Showing posts with label Health Care Cost. Show all posts
Showing posts with label Health Care Cost. Show all posts

RISING COST OF HEALTHCARE IN THE UNITED STATES

William Matzner, MD
William Matzner, MD, Simi Valley, California

A recent article in the Wall Street Journal discussed the continued rise of healthcare cost in the US. By 2025 it is projected that healthcare costs will be at 18% of the GDP.  Yet research has shown that among the Organization for Economic Cooperation and Development (OECD) member countries, the US has lower life expectancy at birth and higher mortality for death from respiratory disease, coronary artery disease and diabetes than the OECD average.

A key question becomes how can we decrease the cost of healthcare while simultaneously maintaining or improving the effectiveness of treatment programs? How can an organization health system, ACO, medical group, insurer, government, measure this so as to compare choices?

This is where Cost Effectiveness Analysis (CEA) can provide clear metrics to help determine how differing approaches to healthcare programming and delivery will affect policy change. In chronic diseases such as Diabetes and Coronary Artery Disease, Markov modeling has shown to be an ideal method to determine the cost effectiveness of different treatment approaches over time. One can compare a newer method or medication, or both, to a more standard treatment and see how the cost effectiveness accumulates over time.

Since CEA uses dollars per Quality Adjusted Life Years (QALY), one can quantitatively analyze how effective different treatments or methods are toward the particular disease. This way, policies can be chosen which not only cost less, but can help patients the most over time. It takes a subjective evaluation like effectiveness and turns it into a measurable metric researchers and policy developers can analyze.

The application of CEA using Markov modeling will provide clearer guidance as to how treatment policies should be elucidated, and in the long run can help reduce healthcare costs overall while maintaining and even improving the quality of healthcare delivery and outcomes. It can also be used to quantitatively monitor the effectiveness of new policies once implemented. 

About William L. Matzner, M.D., PhD, FACP 

Dr. William Matzner works in the area of healthcare economics consulting at Healthcare Analytics, LLC, in California. He graduated Phi Beta Kappa from Stanford University. He received his M.D. with Honors from Baylor College of Medicine. In 1988, he was the Solomon Scholar for Resident Research at Cedar Sinai Medical Center. Dr. Matzner subsequently was awarded a PhD in Neuro Economics from Claremont Graduate University. He is board certified in Internal Medicine and Palliative Medicine. He has researched and published extensively on the issue of reproduction and immunology in medical literature. He has been in private practice since 1989, specializing in Reproductive Immunology and Internal medicine. 

Consulting Website: https://healthcareanalytics.biz 
News: https://hippocratesguild.com/dr-william-matzner 
News: https://medicogazette.com/dr-william-matzner

William Matzner, MD (Simi Valley, California), has been practicing medicine since 1989, Internal Medicine and Reproductive Immunology. M.D. with Honors from Baylor College of Medicine.

MONITORING PROGRAMS AND BUDGETING IN THE NEW HEALTHCARE ENVIRONMENT

William Matzner, MD
Dr. William Matzner, Simi Valley, California
The healthcare delivery environment has changed dramatically over the last several years. Most notably is the emphasis on appropriate limitation of medical resources to those patients that truly require it by set criteria. Healthcare organizations now face unique challenges in this new environment to deliver appropriate and quality healthcare yet remain profitable. How can they determine if what they are doing is economically beneficial? Should they continue the same programs and how much money should they devote to each program to remain profitable? How can they determine this analytically?

This is a perfect scenario where cost effectiveness analysis (CEA) can provide the appropriate guidelines to make good economic decisions. In CEA, one sets up a decision tree with two or more scenarios to compare which scenario (branch) is the best economically.  CEA also has the added advantage of building the effectiveness of each decision branch into the model.

For example, suppose that your organization has a CHF disease management program as a supplement to the physician’s offices to help manage these chronically ill patients. A CEA decision tree can compare the costs to maintain CHF patients without the program, versus with the program. If the patients are clinically better with the program, this can be built into the model using Quality Adjusted Life Years (QALY). A CEA model can tell how much savings one program can bring versus another program or no program at all. This information can help in not only deciding whether to keep such a program, but also how much one can invest in the program for economic benefit to the healthcare organization. This can be critical to budgeting for subsequent years. 

This is only one example of how CEA can help healthcare organizations in medical decision making and budgeting of existing healthcare programs. 

About William L. Matzner, M.D., PhD, FACP 

Dr. William Matzner works in the area of healthcare economics consulting at Healthcare Analytics, LLC, in California. He graduated Phi Beta Kappa from Stanford University. He received his M.D. with Honors from Baylor College of Medicine. In 1988, he was the Solomon Scholar for Resident Research at Cedar Sinai Medical Center. Dr. Matzner subsequently was awarded a PhD in Neuro Economics from Claremont Graduate University. He is board certified in Internal Medicine and Palliative Medicine. He has researched and published extensively on the issue of reproduction and immunology in medical literature. He has been in private practice since 1989, specializing in Reproductive Immunology and Internal medicine. 

Consulting Website: https://healthcareanalytics.biz 
News: https://hippocratesguild.com/dr-william-matzner 
News: https://medicogazette.com/dr-william-matzner

William Matzner, MD (Simi Valley, California), has been practicing medicine since 1989, Internal Medicine and Reproductive Immunology. M.D. with Honors from Baylor College of Medicine.

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