Rehabilitation costs: implications for prospective payment

OBJECTIVE

To obtain information relevant to development of prospective payment for Medicare rehabilitation facilities (RFs) and skilled nursing facilities (SNFs): compares service utilization, length of stay (LOS), case mix, and resource consumption for Medicare patients receiving postacute institutional rehabilitation care.

DATA SOURCES/STUDY SETTING

Longitudinal patient-level and related facility-level data on Medicare hip fracture (n = 513) and stroke (n = 483) patients admitted in 1991-1994 to a sample of 27 RFs and 65 SNFs in urban areas in 17 states.

STUDY DESIGN

For each condition, two-group RF-SNF comparisons were made. Regression analysis was used to adjust RF-SNF differences in resource consumption per stay for patient condition (case mix) and other factors, since random assignment was not possible.

DATA COLLECTION/EXTRACTION METHODS

Providers at each facility were trained to collect patient case-mix and service utilization information. Secondary data also were obtained.

PRINCIPAL FINDINGS

RF patients had shorter LOS, fewer total nursing hours (but more skilled nursing hours), and more ancillary hours than SNF patients. After adjustment, ancillary resource consumption per stay remained substantially higher for RF than SNF patients, particularly for stroke. The adjusted nursing resource consumption differences were smaller than the ancillary differences and not statistically significant for hip fracture. Supplemental outcome findings suggested minimal differences for hip fracture patients but better outcomes for RF than SNF stroke patients.

CONCLUSIONS

Much can be gained from an integrated approach to developing prospective payment for RFs and SNFs. In that context, consideration of condition-specific per-stay payment methods applicable to both settings appears warranted.

The medical economics of stroke

The economic consequences of the approximately 500,000 strokes that occur each year in the US are staggering. The direct cost of providing care for stroke victims in 1993 has been estimated to be $US17 billion, with an additional $US13 billion in indirect costs attributable to lost earnings due to stroke-related mortality and morbidity. Estimates of the cost of stroke over a patient's lifetime vary according to age at first stroke and type of stroke. In 1990, these estimates ranged from $US91,000 for ischaemic stroke, $US124,000 for intracerebral haemorrhage, and $US228,000 for subarachnoid haemorrhage. Factors driving the economics of stroke include the epidemiology of stroke, treatment patterns and settings, and social and behavioural factors. Evaluating the economic consequences of alternative interventions designed to prevent strokes or improve stroke outcomes involves a weighing of incremental costs and effectiveness. Previous efforts have focused primarily on measuring costs, with a recent shift to trying to measure patient preferences for stroke outcomes.

Economic evaluation of Nootropil in the treatment of acute stroke in France

The primary objective of this study was to investigate the economic impact of treatment of acute ischaemic stroke with piracetam vs placebo according to the societal perspective in France. Socio-demographic, clinical and resource utilisation data for piracetam and placebo patients during the acute phase following stroke was obtained from the Piracetam Acute Stroke Study (PASS) clinical trial database. The economic analysis was based on the population defined as being treated within 6 h 59 min following stroke and presenting an initial Orgogozo score of less than 55. Resource utilisation data concerning the rehabilitation phase, outpatient follow-up and institutionalisation was obtained from decision tree analysis. There was a higher percentage of autonomous patients in the piracetam group (27.8%) compared to placebo (22.9%). The mean duration of hospitalisation (autonomous 21.8 days; non-autonomous 30.3 days) and the cost of an autonomous patient was lower than a non-autonomous patient. The total cost per stroke patient receiving piracetam was estimated at 103 KF during the 6-month period, compared to 106 KF per placebo patient. The major cost driver was hospitalisation during the acute phase, representing approximately 50% of the total cost per patient. In patients with moderate to severe stroke treated within 6.59 h, piracetam was cost-effective compared to placebo over the 6-month study period.

The uptake and costs of guidelines for stroke in a district of southern England

STUDY OBJECTIVE

To assess the impact of guidelines for stroke management on the utilisation of services by patients and the cost consequences of implementation.

DESIGN

Prospective audit.

SETTING

District health authority in southern England.

PATIENTS

A total of 468 live non-comatose stroke patients registered between November 1991 and May 1993.

MAIN OUTCOME MEASURES

A comparison between the three, six month periods for investigations performed and rehabilitation received and their associated costs.

