Health Care Quality Management Analysis

Health Care Quality Management as it Applies to Managed Care


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In the current age of improved answerability for quality of care, every healthcare expert should be conversant in the theory and paraphernalia of quality management) Quality Management-QM is an all-embracing attitude that pervades the management infrastructure, rules and customs of an establishment. It characteristically comprises of five fundamental doctrines — undivided attention on the customer/supplier relationships; a stress on functional and care systems and the avoidance of mistakes; the use of decision making by the help of data; the willing participation of leaders and empowerment of the workforce; and an importance on persistently enhancing achievement in every spheres. (Carefoote, 1998) Managed care systems have come to be an important type of health care supply and funding in the United States.


Earlier, managed care comprised of health maintenance organization — HMOs. The meaning of a managed care system thereafter broadened to contain nearly any type of healthcare insurance that restricts the person insuring the preference of health care providers and the person’s capability to refer him to expert doctors. (Morgan, 1996) Managed care builds a business atmosphere wherein rivalry needs minute consideration to quality. Even though the health care business might profit from answers taken from other industries, managed care accords exclusive attention to non-financial, indefinable reasons. Sufficient cost-utility analysis should account for such reasons instead of depending on fake numerical values. (Reinke, 1995) The imperative for managed care delivery systems has been functioning by the wishes to restrict the expenses of health care. Companies and procurers of public sectors have shifted their attention to health plans to check spiraling expenses. (Rivera; Lee, 1999)


Managed Care put a significant effect on every feature of health care. (McLaughlin; Kaluzny, 1998) Of late the number of Americans getting health care by some type of managed care establishments has gone up in a big way. (Quality Measurement and Improvement in Managed Care) In excess of 50% of every U.S. workers and their insured family members have joined such programs and Medicaid and Medicare are speedily going ahead in that route. The first effect of managed care has been the falling of costs in the range of 30 to 60% in important markets, coupled with the opening of particular checks and measures like advance endorsement for optional methods and restrictions on duration of admission in the hospitals, privatization and merger of healthcare units with an attention on limited functioning results, wrath of doctors and doubtfulness; patients anxiety regarding quality; and bosses content with the sluggish progression of best incentives meant for their staff. (McLaughlin; Kaluzny, 1998)


The forthcoming confrontation to managed care is its capability to shift from merely the management of availability and the lowering of premiums to the substantive management of care with the complete identification of the intricacies of the care process. This changeover needs a reassessment of persistent quality improvement within the background of managed care. (McLaughlin; Kaluzny, 1998) Complete quality management is thus an objective which needs most important corporate dedication to execute and keep going. The ideal outcomes in the case of a quality management program will be attained while every element is bonded together in an all-inclusive program. To accomplish that, a substantial expense in workforce and instruments is needed. Since the advantages of maintaining a program comes to be extensively understood and welcomed, increasingly managed care insurers and providers will take up these or identical standards. (Dunn, 1990)


The issue is “How are you aware that patients are receiving superior-quality and enough care?” will not be able to be given a solution by the insurers who do not have a similar type of program. (Dunn, 1990) Since managed care permeates our health care atmosphere, efforts must be taken to make sure the quality of care is provided. An effective quality program possess the features as follows: Attaining increased quality is the duty of everybody and it is pertinent that the medical and administrative leadership take up the important job of making sure that quality program is successful in attaining its goals. Responsibility for quality requires at the topmost levels in the organization. Whereas the main answerability is held by the Board of Directors, it is usually passed on to the medical and administrative leaders for the routine functions. Every managed care departments has a crossing point with the quality aspect to render quality an endeavor spanning throughout the company. Planning is crucial to guaranteeing that important goals are achieved and also every legal aspect and affiliation obligations have been complied with. (Carefoote, 1998)


The extent of quality program takes into account the medical care as well as the service. Medical care points out to the direct delivery of care by the doctors and the institutional providers like hospitals, long-term care services, home health units and so forth. Service quality means the existence, convenience and adequacy of services to the members. A complete program has medical as well as service quality securitization, assessment and betterment. Important to the achievement of the program is the capability to pull out and investigate the data, which relate to facilities and quality data. To make sure reliable, consistent customs in the company, the organization requires a procedure to interact specific program rules and methods. Ultimately, in the absence of sufficient resources, the organization can be deficient of attaining its goals. During the procedure of planning, the organization can be deficient of making sure resources are enough to fulfill the requirements of the program. (Carefoote, 1998)


