Vericare Monograph 3 February, 2003
 
Medical cost offset and behavior health

LYNN NORTHROP, PHD

 

Professionals are challenged with balancing the seemingly competing objectives of providing high quality care while keeping costs down. The escalating cost of providing health care presents a major challenge to the long-term care (LTC) industry. And yet, the primary mission of LTC facilities remains to provide quality care and service.

 
Overview
 

Administrators, nurses, aides, and other professionals are challenged with balancing the seemingly competing objectives of providing high quality care while keeping costs down. A large body of research has emerged in recent years indicating that behavioral health services can reduce or offset the costs of providing care in a variety of health care settings, including long-term care (1 Pallack,  et al,  2 Friedman, et al, 3  Chiles, et al). One study illustrated the cost savings obtained when behavioral health services were provided post-operatively for hip-fracture patients undergoing rehabilitation in a nursing

Empirical findings quantify advantages of attending to the whole patient, healing mind and body. Vericare psychologist Dr Kevin Jones helps a resident at RHC in Baytown,Texas. Photo by Elaine Moreschi, with permissions.

home. Patients receiving behavioral services experienced one-third as many complications and were nine times more likely to resume pre-fracture levels of functioning. They required less wound care, less assistance with transfers and personal care, and fewer pain medications (4 Strain, et al ).

 
Reduction in medication
 

Decreases in the need for common prescription medications have been linked to behavioral interventions. In addition to reducing the need for pain medications, behavior therapy has been shown to decrease use of hypertension (5 Fahrion, et al ) and chronic obstructive pulmonary disorder (6 Kemper, et al ) medications. In a number of studies, behavior therapy has been shown to be equal to or more effective than more costly drug treatments. For example, sleep hygiene training was shown to be more effective than Restoril (7 Morin, et al ).In another study, relaxation training and drug therapy were equally effective in diminishing essential tremor. However, patients in the relaxation group reported fewer depressed moods and less tremor-related disability than did the patients in the drug treatment group (8  Lundervold, et al ). Decreased medication usage translates to significant savings for skilled nursing facilities that are reimbursed through the Prospective Payment System (PPS). Residents and families who pay for their own medications also stand to benefit. These and other benefits of an integrated behavior health program can be high- lighted when viewing long-term care services, as they clearly offer another, more comprehensive, level of professional care.

 
Expenses of clinical depression
 

Depression is perhaps the most prevalent psychiatric diagnosis in nursing homes, and the diagnosis for which there is the largest body of evidence for the efficacy of behavioral interventions in the elderly. It is estimated that as many as 40% of nursing home residents suffer from moderate to severe depression (9 Randall ). Research suggests that depression results in increased staff care time, even after controlling for physical illness and disability (10 Fries, et al). Thus, in addition to improving residents quality of life, behavioral interventions for depression can reduce staff care time and thus reduce operating costs to the facility.

 
Quality of Life
 

It should be added that a large proportion of depressed older adults go undiagnosed and thus untreated. Only about half of the 3,410 older adults in a University of Minnesota study who scored in the depressed range on the Geriatric Depression Scale were identified as depressed by their physicians (11 Rolnick). Clearly, if these individuals go unidentified and untreated, nobody benefits. In a recent inter view, Dr Deb Frazer, Director of Behavioral Health Services for Genesis Health Ventures, offered her perspective on the advantages of calling on a psychologist. Frazer states, "In today’s pharmacological climate, we sometimes jump too quickly to a pill for solving our patients’ problems. There is great value in someone having time to sit down and talk with a resident. Residents and families place value in this, as do nursing staff. Psychologists have the rare luxury of being paid by Medicare for spending the time to listen and to help an individual solve problems. Even in the PPS environment, a LTC community can request psychological services at no cost to the community."

