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Related Experiment Videos

Lowering physician hospital resource consumption using low-cost, low-technology computing.

C C Johnson1, M Martin

  • 1Anderson Area Medical Center, SC, USA.

Clinical Performance and Quality Health Care
|March 8, 1997
PubMed
Summary
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Physician performance reports detailing clinical outcomes and resource use significantly reduce hospital costs. Providing physicians with comparative data encourages more efficient decision-making, leading to substantial savings in patient care.

Area of Science:

  • Healthcare Management
  • Medical Informatics
  • Health Economics

Background:

  • Physicians at Anderson Area Medical Center have received practice performance data for over five years.
  • Reporting initially focused on specific conditions like acute myocardial infarction (AMI) and pneumonia, expanding over time.
  • A uniform, monthly physician-specific reporting format has been used for the past 18 months.

Purpose of the Study:

  • To evaluate the effectiveness of disease-specific and procedure-specific physician performance reporting.
  • To determine the impact of such reporting on hospital resource utilization and costs.
  • To assess the potential for cost savings through education-based physician practice reporting.

Main Methods:

  • Physicians were provided with monthly reports detailing clinical outcomes and hospital resource consumption.

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  • Reports utilized a modest PC platform with standard database, word processing, and graphics software.
  • Data covered a range of conditions including AMI, pneumonia, congestive heart failure, stroke, diabetes, and surgical procedures.
  • Physician performance was benchmarked against peers on various outcome and resource variables.

    • Main Results:

    • Educational reporting significantly reduced average length of stay and total charges.
    • Aggregate charge reductions were $203,680 for AMI, $220,296 for pneumonia, and $146,832 for hip replacement patients.
    • Total documented benefit for these three patient groups was $570,808.
    • Annualized estimated charge reductions reached $1,568,644, with hospital cost savings near $706,000.

    Conclusions:

    • Education-based physician-practice reporting is effective in promoting resource-efficient decision-making.
    • Providing physicians with comparative performance data can lead to significant reductions in healthcare costs.
    • The reporting system, requiring minimal IT resources, demonstrates a strong return on investment for hospitals.