Total Quality Management -TQM as well as managed care thus admits the vibrant characteristics of medical procedures and the potential and accountability of the two institutions and medicos to enhance their processes. The two are steady with endeavors to find out and carry out the ideal methods. (McLaughlin; Kaluzny, 1998) Berwick and associates in their pioneering achievement took the results of the National Demonstration Project on Quality Improvement in Healthcare and reasoned that TQM would effectively be employed in health care institutions. Margulies and Adams gave an example of a lot of contributors who have been fruitful as regards organizational betterment, interferences in an operating room, nursing facilities, division, and city hospital-clinical point and gave a positive investigation regarding the probabilities of achievement. His evaluation of the writings backs the encouraging outcomes of team building, management development, action research, clarification of functions, and organizational alterations in a broad range of health organizations. (Friedman; White, 1999)


But the basic dissimilarities must not be shrouded. Constant development must change its hub from preventing needless deviations to ease quick organizational training and institutionalizing mass customization into the process of health services. We all know that the ideal care takes into account disparities in each of us at both physical and emotional levels. In our capacity in attaining mass customization, lies the long-standing prospect of health care and not with the mass production or continuous improvement. It is hard to accomplish, though all health care are trying for it and mass customization is the endpoint. There are complications in the health care atmosphere that must be tackled. There is a truth that the technique of health care is a difficult, multistage process described as having at least three stages like analysis, cure and aftercare; At each phase for any given disease entity the fraction of art to science in the current state of-the-art may vary broadly; diverse forms of techniques react differently to dissimilar ratios of art to science; regrettably, we have not yet been able to efficiently modify the delivery method and its related methods of payment and organization to the state of knowledge for an exact disease at a particular stage of care delivery. (McLaughlin; Kaluzny, 1998)


These four features account for many of the troubles in successfully using any one-delivery method with its organization and payment systems to the total delivery of health care. Each instance offers a challenge to the art and science of medicine in analysis, in cure and in aftercare. These phases may be quite different in the degree to which the selected method has a powerful scientific foundation. The diagnosis may be quite instinctive, while the cure, if properly identified, may be quite simple, as is the choice of aftercare. (McLaughlin; Kaluzny, 1998) The main part of delivering patient care in a managed care atmosphere is the proficient organization of patient care delivery. Competent organization ropes particular patient effects that are appreciated within economically accountable and resourceful time frames. When both the order and the quantity of capital used are observed, constructive results are reached by proper use of resources. (Morgan, 1996)


Hospitals, in reaction to the requirement to advance competence, have applied domestic hard works to manage costs. The techniques that are used are the implementation of utilization review -UR processes, staff restructuring, personnel reductions, and case management. UR is made use of to evaluate the power of care the patient is getting. In particular, UR seeks to make sure that the care is both essential and proper. The objective of unit staff reshuffle is to alter the mix of caregiver skill levels and reduce the whole cost of offering a unit of service. Lessening the number of staff in an organization concentrates on health care professionals and administrative staff and plans to advance efficiency while diminishing pay expenses. Case management strictly watches each individual patient’s improvement with the aim of making sure effective use of resources in the limited period of time. (Morgan, 1996)


Thus from what we have understood, managed care is often viewed mainly as a cost cutting scheme tussle to establish to the people at large that managing quality is as essential as managing costs. (Carefoote, 1998) Due to this the assessing and guarantee of the quality of care in managed care settings has turned out to be a main concern. Government agencies, nonprofit organizations, and consumer groups have all started to concentrate on the two main features of this matter, measurement and improvement. The measurement efforts are developing tools, gathering data, determining pointers of health care quality, examining the data and reporting it. After this is done, measures must be taken to assure that the quality of care is up to par, and to make developments, wherever needed, by education plans. Information on the quality of care offered under managed care plans is helpful to customers and owners when trying to select the best plan to buy, and also to plan to find out where developments have to be made. (Quality Measurement and Improvement in Managed Care)


In a newly published article, Jan Greene raised doubt on whether managed care has lost its spirit or not. In that article Greene remarks that managed care was once occupied by non-profit organizations with a communal undertaking. Currently managed care is mainly governed by profit-oriented organizations staring at Wall Street for investment. A lot of persons dread that the objective of managing care is being substituted by the objective of managing expenses. Likewise distressing is that profit-oriented managed care organizations have a lawful and fiduciary duty to put stockholders and not payers or consumers first. Additionally, new inclination that move the financial threat to suppliers through capitation or other systems that compensate suppliers for competence concurrently offer suppliers a financial incentive to hold back required care.


These are just some of the reasons why managed care organizations have encountered a sequence of assaults with respect to the quality of care that they offer. With these quality awareness issues as a background, controllers, creditors, employers and consumers alike are introducing increasing responsibility on managed care organizations to noticeably and publicly tackle quality. (Carefoote, 1998) Are managed care organizations really appreciating the exclusive needs of the susceptible populations that depend on Medicaid? How can quality be guaranteed, particularly when consumer option is limited? These are some of the many issues states and the federal government has wrestled with particularly as the movement to managed care expands beyond mothers and children and includes Medicaid recipients who are older and have disabilities.


