USING A “STANDARDS OF CARE ECONOMIC MODEL” TO QUANTIFY BARRIERS AND POTENTIAL SOLUTIONS TO PROVIDING OPTIMAL GUIDELINE-DRIVEN CARE TO PATIENTS WITH DIABETES MELLITUS IN THE UNITED STATES
Author(s)
Hughes KE* Avalere Health LLC, Washington, DC, USA
Presentation Documents
OBJECTIVES: • Build economic model to estimate resources to deliver current standards of care to US diabetes patients
• Evaluate provider costs to meet standards, assess patient outcomes specified in guidelines relative to reimbursement
METHODS: • Build model
• Integrate 3 national standard sets (ADA, AACE, and TES) into 28 consolidated standards of optimal care
• Develop provider matrix for rendering care
• Draft 6 clinical vignettes: 3 each T1DM and T2DM
• Convene 3 multidisciplinary panels of 4-7 care professionals; with facilitator, estimate minimum/maximum time to achieve care standards/patient type – baseline/best cases
• Convene separate panel estimating time to start/follow patients using CSII or CGM
• Multiply provider time by average wage and overhead amounts to determine visit cost
• Map activities to CPT and HCPCS billing codes and payment rates
• Compute reimbursement per expected payer mix
• Note gaps in reimbursement compared to costs on unit and total basis
• Populate model; perform analytics
• Repeat Steps 4-9 with data from national provider survey and national database
RESULTS: • Baseline scenarios show provider costs exceed reimbursements for all type patients; best case indicates same in 5 of 6 scenarios
• In different scenarios costs of treating adults exceed reimbursement by >$750,000 per year; practices would require 19%-64% increase to breakeven
• In pediatric practice, costs exceed reimbursement by >$471,000 per year
• Gaps are increased for patients using CSII and CGM
• Results are more sensitive to reimbursement for routine physician care and lifestyle modification services
CONCLUSIONS: • 7 American professional societies comprising the Diabetes Working Group (DWG) concur delivering high-quality, guideline-based diabetes care unrealistic given current care and payment paradigms
• DWG recommends alternative approaches in 3 areas: care management, payment reform, and workforce supply, to mitigate increasing medical and financial impact of this epidemic chronic illness
• Model can be used internationally to support public policy efforts
Conference/Value in Health Info
2013-11, ISPOR Europe 2013, The Convention Centre Dublin
Value in Health, Vol. 16, No. 7 (November 2013)
Code
PDB126
Topic
Health Service Delivery & Process of Care
Topic Subcategory
Treatment Patterns and Guidelines
Disease
Diabetes/Endocrine/Metabolic Disorders