RESULTS

The appropriateness of the use of investigations improved over time to between 88 and 92% except for computed tomography (CT) (24%). Younger, more severely impaired patients in a medical bed were more likely to have CT. Overall levels of rehabilitation were low. There was no change in use of physiotherapy (61% to 63%), a significant increase in occupational therapy (26% to 39%) and a non significant change in speech therapy (34% to 25%) over time. Guideline introduction caused a modest 23 Pounds increase in costs per patient in the 2nd six months and 41 Pounds in the 3rd six months but this sum could rise to 430 Pounds per patient if full implementation of the guidelines occurred which is still only around 13% of the costs of nursing care while in hospital.

CONCLUSIONS

This 18 month aduit shows only modest changes in practice compared with guidelines, and overall levels of rehabilitation were low. The costs of full implementation seem considerable, but in fact constitute only a small proportion of nursing care costs.

Assessing uncertainty in cost-effectiveness analyses: application to a complex decision model

A framework for quantifying uncertainty about costs, effectiveness measures, and marginal cost-effectiveness ratios in complex decision models is presented. This type of application requires special techniques because of the multiple sources of information and the model-based combination of data. The authors discuss two alternative approaches, one based on Bayesian inference and the other on resampling. While computationally intensive, these are flexible in handling complex distributional assumptions and a variety of outcome measures of interest. These concepts are illustrated using a simplified model. Then the extension to a complex decision model using the stroke-prevention policy model is described.

Variations in average charges for strokes and TIAs: United States, 1995

The 1995 in-hospital charges for 6,628 group health insured stroke victims averaged $11,010 across the country. This total was over twice the average charge for the 1,584 patients hospitalized with a transient ischemic attack (TIA), $4,940. The Mountain and the neighboring Pacific areas of the country reported the highest charges for a stroke, 24 and 16 percent, respectively, higher than the U.S. average. The charges in the East North Central and East South Central areas were the lowest, each under $9,000 and 20 and 25 percent below the norm, respectively. Between study states, the highest stroke charge was reported in Arizona ($17,590) and the lowest in Ohio ($6,670). Hospital charges comprised 81 percent of the total bill to insurance, averaging $8,940. Physicians' charges averaged $2,070, with those in New York 34 percent above the norm and those in Alabama 30 percent below ($1,450). The New Jersey hospital stays averaged 8.1 days, whereas the stay in Oregon was 5.2 days. The total TIA charge was just under $5,000 across the country. Illinois reported the highest TIA in-hospital charge, $6,160, 25 percent above the U.S. average and almost twice the total in Alabama ($3,170). The hospital charges comprised 87 percent of the total, averaging $4,290. Physicians' charges in Pennsylvania were the highest ($890, 37 percent above the U.S. norm of $650) and those in Alabama the lowest ($450, 31 percent below). The average length of stay was 3.7 days for a TIA, ranging from 5.4 days in New York to 2.3 days in Arizona.

An estimate of chronic disease burden and some economic consequences among the elderly Hong Kong population

OBJECTIVES

To estimate the burden of chronic disease for an elderly Chinese population aged 70 years and over, and to illustrate the use of this information in estimating the economic consequences of disease burden using stroke as an example.

PARTICIPANTS

A total of 1902 subjects recruited by random sampling of the old age and disability allowance schemes, which cover over 90% of the Hong Kong elderly population, stratified by sex and five year age groups from age 70 years onwards.

METHOD

Information was collected on 10 medical conditions at baseline: arthritis, hypertension, cardiac disease, stroke, chronic obstructive airways disease, peptic ulcer, diabetes mellitus, osteoporotic fracture, malignancy, and dementia. A follow up survey was carried out after 18 months to determine the occurrence of new disease and the number with disease who had died. Disease burden is calculated as the number with disease at baseline plus the number developing new disease minus the number who had died.

RESULTS

Disease burden figures were highest for arthritis, hypertension, cardiac disease, and peptic ulcer, and were higher in the 70-79 age group than the 80+ age group for some diseases. For stroke, the economic cost based on a population projection for 2001 was estimated to be around HK$1,900,000,000, or US$250 million.

CONCLUSION

Information on the burden of chronic disease is important. It enables the economic consequences to be estimated so that strategies can be developed to prevent diseases with high costs and known effective preventive methods.

