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Thursday, March 14, 2019

Post-Acute Care At Home Tied To More Readmits Than Skilled Nursing Facilities

Target Audience and Goal Statement: Health policy specialists, hospitalists, geriatricians, family physicians, internists
The goal was to understand the association of patient outcomes and Medicare costs of discharge to home with home health care versus discharge to a skilled nursing facility.
Question Addressed:
  • How are patient outcomes and Medicare spending affected by the decision to discharge patients to home with home health care versus to a skilled nursing facility for post-acute care?
Synopsis and Perspective:
Post-acute care transitions a patient who no longer requires acute care in a hospital to another skilled setting or to home. Post-acute care use and costs have risen over the past eighteen years: more than 40% of Medicare beneficiaries receive such care after a hospital discharge. Medicare spent more than $60 billion on post-acute care in 2015 and this number is likely to increase with an aging population.
Most patients (90%) are discharged to a skilled nursing facility or to home with care from a home health agency. However, medical care provided at home has lagged behind hospital referrals of patients to skilled nursing facilities. Notably, the average cost of a skilled nursing facility stay is $11,357 versus just $2,720 for a home health care episode. Little is known about the impact the choice of a post-discharge setting has on patient outcomes and costs.
Because previous studies provided inconsistent results and there is currently a proliferation in the use of post-acute care, Rachel Werner, MD, PhD, of the University of Pennsylvania in Philadelphia, and colleagues, investigated differences in rates of 30-day readmission, 30-day mortality, functional outcomes, and Medicare payment in a very large national sample of Medicare beneficiaries discharged to home with home health care versus to a skilled nursing facility.
From 2010 to 2016, more than 17 million hospitalized patients (62.2% women and 37.8% men; mean age = 80.5 years) were discharged to home with home health care (38.8%) or to a skilled nursing facility (61.2%).
Patients recuperating at home with home health care had a similar mean number of 3.2 comorbidities compared to patients referred to a skilled nursing facility. Discharge to home health care occurred more frequently for total knee or hip replacements, congestive heart failure, and pneumonia. Patients were less frequently discharged to this setting following hospitalizations for sepsis and urinary tract infections.
Overall, patients discharged to home with home health care were 5.6% more likely to be readmitted at 30 days compared with discharge to a skilled nursing facility.
No significant differences were observed in 30-day mortality rates or improved functional status. Medicare reimbursement for a discharge to home was $5,384 less than to a skilled nursing facility. Total Medicare payment within the first 60 days after admission was also reduced by $4,514.
Study limitations included the possibility of residual confounding (although lessened by the instrumental variable strategy adopted by the authors). In addition, the results apply only to Medicare beneficiaries, particularly marginal patients. Werner and colleagues defined these patients as those discharged to home with home health care solely because of their closer proximity to a home health agency than to a skilled nursing facility, conditional on health characteristics.
These marginal patients may be interpreted as those whose need for home health versus a skilled nursing facility was borderline — i.e., either setting would have been considered reasonable. Within the context of the study, the marginal patient was less likely than the average patient in the full sample to be older than 80 years (47.2% vs 54.2%), less likely to be white (78.3% vs 86.3%), more likely to be dually enrolled in Medicare and Medicaid (22.2% vs 17.7%), and less likely to be enrolled in Medicare Advantage (21.8% vs 24.6%) or to have six or more comorbidities (16.6% vs 20.6%).
The authors noted that the marginal patient was most likely to be affected by current policies that might encourage substitution among settings.
Source Reference: JAMA Internal Medicine, Mar. 11, 2019; DOI:10.1001/jamainternmed.2018.7998
Study Highlights: Explanation of Findings
Among Medicare beneficiaries who are eligible for either home health care or a skilled nursing facility after hospital discharge, discharge to home with home health care was associated with a 5.6% higher rate of readmission, but lower total payments, the team wrote.
Readmissions is a critical metric for hospitals because of its value-for-care and financial dimensions. Medicare has been penalizing hospitals for readmissions for targeted conditionssuch as pneumonia. Therefore, the higher readmission rate for patients sent home was a noteworthy finding.
“There is a tradeoff between how much we spend on health care and what we get out of it. While patients at SNFs [skilled nursing facilities] were less likely to be readmitted to the hospital, caring for patients in SNFs is expensive. There are likely alternative approaches such as providing more intensive treatment at home, that could balance these tradeoffs,” Werner told MedPage Today.
Prior investigations yielded inconsistent results and have been small and assessed few conditions, and the majority inadequately controlled for the considerable differences in patient characteristics across settings, the study authors noted. Werner and colleagues then commented on the fact that this was the first study to provide large-scale and recent estimates of the differences in patient outcomes and Medicare payments between patients discharged to home with home health care compared with those discharged to a skilled nursing facility, and that addresses confounding by indication.
“Combine the ease and standardization of transferring a patient to another medical facility with the administrative complexity and effort required to coordinate simultaneous delivery of medications, equipment, and multiple staff to a Medicare beneficiary’s home and it becomes clear why there is a structural preference for discharge to an SNF,” wrote Vincent Mor, PhD, of Brown University in Providence, Rhode Island, in an accompanying editorial.
The editorialist further noted that “what separates clinically similar patients going home from those going to a skilled nursing facility probably comes down to the intangibles: the unmeasured factors of family support, living arrangements, the number of stairs in the home, and patients’ insistence on independence.”
Mor raised two possibilities to account for differences between skilled nursing facilities and home health care in the adjusted rates of rehospitalization (that were probably due to discretionary transfers). It was possible that inadequate quality monitoring would be more amenable to skilled home health input. Alternatively, it may be that more rehospitalizations due to inadequate home health care services is the price that must be paid to prevent needless institutional care and lower Medicare post-acute expenditures by $4,500. Addressing this question was important, according to the editorialist, as a small improvement in clinician quality, better training to improve family engagement, or better targeting of who can use home health care might eliminate excess rehospitalizations without reducing the cost savings.
“These results warrant further investigation of these post-acute care settings and others given the common use and high costs associated with post-acute care,” Werner and colleagues concluded.
Reviewed by Henry A. Solomon, MD, FACP, FACC Clinical Associate Professor, Weill Cornell Medical College and Heidi Wynn Maloni, PhD, ANP-BC, CNRN, MSCN, Nurse Planner

