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ARTICLE

ONLINE FIRST
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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Recognizing the increasing number of MCC and their cal Home Clinic visit); and (3) children who died. There were
need for comprehensive and coordinated care, Arkan- 281 children enrolled in the clinic who met the study criteria.
sas Children’s Hospital (ACH) initiated a medical home Matching to Medicaid claims data was accomplished for 225
program for MCC.24 It was hypothesized that this pro- children, who make up the final sample for the analyses. Match-
ing was not successful for 56 children because of inconsisten-
gram would result in fewer acute hospitalizations and
cies in the child’s name or Medicaid identification number be-
emergency department visits, resulting in reduced over- tween ACH clinical records and Medicaid files.
all costs of medical care.
DATA
METHODS
The University of Arkansas for Medical Sciences institutional
SETTING review board reviewed and approved the research protocol. Our
study is a retrospective cohort study of eligible enrollees in the
Arkansas is a primarily rural state with approximately 2.8 mil- Medical Home Clinic. Demographic and clinical data for our
lion citizens and 699 000 children 18 years of age or younger. study came from hospital medical records. Demographic data
Arkansas Children’s Hospital is the only tertiary care hospital include patients’ sex, race/ethnicity, and age at first clinic visit.
in the state that provides subspecialty care and surgical care Clinical data include number and type of complex chronic con-
for children. The vast majority of children in Arkansas requir- ditions. All cost and resource utilization data came from link-
ing subspecialty care receive their care at ACH. ing hospital data to Arkansas Medicaid data. Medicaid utiliza-
tion and cost data were obtained statewide for all (not just ACH)
INTERVENTION inpatient stays, outpatient claims (including physician visits and
therapy treatment), emergency department visits, and prescrip-
The goals of the medical home program are to ensure that each tion drugs. Utilization data were obtained for up to 12 months
child receives all the necessary medical, nutritional, and de- before and after the index clinic visit.
velopmental and/or therapeutic care and to improve the coor-
dination of care for all physicians and other providers at ACH
and in the communities. Arkansas Medicaid requires all Med-
ANALYSES
icaid-eligible children to have a primary care provider to act as
Because of the varying ages of the enrolled children, the ex-
a referral gatekeeper. The children continue seeing their com-
clusion criteria based on age of child at enrollment, and the stag-
munity-based primary care provider as well as all needed pe-
gering of enrollment over time, the number of children eli-
diatric subspecialists. The program is outpatient-based, with
gible for inclusion in our study varied across the different time
coordination with inpatient services during hospitalization. The
frames (ie, before and after the first clinic visit). For example,
clinic staff includes pediatricians (neonatologist, developmen-
because the minimum age at enrollment was 90 days, children
tal pediatricians, hospitalists, and general pediatricians), nurses,
enrolled at 15 months of age or younger could not have 12
nutritionists, social workers, speech pathologists, and child psy-
