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Using measurement and feedback to reduce health care costs and modify physician practice patterns
D A Manus1, T R Werner, R J Strub
1Iameter, Inc., San Mateo, CA.
Quality Management in Health Care
|December 4, 1994
Summary
Healthcare purchasers in Cincinnati collaborated with providers to address rising costs. This partnership significantly reduced hospital stays and healthcare inflation, improving market value.
Area of Science:
- Health Services Research
- Healthcare Management
- Health Economics
Background:
- Rising healthcare costs and the difficulty in defining value in healthcare services prompted action.
- A group of Cincinnati healthcare purchasers sought solutions to these systemic issues.
Purpose of the Study:
- To investigate the impact of a collaborative purchaser-provider initiative on the Cincinnati healthcare market.
- To identify changes in healthcare delivery, cost, and provider practices.
Main Methods:
- Formation of a collaborative effort between healthcare purchasers and providers.
- Analysis of market data after one year of the collaborative's operation.
Main Results:
- Significant overall decrease in average length of hospital stay.
- Return to single-digit inflation rates for healthcare services.
- Observable changes in provider practice patterns.
Conclusions:
- Collaborative initiatives between purchasers and providers can drive significant positive changes in healthcare markets.
- The Cincinnati model demonstrates a successful approach to controlling costs and improving healthcare value.