ECON 440 Lecture Notes - Lecture 11: Iatrogenesis, Revealed Preference, Management System

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What is high/low quality health care?
What are quality problems? Why do they exist?
What are their strengths and weaknesses?
What are ongoing challenges?
What efforts exist to improve quality?
Outline
High Quality - "The degree to which health services for individuals and populations increase the likelihood
of desired health outcomes and are consistent with current professional care"
Effective
Patient-centered
Timely
Efficient
Equitable
Care should be:
High Quality Health Care
Overuse: using resources and procedures in the absence of evidence they will help
Underuse: failure to employ practices of proven benefit
Misuse: failure to execute clinical care plans and procedures properly - medical errors
Between 44,000 and 98,000 deaths per year in us hospitals are due to preventable medical
errors (IOM 1999)
185,000 Canadian hospital admissions are associated with an adverse event each year, about
70,000 of which are preventable (Baker et al 2004)
Medical errors, negligence, complex drug interactions
Iatrogenic effects: adverse effects or complications resulting from medical treatment or advice
Low Quality Health Care
Patient's objectives: what do they care about?
Little information about quality
What incentives do they face?
Fees that insurers pay providers reflect intensity (training, time, effort), not quality
Patient demand doesn't respond strongly to quality, so quantity doesn't change much
"No business case for quality" (Coye 2001)
Provider's objectives: what do they care about?
Heterogeneous providers and patients
Payers' objectives: what do they care about?
In systems with multiple players and mobile enrollees/patients
In systems with single payers
Insurers don't have/exert much control over clinical practice
Why Doesn't the Market Provide High Quality Care?
Decide which outcomes are important and how to measure them
Levels and/or improvement
Clearly identify goals
Design and implement interventions with attention to both the demand and supply sides
Evaluate and repeat
How Do We Improve Quality?
Recovery, restoration of function, and survival: the ultimate indicators of the effectiveness and quality of
medical care
Quality Measurement: Outcome
Lecture 11 - Health Care Quality
Wednesday, February 14, 2018
5:49 PM
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