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	<title>Comments on: Why Bundling Payments Won&#8217;t Reduce Costs &#8211; Part 2</title>
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	<link>http://www.epmonthly.com/whitecoat/2011/12/why-bundling-payments-wont-reduce-costs-part-2/</link>
	<description>A blog from inside the emergency department</description>
	<lastBuildDate>Wed, 22 May 2013 00:58:44 +0000</lastBuildDate>
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		<title>By: Jeffrey Kaplan</title>
		<link>http://www.epmonthly.com/whitecoat/2011/12/why-bundling-payments-wont-reduce-costs-part-2/#comment-77550</link>
		<dc:creator>Jeffrey Kaplan</dc:creator>
		<pubDate>Wed, 04 Jan 2012 17:15:34 +0000</pubDate>
		<guid isPermaLink="false">http://www.epmonthly.com/whitecoat/?p=7454#comment-77550</guid>
		<description><![CDATA[It is curious that my comment did not get posted.  Regardless, redefining health care in terms of acuity-adjusted &#039;episodes of care,&#039; considering the Donabedian perspective--looking at structure, process and outcomes, especially in terms of measurement and management is absolutely essential if we want to be paid fairly for our cost-effectiveness. If, OTOH, we are only happy being paid on a piecework basis (where the incentive is to generate pieces) or we are forced into being assigned, arbitrarily into an Accountable Care Organization - we will neither be helping medicine nor our patients, optimally.]]></description>
		<content:encoded><![CDATA[<p>It is curious that my comment did not get posted.  Regardless, redefining health care in terms of acuity-adjusted &#8216;episodes of care,&#8217; considering the Donabedian perspective&#8211;looking at structure, process and outcomes, especially in terms of measurement and management is absolutely essential if we want to be paid fairly for our cost-effectiveness. If, OTOH, we are only happy being paid on a piecework basis (where the incentive is to generate pieces) or we are forced into being assigned, arbitrarily into an Accountable Care Organization &#8211; we will neither be helping medicine nor our patients, optimally.</p>
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		<title>By: DensityDuck</title>
		<link>http://www.epmonthly.com/whitecoat/2011/12/why-bundling-payments-wont-reduce-costs-part-2/#comment-77468</link>
		<dc:creator>DensityDuck</dc:creator>
		<pubDate>Tue, 03 Jan 2012 17:17:34 +0000</pubDate>
		<guid isPermaLink="false">http://www.epmonthly.com/whitecoat/?p=7454#comment-77468</guid>
		<description><![CDATA[Mexico has a low rate of malpractice suits because they have an entire government department dedicated to denying malpractice lawsuits.  If only America were so lucky!]]></description>
		<content:encoded><![CDATA[<p>Mexico has a low rate of malpractice suits because they have an entire government department dedicated to denying malpractice lawsuits.  If only America were so lucky!</p>
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		<title>By: Jeffrey Gene Kaplan</title>
		<link>http://www.epmonthly.com/whitecoat/2011/12/why-bundling-payments-wont-reduce-costs-part-2/#comment-77455</link>
		<dc:creator>Jeffrey Gene Kaplan</dc:creator>
		<pubDate>Tue, 03 Jan 2012 14:55:27 +0000</pubDate>
		<guid isPermaLink="false">http://www.epmonthly.com/whitecoat/?p=7454#comment-77455</guid>
		<description><![CDATA[ED Talker, on 12/17/11 at 1:23 PM quite rightly said: &quot;This deeply misrepresents the concept of bundled payments.&quot;  (See: for a cogent list of its advantages and disadvantages.) Indeed, the term refers to having a common denominator for payment, usually called an &#039;episode of care that looks at Donabedian&#039;s structure, process and outcome (SPO) of care, simultaneously. 

My point is Outcomes research has never been more crucial to health care reform then now. It is the final arbiter first mentioned to us by Florence Nightingale in the mid-1800&#039;s and then E. A. Codman, an ortho in Boston who, even then, couldn&#039;t get the hospitals to disclose their real data.

