CMS’ Star Ratings Miscalculated

Modern Healthcare is reporting that the Centers for Medicare and Medicaid Services (CMS) has miscalculated hospitals star ratings since they were first released in 2016 (1). Officials at Rush University Medical Center in Chicago exclusively disclosed their analysis and correspondence to Modern Healthcare. The investigators found that instead of evenly weighting the eight measures in the safety of care group, the CMS' star ratings formula relied heavily on one measure— The Patient Safety and Adverse Events Composite, known as PSI 90 —for the first four releases of the ratings and then complication rates from hip and knee replacements for the latest release. The single measure accounted for about 98% of a hospital's performance in the safety group, according to Rush's analysis. The safety group can also greatly influence a hospital's overall star rating, the analysis concluded. Rush's findings likely prompted the CMS to announce this week that it would postpone the July release of its star ratings (1).

The statistical model the CMS uses likely caused the miscalculation. The model, called latent variable modeling, uses scores for seven groups of measures to calculate the star ratings:

1. Mortality
2. Safety of Care
3. Readmission
4. Patient Experience
5. Effectiveness of Care
6. Timeliness of Care
7. Efficient Use of Medical Imaging

The three outcome groups—mortality, safety and readmissions—are each weighted the most at 22% each. Measures within each group are supposed to be evenly weighted to calculate the hospital's performance in that area. Rush's analysis found that the weight given to the PSI-90 measure was much greater than the seven other measures in the safety group. Specifically, PSI-90 was weighted 1,010 times stronger than the catheter-associated urinary tract infections measure, 81 times stronger than the C. difficile infection rates measure, 51 times stronger than the central line-associated bloodstream infection rates measure and 20 times stronger than either the surgical site infection rate measure.

Latent variable modeling changes the weighting and is inappropriate for measuring clinical outcomes, said David Levine, senior vice president of advanced analytics and informatics at Vizient (1). "Given the disproportionate weighting of the safety scores over time, they did not represent a composite measure," said Dr. Omar Lateef, an author of the analysis and Rush's senior vice president and chief medical officer (1). Lateef said he and his colleagues at Rush were alarmed by a rating drop from 5 to 3 stars because they have improved performance on five of the eight safety measures since the December release. " Lateef added that although CMS was initially dismissive of Rush’s concerns that CMS has come around since presented with Rush’s analysis.

CMS announced earlier this week that it was delaying release of the star ratings "to address stakeholders concerns." No date has been set for when the new ratings will be released.

Richard A. Robbins, MD

Editor, SWJPCC

Reference

1. Maria Castellucci M. CMS star rating system has been wrong for two years, health system finds. Modern Healthcare. June 15, 2018. Available at: http://www.modernhealthcare.com/article/20180615/TRANSFORMATION01/180619933?utm_source=modernhealthcare&utm_medium=email&utm_content=20180615-TRANSFORMATION01-180619933&utm_campaign=am (accessed 6/15/18).

Cite as: Robbins RA. CMS' star ratings miscalculated. Southwest J Pulm Crit Care. 2018;16(6):338-9. doi: https://doi.org/10.13175/swjpcc078-18 PDF 

VA Announces Aggressive New Approach to Produce Rapid Improvements in VA Medical Centers

The U.S. Department of Veterans Affairs (VA) announced steps that it is taking as part of an aggressive new approach to produce rapid improvements at VA’s low-performing medical facilities nationwide (1). VA defines its low-performing facilities as those medical centers that receive the lowest score in its Strategic Analytics for Improvement and Learning (SAIL) star rating system, or a one-star rating out of five. The SAIL star rating was initiated in 2016 and uses a variety of measures including mortality, length of hospital stay, readmission rates, hospital complications, physician productivity and efficiency. A complete listing of the VA facilities, their star ratings and the metrics used to determine the ratings is available through the end of fiscal year 2017 (2). Based on the latest ratings, the VA currently has 15 one-star facilities including Denver, Loma Linda, and Phoenix in the Southwest (Table 1).  

Table 1. VA facilities with one-star ratings (1).

