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MANAGED CARE January 2000. ©1999 MediMedia USA

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MANAGED CARE OUTLOOK

Quality doesn't have to be costly

According to Health Risk Management Inc., a consulting company, states with higher quality of care generally have lower per-capita health care costs. HRM's annual "Quality First" index includes 46 weighted quality indicators that consider what individuals, health care systems, and states do to affect health status and care, and the degree to which those efforts improve outcomes. One of the most compelling findings is that the top 10 states in quality had an average per-capita health care cost of $239 in 1999, 11 percent lower than the bottom 10 states' average of $268.

Top 10 states in quality			Lowest 10 states in quality
Rank	State	Per-capita cost	Rank	State	Per-capita cost
1	Minnesota	$228	49*	Mississippi	$255
2	Hawaii	$227	49*	Louisiana	$317
3	Wisconsin	$218	48	Arkansas	$248
4	New Hampshire	$235	47	Tennessee	$295
5	Vermont	$218	46	Oklahoma	$242
6	Massachusetts	$315	45	South Carolina	$231
7	Connecticut	$274	44	New Mexico	$223
8	Washington	$230	43	Alabama	$281
9	Maine	$221	42	Texas	$253
10	Iowa	$222	41	Kentucky	$253

* Tie.

SOURCE: QUALITY FIRST INDEX, HEALTH RISK MANAGEMENT INC., MINNEAPOLIS, 1999