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HSM 494 Case Study

Case Study #3 Data Driven Outcomes
Oakdale Physicians Group is

a general medicine practice with 5 Board Certified Family Practice

physicians, 1 nurse practitioner, 4 registered nurses and one practice

manager and a receptionist. The practice is in an urban area of Atlanta,

The practice is considering making a change from the

traditional insurance (including Medicare, third party payers)

reimbursement-based practice to a Direct Primary Care (DCP)or Concierge

Practice model. After consulting with other physician groups across the

state, they find that the amount that is being charged by other groups

ranges from $600 to $1500 a month.
They did some research and

found a study which found that different populations respond to

healthcare cost in generally different ways. The study found that people

with no illnesses and disabilities, generally the young and healthy,

would not spend $700 on healthcare for an entire year let alone a

month, and most feel they would not waste so much money on premiums

when the chance of needing expensive healthcare treatments is so small.

However, the study found that older, sicker people think that $700 per

month is a great deal, as most of them spend far more than this amount

on healthcare. For the older population it seems like a great deal.

making the decision to switch to the new delivery care model, they need

to gather some data because it is the data that will be the deciding

factor toward the change. The outcome of their decision is driven by the

So now the practice must decide whether to switch to the DPC model AND how much to charge the patients each month.
Describe in detail

four different kinds of data sets (or kinds of data or types of data)

that they will need to gather to make the decisions and how having this

data will influence their decision. e.g. If you were going to move to

Dallas, TX , you would want to know the cost of apartments because you

want to make sure that your salary will support that cost.

how they will gather this data. In other words, what kinds of documents

does the practice have that can be mined for the information? Where can

they look for the information?
If the company makes this change, how might adverse selection influence their success.

Once you have gathered your data, what will be how will the data

results influence the practice decision as to private practice or DCP?

In other words, what results will lead you to a decision one way or the

Once you have implemented the decision, what would you anticipate that you would do to monitor the outcome of your decision?