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Foster care and Medicaid managed care.

Children in the foster care system are often dependent on Medicaid for health care. These children, however, have more complex health care needs than the typical child receiving Medicaid. States are implementing Medicaid managed care programs as a way to control escalating costs while providing necessary services. This article reviews the issues surrounding delivery of managed health care services to children in foster care and describes several solutions.

Child↗

Predicting readmission to the psychiatric hospital in a managed care environment: implications for quality indicators.

OBJECTIVE: This study examined predictors of hospital readmission to determine whether readmissions can serve as a quality indicator for an inpatient psychiatric service. METHOD: A series of 255 patients consecutively admitted to any of seven psychiatric hospitals in a regional managed care program were followed to determine whether they were readmitted within 6 months of discharge. Case managers assessed patients with the use of a reliable outcome management/decision support system designed for acute psychiatric services. RESULTS: Patients with greater impairment in self-care, more severe symptoms, and more persistent illnesses were more likely to be readmitted than other patients. Suicidal patients were less likely to be readmitted. There was no evidence to suggest that poor hospital outcome or premature discharge was associated with readmission either within 30 days or within 6 months. CONCLUSIONS: Although patients at risk for hospital admission can be identified, it does not appear that the success of the hospital intervention per se influences the likelihood of readmission. Use of readmission rates as quality indicators for hospital care providers is not recommended.

Acute Disease↗

Compensation of radiologists.

The compensation of radiologists for professional services to patients has shifted in the past half century from a strong reliance on hospital billing and payment to a pattern of financial independence of radiology groups. The laws and regulations creating the Medicare program were instrumental in spurring the transition for many. With the advent of managed care programs, employer self-insurance for health costs and pending state and federal health reform efforts, radiology compensation patterns are likely to undergo further changes to make them compatible with new payment mechanisms.

Fees, Medical↗

Opportunities and challenges in Medicaid managed care: the experience in Maryland.

OBJECTIVE: The effects of the Maryland Medicaid mandatory managed care programs on Medicaid beneficiaries are examined with the main objective of gaining insight into the initial experience and beneficiary satisfaction with Maryland's Medicaid program. The background of the Maryland Medicaid system, initial implementation, results of beneficiary satisfaction surveys, and future concerns are discussed. STUDY DESIGN: An observational study based on survey data. DATA AND METHODS: Beneficiary surveys mailed to adult and child participants in HealthChoice and the Rare and Expensive Case Management (REM) Medicaid programs in Maryland are analyzed. Descriptive univariate and bivariate data statistics are used. RESULTS: The 4 questions rating satisfaction with primary care provider (PCP), relevant specialists, all providers, and the overall health plan indicate high levels of satisfaction in both adult and child populations. CONCLUSIONS: The Maryland Medicaid programs appear to have met the goal of providing a comprehensive, coordinated healthcare system of quality care during their first year of operation. The satisfaction of these beneficiaries suggests that with an appropriate risk-adjusted capitation approach, managed care organizations (MCOs) can successfully provide for even the most complex needs of Medicaid members.

Community Health Services↗

Medicaid managed care and infant health.

This paper provides estimates of the effects of Medicaid managed care on prenatal care adequacy and infant birthweights, using a census of 1994 Medicaid births in Wisconsin, where some Medicaid recipients were enrolled in fully capitated health maintenance organizations (HMOs) while others remained in traditional fee-for-service (FFS) systems. The results indicate that while Medicaid patients enrolled in managed care programs may be more likely to receive adequate prenatal care, birth outcomes under managed care are not significantly different from those under FFS financing systems. We conclude that cost savings generated by Wisconsin Medicaid managed care are not coming at the expense of maternity patients' or infants' welfare.

Adult↗

Is conventional wisdom wrong? Coverage for substance abuse treatment under Medicaid managed care.

