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Page 1: AUPHA/HAP Editorial Board for Graduate Studies · The guide to healthcare reform : readings and commentary / Daniel B. McLaughlin, editor. pages cm Includes index. ISBN 978-1-56793-694-0
Page 2: AUPHA/HAP Editorial Board for Graduate Studies · The guide to healthcare reform : readings and commentary / Daniel B. McLaughlin, editor. pages cm Includes index. ISBN 978-1-56793-694-0

AUPHA/HAP Editorial Board for Graduate Studies

Thomas J. Stranova Jr., ScD, Chairman Tulane University

LTC Lee W. Bewley, PhD, FACHE Army Baylor University

José A. Capriles, MD University of Puerto Rico

Dolores G. Clement, DrPH, FACHE Virginia Commonwealth University

Michael Counte, PhD St. Louis University

Jonathan P. DeShazo, PhD Virginia Commonwealth University

Mark L. Diana, PhD Tulane University

Blair D. Gifford, PhD University of Colorado

James W. Henderson, PhD Baylor University

Suzanne Hobbs, DrPH University of North Carolina at Chapel Hill

Pamela R. McCoy Loyola University Chicago

Nir Menachemi, PhD University of Alabama at Birmingham

Mary S. O’Shaughnessey, DHA University of Detroit Mercy

Andrea G. Sodano, PhD Boston University School of Management

Page 3: AUPHA/HAP Editorial Board for Graduate Studies · The guide to healthcare reform : readings and commentary / Daniel B. McLaughlin, editor. pages cm Includes index. ISBN 978-1-56793-694-0

Health Administration Press, Chicago, Illinois

Association of University Programs in Health Administration, Arlington, Virginia

Page 4: AUPHA/HAP Editorial Board for Graduate Studies · The guide to healthcare reform : readings and commentary / Daniel B. McLaughlin, editor. pages cm Includes index. ISBN 978-1-56793-694-0

Your board, staff, or clients may also benefit from this book’s insight. For more information on quantity discounts, contact the Health Administration Press Marketing Manager at (312) 424–9470.

This publication is intended to provide accurate and authoritative information in regard to the subject matter covered. It is sold, or otherwise provided, with the understanding that the publisher is not engaged in rendering professional services. If professional advice or other expert assistance is required, the services of a competent professional should be sought.

The statements and opinions contained in this book are strictly those of the author and do not represent the official positions of the American College of Healthcare Executives, the Foundation of the American College of Healthcare Executives, or the Association of University Programs in Health Administration.

Copyright © 2015 by the Foundation of the American College of Healthcare Executives. Printed in the United States of America. All rights reserved. This book or parts thereof may not be reproduced in any form without written permission of the publisher.

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Library of Congress Cataloging-in-Publication Data

The guide to healthcare reform : readings and commentary / Daniel B. McLaughlin, editor. pages cm Includes index. ISBN 978-1-56793-694-0 1. National health insurance—Law and legislation—United States. 2. United States. Patient Protection and Afford-able Care Act. 3. Health insurance—Law and legislation—United States. 4. Health care reform—United States. 5. Medical care—Law and legislation—United States. 6. Health services accessibility—United States. 7. Medical policy—United States. I. McLaughlin, Daniel B., 1945– editor. II. Title: Guide to healthcare reform. KF3605.G85 2015 346.73'086382—dc23 2014030723

The paper used in this publication meets the minimum requirements of American National Standard for Information Sciences—Permanence of Paper for Printed Library Materials, ANSI Z39.48-1984. ∞ ™

Acquisitions editor: Janet Davis; Project manager: Amy Carlton; Cover design: Marisa Jackson; Layout: Cepheus Edmondson

Found an error or a typo? We want to know! Please e-mail it to [email protected], and put “Book Error” in the subject line.

For photocopying and copyright information, please contact Copyright Clearance Center at www.copyright.com or at (978) 750–8400.

Health Administration Press Association of University ProgramsA division of the Foundation of the American in Health Administration College of Healthcare Executives 2000 North 14th StreetOne North Franklin Street, Suite 1700 Suite 780 Chicago, IL 60606–3529 Arlington, VA 22201(312) 424–2800 (703) 894–0940

Page 5: AUPHA/HAP Editorial Board for Graduate Studies · The guide to healthcare reform : readings and commentary / Daniel B. McLaughlin, editor. pages cm Includes index. ISBN 978-1-56793-694-0

To my family—Sharon, Kelly, Katie, and Paul

Page 6: AUPHA/HAP Editorial Board for Graduate Studies · The guide to healthcare reform : readings and commentary / Daniel B. McLaughlin, editor. pages cm Includes index. ISBN 978-1-56793-694-0
Page 7: AUPHA/HAP Editorial Board for Graduate Studies · The guide to healthcare reform : readings and commentary / Daniel B. McLaughlin, editor. pages cm Includes index. ISBN 978-1-56793-694-0

v i i

BRIEF CONTENTS

Preface ......................................................................................................................xv

