• About
  • Masthead
  • License Content
  • Advertise
  • Submit Press Release
  • RSS/Email List
  • Write for us
  • Contact us
2 Minute Medicine
No Result
View All Result

No products in the cart.

SUBSCRIBE
  • Specialties
    • Cardiology
    • Chronic Disease
    • Dermatology
    • Emergency
    • Endocrinology
    • Gastroenterology
    • Imaging and Intervention
    • Infectious Disease
    • Nephrology
    • Neurology
    • Obstetrics
    • Oncology
    • Ophthalmology
    • Pediatrics
    • Preclinical
    • Psychiatry
    • Public Health
    • Pulmonology
    • Rheumatology
    • Surgery
  • Wellness
  • Classics™
    • 2MM+ Online Access
    • Paperback and Ebook
  • Rewinds
  • Visual
  • Partners
    • License Content
    • Submit Press Release
    • Advertise with Us
  • AccountLog-in/out
    • Subscribe
    • Sign-in
    • My account
2 Minute Medicine
  • Specialties
    • Cardiology
    • Chronic Disease
    • Dermatology
    • Emergency
    • Endocrinology
    • Gastroenterology
    • Imaging and Intervention
    • Infectious Disease
    • Nephrology
    • Neurology
    • Obstetrics
    • Oncology
    • Ophthalmology
    • Pediatrics
    • Preclinical
    • Psychiatry
    • Public Health
    • Pulmonology
    • Rheumatology
    • Surgery
  • Wellness
  • Classics™
    • 2MM+ Online Access
    • Paperback and Ebook
  • Rewinds
  • Visual
  • Partners
    • License Content
    • Submit Press Release
    • Advertise with Us
  • AccountLog-in/out
    • Subscribe
    • Sign-in
    • My account
SUBSCRIBE
2 Minute Medicine
Subscribe
Home All Specialties Public Health

Institute of Medicine identifies cost variation between geographic regions

byAndrew Bishara
July 28, 2013
in Public Health
Reading Time: 3 mins read
0
Share on FacebookShare on Twitter

Image: PD

1. Institute of Medicine reports a correlation between geography and cost and quality data in the Medicare population.

2. On average there is a 42% difference in cost per Medicare member between high and low cost regions.

Evidence Rating Level: 2 (Good) 

Study Rundown: For over three decades, there have been variations in Medicare spending across the US for unknown reasons. In 2010 the Department of Health and Human Services requested the Institute of Medicine investigate the role of geographic variation in health care spending and quality for Medicare populations. The committee formed to study this question gathered claims information and conducted regression and correlation analyses to understand associations between geography, cost, quality, and utilization for over 47 million Americans.

Researchers found that geography was significantly correlated to cost and quality variations in the US, but also found there to be variation within regions as well – revealing low and high cost providers within a geographic region. Regions at the 90th percentile of cost spent on average 42% more per Medicare member than regions in the 10th percentile. Researchers found no consistent correlation between quality and spending or utilization. The committee recommends that CMS continue to experiment with payment and quality reforms to lower costs that are directed at decision makers rather than institute area wide reimbursement adjustments, potentially disadvantaging current low cost providers.

Click to read the study in the Institute of Medicine

RELATED REPORTS

Primary care physicians underuse Medicare prevention and coordination codes

Accelerated approval drugs incur significant fee-for-service Medicare costs

#VisualAbstract: Melanoma is projected to remain an important global health concern in 2040, with high incidence rates in fair-skinned populations of European descent

Click to read an accompanying editorial in Health Affairs

In Depth [regression analysis]: Interestingly, when researchers compared cost variations by geography in the commercial market, there was far less difference. Costs were more equal across geographic regions in the private sector. Additionally, digging deeper into service specific associations, researchers found that geographic variations in cost were most dramatic in post-acute care and acute care services, where if there were no variation in these fields, spending would drop by an estimated 89%. The data revealed that over time, variation in spending persists by geographic region. High cost regions in 1992 have remained high cost in 2010.

Researchers make several recommendations in the report to legislators and CMS, including continuing to encourage patient-centered medical homes, shared savings programs, bundled payments and general incentives for physicians to coordinate care, share data, and make quality and cost more transparent. The conclusions of this study were preceded by a public data file opened on June 3, 2013 by CMS providing public transparency into billed and paid amounts for Medicare services in hospitals across the country. The strength of this study is its enormous scope and size and the amount of CMS data that has informed the recommendations and conclusions.