British American Tobacco’s Canadian Unit Files for Bankruptcy in U.S.

British American Tobacco PLC put one of Canada’s top cigarette distributors into bankruptcy protection in the U.S. after that subsidiary, sued by Quebec smokers in 1998 for hiding health risks, was ordered to pay 9.2 billion Canadian dollars (US$6.9 billion).
Officials who put Imperial Tobacco Canada Ltd. into chapter 15 protection in U.S. Bankruptcy Court in New York said the move is meant stop creditors from taking the tobacco held at the company’s Ohio and Montana warehouses while it negotiates a payment plan. Tobacco for its cigarettes, grown in Mexico, is stored in those warehouses as part of its importing process.
“If there were any hiccups in that process, it would cripple the enterprise,” said Imperial Tobacco lawyer Jennifer Feldsher, at a hearing held Thursday in New York.
Company officials added in court-filed documents that if legally operating distributors such as Imperial Tobacco shut down, operators that sell untaxed tobacco illegally “will expand to fill the void in the marketplace.” More Canadians are buying illegal tobacco, they said.
Judge Shelley Chapman later agreed to temporarily block seizures.
British American Tobacco, one of the world’s largest tobacco companies, indirectly owns Imperial Tobacco and several associated companies, which sell to roughly half of Canada’s five million tobacco buyers.
Ontario-based Imperial Tobacco, through a subsidiary, sells its 15 brands of cigarettes and a line of vaping products through a network of roughly 180 wholesalers and 27,000 retailers. The two companies employ about 570 people.
Last year, Imperial Tobacco recorded profit before taxes and interest of C$792 million, according to court papers.
The U.S. bankruptcy case, initiated several days after Imperial Tobacco filed for Canada’s equivalent of chapter 11 protection, has the potential to delay payments to Quebec smokers and their families behind a class-action lawsuit.
Canada’s tobacco industry has fought off more than dozen major lawsuits filed in recent decades from smokers and government authorities who are trying recover health-care costs and other damages.
Imperial Tobacco said litigation claims filed against it in Canadian courts call for damages of more than C$600 billion. That amount dwarfs the company’s value, an estimated C$5.5 billion as of Dec. 31.
On March 1, the Quebec Court of Appeals affirmed a May 2015 ruling that found Imperial Tobacco and its two main competitors are liable to pay up to $13.6 billion in damages to Quebec smokers and their families involved with the 1998 lawsuit.
Imperial Tobacco has denied wrongdoing in that case. The decision could be appealed to the Supreme Court of Canada, but tobacco companies haven’t indicated they will pursue an appeal.

Deciphera development of ripretinib ‘progressing nicely’, says Piper Jaffray

Piper Jaffray analyst Christopher Raymond kept his Overweight rating and $50 price target on Deciphera after its in-line Q4 results, saying the company’s development of ripretinib is progressing nicely with ongoing phase 3 enrollment in INTRIGUE study and results for INVICTUS study expected later this year. The analyst remains positive on the shares given the company’s “catalyst-rich” second half of the year on tap.
https://thefly.com/landingPageNews.php?id=2879635

Allogene Therapeutics initiated with an Outperform at Raymond James

Allogene Therapeutics initiated with an Outperform at Raymond James Raymond James analyst Dane initiated Allogene Therapeutics with an Outperform rating and a price target of $40. The analyst says the analysis of the company’s CAR T cell therapies in UCART19 CALM and PALL study suggests a “competitive profile vs. autologous CD19+ CAR T cell products and supports a positive outlook for ALLO-501”. Leone adds that while there are “questions surrounding the correlation of persistence and durable outcomes from the studies”, he believes that the “potential to re-dose ALLO-501 balances this risk”.

