Fragmentation in healthcare delivery means the
systematic misalignment of incentives or lack of coordination that
spawns inefficient allocation of resources or harm to patients. It
adversely impacts quality, costs and outcomes.Eliminating waste
from unnecessary, unsafe care is crucial for improving quality and
reducing costs-and making the system financially sustainable. Many
believe this can be achieved through greater integration of
healthcare delivery. It is also accountable, both clinically and
fiscally, for the clinical outcomes and health status of the
population or community served, and has systems in place to manage
and improve them. Evidence suggests that IDSs can improve
healthcare quality, improve outcomes, and reduce costs-especially
for patients with complex needs-if properly implemented and
coordinated. No single approach or public policy will fix the
fragmented healthcare system.
- It is no secret: our healthcare system is fragmented, suffering
from what George Halvorson calls "clinical linkage
deficiencies."
- These systemic deficiencies, evidenced by conflicting
incentives and lack of coordination, cost lives and fuel the
unsustainable spiral of US healthcare expenditures.
For example, the Dartmouth Institute for Health Policy &
Clinical Practice estimated that 30% to 40% of all hospitalizations
are avoidable and that among regions, Medicare costs can vary 2- or
3-fold higher to treat similarly ill patients, without better
outcomes.
- As late as 2005, preventable medical errors caused more deaths
than breast cancer, automobile accidents, or drowning.
- In January 2009, an article in The New England Journal of
Medicine stated that using a simple surgical checklist could
reduce the death rate from surgery by half, decrease complications
by more than a third, and save US hospitals about $15 billion per
year.
Potential impact of this
fragmentation on actual patient care
Fragmentation is steeped in the history and culture of medicine
and is embedded population-wide in the current
system-operationally, financially, and in the clinic. Organized
medicine uses the term "free choice" fee-for-service (FFS),
specifically, individuals should have freedom to choose physicians
and hospitals anytime a la carte. They should not be allowed to
choose an insurance plan that limits their choice of provider to
those in an organized delivery system in exchange for what they
judge to be superior value.
- The professional culture of medicine has contributed to
fragmentation by revering physician autonomy and
infallibility.
- Education and training emphasize individual rather than team
performance; physicians tend to practice as individuals.
- Predictably, solo or small single-specialty group practices
have dominated the landscape, with unfortunate fallout.
- Wide variation in practices and costs and relatively low
accountability-a dearth of guidelines, utilization and quality
management, collaboration, and peer review.
- Traditional guild-like control, coupled with insulation from
accountability, has given physicians a de facto monopoly over major
decisions, including admitting patients to the hospital and
choosing interventions.
- As a result, physicians still control (directly or indirectly)
most of personal health spending,not withstanding extensive
insurer-imposed limitations.
- The accelerating advances and complexity of modern healthcare
have driven greater specialization and a "silo approach" to
healthcare consistent with the described isolationist history and
professional culture.
- Yet, in recent years, increasingly prevalent chronic, often
comorbid conditions (eg, diabetes, heart failure, depression)
require that patients receive care from multiple providers in
multiple settings.
- Although intensified specialization sought to generate greater
interdependence among clinicians and the need for cross-silo
coordination, greater specialization has exacerbated fragmentation
by increasing the number of narrowly trained specialists.
- Other observers assert that organized medicine has historically
used its considerable clout to preserve the status quo, resisting
efforts to systemically improve the quality and safety of medical
care and to form multispecialty group practices (MSGPs) or prepaid
group practices (PGPs).
- Throughout this evolution, FFS has been the primary payment
model.
- However, the FFS model contributes to fragmentation. Under FFS,
physicians earn more by providing more services, thereby
interposing an inherent disconnect between physicians' economic
self-interest and the interests of their patients.
- In short, traditional FFS rewards production volume rather than
value or outcomes.
- For patients, who simply want their doctors to help them stay
healthy or get better, the fragmented system resembles.