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Health care efficiency is a comparison of delivery system outputs, such as physician visits, relative value units, or health outcomes, with inputs like cost, time, or material. Efficiency can be reported then as a ratio of outputs to inputs or a comparison to optimal productivity using stochastic frontier analysis or data envelopment analysis .
Pay for performance systems link compensation to measures of work quality or goals. Current methods of healthcare payment may actually reward less-safe care, since some insurance companies will not pay for new practices to reduce errors, while physicians and hospitals can bill for additional services that are needed when patients are injured by mistakes. [1]
Health care efficiency measures compare delivery system outputs, such as physician visits, RVU's, or health outcomes, with inputs like cost, time, or material. Efficiency can be reported then as a ratio of outputs to inputs or a comparison to optimal productivity using stochastic frontier analysis or data envelopment analysis. [1]
Cost-effectiveness analysis is often used in the field of health services, where it may be inappropriate to monetize health effect. Typically the CEA is expressed in terms of a ratio where the denominator is a gain in health from a measure (years of life, premature births averted, sight-years gained) and the numerator is the cost associated ...
In some studies, attainment of HEDIS measures is associated with cost-effective practices or with better health outcomes. In a 2002 study, HEDIS measures "generally reflect[ed] cost-effective practices". [11] A 2003 study of Medicare managed care plans determined that plan-level health outcomes were associated with HEDIS measures. [12]
Operating room management is the science of how to run an operating room suite. Operational operating room management focuses on maximizing operational efficiency at the facility, i.e. maximizing the number of surgical cases that can be carried out on a given day while minimizing the required resources and related costs.
Milstein, Julia A. & Bates, David W. (2010, March–April). Paperless healthcare: Progress and challenges of an IT-enabled healthcare system. Business Horizons, 53(2), 119–130. Sidrov J (2006). "It ain't necessarily so: The electronic health record and the unlikely prospect of reducing healthcare costs". Health Affairs. 25 (4): 1079– 1085.
A 2004 report by the Congressional Budget Office put medical malpractice costs at 2% of U.S. health spending and "even significant reductions" would do little to reduce the growth of health care expenses.