Background Cost-Benefit Analysis of Nursing Home Registered Nurse Staffing Times Adequate nurse staffing in hospitals, ICUs, ambulatory clinics, and nursing homes has been shown to be critical for quality care. Cost-benefit of better resident outcomes versus additional wages for nurses is largely unknown. Presented by Susan D. Horn, Ph.D. Senior Scientist Institute for Clinical Outcomes Research Salt Lake City, Utah Lead author: David Dorr, MD, University of Utah Co-author: Randall Smout, MS, ICOR 2 Research Objective • • Study Design To perform a cost-benefit analysis of societal benefits of decreased adverse resident outcomes versus additional wages of registered nurses to achieve adequate staffing in nursing homes. • Retrospective chart review was used to collect data on over 500 resident, treatment, facility, and outcome variables including Comprehensive Severity Index (CSI). Perform cost-benefit analysis from institutional perspective. 3 National Pressure Ulcer Long-term Care Study (NPULS) 1996-1997 CPI Study Design Process to Develop Decidable and Executable Dynamic Protocols Improve/Standardize: Process Factors •Management Strategies •Interventions •Medications Control for: Patient Factors •Disease •Severity of Disease 4 • 6 longlong-term care provider organizations • 82 facilities • 1,376 residents studied Measure: • Inclusion criteria: ¾ LOS > 14 days, Outcomes •Clinical •Health Status •Cost/LOS/Encounters ¾ at risk of developing pressure ulcers with Braden Scale score < 17 ¾ no pressure ulcer on study entry • Outcomes: Develop Pressure Ulcer (PU), hospitalization, urinary tract infection (UTI) › physiologic signs and symptoms › complexity/psychosocial factors •Multiple Points in Time Funded by Ross Products Division, Abbott Laboratories 5 AcademyHealth Econ RN LTC Horn_6.6.04 6 1 DEVELOP PRESSURE ULCER by RN Time Event Rates and Cost Estimates 40% Event rates for from National Pressure Ulcer LongTerm Care Study (NPULS). • 38.1% 35% % Pressure Ulcers • Hospital costs estimated from age and gender-specific charges from Health Care Cost and Utilization Project 30% 31.8% 25% 25.1% 20% 15% 10% 9.4% 5% (HCUP) with Medicare discount applied (48.9%). 0% <10 min • 10 - <20 min 20 - <30 min 30 - <40 min RN Time Per Resident Per Day UTI and PU costs from cost-identification studies. ChiChi-Square (6 df) = 50.86, p<.0001, n=1,376 7 8 HOSPITALIZATION by RN Time DEVELOP PRESSURE ULCER by RN Time Parameter ADLs_78 CSI Severity MDS PU_hx Wt loss Oral_eat prob Catheter Entcalpr Ent_dis Fluid order RN 10-20m RN 20-30m RN 30-40m CNA >2.25h LPN >=45m Estimate 0.28 0.01 0.75 0.34 0.39 0.78 -0.55 -0.98 -0.43 -0.41 -0.62 -1.86 -0.64 -0.64 Chi-Square Pr > ChiSq 4.68 18.19 15.00 6.04 9.33 16.98 6.77 6.00 8.43 0.0305 <.0001 0.0001 0.0140 0.0023 <.0001 0.0093 0.0143 0.0037 7.84 13.12 42.82 5.76 8.74 0.0051 0.0003 <.0001 0.0164 0.0031 % Hospitalization Logistic Regression: DEVELOP PU -- RN/LPN/CNA Time and Other Effects 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 18.4% 11.1% 9.6% 6.1% <10 min 10 - <20 min 20 - <30 min 30 - <40 min RN Time Per Resident Per Day C = 0.727 ChiChi-Square (4 df) = 35.17, p<.0001, n=1,542 9 Effects of RN Time Measurements RN time of 3030-40 min/resident/day • is associated with Fewer UTIs Fewer catheterizations Less weight loss Less decline in ADLs More nutrition supplements 11 AcademyHealth Econ RN LTC Horn_6.6.04 10 Differences in rates of PU, UTI, and hospitalizations per resident per day were calculated from low staffing (<10 min/res/day) and adequate staffing (30-40 min/res/day) nursing homes. • Time horizon: single year • Inflation adjustment: Medical Care Price Index 12 2 Benefits and Costs • • Principal Findings Benefits per event prevented (FY 2001 dollars) (95% CI) • Per pressure ulcer: $1,727 ($1,654, $1,800) • Per UTI: $691 ($495, $887) • Per hospitalization: $8,523 ($7,514, $9,533) Cost of additional nurse staffing (adding 30 min/pt): • $25.91 ($25.70, $26,11). • Analysis shows net societal