Managed Care

 

How managed care affects hospitalization

MANAGED CARE March 1996. © MediMedia USA
Managed Care Outlook

How managed care affects hospitalization

As managed care's share of a metropolitan market grows, hospitalization costs are more tightly controlled and hospital lengths of stay come down. That's what common sense suggests, and that's what a recent study bears out. But there are anomalies. In Milwaukee and Miami, for example, higher-than-average hospital costs coexist with fairly heavy managed care penetration. The maps below show how 20 of the nation's largest metropolitan areas fared in the study, which drew on a data base of 11.7 million patients discharged from 3,700 acute care hospitals.

Hospital costs by metropolitan area, vs. national average

ATLANTA -2.41
BALTIMORE +0.38
BOSTON -6.45
CHICAGO +6.34
CLEVELAND +1.02
DALLAS +3.94
DETROIT -2.66
HOUSTON +32.82
LOS ANGELES -16.15
MIAMI +10.47
MILWAUKEE +13.60
MINNEAPOLIS-ST. PAUL -3.61
NEW YORK -9.28
PHILADELPHIA +0.23
PITTSBURGH +2.67
ST. LOUIS +7.49
SAN DIEGO -10.00
SAN FRANCISCO -32.24
SEATTLE -18.46
WASHINGTON +6.21

Hospital lengths of stay by metropolitan area, vs. national average

ATLANTA -7.70
BALTIMORE -2.77
BOSTON -2.41
CHICAGO -3.76
CLEVELAND -5.70
DALLAS -14.13
DETROIT +4.65
HOUSTON +2.14
LOS ANGELES -17.81
MIAMI -2.81
MILWAUKEE -0.54
MINNEAPOLIS-ST. PAUL -18.92
NEW YORK +50.07
PHILADELPHIA +11.50
PITTSBURGH +3.69
ST. LOUIS -5.06
SAN DIEGO -26.07
SAN FRANCISCO -20.32
SEATTLE -25.54
WASHINGTON +8.92

Percentages are adjusted for severity differences.

SOURCE: KPMG PEAT MARWICK LLP, COSTA MESA, CALIF. (CALL 800-243-1397 FOR A COPY OF THE STUDY'S EXECUTIVE SUMMARY.)

MANAGED CARE March 1996. ©1996 Stezzi Communications

Meetings

Private Health Insurance Exchanges Conference Washington, D.C. October 7–8, 2014
National Healthcare Facility Management Summit Palm Beach, FL October 16–17, 2014
National Healthcare CFO Summit Las Vegas, NV October 19–21, 2014
National Healthcare CXO Summit Las Vegas, NV October 19–21, 2014
Innovative Member Engagement Operations For Health Plans Las Vegas, NV October 20–21, 2014
4th Partnering With ACOs Summit Los Angeles, CA October 27–28, 2014
2014 Annual HEDIS® and Star Ratings Symposium Nashville, TN November 3–4, 2014
PCMH & Shared Savings ACO Leadership Summit Nashville, TN November 3–4, 2014
World Orphan Drug Congress Europe 2014 Brussels, Belgium November 12–14, 2014
Medicare Risk Adjustment, Revenue Management, & Star Ratings Fort Lauderdale, FL November 12–14, 2014
Healthcare Chief Medical Officer Forum Alexandria, VA November 13–14, 2014
Home Care Leadership Summit Atlanta, GA November 17–18, 2014