Social Determinants of Health, Quality of Public Health Data, and Health Equity in the United States.

In recent years, increasing attention has been paid to the impact social determinants of health (SDOH) can have on health equity in the United States. In this essay, we provide a framework for considering the upstream structural factors that affect the distribution of SDOH as well as the downstream consequences for individuals and groups. Improving health equity in the United States will require multiple policy streams, each requiring comprehensive data for policy development, implementation, and evaluation. Although much progress has been made in improving these data, there remain considerable gaps and opportunities for improvement. (Am J Public Health. 2023;113(12):1301-1308. https://doi.org/10.2105/AJPH.2023.307423).

Medicare Durable Medical Equipment Competitive Bidding Program: An Evaluation.

BACKGROUND: The Centers for Medicare and Medicaid Services (CMS) implemented the Medicare durable medical equipment (DME) Competitive Bidding Program (CBP) in 2011. Since then, concerns have been raised regarding access to equipment and adverse health outcomes. OBJECTIVES: The aim was to evaluate whether the CBP was associated with changes in spending, utilization, and adverse health events (emergency department visits, hospitalizations, and falls). RESEARCH DESIGN: A comparative interrupted time series over 8 years was used to compare Round1 and Round2 bidding to nonbidding areas. Medicare fee for services claims were aggregated at the quarterly Metropolitan Statistical Area (MSA) level from 2009 to 2016. RESULTS: For the 3 evaluated DME (continuous positive airway pressure machines, oxygen supplies, and walkers), we found that implementation of the Medicare CBP was associated with reductions in per capita spending without changes in DME utilization or adverse health outcomes in CBP areas compared with nonbidding areas. For example, the slope change in the proportion of oxygen supplies purchasers in Round1 areas after implementation of Round1 was similar to the slope change in nonbidding areas (-0.0002; 95% CI: -0.0004, 0.0001; P=0.189). The difference in slope changes of emergency department visits and hospitalization in Round1 areas for oxygen supplies were (-0.0004; 95% CI: -0.0016, 0.0008; P=0.514) and (0.0002; 95% CI: -0.0010, 0.0014; P=0.757), respectively. Findings in Round2 areas after implementation of Round2 were similar to findings in Round1 areas. CONCLUSIONS: The Medicare DME CBP lowered Medicare expenditures while not reducing beneficiary access or increasing adverse outcomes.

Effect of a Hospital-wide Measure on the Readmissions Reduction Program.

BACKGROUND: The Hospital Readmissions Reduction Program penalizes hospitals that have high 30-day readmission rates across specific conditions. There is support for changing to a hospital-wide readmission measure to broaden hospital eligibility and provide incentives for improvement across more conditions. METHODS: We used Medicare claims from 2011 through 2013 to evaluate the number of hospitals that were eligible for penalties, in that they met a volume threshold of 25 admissions over a 3-year period for a specific condition or 25 admissions over a 1-year period for the cohorts included in the hospital-wide measure. We estimated the expected effects that changing from the condition-specific readmission measures to a hospital-wide measure would have on average penalties for safety-net hospitals (i.e., hospitals that treat a large proportion of low-income patients) and other hospitals. RESULTS: Our sample included 6,807,899 admissions for the hospital-wide measure and 4,392,658 admissions for the condition-specific measures. Of 3443 hospitals, 688 were considered to be safety-net hospitals. Changing to the hospital-wide measure would result in 76 more hospitals being eligible to receive penalties. The hospital-wide measure would increase penalties (mean [±SE] Medicare payment reductions across all hospitals) from 0.42±0.01% to 0.89±0.01% of Medicare base diagnosis-related-group payments. It would also increase the disparity in penalties between safety-net hospitals and other hospitals from -0.03±0.02 to 0.41±0.06 percentage points. CONCLUSIONS: A transition to a hospital-wide readmission measure would only modestly increase the number of hospitals eligible for penalties and would substantially increase the penalties for safety-net hospitals.

Readmissions, Observation, and the Hospital Readmissions Reduction Program.