1. Big Spring (Texas)
2. Denver (Colorado)
3. Dublin (Georgia)
4. El Paso (Texas)
5. Jackson, (Mississippi)
6. Hampton (Virginia)
7. Harlingen (Texas)
8. Loma Linda (California)
9. Memphis (Tennessee)
10. Murfreesboro (Tennessee)
11. Nashville (Tennessee)
12. Phoenix (Arizona)
13. Roseburg (Oregon)
14. Walla Walla (Washington).
15. Washington (DC)

The steps VA is taking to produce rapid improvements at its low-performing facilities include (Table 2):

Table 2. VA steps to produce rapid improvements at low-performing facilities (1).

1. Central, national accountable leadership – VA has designated Dr. Peter Almenoff, Director of VA’s Office of Reporting, Analytics, Performance, Improvement and Deployment (RAPID) Healthcare Improvement Center, to oversee improvement at each of the centers.
2. Comprehensive analysis and identification of improvement targets – VA is employing a new initiative, known as Strategic Action Transformation (STAT), that uses a rigorous and formal approach based on clinical performance indicators to identify vulnerabilities in each low-performing facility and set specific targets for improvement.
3. Provision of national resources for improvement – VA’s RAPID team of experts will use sophisticated statistical tools to track the progress of improvement against these targets, and, where warranted, will dispatch a team of expert improvement coaches quickly to the medical centers to assist them in meeting the goals.
4. Accountability for results –VA’s Central Office will review each of the facilities quarterly, and if the facilities fail to make rapid substantial progress in their improvement plan, VA leadership will take prompt action, including changing the leadership of the medical center.

VA secretary David Shulkin stated that “President Trump has made it clear that our Veterans deserve only the best when it comes to their healthcare, and that’s why we are focusing on improving our lowest performing facilities nationwide” (1). The VA recently removed the Roseburg Oregon VA Medical Center director who was accused of manipulating hospital admissions to improve the hospital’s rating (3). Almenoff, the overseer of improvement, was transferred from his position as the VA Integrated Network 15 director in 2008 when the Marion VA came under fire for substandard care raising concerns from several Illinois legislators, including the then junior senator from Illinois, Barack Obama (4).

A major hurdle will be for the VA to hire sufficient staff to improve care. As of the end of June, the VA reported 35,554 job vacancies system-wide, and VA Secretary David Shulkin has cited challenges with hiring doctors and nurses, particularly mental health care professionals (5). The agency set a goal to hire 1,000 mental health care workers in 2017. The VA hired 900 last year, but lost 945. The Veterans Access, Choice and Accountability Act of 2014 appropriated several billion dollars to the VA but this apparently did not lead to hiring of sufficient healthcare providers.

Richard A. Robbins, MD

Editor, SWJPCC

References

1. VA Office of Public and Intergovernmental Affairs. VA announces aggressive new approach for low-performing medical centers. February 1, 2018. Available at: https://www.va.gov/opa/pressrel/pressrelease.cfm?id=4004 (accessed 2/14/18).
2. US Department of Veterans Affairs. Quality care. Available at: https://www.va.gov/QUALITYOFCARE/measure-up/Strategic_Analytics_for_Improvement_and_Learning_SAIL.asp (accessed 2/14/18).
3. Phillips D. Director of veterans hospital accused of manipulating ratings is replaced. New York Times. February 1, 2018. Available at: https://www.nytimes.com/2018/02/01/us/veterans-roseburg-director.html (accessed 2/14/18).
4. Durbin D, Obama B, Costello J, Shimkus J. Letter to The Honorable James B. Peake, M.D., Secretary of Veterans' Affairs. July 23, 2008. Available at: https://votesmart.org/public-statement/363179/letter-to-the-honorable-james-b-peake-md-secretary-of-veterans-affairs?flavour=mobile&utm_source=votesmart&utm_medium=mobile-link&utm_campaign=flavourswitch#.WoR3Dq6nGUk (accessed 2/14/18).
5. Wentling N. Federal unions march on VA headquarters to protest staffing shortages. Stars and Stripes. February 13, 2018. Available at: https://www.stripes.com/federal-unions-march-on-va-headquarters-to-protest-staffing-shortages-1.511543 (accessed 2/14/18).

