
The Hospice e-News
Week of April 17, 2006
…a service of
MEDPAC MAY RECOMMEND
HOSPICE PAYMENT CHANGES
MedPAC is considering recommending changes to the
hospice payment system, according to an article in Eli’s Home Care Week, in its June report to Congress. The article reports that there will likely be
no adjustments based on case mix, but that payments would probably be
redistributed from the middle days of a hospice stay to the beginning and end.
One MedPAC staffer says that a
RAND’s analysis showed that more intensive care was delivered in the first and last days of a patient’s hospice stay, particularly in the last three days. But consultant Beth Carpenter says that changing payments to reflect that may harm hospices that are accepting many non-cancer-diagnosis patients. “This movement of the hospice population to other types of diagnoses results in longer lengths of stay and a whole lot of days in between start of care and the final days. As lengths of stay move higher, a lower rate for the intervening days could be potentially damaging to agencies that manage the care of longer stay patients,” she says.
John Mahoney, principal of New Jersey’s Summit Business Group, says, “The beauty of the current system is its simplicity. I’d be reluctant to corrupt that simplicity just for some marginal tweaking.” Carpenter says, “Drawing conclusions from the report of one stand-alone for-profit chain is interesting for the sake of discussion, but not appropriate for making decisions on funding schemes. Profitability is influenced by census size, length of stay, diagnosis mix, intensity of services, level of care decisions, etc.,” she says.
If MedPAC does
recommend changes to Congress, the following are the “crucial data” that the
recommendations will be based on, the article says.
* Medicare will spend $9.8 billion on hospice this fiscal year and payments are expected to increase 9% per year through 2015.
* Medicare pays for 88% of all hospice care.
* Routine hospice days accounted for 93% of billed hospice services in 2003.
* Twenty-two percent of fee-for-service Medicare beneficiaries elected hospice in 2000, compared to 31% in 2004.
* Between 2000 and 2004, the number of hospice days billed doubled, the number of hospice users grew by half and payments increased 130%.
* Between 2000 and 2004, the median length of stay remained at about two weeks, but the mean length of stay increased from 51 days to 67.
* In 2003, fewer than half of all hospice patients were diagnosed with cancer. Non-cancer patients have longer average lengths of stay.
* In 2001, 31% of hospices were free-standing for-profits; in 2006, 47% are.
* Staff at MedPAC found research showing hospice profit margins: the GAO calculated them at 10%, NHPCO at 11-19% and the Journal of Palliative Medicine at 2% for non-profits and 18% for for-profits. (Eli’s Home Care Week, 3/20)
PALLIATIVE CARE AT A
“TIPPING POINT”
The number of
palliative care programs in US hospitals increased 63% between 2000 and 2003,
from 632 to 1,027. Dr. Sean Morrison,
primary author of a study reported in Family
Practice News, says that the study “demonstrates the increasing recognition
by hospitals in the
Morrison, who is vice chair of research in the department of geriatrics at Mt. Sinai Medical Center, says that palliative care is “becoming part of what should be routine medical care. We have seen growth from a fraction of hospitals having hospital-based palliative care programs to where now 1 in 4 hospitals have a program. I'm not going to be satisfied until 100% of hospitals have [a palliative care program], but for patients and families, I think we're at the point where they do have access to this type of care. I think we are at a tipping point.”
The researchers found
that palliative care programs are more prevalent in hospitals in the Northeast,
Pacific and Mountain areas of the country than in other geographic areas. The likelihood that a hospital has a palliative
care program directly correlates with the number of hospital beds and acute
care beds. VA hospitals and
not-for-profit hospitals are more likely than others to have programs. Other factors which correlate positively with
the presence of palliative care programs are membership in the American
Association of Medical Colleges Council of Teaching Hospitals and being a
cancer hospital approved by the
Dr. Daniel B. Hinshaw, medical director of the palliative care consult team at the Ann Arbor VA Medical Center, says that the increase in the number of palliative care programs “gives us an opportunity to keep that message out there that this [component of care] is not just a matter of fighting disease. It’s really about caring for the whole person who might have a bad disease.”
Dr. Geoffrey P. Dunn,
co-chair of the American College of Surgeons’ Palliative Care Task Force, says
that the “current funding landscape” for hospital-based palliative care
programs is “tenuous,” in spite of several demonstration projects proving their
cost-effectiveness. Dunn is also
concerned about finding enough physicians to staff the programs, particularly
with the expected approval of hospice and palliative medicine as a subspecialty
by the American Board of Medical Specialties.