Nowadays, above 32% of all Medicaid beneficiaries are registered in managed care, an amazing growth from the 9.5% registered in 1991 quality Management


. All but six states have produced managed care programs, with 32 states reporting programs based on risks. Fast growth in registration of Medicaid beneficiaries into a range of managed care preparations brings up a further anxiety about quality of care. Eventually, the real suppliers of care can best encourage good quality health care. Encouraged by the achievement they observe in managed care for women and children, states are bending to managed care delivery systems for older persons and persons with disabilities. States expect to have the similar understanding in supporting better access and quality while limiting costs. While it is too soon to wrap up whether managed care is an efficient delivery system for these more susceptible populations, initial understanding implies that design features of most state systems for women and children are inadequate to check the special needs of older persons and persons having disabilities. (Booth, 1997)


We are already studying that quality management system for programs helping more susceptible populations, such as elders and persons with disabilities, must use a different lens to its actions. A system must be built which is competent to assess program performance where very small complete standards of care exist and where quality of life deliberations may be as important as those connected to quality of care. These show new viewpoints for a state Medicaid agency and expect a new set of skills and know-how. Increasingly, states are studying that quality oversight cannot be a remote activity but needs that other state agencies, community organizations, advocacy groups, consumers, and suppliers become important partners in the quality management process. (Booth, 1997)


For the health insurance market, managed care schemes are a considerable and increasing share. As managed care combines financing with service delivery, supervising quality and access to health care within individual schemes is very vital. Several of this can be done by official appraisal of clinical quality using medical records, administrative systems, or similar information. But, these sources are not compatible to measuring the awareness of health plan customers. For recognizing consumer viewpoints, surveys are a helpful device, offering more methodical data to balance information from complaint systems and other sources of consumer feedback. Consumer reviews are getting increased focus as a component of Total Quality Management and Continuous Quality Improvement to improve quality of care and service.


Though some disagreement stays alive about the role of consumer information in monitoring quality, most researchers, policymakers, and managers accept that consumer satisfaction is a significant gauge of quality and, hence, of system and health plan performance. But, as many of these applications are ready, they are badly recognized in the published literature, which is a weakness. As more of the population registers in managed care, there has been an enhanced policy focus on use of consumer satisfaction surveys to offer information to purchasers and consumers to aid them in making selections among procedures. (Gold; Wooldridge, 1995) In a review carried out by the federal Agency for Health Care Policy Research and the Kaiser Family Foundation, health care consumers affirm that quality is their biggest concern in selecting among managed care procedures. But, health care consumers are not comfortable with quality information formed by independent organizations, and even when they have seen these pointers, keep on depending on personal advices. Consumers evaluate quality by the personal advices of their doctors, family and associates. (Rivera; Lee, 1999)


Even then, as per the study, Americans affirm that having quality of care information, like, how well an arrangement cares for members who have health problems, easiness of receiving needed care, and achievement at early disease detection, is very significant to them when selecting a health preparation. Those that have seen relative quality data consider that there are large dissimilarities in quality across health plans. These points to the requirement for health care consumer education to enhance consumer knowledge about and assurance in dependable quality information and data. Quality information will in no way be the only factor consumers think when they make options. Other aspects comprise cost, continuity with particular doctors or hospitals, and specific advantages. But reachable and comprehensible quality data are necessary if consumers and purchasers are to hold suppliers answerable. (Rivera; Lee, 1999)


There are various influences motivating managed care organizations to give specific attention to the quality of care and service they offer. The remarkable thing is that independently any one of the influences would have an effect on the quality of care and services offered by a managed care organization, but together, their effect has been major. Parisi and Silberman have done a superior job at delineating the activities that are pushing the quality development in managed care. Here are just a few of the pushers influencing the new alterations: The states normalize Health Maintenance Organizations -HMO and other types of managed care typically through their department of insurance. The U.S. Department of Health and Human Services also has the liability for managing particular Managed Care Organizations -MCO embracing federally qualified HMOs and those procedures registering Medicaid or Medicare enrollees. (Carefoote, 1998)


Though it is not essential for managed care organizations to acquire an orderly certification, the rivalry from other certified organizations is forcing them to do so. There are three major forces in the field of voluntary accreditation, namely The National Committee on Quality Assurance -NCQA, the Joint Commission on Accreditation of Healthcare Organizations -JCAHO, and the Utilization Review Accreditation Commission-URAC. The Health Employer Data and Information Set -HEDIS has more than 60 performance measures and is a popular marker of excellence in managed care today. At present NCQA has the accountability for HEDIS. HEDIS was intended to offer MCOs with a uniform reporting system for recognizing quality enhancement indicators. With this MCOs can trace their functioning over a period of time.


