Economics of End Stage Renal Disease
The Economics of End-Stage Renal Disease
Karen Perion
Walden University
The Economics of End-Stage Renal Disease
With the amount of people needing healthcare on the rise, an aging population, and more people with chronic illnesses it is no surprise our healthcare costs are going up. Healthcare spending is increasing at a fast rate with projections approaching $3.5 trillion in 2013 (Mayes, 2005). “Chronic kidney disease, or CKD, impacts the lives of more than 26 million patients in the United States with millions of others at an increased risk of developing the disease” (Sullivan, 2010, p. 45). End stage renal disease (ESRD) has significant health consequences and high-cost treatment due to the seriousness of the illness. CKD and ESRD are very costly to treat, with nearly 25 percent of the Medicare budget being used to treat people with these diseases ("CKD," 2013).
Medicare is one of the big players of reimbursement for those suffering from ESRD. “Administered by the federal government, Medicare originally targeted people 65 and over, but was quickly expanded to cover people with disabilities and severe kidney disease” (Kovner & Knickman, 2011, p. 54). Reimbursement for those with ESRD receiving any form of dialysis; hemodialysis (HD), peritoneal dialysis (PD), continuous ambulatory peritoneal dialysis (CAPD) or continuous cycling peritoneal dialysis (CCPD), uses Medicare as its payer. In 1973, health care changed drastically for those suffering from ESRD. Regardless of age, every citizen would be entitled to coverage under Medicare Part B; after an initial waiting period (Sullivan, 2010). The program instituted for ESRD by the government, paid for by tax dollars, has been scrutinized due to its growing mortality rates and high economic burden; but on the other hand, applauded for its success.
The Reimbursement for HD is based on a thrice a week structure. PD is performed every day and reimbursement for this treatment is identical to HD;
Karen Perion
Walden University
The Economics of End-Stage Renal Disease
With the amount of people needing healthcare on the rise, an aging population, and more people with chronic illnesses it is no surprise our healthcare costs are going up. Healthcare spending is increasing at a fast rate with projections approaching $3.5 trillion in 2013 (Mayes, 2005). “Chronic kidney disease, or CKD, impacts the lives of more than 26 million patients in the United States with millions of others at an increased risk of developing the disease” (Sullivan, 2010, p. 45). End stage renal disease (ESRD) has significant health consequences and high-cost treatment due to the seriousness of the illness. CKD and ESRD are very costly to treat, with nearly 25 percent of the Medicare budget being used to treat people with these diseases ("CKD," 2013).
Medicare is one of the big players of reimbursement for those suffering from ESRD. “Administered by the federal government, Medicare originally targeted people 65 and over, but was quickly expanded to cover people with disabilities and severe kidney disease” (Kovner & Knickman, 2011, p. 54). Reimbursement for those with ESRD receiving any form of dialysis; hemodialysis (HD), peritoneal dialysis (PD), continuous ambulatory peritoneal dialysis (CAPD) or continuous cycling peritoneal dialysis (CCPD), uses Medicare as its payer. In 1973, health care changed drastically for those suffering from ESRD. Regardless of age, every citizen would be entitled to coverage under Medicare Part B; after an initial waiting period (Sullivan, 2010). The program instituted for ESRD by the government, paid for by tax dollars, has been scrutinized due to its growing mortality rates and high economic burden; but on the other hand, applauded for its success.
The Reimbursement for HD is based on a thrice a week structure. PD is performed every day and reimbursement for this treatment is identical to HD;
References: Besley, M., & Watson, D. (2008). ESRD - Finite or infinite treatment options. CANNT Journal, 18, 52-54. Chronic Kidney Disease. (2013). Retrieved from http://www.healthypeople.gov/2020/topicsobjectives2020/overview.aspx?topicId=6 Dash, T., & Mailloux, L. U. (2013). Ethical issues in the care of the patient with end-stage renal disease. Retrieved from http://www.uptodate.com/contents/ethical-issues-in-the-care-of-the-patient-with-end-stage-renal-disease Dor, A., Pauly, M. V., Eichleay, M. A., & Held, P. J. (2007). END-STAGE RENAL DISEASE AND ECONOMIC INCENTIVES: THE INTERNATIONAL STUDY OF HEALTH CARE ORGANIZATION AND FINANCING. [Working Paper Series]. Retrieved from http://www.nber.org/papers/w13125. Kovner, A. R., & Knickman, J. R. (Eds.). (2011). Jonas & Kovner’s Health Care Delivery in the United States (10th Ed.). New York, NY: Springer Publishing Company. Mayes, G. (2005). Highlights of the Kidney Disease Economics Conference. Retrieved from http://www.medscape.org/viewarticle/500406_print Sullivan, J. D. (2010). End Stage Renal Disease Economics and the Balance of Treatment Modalities. Journal of Service Science & Management, 3, 45-50.