Maggie Mahar, a healthcare fellow at the Century Foundation in Washington, D.C., contends the funds should have been kept in reserve until experts could better advise doctors and hospitals about which systems would work best for their specific practices, with an eye toward ensuring that the records could be linked.
“Instead, you’ve got this sort of laissez-faire chaos of people out there selling stuff, some of which is good, some of which isn’t, to people who don’t know much about what they’re buying. And that has created real problems,” Mahar says. “Some places have very good EHR in place, up and running. Other places have bought stuff that they’d now like to throw out the window and have to replace.”
$2.8 Billion for Community Healthcare Services
SHM has long supported efforts to address the nation’s PCP shortage. In October, federal officials announced that they had made some headway on that front by nearly tripling the size of the National Health Service Corps. The loan-repayment and scholarship program grants $60,000 awards to providers in exchange for two-year commitments to medically underserved communities. In 2008, about 3,600 clinicians, mainly PCPs, were enrolled in the corps. This year, the number surpassed 10,000, boosted by $300 million in stimulus money and $1.5 billion from the ACA.
As a matter of healthcare policy, then, the program has arguably been a big success. From a purely economics angle, however, Dr. Feyrer suggests the program’s effect is likely to be more modest, because the award acts like a two-year salary boost for doctors who would likely still be employed, just somewhere else.
Conversely, infrastructure projects like the building of hospitals and community centers could have generated a fairly robust economic boost if they wouldn’t have been completed in the absence of stimulus money. A May 27 report by the Connecticut General Assembly’s Office of Legislature Research, “Health Care Centers and Providers as Economic Drivers,” attempted to quantify the return on stimulus-funded investments in the state.
Among its conclusions, the report found that roughly $11.4 million in improvement grants yielded an estimated economic impact of $18.6 million. Similarly, $16.2 million in funds to renovate existing health centers or increase space through construction of new or expanded services sites yielded an impact of $26.3 million.
$10 Billion to the NIH
A big chunk of the National Institutes of Health’s monies went toward highly rated research projects stuck in backlog. As Dr. Feyrer points out, such funding is less likely to have a short-term stimulus effect. For a quick economic shot in the arm, the main question is whether funds will help create jobs that otherwise would not have existed. Over the long haul, however, Feyrer agrees that increased medical research can yield economic rewards.
Similarly, Mahar says comparative effectiveness research (CER) could provide sizable long-term returns. “Every penny we’re spending on comparative effectiveness research should, down the road, pay off in a big way,” she says. Already, stimulus-funded studies are beginning to emerge from such efforts as a Seattle-based research consortium focused on objectively analyzing cancer diagnostic tools, screening tests, and treatments.
Such research is not without its detractors, who have criticized what they view as government intrusion into personal healthcare decisions. CER also produces winners and losers, making it more politically vulnerable. “No one wants to see their revenue stream cut, even if their overpriced device is no better than other devices,” Mahar says.
Bottom Line
So has healthcare-related stimulus spending really paid off? If early indicators seem mixed, future economic studies may provide more clarity—to a point. After all, Feyrer says, no economist can know what a world without a stimulus would have looked like, meaning the arguments won’t end anytime soon.