Archive for September 14th, 2009

Healthcare: Pay for quality, not quantity … now, how exactly is that going to work?

September 14, 2009

One of Team Obama’s mantras is that under government-run healthcare, payments to doctors will be made based on quality (outcomes) rather than the quantity of procedures being done.

Nice philosophically, but how to make it happen ?

Couple of observations:

  • Quality over quantity should be easier in education than healthcare since students can be tested for progress.  But, virtually all merit pay programs for teachers (i.e. outcome-based) have been rejected out of hand or fail.  But, they’ll work in healthcare … hmmm.
  • A common method for controlling output quality is to control input quality.  In healthcare, that means rejecting the toughest cases and treating only the sure winners.  For example, when I first investigated corrective eye surgery, the docs rejected me.  My eyes were too bad, and they wanted to tout the percentage of patients that they got to 20/20.
  • It’s argued that a key to controlling quality is to make primary care physicians the coordinators of all medical services. That’s silly because: (1) there is a shortage of primary care docs (evidence: how quickly can you get an appointment when you’re sick? how about an appointment outside the 9 to 5 work day window?); (2) been there, tried that – in the past, most plans required that a patient see a primary care doc to get a referral to a specialist – the referral was almost always given – net impact: a step was added to the process

I guess it’s better to bum’s rush through legislation than to give it serious thought.  Disappointing.

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What’s happening? Check out Google Domestic Trends

September 14, 2009

New to me is an interesting tool from Google.

Google Domestic Trends track Google search traffic across specific sectors of the economy. Changes in the search volume of a given sector on google.com may provide unique economic insight.
http://www.google.com/finance/domestic_trends

You can access individual trend indexes.  (Full list below)

For example, the Google Auto Buyers Index tracks queries related to “car, blue book, toyota, kelly book”.
http://www.google.com/finance?q=GOOGLEINDEX_US:AUTOBY

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The Google Real Estate Index tracks queries related to “real estate, mortgage, rent, apartments”.
http://www.google.com/finance?q=GOOGLEINDEX_US:RLEST

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The Google Unemployment Index tracks queries related to “unemployment, social, social security, unemployment benefits”. 
http://www.google.com/finance?q=GOOGLEINDEX_US:UNEMPL

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Full list of Goggle Domestic Trends

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Ken’s Take: Google Domestic Trends is a blunt tool that will make hardcore statisticians puke.  Nonetheless, an interesting — and, I bet, directionally accurate set indicators.

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Thanks to MSB MBA alum John Tags for the heads-up

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