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The Olmsted County Benchmark Project: primary study findings and potential implications for corporate America
M E Campion1, J M Naessens, C L Leibson
1Section of Health Services Evaluation, Mayo Clinic, Rochester, MN 55905.
Mayo Clinic Proceedings
|January 1, 1992
Summary
Employers face rising healthcare costs and need to assess hospital utilization. This study compares corporate populations to a benchmark, highlighting data challenges and identifying effective cost-containment strategies without compromising care quality.
Area of Science:
- Health Economics
- Healthcare Management
- Medical Care Utilization
Background:
- Medical care expenditures in the US have surged tenfold since 1965.
- Rising healthcare costs have led to increased corporate spending on employee health benefits.
- Employers implement cost-containment strategies, often assuming unnecessary utilization drives costs.
Purpose of the Study:
- To assist employers in evaluating their hospital utilization and expenditures.
- To identify specific areas within corporate populations that warrant further investigation for cost-saving opportunities.
- To compare hospital utilization across different US corporate populations against a benchmark population.
Main Methods:
- Comparison of hospital utilization rates between several US corporate populations and a geographically defined benchmark population.
- Analysis of medical care claims data to assess utilization patterns.
- Evaluation of potential biases and comparability issues between populations.
Main Results:
- The study highlights significant difficulties in constructing accurate utilization rates from claims data.
- Potential biases arising from population comparability issues were identified.
- The findings underscore the challenges employers face in assessing utilization and its appropriateness.
Conclusions:
- Comparative analysis can aid corporations in identifying areas for effective cost-containment.
- Such comparisons can help ensure cost-containment efforts do not negatively impact the quality of medical care.
- Addressing data limitations is crucial for accurate assessment of healthcare utilization and costs.