e-Texas e-Texassmaller smarter faster governmentDecember, 2000
Carole Keeton Rylander
Texas Comptroller of Public Accounts

Recommendations of the Texas Comptroller


Chapter 8: Health and Human Services

Improve Asthma Treatment

Programs


Summary

Disease state management (DSM) applies proven clinical practices, including patient education, technical assistance, and risk management, to ensure the appropriate and cost-effective use of medication and specialized treatments in high-cost, chronic illnesses. Texas should create a DSM pilot program for pediatric asthma, the most common chronic illness in Texas children.


Background

Asthma affects 15 million people in the United States and causes 470,000 hospitalizations annually. Asthma patients can generate charges of up to $46,000 per hospital visit and $100,000 or more in annual asthma-related expenditures per patient.[1]

According to the Asthma and Allergy Foundation of America, the cost of asthma in the United States was estimated at $11.3 billion in 1998, with direct costs accounting for $7.5 billion and indirect costs totaling another $3.8 billion. Hospitalizations were the most expensive component of these costs.[2] A September 2000 study by the foundation estimated Texas’ direct medical expenditures and indirect costs for asthma at $763 million in 1994 (the most current data available). Direct medical expenditures were estimated at $434.9 million, while indirect costs (from lost productivity and lost school days) accounted for $328.1 million.[3]

According to the American Lung Association, about 1.1 million Texans have asthma, including 674,000 adults and more than 401,000 children under the age of 15.[4] Asthma is now the most common chronic illness in children both in Texas and in the nation.[5] Asthma is the leading cause of school absenteeism for children under 16 years of age; children with asthma miss twice as many school days as those without asthma.[6] In fiscal 1999, Texas’ Medicaid program provided treatment for more than 123,000 asthma patients at a total cost of $41.6 million.[7]

When left untreated or treated incorrectly, asthma can lead to serious, life-threatening, and costly conditions. Chronic obstructive pulmonary disease and related conditions, including asthma, emphysema, and chronic bronchitis, claimed the lives of 6,597 Texans in 1998, making them the state’s fifth most common cause of death.[8]


Disease State Management

In 1997, the Journal of Pediatric Nursing reported that one-fourth of all children and a third of all adults have chronic diseases that could benefit from disease state management (DSM).[9] DSM is designed to improve the care given to those with expensive, lifetime chronic diseases such as asthma, while reducing the costs of care. In addition to asthma, DSM has been applied to diabetes, smoking cessation, cardiovascular disease, congestive heart failure, oncology, prostate and breast cancer, Alzheimer’s disease, HIV, neonatal care, cholesterol-lowering therapy, and weight-loss training.

DSM applies proven clinical practices, including patient education, technical assistance, and risk management, to ensure the appropriate use of medication and specialized treatments in high-cost cases. It can improve health outcomes for asthmatics by developing better communication and integration of services among physicians and other health care providers, and by promoting useful clinical guidelines for treatment. DSM can include wellness programs, information dissemination for physicians, clinics staffed and managed by specialized nurses with advanced training, and measures designed to ensure the appropriate use of medication and specialized treatments. Some states and many private companies have instituted DSM programs to manage high-cost cases and diseases.[10]

DSM protocols for managing asthma can produce quantifiable savings and measurable outcomes. At least two states, Florida and Virginia, have implemented DSM for asthma and realized savings as a result.[11]


Information Technology (IT) in DSM

A successful DSM program integrates health care delivery systems and distributes clinical and administrative information quickly and efficiently. IT systems provide valuable assistance to DSM programs by providing data to support decisions based on the most current practice guidelines, and facilitating the analysis of practice patterns and outcomes.[12] Internet access can ease communication and circulate educational materials among doctors, other health care providers, and patients.


Texas DSM Programs

Texas currently has one Medicaid pilot DSM project for diabetics. The 1997 Legislature, through the Medicaid Diabetes Pilot Project, required private insurers and managed care organizations to reimburse health care practitioners for delivering diabetes self-management training programs. This legislation also established the basis for the adoption of standard-of-care guidelines for diabetics. (Self-management training programs and standards of care are integral parts of DSM programs.)[13]

The University of Texas M.D. Anderson Cancer Center has instituted a DSM program to lower costs and provide better outcomes for cancer patients. The center’s Cancer Manager program, which was launched in 1996, provides its patients with a customized continuum of care covering prevention, diagnosis, treatment, and follow-up services. M.D. Anderson has enrolled several provider companies and more than 200,000 patients in the program.[14]

At the request of the Texas Pharmacy Association, the Texas Tech School of Pharmacy has developed a proposal for a Medicaid DSM demonstration project for diabetes. Community pharmacists would collaborate with physicians to provide care for “Type 2” diabetics—a condition commonly referred to as adult-onset diabetes. At this writing, this proposal is being reviewed by a six-member advisory panel of pharmacists and physicians assembled by the Texas Health and Human Services Commission.[15]

The Texas Medication Algorithm Project (TMAP) is a collaborative program begun in 1996 to develop, implement, and evaluate guidelines for the medication used to treat major psychiatric adult disorders. The project, led by the Texas Department of Mental Health and Mental Retardation, has developed medication treatment guidelines for schizophrenia, major depressive disorder, and bipolar disorder; these are due for medical journal publication in November 2000.[16]


DSM in Other States

Virginia has implemented statewide DSM programs, collectively called the Virginia Health Outcomes Partnership, for asthma, chronic obstructive pulmonary disease, diabetes, depression, hypertension/congestive heart failure, and gastroesophogial reflux/peptic ulcer disease. The first disease chosen for the program was asthma, due to the potential for cost savings and improved patient outcomes. The pilot Medicaid DSM asthma program began in 1994 and was implemented throughout Virginia in September 1997.

