Impact of the 2013 National Rollout of CMS Competitive Bidding Program: The Disruption Continues.

OBJECTIVE: Use of glucose monitoring is essential to the safety of individuals with insulin-treated diabetes. In 2011, the Centers for Medicare & Medicaid Services (CMS) implemented the Medicare Competitive Bidding Program (CBP) in nine test markets. This resulted in a substantial disruption of beneficiary access to self-monitoring of blood glucose (SMBG) supplies and significant increases in the percentage of beneficiaries with either reduced or no acquisition of supplies. These reductions were significantly associated with increased mortality, hospitalizations, and costs. The CBP was implemented nationally in July 2013. We evaluated the impact of this rollout to determine if the adverse outcomes seen in 2011 persisted. RESEARCH DESIGN AND METHODS: This longitudinal study followed 529,627 insulin-treated beneficiaries from 2009 through 2013 to assess changes in beneficiary acquisition of testing supplies in the initial nine test markets (TEST, n = 43,939) and beneficiaries not affected by the 2011 rollout (NONTEST, n = 485,688). All Medicare beneficiary records for analysis were obtained from CMS. RESULTS: The percentages of beneficiaries with partial/no SMBG acquisition were significantly higher in both the TEST (37.4%) and NONTEST (37.6%) groups after the first 6 months of the national CBP rollout, showing increases of 48.1% and 60.0%, respectively (both P < 0.0001). The percentage of beneficiaries with no record for SMBG acquisition increased from 54.1% in January 2013 to 62.5% by December 2013. CONCLUSIONS: Disruption of beneficiary access to their prescribed SMBG supplies has persisted and worsened. Diabetes testing supplies should be excluded from the CBP until transparent, science-based methodologies for safety monitoring are adopted and implemented.

On the role of environmental corruption in healthcare infrastructures: An empirical assessment for Italy using DEA with truncated regression approach.

OBJECTIVES: This paper investigates empirically whether the institutional features of the contracting authority as well as the level of 'environmental' corruption in the area where the work is localised affect the efficient execution of public contracts for healthcare infrastructures. METHODS: A two-stage Data Envelopment Analysis (DEA) is carried out based on a sample of Italian public contracts for healthcare infrastructures during the period 2000-2005. First, a smoothed bootstrapped DEA estimator is used to assess the relative efficiency in the implementation of each single infrastructure contract. Second, the determinants of the efficiency scores variability are considered, paying special attention to the effect exerted by 'environmental' corruption on different types of contracting authorities. RESULTS: Our results show that the performance of the contracts for healthcare infrastructures is significantly affected by 'environmental' corruption. Furthermore, healthcare contracting authorities are, on average, less efficient and the negative effect of corruption on efficiency is greater for this type of public procurers. CONCLUSIONS: The policy recommendation coming out of the study is to rely on 'qualified' contracting authorities since not all the public bodies have the necessary expertise to carry on public contracts for healthcare infrastructures efficiently.

Products purchased from family farming for school meals in the cities of Rio Grande do Sul.

