Providing Primary General Medical Care in University Hospitals: Efficiency and Cost

  1. JACQUELINE KOSECOFF, Ph.D.;
  2. ROBERT H. BROOK, M.D. Sc.D.;
  3. ARLENE FINK, Ph.D.;
  4. CAREN KAMBERG, M.S.P.H.;
  5. CAROL PINDAR ROTH, R.N., M.P.H.;
  6. GEORGE A. GOLDBERG, M.D.;
  7. LAWRENCE S. LINN, Ph.D.;
  8. VIRGINIA A. CLARK, Ph.D.;
  9. JOSEPH P. NEWHOUSE, Ph.D.; and
  10. THOMAS L. DELBANCO, M.D.
  1. the GROUP PRACTICE PROJECT DIRECTORS *
  2. the NATIONAL PROGRAM STAFF ;
    Los Angeles and Santa Monica, California
    ; and all of the program sites

    Abstract

    Data on efficiency, costs, and profits of 15 internal medicine outpatient group practices in university hospitals were collected for 9 months from interviews, a time-motion study, observations, and reviews of bills. Charges for a follow-up visit were about 25% higher than Medicare's allowable charges, but differed threefold across practices. Physicians spent more than half their allocated patient care or supervision time in other activities and 14% of nursing time was used for direct patient care. Visits to second- and third-year residents cost one half of those to faculty. Faculty supervision of second- and third-year residents was limited; it was, on average, 2 minutes per follow-up visit. Despite these inefficiencies, bad debts, and educational costs, practices appeared to break even financially. We conclude it is financially feasible for university hospitals to provide primary care to disadvantaged populations.

    Article and Author Information

    • ▸From the Departments of Medicine and Public Health, Center for Health Sciences, University of California, Los Angeles; and Fink and Kosecoff, Santa Monica, California.

    • * The Group Practice Project Directors include Susan H. Bane, M.D.; Richard L. Byyny, M.D.; Dennis W. Cope, M.D.; Robert D'Allensandri, M.D.; Thomas Delbanco, M.D.; William S. Dunn, M.D.; Jerry M. Earll, M.D.; Suzanne Fletcher, M.D.; Paul Gilbert, M.D.; John T. Harrington, M.D.; Jack Hughes, M.D.; Carter L. Marshall, M.D., M.P.H.; Dennis Quinlan, M.D.; Steven A. Schroeder, M.D.; W. Anderson Spickard, M.D.; Raymond W. Turner, M.D.; John M. Witherspoon, M.D., M.P.H.; and Roy T. Young.

    • The National Program Staff includes Reisa Kahn, M.S.; H. Richard Nesson, M.D., and Wendy Everett Watson, Sc.D.

    • Grant support: in part by grant 5318 from the Robert Wood Johnson Foundation. The views expressed herein do not necessarily represent those of the Robert Wood Johnson Foundation.

    • ▸Requests for reprints should be addressed to Robert H. Brook, M.D.; Department of Medicine, UCLA Center for Health Sciences; Los Angeles, CA 90024.

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