Acknowledgments ................................................................................................xix

Chapter 1 Introduction ........................................................................................... 1

Chapter 2 The Affordable Care Act ......................................................................... 5

Additional Readings .....................................................................16

Chapter 3 Prevention, Wellness, and Population Health ....................................... 22

Additional Readings .....................................................................31

Chapter 4 Chronic Disease Management and Primary Care ............................... 102

Additional Readings ...................................................................112

Chapter 5 Productivity and Quality .................................................................... 170

Additional Readings ...................................................................179

Page 8: AUPHA/HAP Editorial Board for Graduate Studies · The guide to healthcare reform : readings and commentary / Daniel B. McLaughlin, editor. pages cm Includes index. ISBN 978-1-56793-694-0

v i i i B r i e f C o n t e n t s

Chapter 6 Payment Incentives ............................................................................ 226

Additional Readings ...................................................................240

Chapter 7 The Safety Net .................................................................................... 301

Additional Readings ...................................................................309

Chapter 8 The Perfect Market: Health Insurance Reform ................................... 315

Additional Readings ...................................................................326

Chapter 9 Health Policy and Advocacy ............................................................... 349

Additional Readings ...................................................................354

Chapter 10 The Future ......................................................................................... 406

Appendix ............................................................................................................... 415

Page 9: AUPHA/HAP Editorial Board for Graduate Studies · The guide to healthcare reform : readings and commentary / Daniel B. McLaughlin, editor. pages cm Includes index. ISBN 978-1-56793-694-0

i x

DETAILED CONTENTS

Preface ......................................................................................................................xv

Acknowledgments ................................................................................................xix

Chapter 1 Introduction ........................................................................................... 1The Journey ............................................................................................ 1Purpose of This Book ............................................................................. 1How the Book Is Organized ................................................................... 3Objectives .............................................................................................. 3Summary ................................................................................................ 4Applications: Discussion and Research ................................................... 4References .............................................................................................. 4

Chapter 2 The Affordable Care Act ......................................................................... 5The Groundwork Is Laid ........................................................................ 5The Three Theories ................................................................................. 6Legal Challenges to the ACA ................................................................ 13How to Use This Book ......................................................................... 14Summary .............................................................................................. 14Applications: Discussion and Research ................................................. 14References ............................................................................................ 15

Page 10: AUPHA/HAP Editorial Board for Graduate Studies · The guide to healthcare reform : readings and commentary / Daniel B. McLaughlin, editor. pages cm Includes index. ISBN 978-1-56793-694-0

x D e t a i l e d C o n t e n t s

Additional Reading .......................................................................16Reading 2A: Legal Issues in Health Insurance and

Health Reform (excerpt) .............................................................. 16Dean M. Harris

Chapter 3 Prevention, Wellness, and Population Health ....................................... 22Clinical Prevention ............................................................................... 22Wellness ............................................................................................... 25Community Building ........................................................................... 26Summary .............................................................................................. 28Applications: Discussion and Research ................................................. 29References ............................................................................................ 29

Additional Readings .....................................................................31Reading 3A: Introduction/Population Health Management ................ 31

Ann S. McAlearneyReading 3B: Population Health: Practicing Population Health

Management and Measuring Its Success ....................................... 57David B. Nash

Reading 3C: Community Health: A Measurable Management Task ............................................................................................. 64

Connie J. EvashwickReading 3D: ACA Integration Initiatives That Promote

Collaboration ............................................................................... 73Connie J. Evashwick

Reading 3E: Population Health Improvement: A Community Health Business Model That Engages Partners in All Sectors ........ 80

David A. Kindig and George Isham

Chapter 4 Chronic Disease Management And Primary Care............................... 102The Chronic Care Model ................................................................... 102The HITECH Act and Meaningful Use ............................................. 104Policies to Support Chronic Care in the ACA .................................... 104Summary ............................................................................................ 109Notes ................................................................................................. 110Applications: Discussion and Research ............................................... 110References .......................................................................................... 111

Additional Readings ...................................................................112Reading 4A: Government Policy and Healthcare Reform ................. 112

Gerald L. Glandon, Detlev H. Smaltz, and Donna J. Slovensky

Page 11: AUPHA/HAP Editorial Board for Graduate Studies · The guide to healthcare reform : readings and commentary / Daniel B. McLaughlin, editor. pages cm Includes index. ISBN 978-1-56793-694-0

x i D e t a i l e d C o n t e n t s

Reading 4B: Coordinating Care to Provide Effective Population Health Management .................................................................. 144

