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Maximizing APCD's Reach in the Healthcare Industry

These databases can be useful for various things, such as seeing patterns in low-value treatment. 

Maximizing APCD's Reach in the Healthcare Industry

By

Healthcare Business Review | Friday, April 28, 2023

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Healthcare stakeholders rely on all-payer claims databases for planning their strategies, so it's critical to use them to the fullest extent possible.


FREMONT, CA: To fully realize the promise of all-payer claims databases (APCDs) to offer healthcare professionals and policymakers a plethora of data, governments must solve several gaps and difficulties in data-gathering techniques. APCDs, which are both public and commercial data repositories, are where health claims and encounter data are kept. These databases can be useful for various things, such as seeing patterns in low-value treatment.


Given the lack of federal action, state policymakers are under growing pressure to address the unaffordable cost of healthcare. States are trying to better understand their involvement in healthcare spending and to develop innovative solutions to the problem of rising healthcare costs. They achieve this, for example, by creating and utilizing state-based APCDs.


Issues: Key American populations are included in APCDs, leaving policymakers needing the data on around one-third of state inhabitants. The research highlights many significant issues, including financing concerns and data shortages. APCDs often contain Medicare Advantage, Medicaid, and individual market insurance. Sometimes, data from Medicare's fee-for-service program is also included. Data from the Federal Employee Health Benefits Program (FEHB) and Veterans Health Administration (VHA) and most self-insured and federally regulated plans are often omitted. States have different needs for data gathering standards and access criteria, and there are no general federal standards for APCD procedures and designs. The second issue with data collecting affects APCDs. Due to the absence of standardization, it might be difficult for states and healthcare stakeholders to make comprehensive judgments. Funding is a clear impediment to these initiatives. Since APCD agencies often get funding from state general funds, long-term planning is challenging because of how frequently their budgets fluctuate.


Solutions: These obstacles may annoy health plans and other healthcare stakeholder leaders but also present four possibilities. One obvious potential is the spread of APCDs throughout the 32 states and the District of Columbia that do not now have them. The absence of APCDs in these states creates difficulties, particularly when analyzing cross-state and national patterns using APCD data. 


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