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Cost control and physicians: an examination of attitudes and behavioral expectations.

In 1977, a Committee of the Maine Legislature considered a proposal to include physicians' offices in the Certificate of Need (CON) process. Ultimately, the Committee accepted the Maine Medical Association position and rejected the proposal. A survey was conducted of physicians of Cumberland County, Maine, to determine their attitudes toward the proposal. Questionnaires were sent out concurrently with the legislative debate; 163 were completed (55 per cent). Results indicated that there was not unanimous support of the Maine Medical Association position. Twenty-three per cent of the respondents favored the proposal. The older, more conservative physicians tended to be against the proposal. Behavioral expectations were measured by asking physicians what they would do if the CON proposal was implemented. Nine per cent of the physicians indicated that they would alter their practice in a manner that would have an adverse effect on the availability of care if the CON proposal was implemented. Cross-tabulations revealed that most of those who would alter their practices were close to retirement age. Thus, we can conclude that passage of the proposal would not have had an especially adverse effect upon the availability of care in Maine.

Adult↗

Appropriate utilization and cost control of the hospital laboratory: panel testing and repeat orders.

Analysis of hospital laboratory utilization shows a bi-exponential relationship between the many different test combinations ordered and their frequency of use. This suggests two opposite strategies to reduce test volume. Policy could discourage use of the most popular request combinations to reduce volume, or policy could discourage use of the least popular request combinations to reduce order variety. Analysis of biochemical test orders further suggests that the largest part of test requests is associated with a small number of pathophysiological issues, namely those involving electrolytes, fluid balance, blood lipids, heart, liver, kidney or bone disease. Therefore, efficiency results when a limited number of standard test panels addressing these issues reduce order variety by discouraging infrequently used test combinations. Standard panels can be developed from an analysis of the most popular existing orders, accepting some degree of discrepancy among otherwise overlapping requests. This empiric approach avoids sterile debate about the composition of ideal panels. Since the resources of the laboratory, the mix of patients served and local medical tradition affect test orders, each institution providing health care must develop the standard panels best suited to its needs. Analysis of standing repeat orders suggests they are often used to anticipate potential pathology in stable patients. Therefore, economy results when test volume is reduced by discouraging series of futile repeat tests with unchanging normal results. Unfortunately, an empiric approach to regulate repeat orders is not available and only a more cumbersome process to build a locally agreed upon consensus between providers and users of laboratory services offers itself as a promising solution.

Alabama↗

Utilization management: a rehabilitation approach to cost control.

Santa Rosa Rehabilitation Hospital in San Antonio, TX, not unlike many healthcare facilities throughout the nation, was faced with several issues: (a) increased cost, (b) lower reimbursement, (c) high length of stay, and (d) low staff morale. The management team was responsible for developing a system to control these issues, the most noticeable and measureable of which was length of stay. In 1987, the facility reached a high length of stay of 43 days. In response, the managers of Santa Rosa Rehabilitation Hospital took the lead in instituting multidisciplinary utilization management, and the hospital saw the average length of stay decrease to 18 days in 1990. This article provides a detailed description of the development of multidisciplinary utilization management, as well as a brief history of the rationale behind the utilization management process. Limitations and advantages of the system also are described.

Cost Control↗

PPS implementation effects on efficiency and cost control in the hospital industry.

Empirical evidence is provided concerning the impact of Public Law 98-21 on the operation of United States hospitals. The Box-Jenkins autoregressive integrated moving average model was used to analyze the impact of the law on efficiency and cost containment practices over a 24-year time period. Four cost containment variables and three efficiency variables were studied. Public Law 98-21 was the intervention and 1984 was the intervention year in which to evaluate impact assessment. Children's hospitals were used as a control group. Results of the research indicated no impact on cost containment practices and a significant impact on efficiency of hospital operations.

Cost Allocation↗