benefit of $319,000 per year for 100-bed high-risk nursing home unit with sufficient nurses to achieve 30-40 minutes direct RN care/res/day versus nursing homes with direct RN care <10 min/res/day 13 14 Societal Perspective Economic Value of Nurses Institutional Perspective Economic Value of Nurses Cost/Benefit Analysis of More RN Time Institutional Analysis of More RN Time $ Per 100 atat-risk residents per year (FY2001 dollars) Savings in avoided PU treatment cost $ Per 100 atat-risk residents per year (FY2001 dollars) Savings in avoided PU treatment cost Cost of additional 30 min RN care per resident day $242,426 Savings in avoided hospitalizations $518,627 $472,814 $242,426 Cost of additional 30 min RN care per resident day Savings in avoided hospitalizations $518,627 $472,814 Savings in avoided UTI costs Savings in avoided UTI costs 30,882 30,882 Net Savings $319,121 Assumptions: $1,727 wtd avg to treat PU across stages, $8,523 avg for Medicare hospitalization, $53,900K RN salary & FB/yr Net Cost $199,507 15 Assumptions: $1,727 wtd avg to treat PU across stages, $691 per UTI, hospitalization not counted, $53,900K RN salary & FB/yr Sensitivity Analyses 16 Sensitivity Event Rate sensitivities per 100 bed Nursing Home • Sensitivity analyses revealed a robust $400,000.00 $350,000.00 set of estimates with no single or Benefit (cost), $, per NH $300,000.00 paired elements reaching cost/benefit equality threshold. $250,000.00 $200,000.00 +10% $150,000.00 -10% Estimate $100,000.00 $50,000.00 $0.00 UTI Hospitalizations Pressure Ulcers Wages Event rate categories 17 AcademyHealth Econ RN LTC Horn_6.6.04 18 3 Conclusions • Implications for Policy and Practice Adequate nurse staffing in nursing homes • Incentives for improvement must can have significant societal quality of care allow some (or most) of the savings to and cost benefits, but cost benefits may not be returned to nursing homes that accrue to nursing homes under current voluntarily improve or maintain reimbursement systems. appropriate registered nurse staffing. 19 20 Implications for Policy and Practice • Funding Sources Altering reimbursement to more accurately reflect • cost- effectiveness of care has support in the literature, can be implemented relatively quickly, • and may improve outcomes. • Effective nursing care to prevent adverse • outcomes must be reflected in these alterations. Partial support from National Library of Medicine Training Grant (David Dorr). NPULS that created database used in analyses originally funded by Ross Products Division of Abbott Laboratories Portions of analyses funded by Institute for Clinical Outcomes Research (Randall Smout and Susan Horn). 21 22 Long Term Care CPI Results Long Term Care CPI Results Outcome: Develop Pressure Ulcer Outcome: Develop Pressure Ulcer General Care General Assessment + Age ≥ 85 + Male + Severity of Illness + History of PU + Dependency in ≥ 7 ADLs + Diabetes + History of tobacco use Nutritional Care Incontinence Interventions Pressure Relief Interventions Staffing Interventions + Mechanical devices for the containment of urine (catheters) (treatment time ≥ 14 days) + Static pressure reduction: protective device (treatment time ≥ 14 days) - RN hours per resident per day ≥ 0 .25 - Disposable briefs (treatment time ≥ 14 days) - Toileting Program (treatment time ≥ 21days) + Positioning: protective device (treatment time ≥ 14 days) (p=.07) - CNA hours per resident per day ≥ 2 Nutritional Assessment + Dehydration signs and symptoms: low systolic blood pressure, high temperature, - LPN hours per dysphagia, dysphagia, high BUN, diarrhea, resident per day ≥ 0.75 dehydration + Weight Loss: >=5% in last 30 days or >=10% in last 180 days Medications - Antidepressant 23 AcademyHealth Econ RN LTC Horn_6.6.04 Horn et al, J. Amer Geriatr Soc March 2004 Nutritional Interventions - Fluid Order - Nutritional Supplements • standard medical - Enteral Supplements • diseasedisease-specific • high calorie/high protein 24 4