Saturday, February 4, 2012

Public Health and Health Care Reform

As the fate of the Affordable Care Act (ACA) hangs in the balance, the Obama administration has had to make some compromises in order to keep the bill afloat. One of these is cutting #3.5 billion from the $15 billion Prevention and Public Health Fund. The fund exists given increasing recognition that a majority of chronic disease we see now are likely secondary to what are public health issues (changing diets, limited opportunities to exercise, pollution, etc).

The usual justification for public health is that, in the long-run, it prevents disease and thereby lowers health care costs. I think this is fundamentally correct. However, it's a tired argument, especially in the context of four-year political cycles (why wait on cost savings that will take a long time to materialize if they don't confer any immediate electoral benefit?) and a natural fixation over observable events (it's hard to appreciate things that don't happen, but seeing someone catheterize an occluding blood vessel to the heart is real and amazing; doing something about that raises political visibility).

Enter Nicholas Stine and Dave Chokshi, both physicians at the Brigham and Women's Hospital. They have a nice perspective piece in this week's New England Journal of Medicine that makes a fresh case for public health expenditures. In particular, they cleverly frame the value of public health in terms of immediate cost savings and current cost-control objectives in health care. Some of the more interesting points:

-We are now interested in paying for good quality health services rather than health services in general. There is also a push to think more about population management? Which means we need to be able to measure things we've never measured before on a larger scale. Public health organizations have the know-how and capacity to do population surveillance which can be helpful in this regard. Why not outsource the data gathering and analysis aspects for both quality, capacity and population based outcome measures to the pros? In this way, spending on public health will have spillovers to the medical care.

-More generally, we can use public health departments help organize IT. It is now very difficult for smaller practices or hospitals to afford good IT. Outsourcing this to a larger organzation that could perhaps manage IT for many different providers could be really useful in cutting costs for individual firms both in the short and long-run.

-In the same way we are paying for good health care, why not introduce financial incentives for good public health, so as to glean gains from it in the shorter run?

This is a great piece because it takes the public health versus medicine issue and illustrates how the two are complementary. The new angle is that the complementarities can lead to cost-savings sooner than we'd expect, and can help augment and empower current initiatives on the medical care side to improve quality and cut costs. Even their title is beautiful: I'm sure that "Opportunity in Austerity" is what every politician wants to hear now!

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