CHRT report examines cost burden of disease

Some of the most common — and most expensive — reasons for hospitalizations may be at least partially preventable.

Examining the reasons people end up in the hospital could point to opportunities for improving patient care and making the health care system more effective and efficient, according to an issue brief released today by the Center for Healthcare Research & Transformation (CHRT).

Nationally in 2007 four of the top 10 diagnoses related to cardiovascular disease; in Michigan, three of the top 10. Heart disease nationally accounted for more than $143 billion in health care spending — $4.2 billion in Michigan.

“We know many cases of heart disease are potentially preventable,” says CHRT Director Marianne Udow-Phillips. “A focus on prevention and/or early intervention for underlying risk factors such as obesity, diabetes and smoking could have substantial impacts on both patient health and the cost of care.”

Back disorders and septicemia also were among the diagnoses with the highest total spending for hospitalizations in the United States and Michigan — and also at least partially preventable in many cases. In 2007 total hospital spending on back disorders alone was almost $26 billion in the U.S. and $819 million in Michigan.

Another important driver of health care spending examined in the issue brief is the intensity of services provided during a hospital stay. Conditions treated with more expensive technology or requiring intensive care were among the top 10 most costly diagnoses. For example, the average charge for low-birth weight or premature birth was 14 times higher than that for a healthy infant birth: $119,389 per discharge compared to $7,182.

Other areas of note revealed by the data:

• Mood disorders were among the top 10 diagnoses in both Michigan and nationally. In Michigan, mood disorders ranked seventh as a reason for hospitalization for women but were not among the top 10 for men. Earlier identification and treatment could avoid many hospitalizations.

• The generic form of Vicodin was the most frequently prescribed drug both nationally and in Michigan. New behavioral strategies to treat pain associated with many of the top diagnoses could be fruitful alternatives to medication.

This issue brief is the second in a series of reports CHRT will release over the next several months on health care cost in the U.S. and Michigan, comprising data from multiple state and national sources. Future releases will look at geographic variation and spending by patient characteristics.

For an electronic copy of the issue brief on the cost burden of disease, go to the CHRT Web site, www.chrt.org, or send an e-mail to [email protected]

CHRT sponsors research and public information to promote evidence based care delivery, improve population health, and expand access to care. Housed at U-M, CHRT is a partnership between U-M and Blue Cross Blue Shield of Michigan to test the best ideas for improving the effectiveness and efficiency of the health care system.

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