Heather Jorna and Stephen A. Martin, Jr.Reading 4C: The Patient-Centered Medical Home Solution to

the Cost-Quality Conundrum .................................................... 151Michael Ewing

Reading 4D: Primary Care ................................................................ 161Phoebe Lindsey Barton

Chapter 5 Productivity and Quality .................................................................... 170Productivity ....................................................................................... 170Quality ............................................................................................... 173Health Plan Quality Rating System .................................................... 175Summary ............................................................................................ 177Applications: Discussion and Research ............................................... 177Note .................................................................................................. 178References .......................................................................................... 178

Additional Readings ...................................................................179Reading 5A: How Purchasers Select and Pay for Value: The

Movement to Value-Based Purchasing ....................................... 179François de Brantes

Reading 5B: The Quality Improvement Landscape ............................ 194Kimberly D. Acquaviva and Jean E. Johnson

Chapter 6 Payment Incentives ............................................................................ 226Incentives: The Carrots ....................................................................... 228Penalties: The Stick ............................................................................ 231Fraud and Abuse: The Big Stick ......................................................... 232The Backup Plans ............................................................................... 233Affordability ....................................................................................... 234Structure ............................................................................................ 235Healthcare Inflation Today ................................................................ 235Summary ............................................................................................ 235Applications: Discussion and Research ............................................... 236References .......................................................................................... 237

Additional Readings ...................................................................240Reading 6A: The Accountable Care Organization .............................. 240

Marc Bard and Mike Nugent

Page 12: AUPHA/HAP Editorial Board for Graduate Studies · The guide to healthcare reform : readings and commentary / Daniel B. McLaughlin, editor. pages cm Includes index. ISBN 978-1-56793-694-0

x i i D e t a i l e d C o n t e n t s

Reading 6B: What Every CEO Should Know About Medicare’s Recovery Audit Contractor Program. ......................................... 272

Alan J. Goldberg and Linda M. YoungReading 6C: The Quest for Affordability in Healthcare ..................... 277

Bernard J. TysonReading 6D: The Medicare Hospital Payment Update ...................... 283

Daniel B. McLaughlinReading 6E: Post-Acute Care and Vertical Integration After

the Patient Protection and Affordable Care Act. ......................... 286Patrick D. Shay and Stephen S. Mick

Chapter 7 The Safety Net .................................................................................... 301Eligibility ........................................................................................... 302Navigators .......................................................................................... 302Dual-Eligible Beneficiaries .................................................................. 303Hospitals ............................................................................................ 303Rural Healthcare ................................................................................ 304Community Clinics ............................................................................ 305Healthcare Disparities ........................................................................ 305Summary ............................................................................................ 306Notes ................................................................................................. 306Applications: Discussion and Research ............................................... 307References .......................................................................................... 307

Additional Reading .....................................................................309Reading 7A: Equity of Care—Eliminating Healthcare

Disparities: The Call to Action. .................................................. 309Richard J. Umbdenstock

Chapter 8 The Perfect Market: Health Insurance Reform ................................... 315Universal Coverage ............................................................................. 315Health Insurance Exchanges .............................................................. 316Standard Benefits ............................................................................... 320Increased Government Regulation...................................................... 321Summary ............................................................................................ 323Applications: Discussion and Research ............................................... 323Note .................................................................................................. 324References .......................................................................................... 324

Additional Reading .....................................................................326Reading 8A: Health Insurance Exchanges .......................................... 326

Michael A. Morrisey

Page 13: AUPHA/HAP Editorial Board for Graduate Studies · The guide to healthcare reform : readings and commentary / Daniel B. McLaughlin, editor. pages cm Includes index. ISBN 978-1-56793-694-0

x i i i D e t a i l e d C o n t e n t s

Chapter 9 Health Policy and Advocacy ............................................................... 349Health Policy Process ......................................................................... 349The States ........................................................................................... 350Health Policy and Advocacy ............................................................... 350Summary ............................................................................................ 352Applications: Discussion and Research ............................................... 353Reference............................................................................................ 353

Additional Readings ...................................................................354Reading 9A: The Context and Process of Health

Policymaking ............................................................................. 354Buford B. Longest, Jr.

Reading 9B: Health Policymaking at the State and Local Levels and in the Private Sector ............................................................ 386

Leiyu Shi

Chapter 10 The Future ......................................................................................... 406Making Changes: The Process ............................................................ 406Potential Targets for Change .............................................................. 407Good Ideas Likely To Remain ............................................................ 410What About a Repeal? ........................................................................ 411System Changes ................................................................................. 411Summary ............................................................................................ 412Conclusion ......................................................................................... 413Applications: Discussion and Research ............................................... 413References .......................................................................................... 413

Appendix ............................................................................................................... 415