Meeting the challenge of stroke

It is the elderly who carry the burden of stroke. Whilst 130,000 people suffer a stroke in the UK every year, nearly three quarters of these cases occur over the age of 65 and nearly half occur over the age of 75. As the proportion of elderly in the population continues to grow, inevitably this burden will increase. With Scotland probably experiencing the highest stroke incidence in the UK and stroke already accounting for 5.5% of total hospital costs, challenges clearly lie ahead for the health service and Scottish society as a whole. The extent to which we are able to meet this challenge is becoming clearer. Thus far, therapeutic advance has been rather "low-tech", with organisation of services and the appropriate use of existing interventions showing modest and, just occasionally, dramatic benefits. In contrast, the high hopes raised by many "high-tech" solutions have largely been dashed or remain promising but unproven.

Short-term economic and health benefits of smoking cessation: myocardial infarction and stroke

BACKGROUND

Most analyses of the economic benefits of smoking cessation consider long-term effects, which are often not of interest to public and private policy makers. These analyses fail to account for the time course of the short-run cost savings from the rapid decline in risk of acute myocardial infarction (AMI) and stroke.

METHODS AND RESULTS

We estimate the time course of the fall in risk of AMI and stroke after smoking cessation and simulate the impact of a 1% absolute reduction in smoking prevalence on the number of and short-term direct medical costs associated with the prevented AMIs and strokes. In the first year, there would be 924+/-679 (mean+/-SD) fewer hospitalizations for AMI and 538+/-508 for stroke, resulting in an immediate savings of $44+/-26 million. A 7-year program that reduced smoking prevalence by 1% per year would result in a total of 63,840+/-15,521 fewer hospitalizations for AMI and 34,261+/-9133 fewer for stroke, resulting in a total savings of $3.20+/-0.59 billion in costs, and would prevent approximately 13,100 deaths resulting from AMI that occur before people reach the hospital. Creating a new nonsmoker reduces anticipated medical costs associated with AMI and stroke by $47 in the first year and by $853 during the next 7 years (discounting 2.5% per year).

CONCLUSIONS

Although primary prevention of smoking among teenagers is important, reducing adult smoking pays more immediate dividends, both in terms of health improvements and cost savings.

The effect of treating people with reversible ischaemic attacks of the brain and eye on the incidence of stroke in Australia

BACKGROUND

Reversible ischaemic attacks of the brain or eye (RIA) are a risk factor for stroke. Strategies of stroke prevention include vascular risk factor control, antithrombotic therapy, and carotid surgery.

AIMS

To determine the effectiveness, risks and costs of each stroke prevention strategy for patients with RIA and the Australian community, and the effect of treating people with RIA on the incidence of stroke in Australia.

METHODS

Review of data from prospective community-based studies to determine the prevalence of RIA, the incidence of stroke, and the proportion of stroke patients who report a RIA before their stroke; and data from randomised trials to determine the effectiveness, risks and costs of treatments for RIA.

RESULTS

About 111,000 Australians have had a prior RIA. Each year, about 37,000 Australians suffer a stroke, of whom up to 8000 (22%) have had a prior ('warning') RIA. Targeting effective stroke prevention strategies to RIA patients with relevant treatable conditions may reduce the individual's stroke risk by two-thirds (individual strategies) and possibly further (combination strategies). However, because the attributable risk of RIA for stroke is only about 22% (and may be less, given the role of other causal risk factors for stroke), strategies of stroke prevention in RIA patients can only reduce stroke incidence by up to 15% (from 22% to 7%).

CONCLUSIONS

The potential benefits of the 'high risk' approach to stroke prevention appear to be less than the 'population' approach, but both approaches are necessary and complementary. Indeed, the cost of implementing the 'high risk' approach may be less than the cost of the strokes prevented ($255 million; i.e. 15% of $1.7 billion).

Outcomes of stroke patients in Medicare fee for service and managed care

CONTEXT

Increasing numbers of Medicare beneficiaries have been enrolling in health maintenance organizations (HMOs) because HMO participation reduces out-of-pocket expenses, and the federal government views HMOs as a way to contain Medicare costs. However, results comparing outcomes and quality of care in HMOs vs fee for service (FFS) have been mixed, and outcomes after stroke have not been adequately assessed.

OBJECTIVE

To compare discharge destinations and survival rates following stroke in Medicare HMOs with similar FFS settings.

DESIGN

An observational study for 2 groups evaluating stroke patients' discharge destinations and survival times from the date of hospital admission.

SETTING

A total of 19 HMOs were selected from 12 states. The FFS sample was drawn from the same geographic areas.

