Many employers do not implement programs to improve quality and value of health benefits

Nov 20, 2007

A new survey indicates that among large employers, many have not examined data on physician quality or shared health plan or physician data with employees that could help improve the value and quality of health benefits, according to a study in the November 21 issue of JAMA.

“Value-based purchasing has often been portrayed as the lynchpin to quality improvement in a market-based health care system. Under this paradigm as it was originally conceived, employers and other large purchasers of health care are expected to contract with health plans according to quality and cost.

Other key elements of value-based purchasing include the promotion of quality improvement in negotiations with health plans and facilitating informed choice of health plan through dissemination of comparative cost and quality information to employees,” the authors write. Although a small group of the largest national employers have been active in improving health care quality through the promotion of quality measurement, reporting, and pay for performance, it is unknown whether these ideas have significantly effected employer-sponsored health benefit purchasing.

Meredith B. Rosenthal, Ph.D., of the Harvard School of Public Health, Boston, and colleagues conducted a national survey of large employers regarding value-based purchasing of health care and related efforts to improve the quality of health care and employee health. The researchers interviewed by telephone executives at 609 of the largest employers across 41 U.S. markets between July 2005 and March 2006. The 41 randomly selected markets have at least 100,000 persons enrolled in health maintenance organizations, include approximately 91 percent of individuals enrolled in health maintenance organizations nationally, and represent roughly 78 percent of the U.S. metropolitan population. The 26 largest employers were identified in each market, with firms ranging in size from 60 to 250,000 employees.

A large percentage of surveyed executives reported that they examine health plan quality data (269 respondents; 65 percent), but few reported using it for performance rewards (49 respondents; 17 percent) or to influence employees (71 respondents; 23 percent). Physician quality information is less commonly examined (71 respondents; 16 percent) or used by employers to reward performance (8 respondents; 2 percent) or influence employee choice of providers (34 respondents; 8 percent).

“Our study suggests that skepticism about the benefits of value-based purchasing may be important because only about one-third of employers viewed each value-based purchasing strategy we asked about as ‘very useful.’ This perception may be due to the lack of a ‘business case’ for the intended outcomes of value-based purchasing in terms of the effects on workforce productivity, benefit cost savings, or the ability to attract and retain employees. Alternatively, some employers may (correctly) perceive that the evidence to support the effectiveness of strategies such as pay for performance and report cards is mixed at best,” the authors write.

Source: JAMA and Archives Journals

Explore further: New research identifies risks, interventions for children's GI health

add to favorites email to friend print save as pdf

Related Stories

UK researcher sentenced to three months' jail for faking data

Apr 19, 2013

A British scientist convicted of scientific fraud last month for falsifying research data has been sentenced to three months jail. Steven Eaton is the first person to serve time under the UK's Good Laboratory Practice Regulations, 1999. ...

Recommended for you

ER docs are key to reducing health care costs

2 hours ago

Emergency physicians are key decisionmakers for nearly half of all hospital admissions, highlighting a critical role they can play in reducing health care costs, according to a new report from the RAND Corporation.

User comments : 0

More news stories

US adviser on board of firm that sold anthrax drug

(AP)—Former Navy Secretary Richard J. Danzig, who has served as a bio-warfare adviser to the president, the Pentagon, and the Department of Homeland Security, urged the government to stockpile an anti-anthrax drug while ...

Expectations high for next Xbox

It's almost time for a new Xbox. Eight years have passed since Microsoft unveiled the Xbox 360, double the amount of time between the original Xbox debut in 2001 and its high-definition successor's launch ...

Lovelorn frogs bag closest crooner

What lures a lady frog to her lover? Good looks, the sound of his voice, the size of his pad or none of the above? After weighing up their options, female strawberry poison frogs (Oophaga pumilio) bag th ...