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The Impact of Chronic Disease in ABF Environments Colin McCrow Manager ABF Costing

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The Impact of Chronic

Disease in ABF Environments

Colin McCrow

Manager

ABF Costing

Objectives

• In this session we will

• Outline the impacts of Chronic Disease in

an ABF Funding Environment.

• Review issues that affect our ability to

accurately undertake variance analysis

when searching for opportunities for

improvement.

OVERVIEW Impact of Chronic Disease in ABF Environments

Overview • The accurate identification of patients with

chronic disease, along with the introduction

of planned management programs, provides

a number of challenges to the data analysis

team.

• Yet this is an area where we can have a real

impact on patient outcomes and where we

can objectively analyse the reasons

underlying variance between outliers and

the norm.

Overview

• This paper will review what the data tells

us about the current status of the impact of

chronic disease.

• It will outline how we can measure some

chronic disease outcomes

• It will outline the challenges we need to

conquer in an ABF environment.

Research reports • Chronic disease accounts for over 70% of

Australian disease burden, measured by

disability-adjusted life-years, and is

expected to increase to 80% by 2020.

• Recent evidence demonstrates that

prevalence of disease in Australia is

associated with high health care utilization

and increasing medical expenditures. (1)

Research reports • The length of time patients spend in hospital

for specific conditions has a large impact on

overall health system costs. Although longer

hospital stays can be due to factors outside

a hospital’s control, it is also likely there are

considerable opportunities to increase

efficiency by reducing longer hospital stays,

provided patients are not put at risk by being

sent home too soon.(2)

Research reports • COPD is a chronic debilitating, progressive

deteriorating and incurable disease. Patients

with this pathological condition experience

different levels of breathlessness, air hunger

and activity intolerance. Apart from the

patient's outcome, COPD also brings about

an overwhelming impact on health service

utilization. This disease causes considerable

morbidity and hospital readmission

worldwide. (3)

COST IMPACT Impact of Chronic Disease in ABF Environments

Cost Impact • We know that patients who stay longer cost

more.

• We know that patients who use more health

services cost more.

• We know that patients who are more

frequently hospitalised are more likely to

contract hospital acquired conditions.

Data Build Notes

• In order to be able to identify patients with

one or more chronic diseases for this

study admitted patients who had been

coded with one or more chronic disease

conditions where identified. Using their

facility code and patient master index

number we were then able to identify all

ED and outpatient records for that patient.

Admitted (Including Boarders)

Emergency Presentation

Outpatients (Inlcuding Unlinked)

$- $5,000,000,000.00 $10,000,000,000.00 $15,000,000,000.00 $20,000,000,000.00 $25,000,000,000.00

Admitted (Including Boarders) Emergency Presentation Outpatients (Inlcuding Unlinked)

