Hospital Stays Are Shorter in Low Managed Care Markets
Bottomline-savvy executives in low managed care markets can be encouraged by a new book on length of stays published by The Center for Healthcare Industry Performance Studies (CHIPS). "The 1998 Procedures Resource Book - A Guide to Inpatient Procedures" highlights that length of stays in low managed care facilities are shorter than those in high managed care areas. This trend of low managed care facilities being as cost efficient and performance capable as their high managed care counterparts, is due in part to restrictive reimbursement patterns throughout the industry, according to Susan White, the book's author.
According to the study, the performance gap in length of stays for the 65 procedures studied (in low managed care markets) was 1.91 days in 1993, and fell to 1.11 days in 1996. And in terms of average costs for services, low managed care areas decreased from $9,131 in 1993 to $8,602 in 1996 (per patient). The cost in high managed care areas went from $8,455 to $8,092 for the same time frame.
The top 10 procedures with the largest reduction in length of stay from 1993 to 1996, according to the study, include:
- 1.Total knee replacement
- 2.Total hip replacement
- 3. Hip replacement revision
- 4. Excision of interverterbral disc
- 5. Head and neck endarterectomy
- 6. radical prostatectomy
- 7. knee replacement revision
- 8. exploration of spinal canal
- 9. partial hip replacement
- 10. open reduction/internal fixation of femur
For more information on the book contact CHIPS at 1-800-859-2447 or http://www.chipsonline.com.
MBAs Boost Physician Executive Compensation
It pays for physician executives to have an MBA, according to a new study released by Cejka & Company, a St. Louis-based healthcare consulting and search firm. According to the "1997 Physician Executive Compensation Survey," the MBA degree remains the preferred post-graduate credential for this healthcare employee target. Median compensation for physicians with a masters degree ranged from $166,00 to $290,000 and those without a post graduate degree earned less at $160,000 to $240,000. These salaries rival what presidents and CEOs make at hospitals - $229,700 (average compensation) - according to HPRMN's 1997 Salary Survey.
The study also highlights that searches for medical directors, VPs of medical affairs and chief medical officers have escalated in recent years. These positions earned a healthy median compensation of $245,000 in 1996, 11% more than chief operations officers, whose median compensation was $220,000.
Although primary care positions continue to dominate the market, specialty physician executives are still fairing better, earning $200,000 (median salary) as compared to $175,000 for primary care physician executives.
For more information about the survey, contact Cejka & Company at 1-800-678-7858.
New Survey Sheds Light on Managed Care Experience
Managed care in Sacramento, Calif.-a region with one of the highest rates of managed care enrollment in the country- is doing well with consumers, according to a new survey funded by The Kaiser Family Foundation (KFF) for, a Menlo Park, Calif.-based national nonprofit healthcare philanthropy. The survey (conducted for the first time, last year) finds that only 27% of Sacramento consumers reported some difficulties with their health insurance last year.
Of those survey respondents (1,014 adults) who reported problems, the most commonly reported concerns include:
- 42% citing delay or denial of care or payment;
- 32% claiming limited access to physicians; and
- 11% concerned about quality of care.
For more information about the study, contact Heather Balas at KFF, 650/854-9400.