 
Under utilization
 

Despite strong empirical and anecdotal evidence of the cost offsets of behavioral health services in long-term care, savings in cost have gone largely unrealized. Although researchers suggest that 67% of nursing home residents warrant at least one psychiatric diagnosis, only 4.5% of those with a diagnosis receive mental health services (12 Burns, et al ).Based on the US Department of Health and Human Service’s 1999 survey (13 Jones), there were 1,628,300 residents in US nursing homes, so there were over one million Americans suffering psychiatric problems and less than 50,000 getting care for those problems.

 
Conclusion
 

Several hurdles must be overcome if we are to eliminate this discrepancy between the need for behavioral healthcare versus the actual provision of care:

  1. Behavioral health professionals need to do a better job of making the LTC industry aware of the clinical benefits and cost offset potential of an integrated behavioral health program.
     

  2. Residents, families, and LTC staff need to be helped to overcome the stigma of mental illness that sometimes prevents referrals or consent for service.
     

  3. Behavioral health services need to be made more available in LTC facilities.

References
 
  1. Pallack M, Cummings N, Dorkan H. Medical costs, Medicaid and managed mental health: The Hawaii study. Managed Care Quarterly 1994; 2(2): 64 -70.
     
  2. Friedman R, et al. Behavioral Medicine, Clinical Health Psychology, and Medical Cost Offset. Health Psychology 1995; 14(6): 509 -18.
     
  3. Chiles J, Lambert M, Hatch, A. The impact of psychological interventions on medical cost offset: A Meta-analytic review. Clinical Psychology: Science & Practice 1999; 6 (2): 204 -20.
     
  4. Strain, et al. Cost-offset from behavioral consultation: Liaison intervention with elderly hip fracture patients. American Journal of Psychiatry 1991; 148: 1044 -49.
     
  5. Fahrion S, et al. Biobehavioral treatment of essential hypertension: A group outcome study. Biofeedback and self-regulation 1987; 11: 257-278.
     
  6. Kemper D, Lorig K, Mettler, M. The effectiveness of medical self-care interventions: A focus on self-initiated responses and symptoms. Patient Education & Counseling 1993 ;21: 29 -39.
     
  7. Morin C, et al. Behavioral and pharmacological therapies for late -life insomnia: A randomized controlled trial. Journal of the American Medical Association 1999; 281(11): 991-9.
     
  8. Lundervold D, Belwood M, Craney J, Poppen R. Reduction of tremor severity and disability following behavioral relaxation training. Journal of Behavior Therapy & Experimental Psychiatry 1999; 30(2): 119 -135.
     
  9. Randall,T.Demographics of the aging and the aged: Awaiting unprecedented looming of the elder boom. Journal of the American Medical Association 1993; 269: 2331-2.
     
  10. Fries B, et al. Mental dysfunction and resource use in nursing homes. Medical Care 1993; 31: 898-920.
     
  11. Rolnick S, Nitz N. Clinical detection of depression among community based people with self-reported symptoms of depression. Journal of Gerontology 1998; (Medical Sciences) 53A(3): M92-M101.
     
  12. Burns B J, Wagner HR,Taube JE, Magaziner J, Permutt T, Landerman LR. Mental health service use by the elderly in nursing homes. American Journal of Public Health 1993; 83: 331-7.
     
  13. Jones A. The National Nursing Home Survey:1999 summary, National Center for Health Statistics. Vital Health Statistics 2002; 13(152). Available from the National Center for Health Statistics, U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, Hyattsville, MD, June 2002,DHHS Publication No.(PHS) 2002-1723.

© 2003 Vericare Management, Inc.

 

Vericare (formerly Senior Psychology Services) is a national provider of mental and behavior health services, primarily to long-term care facilities. After twelve years, it has become the largest such service with over 1,000 client facilities. Vericare employs over 300 psychologists, psychiatrists, social workers, and other qualified professionals in eight states.

