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PROLOGUEQuality Of CarePROLOGUE: For several years in the late 1990s health care costs seemed to be under control, and health plans seemed to be less concerned with the notion of competing based on cost. Analysts were hopeful that quality would become a new competitive criterion for plans grappling for market share, and several high-profile reports turned the spotlight squarely on the "quality chasm." Now, with the well-documented return to rising health care costs, the debate on quality is wide open, and we seem to be no further along in being able to isolate what constitutes good quality in medical care, how to ensure it for patients, and how to reward providers and plans whose outcomes bear witness to their emphasis on quality assurance. Several papers in this issue follow different threads in the quality debate, covering a large amount of territory. First, economist Joseph Newhouse raises the question of why we have a quality chasm, as characterized by the Institute of Medicine. Although it is clear that there are no shortcuts, Newhouse and others see hope in an increased use of information technology and financial incentives to disseminate information about best practices, enhance patient-physician communication, and facilitate medical record keeping. David Lansky, head of the Foundation for Accountability (FACCT), asserts that government should require public disclosure of performance information in connection with any health expenditure or benefit. He sees a public-private reporting partnership that will result in improved quality across the board. But is simply reporting enough? Mark Chassin describes how New York States cardiac reporting system has reduced cardiac surgery deaths by 41 percent and has led to changes in the way cardiac surgery is performed in that state. This is excellent news. However, in New York the only hospitals that embraced the new procedures were those whose cardiac surgeries were in serious jeopardy. Even hospitals that were performing below average felt little incentive to overhaul their cardiac care programs to acquire an excellent rating. The market neither rewarded hospitals that improved mortality rates nor punished the underperformers. What about the growing number of procedures that are conducted outside the hospital, beyond the reach of hospital accreditation and quality control? Elizabeth Lapetina and Elizabeth Armstrong discuss the respective approaches New York, Florida, and New Jersey have taken to reducing medical errors in outpatient settings. In a weighty essay, Robert Miller and Harold Luft update their review of studies of health maintenance organization (HMO) quality and cost containment and conclude that both HMOs and non-HMOs get mixed grades for their quality performance, but HMOs have reduced use of hospital and specialist resources and lowered some health care costs. They report a sharp increase in the number of studies of HMO performance in the five years since their last literature study, reflecting the research and funding communities increased focus on quality.
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