OBJECTIVE: This study aims to verify the adequacy profile of the cities of the State of Rio Grande do Sul, Brazil, in relation to the purchase of products of family farming by the Programa Nacional de Alimentação Escolar (PNAE - National Program of School Meals). METHODS: This is a quantitative descriptive study, with secondary data analysis (public calls-to-bid). The sample consisted of approximately 10% (n = 52) of the cities in the State, establishing a representation by mesoregion and size of the population. We have assessed the percentage of food purchased from family farming, as well as the type of product, requirements of frequency, delivery points, and presence of prices in 114 notices of public calls-to-bid, in 2013. RESULTS: Of the cities analyzed, 71.2% (n = 37) reached 30% of food purchased from family farming. Most public calls-to-bid demanded both products of plant (90.4%; n = 103) and animal origin (79.8%; n = 91). Regarding the degree of processing, fresh products appeared in 92.1% (n = 105) of the public calls-to-bid. In relation to the delivery of products, centralized (49.1%; n = 56) and weekly deliveries (47.4%; n = 54) were the most described. Only 60% (n = 68) of the public calls-to-bid contained the price of products. CONCLUSIONS: Most of the cities analyzed have fulfilled what is determined by the legislation of the PNAE. We have found in the public calls-to-bid a wide variety of food, both of plant and animal origin, and most of it is fresh. In relation to the delivery of the products, the centralized and weekly options prevailed. OBJETIVO: Verificar o perfil de adequação dos municípios do Rio Grande do Sul no que tange à aquisição de produtos da agricultura familiar pelo Programa Nacional de Alimentação Escolar. MÉTODOS: Trata-se de estudo quantitativo descritivo, com análise de dados secundários (chamadas públicas). A amostra foi composta por aproximadamente 10% (n = 52) dos municípios do estado, tomando-se o cuidado de estabelecer uma representatividade por mesorregião e tamanho da população. Foi avaliado o percentual destinado às compras de gêneros alimentícios da agricultura familiar, bem como o tipo de produto, exigências de periodicidade, pontos de entrega e presença de preços em 114 editais de chamadas públicas, no ano de 2013. RESULTADOS: Dos municípios analisados, 71,2% (n = 37) atingiram 30% de gêneros alimentícios oriundos de agricultura familiar. A maioria das chamadas públicas demandou tanto produtos de origem vegetal (90,4%; n = 103) como de origem animal (79,8%; n = 91). Quanto ao grau de processamento dos alimentos, os produtos in natura apareceram em 92,1% (n = 105) das chamadas públicas. Em relação à entrega dos produtos, a centralizada (49,1%; n = 56) e as entregas semanais (47,4%; n = 54) foram as mais descritas. Apenas 60% (n = 68) das chamadas públicas continham preço dos produtos. CONCLUSÕES: A maioria dos municípios analisados cumpriu o determinado pela legislação do Programa Nacional de Alimentação Escolar. Encontrou-se nas chamadas públicas uma grande diversidade de alimentos, tanto de origem vegetal quanto de origem animal, sendo a maior parte deles in natura. Em relação à entrega dos produtos, prevaleceu a centralizada e a semanal.

Products purchased from family farming for school meals in the cities of Rio Grande do Sul / Aquisição de produtos da agricultura familiar para alimentação escolar em municípios do Rio Grande do Sul

ABSTRACT OBJECTIVE This study aims to verify the adequacy profile of the cities of the State of Rio Grande do Sul, Brazil, in relation to the purchase of products of family farming by the Programa Nacional de Alimentação Escolar (PNAE - National Program of School Meals). METHODS This is a quantitative descriptive study, with secondary data analysis (public calls-to-bid). The sample consisted of approximately 10% (n = 52) of the cities in the State, establishing a representation by mesoregion and size of the population. We have assessed the percentage of food purchased from family farming, as well as the type of product, requirements of frequency, delivery points, and presence of prices in 114 notices of public calls-to-bid, in 2013. RESULTS Of the cities analyzed, 71.2% (n = 37) reached 30% of food purchased from family farming. Most public calls-to-bid demanded both products of plant (90.4%; n = 103) and animal origin (79.8%; n = 91). Regarding the degree of processing, fresh products appeared in 92.1% (n = 105) of the public calls-to-bid. In relation to the delivery of products, centralized (49.1%; n = 56) and weekly deliveries (47.4%; n = 54) were the most described. Only 60% (n = 68) of the public calls-to-bid contained the price of products. CONCLUSIONS Most of the cities analyzed have fulfilled what is determined by the legislation of the PNAE. We have found in the public calls-to-bid a wide variety of food, both of plant and animal origin, and most of it is fresh. In relation to the delivery of the products, the centralized and weekly options prevailed.