Joseph Nowoslawski commented on 12/27/11, &quot;If….you want a &#039;guaranteed success&#039; of outcome in a biologically uncertain and complex arena like illness (remember physicians get sued if the patient outcome is not perfect) then you have to pay for what you get. High quality costs high dollars.&quot;  

Don&#039;t be so trite, Joe--paying for performance must take an acuity adjusted look at SPO.  It cannot ignore both the &#039;art&#039; and &#039;science&#039; of medicine.  For example, guidelines or standards must not be prescriptive (no cookbook medicine allowed here).  We have to reduce barriers to care (the hassle factor, for instance, and also, patients should have some skin in the game, but not so much that they delay getting appropriate (medical necessary) care.


Why Bundling Payments Won’t Reduce Costs — Part 3: a blog from inside the emergency department

For related commentary see ManagingManagedCare.com (live but being updated).]]></description>
		<content:encoded><![CDATA[<p>ED Talker, on 12/17/11 at 1:23 PM quite rightly said: &#8220;This deeply misrepresents the concept of bundled payments.&#8221;  (See: for a cogent list of its advantages and disadvantages.) Indeed, the term refers to having a common denominator for payment, usually called an &#8216;episode of care that looks at Donabedian&#8217;s structure, process and outcome (SPO) of care, simultaneously. </p>
<p>My point is Outcomes research has never been more crucial to health care reform then now. It is the final arbiter first mentioned to us by Florence Nightingale in the mid-1800&#8242;s and then E. A. Codman, an ortho in Boston who, even then, couldn&#8217;t get the hospitals to disclose their real data.</p>
<p>Joseph Nowoslawski commented on 12/27/11, &#8220;If….you want a &#8216;guaranteed success&#8217; of outcome in a biologically uncertain and complex arena like illness (remember physicians get sued if the patient outcome is not perfect) then you have to pay for what you get. High quality costs high dollars.&#8221;  </p>
<p>Don&#8217;t be so trite, Joe&#8211;paying for performance must take an acuity adjusted look at SPO.  It cannot ignore both the &#8216;art&#8217; and &#8216;science&#8217; of medicine.  For example, guidelines or standards must not be prescriptive (no cookbook medicine allowed here).  We have to reduce barriers to care (the hassle factor, for instance, and also, patients should have some skin in the game, but not so much that they delay getting appropriate (medical necessary) care.</p>
<p>Why Bundling Payments Won’t Reduce Costs — Part 3: a blog from inside the emergency department</p>
<p>For related commentary see ManagingManagedCare.com (live but being updated).</p>
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		<title>By: Joseph Nowoslawski</title>
		<link>http://www.epmonthly.com/whitecoat/2011/12/why-bundling-payments-wont-reduce-costs-part-2/#comment-76921</link>
		<dc:creator>Joseph Nowoslawski</dc:creator>
		<pubDate>Tue, 27 Dec 2011 16:53:09 +0000</pubDate>
		<guid isPermaLink="false">http://www.epmonthly.com/whitecoat/?p=7454#comment-76921</guid>
		<description><![CDATA[Reading the responses.....what to do....do these learned &quot;answer seekers&quot; realize that if one strips out all of the government imposed mandates on healthcare sector that the true increase in healthcare every year would average that of other sectors?

Don&#039;t people get that regulations have costs and those costs have to be paid by someone?

You want the answers to the question to reduce costs...here is is...stop regulating healthcare....open it up....(yes that includes not licensing physicians....and nurses etc) stop requiring hospitals to admit non payers and you will see costs drop....that is to say if all you want is cost control. If you haven&#039;t guessed it already this is happening by letting professional assistants do physician tasks with encouragement of the regulators.

If on the other hand you want a &quot;guarnteed sucess&quot; of outcome in a biologically uncertain and complex arena like illness (remember physicians get sued if the patient outcome is not perfect) then you have to pay for what you get. High quality costs high dollars. 

