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Developing a Medicare Quality Assurance Strategy

Table 7.1: Advantages and Disadvantages of Placing Comprehensive Quality Assurance Program in Existing Organizations Organization

HCFA

NCHSR&HCTA

NIH

ASPE

Advantages

Programmatic needs apparent, should increase relevance of quality assurance research

Familianty with and access to data

Strong tradition of sound peer review of research proposals

Historic involvement in quality assurance research and development from diverse perspectives

Experience in advising HCFA on coverage issues and cooperative research efforts

Good access to health services, clinical research and medical professional communities

Strong tradition of research support and sound peer review of proposals Visibility, stability, and relative autonomy

Ready access to clinical researchers and medical professional community

Organizational location should facilitate access to relevant agencies in HHS Responsible for coordinating planning and evaluation activities

Disadvantages

Weak tradition of sound peer review of research proposals

Funding decisions driven by policy priorities, sometimes in conflict with technical merit of proposed research

Potential conflict between quality of care needs and cost control and coverage decisions

Strained relations with professional communities

Indirect access to HCFA data

Indirect links to HCFA program issues

Unstable budget history; instability of research funding

Historic disinterest in health services research

Potential conflict between incentives to develop new technologies and the need to determine their effectiveness and establish practice standards

Indirect access to HCFA data

Indirect links to HCFA program issues Weak tradition of peer review of research proposals

Limited influence over other research funding agencies with their own staff and budget Limited experience with health services research

Indirect access to HCFA data

Indirect links to HCFA program issues

Authority to fund research limited to specific topics or immediate research needs

(continued)

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Placing a quality assurance research and evaluation program outside
HHS involves similar trade-offs. If this entity were developed as an inde-
pendent agency or a combined effort of the private and public sectors, it
might attract broader support from medical professional societies and
health industry groups. A joint public-private venture would be less
dependent on federal funding. Both approaches might experience diffi-
culty, however, in gaining access to federal data systems and ensuring
an adequate understanding of the programmatic needs and operations of
the Medicare program. Furthermore, ensuring long-term stability could
be difficult in the absence of permanent authority or funding commit-
ments. Whether an independent agency could be integrated sufficiently
into the policymaking process to effect changes in the Medicare program
also needs to be considered, along with the issue of public accountabil-
ity. It may be preferable to divide these responsibilities among two or
more organizations, based on their comparative advantages. Thus, the
knowledge generation and methods development might be assigned to
one entity, while activities specific to the quality assurance require-
ments of Medicare and other programs could be assigned elsewhere. In
table 7.1, we summarize the pros and cons of organizing a comprehen-
sive program for quality assurance in existing organizations, highlight-
ing the issues discussed above.

Conclusion

Current systems for reviewing Medicare services, assessing the extent or distribution of quality of care problems, and developing methods for measuring and monitoring quality of care are not designed to meet current or future policy and program evaluation needs. To ensure that individual covered services are provided appropriately and meet professional standards, the first priorities should be to improve current HCFA data systems, to document the effectiveness of current review

Developing a Medicare Quality
Assurance Strategy

methods, and to determine how program data can be used to provide better information on quality of care.

To identify broader problems in the Medicare population that may be associated with poor health care outcomes or the unnecessary or inappropriate use (or nonuse) of Medicare services, and to develop improved quality assurance methods that reflect changing clinical and reimbursement practices, a more comprehensive research and development program is required. This involves drawing on resources outside HCFA, including the clinical expertise, research, and methodology skills found in the Public Health Service and in the wider medical and health services research communities. It also requires the development of an organizational structure to facilitate the incorporation of emerging information on good clinical practice into the development of quality assurance methods, and ultimately, the integration of that knowledge into Medicare review activities.

Matter for
Consideration by the
Subcommittee

The Subcommittee should consider developing legislative proposals to assign specific responsibilities to a new federal entity or existing entities designed to (1) develop, disseminate, and coordinate activities intended to advance the development of quality assurance methods and good medical practice, and (2) incorporate this knowledge into Medicare quality assurance efforts.

In their comments on the draft report, HHS did not concur with the concept of creating a new federal entity, stating it could result in a duplication of effort and inadequate communication. The agency stated, however, that improvements in internal coordination would be considered. In our discussion of alternative locations, we considered several existing agencies within HHS and did not mean to imply that responsibility should be given to a new office or agency, although that is an option. We have added the word "existing" to the phrase "new federal entity or existing entities" to clarify our intent. Nevertheless, the key point remains unchanged: There is no office or formal program in HHS charged with responsibility for basic research and development of quality assurance methods that would bridge the gap between clinical research and ongoing quality assurance programs in the manner we have specified.

We have briefly outlined five possible locations for quality assurance research and development activities. Each offers advantages and disadvantages; any configuration would require more funding than is currently being spent. However, the difficulties involved in structuring a

Developing a Medicare Quality
Assurance Strategy

quality assurance research and evaluation program do not, in our opinion, outweigh its potential benefits. Such an initiative would be an essential first step in developing an improved quality review system that can safeguard the health care of Medicare beneficiaries.

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In view of these considerations, the Subcommittee on Health of
the Committee on Ways and Means would like the General Accoun-
ting Office to conduct a study which would examine options for
monitoring and evaluating quality. We would like GAO to
undertake two closely related tasks:

(1) Examine options for short-term improvements in the
measurement of the quality of care in the medicare program.
We would like GAO to describe and analyze measures and
methodologies that are currently available for the evalua-
tion of quality of care. This review would focus on data
elements that are routinely incorporated in medicare's
administrative data system and elements which could be
incorporated in the system with little additional cost.
(2) Develop recommendations for a long-term effort with
regard to measuring and monitoring quality of care.

We would also like GAO to develop recommendations con-
cerning a long-term strategy for monitoring and monitoring
quality of care. This should include recommendations
regarding future research efforts. In developing these
recommendations, we would like GAO to comment on the
adequacy of funding and the focus and direction of quality-
related research activities currently supported or planned
by the Department of Health and Human Services.

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