RESUMO OBJETIVO Verificar o perfil de adequação dos municípios do Rio Grande do Sul no que tange à aquisição de produtos da agricultura familiar pelo Programa Nacional de Alimentação Escolar. MÉTODOS Trata-se de estudo quantitativo descritivo, com análise de dados secundários (chamadas públicas). A amostra foi composta por aproximadamente 10% (n = 52) dos municípios do estado, tomando-se o cuidado de estabelecer uma representatividade por mesorregião e tamanho da população. Foi avaliado o percentual destinado às compras de gêneros alimentícios da agricultura familiar, bem como o tipo de produto, exigências de periodicidade, pontos de entrega e presença de preços em 114 editais de chamadas públicas, no ano de 2013. RESULTADOS Dos municípios analisados, 71,2% (n = 37) atingiram 30% de gêneros alimentícios oriundos de agricultura familiar. A maioria das chamadas públicas demandou tanto produtos de origem vegetal (90,4%; n = 103) como de origem animal (79,8%; n = 91). Quanto ao grau de processamento dos alimentos, os produtos in natura apareceram em 92,1% (n = 105) das chamadas públicas. Em relação à entrega dos produtos, a centralizada (49,1%; n = 56) e as entregas semanais (47,4%; n = 54) foram as mais descritas. Apenas 60% (n = 68) das chamadas públicas continham preço dos produtos. CONCLUSÕES A maioria dos municípios analisados cumpriu o determinado pela legislação do Programa Nacional de Alimentação Escolar. Encontrou-se nas chamadas públicas uma grande diversidade de alimentos, tanto de origem vegetal quanto de origem animal, sendo a maior parte deles in natura. Em relação à entrega dos produtos, prevaleceu a centralizada e a semanal.

Uma análise da dispensa pública do metilfenidato no Brasil: o caso do Espírito Santo / An analysis of public dispensing of methylphenidate in Brazil: the case of Espirito Santo state

A expansão do transtorno do déficit de atenção e hiperatividade (TDAH) e o crescimento global do consumo do psicoestimulante metilfenidato, indicado para seu tratamento, são desafios atuais de saúde pública em várias partes do mundo. Esta pesquisa visou investigar a dispensa pública do cloridrato de metilfenidato pelo Sistema Único de Saúde brasileiro (SUS), com ênfase no Estado do Espírito Santo (ES). Realizou-se um mapeamento das políticas de assistência farmacêutica das unidades federativas do país, através de contatos telefônicos e consultas nos seus sites oficiais. Verificou-se que entre as Assistências Farmacêuticas estaduais do Brasil, apenas quatro possuem listas padronizadas de dispensa de medicamentos que incluem o metilfenidato, estando entre elas a do ES. As características e variações da demanda e consumo do metilfenidato, registradas nas Farmácias Cidadãs do ES entre os anos de 2009 e 2011, foram analisadas em conjunto com informações colhidas em três entrevistas semiestruturadas com profissionais da Gerência de Assistência Farmacêutica. Constatou-se expressivo aumento no consumo do medicamento via SUS no período analisado, com distribuição assimétrica entre as oito Farmácias Cidadãs do estado. Tais dados destacam a necessidade de uma análise cuidadosa, atenta aos múltiplos aspectos que interferem tanto na constituição do diagnóstico quanto na demanda por seu tratamento, principalmente no que tange ao acompanhamento da dispensa pública do metilfenidato. O estudo se faz fundamental a fim de embasar a formulação de políticas e o funcionamento de serviços voltados para o TDAH, no contexto da saúde pública.

The Attention Deficit Hyperactivity Disorder (ADHD) expansion and the growth of the consumption of methylphenidate, commonly indicated for its treatment, are current challenges the public health sector in many parts of the world. This research aimed to investigate the public dispensing of methylphenidate hydrochloride by the Brazilian Unified Health System (SUS), stressing the case of the state of Espirito Santo (ES). A map of pharmaceutical care Policies in the Brazilian Federal Units was made based on telephone calls and consultations at their official websites. It was found that among all state's Pharmaceutical Care Management of the country only 4, including the state of ES, have standardized lists for medicine dispensing in wich methylphenidate is included. The characteristics and variations in demand and consumption of methylphenidate registered in public pharmacies of ES between 2009 and 2011 were analyzed, in conjunction with information gathered in three semi-structured interviews with professionals in the Pharmaceutical Care Management. A significant increase in the consumption of this medicine via SUS was found throughout the analyzed period, with an asymmetric distribution between the eight public pharmacies of ES. These data highlight the need for careful analysis, focusing on the multiple aspects that interfere both in the formation of the diagnosis and in the demand for treatment, mainly in relation to the monitoring of public dispensation of methylphenidate. The study is essential in the public health context in order to support the policies formulation and the functioning of public services for ADHD.