As part of the asthma DSM program, Virginia mails clinical summaries about treatments, drug recommendations, and lifestyle changes to pharmacists and physicians on a quarterly basis. The state also provides model patient profiles to health care providers to help them target patients at risk from asthma. The partnership has resulted in a 25 percent drop in emergency room visits and urgent care services among the asthma patients of physicians participating in the program.[17]

Florida has DSM programs for Medicaid clients with asthma, AIDS, and hemophilia. Florida also recently created a congestive heart failure and end-stage renal disease program for Medicaid, with plans to create Medicaid DSM programs for cancer, sickle cell anemia, and hypertension.

Florida will measure DSM outcomes through emergency room visits, hospital inpatient visits, hospital lengths of stay, rehospitalizations, improved patient knowledge and satisfaction, improved care, reduced costs, and patient and provider education and interaction.[18] The state automatically enrolls Medicaid recipients with relevant medical conditions in its DSM programs, with the option to drop out at any time, and encourages doctors to refer patients to the programs.[19]


Recommendation

State law should be amended to require the Health and Human Services Commission (HHSC) to create a Medicaid Disease State Management (DSM) pilot program for pediatric asthma.

The Texas Department of Health (TDH) should determine the best location for the pilot program, preferably a county with a high incidence and a high hospital emergency room rate for pediatric asthma, and administer the program under the direction of HHSC. HHSC should apply for necessary Medicaid waivers. TDH should be required to report on the cost-effectiveness of the program to the Legislature by December 1, 2004. This report should identify other areas in which DSM-based treatment could be cost-effective.


Fiscal Impact

The fiscal impact of this recommendation cannot be determined at this time because the location and size of the DSM Medicaid pilot program are not yet known.

Startup costs should be minimal and should be offset by savings realized by decreasing the deleterious effects of asthma, reducing emergency room visits and hospitalizations.


[1] Paul M. Greenberger, M.D.,“Preventing the Emergence of the $100,000 Asthmatic,” March 10, 1998 (http://www.medscape.com/medscape/RespiratoryCare/journal/1998/v02.n01/mrc3050.gree/mrc3050.gree.html) (Internet document.)

[2 ] Asthma and Allergy Foundation of America, “Asthma and Allergy Information” (http://www.aafa.org/asthmaandallergyinformation/aboutasthmaandallergies/factsandfigures/asthma_facts.cfm). (Internet document.)

[3 ] Asthma and Allergy Foundation of America, “Asthma and Allergy Information” (http://www.aafa.org/asthmaandallergyinformation/aboutasthmaandallergies/factsandfigures/asthma_facts.cfm). (Internet document.)

[4 ] Interview with Robin Anderson, director of the Texas chapter of the American Lung Association, Austin, Texas, March 1, 2000.

[5 ] Asthma and Allergy Foundation of America, “Asthma and Allergy Information.”

[6 ] Maggie Kownaski, “The Public Toll of Asthma,” Disease Prevention (April 24, 2000), p. 1.

[7] Texas Department of Health, “Compass 21 System,” Austin, Texas, May 25, 2000. (Spreadsheet.)

[8] Texas Department of Health, Texas Vital Statistics 1998. (http://www.tdh.texas.gov/bvs/stats98/ANNR_HTM/98t16.HTM) (Internet document.)

[9] Christine Golazeski Leyden, “Preventing Insurance Denials: Disease Management,” Journal of Pediatric Nursing (September 19, 1997), p. 28.

[10] Lindsay R. Resnick, “Disease Management Changing the Dynamics,” National Underwriter (April 28, 1997), p. 10.

[11] Interview with Dr. Louis F. Rossiter, professor of Health Economics, Institute for Outcomes Research, Medical College of Virginia, Virginia Commonwealth University, Richmond, Virginia, February 29, 2000; and Florida Agency for Health Care Administration, “Florida Medicaid’s Disease Management Initiative,” by Ruben J. King-Shaw, Jr., Tallahassee, Florida, February 29, 2000.

[12 ] Gray Ellrodt et al, “Evidence-Based Disease Management,” Journal of the American Medical Association (November 26, 1997), p. 1,687.

[13 ] The National Pharmaceutical Council, Disease Management, Balancing Cost and Quality (Reston, Virginia, October 1999), pp. 4, 7.

[14 ] The University of Texas M.D. Anderson Cancer Center, “Cancer Manager—Opening the Door to Quality Cancer Care,” Conquest (Winter 1998), p. 23. (Newsletter.)

[15 ] Texas Medical Association, “Disease Management, A Summary of Research,” by the Council on Scientific Affairs of the Texas Medical Association, prepared for the TMA forum on DSM, February 29, 2000, p. 3.

[16 ] Interview with Dr. Steven P. Shon, director of the Texas Medication Algorithm Project, Texas Department of Mental Health and Mental Retardation, Austin, Texas, October 19, 2000.

[17 ] E-mail from Dr. Charles A. Shasky, project manager, Virginia Health Outcomes Partnership, the Williamson Institute for Health Studies, Medical College of Virginia, Virginia Commonwealth University, Richmond, Virginia, May 15, 2000.

[18 ] State of Florida, Agency for Health Care Administration, “Florida Medicaid’s Disease Management Initiative,” February 29, 2000, p. 6.

[19 ] Interview with Dr. Louis F. Rossiter, professor of Health Economics, Institute for Outcomes Research, Medical College of Virginia, Virginia Commonwealth University, Richmond, Virginia, February 29, 2000; and Florida Agency for Health Care Administration, “Florida Medicaid’s Disease Management Initiative,” by Ruben J. King-Shaw, Jr., Tallahassee, Florida, February 29, 2000.



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