Navigation Links
Economic theory actually works in health care

WASHINGTON A study of 7,424 privately insured colon cancer patients found that managed care presence in the market and hospital competition increased the likelihood laparoscopic surgery to treat colon cancer lowered costs, a national team of researchers led by a professor at the George Washington University School of Public Health and Health Services reported in the journal Cancer, May 8, 2012.

Colon cancer is the second leading cause of cancer death in the U.S., and surgical resection is the standard of care. In 2004, there were approximately 134,000 colectomies performed in the U.S.

The researchers examined whether market forces such as managed care or hospital competition affected the likelihood of an open resection, involving a long incision and lengthy hospitalization and recovery, versus laparoscopic surgery with minimal incisions and shorter hospital stays and recoveries.

"This is a timely analysis in the era of health care reform," said Avi Dor, PhD, lead author and professor of health policy in the Department of Health Policy at GWU's school of public health. "It demonstrates that competition among providers can be harnessed to benefit patients and consumers."

A 10% increase of health maintenance organization (HMO) penetration in a market was associated with a 10.3% increase in the utilization of laparoscopy, the researchers found. Also, using a standard measure of hospital competition, they found that less competition was associated with a lower likelihood of laparoscopy.

The team of researchers utilized a database of claims for privately insured individuals, allowing them to analyze actual payments received by payments. In fact, they found the average cost for laparoscopy was $18,133 compared to an average cost of $21,257 for open surgery.

In reviewing the data for the 7,424 patients treated between 2002 and 2007, the researchers adjusted for patient severity and risk. Of the 7,424 patients, 1,035 (or 13.96%) underwent laparoscopic surgery.

Other findings include:

  • By 2007, patients were 12.5 times more likely to undergo laparoscopy compared to 2002.
  • The price of colectomy procedures was 17.5% lower in 2007 than in 2002.

"Our results carry important implications for health policy and hospital financing beyond the particular procedure studied," the researchers wrote. "(I)n certain cases, adoption of novel procedures may not necessarily drive prices higher, but rather, it may result in price discounts and real savings."

Contact: Stacey DiLorenzo
George Washington University

Related medicine news :

1. UC Irvine study finds racial, economic disparities in ovarian cancer care, survival
2. US economic woes ripple all the way to Latin America, U-M study shows
3. Economic and social growth of developing nations may increase obesity
4. IU study: Socioeconomic status more influential than race in determination of child abuse
5. Rutgers study finds paid family leave leads to positive economic outcomes
6. UofL centers have economic impact in excess of $5.7 million
7. Gestational diabetes and low socioeconomic status linked with increased risk of ADHD in offspring
8. Socioeconomic Status Main Predictor of Health Habits: Study
9. The economic cost of advanced liver disease
10. Decrease in observed rate of TB at a time of economic recession
11. Increased use of bikes for commuting offers economic, health benefits
Post Your Comments:
(Date:12/1/2015)... ... December 01, 2015 , ... SonaCare ... 2015 HSJ Acute Sector Innovation Award on November 18th. This prestigious award recognizes ... and propose exciting enhancements to the medical landscape. , The UCLH team won ...
(Date:11/30/2015)... , ... December 01, 2015 , ... The Turks & ... one of the leading digital news sites highlighting Caribbean destinations, has published five reasons ... While much of North America shivers under chilly grey skies or worse, it's typically ...
(Date:11/30/2015)... ... December 01, 2015 , ... Live Very Well is ... insurance plans on . The multi-carrier insurance exchange platform offers individual ... allowing consumers to compare, quote and match plans to meet their needs. ...
(Date:11/30/2015)... ... ... According to research by the National Association of Dental ... certified or obtain continuing education. To increase awareness of the lack of standards ... inform dentists that the technicians they trust could lack the skills and knowledge ...
(Date:11/30/2015)... (PRWEB) , ... November 30, 2015 , ... The world ... strip harvesting and follicular unit extraction. These techniques and procedures have been in use ... suffering from hair loss. While Dr. Parsa Mohebi, M.D. has utilized many of these ...
Breaking Medicine News(10 mins):
(Date:11/30/2015)... November 30, 2015 ... adds a 2015 publication ... - 2015 with comprehensive analysis of ... of deal types, such as Mergers ... . ...
(Date:11/30/2015)... 2015 --> --> ... Market by Product (Soft Tissue, All Tissue, Dental Welding Lasers), ... and Geography - Global Forecast to 2020", published by MarketsandMarkets, ... a CAGR of 5.2% during the forecast period from 2015 ... and 62 Figures spread through 167 P ages and ...
(Date:11/30/2015)... SAN DIEGO , Nov. 30, 2015 /PRNewswire/ ... ARNA ) today announced that the U.S. Food and ... Drug Application (NDA) for an extended release formulation of ... patients a chronic weight management treatment in a once-daily ... approved as an adjunct to a reduced-calorie diet and ...
Breaking Medicine Technology: