Consultant: Hold docs accountable for resource usage

by James M. Berklan

Plan: Set acceptable consumption levels and then compare

Michael Rudomin has watched hospitals' bottom lines generally go from bad to worse over the last two years.

That's why he thinks it is finally time to put physicians' work habits under the microscope. Rudomin is calling for "economic credentialing" of doctors. The veteran material management consultant thinks doctors' resource consumption levels should be monitored and compared against other doctors' consumption and their outcomes records. "The run-of-the-mill person might still consider this a little extreme and think I'm just crazy," admitted Rudomin, vice president of Bolton, MA-based consulting firm AdvanTech Inc. "Nonetheless, I think it's even more applicable than two years ago when I first brought it out. Things are getting more dire; finances are getting tighter and tighter."

Part of bigger picture

Rudomin believes material managers first need to look beyond supply costs as they exist in a hospital. He calls for a broader look at supply management throughout an integrated delivery network. Rather than just looking at supply costs at a given hospital, managers should examine the use patterns of individual departments such as radiology, pharmacy and the operating room.

A second thrust would be judging whether certain clinical outcomes merit the amount of resources consumed. Identifying physicians who routinely use a lot of resources with routinely weaker results is the goal, Rudomin said.

"It's reasonable to suggest that, after a review of enough data, we could say a typical patient with diagnosis 'X,' of a certain age and risk, should range from 'X' to 'Y' on the scale of cost and consumption of supplies," Rudomin said. "So we hold physicians to that level in virtually all cases. If they don't make it, at least we have enough information to find where the offenders are and see what's going on. They don't have to do it the cheapest. But cost effectiveness must be considered.

"There is no way we can allow people responsible for the consumption of resources not to be held accountable for consumption levels," he emphasized.

Influencing decisions

Material managers can only influence, not unilaterally force, change in this area, Rudomin acknowledged. But few, if any, material departments are even collecting consumption data, yet alone approaching physicians with it, he complained.

There are several ways to gather the data, experts agree. Firms such as HCIA-Sachs, Evanston, IL, analyze vast amounts of hospital data. It can show whether one doctor's costs are much different from others' to serve as a starting point for further analysis, said John Froelich, a company vice president and analyst.

Another good source of data is automated vending machines from companies such as Pyxis and Omnicell, experts agreed. Facilities can index resource usage by procedure, patient or physician. Studying doctor habits, however, has not been pushed as a selling point, one Pyxis manager noted.

"I think it's a viable but sticky topic," said Rob Sobie, a senior market manager with the San Diego-based company. "The percentage doing it today is relatively small, but it will continue to grow. I see the economic credentialing idea growing more in the OR. From a surgeon's standpoint, they'll raise success rates, turnaround times and all those factors" to counter calls for standardized comparisons.

High hurdles

One industry veteran thinks consumption data often may be in the hands of hospital executives without material managers even knowing about it.

"Some administrators would say 'share it with others,' and some would say 'it's executive information,' said Ray Holm, vice president of marketing for HealthShare, a subsidiary of the Texas Hospital Association.

James F. Panto, a regional sales director for clinical care management company CareScience, San Francisco, disagrees with Rudomin's plan.

"We certainly do not espouse physician credentialing, but rather something that will get physician buy-in," Panto said. "If you look at fixed, variable and overhead expenses, frankly physicians have a difficult time seeing how they can affect those things."

But Rudomin, knowing he has an uphill battle, will nonetheless continue to push his idea, hoping others will warm to it.

"We have an environment where we have fixed resources," he said. "If we're losing money and don't have good outcomes, somebody has to do something."

HPN

January


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