Wednesday, March 26, 2014

Does the U.S. Need to Overhaul our Healthcare to Emulate the Brittish or the Germans?



(Note: After importing the information I was not able to immediately post graphs. I will post at a later date.)
Some of the issues when it comes to United States Healthcare are that the cost is too high. The number given many times when it comes to uninsured in the United States news articles will tell you that the number is about 47 million people. According to the Public Broadcasting Station (PBS) there are 47 million uninsured in the United States. (PBS 2008) This can be quite alarming when you believe that 47 million people are sick or unhealthy because there is no healthcare affordable for them.  To add to the situation the annual cost of healthcare $2.7 Trillion Dollars according to USNews. (USNews 2013) Then you look at the the estimates according to Pricewaterhousecoopers are that over $1.2 Trillion dollars is wasted in the United States Healthcare system.  (PwC 2008) 

Reading the previous information can lead to the idea that there is a lot of money wasted and there are a lot of people without health care.  Another figure is that the US has about 316 million people according the CIA World Factbook. (CIA 2013) With a population of 316 million approximately so per capita the spending in the U.S. is nearly double the next biggest spender country. The U.S. spends about $8500 per capita and yet still has comparable or higher incidents per capita in obesity, high blood pressure, diabetes, and other illnesses and diseases.  Odier, N. (2010). Compare this with the U.S. European neighbors. Instead of having people that are uninsured everyone has a, “right” to free healthcare.  According to some reports, the US (while the biggest spender) has the worst healthcare indicators in developed nations?  Does the United States need to implement what the Germans have in healthcare- a dual payer system? Do we need to implement things from the United Kingdom- where the government pays for everything? Odier, N. (2010).  I want to examine these healthcare systems to see if there is anything worth implementing in the United States to make our healthcare better in terms of access to care, quality of care, or the efficient utilization of resources.

The U.S. Healthcare system is one that does have its issues but is fundamentally different than European Healthcare Systems.

One European model is usually some form of Healthcare called the Beveridge health system implemented after World War 2. Denmark, Finland, Ireland and Sweden have founded their health systems on this model. This is a Social Insurance System based on the Three U’s:
·         Universality : Every citizen is protected against all social risks regardless of employment status.  
·         Unit : A different administrative agency handles each type of risk.
·         Uniformity : Each individual receives services according to his or her needs, regardless of income. 

Then there is the Bismarck health system Austria, Belgium, France, Luxembourg and the Netherlands use a similar form of the Bismarck health system. In the Bismarck. Established around 1883 by Chancellor Otto von Bismarck the German healthcare system was for the workers. Under this system they rely on public health insurance funded by workers and business. This is supplemented by private insurance.  The system is also divided between ambulatory care and hospital care. There is a portion of costs that is covered by private insurance. Odier, N. (2010). 

According to one article, “The US health system is a prime example of a market-based health-care system in need of reform. Compared to systems of major European countries, the US system generally has lower quality care despite higher costs and covers a smaller percentage of the population. Unlike European models, which provide governmentally centralized care, the US system is decentralized and primarily operates on a contract basis between private actors (private insurance companies, health-care institutions and health-care professionals and clients seeking care). Hence, the challenge before the United States remains: How in these conditions can a reform be proposed that would decrease costs, increase quality and expand coverage to include as many people as possible?  Odier, N. (2010).

After reading the highlights abstracts of articles such as the one in the Journal of Medical Marketing one can quickly come to a conclusion that there is something monumentally wrong with the U.S. Healthcare system. But why? What is used to compare the systems?
One entity where a majority of comparative data comes from is the Organization for Economic Co-Operation and Development or OECD. Since 1961 the OECD has published information that records several indicators of its participant’s health key indicators from percent of GDP to mortality, obesity, etc. The Organization for European Economic Cooperation (OEEC) was established in 1948 to run the US financed Marshall Plan for reconstruction of the European continent. Canada and the United States joined the OEEC members in signing the new OECD Convention on December 14, 1961 when the Convention entered into force.  The mission of the OECD is to promote policies that will improve the economic and social well being of the world.  (OECD 2013) 

Cost:

When you examine the Beveridge systems and countries United Kingdom, Denmark, Finland, Ireland and Sweden you will find that the per capita spending for these countries as a component of public expenditures is slightly lower than the United States,  while the Bismarck health systems Austria, Belgium, France, Luxembourg and the Netherlands are closer to what the United State spend. What this shows is that our public spending on healthcare is at least close to what the public spends. 


