In the News: June 8–14

Sg2 is dedicated to helping our clients interpret the latest news and trends in health care. Below you’ll find our analysis of this week’s key industry headlines, along with links to related Sg2 resources.

ED Providers Lack Costs of Care Understanding

According to a recent study in the Journal of the American Osteopathic Association, emergency department health care providers “have an inadequate understanding of the costs associated with care routinely provided in the ED.” In the study, 441 providers (physicians, residents and advanced practitioners) were presented with 3 scenarios (a 35-year-old woman with abdominal cramping, a 57-year-old man with dyspnea and a 7-year-old boy with a sore throat) and asked to choose from 4 ranges representing the total ED case cost for each patient. For each scenario, less than half of the providers identified the correct range of costs (43%, 32% and 40%, respectively).

As out-of-pocket expenditure continues to grow, patients become more discerning health care consumers. In particular, Sg2 experts have highlighted freestanding EDs as an area that must evolve to deliver value for these consumers. For more information, read the following Sg2 resources on the new health care consumer and the evolution of freestanding EDs.

CDC Issues Data Brief on ED Visits by Seniors

The CDC conducted a retrospective analysis examining the ED component of the 2012–2013 National Hospital Ambulatory Medical Care Survey. During this time period, there was an estimated annual average of 5.2 million ED visits for injury and 15.5 million ED visits for illness. In the 65+ age cohort, this translates to an ED visit rate of 12 per 100 persons for injury and 36 per 100 persons for illness. Resource utilization was also expanded to include ancillary services (eg, imaging), which were ordered for 75% of injury visits and 63% of illness visits.

As hospitals continue to face resource allocation challenges, Sg2 believes it remains important to provide access points for receiving efficient care in low-cost settings for the growing aged 65+ population. To learn about leading organizations’ geriatric programs and innovative approaches, see the Sg2 infographic and FAQ: Building a Geriatric Services Program.

New Partnership to Use AI for Cancer Treatment Planning Support

Hackensack Meridian Health (New Jersey), IBM Watson Health and Cota Healthcare have partnered to pilot a project to support clinical treatment planning for cancer patients by leveraging Watson Health’s artificial intelligence (AI) with Cota Healthcare’s precision-medicine database. In the first phase, Watson will present oncologists with ranked, evidence-based treatment options, incorporating Cota’s software to show which treatments are more effective for similar patients. In the second phase, Watson will provide bundled payment information, along with recommended care paths. The pilot will involve 10 oncologists and approximately 500 patients at Hackensack Meridian Health.

Sg2 believes that the ongoing shift of cancer services to the outpatient setting, as well as better disease management and an increased focus on value-based care, will define the opportunities for growth and sustainability of cancer programs. To learn more about the key drivers impacting the future of cancer care delivery, register for the upcoming Sg2 webinar: Cancer Landscape 2017.

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As of February 11, 2016, Vizient, Inc. has completed its purchase of MedAssets Sg2 and spend and clinical resource management segments from Pamplona Capital Management, LLC. MedAssets revenue cycle business will continue to operate as a wholly-owned subsidiary of Pamplona Capital Management LLP.

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