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Why Were ACGs Developed?

 


The Johns Hopkins ACG (originally "Ambulatory Care Group") Case-Mix System grew out of clinical observations made by Barbara Starfield, MD, MPH. Research by Dr. Starfield and her colleagues in the early 1980s examined the relationship between morbidity or "illness burden" and health care services utilization among children in managed care settings. Dr. Starfield theorized that children using the most health care resources (in other words, children with the highest health care expenditures) were not those with a single chronic illness, but rather children with multiple, seemingly unrelated conditions. To test her hypothesis, she grouped illnesses within pediatric HMO populations into five discrete categories:

  • Minor illnesses which are self-limited if treated appropriately, e.g., the flu, or chicken pox,
  • Illnesses which are more major but also time limited if treated appropriately, e.g., a broken leg or pneumonia,
  • Medical illnesses which are generally chronic and which remain incurable even with medical therapy, e.g., diabetes or cystic fibrosis,
  • Illnesses resulting from anatomical problems that are generally not curable even with adequate and appropriate intervention, e.g., cerebral palsy or scoliosis, and
  • Psychosocial conditions, e.g. behavior problems or depression.

Dr. Starfield's research supported her hypothesis: namely, clustering of morbidity is a better predictor of health services resource use than the presence of specific diseases. This finding forms the basis of the ACG system; it remains the fundamental concept that differentiates ACGs from other case-mix adjustment methodologies.