Another interesting find is the amount of out of pocket expenses as a percent of total expenditure. With the exception of France and Germany the U.S. pays less as a percentage of total spending. 

                             

The argument for some reports is that based on spending the outcomes of heart complications, high blood pressure, and obesity the U.S. system lags behind. Odier, N. (2010).  These are complications that are usually the result of poor choices versus a healthcare issue that can be cured by visiting the Doctor.  When you visit the National Institute of Health Website you will find that treatment for high blood pressure is, “adopting healthy lifestyle habits is an effective first step in preventing and controlling high blood pressure. If changes alone are not effective in keeping your pressure controlled, it may be necessary to add blood pressure medications.” (NIH 2013) 

When you visit the World Health Organization website and look up obesity you find the following:
The fundamental cause of obesity and overweight is an energy imbalance between calories consumed and calories expended. Globally, there has been:
           an increased intake of energy-dense foods that are high in fat; and
           an increase in physical inactivity due to the increasingly sedentary nature of many forms of work, changing modes of transportation, and increasing urbanization. (WHO 2013) 

Quality/Access:
The majority of hospitals in the US are the not for profit hospitals comprising 50.7% of the total. The government run hospital rate is around 18% not accounting for the federal, prison, psychiatric, or long term care facilities.  While the proprietary for profit hospitals make up approximately 17.9% of the hospitals in the US.  (AHA 2013) 

Another indicator of the quality of care could be wait times to receive appropriate care according to an OECD survey in 2010 the only country to have shorter wait times was Germany the survey was Waiting time of four weeks or more for a specialist appointment. In this survey was just access waiting times of four weeks or more to see a specialist this is not for treatment. (OECD 2 2013) The waiting times of four months or more for Elective surgery as collected by the OECD is a measure tracked that Germany and the Netherlands were the two countries that had a lower percentage of wait times.  A quick regression analysis of the 10 countries would show a negative correlation of .19% or an r^2 of .0019. This means that .19% of the variance in the wait times is explained by the variance in amount of physicians.

 Source: OECD Health Data 2013 http://stats.oecd.org/Index.aspx?DataSetCode=SHA

Additionally using OECD data for 19 countries to assess the relationship between physician supply and healthcare outcomes, we have determined that there is no association between avoidable mortality and overall physician supply. (NIH 2009)

What we have seen using the same data from the OECD is a few things.
           Public expenditure on health, /capita, US$ purchasing power parity the U.S. is not spending the most. Nor is the spending more than $1000 per capita different than the following 10 countries in the OECD.
           Typical Comparisons of Obesity and High Blood pressure are not conditions that are a result of lack of Medical Care. While medical care can improve the situation there is not a cure for these lifestyle choices.
           Physician supply does not directly correlate to quicker access.


Accountable Care Organizations ACOs can include hospitals, specialists, post-acute providers and even private companies like Walgreens. (Kaiser 2011) An instance of solutions to cost are retail clinics. Retail Clinics can be used to provide savings if 10% of patients went to retail clinics for outpatient care Out of pocket expenditure per capita according to the OECD is $987.4 further, About 14-27 percent of all emergency department visits could take place at retail clinics and urgent care centers, with a potential cost savings of approximately $4.4 billion annually. (Rand 2013)  

One of the larger opportunities in the U.S. is to save money in prevention with behavior based care such as obesity as well as measuring following instructions from physicians. A German Structured Outpatient Education and Treatment Programs for Patients with Diabetes Mellitus and/or Hypertension report in 2003 results demonstrate the practicability and effectiveness of the implementation of programs as an integral part of disease management in routine primary healthcare for patients with diabetes mellitus or hypertension.  (Gruesser 2003) In Germany laws have been passed the most recent healthcare reform under the motto ‘prevention before treatment, rehabilitation, and long term care’ came into force on 1 April 2007 (Schmidt 2007). Even if this information does not directly relate to cash savings this could have a significant impact on the Obesity epidemic in the United States.                              