PATIENTS

The sample included 402 HMO patients from 71 hospitals and 408 FFS patients from 60 hospitals. PROCESS AND OUTCOME MEASURES: Data were abstracted from medical records on demographics, clinical characteristics of stroke, comorbid illnesses, and discharge destinations following hospitalization. Data on survival were obtained from Medicare files and included 25 to 37 months of follow-up (median, 30.4 months, HMO; 31.1 months, FFS) from the date of hospital admission.

RESULTS

There were 109 patients who died during the hospitalization (49 HMO, 12.2%; 60 FFS, 14.7%), and a total of 410 patients had died by the end of follow-up (191 HMO, 47.5%; 219 FFS, 53.7%). Approximately one fourth of both groups had do-not-resuscitate orders (HMO, 25.4%; FFS, 27.9%; P=.68). After controlling for age, marital status, and characteristics of dependency at discharge, HMO patients were more likely than FFS patients to be sent to nursing homes (HMO, 41.8%; FFS, 27.9%; P=.001) and less likely to be discharged to rehabilitation hospitals or units (HMO, 16.2%; FFS, 23.4%; P=.03). At follow-up, no significant differences in relative risk of dying were found between HMO and FFS groups (relative risk, 0.96; 95% confidence interval, 0.73-1.26; P=.77).

CONCLUSIONS

Patients in Medicare HMOs who experience strokes are more likely to be discharged to nursing homes and less likely to go to rehabilitation facilities following the acute event. However, they have similar survival patterns compared with comparable patients in FFS settings after adjusting for other factors.

Cost of stroke in The Netherlands from a societal perspective

BACKGROUND AND PURPOSE

Cerebrovascular disorders are associated with a high level of morbidity and mortality and call for considerable resources. The objective of this study was to determine from a societal perspective the medical consumption (direct costs) and productivity losses (indirect costs) caused by cerebrovascular disorders in the Netherlands.

METHODS

This study can be characterized as a cost-of-illness study based on prevalence data. All data gathered refer to 1993. Cerebrovascular disorders are defined according to the International Classification of Diseases, 9th Revision (ICD-9) classification. Data from medical registrations and national statistics have been analyzed. For both direct and indirect costs, volume and cost components are presented. To test the likelihood of the assumptions, a sensitivity analysis was performed.

RESULTS

The cost of cerebrovascular disorders in the Netherlands in 1993 amounted to 2.5 billion Dutch guilders, of which 1.9 billion were spent on medical consumption. It was found that direct costs are generated mainly by the long-term care of inpatients (nursing homes and hospitals). The productivity losses were relatively low in comparison with other diseases, probably due to the fact that most patients with cerebrovascular disorders are elderly.

CONCLUSIONS

More than 3% of the Dutch annual healthcare budget is spent on patients suffering from cerebrovascular disorders. Costs in the future may be influenced by, among other things, demographic changes, new therapies, and cost-reduction programs introduced by the government.

Epidemiology and costs of acute hospital care for cerebrovascular disease in diabetic and nondiabetic populations

BACKGROUND AND PURPOSE

Little is known about the pattern of cerebrovascular disease (CVD) for diabetic and nondiabetic patients or about the cost of treatment for CVD in the United Kingdom. The purpose of this study was to extend previous work to describe the epidemiology and cost of acute care of CVD as a frequent comorbidity of diabetes in a UK population (408 000 people).

METHODS

Routine data describing inpatient care for a 4-year period were analyzed (financial years 1991/1992 to 1994/1995). These data had undergone record linkage to draw together records from the same patients. Cost estimates were determined by attributing a diagnosis-related group cost weight to each record. Mortality data from an overlapping period were supplied by the Office of Population Censuses and Surveys.

RESULTS

There were 11 196 CVD admissions (3.1% of all admissions). Of these, 7351 (66%) were primary diagnoses. These admissions were generated by 5358 patients (3904 primary diagnosis). For people with diabetes, the incidence rate was between 23 and 32.8 per 1000 per year compared with 2.4 to 3.3 per 1000 for the population as a whole, depending on the use of primary and subsidiary codes. The age-adjusted relative risk of stroke in diabetic men versus nondiabetic men was 3.70 (95% confidence interval, 3.53 to 3.88) and in women was 4.35 (95% confidence interval, 4.37 to 4.76). We describe other epidemiological relationships. The cost of CVD is between pounds 1.1 and pounds 1.6 million per 100 000 population-at least pounds 0.7 million per 100 000 for CVD alone. Approximately 15% of this value is related to diabetes, and an estimated 94% of this diabetes-related expenditure is potentially avoidable.