Xencor initiated with an Outperform at Raymond James

Raymond James analyst Dane Leone initiated Xencor with an Outperform rating and a price target of $40, citing the company’s “multiple programs and development partnerships across a range of therapeutic indications.” The analyst contends that the next 12 months will be a “clinical inflection point for the wholly owned bi-specific antibody programs targeting oncology”, adding that he is “optimistic that the current partial hold on the Xmab14045 program could be lifted near-term”. Leone further notes that his sales model does not account for obexelimab until a partnership has been established, but he is “optimistic for a partnership to occur within the next 12 months”.

Gritstone Oncology initiated at Raymond James

Gritstone Oncology initiated with an Outperform at Raymond James. Raymond James analyst Dane Leone initiated Gritstone Oncology with an Outperform rating and a price target of $20. The analyst has three key reasons for recommending the stock: First, GRANITE-001 will be a proof of concept regarding the anti-tumor effect of highly stimulated CD8+ T cells. Second, “development of the MHC Class II EDGE model balances the risks with the current reliance of CD8+ T cells within the GRANITE-001 and SLATE-001 programs.” Third, Leone believes the technical approach to neoantigen vaccine design that Gritstone is pursuing is “likely to be more effective than competitor efforts employing peptide vaccination approaches.”
https://thefly.com/landingPageNews.php?id=2879611

Blue Cross Merger Takes Five States Off The Board For Anthem

The “strategic affiliation” of two health insurers that operate Blue Cross and Blue Shield plans in five states makes it more difficult for Anthem to expand using the valuable Blues brand in new markets.
Cambia Health Solutions and Blue Cross and Blue Shield of North Carolina (Blue Cross NC) said this week the are forming a “strategic affiliation” that merges operations and management of two companies operating Blues plans on the East and West coasts.
That makes it less likely the larger Cambia wants to sell to the publicly-traded, investor-owned Anthem, which is the nation’s second largest health insurer and operates Blues plans in 14 states. Anthem had no comment about the Cambia-Blue Cross NC deal, but Anthem executives said earlier this month they are focused on growing and adding on to the business that they have.
It’s tough for Anthem to buy other Blues plans for a variety of reasons, making the health insurer “landlocked” as its rivals have been known to say when it comes to certain marketing.
Rules of the Blue Cross Blue Shield Association prevent Anthem from using the well-recognized Blue Cross and Blue Shield brand in regions where Anthem doesn’t have the Blue Cross license or own a Blues plan. The Blue Cross Blue Shield Association (BCBSA) is a trade group and lobby for 36 “locally operated” Blue Cross and Blue Shield companies, which are able to market their Blue brand via licenses with the association.
In states where Anthem doesn’t have the Blue Cross license, it operates under the Amerigroup brand in states where it’s predominantly known for its Medicare health benefits and Medicaid coverage for poor Americans. Thus, Anthem cannot market certain products like UnitedHealth Group, Aetna, Cigna and Humana given the Blue Cross Blue Shield Association rules.
But Anthem’s strategy to build their existing businesses avoids complex legal and regulatory rules should the insurer attempt to buy a mutual or nonprofit plan. When that has happened in the past, it has draw intense scrutiny from attorneys general, consumer groups and lawmakers concerned about who gets sale proceeds if a nonprofit or mutual is taken over by an investor-owned company that answers to shareholders. Such deals take months and, in some cases, years to pull off and sometimes are derailed by regulators or local politics.
Even the Cambia- Blue Cross NC deal isn’t a full asset merger so the regulatory hurdles it faces aren’t expected to be as intense. Cambia, which owns Blue Cross plans in Idaho, Oregon, Washington and Utah, and Blue Cross NC call their ownership structures “taxpaying not-for-profit.” While other Blue Cross plans and their parent companies have ownership structures that are considered tax-exempt nonprofits or mutual plans owned by policyholders.
“The strategic affiliation . . .  will maintain the separate health plans in five states, all locally led and regulated,” Cambia and Blue Cross NC said. “Through the transition to the strategic affiliation, members, employers and providers will continue to receive the same high-quality service they have come to expect. The strategic affiliation is subject to regulatory approval in North Carolina, Oregon, Washington, Idaho, and Utah.”