Disease Management Economics

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The Medicare Health Support Program

[By Staff Writer]

Doctor

The Medicare Health Support Program [MHSP] is a three-year experiment to determine if disease management [DM] can limit pathology and reduce expensive hospital visits for patients with chronic conditions. These typically include congestive heart failure, asthma and diabetes.

But, a new report suggests that this once highly-touted program may actually cost more than it saves.

Preliminary Outcomes

Since 2005, the Centers for Medicare and Medicaid Services [CMS] paid eight outside companies about $360 million to deliver DM services from nurses who periodically called patients to check on their diets, drug use, blood sugars, exercise patters and doctor appointments, etc.

Now, Medicare is still trying to figure out whether the program was able to keep folks healthier. Unfortunately, the New York Times reported that preliminary data indicates DM is unlikely to save money.

Mixed Opinions

Of course, at least two companies that specialize in disease management, Healthways and Health Dialog, are pressing Medicare to continue the project beyond the end of it term, saying the government mishandled the experiment.

But, CMS says the program so far has not reduced medical bills enough to offset the fees the companies are charging the government [about $2,000 per patient/per year].

Assessment

Final MHSP accounting is likely to come next year. And so, it seems that in this case, education and DM might not be “the best prescription.”

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One Response

  1. Epic Fail?

    After being in disease management and working as a nurse for more than a decade, I believe that DM is a total failure. It re-allocates costs, and essentially out-sources the work to a low-cost bidder.

    Even if costs were neutral – my anecdotal evidence is that it is “touchy feely” but does nothing to improve care quality. Educating patients is not the answer. We still smoke, drink, sex and dope it up, and are overweight. But, perception of DM is reality and some fools are easily goaded into thinking it works.

    DM appears to be just another program seeking legitimacy and governmental sponsorship to reap federal funds from the tax-payers. And, the bureaucracy is amazing.

    Susan

    Like

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