| Idea | Pilot | Policy Paper | Legislation | Implementation | Evaluation | Change | ||
|---|---|---|---|---|---|---|---|---|
| Implemented in this survey? |
Proposed ambulatory care centres aim to better balance utilization and integration of inpatient and outpatient care. EU rulings required the government to align inconsistent market authorization for ambulatory care providers. But the proposal does not tackle fragmented jurisdiction and diverse payment schemes across providers. Only physicians may become shareholders and they are prohibited from employing other doctors, raising doubts about the usefulness and cost-effectiveness of the policy.
This policy proposal follows-up on a 2007 initiative, where a proposal to establish ambulatory care centres was turned down after facing fierce opposition particularly from doctors (Eichwalder, Hofmarcher: 11/2008). While the 2007 policy proposal largely reflected central government attempts to better balance hospital care utilization with ambulatory care provision, the current draft legislation additionally aims to incorporate claims from the EU level and other policy developments in Austria.
The creation of ambulatory care centres aims to:
To achieve this comprehensive set of goals the draft legislation for the creation of ambulatory care centres tries to reconcile the following principles on the European level as well as on the Austrian federal and "Länder" (federal states) level:
In addition to privately practicing doctors contracted to deliver services in solo-practices, the current regulatory framework permits cooperation between physicians by the creation of both joint practices ("Ordinations-/Apparategemeinschaft") and group practices ("Gruppenpraxen") only as open corporations (see for details Eichwalder, Hofmarcher: 11/2008). The associates must be authorized physicians or dentists and they are typically subject to unrestricted liability. The new draft legislation calls for a fundamental restructuring of group practices to become an additional pillar for ambulatory care. It is proposed that ambulatory care centres:
The need for action arose from requirements to harmonize rules for market authorization of ambulatory care providers through adapting respective legislation. Also, concerns are widespread about overcrowded hospital outpatient departments, which essentially should provide emergency care services only. In addition, the draft legislation proposes structural changes with respect to the monitoring of quality in the ambulatory care sector (see section on Adoption and Implementation).
In June 2010, the proposal passed the council of ministers ("Ministerrat") and will be discussed in the national assembly. The law is expected to be enacted in Fall 2010.
No easy market access for ambulatory care centres
The establishment of ambulatory care centres is subject to a strict examination of need in order to restrict market entry. The authorization scheme takes into account the decision of the ECJ which called for the same standards for market access. Market authorization should be in accordance with the respective regional supply plan (Regionaler Strukturplan Gesundheit - RSG) in addition to regional and central bodies involved in the process. But so far the proposed process is only applicable to newly set up ambulatory care centres. Existing group practices are already subject to a "location plan" (Stellenplan), which is also a form of restricted market entry and is administered on the regional level by the Physicians´ chamber and health insurance funds. An examination of need is also not required for elective services which fall outside the scope of health insurance reimbursement (e.g. plastic and cosmetic surgery).
Does the envisaged payment scheme add another hurdle for entry of ambulatory care centres?
While currently ambulatory care providers, regardless of whether they are contracted or not, have limited obligations to opening hours, ambulatory care centres will be required to have extended office hours. In this context, payment schemes are proposed to be adapted from an exclusively fee-for-service model ("Einzelleistungshonorierung") to include some form of capitation payment scheme ("Pauschalmodelle"). If the practice has multiple specialists a fixed payment scheme (e.g. per episode of care) ("Fallpauschalen") is proposed. However, the draft makes no reference to improved cost-effectiveness through better balance of capacity in ambulatory care, which is an explicitly stated objective in the proposal.
Ambulatory care is largely provided according to the benefit-in-kind principle ("Sachleistungsprinzip"), which gives priority to payment for services and not to payment in cash. Ambulatory care is mostly based on contractual relationships between health care providers such as self-employed physicians and health insurance funds. Insured persons can obtain benefits in-kind from:
The establishment of an ambulatory care centre as a limited liability company is conditional on forming a contract with the Federation of Social Health Insurance. The entity will have a joint contract. However, individual contracts between physicians and the health insurance fund are also possible. This is novel in the Austrian context as collective contracting prevails. An attempt to make contracting more flexible in the context of the 2008 health reform efforts failed (see Hofmarcher: 11/2008). Further, payment should be facilitated by electronic reporting and documentation of performance. Presently, efforts are under way to finalize a catalogue of outpatient services to use for doctors´ reimbursement in the future, especially for specialists. The envisaged payment model would also be novel in the context of reimbursement schemes currently in place.
| Degree of Innovation | traditional |
|
innovative |
| Degree of Controversy | consensual |
|
highly controversial |
| Structural or Systemic Impact | marginal |
|
fundamental |
| Public Visibility | very low |
|
very high |
| Transferability | strongly system-dependent |
|
system-neutral |
current previous
|
|||
The new model of ambulatory care delivery is rather innovative in the Austrian context. Up until now cooperation between physicians is only possible as group practices or joint practices as open corporations. The proposal offers in addition a new form of cooperation with the benefit of limited liability for physicians. It allows for all kinds of health professionals to be employed except for other physicians. Unlike the old proposal, not all health professionals can be shareholders, only physicians (Eichwalder, Hofmarcher: 11/2008). The main change for group practices as ambulatory care centres when compared to the status quo is that physicians have a limited liability which they did not have before.
