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When Reducing Low-Value Care in Hospital Medicine Saves Money, Who Benefits?

Journal of Hospital Medicine 13(1). 2018 January;:45-48. Published online first November 22, 2017 | 10.12788/jhm.2878

One emerging policy solution for deterring low-value care is to financially penalize physicians who prescribe it. However, physicians’ willingness to support such policies may depend on whether they perceive that benefits accrue to patients or to insurers and hospitals. We surveyed physicians practicing hospital medicine to evaluate the association between policy support and physician beliefs about who benefits from the money saved through reducing low-value services in hospital medicine. Overall, physicians believed that more of any money saved would go to profits and leadership salaries for insurance companies and hospitals and/or health systems rather than to patients. These beliefs were associated with policy support: 66% of those supporting physician penalties were more likely to believe that benefits accrue to patients or physicians, compared to 39% of those not supporting policies (P < 0.001). Our findings are consistent with a sense of healthcare justice, in which physicians are less likely to support penalties imposed on themselves if the resulting benefits accrue to corporate or organizational interests. Effective physician penalties will likely need to address the belief that insurers and provider organizations stand to gain more than patients when low-value care services are reduced.

© 2018 Society of Hospital Medicine

Physicians face growing pressure to reduce their use of “low value” care—services that provide either little to no benefit, little benefit relative to cost, or outsized potential harm compared to benefit. One emerging policy solution for deterring such services is to financially penalize physicians who prescribe them.1,2

Physicians’ willingness to support such policies may depend on who they believe benefits from reductions in low-value care. In previous studies of cancer screening, the more that primary care physicians felt that the money saved from cost-containment efforts went to insurance company profits rather than to patients, the less willing they were to use less expensive cancer screening approaches.3

Similarly, physicians may be more likely to support financial penalty policies if they perceive that the benefits from reducing low-value care accrue to patients (eg, lower out-of-pocket costs) rather than insurers or hospitals (eg, profits and salaries of their leaders). If present, such perceptions could inform incentive design. We explored the hypothesis that support of financial penalties for low-value care would be associated with where physicians thought the money goes.

METHODS

Study Sample

By using a panel of internists maintained by the American College of Physicians, we conducted a randomized, web-based survey among 484 physicians who were either internal medicine residents or internal medicine physicians practicing hospital medicine.

Survey Instrument

Respondents used a 5-point scale (“strongly disagree” to “strongly agree”) to indicate their agreement with a policy that financially penalizes physicians for prescribing services that provide few benefits to patients. Respondents were asked to simultaneously consider the following hospital medicine services, deemed to be low value based on medical evidence and consensus guidelines4: (1) placing, and leaving in, urinary catheters for urine output monitoring in noncritically ill patients, (2) ordering continuous telemetry monitoring for nonintensive care unit patients without a protocol governing continuation, and (3) prescribing stress ulcer prophylaxis for medical patients not at a high risk for gastrointestinal complications. Policy support was defined as “somewhat” or “strongly” agreeing with the policy. As part of another study of this physician cohort, this question varied in how the harm of low-value services was framed: either as harm to patients, to society, or to hospitals and insurers as institutions. Respondent characteristics were balanced across survey versions, and for the current analysis, we pooled responses across all versions.

All other questions in the survey, described in detail elsewhere,5 were identical for all respondents. For this analysis, we focused on a question that asked physicians to assume that reducing these services saves money without harming the quality of care and to rate on a 4-point scale (“none” to “a lot”) how much of the money saved would ultimately go to the following 6 nonmutually exclusive areas: (a) other healthcare services for patients, (b) reduced charges to patients’ employers or insurers, (c) reduced out-of-pocket costs for patients, (d) salaries and bonuses for physicians, (e) salaries and profits for insurance companies and their leaders, and (f) salaries and profits for hospitals and/or health systems and their leaders.

Based on the positive correlation identified between the first 4 items (a to d) and negative correlation with the other 2 items (e and f), we reverse-coded the latter 2 and summed all 6 into a single-outcome scale, effectively representing the degree to which the money saved from reducing low-value services accrues generally to patients or physicians instead of to hospitals, insurance companies, and their leaders. The Cronbach alpha for the scale was 0.74, indicating acceptable reliability. Based on scale responses, we dichotomized respondents at the median into those who believe that the money saved from reducing low-value services would accrue as benefits to patients or physicians and those who believe benefits accrue to insurance companies or hospitals and/or health systems and their leaders. The protocol was exempted by the University of Pennsylvania Institutional Review Board.