By Jordan Anderson and Andrew Bishara

More from this author: Slowdown in healthcare costs linked to economic and clinical factors; Economic incentives alter nutritional patterns in South Africa; Emerging coronavirus found to spread in healthcare facilities; CT scans linked to cancer risk in children; Slowdown in healthcare costs linked to economic and clinical factors; Breast implants linked with later stage breast cancer, mortality; Contraband tobacco leads to reduced smoking cessation; Circulating tumor DNA used to monitor metastatic breast cancer; Salt intake linked with autoimmune disease; Continuity in diabetes provider improves outcomes and decreases costs; 

© 2013 2minutemedicine.com. All rights reserved. No works may be reproduced without written consent from 2minutemedicine.com. Disclaimer: We present factual information directly from peer reviewed medical journals. No post should be construed as medical advice and is not intended as such by the authors or by 2minutemedicine.com. PLEASE SEE A HEALTHCARE PROVIDER IN YOUR AREA IF YOU SEEK MEDICAL ADVICE OF ANY SORT. Content is produced in accordance with fair use copyrights solely and strictly for the purpose of teaching, news and criticism. No benefit, monetary or otherwise, is realized by any participants or the owner of this domain. 

Tags: cmscost regionsDepartment of Health and Human Servicesgeographic variationhealthcare costshospital costsinstitute of Medicinemedicarespending
Previous Post

Safer in the big city: Injury-related deaths more common in rural areas

Next Post

Breast cancer mutations linked with nodal metastases

RelatedReports

Parental debt influences child socioemotional well-being
Chronic Disease

Primary care physicians underuse Medicare prevention and coordination codes

July 11, 2022
Estrogen withdrawal associated with perimenopausal depression
Oncology

Accelerated approval drugs incur significant fee-for-service Medicare costs

June 22, 2022
#VisualAbstract: Melanoma is projected to remain an important global health concern in 2040, with high incidence rates in fair-skinned populations of European descent
StudyGraphics

#VisualAbstract: Melanoma is projected to remain an important global health concern in 2040, with high incidence rates in fair-skinned populations of European descent

April 14, 2022
#VisualAbstract High cost of healthcare was the highest patient-reported barrier to accessing outpatient dermatologic care
StudyGraphics

#VisualAbstract High cost of healthcare was the highest patient-reported barrier to accessing outpatient dermatologic care

November 27, 2021
Next Post
One-year of Herceptin preferable to two-year regimen

Breast cancer mutations linked with nodal metastases

Lower vulvar cancer-related mortality in African Americans

Lower vulvar cancer-related mortality in African Americans

Classics Series, Landmark Trials in Medicine

The MIRACL trial: Atorvastatin reduces recurrent ischemia post-ACS [Classics Series]

License Our Award-Winning Physician-Written Medical News and Visual Abstracts

2 Minute Medicine is the leading authoritative medical news licensing service, and the only with reports written by practicing doctors.

LICENSE CONTENT

2MM+ Premium Access

No ads & unlimited access to all current reports, over 9000 searchable archived reports, visual abstracts, Weekly Rewinds, and the online edition of The Classics Series™ textbook.

Subscription Options
2 Minute Medicine

2 Minute Medicine® is an award winning, physician-run, expert medical media company. Our content is curated, written and edited by practicing health professionals who have clinical and scientific expertise in their field of reporting. Our editorial management team is comprised of highly-trained MD physicians. Join numerous brands, companies, and hospitals who trust our licensed content.

Recent Reports

  • Ovarian cancer screening does not reduce mortality [Classics Series]
  • #VisualAbstract: Sensorimotor retraining improves pain intensity in patients with chronic lower back pain
  • LI-RADS outlines standards for liver imaging studies assessing HCC [Classics Series]
License Content
Terms of Use | Disclaimer
Cookie Policy
Privacy Statement (EU)
Disclaimer

© 2021 2 Minute Medicine, Inc. - Physician-written medical news.

  • Specialties
    • Cardiology
    • Chronic Disease
    • Dermatology
    • Emergency
    • Endocrinology
    • Gastroenterology
    • Imaging and Intervention
    • Infectious Disease
    • Nephrology
    • Neurology
    • Obstetrics
    • Oncology
    • Ophthalmology
    • Pediatrics
    • Preclinical
    • Psychiatry
    • Public Health
    • Pulmonology
    • Rheumatology
    • Surgery
  • Wellness
  • Classics™
    • 2MM+ Online Access
    • Paperback and Ebook
  • Rewinds
  • Visual
  • Partners
    • License Content
    • Submit Press Release
    • Advertise with Us
  • Account
    • Subscribe
    • Sign-in
    • My account

© 2021 2 Minute Medicine, Inc. - Physician-written medical news.