Lisa Venn, J.D., M.A.
For the first time in the history of health care, patients’ experience, namely what they think about the health care they receive, will affect providers’ bottom line. First, patient experience survey results will affect a provider’s reimbursement rate. Second, patients’ opinions about their health care have the power to influence patients’ choice of provider. Let’s examine each of these reasons.
(a) Patient experience survey results will affect a provider’s reimbursement rate.
In the past, Medicare paid health care providers such as hospitals, nursing homes and home health services, whatever “reasonable” costs they charged to treat Medicare patients. When reimbursing providers, Medicare did not measure or factor in treatment outcome or patients’ satisfaction with the care they received.
When this “You bill it, we pay it” reimbursement plan proved too expensive, Medicare changed the way it reimburses patient care. In 1983, Medicare began paying hospitals under a prospective payment system (PPS), which is a pre-determined, set rate based on the patient’s diagnosis. If the cost of the patient’s treatment is less than the set rate, the provider profits; if the cost is greater, the provider loses money. Medicare adopted the PPS for other services including sub-acute services given in nursing homes and home health service. Despite the switch to PPS reimbursement, health care costs continued to skyrocket.
Not only was Medicare paying more for care, evidence revealed that the quality of care was poor. In 2000, the Institute of Medicine (IOM) published “To Err is Human” (Kohn, Corrigan & Donaldson, 2000) which indicated that as many as 98,000 patients die each year in hospitals from preventable medical errors. In March 2001, the IOM issued another report “Crossing the Quality Chasm: A New Health System for the 21st Century” (2001). The IOM reported that the health care delivery system is not meeting the changing needs of patients. The IOM outlined ten rules for redesigning health care. Among other things, the IOM called for health care to be transparent, providing patients with information to choose their provider and make evidence-based decisions.
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