Cite as: Robbins RA. VA announces aggressive new approach to produce rapid improvements in VA medical centers. Southwest J Pulm Crit Care. 2018;16(2):91-3. doi: https://doi.org/10.13175/swjpcc034-18 PDF

Healthcare Payments Under the Budget Deal: Mostly Good News for Physicians

In the early morning hours last Friday (2/9/18) Congress passed and President Trump signed a massive budget agreement (1). The spending package will cost about $320 billion over 10 years, according to the Congressional Budget Office. Payments for healthcare substantially increase under the deal. Most praised the agreement. "Congress made the right choice this morning for patients and communities by voting to halt damaging cuts to hospitals that care for low-income working families and others who face financial challenges," said Dr. Bruce Siegel, CEO of America's Essential Hospitals, which represents the nation's safety-net facilities. Marc Goldwein of the Center for a Responsible Federal Budget called the healthcare provisions the one "beacon of light" in what otherwise is an exorbitantly costly budget bill. Goldwein praised its mix of structural reforms with "reasonable policy” and liked that the bill pays for the increased healthcare spending.

The bill extends Medicare physician fee cuts that provide about $38 billion in offsets to the increased spending (2). The bill preserves the planned physician fee cuts at 0.5% in 2018 but would reduce the cut to 0.25% in 2019. Not all were pleased by the continuation of the cuts. Calling it "contrary to Congress' intent” ACP President Jack Ende called on Congress to enact permanent relief from the physician fee cuts.

Other major healthcare provisions include (1,2):

• Continued funding for community health centers for two years.
• A two-year delay to the already-in-effect payment cuts to Medicaid disproportionate-share hospitals (DSH) which predominately represent safety net hospitals.
• A two-year delay in the low-volume adjustment program which predominately affects rural hospitals.
• An additional 4-year extension of the Children's Health Insurance Program (CHIP), which had received a 6-year extension in the continuing resolution that was approved in January.
• Forcing pharmaceutical companies to pay 75 percent of the cost of drugs for seniors in Medicare’s coverage gap a year earlier than planned.
• Repeal of the "therapy cap”, a move long pushed by therapy provider groups and the American Association of Retired Persons. This would permanently repeal Medicare's coverage limit on physical therapy, speech-language pathology, and outpatient treatment.
• $6 billion for the opioid epidemic, which will go toward state grants, public prevention programs, and law enforcement.
• Funding for the Maternal, Infant, and Early Childhood Home Visiting Program, which helps at-risk pregnant women and families navigate the social safety net.
• A reduction in Medicare payments to Home health agencies. They're expected to lose $3.5 billion in Medicare payments starting in 2020 due to a change in the way Medicare calculates annual payment updates.
• Funding the Chronic Care Act, which opens up new flexibilities for Medicare Advantage and care for chronically ill Medicare beneficiaries.
• A 2-year delay in implementing The Affordable Care Act's high-cost plan tax, popularly known as the “Cadillac tax”. This was a 40 percent excise tax on employer plans exceeding $10,200 in premiums per year for individuals and $27,500 for families. The tax is now scheduled to take effect in 2020.
• Repeal of Independent Payment Advisory Board (IPAB). Provider groups from the American Medical Association to the American Hospital Association applauded the move, even though Congress has never triggered the panel, which was charged to find and implement Medicare savings.

However, not all were pleased by the repeal of cost containments. IPAB repeal doesn't cost much in the grand scheme of things, said Mark Goldwein from the Center for a Responsible Federal Budget but “the long-term policy implications are huge, and a big mistake” (2). Kaiser Family Foundation Senior Vice President Larry Levitt chided that the bill demonstrates “…healthcare cost containment generally seems better in theory than in practice” (2).

Richard A. Robbins, MD

Editor, SWJPCC

References

1. Luthi S. Beacon of light: Healthcare additions in budget law pleasantly surprise providers. Modern Healthcare. February 9, 2018. Available at: http://www.modernhealthcare.com/article/20180209/NEWS/180209895 (accessed 2/12/18).
2. Ault A. Trump signs budget deal, cuts Medicare fee in 2019. Medscape. February 9, 2018. Available at: https://www.medscape.com/viewarticle/892491 (accessed 2/12/18).