 

# # #

Vericare Monograph 3
Medical cost offset and behavior health

by Lynn Northrop, PhD

Download monograph in .pdf format     Get Acrobat Reader for pdf files    Acrobat Help

Reprints of these monographs are available on request:

Monograph 1, The metrics of care and cost in long-term care facility operations relative to psychological health of residents

Monograph 3, Medical cost offset and behavior health

 

Vericare - Article

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Your Partner for Meeting the
Mental Health Needs of the Elderly

Welcome.

On these pages, you will learn more about our clinical programs and the delivery of quality mental health and behavioral health care to older adults. We encourage you to peruse the following pages. This will help you to develop an appreciation for our standards and ethical guidelines, and for the ways we conduct our business.
If you are looking for quality, convenience and professionalism in your mental health provider, Vericare wants to partner with you.

Our plans for this year will bring us into other states. If you are a facility, or if you are a part of a chain that is located in a state other than where we are currently working, please let us know of your interest. There may be an opportunity for contracting with you, and we would like to discuss this possibility with you


 

WHY YOU NEED A MENTAL HEALTH AND
BEHAVIOR MEDICINE SERVICES PARTNER


Many caregivers have always believed that the elderly have special mental health requirements. New evidence confirms those beliefs, and new regulations have made the issues more urgent.
  • 40% of nursing home residents exhibit symptoms of depression.
  • Among the 2/3’s of nursing home residents with a mental disorder, fewer than 5% receive treatment.
  • 40% of dementia patients have additional psychiatric symptoms.
  • Depression in nursing home residents is associated with increased staff care time.
  • Government regulations demand more emphasis on therapy and discourage reliance on psychotropic medication or physical restraint.
Additionally, as of January 2002, Medicare has formally recognized the value of psychological services provided to individuals in recovery or management of medical conditions. On the basis of a medical disorder only, older adults may now get behavior medicine assessment and treatment services to aid in the prevention, treatment, or management of acute or chronic medical disorders.

Referrals are made by the primary care physician, facility staff, family member, or are self-referred by the resident

The Challenge of Meeting Mental Health and Behavior Medicine Needs

Despite the need and genuine concerns among nursing home administrators, it has not been easy to provide this care for residents. Some of the practical questions have been:
  • How do you know when mental health and behavior medicine care is needed?
  • What steps must be taken to obtain resident and family agreement?
  • Can adequate reimbursement be obtained?
  • Which provider should you recommend?

A Solution at No Cost to Your Facility

Vericare was formed to make high quality mental health care a routine and convenient adjunct to your current programs. All of the services we provide are paid for by Medicare, Medicaid, private carriers or by the resident, with no cost to your facility. We furnish the administrative help you need to set up and operate a mental health and behavioral health services program.

Our Providers will become part of your treatment team, provide input for your care plans and develop a collaborative relationship with physicians and ancillary service providers.

These services are covered by most insurance payers, including:

Medicare
Medicaid/MediCal

Managed Care
Private Insurance

GETTING STARTED


If you are looking for quality, convenience and professionalism in your mental health provider, VeriCare wants to partner with you.


Putting our program into your facility is as simple as a phone call. We will contact you and help you assess your needs. If you select us as your facility’s mental and behavioral health service provider, our local staff will take care of the details.

Please let us show you how simple it can be to add our services to your facility.    
Inquire

THE Vericare PROGRAM

The services we provide are based on the needs of your residents. Our providers are all licensed and thus qualified to administer evaluations to help determine the best treatment plan for the individual resident. In addition to these initial evaluations, treatment alternatives include:
  • Individual psychotherapy for residents who can participate in and benefit from a one-on-one format, improving coping and adjustment skills, enhancing quality of life and provides insights into the resident’s special needs
  • Group therapy which offers the benefits of interaction, socialization and peer support
  • Family therapy to help family members deal with the feelings generated by placing a loved one in the care of others, such as helplessness, guilt or frustration, and to develop problem solving skills
  • Family support groups providing a forum for ongoing support and problem resolution for family members
  • Specialized programs to individualize the mental health and behavioral health
    needs of your residents. These programs provide comprehensive assessment and interventions for dementia patients, geared to their functional ability, with less reliance on medication or restraint, and assists the treatment team with residents who are not progressing in their rehabilitation
  • Residential services developed for assisted, independent living and other residential settings for the elderly
THE BENEFITS Vericare OFFERS YOUR FACILITY
Although current information and changing laws make programs like ours virtually mandatory, we believe the positive benefits are even more significant.