months of preenrollment data. Similarly, children enrolled less
chologists. At least 1 person from each discipline is present for
than 12 months before the end of the data collection could not
each clinic visit; this way, the continuity of care by the clinic
have 12 months of postenrollment data. To account for the vary-
team is ensured. The frequency of visits is determined by clini-
ing number of subjects across months, all cost data were stan-
cal need. Each patient is assigned a nurse coordinator who meets
dardized on a per patient per month (PPPM) basis. Because the
with the child and family in the clinic. The nurse is available
distribution of the PPPM utilization data was significantly posi-
for telephone consultation during daytime hours to assist with
tively skewed, multivariable analyses were conducted using a
concerns of any type, including appointment coordination, clini-
generalized linear model with a gamma distribution and a log
cal decision making, and acute care issues. The clinic team en-
link. Multivariable analyses before and after enrollment relied
sures that the needed community-based services are provided
on predicted pre- and post-PPPM cost values adjusted for sex,
and that communications with these programs and the pri-
race/ethnicity, and age at index clinic visit. To gain a more de-
mary care providers occur via letter, e-mail, and/or telephone.
tailed understanding of utilization patterns before and after en-
rollment in the clinic, a piecewise generalized linear model was
SUBJECTS used. Our piecewise model allowed for different slopes, or uti-
lization trends, as well as different intercepts for pre- and posten-
Children eligible for enrollment in the medical home program rollment periods. All analysis was conducted using Stata/MP
are high utilizers of services at ACH who have at least 2 seri- version 11.1 statistical software (StataCorp LP, College Sta-
ous chronic conditions and were followed up by at least 2 pe- tion, Texas).
diatric subspecialists. Many are born with extremely low birth
weight (or with congenital anomalies and/or syndromes), with
chronic neurodevelopmental disability, and/or are dependent RESULTS
on special medical equipment (such as gastrostomy tubes). Eli-
gible children, who live throughout the state, are referred by Demographic and selected clinical characteristics of the
their primary care provider or by a pediatric subspecialist with 225 study subjects are presented in Table 1. Sixty-two
approval by the primary care provider. All children in our study percent were male children, and 50% were white. The
were eligible for Medicaid and were continuously enrolled from mean (SD) age at enrollment was 19.4 (21.3) months,
the outset of the new program beginning in August 2006 and
ending May 2008. Excluded from the analyses were (1) chil-
and the median age was 13 months. The oldest child at
dren who had been previously followed by the codirectors of enrollment was 158 months.
the medical home program (R.E.L. and P.H.C.) in their prior Before enrollment, the mean (SD) number of hospi-
existing clinics; (2) children 90 days of age or younger, to ex- talizations PPPM was 0.1 (0.3), and the mean (SD) num-
clude hospitalizations in neonatal intensive care units (which ber of outpatient claims PPPM was 10.3 (7.4). Of the 225
would have inflated the hospital costs prior to the initial Medi- children enrolled in our study, 152 (67%) were born pre-