Likewise, HEDIS also offers owners and buyers of health care with significant facts for evaluating the worth of managed care products. There is an enlarged importance on effects in the recent forms of HEDIS and is used to measure presentation in the commercial as well as the Medicare and Medicaid populations. MCOs nowadays find themselves contending for business not only on expenses, but also on the quality of concern and assistance that they offer, currently and in the earlier period. Those MCOs that have not paid interest to the significance of quality are swiftly finding out that excellence needs to get a superior meaning within their organization if they are to continue in the money for some time. (Carefoote, 1998)


Managed care and capitated payment systems are developing to be the standard, due to the huge market forces, rivalry, and the force from business and intermediate payers. Managed care networks and the stress for effectiveness and efficiency will prolong, in spite of disapproval by many integrated delivery systems. Quality improvement efforts will be of specific value as integrated health networks -IHNs persists to develop in reaction to keen environmental and competitive pressure among both payers and providers. Quality is not just a job of tabling the number of grievances and proposals given by “customers.” IHNs will be required to describe quality in terms of outcomes-based procedures, which has to be put to use to the whole organization. One of the main problems associated to this process is that it has fewer to do with the information system and much more to do with the ethos and standards of the member organizations linked to the IHN. (Friedman; White, 1999)


The victory of IHNs will be basically decided by coordinating task, vision, and standards and less on economic motivation and compensation packages, for which there is proof. Thus the importance on Health Service Organizations HSOs and Managed care organizations- MCOs will continue. Collaboration between suppliers and managers will be the solution to offer secure and proficient care of the highest quality within the limit of cost containment and managed care. The requirement to control quality is essential for organizational achievement. The mounting up proof points out that “service quality” as described by customers is the prospect in MCOs — if not in all industries. Effectively, insight is actuality and customers who are not content will in a short time be no longer customers. (Friedman; White, 1999)


The test is to find out as much about service quality as possible and employ it to HSOs. An alteration in method and customs is what is greatly required. MCOs that do not implement procedures to check and constantly enhance quality will waste a major competitive benefit to those who have quality as an essential part of their task and daily operations. In an atmosphere of elevated levels of change and vagueness, the organizations that endure will do so by permitting employees at all grades the choice to attain their utmost professional potential and to attempt new and modern methods to offer the uppermost quality customer service probable. Something that is less than a whole dedication to quality and quality methods will turn out to be a serious blunder in future’s competitive and cost-conscious surroundings. (Friedman; White, 1999)




Booth, Maureen. (January 6, 1997). “Protecting Quality under Medicaid Managed Care” Online Journal of Issues in Nursing. Available from Accessed on 28 November, 2004


Carefoote, Roberta L. (1998) “Managed Care and Quality Management” Available from Accessed on 28 November, 2004


Dunn R. (September, 1990) “Managed care: quality management differentiates the product” Top Health Rec Manage. Volume: 11; No: 1; pp: 25-31 Available from db=PubMed& list_uids=10106985& dopt=Abstract Accessed on 28 November, 2004


Friedman, Leonard H; White, David B. (Autumn, 1999) “What Is Quality, Who Wants It, and Why?” Managed Care Quarterly. Available from Accessed on 28 November, 2004


Gold, Marsha; Wooldridge, Judith. (Summer, 1995) “Surveying consumer satisfaction to assess managed-care quality: current practices – New Initiatives and Approaches in Health Care Quality” Health Care financing Review. Available from Accessed on 28 November, 2004


Kelly, Diane L. “Applying Quality Management in Healthcare: A Process for Improvement.” Available from Accessed on 28 November, 2004


McLaughlin, Curtis P; Kaluzny, Arnold D. (February 1998) “Managed Care: The Challenge Ahead” OR/MS Today. Available from Accessed on 28 November, 2004


Morgan, Kelly S. (1996) “Managed Care, Utilization Management, and Case Management in the Emergency Department” Top Emergency Medicine. Volume: 18; No: 4; pp: 50 — 57. Available from / chapter%2011/tem%2018-4.50-57.pdf Accessed on 28 November, 2004


“Quality Measurement and Improvement in Managed Care” Available from Accessed on 28 November, 2004


Reinke, WA. (1995 October) “Quality management in managed care” Health Care Management. Volume: 2; No: 1; pp: 79-88. Available from & db=PubMed& list_uids=10165645& dopt=Abstract Accessed on 28 November, 2004


Rivera, Lourdes; Lee, Peter. (Jan 20, 1999) “Making Sense of Managed Care Quality Information” Available from Accessed on 28 November, 2004

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