Conventional wisdom suggests that coverage for substance abuse treatment under Medicaid is generally poor, and that access to care may be reduced when control over behavioral health services is given to private health plans, such as those under Medicaid managed care. To examine this premise, this study reports on a cross-sectional comparative survey of state Medicaid managed care programs conducted in the year 2000. Although not all states provided substance abuse benefits under their Medicaid programs, our findings suggest that a majority of states used managed care arrangements to provide substance abuse treatment, with most providing an array of covered services. Most Medicaid behavioral health plans were fully capitated. The number of comprehensive health plans providing substance abuse services was slightly higher than the number of behavioral health carveouts. About half of the waiver programs that covered substance abuse treatment covered methadone maintenance, but waiver programs employing comprehensive health plans were more likely to provide coverage for methadone maintenance.

Health Services Accessibility↗

Risk Adjustment for the Medicare program: lessons learned from research and demonstrations.

The Balanced Budget Act (BBA) of 1997 requires numerous changes in Medicare. Medicare's managed care program has been reinvented as "Medicare + Choice," offering an expanded range of delivery system options for beneficiaries and a schedule of payment changes that will dramatically affect managed care plans. Preceding some of these BBA-legislated changes to Medicare were years of research and demonstrations. Risk-adjusted payment in the Medicare + Choice program, which is mandated for implementation in 2000, is one example of a longstanding developmental initiative. This paper provides a brief overview of risk adjustment-related research and demonstration activities carried out by the Health Care Financing Administration (HCFA) since the 1980s, and describes a possible technical approach for the implementation of risk-adjusted Medicare managed care payments in 2000.

Aged↗

Challenges to providing end-of-life care to low-income elders with advanced chronic disease: lessons learned from a model program.

PURPOSE: This study explored the challenges in providing end-of-life care to low-income elders with multiple comorbid chronic conditions in a fully "integrated" managed care program, and it highlighted essential recommendations. DESIGN AND METHODS: A case-study design was used that involved an extensive analysis of qualitative data from five focus groups with interdisciplinary team members, two in-depth interviews with administrators, and open-ended survey responses from social workers detailing death experiences of 120 elders. RESULTS: Seven major themes characterized primary end-of-life care challenges: (a) the nature of advanced chronic disease; (b) the incapacity of support systems; (c) barriers to honoring care preferences; (d) challenges with characteristics and needs of participants; (e) needs of complex family systems; (f) barriers with transitions; and (g) barriers with culture and language. IMPLICATIONS: The lessons learned suggest recommendations with implications for program development, practice, policy, and future research.

Aged, 80 and over↗

General hospital psychiatry and the ethics of managed care.

Managed care programs come in many stripes, and the field is evolving with bewildering rapidity. In order to be effective advocates and critics, clinicians need a vision of ethical managed care practice, to use as a standard for judgment and quality improvement. This paper presents four principles that I believe capture the essential stance of an ethical clinician in managed care. The central challenge for creating ethical managed care systems is integrating stewardship (communitarian) and fiduciary (patient centered) values. Because general hospital psychiatrists treat individual patients in a "communal" (institutional) setting in which issues of resource use stand out with great clarity, they will play a central role in developing ethical guidelines for managed care practice. This paper considers issues in general hospital psychiatric practice--determining hospital length of stay, deciding how much suicidal risk is tolerable in a treatment plan, and the problems that arise when patients prefer valid but less cost-effective treatments--as examples of the kinds of questions a clinically relevant set of ethics must address.

Cost-Benefit Analysis↗

The financial impact on community mental health centers of capitated contracts with Medicaid: the Utah Prepaid Mental Health Plan.

Under the Utah Prepaid Mental Health Plan, three of the eleven Community Mental Health Centers in Utah signed capitation contracts with the state Medicaid program. The capitated Centers initially accepted the risk for inpatient care, with the risk later being extended to also include outpatient services. This study contrasts the financial experiences of the capitated Centers and five noncontracting Centers. While various patterns of financial management are evident in the data, it appears that the decision to contract had, at worst, a neutral effect on overall financial performance. Managed care programs with different designs may have different results.

