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Effect of Hospital-Based Comprehensive Care
Clinic on Health Costs for Medicaid-Insured
Medically Complex Children
Patrick H. Casey, MD; Robert E. Lyle, MD; Tommy M. Bird, MS; James M. Robbins, PhD; Dennis Z. Kuo, MD, MHS;
Carrie Brown, MD; Arti Lal, MD; Aline Tanios, MD; Katherine Burns, MD
Objective: To evaluate the effect on all state Medicaid Main Outcome Measures: Using Arkansas Medicaid
costs of a children’s hospital-based multidisciplinary clinic claims data, we examined the medical costs for all out-
that provides comprehensive and coordinated care for patient, inpatient, emergency department, and prescrip-
medically complex children. tion drug claims. Costs were calculated on a per month
per patient basis and summarized for annual costs.
Design: Before-after intervention study. Patients’ health
care costs for up to 1 year before enrollment in the clinic Results: The mean annual cost per patient per month
were compared with patients’ health care costs for up to decreased by $1766 for inpatient care (P⬍.001) and by
1 year after enrollment in the clinic. Patients were en- $6.00 for emergency department care (P ⬍ .001). Al-
rolled in our study from August 2006 to May 2008. though the cost per patient per month for outpatient
claims (P⬍ .05) and prescriptions (P⬍ .001) increased,
Setting: Tertiary care children’s hospital in a rural state.
the overall cost to Medicaid per patient per month de-
creased by $1179 (P ⬍ .001).
Participants: A total of 225 medically complex children
who had at least 2 chronic medical conditions and who were
Conclusions: This hospital-based multidisciplinary clinic
followed up by at least 2 pediatric subspecialists.
resulted in a significant decrease in total Medicaid costs
Intervention: Multidisciplinary teams ensure that each for medically complex children.
patient receives all the necessary medical, nutritional, and
developmental care and that there is improved coordi- Arch Pediatr Adolesc Med. 2011;165(5):392-398.
nation of care with primary care providers, subspecial- Published online February 7, 2011.
ists, hospitalists, and community-based services. doi:10.1001/archpediatrics.2011.5
I
MPROVEMENTS IN SURGICAL, GEN- an even higher number of unmet needs,
eral medical, and intensive care both within the health care system and with
have increased the survival of low- community-based services.10,16,17
birth-weight children born pre- Primary care providers often acknowl-
term with various congenital edge a lack of comfort, time, and re-
anomalies. As a result, an increasing num- sources in treating and coordinating the
ber of children with multiple chronic con- care of MCC.18,19 Tertiary care subspecial-
ditions now live at home.1-6 Many such ists provide quality, organ system–
children have an associated chronic neu- focused care; however, the coordination
rodevelopmental disability and are in need and the integration of an overall care plan
of assistance with special medical equip- are not typical, and communication among
ment (such as tracheostomy and gastros- specialists and primary care providers is
tomy tubes).7-9 These medically complex sometimes not optimal. As a result, care
children (MCC) have the most medically may be ineffective or duplicated, poten-
complex conditions of children with spe- tially resulting in increased resource uti-
cial health care needs (CSHCN).10,11 Al- lization and poorer outcomes. Some chil-
though CSHCN experience more hospital dren’s hospitals have begun to develop
Author Affiliations: admissions and outpatient visits com- special programs dedicated to better serv-
Department of Pediatrics, pared with healthy children,12 MCC may re- ing MCC. Some programs provide conti-
University of Arkansas for quire even more hospitalizations and phy- nuity of care during hospitalizations,20,21
Medical Sciences, Arkansas sician visits. Although the health care needs whereas others assist in care coordina-
Children’s Hospital, Little Rock. of CSHCN often are not met,13-15 MCC have tion in ambulatory settings.22,23
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Before Clinic Enrollment After Clinic Enrollment
Figure 1. Actual and adjusted per patient per month (PPPM) overall cost to Medicaid for 12 months before and 12 months after clinic enrollment. PPPM cost
values were adjusted for sex, race/ethnicity, and age at clinic enrollment by use of a generalized linear model. The number for each month represents the number
of children (ie, the sample size per month).
7000
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Figure 2. Actual and adjusted per patient per month (PPPM) inpatient cost to Medicaid for 12 months before and 12 months after clinic enrollment. PPPM cost
values were adjusted for sex, race/ethnicity, and age at clinic enrollment by use of a generalized linear model. The number for each month represents the number
of children (ie, the sample size per month).