[Foreign dentures and dental tourism--willingness-to-pay and factors influencing the demand for foreign dental prosthesis in Germany]. / Auslandszahnersatz und Dentaltourismus--Zahlungsbereitschaft und Einflussfaktoren auf die Nachfrage nach ausländischem Zahnersatz in Deutschland.

With the progressive realisation of the single European market, public interest has been directed towards cross-border healthcare services to an increasing extent. More and more dentures are being imported into Germany from foreign countries. Furthermore, patients are becoming ever more mobile, travelling to other countries to receive prosthetic treatment from dentists. The objective of this evaluation was to determine by means of a dedicated questionnaire the patients' individual preferences for foreign dentures and the potential savings. 1 368 individuals between the ages of 30 and 75 years were interviewed within a representative omnibus survey. The evaluation of the individual willingness-to-pay included 4 treatment scenarios, which were assessed by the participants in a "bidding game". Participants could choose between a "crown scenario" and an "implant scenario", both with the subcategories "foreign dentures" and "dental tourism". The direct comparison revealed a preference for the "foreign dentures" option over "dental tourism". Average willingness-to-pay for the dental tourism option in the crown scenario was calculated as 80 Euro, and in the implant scenario as 280 Euro less in comparison with the willingness-to-pay for the foreign dentures option. The willingness to switch to a less expensive dentist was one of the main determinants in the causal explanation for the variance in willingness-to-pay. Quality proved to be the decisive criterion and was indicated by 92.4% participants. A lower price for dentures played a subordinate role and was only stated as the decisive factor by 31.1% participants. In conclusion, the results clearly indicate that the decision for or against foreign dentures and the extent of willingness-to-pay depends on a range of criteria, of which "price" is only one and not the decisive factor.

Minority business bidding for local government contracts: the complexity of availability.

While minority-business enterprises (MBEs) have gained some access to local government contracts during the last three decades, these firms continue to receive a small share of local government contract spending relative to the number of available firms. Researchers have suggested two general explanations for the low representation of MBEs in contract awards: (1) lack of qualifications and capacity among MBEs, and (2) public and private discrimination against MBEs in contracting processes. This study on prime contract opportunities in a Northern central city and county with a large minority population finds that low bid rates greatly contribute to the low MBE shares of prime contracts and that bidding is reduced by both local government processes and characteristics of the firms. Some implications of these findings are that local governments need to: (1) monitor MBE shares of prime contract bids by size of contract and use share of bids as one measure of program and organizational effectiveness; (2) identify MBEs that are qualified for prime contracts and encourage and help interested firms to submit competitive bids; and (3) ensure that local government policies and practices do not diminish access to information about prime contract opportunities for qualified and interested minority firms. Another implication is that bidders lists should not be a primary basis for determining MBE availability, since many qualified and interested MBEs do not bid because of perceived barriers in local government.

Managed competition versus industrial purchasing of health care among the Fortune 500.

The theory of managed competition has found favor with many health policy analysts and academic economists alike. Three characteristics--consumer choice, defined contribution, and dissemination of information--signal managed competition strategy. By requiring private employers to provide their employees with a choice of health carriers, a fixed-dollar strategy (defined contribution), and quality information to make appropriate choices among carriers, managed competition offers to remedy imperfections in both the consumer and provider sides of the market for health insurance. In an extensive survey of health care purchasing practices among Fortune 500 companies we found that major companies are not using the managed competition approach to health care purchasing. Instead, most of the companies surveyed are purchasing health care in the same way as they do other inputs to production--a pattern we call industrial purchasing.

How managed care organizations develop selective contracting networks for psychiatric inpatient care: a Massachusetts case study.

