $1 billion in charges to settle class action litigation related to its stock options practices.