MCC before enrollment in the Medical Home Clinic the Medical Home Clinic would be $9 514 800. This
would be $12 698 100. The predicted adjusted annual would result in an annual cost saving of $3 183 300 for
cost for a theoretic group of MCC after enrollment in the theoretical 225 patients, with savings of $14 148
ARCH PEDIATR ADOLESC MED/ VOL 165 (NO. 5), MAY 2011 WWW.ARCHPEDIATRICS.COM
395
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Before Clinic Enrollment After Clinic Enrollment
Figure 3. Actual and adjusted per patient per month (PPPM) outpatient cost to Medicaid for 12 months before and 12 months after clinic enrollment. PPPM cost
values were adjusted for sex, race/ethnicity, and age at clinic enrollment by use of a generalized linear model. The number for each month represents the number
of children (ie, the sample size per month).
per patient per year, at least for the first year after the care programs resulted in significantly shorter hospital
initial clinic visit. stays,30,35 more outpatient visits,30 and decreased hospi-
To our knowledge, this is the first examination of the tal charges compared with national data.35 Emergency de-
aggregate cost impact of a comprehensive care model for partment visits of MCC decreased after the integration
MCC. The American Academy of Pediatrics and other medi- of a comprehensive care coordination program in a resi-
cal groups have endorsed comprehensive, coordinated care dent education clinic36 and after the onset of an emer-
provided in a family-centered medical home.25,26 Emerg- gency department–based coordination program that pro-
ing evidence is supportive of the medical home concept, vided 24-hour access to nurse coordinators.37
but the data are mostly limited to children with a single Gordon et al22 described the results before and after
chronic condition like asthma or epilepsy, with short- the implementation of a program that best resembled our
term outcomes such as family function, satisfaction with ACH medical home program. They enrolled children with
care, and timeliness of care.27 Studies of programs that tar- complex chronic conditions that involved 3 or more or-
geted both children with single chronic conditions and MCC gan systems requiring the care of at least 5 pediatric sub-
and that provided more comprehensive coordinated care specialists. Pediatric nurse case managers provided no
have demonstrated improved parent satisfaction with direct care but served as coordinators for all medical- and
care,28,29 decreased family needs and caregiver strain,29 im- community-based needs. The hospital-based physicians
proved quality of life for parents,30 improved child adjust- saw program patients in the emergency department, some-
ment,31 and receipt of more community services.32 times during clinic visits, and they also participated in
Other studies have evaluated the number of inpa- the care of hospitalized children. This program resulted
tient, outpatient, and/or emergency department visits and in a significant decrease per patient in the number of in-
their associated costs as an outcome of interventions tar- patient admissions and days in the hospital, as well as a
geting children with special health care needs. Broyles significant increase in outpatient clinic and emergency
et al33 examined the benefits of comprehensive care pro- department visits. In aggregate, these changes resulted
vided to very low birth weight infants in a randomized in a decrease of payment of $10.7 million to the hospi-
controlled trial. The comprehensive care group had sig- tal. Our results extend these findings by utilizing all ag-
nificantly more clinic visits and telephone conversa- gregate state Medicaid costs, not just costs generated by
tions, with fewer life-threatening illnesses, intensive care one hospital.
admissions, and days in intensive care compared with the Because we did not feel ethically comfortable design-
routine care group. Beckmezian et al21 compared the care ing a randomized controlled intervention trial or using
provided by a typical subspecialty/house staff team with a wait-list control design with these MCC, we used a be-
a staff-only hospitalist team. The hospitalist team dem- fore-after intervention study design to assess health costs.
onstrated hospital stays that were shorter by 2.7 days with Although we attempted to adhere to the high standards
29% lower costs. of this type of research design, our conclusions may be
Much of the remaining research in this field has uti- limited. For example, the natural course of disease might
lized the before-after intervention design. A comprehen- result in improved clinical status with age, thus result-
sive care program that served 4-year-old CSHCN, few of ing in decreased clinical encounters of all types over time.
whom were medically complex, found no difference be- However, we found an upward trend of hospitalizations
fore and after enrollment in the number of hospitaliza- and associated costs that decreased immediately after the
tions or in associated costs.34 Expanded comprehensive implementation of our medical home program (ie, Medi-
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Announcement
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