Ambulatory care centres add an additional pillar of care delivery without taking advantage of multidisciplinary ownership, nor do they provide for carrier opportunities of doctors outside hospital. The degree of controversy likely remains high as many details are not yet apparent, (e.g. specifics regarding the payment model). While currently contracted providers may team-up by just notifying the respective bodies in charge, new ambulatory care centres will need to go through a complicated process of authorization which appears discouraging (see section on Adoption and Implementation). Because this procedure involves a large set of barriers, no structural or systemic impact is expected even though the possibility to set-up an ambulatory care centre in itself appears innovative. In addition, because of the redundancy of administration ("Verwaltungszweigleisigkeiten") in market authorization additional costs may arise.
| Idea | Pilot | Policy Paper | Legislation | Implementation | Evaluation | Change | ||
|---|---|---|---|---|---|---|---|---|
| Implemented in this survey? |
Overall comments from stakeholders about this proposal are cautious and often dismissive. The lack of a clear definition of the criteria of need and ambiguous delineation of what constitute outpatient clinics versus ambulatory care centres are the most frequently cited reasons for disapproval. While many welcome the effort to develop ambulatory care centres and acknowledge the need for improved capacity in ambulatory care, the outlined implementation path is highly criticised. In summary the main issues are (in brackets: the institution that raises the respective concern):
| Government | |||
| Ministry of Health | very supportive | strongly opposed | |
| Providers | |||
| Chamber of Physician | very supportive | strongly opposed | |
| Payers | |||
| Health Insurance Funds | very supportive | strongly opposed | |
| Patients, Consumers | |||
| Patients | very supportive | strongly opposed | |
| Private Sector or Industry | |||
| Chamber of Commerce | very supportive | strongly opposed | |
| International Organisations | |||
| European Court of Justice | very supportive | strongly opposed | |
current previous | |||
In 2007, an appeal was made to the European Court of Justice because a private entrepreneur was denied the establishment of a dental outpatient clinic in a federal state in Austria through a notification that this facility was not needed on the basis of the existing network of providers. The following decision from the ECJ revealed inconsistencies in issues of market entry of providers, coming from fragmented regulation regarding ambulatory care facilities where considerable overlaps in responsibilities exist.
First, outpatient clinics are considered hospitals and their establishment is in the hands of the federal states ("Länder") that implement the Federal Hospital Act (Krankenanstalten- und Kuranstaltengesetz) on the basis of provisions in the constitution. Thus, market authorisation for outpatient clinics is done on the level of the federal states ("Länder"). While regulations in this respect differ across all federal states, the central government secures some oversight via nation-wide provisions in capacity planning in the area of hospital care (see Hofmarcher: 15/2010).
Second, regulation of market entry for the medical profession is mandated on the federal level and is described in the Ärztegesetz ("Doctors' Law"). In particular, this law protects physicians´ free exercise of their profession ("Berufsausübungsfreiheit"). The conditions for joint practices and group practices are laid down in the Doctors' Law. Consequently, the establishment of physician-run limited liability companies would also be included in this law. While the network of contracted providers is developed on the basis of regional "location plans" the central government has no say in this respect. Further, "location plans" do not take into account other regional facilities or providers rendering outpatient care services. Only recently they were incorporated in federal planning in attempts to better balance capacity. However, even though the central government promotes nation-wide capacity plans, which should encompass all care sectors and should be developed on the regional level, progress in this respect lags behind the timeline (see Hofmarcher: 15/2010).
The decision of the European Court of Justice increases pressure to harmonize market authorization
In March 2009 the decision of the European Court of Justice (Case C-169/07, Case "Hartlauer HandelsgesmbH") was issued with respect to the appeal. In its decision the EJC determined that the different standards of examination of need between group practices and other outpatient clinics was unlawful and not compatible with the freedom of establishment. However, according to the ECJ an examination of need is acceptable in the area of health care where most member states aim at:
In acknowledging these goals the ECJ decided nevertheless that objectives as stated are not pursued in a consistent and systematic manner. In particular, it was ruled that because group practices generally offer the same medical services as outpatient clinics, they should be subject to the same market conditions as there is hardly any noticeable difference to patients between a group practice and an outpatient clinic. In particular, the ECJ determined that criteria for need must be stated precisely, made clear in advance, and the current unequal authorization standards for national providers should be made consistent. These amendments are considered crucially important as through the supremacy of European Law, providers from other EU countries could previously set up independent clinics without any prior authorization.