A financial calculator that helps estimate the cost of a palliative care program and possible savings for a hospital is online at www.capc.org. Look for the “CAPC Impact Calculator” under the “Tools” section. (Family Practice News, 2006;36(5):1)
HOSPICE AND PALLIATIVE
MEDICINE SUBSPECIALTY ENDORSED
An article in Family Practice News says, “The pending
designation of hospice and palliative medicine as a subspecialty by the American
Board of Medical Specialties is expected to hasten the spread of palliative
medicine into routine medical care, and may boost the number of physicians who
train and seek certification in this field.”
In September, 2005, the American Board of Internal Medicine (ABIM) applied to the American Board of Medical Specialties (ABMS) to “make hospice and palliative medicine a subspecialty of internal medicine.” Co-sponsors with ABIM are the American Board of Family Medicine, the American Board of Anesthesiology, the American Board of Psychiatry and Neurology, the American Board of Surgery and the American Board of Physical Medicine and Rehabilitation.
The ABMS will probably decide favorably in September, 2006, with the first certification examinations to follow in 2008. (Family Practice News, 2006;36(6):78)
PUBLIC POLICY NOTES
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* The
* The
The
OTHER NOTES
* Resources for the Community Engagement Campaign for the TV series, “A Lion in the House,” are available at www.itvs.org/outreach/lioninthehouse/resources.html. All campaign materials are provided at no cost to groups working with the campaign. “A Lion in the House,” which will air on PBS stations in June, tells the stories of five young cancer patients over a six-year period. (A Lion in the House Website)
* An article in Atlanta Hospital News featured Abbey Hospice as an example of the
ways rural hospices meet challenges never dreamed of by urban hospices. In some cases, nursing assistants fill buckets
of water at their homes to use in bathing patients who have no running
water. Patients have less privacy,
because neighbors recognize the hospice nurse’s car. Friends may stop the hospice staff at the
store or at church to ask how a patient is.
But less privacy can also be a help, as in the case of one Abbey Hospice
patient who eats breakfast at the Waffle House every morning. If she doesn’t eat well or needs help getting
back to her car, the waitresses call her family. (
* Much of the work of the Ethics Institute of the
* Dr. Joseph Fennelly, the physician who cared for Karen Ann Quinlan, says, “The best way to address compassionate end-of-life care is to develop pathways and algorithms that direct and control caretaker decisions.” Fennelly writes that “Thirty years after the first right- to-die decision helped resolve Karen's plight, there exists more compassionate care. It has helped return meaning to medicine by resurrecting the centrality of the physician-patient relationship.” (The Star-Ledger, 3/31)
* CBS’s The Early Show featured a segment on methadone, now being prescribed as a painkiller, and the headline for the show was “Methadone kills more children than any other drug.” Reporter Tracy Smith says that methadone “is increasingly being prescribed as pain medicine in place of headline-making drugs like OxyContin. Teenagers can find it in their parents’ medicine chests, sometimes with fatal results.” Jim McDonough, former director of the Florida Office of Drug Control, says, “The one prescription drug that keeps going up in terms of the absolute numbers of death and the rates of inquiries, particularly for children, is methadone.” (CBS’s The Early Show, 4/10)
* Grace Farnan, a 12-year-old
from
* Syndicated columnist Froma Harrop says that the time has come for a frank conversation
about who pays for end-of-life care. Harrop writes, “Medicaid, the health-insurance plan for the poor, is
supported by federal and state taxpayers.
Medical technology can keep people with no hope of recovery floating
between life and death for decades. The taxpayers
have a right to set limits on how much of this they will finance.” Harrop says that if
taxpayers do not feel obliged to spend large amounts of money caring for people
who will never wake up, “then the time has come to question whether even airtight
living wills should be the last word.” (The
* Dr. Ravindra Nathan writes of a 90-year-old patient of his whose relatives, rather than seeking palliative care, insisted on surgery to remove a large, probably malignant, abdominal mass. After a very rocky post-surgical period, she died six days after admission, having accrued a hospital bill of more than $95,000. Nathan says she probably didn’t want that but didn’t make her wishes clear with an advance directive or healthcare proxy. Nathan says, “There’s no point indulging in expensive last-ditch efforts to try to save a life that’s beyond salvage” and that “conversations about death and dying are supremely difficult, but we must initiate them.” (Medical Economics, 3/3)
Thanks to Kathy McMahon and
Don Pendley for contributions.
Glatfelter Insurance
Group is the national sponsor of Hospice News Network for 2006. Glatfelter Insurance Group provides property
and liability insurance for hospices and home healthcare agencies through their
Hospice and Community Care Insurance Services division. Ask your insurance agent to visit their
website at www.hccis.com.