Capitation Fee↗

What is influencing performance improvement in managed care?

Both consumers and providers alike are concerned about quality in the managed care environment. Performance improvement activities frequently focus on preventive health measures, provider access, and availability of service. What is the the driving force? The article provides an overview of external reporting requirements of purchasers of health care, accrediting bodies, and regulatory agencies that are influencing quality programs in managed care.

Accreditation↗

Trends in acute psychiatric inpatient care in Massachusetts.

This report presents the preliminary results of a longitudinal study of acute psychiatric hospitalization in the Commonwealth of Massachusetts for fiscal years 1994 to 2000. The study was a secondary analysis of data obtained through the Commonwealth's mandated case-mix reporting system, covering 42 acute psychiatric facilities and 119,284 patients. Results include a 58.4 percent increase in the patient population, accompanied by declines in both length of stay and readmission rates; increases in the number of diagnoses of depression and in the number of patient deaths; and shifts to an older population increasingly supported by Medicaid and Medicare, especially managed care programs.

Adult↗

The management of upstream and downstream risk through selective contracting.

Common strategies employed by many organizations include designating certain suppliers as primary sources and targeting certain customers who are appealing competitively. Such selective strategies are appearing more frequently in the health care sector today. This paper examines the use of selective contracting by managed care programs to simultaneously increase control over costs (provider selection) and decrease risk (subscriber selection).

Contract Services↗

Managed care. Dealing with the dual eligible population.

This is the first of a two-part series reviewing the genesis of managed care programs for persons dually eligible for Medicare and Medicaid. Part two will profile several state programs, exploring their impact on long term care.

Eligibility Determination↗

Healthchoice: a managed health-care program for low-income uninsured workers.

The period in which we practice medicine is unprecedented in terms of the enormous changes that are taking place within the profession. Perhaps foremost among the changes is the manner in which the practice of medicine is organized. Historically, over the last 30 years we have witnessed the transition of substantial proportions of physicians as solo practitioners to professionals employed in one form or another by institutional management care systems. Further, from all indications, this change is continuing unabatedly. There are now more than 600 health maintenance organizations (HMOs), and their enrollment rates have been steadily increasing. More than 60 million Americans or about 30% of the insured population receive their medical care through HMOs and preferred provider organizations (PPOs). Moreover, it is estimated that in the year 2000, 90% of all Americans will be receiving their medical care from managed care systems. Clearly, the driving force behind these changes is the desire of third-party payers and the public at large to control health-care costs. We, of course, share this goal and are committed to working with the public and private sectors to accomplish this aim. Deborah L. Scott, director of the Wayne County Patient Care Management Systems, writes about HealthChoice, a model managed-care program in Detroit, Michigan. Ms Scott's article is being published in lieu of the President's Column.

Female↗

Rehabbing Medicare. Is managed care a cure-all or just a crutch?

Money, or the prospect of saving it, is what's rallying many in Congress around supporting managed care as Medicare's magic bullet. And financial, as well as community, incentives are certainly helping to push Medicare managed care programs forward in the delivery system. But will those programs accomplish everything their advocates expect?

California↗

The impact of managed care on Massachusetts mental health and substance abuse providers.

Medicaid managed care programs are becoming more widespread. To investigate the clinical, organizational, and financial impacts on service providers, a stratified, random sample of providers in the Massachusetts Managed Mental Health/Substance Abuse Program were surveyed by phone in Years 3 and 4 of the initiative. Providers reported that they were making widespread clinical changes such as more use of group, brief, and episodic therapies. They were increasing utilization review, Total Quality Management, and outcomes measurement. They were increasing in size, affiliating with other agencies, and providing a greater range of services. They were preparing for capitation. Compared to before the program and a year earlier, about 40 percent of providers were doing better financially and a quarter were doing worse. The study documents the hypothesis that a widespread and continuing transformation is taking place in response to managed care.

Cost Control↗