BACKGROUND: The Hospital Readmissions Reduction Program, which is included in the Affordable Care Act (ACA), applies financial penalties to hospitals that have higher-than-expected readmission rates for targeted conditions. Some policy analysts worry that reductions in readmissions are being achieved by keeping returning patients in observation units instead of formally readmitting them to the hospital. We examined the changes in readmission rates and stays in observation units over time for targeted and nontargeted conditions and assessed whether hospitals that had greater increases in observation-service use had greater reductions in readmissions. METHODS: We compared monthly, hospital-level rates of readmission and observation-service use within 30 days after hospital discharge among Medicare elderly beneficiaries from October 2007 through May 2015. We used an interrupted time-series model to determine when trends changed and whether changes differed between targeted and nontargeted conditions. We assessed the correlation between changes in readmission rates and use of observation services after adoption of the ACA in March 2010. RESULTS: We analyzed data from 3387 hospitals. From 2007 to 2015, readmission rates for targeted conditions declined from 21.5% to 17.8%, and rates for nontargeted conditions declined from 15.3% to 13.1%. Shortly after passage of the ACA, the readmission rate declined quickly, especially for targeted conditions, and then continued to fall at a slower rate after October 2012 for both targeted and nontargeted conditions. Stays in observation units for targeted conditions increased from 2.6% in 2007 to 4.7% in 2015, and rates for nontargeted conditions increased from 2.5% to 4.2%. Within hospitals, there was no significant association between changes in observation-unit stays and readmissions after implementation of the ACA. CONCLUSIONS: Readmission trends are consistent with hospitals' responding to incentives to reduce readmissions, including the financial penalties for readmissions under the ACA. We did not find evidence that changes in observation-unit stays accounted for the decrease in readmissions.

Using a social capital framework to enhance measurement of the nursing work environment.

AIM: To develop, field test and analyse a social capital survey instrument for measuring the nursing work environment. BACKGROUND: The concept of social capital, which focuses on improving productive capacity by examining relationships and networks, may provide a promising framework to measure and evaluate the nurse work environment in a variety of settings. METHODS: A survey instrument for measuring social capital in the nurse work environment was developed by adapting the World Bank's Social Capital - Integrated Questionnaire (SC-IQ). Exploratory factor analysis and multiple regression analyses were applied to assess the properties of the instrument. RESULTS: The exploratory factor analysis yielded five factors that align well with the social capital framework, while reflecting unique aspects of the nurse work environment. CONCLUSION: The results suggest that the social capital framework provides a promising context to assess the nurse work environment. Further work is needed to refine the instrument for a diverse range of health-care providers and to correlate social capital measures with quality of patient care. IMPLICATIONS FOR NURSING MANAGEMENT: Social capital measurement of the nurse work environment has the potential to provide managers with an enhanced set of tools for building productive capacity in health-care organisations and achieving desired outcomes.

Effect of Competition on Generic Drug Prices.

BACKGROUND: Promoting substitution of lower priced generics for brand drugs once the market exclusivity period for the latter expires is a key component of the US strategy for achieving value in prescription drugs. OBJECTIVE: This study examines the effect of generic competition on drug prices by estimating the effect of entry of generic drugs, following a brand's loss-of-exclusivity (LOE), on the average price of competing drugs. METHODS: Using the Medicare Part D drug event (PDE) data from 2007 to 2018, we utilize both fixed effects and random effects at the drug level to estimate the relationship of competitors and prices within each drug while controlling for factors across drugs. We follow a drug 24 months and 36 months after first generic entry to examine whether the relationship between number of suppliers and price would change over time. We also test the hypothesis that drugs with more recent LOE might face less competition than those with earlier LOE. RESULTS: We find that drug prices fall with increasing number of competitors. Prices decline by 20% in markets with about three competitors (the expected price ratio of current generic to pre-generic entry brand average prices is 80%). Prices continue to decline by 80% relative to the pre-generic entry price in markets of ten or more competitors (the expected price ratio is about 30% following 2 years after entry, dropping to 20% following 3 years after entry). We also find that the impact of competition on relative prices is similar for generic drugs first entering the market in either 2007-11 or 2012-15. CONCLUSION: Promoting generic entry and maintaining effective provider competition are effective methods for containing drug prices.

COVID-19-Related Deaths And Excess Deaths Among Medicare Fee-For-Service Beneficiaries.

Millions of Americans have been infected with SARS-CoV-2, and more than 575,000 had died as of early May 2021. Understanding who are the most vulnerable populations for COVID-19 mortality and excess deaths is critical, especially as the US prioritizes vaccine distribution. Using Medicare administrative data, we found that beneficiaries residing in nursing homes, the oldest beneficiaries, members of racial/ethnic minority groups, beneficiaries with multiple comorbid conditions, and beneficiaries who are dually eligible for Medicare and Medicaid were disproportionately likely to die after infection with SARS-CoV-2. As the pandemic developed, Medicare data were quickly adapted to provide analyses and inform the nation's response to COVID-19. Similar data for the rest of the population, however, are not readily available. Developing policies and methods around data collection and access will be important to address the consequences of future pandemics and other health emergencies.

