Why These Metrics?
Why do throughput metrics exist at all, since they’re so inappropriate for measuring the value of health care? The
RAND group pointed out a useful pattern in their review of efficiency measures: most measures of productivity are
designed by delivery systems and purchasers, meaning they’re not designed for the needs of policy makers or
patients. Specifically, over 80 percent of the throughput metrics currently used for studying efficiency provide
information to hospitals or physicians. The design perspective matters because, as Hussey et al. write, “different
entities have different objectives for considering efficiency, have control over a particular set of resources or inputs,
and may seek to deliver or purchase a different set of services.”11, 12 Put more explicitly, physicians and hospitals
operate in a largely fee-for-service context, so their incentives are to increase utilization of services, and so to increase
throughput. Given that, it’s not surprising to see what they choose to measure.
Even when providers are pre-paid, as is the case for integrated provider-payer systems such as Kaiser Permanente, or
are paid a bundled fee for a set of services, like they are with Medicare’s diagnosis-related group (DRG) payment for
hospitals, increasing throughput can allow providers to increase the number of patients served, and thus increase
both revenue and measured productivity. Few payment schemes take into account the quality of care provided
(although that’s beginning to change, for example with Medicare’s penalties for frequent readmissions).13 Given the
conflict between the need for health care to provide value to the patient and the drive for doctors and hospitals to get
paid, it makes sense that physicians and hospitals measure (and try to increase) throughput of services. Tellingly,
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none of the measures that accounted for health or quality was developed by a medical provider; rather, they were
created by researchers studying efficiency at a payer or health care system level.