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67 andrew gelman stats-2010-06-03-More on that Dartmouth health care study


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Introduction: Hank Aaron at the Brookings Institution, who knows a lot more about policy than I do, had some interesting comments on the recent New York Times article about problems with the Dartmouth health care atlas. which I discussed a few hours ago . Aaron writes that much of the criticism in that newspaper article was off-base, but that there are real difficulties in translating the Dartmouth results (finding little relation between spending and quality of care) to cost savings in the real world. Aaron writes: The Dartmouth research, showing huge variation in the use of various medical procedures and large variations in per patient spending under Medicare, has been a revelation and a useful one. There is no way to explain such variation on medical grounds and it is problematic. But readers, including my former colleague Orszag, have taken an oversimplistic view of what the numbers mean and what to do about them. There are three really big problems with the common interpreta


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1 Hank Aaron at the Brookings Institution, who knows a lot more about policy than I do, had some interesting comments on the recent New York Times article about problems with the Dartmouth health care atlas. [sent-1, score-0.182]

2 Aaron writes that much of the criticism in that newspaper article was off-base, but that there are real difficulties in translating the Dartmouth results (finding little relation between spending and quality of care) to cost savings in the real world. [sent-3, score-0.812]

3 Aaron writes: The Dartmouth research, showing huge variation in the use of various medical procedures and large variations in per patient spending under Medicare, has been a revelation and a useful one. [sent-4, score-1.149]

4 There is no way to explain such variation on medical grounds and it is problematic. [sent-5, score-0.18]

5 Spending variations on Medicare are inversely related to spending variations by private payers. [sent-9, score-1.011]

6 That means that what appear to be high spending areas are, in many cases, high cost-shifting areas. [sent-10, score-0.622]

7 Two sights in Wisconsin, in cluding one that includes the justifiabley praised Marshfield Clinic, have among the lowest per person Medicare spending in the nation, but were found to have among the highest private per person spending in the nation. [sent-11, score-1.408]

8 What counts is total medical spending if one wants to relate spending and quality. [sent-12, score-1.133]

9 Knowing that spending is high and poorly correlated with measures of quality (if such a correlation exists! [sent-14, score-0.623]

10 ) is not the same as knowing how to pare spending in a way that increases net social benefit from health care. [sent-15, score-0.758]

11 Repeated studies have shown that medical care spending ON THE AVERAGE produces benefits far greater than its cost, but that AT THE MARGIN there is a lot of waste. [sent-16, score-0.919]

12 The waste is observed, for the most part, ex post. [sent-17, score-0.259]

13 To be sure that cutting spending improves well- being one has to be able to predict ex ante who will derive benefits that are less than cost. [sent-18, score-0.985]

14 There are some egregious situations where ex ante waste can be demonstrated. [sent-19, score-0.435]

15 But for the most part, we just do not have good enough research to predict with sufficient accuracy who will benefit and who will not from doing more of some procedure. [sent-20, score-0.205]

16 Some research has shown that even the most glaring cost differences noted in the Dartmouth research are associated with improved outcomes for those conditions where something close to random assignment of patients to alternative patient regimes occurs. [sent-24, score-0.411]

17 He found that they did better in Florida counties that spent most, the very counties that the Dartmouth folks have held up for their poor average outcomes. [sent-29, score-0.25]

18 He also found that preemies who were a couple of grams under the threshold at which they are described as in need of intensive care did materially better than did preemies a couple of grams over that threshold and, hence, treated as normal births. [sent-30, score-0.993]

19 The weight difference was too small to matter medically and went in the wrong direction; the intensity of care mattered. [sent-31, score-0.189]

20 The Administration, and Orszag in particular, were wrong in neglecting the warning to forecasters of Scottish economist, Alec Cairncross, ‘Give a number. [sent-33, score-0.12]


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