I can see the arguments on statistics coming forth...however...save your time and ask the question why everyone in the world wants to come to the USA to get their healthcare before quoting media dribble.]]></description>
		<content:encoded><![CDATA[<p>Reading the responses&#8230;..what to do&#8230;.do these learned &#8220;answer seekers&#8221; realize that if one strips out all of the government imposed mandates on healthcare sector that the true increase in healthcare every year would average that of other sectors?</p>
<p>Don&#8217;t people get that regulations have costs and those costs have to be paid by someone?</p>
<p>You want the answers to the question to reduce costs&#8230;here is is&#8230;stop regulating healthcare&#8230;.open it up&#8230;.(yes that includes not licensing physicians&#8230;.and nurses etc) stop requiring hospitals to admit non payers and you will see costs drop&#8230;.that is to say if all you want is cost control. If you haven&#8217;t guessed it already this is happening by letting professional assistants do physician tasks with encouragement of the regulators.</p>
<p>If on the other hand you want a &#8220;guarnteed sucess&#8221; of outcome in a biologically uncertain and complex arena like illness (remember physicians get sued if the patient outcome is not perfect) then you have to pay for what you get. High quality costs high dollars. </p>
<p>I can see the arguments on statistics coming forth&#8230;however&#8230;save your time and ask the question why everyone in the world wants to come to the USA to get their healthcare before quoting media dribble.</p>
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		<title>By: Joseph Nowoslawski</title>
		<link>http://www.epmonthly.com/whitecoat/2011/12/why-bundling-payments-wont-reduce-costs-part-2/#comment-76919</link>
		<dc:creator>Joseph Nowoslawski</dc:creator>
		<pubDate>Tue, 27 Dec 2011 16:45:10 +0000</pubDate>
		<guid isPermaLink="false">http://www.epmonthly.com/whitecoat/?p=7454#comment-76919</guid>
		<description><![CDATA[Excellent piece. Given the desperation of the policy makers and their &quot;something for nothing&quot; promises to get elected, they are counting on most of the public, and suprizingly, the Healthcare care establishment to miss a basic business principle. You nailed it:

&quot;The idea here is to get a large market share to adopt a payment model and then once that model has reached a “critical mass”, then turn around and use the widespread acceptance of that model to the disadvantage of the market.&quot;

And it is not like they did not see it before...remember pre HMO days.....

Keep on writin....]]></description>
		<content:encoded><![CDATA[<p>Excellent piece. Given the desperation of the policy makers and their &#8220;something for nothing&#8221; promises to get elected, they are counting on most of the public, and suprizingly, the Healthcare care establishment to miss a basic business principle. You nailed it:</p>
<p>&#8220;The idea here is to get a large market share to adopt a payment model and then once that model has reached a “critical mass”, then turn around and use the widespread acceptance of that model to the disadvantage of the market.&#8221;</p>
<p>And it is not like they did not see it before&#8230;remember pre HMO days&#8230;..</p>
<p>Keep on writin&#8230;.</p>
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		<title>By: drhawk</title>
		<link>http://www.epmonthly.com/whitecoat/2011/12/why-bundling-payments-wont-reduce-costs-part-2/#comment-76156</link>
		<dc:creator>drhawk</dc:creator>
		<pubDate>Wed, 21 Dec 2011 10:49:22 +0000</pubDate>
		<guid isPermaLink="false">http://www.epmonthly.com/whitecoat/?p=7454#comment-76156</guid>
		<description><![CDATA[I lve the way people, who have probably never been outside of the USA speak about other countries health care systems with such authority and with such great hopes.

I am not denying that someother countries have good models, but the reality is that people still pay for their care, and the care, most of the time, is at a level that would probably not be accepted by US patients, whoops, meant consumers.

most palces with socalised medicine, bundles payments, whatever you want to call it have
1) no malpractive, or low rates of malpractice awards
2) low to no cost for medical education
3) low to no cost of malpractice
4) HIGH taxes, approaching &gt;50pct
5) limits on services, be they waitlists, controlling the number of docs allowed to practice, or some options and treatments which are just no offered

Also, the hospitals do not have the hotel quality that seems to be expected in the USA. 6 to 8 people per room or bay is common. curtains only separating patients. how woudl that go over with hippa here? usually private rooms are for people who are willing to pay extra, or have private health insurance. common bathrooms, hows that. dont believe me? check out almost any BBC show where they show the inside of a NHS hospital. I have never been there, but hear germany and france are even worse.

there is also a huge difference in ER wait times, forget being seen in 30 minutes or less as most US hospitals do. you ae lucky to be seen the same day. staffing is done by senior trainees, not fully qualified docs. that is how the costs are less, less trained people operate the system

this is not to mention the countless other ways that would not go over well given the myriad of US rules and regs.

please do your researchbefore saying how great things are in other countried. having worked in several system here and overseas, we have the best healthcare you can get, bar none.]]></description>
		<content:encoded><![CDATA[<p>I lve the way people, who have probably never been outside of the USA speak about other countries health care systems with such authority and with such great hopes.</p>
<p>I am not denying that someother countries have good models, but the reality is that people still pay for their care, and the care, most of the time, is at a level that would probably not be accepted by US patients, whoops, meant consumers.</p>
<p>most palces with socalised medicine, bundles payments, whatever you want to call it have<br />
1) no malpractive, or low rates of malpractice awards<br />
2) low to no cost for medical education<br />
3) low to no cost of malpractice<br />
4) HIGH taxes, approaching &gt;50pct<br />
5) limits on services, be they waitlists, controlling the number of docs allowed to practice, or some options and treatments which are just no offered</p>
<p>Also, the hospitals do not have the hotel quality that seems to be expected in the USA. 6 to 8 people per room or bay is common. curtains only separating patients. how woudl that go over with hippa here? usually private rooms are for people who are willing to pay extra, or have private health insurance. common bathrooms, hows that. dont believe me? check out almost any BBC show where they show the inside of a NHS hospital. I have never been there, but hear germany and france are even worse.</p>
<p>there is also a huge difference in ER wait times, forget being seen in 30 minutes or less as most US hospitals do. you ae lucky to be seen the same day. staffing is done by senior trainees, not fully qualified docs. that is how the costs are less, less trained people operate the system</p>
<p>this is not to mention the countless other ways that would not go over well given the myriad of US rules and regs.</p>
<p>please do your researchbefore saying how great things are in other countried. having worked in several system here and overseas, we have the best healthcare you can get, bar none.</p>
]]></content:encoded>
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		<title>By: drhawk</title>
		<link>http://www.epmonthly.com/whitecoat/2011/12/why-bundling-payments-wont-reduce-costs-part-2/#comment-76155</link>
		<dc:creator>drhawk</dc:creator>
		<pubDate>Wed, 21 Dec 2011 10:49:00 +0000</pubDate>
		<guid isPermaLink="false">http://www.epmonthly.com/whitecoat/?p=7454#comment-76155</guid>
		<description><![CDATA[I lve the way people, who have probably never been outside of the USA speak about other countries health care systems with such authority and with such great hopes.

I am not denying that someother countries have good models, but the reality is that people still pay for their care, and the care, most of the time, is at a level that would probably not be accepted by US patients, whoops, meant consumers.

most palces with socalised medicine, bundles payments, whatever you want to call it have
1) no malpractive, or low rates of malpractice awards
2) low to no cost for medical education
3) low to no cost of malpractice
4) HIGH taxes, approaching &gt;50pct
5) limits on services, be they waitlists, controlling the number of docs allowed to practice, or some options and treatments which are just no offered

Also, the hospitals do not have the hotel quality that seems to be expected in the USA.  6 to 8 people per room or bay is common. curtains only separating patients.  how woudl that go over with hippa here?  usually private rooms are for people who are willing to pay extra, or have private health insurance. common bathrooms, hows that. dont believe me?  check out almost any BBC show where they show the inside of a NHS hospital.  I have never been there, but hear germany and france are even worse.

there is also a huge difference in ER wait times, forget being seen in 30 minutes or less as most US hospitals do. you ae lucky to be seen the same day. staffing is done by senior trainees, not fully qualified docs.  that is how the costs are less, less trained people operate the system

this is not to mention the countless other ways that would not go over well given the myriad of US rules and regs.


