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Medicaid Outcomes Program Reduces Asthma Emergency Services¹

One of the nation's first Medicaid disease management programs shows that improving the management of asthma can reduce emergency and urgent care services used by Medicaid patients and increase the appropriate use of asthma medications. The rate of emergency and urgent care service claims for patients of physicians who participated in a disease management program declined by an average of 41 percent after the program was implemented. This reduction is substantially greater than expected based on the experience of physicians who did not participate in the disease management program. The preliminary results from this program, the Virginia Health Outcomes Partnership (VHOP), have been published in the peer-reviewed journal Inquiry. The findings from VHOP are among the first to demonstrate that disease management benefits Medicaid patients, many of whom have chronic illnesses that respond to disease management interventions.

Approximately one third of physicians treating asthma in the pilot intervention community (eight central Virginia counties) volunteered to participate and were trained in disease management techniques and communication skills. Eligible physicians were those that participated in a primary care case management program (PCCM), a program that pays physicians on a fee-for-services basis but coordinates care through primary care physician case managers. In Virginia, approximately 31 percent of Medicaid patients receive care through PCCM and 16 percent of Virginia's asthma patients resided in the intervention community.

Researchers found an average 41 percent reduction from the previous year in the rate of asthma emergency and urgent care service claims for the third and fourth quarters following the introduction of the disease management pilot program. The rate for the third quarter alone was 46 percent lower. Although some reduction in emergency and urgent care rates was observed among physicians in a comparison community that was not a part of the pilot program, rates of emergency and urgent care among physicians in the pilot program nevertheless were as much as 31 percent lower than expected. If VHOP has been implemented statewide for all PCCM physicians, during the five post-intervention quarters, it could have saved as much as $1.2 million in spending for emergency and urgent care claims.

The impact of the disease management interventions was measured by calculating emergency and urgent care utilization, a proxy indicating how well the patient's asthma was controlled. Use of certain asthma medications that control asthma attacks - albuterol metered dose inhalers and nebulizers - increased by 25 percent or more during the pilot program when compared to medication used by patients whose physicians were not trained in the VHOP disease management interventions. The disease management intervention involved training physicians in the appropriate use of state-of-the-art asthma therapy and in proven communication methods for teaching patients effective asthma control. Physicians learned the clinical indications that should trigger referral of their patients to a specialist and how to educate their patients about the use of peak flow meters. They were also informed when their patients used emergency and urgent care services.

VHOP's goal was to improve treatment outcomes and control costs of care for Medicaid PCCM patients. This goal was achieved by improving patient care, resulting in better control of asthma, thereby avoiding unnecessary use of expensive services such as hospitalizations and emergency rooms. VHOP was developed by the Virginia Commonwealth University in cooperation with the Virginia Department of Medical Assistance, the state medical society, and pharmacy and nurses' associations, with funding from the National Pharmaceutical Council.

The program was expanded in the fall of 1997 beyond central Virginia and implemented statewide for asthma among physicians paid under PCCM. The program was also implemented statewide for congestive heart failure. Analyses from the expanded program on asthma and congestive heart failure are expected when data is available. Education materials have also been developed for physicians on the effective management of diabetes mellitus and schizophrenia. Following the favorable experience in Virginia, several states are implementing disease management programs in cooperation with disease management organizations or other state agencies. Disease management can improve care for Medicaid recipients while reducing costs, building partnerships with physicians, and enhancing the effectiveness of PCCM.

The study "The Virginia Health Outcomes Partnership: A Demonstration Project, 1997" is available by clicking here.

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¹ The following material is based, in whole or in part upon data accessed from the Virginia Department of Medical Assistance Services (DMAS). DMAS retains all rights of ownership to said data. No copies or reproductions, electronic or otherwise, in whole or in part, of the following materials may be made without the express written permission of DMAS.