Hospital cost control legislation: Yossarian's revenge.
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Beginning 1997, considerable cost-cutting constraints have become effective which are entirely founded by fiscal reasons. The resulting restrictions will not remain without consequences for care and supply of patients with chronic diseases and handicaps as well as for the entire rehabilitation system itself. The expected cuts are so serious that they will also affect further rehabilitation prospects and objectives. The extent of the austerity measures-especially the extent of budget capping-is running counter to the factual development of needs.
Preoperative deposition auf autologous blood requires a strenuous effort for its initiation and operation. K.R.A.F.T.A.K.T. (literal translation: strenuous effort) became therefore the acronym for the program realized at this institution; it stands for: K = communication between patient and his physicians (primary care, surgeon, blood banker) R = direction of the program through the primary care physician (who does what, when, where, how and how much of it) A = informed consent of the patient prior to the first donation F = iron supplement (100mg Fe++ daily beginning 2 weeks prior) T = collection, processing, labelling, storage, pretransfusion testing, and release in accordance with GMP and legal requirements A = blood bank reports on the available units to all concerned K = cost control (limited to operations in need of transfusion) T = transfusion of autologous prior to any homologous unit. We report initial experiences and a cost assessment.
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Canada's health care institutions are under pressure to limit expenditures, maintain or increase productivity, and assimilate new technology. Even though more than 75% of hospital operating expenditures are controllable, according to a study by the Economic Council of Canada, cost systems are needed to provided essential management information. The new Canadian Management Information System (MIS) Guidelines for health care are designed to provide accurate cost measurement of patient treatment and to help managers evaluate the impact of planned program changes on areas of operational responsibility. Other potential benefits of implementing the MIS guidelines include correcting dysfunctional funding of health care units with benchmarking and setting high reporting standards for resource use at the patient level (MIS, 1991). This paper focuses on one important aspect of bringing these costs under control by examining the relation between cost deviations (variances) and underlying cost drivers. Our discussion will lead to the conclusion that incompatibility of DRG methodology and traditional cost accounting models may be an important source of cost variability within diagnostically-related disease groupings.
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Upward spiralling health care expenditures have triggered the need to assess the cost-effectiveness of medical interventions. Specifically, interventions in primary and secondary prevention represent an important field of research. A resource utilization analysis was performed on the basis of the recently published Scandinavian Simvastatin Survival Study. It could be shown that treatment with simvastatin compared to placebo leads to a reduction in patient costs of CHF 8.4 million. This represents a reduction of CHF 3770.- per patient. The effective daily treatment costs can thus be calculated at CHF 1.11, which is equivalent to 36% of the actual acquisition cost per day. These results support the notion that secondary coronary prevention is not only justified from a clinical but also from an economic point of view.
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For Blue Cross and Blue Shield Plans, cost containment is not a new concern but an activity that has been carried on for years. It has now been given new emphasis by the urgencies of inflation and the new focus of national attention on health care costs as one of its more conspicuous phenomena-chiefly a result of the inflation but often mistaken for, and mislabeled as, a cause.
Government interventions in the health care sector threaten the traditional role of physicians, since they are increasingly forced to consider the cost of medical care when making decisions on behalf of their patients. To prepare themselves for this ethical challenge and to actively participate in the debate about cost containment, physicians need to understand how health economists and politicians view the problem of rising medical costs. This review summarizes some essential facts and findings of the health economics literature that provide the rationale for different approaches to cost containment. The effects of rapidly growing health care cost on the economy are discussed, and improvement of medical technology is identified as the driving force behind this growth. The different policy instruments, which can be employed for cost containment, are explained against this background with an emphasis on Managed Care and global budgets. The outlined concepts are finally discussed in the context of the current debate about the proposed cost containment legislation in Germany.