The OECD collect data across countries to measure healthcare systems but the inputs are different to the point where more data could be sifted through to make better correlations. Is it possible that one solution will solve the multiple problems facing the United States healthcare? The thing that can be taken away from the comparisons is that each country can benefit from using these benchmarks to compare their histories of performance.  According to the Commonwealth Fund England and the United States are addressing similar challenges, including how to get more value out of health care spending, and both nations are experimenting with techniques to steer clinicians, institutions, and patients toward value-enhancing behaviors. (CWF 2010) Some of the solutions to the problem in the United States healthcare problems are to continue to focus on value enhancing behaviors access, and quality. When looking at the data provided by the OECD and the many citations by multiple publications and journals the U.S. Healthcare system can improve, however, to completely adapt to another countries success models based upon limited segments of highlighted information collected by the OECD misses correlations to make effective policy changes.
  

References

American Hospital Association (2013). Fast Facts on US Hospitals. Retrieved from:

Central Intelligence Agency. (2013). The World Factbook : United States:
People and Society: Population. Retrieved from Website https://www.cia.gov/library/publications/the-world-factbook/geos/us.html

Commonwealth Fund. (2012). Health Care Reforms in the USA and England: Areas for
Useful Learning. Retrieved from Website http://www.commonwealthfund.org/Publications/In-the-Literature/2012/Oct/Health-Care-Reforms-in-the-USA-and-England.aspx

Gruesser, M. (2003). Structured Outpatient Education and Treatment Programs for
Patients with Diabetes Mellitus and/or Hypertension: The German Experience. Disease Management & Health Outcomes, 11(4), 217-223.

Kaiser Health News (2013). FAQ On ACOs: Accountable Care Organizations,
Explained Retrieved from Website http://www.kaiserhealthnews.org/stories/2011/january/13/aco-accountable-care-organization-faq.aspx

National Institute of Health. (2013). Treatment of High Blood Pressure. Retrieved from
NIH Website http://www.nhlbi.nih.gov/hbp/treat/treat.htm

National Institute of Health (2009). More Doctors or Better Care Retrieved from
NIH Website http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2732652/

Odier, N. (2010). The US health-care system: A proposal for reform. Journal Of Medical
Marketing, 10(4), 279-304.

Organization for Economic Co-Operation and Development (2013). History Retrieved
from: http://www.oecd.org/about/history/

Organization for Economic Co-Operation and Development 2 (2013). Frequently
Requested Datas Retrieved from: http://stats.oecd.org/Index.aspx?DataSetCode=SHA

PricewaterhouseCoopers Health Research Institute. (2008). The Price of
Excess. http://pwchealth.com Retrieved from PricewaterhouseCoopers Health Research Website: http://pwchealth.com/cgi-local/hregister.cgi?link=reg/waste.pdf

Public Broadcasting Station (2008). Critical Condition. Retrieved from: PBS Website

Rand Corporation (2010) Many Emergency Department Visits Could Be Managed at
Urgent Care Centers and Retail Clinics Retrieved from Rand Corporation Website http://www.rand.org/pubs/external_publications/EP20100123.html

Reinberg, Steven (January 7, 2013). U.S. Health Care Spending Now at $2.7 Trillion:

Schmidt, H. (2007). Personal Responsibility for Health — Developments Under the
German Healthcare Reform 2007. European Journal Of Health Law, 14(3), 241-250.

World Health Organization (2013). Obesity and Overweight  Retrieved from World
Health Organization Website http://www.who.int/mediacentre/factsheets/fs311/en



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