Chronic Illness Resource Usage

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1 Chronic Illness Resource Usage, Assoc Prof Girosi, Dr David Dean HRT 1520 Innovations Workshops and Awards November 2015, Sydney

2 2 Innovation Summary Key problem: DRGs do not take into account chronic conditions very well in resource usage. Aim of Innovation: Determine if there is a large resource change when a chronic condition is present. Baseline data/ current situation: Several years of HRT demographics and costing data was used. Changes implemented: Determine admission LOS and Cost for episodes where a patient had / does not have a chronic condition. Outcomes: Patients that had a chronic condition used approximately twice the resources both in cost and length of stay as those that had no chronic condition. Conclusions: A better method of classifying patients may be necessary that includes chronic conditions

3 Key Problem There is a wide variation in patients in the DRGs and they can affect the variation in resource usage and clinical pathways required. DRGs are used to reflect the resource usage in funding circumstances but may not take into account all relevant information. DRGs have been continually refined however they may need to better account for chronic conditions. 3

4 Aim of this innovation The aim of this analysis was to determine if patients that also had Chronic conditions used more resources than those that did not. Three definitions were used for defining Chronic Conditions (A) The Six Chronic disease categories used with the 45 and Up linked data by Professor Louisa Jorm et al UNSW. (B) The chronic diseases defined by the new U ICD codes and their respective codes that are used when they affect patient treatment. (C) The chronic diseases that appear in the AIHW list of codes for potentially avoidable hospital admissions. 4

5 5 Baseline Data / Current Situation The data we used was the public hospital Health Roundtable data from 2012 and 2013 Financial Year. The data was recoded into DRG 7.0 by the HRT. There were approximately 4 million episodes of costed demographic data from about 60 hospitals.

6 Three methods of defining Chronic conditions Model 1: ICD Codes for Diabetes, Heart disease, Hypertension, Obesity, Smoking and Stroke Model 2: ICD Codes for Obesity, Cystic fibrosis, Dementia (incl in Alzheimer's), Schizophrenia, Depression, Disorder of intellectual development Model 3: Asthma, Congestive cardiac failure, Diabetes complications, COPD, Bronchiectasis, Angina, Iron deficiency anaemia, Hypertension, Nutritional deficiencies, Rheumatic heart diseases 6

7 7 Chronic conditions influence LOS and Cost

8 8 Resource usage by DRG and Chronic Flag

9 Lessons Learnt Chronic conditions have a significant effect on both length of stay and the cost of the patient stay in hospital On average patients with chronic conditions used between two and three times the amount of resources than non-chronic patients. That is independent of the definition of chronic. The change in resource usage for chronic illness is in addition to DRG complexity. 9

10 Contact for this Innovation For more information Contact: Dr David Dean Associate Professor Federico Girosi 10

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