Austria accommodates European rulings but in doing so is anxiously defensive
As a result of the ECJ decision, the Austrian Hospital Act and other laws had to be adapted correspondingly. The main challenge regarding this ruling was to ensure that current Austrian jurisdiction concerning fragmented market authorization of ambulatory care providers could be kept, while at the same time just standards had to be administered according to the European ruling. The prevailing distinction between ambulatory care centres and outpatient clinics primarily relates to issues of professional and political oversight, which remained un-debated. The main differences between ambulatory care centres and outpatient clinics are:
In addition to fragmentation in entry regulation of ambulatory care providers, issues of corporate organisations of professionals are at stake and not resolved. For example, the Chamber of Physicians is the professional organization of physicians. Every physician is a member and pays a mandatory membership fee. A main function of the physicians´ chambers is to collectively contract with the social health insurance funds. They also maintain the register of physicians who are licensed to practice medicine in private practice.
On the other hand, the Chamber of Commerce - representing all businesses including corporations and small businesses - acts on behalf of private outpatient clinics including private ambulatory care centres. However, the proposal states that ambulatory care centres and their shareholders (which can only be physicians) should only be members of the Physicians´ Chamber. Thus, the proposed registration of ambulatory care centres with the Physicians´ Chamber is largely driven by power plays between those interest groups rather than by coordinated efforts to improve ambulatory care. And policy makers lack charisma to effectively mediate in this respect.
Better federal oversight for quality assurance through the back door of ambulatory care centres?
The draft proposal provides for more regulation with respect to quality in ambulatory care. While outpatient clinics and outpatient hospital departments are subject to strict rulings in the context of the Federal Hospital Act and corresponding regional legislation, quality monitoring and public surveillance in private ambulatory care is largely in the hands of provider organisations, namely the Chamber of Physicians (see Hofmarcher: 14/2009).
Proposed changes in this respect do not only concern ambulatory care centres but also contracted physicians. In this context it is proposed that the scientific advisory board of the Quality Institute, which is led by the Chamber of Physicians, should be re-established with greater federal oversight.
Hold
| Government | |||
| Ministry of Health | very strong | none | |
| Providers | |||
| Chamber of Physician | very strong | none | |
| Payers | |||
| Health Insurance Funds | very strong | none | |
| Patients, Consumers | |||
| Patients | very strong | none | |
| Private Sector or Industry | |||
| Chamber of Commerce | very strong | none | |
| International Organisations | |||
| European Court of Justice | very strong | none | |
current previous | |||
The process of authorisation will be overseen by the provincial governor (Landeshauptmann), who is the direct liaison with the federal administration. The Federation of Social Health Insurance, the Chamber of Physicians and the Chamber of Commerce must also comment on market authorization decisions. Authorization is also subject to national capacity guidelines laid out in the nation-wide supply plan (Österreichischer Strukturplan Gesundheit - ÖSG) and corresponding regional supply plans (RSG). The Federal planning institute "Gesundheit Österreich GmbH" or other consultancy is required to assess market authorization decisions on the basis of regional capacity needs. In addition, an assessment of need will be done on the level of the regional health platform. The final decision ("Bescheid") mandates the degree of care provision ("Versorgungsauftrag") and the range of services ("Leistungsspektrum").
Table 1: Current and future market authorization in ambulatory care
|
Regulatory |
Ambulatory care |
Market authorization |
Payment schemes* |
||||
|
Current |
Future |
Current |
Future |
||||
|
"Public laws" , e.g. Hospital acts |
Social Security Act Nation-wide (ÖSG) and Regional capacity plans (RSG) |
Outpatient departments in hospitals |
Regional market authorization in the context of hospital plans |
Flat rate per case plus subsidies from the hospital budget |
|||
|
Outpatient |
Regional market authorization |
Unified regional procedure with approval coming from central and state level bodies |
Fixed Budget or fee-for-service |
||||
|
"Professional laws" , |
Ambulatory |
---- |
---- |
Fee-for-service or capitation or both |
|||
|
Contracted |
Regional "location plans" |
Primary care: |
|||||
|
Source:AuthorsCompilation *Payment_models_differ_largely_across_Federal_States |
|||||||
* Payment models differ largely across Federal States (Länder)
In the future market authorization for ambulatory care centres and for
Outpatient clinics will need to follow a defined set of criteria and must comply with regional capacity plans (RSG) regarding:
It is proposed that the newly established ambulatory care centre is to visibly improve access to services especially in "underserved" areas. Hospital outpatient departments should especially be taken into account as ambulatory care centres are expected to substitute service provision from this setting through longer and flexible opening hours.
No monitoring or evaluation procedure has as of yet been described.