Cite as: Robbins RA. Healthcare payments under the budget deal: mostly good news for physicians. Southwest J Pulm Crit Care. 2018;16(2):88-9. doi: https://doi.org/10.13175/swjpcc032-18 PDF 

Hospitals Plan to Start Their Own Generic Drug Company

The New York Times reports that groups representing more than 450 hospitals plan to form their own generic drug company (1). Intermountain Healthcare is leading the collaboration with several other large hospital groups, Ascension, SSM Health and Trinity Health, in consultation with the U.S. Department of Veterans Affairs, to form a not-for-profit drug company. The new firm is looking to create generic versions of about 20 existing drugs that the group says cost too much now or are in short supply. The article did not name the drugs targeted but expects the first of its pharmaceutical products to become available in 2019. Members of the consortium will contribute funds to finance the new drug company.

Richard A. Robbins, MD

Editor, SWJPCC

Reference

1. Abelson R, Thomas K. Fed up with drug companies, hospitals decide to start their own. New York Times. January 18, 2018. Available at: https://www.nytimes.com/2018/01/18/health/drug-prices-hospitals.html (accessed 1/19/18).

Cite as: Robbins RA. Hospitals plan to start their own generic drug company. Southwest J Pulm Crit Care. 2018;16(1):48. doi: https://doi.org/10.13175/swjpcc014-18 PDF

Flu Season and Trehalose

Most of us who are practicing medicine know that we are in a very active flu season. This was brought home to me when last week trying to admit a patient to the hospital from the office. She was a bone marrow transplant patient who had severe diarrhea and dehydration probably secondary to C. difficile. Hospital admissions said the patient had to be sent to the Emergency Room because the hospital was full due to the flu epidemic.

Nationwide there has been a dramatic increase in the number of hospitalizations due to influenza over the past week from 13.7 to 22.7 per 100,000 (1). Influenza A(H3N2) has been the most common form of influenza reported this season. These viruses are often linked to more severe illness, especially in children and people age 65 years and older. Fortunately, the CDC also says that the flu cases may be peaking. However, at least 11 to 13 more weeks remain in the influenza season and strains other than A(H3N2) will undoubtedly show up.

Clinicians are reminded that in addition to the flu vaccine for prevention, to begin neuraminidase inhibitor antivirals early. Patients at high risk for complications (elderly, children, pregnant women, patients with chronic diseases such as diabetes, heart disease and asthma) should have treatment begun before laboratory confirmation (2).

Many clinicians have noted an increase in the incidence and severity of C. difficile infection over the past 15 years. Because the infection occurs after high dose antibiotics or antibiotics prescribed over a long period of time, it was assumed that this was the cause of the rising rates of infection. However, an alternative explanation was offered by an article appearing last week in Nature (3). The authors showed that two epidemic ribotypes of C. difficile (RT027 and RT078) have acquired unique mechanisms to metabolize low concentrations of the disaccharide trehalose increasing virulence. Trehalose is a sugar widely distributed in nature and used mostly a stabilizing agent in processed foods and products (including influenza vaccine). It was introduced about the same time as the upsurge in C. difficile infection began in the early 2000's.

Richard A. Robbins, MD

Editor, SWJPCC

References

1. Brooks M. US influenza activity widespread and intense, may be peaking. Medscape. January 12, 2018. Available at: https://www.medscape.com/viewarticle/891265?nlid=120062_3901&src=wnl_newsalrt_180112_MSCPEDIT&uac=9273DT&impID=1533392&faf=1 (accessed 1/14/18). 
2. Campbell A. 2016-2017 influenza antiviral recommendations. Medscape. January 9, 2017. Available at: https://www.medscape.com/viewarticle/873988?src=par_cdc_stm_mscpedt&faf=1 (accessed 1/14/18).
3. Collins J, Robinson C, Danhof H, et al. Dietary trehalose enhances virulence of epidemic Clostridium difficile. Nature. 2018 Jan 3. [CrossRef] [PubMed]

Cite as: Robbins RA. Flu season and trehalose. Southwest J Pulm Crit Care. 2018;16(1):44-5. doi: https://doi.org/10.13175/swjpcc011-18 PDF