Search

Context: Health plans competing in a managed care system may face serious financial consequences if they are disproportionately selected by enrollees with expensive health conditions. Academic medical centers (AMCs) have traditionally provided medical care for the sickest patients and may be at particularly high risk for adverse selection, but whether this occurs is not known.Objective: To determine whether managed care organizations (MCOs) representing AMCs are adversely selected by Medicaid managed care (MMC) enrollees with expensive chronic health conditions.Design and Setting: Observational study using state Medicaid claims data from all of 1994 and January to August 1995 for Tennessee's statewide MMC program (TennCare).Participants: All 12 capitated MCOs in Tennessee, which collectively provided services for 1.2 million Medicaid enrollees from January 1994 through August 1995 following the initiation of TennCare.Main Outcome Measures: Prevalence of 6 state-specified high-cost chronic conditions-acquired immunodeficiency syndrome (AIDS), coagulation defects, cystic fibrosis, pregnancy, prematurity, and organ transplantation-and 27 additional high-cost conditions compared by academic, statewide, and regional MCOs.Results: The prevalence of state-specified high-cost chronic conditions was generally higher for academic MCOs compared with other MCOs. Specifically, prevalence of AIDS was 14.1 times higher in academic MCOs than in statewide MCOs; coagulation defects, 6.4 times higher; transplantations, 4.4; pregnancy, 3.3; cystic fibrosis, 2.4; and prevalence of prematurity was equivalent. Prevalence was higher for academic than for statewide MCOs for 22 of the additional 27 high-cost conditions considered and similar for the remaining 5 conditions.Conclusions: Our results suggest that academic MCOs in an MMC system are selected by a large percentage of the sickest patients. Adverse selection may present serious financial risks for AMCs participating in managed care. [ABSTRACT FROM AUTHOR]

Interhospital spread appeared to be responsible for a large epidemic of infections due to a strain of Serratia marcescens that was resistant to all currently available parenteral antibiotics. Between April 1, 1973 and January 1, 1975, 210 patients in four geographically separate hospitals in Nashville, Tennessee, were infected with the epidemic strain; 21 patients were bacteremic and eight died. Catheter-associated urinary tract infection accounted for the majority of isolates, and broad-spectrum antibiotic exposure appeared to promote the acquisition of the epidemic strain. The serotype (O1:H7) and phage type (186) of the organism were identical in all four hospitals, but background, sensitive strains of S. marcesens yielded a variety of other serotypes. Carriage on the hands of hospital personnel was implicated as the mode of spread within the hospital and apparently was the mode of transmission between the hospitals. Antibiotic resistance was largely episomally mediated, but resistance to gentamicin, cephalothin, and colistin was not transferable.