Healthcare Financial News

The House on Sept. 10 voted 417-0 to approve a bill (H.R. 1527) that would establish a three-year pilot program to allow “highly rural” veterans enrolled in four of the Department of Veterans Affairs’ (VA) 21 healthcare networks to receive health services through outside providers. The bill defines highly rural as veterans seeking primary care who live more than 60 miles from the nearest VA facility; veterans seeking acute hospital care who live more than 120 miles from a facility; and those seeking tertiary care who live more than 240 miles from a facility. The bill also would allow veterans to access care at other facilities if VA determines that travel would be difficult for veterans or subject them to hardship.

Separately, the House voted 418-0 the same day to approve a bill (S. 2617) that would provide a cost-of-living increase in disability benefits for veterans and dependents and indemnity compensation for the families of veterans. The increase, which will be calculated as of Sept. 30, is expected to be about 2.8 percent, compared with 2007’s increase of 2.3 percent. If approved, the new rate would take effect on Dec. 1. According to House Committee on Veterans’ Affairs Chair Bob Filner (D-Calif.), the increase would affect more than 3 million veterans and roughly 300,000 survivors in FY09, according to VA figures.

The exchange of health information electronically between physicians, hospitals, health plans, and patients is decreasing the cost of care and improving outcomes, according to a new survey released by the not-for-profit eHealth Initiative on Sept. 11. The 2008 Fifth Annual Survey of Health Information Exchange at the State and Local Levels, which included responses from 130 community-based initiatives in 48 states, shows the significant impact fully operational initiatives are having on improving healthcare delivery and efficiency.

Among the key findings:
* A majority (69%) of the fully operational exchange efforts report reductions in healthcare costs. These respondents say health information exchange allows them to decrease dollars spent on redundant tests; reduce the number of patient admissions to hospitals for medication errors, allergies, or interactions; decrease the cost of care for chronically ill patients; and reduce staff time spent on administration.
* About half (52 percent) of fully operational exchange efforts report positive impacts on healthcare delivery, including a decrease in prescribing errors.
* For the first time, a majority (69 percent) of the fully operational respondents report a positive ROI for their participating stakeholders, including health plans, hospitals, laboratories, and physician practices. In 2007, just 31 percent reported a positive ROI. Access the report.