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ter; P ⬍ .001). The overall adjusted costs PPPM to Med-
Table 1. Demographic and Clinical Characteristics of and icaid decreased by $1179 for the year after the initial visit
Preenrollment Utilization Data on 225 Medical Home ($4703 before vs $3524 after; P ⬍.001).
Clinic Patients
Trends in the actual and adjusted overall costs to Med-
icaid PPPM during the year before the first clinic visit
Characteristic or Data No. (%)
and during the year after the first clinic visit are shown
Sex in Figure 1. The sample size available for each month
M 140 (62)
F 85 (38)
is depicted on the x-axis. There was a gradual increase
Race in overall cost PPPM during the year before the first clinic
White 113 (50) visit, from near $4200 to near $5000. There was a gradual
Black 49 (22) decrease in overall costs PPPM after the first clinic visit,
Missing or other 63 (28) ending near $3000.
Diagnoses Trends in the actual and adjusted costs to Medicaid
Premature 152 (67)
PPPM for the year before the first clinic visit and the year
Bronchopulmonary dysplasia 84 (37)
Hydrocephaly 14 (6) after the first clinic visit are shown in Figure 2. There
Cerebral palsy related to brain injury or anomaly 75 (33) was a gradual increase in inpatient cost PPPM from near
Seizures 43 (19) $2200 to near $3700 in the year before the first clinic visit.
Syndrome and/or anomalies 91 (40) There was a striking decrease in inpatient cost PPPM af-
Congenital heart disease 32 (14) ter the first visit, ending near $600.
Developmentally delayed 161 (72)
The adjusted number of inpatient stays PPPM de-
Type of medical equipment needed
Gastrostomy tube 127 (56)
creased from 0.15 for the year before the first clinic visit
Tracheostomy tube 17 (7) to 0.11 for the year after the first clinic visit (P ⬍.001).
Ventriculoperitoneal shunt 26 (12) For the year before the first clinic visit, patients had a
Preenrollment health care utilization 9.7% chance of hospitalization, and for the year after the
Age in months at first clinic visit clinic visit, patients had a 7.4% chance of hospitaliza-
Mean (SD) 19.4 (21.3) tion (P ⬍.001). The length of stay during a hospitaliza-
Median (range) 13 (3-158)
Hospitalizations per month, No.
tion PPPM decreased from 2.25 days for the year before
Mean (SD) 0.1 (0.3) the first clinic visit to 1.25 days for the year after the first
Median (range) 0 (0-3) clinic visit (P ⬍ .001). The mean length of stay per hos-
Emergency department visits per month, No. pitalization was reduced from 14.5 days preenrollment
Mean (SD) 0.1 (0.5) to 10 days postenrollment (P ⬍.01).
Median (range) 0 (0-6) Trends in the actual and adjusted outpatient claims
Outpatient claims per month, No.
costs to Medicaid PPPM for the year before and the year
Mean (SD) 10.3 (7.4)
Median (range) 9 (1-33) after the first Medical Home Clinic visit are shown in
Figure 3. Although there was a slight decrease in out-
patient cost PPPM during the year before the first clinic
visit, there was a slight increase in cost PPPM for the year
term, 84 (37%) had bronchopulmonary dysplasia as di- after the first visit. Adjusted outpatient cost PPPM in-
agnosed by the neonatologist, 127 (56%) received a gas- creased by $53 ($1729 before vs $1782 after; P⬍.05).
trostomy tube, 17 (7%) received a tracheostomy tube, 75 The number of outpatient claims PPPM increased from
(33%) had cerebral palsy related to brain injury or 9.4 for the year before the first clinic visit to 10.3 for the
anomaly, 161 (72%) were clinically determined to be de- year after the first clinic visit (P⬍ .001). The number of
velopmentally delayed, and 91 (40%) had a recognized emergency department visits PPPM decreased from 0.18
syndrome or congenital anomaly. Six children had a tra- for the year before the first clinic visit to 0.16 for the year
cheoesophageal fistula, 10 had a diaphragmatic hernia, after the first clinic visit (P ⬍.001).
6 had gastroschisis and/or omphalocele, 6 had Down syn-
drome, 11 had a cleft palate and/or lip, 8 had CHARGE
COMMENT
syndrome and/or VATER association, and 5 had velo-
cardio-facial and/or DiGeorge syndrome. Children with
the following syndromes also visited the Medical Home The clinical intervention of the ACH medical home pro-
Clinic: Angelman, Pierre Robin, Prader-Willi, Klinefel- gram resulted in significantly fewer inpatient stays PPPM
ter, Williams, and Kabuki syndromes. with significantly shorter lengths of hospital stay. This
The actual and adjusted costs to Medicaid PPPM for resulted in an annual savings of $1766 PPPM. The num-
12 months before and 12 months after the initial Medi- ber of outpatient claims per child per month increased,
cal Home Clinic visit are shown in Table 2. The ad- but emergency department contacts decreased for the year
justed cost of outpatient claims increased by $53 PPPM after the first clinic visit compared with the year before
($1729 before vs $1782 after; P⬍ .05), and the adjusted the first clinic visit. The aggregate cost savings for Ar-
cost of prescription drugs increased by $60 ($329 be- kansas Medicaid, including the costs mentioned earlier
fore vs $389 after; P⬍.001). The adjusted cost PPPM for as well as medications and other related expenses, was
inpatient care decreased by $1766 ($2995 before vs $1229 $1179 PPPM for the year after the first clinic visit.
after; P⬍.001), and the adjusted cost of emergency de- Based on these total cost data, the predicted
partment visits decreased by $6 ($50 before vs $44 af- adjusted annual cost for a theoretical group of 225

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Table 2. Actual and Adjusted Medicaid Costs for 12 Months Before and 12 Months After Entry Into the Medical Home Clinic

Bivariate Analysis Multivariable Analysis a


Cost, $, per Patient
per Month Before After Difference (95% CI) Before After Difference (95% CI)
Overall 4744 3503 −1241 (−2057 to −425) 4703 3524 −1179 (−1232 to −1126)
Inpatient 2868 1298 −1570 (−2416 to −724) 2995 1229 −1766 (−1813 to −1720)
Outpatient 1652 1797 145 (21-269) 1729 1782 53 (8-97)
Emergency department 46 44 −2 (−14 to 10) 50 44 −6 (−7 to −5)
Prescription 306 374 68 (23-112) 329 389 60 (56-64)

Abbreviation: CI, confidence interval.


a The results of multivariable analysis were adjusted for sex, race/ethnicity, and age at entry into Medical Home Clinic by use of a generalized linear model.

8000

7000

6000
PPPM Overall Cost, $

5000

4000

3000

2000

1000

0
)

)
05

12

16

23

30

39

53

68

80

95

12

25

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25

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25

25

09

89

75

63
=1

=1

=1

=1

=1

=1

=1

=1

=1

=1

=2

=2

=2

=2

=2

=2

=2

=2

=2

=2

=2

=1

=1

=1
(n

(n

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(n

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(n

(n

(n

(n

(n

(n

(n

(n

(n

(n

(n
12

11

10

10

11

12
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

6000

5000
PPPM Inpatient Cost, $

4000

3000

2000

1000

0
)

)
05

12

16

23

30

39

53

68

80

95

12

25

25

25

25

25

25

25

25

25

09

89

75

63
=1

=1

=1

=1

=1

=1

=1

=1

=1

=1

=2

=2

=2

=2

=2

=2

=2

=2

=2

=2

=2

=1

=1

=1
(n

(n

(n

(n

(n

(n

(n

(n

(n

(n

(n

(n

(n

(n

(n

(n

(n

(n

(n

(n

(n

(n

(n

(n
12

11

10

10

11

12

Before Clinic Enrollment After Clinic Enrollment

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

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3000

PPPM Outpatient Cost, $ 2500

2000

1500

1000

500

0
5)

2)

6)

3)

0)

9)

3)

8)

0)

5)

2)

5)

5)

5)

5)

5)

5)

5)

5)

5)

9)

9)

5)

3)
10

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=

=
(n

(n

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(n

(n

(n

(n

(n

(n

(n

(n
12

11

10

10

11

12
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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cal Home Clinic). In addition, we controlled for age at Author Contributions: Study concept and design: Casey,
first clinic visit in an attempt to address the concern of Lyle, Bird, Robbins, Kuo, and Tanios. Acquisition of data:
maturing out of a serious condition. The number of pa- Casey, Lyle, Bird, Lal, and Burns. Analysis and interpre-
tients available for analyses each month varied depend- tation of data: Casey, Lyle, Bird, Robbins, Kuo, Brown,
ing on when they were first enrolled in our clinic and and Burns. Drafting of the manuscript: Casey, Lyle, Rob-
on how long they were followed up after the first clinic bins, and Kuo. Critical revision of the manuscript for im-
visit. We were not able to match 56 of our subjects to portant intellectual content: Casey, Lyle, Bird, Robbins, Kuo,
Medicaid data because of inconsistencies in identifiers Brown, Lal, Tanios, and Burns. Statistical analysis: Bird.
in the 2 data sets. There is no reason to think that these Obtained funding: Robbins. Administrative, technical, and
children differed significantly from those included in the material support: Casey, Lyle, Kuo, Brown, and Lal. Study
analyses, because all our patients were consecutively en- supervision: Casey, Lyle, and Robbins.
rolled and met our enrollment criteria for medical com- Financial Disclosure: None reported.
plexity. In addition, they did not differ in demographic Funding/Support: Support has been provided in part by
characteristics. Our results may not apply to children who the Arkansas Biosciences Institute, the major research
are not publically insured, and our model examines only component of the Tobacco Settlement Proceeds Act of
a single program at one institution. Although it is fea- 2000.
sible that other hospital- or Medicaid-supported initia-
tives occurring concomitant with ours might have influ- REFERENCES
enced our results, we were aware of no such program.
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Our report has several strengths. Our use of Arkan- 2. Simon TD, Berry J, Feudtner C, et al. Children with complex chronic conditions
sas Medicaid data allowed us to determine all clinical con- in inpatient hospital settings in the United States. Pediatrics. 2010;126(4):647-
655.
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26, Little Rock, AR 72202 (caseypatrickh@uams.edu). of Education; 1997.

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