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Interferon-beta in multiple sclerosis. Can we control its costs?

The recent licensing of interferon-beta for use in patients with multiple sclerosis has caused concern, in view of the equivocal evidence of efficacy, pressure of public expectation towards its use and the high expected cost if widespread use were to be sanctioned. Whether such alarm is justified remains a moot point. Owing to the limited range of circumstances of proven efficacy and the lack of cost-effectiveness data, it remains unclear whether sanctioned usage will proliferate to the anticipated extent. Unit costs may well fall in the future owing to competition in the pharmaceutical market. Interferon-beta is simply one example of a growing trend in actively promoted high-cost preparations over which rationing decisions will have to be reached.

Cost-Benefit Analysis↗

Managed care and the radiologist: expectations and future trends.

Our health care system, burdened by excessive costs and unprecedented growth, is in need of reform. How to carry out such reform and achieve an acceptable balance between quality and cost of care remains the dilemma. Attempts to control costs and limit growth have, in recent years, produced a disturbing trend in the quality and availability of health care benefits, focusing on benefit reduction without addressing resource utilization or quality of care. The result of these efforts? Persons who have health care insurance are paying more for basic plans and reduced benefits; others are either uninsured or underinsured. Health care benefits continue to be the fastest growing component of business expenses, strengthening the perception of diminishing competitiveness in the world market. The formation of smaller businesses offering no health care benefits continues to be problematic.

Cost Control↗

Diabetes care in health maintenance organizations.

An increasing amount of health care today is directed to the amelioration of chronic diseases for which there are no cures. Technological advances and the aging of the population have increased the costs of that care. In an attempt to control costs and increase the efficiency of health care, it is being increasingly delivered in alternate health-care systems where third-party payors influence the access, use, and quality of that care. This article traces the history of the development of alternative health-care delivery systems and describes how they attempt to deal with the tension between cost and quality in the context of the delivery of health care to people with diabetes. Systems for home health care, health education and dietary counseling, prescriptions and durable medical equipment, medical technology assessment, quality management, peer review, and cost containment in the various alternative health-care settings are described. Theoretically, the health maintenance organization offers an ideal system for delivering care that is accessible, affordable, and of good quality.

Cost Control↗

Physician perspectives on the structure and function of group practice HMOs.

This article explores physicians' perspectives regarding how their HMOs function and their satisfaction with and loyalty to HMOs. Three HMOs were studied: a mature (28-year-old) staff model, a 16-year-old staff model, and a 13-year-old group model with both HMO and fee-for-service patients. While these HMOs were found to vary somewhat in terms of emphasis on patient care versus costs, methods used to control costs and degrees of centralization of decision making, they all received high overall satisfaction and loyalty scores. The staff model HMO with a more decentralized decision making structure received the highest satisfaction/loyalty score from its physicians. The degree to which physicians perceive the HMO to be effective and supportive and the use of educational programs and peer review to influence resource use were also found to be significantly related to physician satisfaction and loyalty.

Analysis of Variance↗

Quality improvement--emerging issues to controlling medical costs.

While quality evaluation issues are very important to providers and managed care organizations in marketing their service and managing the care provided, they should also be a focus of any employer or other plan sponsor that is financially responsible for providing managed care benefits. Certainly employers can begin to use information regarding the quality of managed care networks to help determine the better networks to offer participants. In addition, managed care networks are employing a variety of techniques to improve the quality of service that employers can and should try to emulate--and that are explored in this article.

Health Benefit Plans, Employee↗

Hospitals owning HMOs get shortchanged when it comes to controlling, reducing costs.

Data Benchmarks: HMO ownership a financial hindrance to hospitals? A new survey of hospitals owning HMOs vs. hospitals that don't surprisingly shows hospitals getting into the managed care business aren't faring as well as they hoped. Hospitals owning HMOs had 11.3% higher total costs per occupied bed than organizations that don't own HMOs. Here are the details, plus comparisons of other financial indicators between the two groups.

Health Maintenance Organizations↗