Economist Ray Perryman says "Bring on the Super Nurses"

A great article referencing his study that Tx NPs are quoting for practice changes! Click here

Ray Perryman, Trib Board of Contributors: Bring on the super nurses 

RAY PERRYMAN 
Board of Contributors

Monday June 11, 2012 

The rising cost of health care is a concern for individuals, families, businesses, government entities and society as a whole. One possible solution: Advanced Practice Registered Nurses (APRNs). 

According to data of the Centers for Medicare & Medicaid Services, total health expenditures in 2009 reached $2.5 trillion, or some $8,086 per person. Health expenditures have also increased markedly as a percent of U.S. gross domestic product, from about 12.5 percent in 1990 to 13.8 percent in 2000 to 17.6 percent in 2009. 

These expenses are borne by employers who provide health coverage and patients and their families through out-of-pocket expenses, which have risen substantially over time. Health insurance companies are also affected, with expenditures notably higher in recent years. Outlays by Medicare and Medicaid are up dramatically, placing a strain on tight federal and state budgets. As the population ages, demographic shifts bring more eligibility for public programs, and access becomes more broadly available, the problem of the high cost of medical care and treatment will become increasingly difficult. Similarly, the shortage of skilled professionals is already significant, particularly in rural areas, and will only worsen in the coming years. 

Patient outcomes are, of course, of paramount importance. However, finding ways to increase efficiency without compromising the quality of care is crucial and, indeed, imperative. One proven strategy for both improving patient care and reducing costs is greater utilization of APRNs, including nurse practitioners, certified registered nurse anesthetists, certified nurse midwives and clinical nurse specialists. 

A number of empirical studies support the conclusion that greater utilization of APRNs can both improve patient outcomes and reduce overall health care costs. Many areas face shortages of primary care physicians; APRNs can help alleviate these problems. In fact, a recent study illustrated the critical shortage of physicians within the state — and it’s well known that Texas does not have sufficient residency openings to meet current and future needs. When APRNs are more efficiently utilized within the systems of health care provision, the economic benefits to the state are substantial. 

Greater use of APRNs and the resulting reduced health care expenditures would generate a total current impact that includes $16.1 billion in total expenditures and $8.0 billion in output (gross product) each year, as well as 97,205 permanent jobs in Texas. This economic activity also leads to additional tax receipts and cost savings for governmental entities, including $483.9 million to the state and $233.2 million to local government entities each year. This analysis was based on a conservative expansion of this practice, which is consistent with legislation expected to be filed in the upcoming legislative session. 

Dealing with rising health care costs is crucial to long-term prosperity. To the extent that regulatory frameworks prevent the most efficient provision of care in an appropriate and beneficial manner, they should be modified. Patient well-being is paramount, but empirical evidence demonstrates APRNs can be more fully utilized without compromising patient outcomes. And that can only facilitate a broader and more effective health care delivery model. 

Nationally known economist Ray Perryman is CEO of the Waco-based Perryman Group.