CONCLUSIONS

CVD represents a major source of expenditure for health services, and diabetes is confirmed as a major risk factor within this disease group. Differences between diabetic and nondiabetic inpatient patterns of CVD may reflect greater incidence of comorbidities in the former.

Acute stroke care and rehabilitation: an analysis of the direct cost and its clinical and social determinants. The Copenhagen Stroke Study

BACKGROUND AND PURPOSE

Stroke represents a major economic challenge to society. The direct cost of stroke is largely determined by the duration of hospital stay, but internationally applicable estimates of the direct cost of acute stroke care and rehabilitation on cost-efficient stroke units are not available. Information regarding social and medical factors influencing the length of hospital stay (LOHS) and thereby cost is needed to direct cost-reducing efforts.

METHODS

We determined the direct cost of stroke in the prospective, consecutive, and community-based stroke population of the Copenhagen Stroke Study by measuring the total LOHS in the 1197 acute stroke patients included in the study. All patients had all their acute care and rehabilitation on a dedicated stroke unit. Neurological impairment was measured by the Scandinavian Stroke Scale. Local nonmedical factors affecting the LOHS, such as waiting time for discharge to a nursing home after completed rehabilitation, were accounted for in the analysis. The influence of social and medical factors on the LOHS was analyzed in a multiple linear regression model.

RESULTS

The average LOHS was 27.1 days (SD, 44.1; range, 1 to 193), corresponding to a direct cost of $12.150 per patient including all acute care and rehabilitation. The LOHS increased with increasing stroke severity (6 days per 10-point increase in severity; P < .0001) and single marital status (3.4 days; P = .02). Death reduced LOHS (22.0 days; P < .0001). Age, sex, diabetes, hypertension, claudication, ischemic heart disease, atrial fibrillation, former stroke, other disabling comorbidity, smoking, daily alcohol consumption, and the type of stroke (hemorrhage/infarct) had no independent influence on LOHS.

CONCLUSIONS

Acute care and rehabilitation of unselected patients on a dedicated stroke unit takes on average 4 weeks. In general, comorbidity such as diabetes or heart disease does not increase LOHS. Efforts to reduce costs should therefore aim at reducing initial stroke severity or improving the rate of recovery.

Development and implementation of clinical pathways for stroke on a multihospital basis

This study describes the development and implementation of clinical pathways for stroke on a cooperative basis by three hospitals in the same community. The participating institutions developed separate pathways which met their respective organizational needs. This process occurred within separate hospital management structures with coordination among the institutions. They employed a common set of length of stay, quality and resource variables to evaluate the impact of the pathways.

Cost considerations in the pharmacological prevention and treatment of stroke

Stroke remains the leading cause of neurological disability and the third leading cause of death worldwide, consuming a large share of total healthcare expenditures. In this review, we discuss the cost effectiveness of stroke prevention for various risk factor-modification programmes and pharmacological interventions with aspirin (acetylsalicylic acid), ticlopidine and warfarin. Cost considerations and potential cost savings resulting from acute treatment are discussed for parenterally administered anticoagulants, such as heparin and nadroparin, and for intravenous thrombolysis with alteplase (recombinant tissue plasminogen activator; r-tPA). Patients with multiple risk factors for stroke require more aggressive prevention strategies which are associated with a greater risk of complications. The rates of complications, particularly intracerebral haemorrhage, should be kept low to achieve cost benefits for warfarin and alteplase. Reduced hospital length of stay is the key factor in the implementation of cost-effective stroke therapies. The analysis of future clinical trials of new stroke therapies should also include economic parameters, such as length of hospital stay and intensity of resource usage, to help guide formulary and therapeutic decision.

[Intensive care units for patients with cerebrovascular strokes. Are they worthwhile?]

In Portugal, strokes are the leading cause of mortality and one of the most important causes of hospital admission. An educational programme at several levels, involving the media, populations and health professionals, is necessary to reduce mortality and morbidity rates as well as the resulting high costs. According to international literature, stroke units have shown efficacy in the reduction of mortality, morbidity and costs. They are therefore worthwhile and it is time they were considered.

Treatment of embolic stroke as a medical emergency. Implications in a managed care environment

Encouraging innovations should be a concern of the providers/gatekeepers of health-care if lower health-care costs are to become a reality. Controlled prices and improper incentives will dramatically slow innovation in American medicine. For the vertically integrated health-care system providing capitated coverage, the aggressive treatment of stroke is a sound financial decision.