Understanding Medicare ACO Adoption in the Context of Market Factors.

Medicare Accountable Care Organizations (ACOs) have achieved high-quality performance and recent cost savings, but little is known about how local market conditions influence provider adoption. The authors describe physician practice participation in Medicare ACOs at the county level and use adjusted logistic regression to assess the association between ACO presence and 3 characteristics hypothesized to influence ACO formation: physician market concentration, Medicare Advantage (MA) penetration, and commercial health insurance market concentration. Analyses are repeated on urban and rural county subgroups to examine geographic differences in ACO adoption. Practice participation in ACOs grew 19% nationally from 5.4% to 6.4% of practices between 2015 to 2017, but participation lagged in the West and rural counties, the latter of which had relatively concentrated physician markets and low MA penetration. After controlling for urban location, population density, and other covariates, ACO presence in a county was independently associated with less concentrated physician markets and moderate MA penetration but not commercial insurance concentration. The evidence suggests that Medicare ACO programs have continued appeal to physician practices, but additional engagement strategies may be needed to expand adoption in rural areas. In addition, greater practice competition and MA experience may facilitate ACO adoption. These insights into the relationship between market conditions and ACO participation have important implications for policy efforts to accelerate Medicare payment transformation.

The Five-Star Skilled Nursing Facility Rating System and Care of Disadvantaged Populations.

OBJECTIVES: To examine characteristics and locations of high- and low-quality skilled nursing facilities (SNFs) and whether certain vulnerable individuals were differentially discharged to facilities with lower quality ratings. DESIGN: Retrospective observational study. SETTING: Medicare-certified SNFs providing postacute care. PARTICIPANTS: SNF stays (N=1,195,166) of Medicare beneficiaries aged 65 and older admitted to 14,033 SNFs within 2 days of hospital discharge. MEASUREMENTS: We used Medicare claims from October 2013 to September 2014 and SNF 5-star ratings published on Nursing Home Compare. We describe the characteristics and populations of facilities according to quality, and the location of low (1 star) and high (5 stars) quality facilities. We used logistic regression models to estimate odds of admission to a low-quality facility after hospital discharge according to race, ethnicity, dual Medicare-Medicaid enrollment, functional status, discharge from a safety-net or low-quality hospital, and residence in a county with more low-quality SNFs. RESULTS: More than one-fifth (22.2%) of the facilities had a 5-star (high quality) rating, and 15.9% had a one-star (low quality) rating. Low-quality facilities were more likely to be in the south (44%), for profit (85%), and larger (>70 beds (86%)). Dual enrollment was the strongest predictor of admission to a 1-star facility (odds ratio (OR) = 1.53, 95% confidence interval (CI) = 1.51-1.55), although racial or ethnic minority status (black: OR = 1.25, 95% CI = 1.22-1.28; Hispanic: OR = 1.10, 95% CI = 1.06-1.14) and geographic prevalence of facilities (for a 10% increase in 1-star beds located in the county of individual's residence: OR = 1.27, 95% CI = 1.26-1.27) were also significant predictors. CONCLUSION: Vulnerable groups are more likely to be discharged to lower-quality facilities for postacute care. Policy-makers should monitor disparities in SNF quality. J Am Geriatr Soc 67:108-114, 2019.

Understanding Medicare Hospital Readmission Rates And Differing Penalties Between Safety-Net And Other Hospitals.

Since the implementation of Medicare's Hospital Readmissions Reduction Program in 2012, concerns have been raised about the effect its payment penalties for excess readmissions may have on safety-net hospitals. A number of policy solutions have been proposed to ensure that the program does not unfairly penalize safety-net institutions, which treat a disproportionate number of patients with low socioeconomic status. We examined the extent to which the program's current risk-adjustment factors, measures of patient socioeconomic status, and hospital-level factors explain the observed differences in readmission rates between safety-net and other hospitals. Our analyses suggest that patient socioeconomic status can explain some of the difference in readmission rates but that unmeasured factors such as hospitals' performance may also play a role. We also found that safety-net hospitals have experienced only slightly higher readmission penalties under the program than other hospitals have. Together, these findings suggest the need for a careful evaluation of policy alternatives that factor socioeconomic status into penalty calculations for excess readmissions to determine whether such alternatives could have a significant impact on penalties while remaining consistent with overall objectives for delivery system transformation.

