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Choosing a health plan: do large employers use the data?
J H Hibbard1, J J Jewett, M W Legnini
1Department of Planning, Public Policy, and Management, University of Oregon, Eugene, USA.
Health Affairs (Project Hope)
|January 28, 1998
Summary
Large employers struggle to use performance data, including clinical outcomes, for healthcare purchasing decisions. Information overload and lack of awareness hinder effective use, impacting purchasing strategies.
Area of Science:
- Health Services Research
- Healthcare Management
- Health Economics
Background:
- Substantial resources are invested in developing performance measures for healthcare services.
- Existing research primarily explores the impact of clinical outcomes data on clinical practice, not purchaser decisions.
Purpose of the Study:
- To investigate how large employers utilize performance information, specifically clinical outcomes, in their healthcare purchasing decisions.
- To identify barriers faced by employers in using performance data for strategic purchasing.
Main Methods:
- Qualitative study involving interviews with representatives from thirty-three large employers.
- Employers collectively represented 1.8 million covered lives, interviewed in early 1997.
Main Results:
- Purchasers often lack awareness of available clinical outcomes data.
- Current performance measures do not adequately meet the decision-making needs of large employers.
- The sheer volume and variety of performance information present a significant barrier to effective purchasing decisions.
Conclusions:
- There is a critical need to improve the accessibility and usability of clinical outcomes data for employers.
- Strategies are required to support purchasers in effectively leveraging performance information for healthcare procurement.
- Enhancing the decision-making utility of performance measures is essential for optimizing healthcare purchasing.