Total Cost $20,247,221,376.97 $2,702,851,889.30 $6,637,227,988.70

CDM Cost $3,072,201,462.84 $292,365,429.43 $388,008,368.49

CDM Costs as part of total Costs by Epsiode Type NHCDC 09-10 to 12-13

85%

15%

NHCDC 09-10 to12-13 Cost Impact Admitted

Admitted No Chronic Disease Admitted With Chronic Disease

89%

11%

NHCDC 09-10 to12-13 Cost Impact Emergency Presentations

ED No Chronic Disease ED With Chronic Disease

94%

6%

NHCDC 09-10 to12-13 Cost Impact Outpatients

Outpatients no Chronic Disease Outpatients with Chronic Disease

As can be seen the cost

impact of patients having

one or more chronic

diseases has a significant

impact on the health care

organisation

09-10 10-11 11-12 12-13

Cost $482,525,945.52 $713,182,379.29 $1,324,654,126.36 $1,232,212,809.59

$-

$200,000,000.00

$400,000,000.00

$600,000,000.00

$800,000,000.00

$1,000,000,000.00

$1,200,000,000.00

$1,400,000,000.00

All flagged Chronic Disease Encounters QLD Total Cost 09-10 to 12-13

Staffing cuts

impacted costs

A number of

smaller facilities

not included in

09-10 NHCDC

$-

$100,000,000.00

$200,000,000.00

$300,000,000.00

$400,000,000.00

$500,000,000.00

$600,000,000.00

$700,000,000.00

$800,000,000.00

$900,000,000.00

$1,000,000,000.00

Cost- All flagged Chronic Disease by HHS Of residence 09-10 to 12-13

Cost

Cairns and Hinterland 5.66%

Cape York 0.16%

Central Queensland 4.69%

Central West 0.15%

Darling Downs 5.24%

Darling Downs/Central Queensland

0.01%

Gold Coast 6.98%

Mackay 3.66%

Metro North 23.47%

Metro North / West Moreton 0.13%

Metro South 18.89%

North West 1.11%

No mapped Postcode 0.06%

Outside QLD 1.23%

South West 0.19%

Sunshine Coast 8.36%

Torres Strait-Northern Peninsula 0.14%

Townsville 6.27%

West Moreton

5.75%

Wide Bay 7.86%

Cost- All flagged Chronic Disease by HHS Of residence 09-10 to 12-13

1

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Chronic Disease Cost (Log scale)

$-

$2,000,000.00

$4,000,000.00

$6,000,000.00

$8,000,000.00

$10,000,000.00

$12,000,000.00

$14,000,000.00

$16,000,000.00

$18,000,000.00

$20,000,000.00

Am

ou

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COPD (only) LHN Cost Variance to Revenue

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RBWH Prince Charles Redcliffe Caboolture KilcoyTreated at Non MN

Hospitals

Cost_Var $(379.24) $(597.64) $(84.25) $122.28 $(1,630.55) $(727.46)

$(1,800.00)

$(1,600.00)

$(1,400.00)

$(1,200.00)

$(1,000.00)

$(800.00)

$(600.00)

$(400.00)

$(200.00)

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$200.00

$400.00

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o r

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nu

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COPD Only LHN Average Cost Variance 11-12 & 12-13

ACUITY & SERVICE VOLUME

IMPACT

Impact of Chronic Disease in ABF Environments

Service Volume Impacts of

Chronic Disease • Patients with chronic diseases will require

more healthcare intervention and support

regardless of length of stay.

• This impact can be seen across all service

settings.

• The higher the % of your population with

Chronic disease the bigger the impost on

service need.

09-10 10-11 11-12 12-13

Encounters 307108 424668 613658 670575

0

100000

200000

300000

400000

500000

600000

700000

800000

No

of

serv

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en

cou

nte

rs

All flagged Chronic Disease Encounters QLD Total Volume 09-10 to 12-13

A number of

smaller facilities

not included in

09-10 NHCDC

Cairns and Hinterland 6.03% Cape York

0.16% Central Queensland

5.83%

Central West 0.10%

Darling Downs 4.38%

Darling Downs/Central Queensland

0.01%

Gold Coast 7.00%

Mackay 4.68%

Metro North 21.08%

Metro North / West Moreton 0.11%

Metro South 17.02%

North West 1.17%

No mapped Postcode 0.03%

Outside QLD 0.73%

South West 0.10%

Sunshine Coast 8.05%

Torres Strait-Northern Peninsula 0.12%

Townsville 8.61%

West Moreton 5.31%

Wide Bay 9.48%

Encounter Volume % All Flagged Chronic Disease by HHS of residence 09-10 to 12-13

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Admitted (Including Boarders)

Emergency Presentation

Outpatients (InlcudingUnlinked)

Admitted (Including Boarders) Emergency Presentation Outpatients (Inlcuding Unlinked)

Total Vol 3915184 4656179 17166147

CDM VOL 655639 361345 999025

CDM Health Interactions as % of Total Interactions NHCDC 09-10 TO 12-13

83%

17%

NHCDC 09-10 to 12-13 Admitted Service Utilisation

Admitted No Chronic Disease Admitted With Chronic Disease

92%

8%

NHCDC 09-10 to 12-13 Emergency Department Service Utilisation

ED No Chronic Disease ED With Chronic Disease

94%

6%

NHCDC 09-10 to 12-13 Outpatient Service Utilisation

Outpatients no Chronic Disease Outpatients with Chronic Disease

Admitted patients have a greater

service volume impact that cost

impact

ED patients the service volume

impact is less than the cost

impact

Outpatients service volume and

cost impacts are the same

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Chronic Disease Encounters (Log scale)

11.48%

35.72%

7.67% 4.13%

41.00%

total rd 14 (09-10)