Your residents benefit from

  • improved mental functioning and increased sense of well-being;
  • reduced anxiety and fearfulness;
  • better adjustment to a new lifestyle and reduced functioning – medical evidence even implies that reducing depression can improve outlooks for physical illnesses and extend longevity in the case of terminal conditions.

Your staff members benefit since

  • residents will be easier to treat; untreated residents add to the burden of care;
  • problem behaviors can be reduced or better controlled, especially among those residents with advanced dementia, often with fewer restraints; they develop more effective communication approaches to enhance their caregiving;
  • employee morale increases due to increased knowledge and effectiveness in dealing with mental health issues.

Your facility benefits from

  • better positioning to comply with OBRA regulations and other licensing requirements affecting psychoactive medications and behavioral interventions;
  • gaining an important marketing advantage for attracting new residents;
  • comprehensive programs at no cost to your facility.

A COMPARISON OF MENTAL HEALTH SERVICES

When comparing mental health services, asking these questions will help you in your search. Vericare is large enough to change an industry, yet personal enough to fit into your facility. These standards reflect our attention to quality resident care, and our dedication to meeting the needs and expectations of your facility.

DOES THE MENTAL HEALTH PROVIDER:
Have a mission statement that emphasizes quality of care and customer service?
Have a management structure that emphasizes ethics and regulations?
Have long term care as 100% of their focus?
Employ LICENSED Providers and provide you with current license/malpractice information on their providers?
Offer specialized service tracks like Behavior Management and Rehabilitation as well as AIMS testing?
Offer inservice training and specialized consulting as an integral part of their program?
Conduct an extensive orientation with the provider before placement into your facility?
Provide APA-approved continuing education for their psychologist providers on a bimonthly basis and provide updates, current articles, and documentation essentials through monthly mailings?
Review cases, programs, and facility needs every quarter with your IDT?
Conduct an ongoing concurrent and retrospective quality review process utilizing a full time QM Director?
Have a Regional Psychologist/Director with long-term care experience responsible for hiring, training, evaluating, and overseeing the provider and program quality?
Employ Program Coordinators with long term care experience whose priority is to ensure a smooth, "user friendly" program?
Assure you through a check and balance system that residents are not seen without a physician order?
Provide an organized intake process that insures the resident's and/or responsible party's consent to receive treatment and to bill before any services are provided?
Document service delivery to facilitate your care planning process and revenue enhancement?
Provide an inservice on the interface between the MDS and Quality Indicators and psychological functioning?
Have separate professional corporations that can employ and place psychiatrists, nurse practitioners, and clinical nurse specialists to assist with medical consultation and work alongside the mental and behavioral health providers?

CUSTOMER SATISFACTION

How Our Customers Rate Vericare:


90%  Agree our services are helpful in
improving the resident’s quality of life.

94%  Agree that our documentation is
easily integrated into their care plans.
Customer satisfaction reflects our attention to quality resident care, and our dedication to meeting the needs and expectations of your facility.
90%  Report our providers demonstrate an understanding of OBRA and state regulations.
98%  Rate the provider as professional in demeanor.
87%  Feel our services are helpful in reducing the staff’s burden of care.
94%  Agree our providers build strong relationships with the facility’s staff.
QUALITY – Vericare improves the quality of life of residents and reduces the burden of care for staff
TEAMWORK – Vericare works closely with the IDT for integrated service delivery
COMMUNICATION – throughout the treatment planning and documentation process

UNIQUE Vericare FEATURES THAT ILLUSTRATE
OUR PROGRAMS IN ACTION:

 


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