While the decision by the European Court of Justice on issues of market authorisation was eagerly awaited, the implementation of rulings proves difficult because of fragmented regulations for care provision. In attempts to accommodate both European standards and national peculiarities in regulating market authorization, the resulting draft proposal appears defensive especially in light of the stated objective to improve capacity in ambulatory care. Doubts on the effectiveness and particularly the cost-effectiveness of this policy must be raised:
First, ambulatory care centres face a double-barrier to market entry. Market authorization as envisaged will be hard to achieve by applicants because of a complex procedure involving regional and central bodies in addition to statutory stakeholders. Further, ambulatory care centres are to be paid either on a capitation or fee-for-service scheme while contracted solo-practitioners will be further paid largely on a fee-for-service basis. Fee-for-service remuneration and non-aligned payment schemes across key providers are considered to be detrimental for improved patient-centred care (e.g. Rittenhouse 2009, Swensen 2010). In addition, hospital outpatient departments are being paid yet with another scheme (see Table 1) generating incentives to adopt hospital case-rates for ambulatory care patients. Furthermore, the draft does not specify details regarding the new payment schemes for ambulatory care centres. It only refers to the need to prevent cost inflation likely occurring when fee-for-service schemes apply also to ambulatory care centres.
Second, the proposal lacks a clear vision as to how a coordinated architecture of health care sectors should be created to accommodate future health care needs, e.g. care provision for chronically ill people and to streamline existing capacity. For example, existing capacity in hospitals is increasingly used to treat ambulatory day care cases, which are paid with hospital case rates. While this may be a fair approach, these patients do not have a "medical home" and are classified as 0-day care cases or even 1-day care cases. While starting from a low level some years ago, the number of these patients has grown robustly in recent years and there are indications that these patients are often elderly and/ or patients with co-morbid conditions. If ambulatory care centres are increasingly taking in these patients, specific per-case payments on the basis of a respective catalogue (in preparation) should be applied capturing both the severity of the condition and the cost structure, which presumably would be different in ambulatory care centres compared to acute care hospitals.
Third, with the creation of ambulatory care centres it is hoped that out-of-hospital care provision will become more attractive to providers and provide a roof for currently "homeless" doctors. While labour demand in hospitals has been strong in recent years the growth of the number of ambulatory care doctors being awarded a contract was sluggish. This echoes diverging levels of activity with doctors outside hospital facing a rather constant case load with some exemptions. At the same time physician density has caught-up and is well above the OECD average largely reflecting high outflow of graduates from medical school where entry regulations have been weak until recently. Thus, waiting lists have built up for licensed doctors to be issued a contract ("network providers"). As a consequence many of these "homeless" licensed doctors now run a private practice. In order to secure the principle of free choice of doctors and the right of establishment for professionals, patients may see any provider and doctors are permitted to run private offices regardless of a contractual status. If patients see those "out-of-network" doctors without a social insurance contract ("Wahlarzt") they pay a market price at the point of delivery and are reimbursed in retrospect 80 percent of the fee that would have been charged if the treatment had been delivered by a contracted physician. These co-payments form a substantial and growing part of private spending on health. In 2008 private spending for "Wahlärzte" was on the order of 540 million Euros or amounted to 10 percent of total private health expenditure (excluding private health insurance).
Finally and in this context, in the current stage of implementation of the new law it is not possible to assess how many physicians will use the new limited liability structure to become their "roof-top." Rather, through the highly regulated market access, case growth in ambulatory care outside hospitals will likely remain low when compared to the hospital sector, especially since no payment model is in place to ensure an appropriate flow of funds to where patients are treated. Moreover, prohibiting other health care professionals except physicians from becoming shareholders of ambulatory care centres adds another barrier to improved patient-centered care. Finally, the proposal lags behind policy developments in Germany where ambulatory care centres (MVZ) may also employ other doctors. The potential of these centres has grown as employment of doctors rose considerably in recent years (Sachverständigenrat 2009). Thus, the draft legislation on ambulatory care centres appears to work against the goal of establishing a more balanced utilization of services, with better integration between inpatient and outpatient care. Care provision may even become more fragmented with additional administrative costs in addition to cost increases arising from non-aligned payment schemes with specialists still being predominately paid on the basis of fee-for-services.
| Quality of Health Care Services | marginal |
|
fundamental |
| Level of Equity | system less equitable |
|
system more equitable |
| Cost Efficiency | very low |
|
very high |
current previous
|
|||
Maria M. Hofmarcher, Bernadette Hawel
The authors are grateful to Leslie Tarver for providing excellent editorial support, and for many valuable comments received by various experts coming from:
Gesundheit Österreich GmbH
Ärztekammer (Chamber of Physicians)
Hauptverband der österreichischen Sozialversicherungsträger (Federation of Austrian Social Insurance Institutions)
Wirtschaftskammer (Chamber of Commerce)