"A" DRG B" DRG "C"DRG D" DRG "Z"DRG

DRG Profile Changes

9.99%

37.87%

7.72% 4.06%

40.36%

total rd 15 (10-11)

"A" DRG B" DRG "C"DRG D" DRG "Z"DRG

11.14%

37.68%

7.91% 3.87%

39.40%

total rd 16 (11-12)

"A" DRG B" DRG "C"DRG D" DRG "Z"DRG

12.90%

36.70%

14.91% 3.68%

31.82%

total rd 17(12-13)

"A" DRG B" DRG "C"DRG D" DRG "Z"DRG

Version

5.2

Version

6.0x

Version

6.0x Version

6.0x

12.88%

36.32%

15.82% 3.53%

31.45%

total rd 18 (13-14)

"A" DRG B" DRG "C"DRG D" DRG "Z"DRG

DRG Profile Changes

Version

7.0

The proportion of A DRG’s has been

rising over the last four years. This

may be due to four factors:

• Increase in real acuity

• Greater number of patients with

Chronic Disease.

• Improved documentation and

coding of comorbid conditions

with the introduction of ABF

• Improved Classification (note

slight reduction in A DRG’s with

introduction of version 7.0 DRG’s

for whole Jurisdiction data)

Note: some LHNs did not show a drop in A DRG’s for 13-14 they continue to

has a rise in overall A DRG percentage

ISSUES AFFECTING

ANALYSIS

Impact of Chronic Disease in ABF Environments

Analysis Issues

• Formal Coding only in admitted settings,

Data from other settings need to be

matched first to build a patient profile.

• Changes in coding rules regarding chronic

disease makes baseline and time series

analysis difficult.

• Remote settings with less admitted

services may not be able to identify all

chronic disease patients from coded data.

Documentation & Coding

Impacts

94%

6%

Numbers of Chronic Diseases 09-10-12-13

One Chronic Disease Multiple Chronic Diseases

38%

62%

Missing Chronic Diagnosis09-10 to 12-13

Chronic Diagnosis not identified in subseqent episode

Chronic Diagosis On subsequent episode

Note: For patients with multiple chronic diseases once identified on

some future presentation each prior chronic disease may not be

coded. For example a patient with Diabetes and COPD may only

have diabetes coded as a comorbid condition on subsequent

admissions.

DISCUSSION Impact of Chronic Disease in ABF Environments

Discussion Points

• What can we do about improving the

identification, documentation and coding of

comorbid conditions?

• Do new information systems provide the

answer ?

• How do we manage the significant lack of

coding data in ambulatory care ?

CONCLUSIONS Impact of Chronic Disease in ABF Environments

Conclusions • Management in an ABF environment

requires us to understand fully the patient

journey. This is a data driven exercise. We

need to ensure that we can accurately

collect and classify the data across the

continuum of care.

• Chronic Disease has a significant impact on

health service provision and we need to be

able to respond to the challenges this brings.

References

1. 2013, Hamar,G.B.,Rula, E.Y., Wells, A., Coberley, C., Pope, J.E. &

Larkin, S., “ Impact of Chronic Disease Management Programs on

Hospital Admissions and Readmissions in An Australian Population wit

Heart Disease or Diabetes”, Population Health Management, Vol 16.

No. 2 (http://www.aph.gov.au/DocumentStore.ashx?id=70f68540-

226d-455e-aefb-0e4511511fa1)

2. 2013,National Health Performance Authority “ Hospital Performance;

Length o stay in public Hospitals in 2011-12”

(http://www.myhospitals.gov.au/docs/default-source/our-report-

pdfs/HP_LengthOfStay_2011-12_RPT.pdf)

References

3. 2013,Henry, P.C.L, Man,C.S.,Fung,Y.S., “ Effectiveness of nurse-led

disease management programs on health outcomes and health service

utilisation in adult patients with chronic obstructive pulmonary disease:

A systematic review protocol”, JBI Database of Systematic Reviews

and Implementation reports, Vol 11. No 1.

(http://www.joannabriggslibrary.org/jbilibrary/index.php/jbisrir/article/v

iew/615/988)

Questions & Contact

Information

Please direct any questions to:

Colin McCrow

Manager ABF Costing

Healthcare Purchasing & System Performance Branch

Queensland Health

Email : [email protected]