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ASA NEWSLETTER
 
 
December 1998
Volume 62
Number 12
   
Anesthesia Practice Management: How to Assess and Promote Value

Ronald A. Gabel, M.D., Chair
Ad Hoc Committee on Value-Based Anesthesia Care


The Ad Hoc Committee on Value-Based Anesthesia Care recently completed the development and production of a new manual with the above title. As an introduction to this manual, the first chapter is reprinted here.

CHAPTER 1:

How to Define "Value-Based Anesthesia Care"
By Ronald A. Gabel, M.D.

The concept of value-based anesthesia care came into existence because, during the past decade, U.S. health care costs have risen too fast and too high. The federal government and the national business community appear to believe that competition among health care providers is the most acceptable and most effective method for solving the problem of excessive health care costs. Therefore, anesthesiologists, in order to be able to compete successfully in the rapidly evolving competitive marketplace, must seek ways to constrain costs of anesthesia care. However, because quality is an essential attribute of patient care, we must develop strategies for constraining costs without compromising quality. That is what this manual is all about.

Cost and Value

One of the major historical problems with U.S. health care economics has been an insufficient linkage between the cost and the value of health care. The traditional assumption has been that more health care is better. All too frequently, decisions on health care management have been made without an explicit probing of the value systems of patients. Because physicians have not traditionally considered cost when making medical decisions, the issue of whether the value of a given medical intervention is worth the cost rarely came up. Note that the word value is used here to mean "worth to the individual patient." Patient preferences are an essential component of value-based medical care.

Rather than simply trying to reduce health care costs, physicians should be seeking ways to increase the value of health care. The economic sense of value is employed here: the ratio of output-to-input. Input is defined in terms of dollars spent, output in terms of improved health status of patients. Value in health care is commonly defined as the ratio of quality-to-cost. Therefore, in order to understand value, one must first understand quality. Two important aspects of quality - clinical outcomes and customer satisfaction - are discussed in Chapters 2 and 3 as essential components of value.

The term "value-based" assumes a double meaning, depending on whether the sociologic definition ("worth to the individual patient") or the economic definition of value is used ("ratio of improved health status-to-dollars spent"). In the first context, physicians must understand what is important to their patients in order to provide high quality care. In the second context, physicians must be attuned to the costs of health care interventions in order to provide high quality care.

Depending on the way "value-based" is interpreted, either individual patients (sociologic meaning of value) or patients in the aggregate (economic meaning of value) are the theoretical beneficiaries of value-based medical care. Owing to the competitive nature of today's health care environment, anesthesiologists themselves are also beneficiaries of value-based anesthesia care, because job security is increasingly dependent on anesthesiologists' assuring that the value of anesthesia services is consistent not only with the needs of patients but also with the expectations of hospitals and managed care organizations.

To understand value and to implement value-based anesthesia care, one must understand cost, the denominator of the value equations ("quality/cost" and "improved health status/cost"). Therefore, Chapter 4 focuses on how to analyze costs. Chapter 5 then pulls quality and cost together by discussing how to analyze value and implement change. Then Chapter 6 discusses value-based services of the perioperative physician.

Practice guidelines have become a widely accepted method for making accessible to individual physicians the collective judgments of groups of experts, based on the best available scientific evidence. The goal of practice guidelines in value-based anesthesia care is to provide anesthesiologists with a method for optimizing the balance between quality anesthesia care and costs. Important principles for developing guidelines are covered in Chapter 7.

Ethics of Value-Based Anesthesia Care

A major cornerstone of medical ethics is the principle that physicians are always obligated to place the best interests of their patients above all else. Physicians are usually confident that the therapy they provide patients will improve the condition being treated. Other equally beneficial treatments, however, are often available. Some alternatives may be less expensive. The competitive environment is beginning to require that physicians use their collective judgments to come up with the most economical approach to given medical conditions, rather than permitting individual physicians to use as wide a range of options as was previously considered acceptable. The ultimate goal is to make health care affordable for a nation that has collectively decided that the only way to assure high-quality health care for its people is to reduce its costs.

There should be no ethical dilemma in providing value-based anesthesia care. If patients' best interests are at the heart of practice guidelines, then anesthesiologists are working within a highly ethical framework by following practice guidelines. Individual patients should receive appropriate care, while patients in the aggregate should receive better care, because the total revenues available for health care should be spent more wisely. Therefore, quality health care should become available to populations that currently cannot afford it.

Of course, society has a considerable amount of work to do to assure that savings are translated into improved health care for populations that do not currently have access to its high quality. That aspect of society's problem is beyond our control. However, society has made clear through mandating a competitive environment what anesthesiologists must do in order to survive professionally.

Purpose of This Manual

The purpose of this "how-to" manual is to provide some insights into how the above principles can be applied to an anesthesia practice. Making the necessary changes may require modification of some well-entrenched concepts. Before society imposed on us a requirement to consider the costs of anesthesia care, we focused almost exclusively on the immediate clinical needs of our patients. Now we must meet the challenge of constraining the costs of anesthesia care while continuing to seek optimal outcomes for our patients. Now we must seek to increase the value of the anesthesia care we provide.



Manual on Value-Based Care Now Available

The ASA Ad Hoc Committee on Value-Based Anesthesia Care has prepared a seven-chapter manual titled "Anesthesia Practice Management: How to Assess and Promote Value" for the benefit of ASA members. Chapter titles and authors are:

  1. How to Define "Value-Based Anesthesia Care"
    Ronald A. Gabel, M.D.
  2. How to Define Quality - Clinical Outcomes
    Kenneth J. Tuman, M.D., and Thomas D. Mazer, M.D.
  3. How to Define Quality - Customer Service
    Robert E. Johnstone, M.D., and
    Stephen T. Robinson, M.D.
  4. How to Analyze Costs
    Karl E. Becker, Jr., M.D.
  5. How to Analyze Value and Implement Change
    Thomas D. Mazer, M.D., and Kenneth J. Tuman, M.D.
  6. How to Justify Value-Based Services of the
    Perioperative Physician
    Thomas L. Higgins, M.D., and
    Thomas D. Younker, M.D.
  7. How to Write Clinical Guidelines for Value-Based
    Anesthesia Care
    David A. Lubarsky, M.D.

The manual is available to ASA members free of charge upon request by contacting the ASA Publications Department at (847) 825-5586 or <publications@ASAhq.org>.



Ronald A. Gabel, M.D., is Professor of Anesthesiology, University of Rochester Medical Center, Rochester, New York.



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