Private Practices With More High-Needs Patients Spend Less

Small practices with one or two physicians have lower overall spending than large practices.
Small practices with one or two physicians have lower overall spending than large practices.

HealthDay News -- According to a study published in Health Affairs, lower spending and utilization are seen for practices with a higher proportion of high-needs patients.

Dori Cross, from the University of Michigan in Ann Arbor, and colleagues examined two scale-related characteristics that could predict how well physician practices delivered care to a high-needs population: the proportion of high-needs patients in the practice and practice size. Data from four years on commercially insured, high-needs patients in Michigan primary care practices were assessed.

The researchers found that, compared with practices with smaller proportions of high-needs patients, those with a higher proportion of high-needs patients (>10% of the practice's panel) had lower spending and utilization. Small practices with one or two physicians had lower overall spending than large practices, but not less utilization.

Performance on a composite measure of process quality was slightly worse for practices with a substantial proportion of high-need patients and for small practices, compared with their associated reference group.

"Practices that treat a high proportion of high-needs patients might have structural advantages or have developed specialized approaches to serve this population," the authors write. "If so, this raises questions about how best to make use of this knowledge to foster high-value care for high-needs patients."

Reference

Cross DA, et al. "Outcomes For High-Needs Patients: Practices With A Higher Proportion Of These Patients Have An Edge". Health Affairs. 2017;36(3): 476-484. doi: 10.1377/hlthaff.2016.1309

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