Hospice Use, Hospitalization, and Medicare Spending at the End of Life.

OBJECTIVES: Prior studies associate hospice use with reduced hospitalization and spending at the end of life based on all Medicare hospice beneficiaries. In this study, we examine the impact of different lengths of hospice care and nursing home residency on hospital use and spending prior to death across 5 disease groups. METHODS: We compared inpatient hospital days and Medicare spending during the last 6 months of life using hospice versus propensity matched non-hospice beneficiaries who died in 2010, were enrolled in fee for service Medicare throughout the last 2 years of life, and were in at least 1 of 5 disease groups. Comparisons were based on length of hospice use and whether the decedent was in a nursing home during the seventh month prior to death. We regressed a categorical measure of hospice days on outcomes, controlling for observed patient characteristics. RESULTS: Hospice use over 2 weeks was associated with decreased hospital days (1-5 days overall, with greater decreases for longer hospice use) for all beneficiaries; spending was $900-$5,000 less for hospice use of 31-90 days for most beneficiaries not in nursing homes, except beneficiaries with Alzheimer's. Overall spending decreased with hospice use for beneficiaries in nursing homes with lung cancer only, with a $3,500 reduction. DISCUSSION: The Medicare hospice benefit is associated with reduced hospital care at the end of life and reduced Medicare expenditures for most enrollees. Policies that encourage timely initiation of hospice and discourage extremely short stays could increase these successes while maintaining program goals.

Relationships Among Performance Measures for Medicare Managed Care Plans.

The Health Care Financing Administration (HCFA) has relied primarily on the Health Employer Data Information Set (HEDIS®), the Consumer Assessment of Health Plans Study (CAHPS®), and the Medicare Health Outcomes Survey (HOS) to track health plan performance. However, many relationships among these measures are unknown. We found significant relationships between four HEDIS® measures and many items in the CAHPS® measure as well as items in HOS concerning beneficiary general health ratings. Our study suggests that interpretation of performance data is improved by integrating access, effectiveness of care, beneficiary experience, health status, and risk measures into an analytic framework.

An Overview: The Future of Plan Performance Measurement.

The papers featured in this issue of the Health Care Financing Review were presented at the "Conference on the Future of Plan Performance Measurement." This conference was held on May 2-3, 2000, in Towson, Maryland and was sponsored by the Health Care Financing Administration under a contract with the Barents Group of KPMG Consulting, Inc. in affiliation with Harvard Medical School, the MEDSTAT Group, and Westat. The conference was intended to inform stakeholders involved in Medicare health plans on future trends in the development and use of performance measures.

Beneficiary reported experience and voluntary disenrollment in Medicare managed care.

Disenrollment rates have often been used as indicators of health plan quality, because they are readily available and easily understood by purchasers, health plans, and consumers. Over the past few years, however, indicators that more directly measure technical quality and consumer experiences with care have become available. In this observational study, we examined the relationship between voluntary disenrollment rates from Medicare managed care (MMC) plans and other measures of health plan quality. The results demonstrate that voluntary disenrollment rates are strongly related to direct measures of patient experiences with care and are an important complement to other measures of health plan performance.

Indirect medical education and disproportionate share adjustments to Medicare inpatient payment rates.

The indirect medical education (IME) and disproportionate share hospital (DSH) adjustments to Medicare's prospective payment rates for inpatient services are generally intended to compensate hospitals for patient care costs related to teaching activities and care of low income populations. These adjustments were originally established based on the statistical relationships between IME and DSH and hospital costs. Due to a variety of policy considerations, the legislated levels of these adjustments may have deviated over time from these "empirically justified levels," or simply, "empirical levels." In this paper, we estimate the empirical levels of IME and DSH using 2006 hospital data and 2009 Medicare final payment rules. Our analyses suggest that the empirical level for IME would be much smaller than under current law-about one-third to one-half. Our analyses also support the DSH adjustment prescribed by the Affordable Care Act of 2010 (ACA)--about one-quarter of the pre-ACA level. For IME, the estimates imply an increase in costs of 1.88% for each 10% increase in teaching intensity. For DSH, the estimates imply that costs would rise by 0.52% for each 10% increase in the low-income patient share for large urban hospitals.