Medicaid agencies recently have adopted selective contracting to control use and costs of publicly financed behavioral health care. This case study describes formation of an inpatient network for serving psychiatrically disabled Medicaid beneficiaries in Massachusetts. Network formation is seen as a two-stage process: hospitals first decide to bid for a contract, and form a pool from which the managed care organization chooses hospitals. We used logit models to predict how hospital experience with Medicaid patients, competition, prior reimbursement rates, and geographic distribution affected these two stages. Hospitals are more likely to bid if they have treated more psychiatric inpatients and more disabled Medicaid inpatients receiving Supplemental Security Income. Managed care organizations take into account hospitals' experience with Medicaid patients and geographic dispersion, but not prior reimbursement rates.

Competition as a means of procuring public services. Lessons for the UK from the US experience.

Competition is now widely used as the means of choosing the providers of essential public services in the USA and the UK. Many different approaches are found in the USA and there are useful lessons for the UK. With particular reference to mental health and substance abuse services, describes the effects of using competitive tendering on users, providers, purchasers and citizens and examines the problems of specification, transaction costs, the use of consultants, supply, the level playing field, trust, innovation, local accessibility and accountability. Ends with discussion of co-operation and collaboration and the emergence of monopolies and integrated delivery systems in the USA and concludes by finding politics and political decision making of overriding importance.

Contracting between public and private providers: a survey of mental health services in California.

This paper reports on a public authority's decision to "make" or "buy" mental health services. Data come from key informant interviews with California county contract or program managers. The questionnaire measures the extent of contracting and the importance of factors that are hypothesized to affect the relative costs of contracting. The percent of contracting by programs ranges from zero to 100, averaging 41%. Sixty-two percent of rural programs perceive little or no competition for public mental health contracts, and contract significantly less than urban programs. The extent of contracting is related to economic and public organizational factors.

Developing Medicare competitive bidding: a study of clinical laboratories.

Competitive bidding to derive Medicare fees promises several advantages over administered fee systems. The authors show how incentives for cost savings, quality, and access can be incorporated into bidding schemes, and they report on a study of the clinical laboratory industry conducted in preparation for a bidding demonstration. The laboratory industry is marked by variable concentration across geographic markets and, among firms themselves, by social and economic heterogeneity. The authors conclude that these conditions can be accommodated by available bidding design options and by careful selection of bidding markets.

A computer model for predicting the demand for end-stage renal failure (ESRF) treatment, contract setting and monitoring.

BACKGROUND: The high cost of end-stage renal failure (ESRF) treatment, and the anticipated need for expansion of the service at a time of limited resources for health care expenditure, means that careful planning of such an expansion is necessary. This needs to inform the setting and monitoring of contracts between commissioning organizations and providers of treatment. A spreadsheet based computer model is described which fulfils both of these needs. METHODS: A computer programme was written to run on a commonly available spreadsheet in order to predict the demand for ESRF treatment, set contracts, and monitor in year performance. RESULTS: The model described has facilitated contracting for ESRF services. Purchasers have used it to examine various planning scenarios, while the provider unit has used it to support a business case for further development. Using this model, the predictions for the Sheffield resident population are that the total number of patients on the ESRF treatment programme will increase from a mid-year average of 204 patients in the year 1994-95 to 266 patients in the year 1999-2000, while costs increased over the same time period from 2.37 million pounds to 2.78 million pounds. CONCLUSIONS: A computer spreadsheet based model described is a useful tool for predicting demand, and setting and monitoring contracts, for treatment for ESRF. Problems with the model and potential further developments are discussed.

A model for making project funding decisions at the National Cancer Institute.

This paper describes the development of a model for making project funding decisions at The National Cancer Institute (NCI). The American Stop Smoking Intervention Study (ASSIST) is a multiple-year, multiple-site demonstration project, aimed at reducing smoking prevalence. The initial request for ASSIST proposals was answered by about twice as many states as could be funded. Scientific peer review of the proposals was the primary criterion used for funding decisions. However, a modified Delphi process made explicit several criteria of secondary importance. A structured questionnaire identified the relative importance of these secondary criteria, some of which we incorporated into a composite preference function. We modeled the proposal funding decision as a zero-one program, and adjusted the preference function and available budget parametrically to generate many suitable outcomes. The actual funding decision, identified by our model, offers significant advantages over manually generated solutions found by experts at NCI.