please do your researchbefore saying how great things are in other countried. having worked in several system here and overseas, we have the best healthcare you can get, bar none.]]></description>
		<content:encoded><![CDATA[<p>I lve the way people, who have probably never been outside of the USA speak about other countries health care systems with such authority and with such great hopes.</p>
<p>I am not denying that someother countries have good models, but the reality is that people still pay for their care, and the care, most of the time, is at a level that would probably not be accepted by US patients, whoops, meant consumers.</p>
<p>most palces with socalised medicine, bundles payments, whatever you want to call it have<br />
1) no malpractive, or low rates of malpractice awards<br />
2) low to no cost for medical education<br />
3) low to no cost of malpractice<br />
4) HIGH taxes, approaching &gt;50pct<br />
5) limits on services, be they waitlists, controlling the number of docs allowed to practice, or some options and treatments which are just no offered</p>
<p>Also, the hospitals do not have the hotel quality that seems to be expected in the USA.  6 to 8 people per room or bay is common. curtains only separating patients.  how woudl that go over with hippa here?  usually private rooms are for people who are willing to pay extra, or have private health insurance. common bathrooms, hows that. dont believe me?  check out almost any BBC show where they show the inside of a NHS hospital.  I have never been there, but hear germany and france are even worse.</p>
<p>there is also a huge difference in ER wait times, forget being seen in 30 minutes or less as most US hospitals do. you ae lucky to be seen the same day. staffing is done by senior trainees, not fully qualified docs.  that is how the costs are less, less trained people operate the system</p>
<p>this is not to mention the countless other ways that would not go over well given the myriad of US rules and regs.</p>
<p>please do your researchbefore saying how great things are in other countried. having worked in several system here and overseas, we have the best healthcare you can get, bar none.</p>
]]></content:encoded>
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		<title>By: jim</title>
		<link>http://www.epmonthly.com/whitecoat/2011/12/why-bundling-payments-wont-reduce-costs-part-2/#comment-76038</link>
		<dc:creator>jim</dc:creator>
		<pubDate>Tue, 20 Dec 2011 17:10:33 +0000</pubDate>
		<guid isPermaLink="false">http://www.epmonthly.com/whitecoat/?p=7454#comment-76038</guid>
		<description><![CDATA[Doctors won&#039;t be responsible for outcomes, they will be responsible for measures of outcomes.  Two totally different things.]]></description>
		<content:encoded><![CDATA[<p>Doctors won&#8217;t be responsible for outcomes, they will be responsible for measures of outcomes.  Two totally different things.</p>
]]></content:encoded>
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		<title>By: DensityDuck</title>
		<link>http://www.epmonthly.com/whitecoat/2011/12/why-bundling-payments-wont-reduce-costs-part-2/#comment-75923</link>
		<dc:creator>DensityDuck</dc:creator>
		<pubDate>Mon, 19 Dec 2011 19:06:17 +0000</pubDate>
		<guid isPermaLink="false">http://www.epmonthly.com/whitecoat/?p=7454#comment-75923</guid>
		<description><![CDATA[In other words, &quot;bundling&quot; is a way of stealthily introducing limits on care.  If you just straight-up denied payment then there&#039;d be a great hue and cry about how Medicare Wants You To Die.  But if it&#039;s just &lt;i&gt;not part of the bundle&lt;/i&gt;, well, who can complain about that?  What, you&#039;re greedy, you want it better than everyone else gets?  Well ain&#039;t &lt;i&gt;you&lt;/i&gt; Mister Specialpants.]]></description>
		<content:encoded><![CDATA[<p>In other words, &#8220;bundling&#8221; is a way of stealthily introducing limits on care.  If you just straight-up denied payment then there&#8217;d be a great hue and cry about how Medicare Wants You To Die.  But if it&#8217;s just <i>not part of the bundle</i>, well, who can complain about that?  What, you&#8217;re greedy, you want it better than everyone else gets?  Well ain&#8217;t <i>you</i> Mister Specialpants.</p>
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		<title>By: DensityDuck</title>
		<link>http://www.epmonthly.com/whitecoat/2011/12/why-bundling-payments-wont-reduce-costs-part-2/#comment-75921</link>
		<dc:creator>DensityDuck</dc:creator>
		<pubDate>Mon, 19 Dec 2011 19:01:45 +0000</pubDate>
		<guid isPermaLink="false">http://www.epmonthly.com/whitecoat/?p=7454#comment-75921</guid>
		<description><![CDATA[This is like someone telling you to stop shooting yourself in the foot, and you reply &quot;well where ELSE should I shoot myself?&quot;]]></description>
		<content:encoded><![CDATA[<p>This is like someone telling you to stop shooting yourself in the foot, and you reply &#8220;well where ELSE should I shoot myself?&#8221;</p>
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