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In 1983 Congress changed the way Medicare pays for hospital care. Under the new prospective payment system, hospitals are paid a fixed rate, set in advance, to cover a patient's stay. If costs are less than the fixed rates, the hospital keeps the profit; if the costs are more, it absorbs the loss. From the beginning, prospective payment was recognized as a revolutionary change in Medicare. Congress wanted a system that would make federal expenditures more predictable and controllable, and expected hospitals to respond by becoming more efficient. Some observers have hailed it as a successful way to control the spiraling costs of the Medicare program. Others have criticized it as arbitrary and a threat to the health of the elderly. In the six years since prospective payment was introduced, a substantial amount of evidence has accumulated about its effects. Russell looks at the major characteristics of the rate payment system, how it has changed the pattern of medical service, how these changes have affected the health of the beneficiaries, and the system's effects on Medicare outlays. She reviews what is known and what needs to be learned to arrive at a valid assessment of the system. Moreover, she contributes to the larger debate on Medicare by making what are frequently quite technical evaluations accessible to the general public.
A growing body of research indicates that prevention offers the promise of better ways to maintain health and extend life. In this timely volume, Louise B. Russell shows that preventive measures are not as simple as often depicted while many do improve health, they are not without risk or cost, and in fact rarely reduce medical expenditures. Each measure, she argues, must be evaluated individually and in all its dimensions: health benefits, health risks, and resource costs.To demonstrate the many factors involved in evaluating preventive measures, Russell examines the policy debates about smallpox and measles vaccination, screening and drug therapy for hypertension, and exercise. She uses these case studies to explain the methods of cost-effectivness analysis, showing how the choice among health investments can be made a more rational exercise. The volume concludes with a suggested framework for the design of future cost-effectiveness evaluations. Policymakers in and out of the health field will benefit from this lucid examination of the potential of prevention for improving health and changing the allocation of limited resources.
This is a unique, in-depth discussion of the uses and conduct of cost-effectiveness analyses (CEA) as decision-making aids in the health and medical fields. The product of over two years of deiberation by a multi-disciplinary Public Health Service appointed panel that included economists, ethicists, psychometricians, and clinicians, it explores cost-effectiveness in the context of societal decision-making for resource allocation purposes. It proposes that analysts include a "reference-case" analysis in all CEA's designed to inform resource allocation and puts forth the most expicit set of guidelines (together with their rationale) ever outlined of the conduct of CEAs. Important theoretical and practical issues encountered in measuring costs and effectiveness, valuing outcomes, discounting, and dealing with uncertainty are examined in separate chapters. These discussions are complemented by additional chapters on framing and reporting of CEAs that aim to clarify the purpose of the analysis and the effective communication of its findings. Primarily intended for analysts in medicine and public health who wish to improve practice and comparability of CEAs, this book will also be of interest to decision-makers in government, managed care, and industry who wish to consider the roles and limitations of CEA and become familiar with criteria for evaluating these studies.
A COMPLETE UPDATE AND REVISION OF THE CLASSIC TEXT "At last, a manual of operations for comparing the cost-effectiveness of a preventive service with a treatment intervention." -American Journal of Preventive Medicine Twenty years after the first edition of COST-EFFECTIVENESS IN HEALTH AND MEDICINE established the practical benchmark for cost-effectiveness analysis, this completely revised edition of the classic text provides an essential resource to a new generation of practitioners, students, researchers, and policymakers. Produced by the Second Panel on Cost-Effectiveness in Health and Medicine-a team of 13 experts from fields including decision science, economics, ethics, psychology, and medicine-this new edition is a comprehensive guide to the use of cost-effectiveness analysis as an evaluative tool at the institutional and policy levels. As health care systems face increasing pressure to derive maximum value from expenditures, the guidelines in this new text represent not just the best information available, but a vital guide to health care decision-making in a challenging new era. Completely revised and enriched with examples and expanded coverage, this second edition of COST-EFFECTIVENESS IN HEALTH AND MEDICINE builds on its predecessor's excellence, offering required reading for both analysts and decision makers.
"A copublication with the Milbank Memorial Fund"
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