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Article #26: Best Practices For Hospital Peer Review

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When done properly, peer review is an based upon medical evidence and improve
important process that helps hospitals the fairness of the process for both
and their doctors ensure consistent, high physicians and the hospital.
quality patient treatment. Hospitals can An IRO can match doctors with the right
identify at-risk physicians; physicians specialist expertise to effectively
can help improve quality of care for review sensitive cases and reach an
patients. Why is this process so unbiased determination. Reviews are
difficult? It's simple - hospital conducted by board-certified physicians
politics, economic advantage and in active practice, who are usually
personalities. located in a different state than the
The current physician peer review system, physician being reviewed. Hospitals pay
created by Congress in 1986 through HCQIA only for the reviewing physician's time
legislation, was intended to promote at pre-determined hourly rates.
higher quality patient healthcare. Because these specialists are already on
Unfortunately, Congress did not foresee board, reviews can be completed in much
that hospital peer review actually puts less time and at significantly lower
physicians into an environment where costs. Peer reviews are conducted using a
political, economic and personality standard reporting format, and the
conflicts can easily render the process typical turn-around time is less than 21
ineffective. Nor did it foresee that days. Since IROs review thousands of
hospitals would sanction doctors for cases annually, per case review costs are
speaking up on behalf of patients kept to a minimum.
regarding quality of care concerns. An IRO can give peer review the high
In the hospital environment, peer review priority and timely consideration it
is considered an ugly task that is just deserves -- without impacting the
one more action item for a busy medical hospital staff or tarnishing a hospital's
staff and is easily pushed to the bottom reputation.
of the priority list. Often it just Using an IRO for objective peer review
doesn't get done. Why? may be one of the best solutions for
Physicians on peer review or quality helping hospitals get back to the intent
management committees too often find of the law - improving healthcare quality
themselves in conflict of interest for patients. An IRO can also help reduce
situations. They compete for the same costs, avoid expensive litigation,
limited geographic pool of patients and enhance hospital reputation and protect
for professional recognition within a JCAHO certification.
very narrow specialty. There may also be Peer Review Best Practices
personality conflicts with the physician To ensure an evidence-based outcome for
under review or pressure by their peer reviews, hospitals should consider
hospitals not to seriously scrutinize a this nine step process:
fellow physician who has stature in the 1. Develop a culture of accountability
medical community. The tight-knit social within the hospital.
and professional relationships found in a 2. Make sure that the peer review process
hospital environment can lead to bias and is well defined, understood, accepted and
reluctance to pass judgment on adhered to by all.
associates. This reluctance tends to lead 3. Watch for "sentinel events." Bring
to unusually long delays in resolving patterns of recurring or clustered
critical quality management issues. By problems to management's attention in a
the time a critical situation is actually timely way.
dealt with, the costs and risks to a 4. Assure that questions posed during the
hospital or group can be catastrophic. process are precise, and that responses
Backlash are precise as well, including the hard
The breakdown in a hospital's quality questions, with rationale and associated
management system can be very damaging. guidelines.
Inadequate peer review can result (and 5. Make sure that each peer review case
has) in negative consequences for is reviewed by a "like" specialistwho is
hospitals and hospital groups, such as: unbiased and has no potential for
- Negative publicity conflict of interest inrendering an
- High profile lawsuits opinion.
- Multi-million dollar fines 6. Make sure the peer review committee
- Management shake-ups meets monthly and that cases and replies
- Loss of investor confidence are distributed, reviewed and responded
- Damage to physicians' careers and to in a timely manner.
practices 7. Make sure there is a re-review of each
- Joint Commission on Accreditation of case after the subject physician input
Healthcare Organizations (JCAHO)sanctions has been received.
and loss of accreditation 8. As much as possible, conduct all
- Scrutiny by state and federal agencies reviews in a non-accusatory
and other public organizations. andprofessional format.
These negative events, combined with 9. Systematically send your most
rising consumer frustration with the sensitive peer review cases out to an
healthcare system, make it increasingly Independent Review Organization.
imperative that hospitals pay close Choosing the Right IRO
attention to their quality management and Choosing the right IRO as a partner for
adopt best practices whenever possible. hospital peer review can be as confusing
Peer Review as a Risk Management Tool as the process itself. Here are some
A well-executed peer review process can simple questions to ask in the selection
easily avoid such negative events by process:
using best practices in risk management. 1. Is the IRO URAC-accredited? - There
The earlier a physician performance issue are dozens of companiesthat claim to
is detected and dealt with, the lower the offer medical review services. There are
costs and potential negative consequences only a fewthat are actually accredited by
to the hospital and the physician. the American Accreditation
Basing effective peer review on medical HealthCare Commission, also known as
evidence and adhering to the intent of URAC. By selecting an IROwith URAC
the law -- to improve the quality of accreditation, the hospital partner with
patient care -- helps discover, highlight a standards-based organization can
and deal with quality problems quickly deliver the quality and objectivityneeded
and efficiently. Issues surrounding for the peer review process.
internal politics, competition, and 2. What types of doctors are on staff at
personality conflicts should be the IRO? - It's extremelyimportant to
considered when setting up a peer review work with an IRO that has doctors on
committee. staff trained tomake fast decisions, who
Involving Outside Parties in Peer Review are board certified and still in
The most effective quality management activepractice.
process involves using a "neutral" 3. How deep is the IRO specialty panel? -
outside party in addition to the The IRO under considerationshould be able
hospital's own peer review committee. to deliver the specialists needed on a
This neutral party can review sensitive moment'snotice. Not only do these
cases where there is a potential conflict physicians need to be in the
of interest. Hospitals with the need for samespecialty, but also from the same
an outside case review have often turned type of institution. A heartspecialist
to affiliated hospitals or searched for from Los Angeles may not be the right
"like" specialists through personal physician to reviewa related case coming
connections. While this is an effective from a rural hospital in Iowa.
method for solving the problem, it has 4. What are the standard turn-around
its own set of challenges: times? - The IRO selectedshould have a
- How do you quickly locate the right strong track record of turning around
specialist? reviews quicklyand accurately. Find out
- How do you convince them to take time what the average turn-around times areand
to do a peer review? what process the IRO offers for expedited
- How long do you have to wait to get it reviews. A standardof 21 days or less for
done? hospital peer review should be the
Unless you have a well-developed process minimum.
and pre-arranged agreements with 5. How accessible are the IRO physicians?
affiliates or physicians to perform peer - Many IROs offer basicpeer review
review, it can be very costly and time services. The best IROs, however, are the
consuming to arrange for this each time ones thattruly act as partners to the
it's needed. hospital peer review committee andmake
IROs: A Cost Effective Solution for themselves fully accessible to the
Hospital Peer Review physicians under review. Bybecoming a
Many hospitals, today, are turning to part of the process, the IRO can truly
Independent Review Organizations (IRO) to act as the neutralthird-party and help
aid in fixing their peer review process. keep the relationships between all
An IRO serves as an objective third party parties intact.
that can provide hospital peer reviews






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