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Drug Discount: Characteristics of Hospitals Participating and Not Participating in the 340B Program

The U.S. Government Accountability Office (GAO) released a report on the results of the study that analyzes the characteristics of hospitals that participate or do not participate in the 340B drug discount program. The GAO conducted this study due to the sixty percent increase from 2011 to 2016 in program participation, as well as the impact of Medicaid expansion on 340B participation.

The study was focused on three of the six hospital types, as they accounted for ninety five percent of U.S. hospitals participating in the 340B program. These three hospital types include:

  • Critical Access Hospitals (CAH)
  • Sole Community Hospitals (SCH)
  • General Acute Care Hospitals (Also Known As 340B DSH)

The full report can be found on the U.S. Government Accountability Office website, https://www.gao.gov/products/GAO-18-521R.

Posted by the AHA Resource Center, (312) 422-2050, rc@aha.org.

Investing in social services as a core strategy for health organizations: developing the business case

Social determinants of health — economic stability, neighborhood and physical environment, education, food, transportation, community and social context — can all impact health outcomes. With the growing emphasis on population and community health, how do hospitals and health systems make the business case for investing in social services to improve the health of their patients and communities?

A new report from the KPMG Governance Institute focuses on building the business case for social services investment by healthcare organizations of all types. After defining social services investment and its common barriers, the guide focuses on these six steps:

  1. Identifying what to invest in
  2. Determining what success is by selecting the care outcomes
  3. Measuring costs of care
  4. Determining the appropriate investment model
  5. Setting up the return on investment approach
  6. Sensitivity analysis and investment kick-off

The appendices include several short business case examples from different types of healthcare organizations.

Source: Investing in social services as a core strategy for healthcare organization: developing the business case – a practical guide to support health plan and provider investments in social services. March. 2018. http://www.kpmg-institutes.com/ content/dam/kpmg/governmentinstitute/pdf/2018/investing-social-services.PDF. Also available from the Commonwealth Fund at http://www.commonwealthfund.org/~/media/files/publications/other/2018/investingsocialservices_pdf.pdf

Posted by AHA Resource Center (312) 422-2050, rc@aha.org

FORECASTING: Discharges to decline 2 percent in 10 years

Our analytics are projecting a 2 percent decline in discharges over the next decade.  As a result, clients are challenging their perceived acute care footprint needs and increasingly reallocating resources to a variety of outpatient and virtual settings.”  Sg2

I always like to grab consultants’ forecasts – about nearly anything! – and feature them here.  However, it is doubly interesting when the forecasts are about hospital inpatient utilization.  This little snippet from Sg2 is part of an interesting conglomeration of opinion about the hospital of the future.   Becker’s Hospital Review interviewed 45 leaders with an interesting mix of affiliations – providers, consultants, vendors – about disruptors affecting the hospital field.

Source: Dyrda, L. (2017, July 17). 45 hospital and healthcare executives outline the hospital of the future. Becker’s Hospital Review.  Click here: https://www.beckershospitalreview.com/hospital-management-administration/45-hospital-and-healthcare-executives-outline-the-hospital-of-the-future.html  Posted by AHA Resource Center (312) 422-2003, rc@aha.org

DISRUPTION: PwC’s disruption profiler survey tool

This is a 16-question survey that allows an organization to take the temperature of disruptive forces in its industry.  The questions fall into the categories of:

  • Customer behavior
  • Production
  • Distribution
  • Competitors
  • Regulation

In a related analysis based on input from 268 executives in various industries, PwC found that CEOs report CUSTOMERS to be a more significant source of disruption than any of the other factors listed above.

Sources:

PricewaterhouseCoopers. (No date). Disruption profiler.  Click here: https://www.pwc.com/us/en/disruptionprofiler.html and,  PricewaterhouseCoopers. (2016?). The disruptors: How five key factors can make or break your business.  Click here: https://www.pwc.com/gx/en/ceo-agenda/pulse/the-disruptors.html  Posted by AHA Resource Center (312) 422-2050, rc@aha.org

DISRUPTORS: ZocDoc joins others on top 50 disruptor list

This is the 5th year that CNBC has developed a list of private companies that have proved to be innovative disruptors in their market space.  This list focuses on start-ups that are challenging established large corporate competitors.  The top 5 companies listed include:

  1. Airbnb
  2. Lyft
  3. WeWork
  4. Grab
  5. Uptake Technologies

There is a patient-care-related company on the list – ZOCDOC.  This company allows patients to book physician office appointments similar to what OpenTable does for restaurant reservations.

Source: Meet the 2017 CNBC disruptor 50 companies. (2017, May 16). CNBC.  Click here: https://www.cnbc.com/2017/05/16/the-2017-cnbc-disruptor-50-list-of-companies.html  Posted by AHA Resource Center (312) 422-2050, rc@aha.org

OPIOIDS: Drug overdose death rate doubles 2015 to 2016

These data on death rates from overdoses involving synthetic opioids other than methadone are drawn from the National Vital Statistics System, which is maintained by the U.S. National Center for Health Statistics (NCHS).  This includes fentanyl, fentanyl analogs and tramadol.

Synthetic Opioid Drug Overdose Death Rate (per 100,000 population)

  • 0.3  1999
  • 1.0  2013
  • 1.8  2014
  • 3.1  2015
  • 6.2 in 2016

Looking at the broader picture of drug overdose deaths from drugs of all types, the states with the highest overdose death rates in 2016 were: West Virginia, Ohio, New Hampshire and Pennsylvania.

Source: Hedegaard, H., Warner, M., and Minino, A.M. (2017, December). Drug overdose deaths in the United States, 1999-2016. NCHS Data Brief, 294.  Click herefor free full text: https://www.cdc.gov/nchs/data/databriefs/db294.pdf  Posted by AHA Resource Center (312) 422-2050, rc@aha.org

OPERATING ROOMS: What are the 10 most costly procedures?

Here are data from the federal government’s Healthcare Cost and Utilization Project (HCUP) that compare different surgical procedures according the expense incurred by hospitals in providing them.  Here are some notes about the following – these data are for INPATIENT procedures only.  The data are for what it COSTS the hospital for the patient’s entire stay, not what the hospital charges for the stay.  These are ALL-PAYER data, which is good – the data are not limited to the Medicare population, for example.  Finally, the data are based on first-listed operating room procedures.

Top 10 Most Costly Surgical Operations: Mean Cost Per Stay, US, 2014

  1. $52,000  Heart valve
  2. $41,900  Coronary artery bypass graft
  3. $35,000  Pacemaker/cardioverter/defibrillator
  4. $34,600  Incision/excision central nervous system
  5. $34,300  Small bowel resection
  6. $28,900  Spinal fusion
  7. $23,700  Colorectal resection
  8. $21,500  Percutaneous coronary angioplasty
  9. $20,800  Amputation, lower extremity
  10. $17,500  Debridement of wound, infection, burn

Source: McDermott, K.W., Freeman, W.J., and Elixhauser, A. (2017, December). Overview of operating room procedures during inpatient stays in U.S. hospitals, 2014. Statistical Brief. Click here for FREE full text: https://hcup-us.ahrq.gov/reports/statbriefs/sb233-Operating-Room-Procedures-United-States-2014.jsp  Posted by AHA Resource Center (312) 422-2050, rc@aha.org