The Safety Net Landscape: An Evolving World. Leighton Ku, PhD, MPH Professor & Director, Center for Health Policy Research
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1 The Safety Net Landscape: An Evolving World Leighton Ku, PhD, MPH Professor & Director, Center for Health Policy Research Grantmakers in Health, Nov
2 Two Health Safety Nets Insurance Safety Net: Medicaid, CHIP, Medicare Provider Safety Net: FQHCs, public & charity hospitals, rural health and free clinics, public health departments, family planning clinics, HIV clinics, etc. Insurance Access. Affordable Care Act (ACA) greatly expands health insurance. Planned increases for CHCs, but funds may not materialize. Cuts funding for safety net hospitals (Medicaid DSH). 2
3 Divergent Paths Health reform is overturned. Number of uninsured will continue to escalate. Health grant programs in trouble. Traditional role of safety net continues, but more uncompensated care and less funding. Charities and free clinics can t fill the gaps. Health reform implemented, roughly as planned. # uninsured & uncompensated care costs fall. Role of the safety net will change, but evolve. Health grant programs may still have problems. 3
4 Issues Converge at the Safety Net Many of the most pressing health issues converge at the health safety net: The uninsured & vulnerable The newly insured Access to care, including urban and rural care Integrating care to improve quality and efficiency Health disparities Foundations need to have an agenda to strengthen th the safety net and to help it evolve. 4
5 Lessons of Massachusetts Health Reform Level of uninsured fell greatly, but safety net utilization rose. Expanded insurance led to higher demand for care, particularly ambulatory care. Regular system of physician care couldn t keep ppace. Safety net patients generally satisfied with safety net providers. When the uninsured got insurance, they typically continued to use safety net providers. Source: Ku, et al. Arch Intern Med, Aug
6 Massachusetts CHC Caseloads. 31% Growth from 2005 to Pvt. Insurance Medicare CommCare/ Other Medicaid/ CHIP Uninsured Source: UDS data 6
7 % of State Uninsured Residents Receiving i Care at CHCs 2006 FQHC 22% Other 78% 7
8 Growth in Hospital Utilization by Safety Net Status t % 2% 2% 4% Inpt Admissions Safety Net Ambulatory Care Other Hospitals Source: Data from Mass Dept of Health Care Finance & Policy 8
9 Reasons for Using Safety Net Provider Reason Convenient Affordable Availability of Other Services Problem Getting Appointment Elsewhere Staff Able to Speak Patient s Primary Language Percent 79% 74% 52% 25% 8% Source: 2009 MA Health Reform Survey 9
10 CHCs Can Lower Overall Medical Costs Analyses of 2006 Medical Expenditure Panel Survey shows that t CHC patients t have 24% lower annual medical expenditures than non-users, after controlling for health status, insurance, age, gender, etc. Lower ambulatory, ED and inpatient costs Previous research also shows impact of good quality primary care at CHCs Can greatly reduce medical care costs in the future if CHCs are able to expand as planned. Source: Richard, et al. J Ambul Care Mgmt forthcoming, Ku, et al
11 Near Term Issues Can safety net providers survive state/local budget cuts? Some hospitals in trouble. Local health depts shrinking. FQHCs more stable, but not growing as planned. Safety net providers want to improve quality: patientcentered medical homes, EHRs, integration of behavioral and physical care. Will they have resources and staff to attain these goals? What about other system transformations like ACOs? (Managed care growth may be more important.) 11
12 Longer Term Issues How much will safety net providers be able to participate i t in new exchange plans? Even if Medicaid eligibility grows, will Medicaid payment rates be adequate? Which safety net providers will be able to compete in performance-based payment systems? Will there be enough primary care manpower? Needs will vary by state. 12
13 Changes in Number of Uninsured Women 18-64, Before and After Insurance Expansions Are Implemented WA OR NV CA ID UT AZ MT WY CO NM ND SD NE NE KS OK MN WI IA MO AR IL MS NH VT NY MI PA IN OH WV VA KY NC TN SC AL GA ME MA RI CT NJ DE MD DC TX LA AK FL HI <50% decline 50-62% decline 62-70% decline >70% decline 13 Preliminary GW estimates unpublished
14 Level of State Primary Care Challenges: Ratio of Medicaid Expansion to Primary Care Capacity NH VT WA ME MT ND OR ID WY NV UT CO KS CA AZ NM MN NY SD WI MI NE NE OK PA IA IN OH IL WV VA MO KY NC TN SC AR MS AL GA TX LA MA RI CT NJ DE MD DC AK FL HI < >140 Source: Ku, et al. NEJM 2/11 14
15 Expand Primary Care Clinicians Need to expand pool of all primary care clinicians, including MDs, DOs, NPs, PAs, as well as RNs and medical assistants. Must increase use of team-based care. Non-physician clinicians used less in states with lower primary care supply. Need for expansion of community health centers. Serve medically underserved areas, inexpensive and efficient use of health care providers. 15
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