1. Idea 8: Increasing R&D
How can we leverage existing federal and grant funds to grow research and development, especially in technology that reduces cost and improves quality, as well as expand metro Detroit’s life science sector?
Marianne Udow-Phillips, Director
Center for Healthcare Research & Transformation

2. Michigan Health Care Expenditures
Source: CHRT Calculations based on National Health Expenditure Projections, CMS Office of the Actuary

3. Michigan Opportunity Affordable Care Act
$5 million for the design, implementation, and evaluation of models in FY2010
$10 billion for Center for Medicare and Medicaid Innovation-initiated activities, FY and each decade after
Patient Centered Outcomes Research Institute funded at $10 million in FY2010 and expect to grow to $500 million by FY2013
U-M North Campus Research Complex.
During fiscal year 2009, U-M spent $1.01 billion on research and development, the highest spending public university

4. Spending on Backs, U.S. & MI, 2007
An Example of What Can Be Done
Hospital spending on back disorders alone:
$26 billion in the U.S.
$819 million in Michigan
Spinal fusion was the 3rd costliest procedure in both the U.S. and Michigan
$26 billion in U.S.
$836 million in MI
BCBSM spending on diagnostic radiology
$763 million dollars in 2006
72 percent of PGIP imaging was high tech imaging
Source: CHRT issue brief: Cost Burden of Disease, January 2010

5. Geographic Variation in CT Scans
An Example of What Can Be Done
State average: 1.01/1,000 adult BCBSM members
Highest hospital referral regions (HRRs)
Marquette 2.27
Petoskey 1.47
Saginaw 1.43
Lowest HRRs
Muskegon 0.79
Ann Arbor 0.73
Lansing 0.64
Source: CHRTBook: Health Care Variation in Michigan, 2010

6. Geographic Variation in Back Surgery
An Example of What Can Be Done
State average: 1.78/1,000 adult BCBSM members
Highest HRRs
Petoskey 2.58
Saginaw 2.46
Marquette 2.40
Lowest HRRs
Detroit 1.49
Ann Arbor 1.33
St. Joseph 1.23
Source: CHRTBook: Health Care Variation in Michigan, 2010

7. Community Spine Project
An Example of What Can Be Done
The Need
Expensive imaging for back pain is unnecessary but often used
The Experiment
Use an interactive video game called “Back Quack” and community marketing to educate patients about their back pain and appropriate tests, and to help physicians with language to use when talking about back pain.
Overall Goal
Reduce MRIs and CT Scans in a community through innovative education of patients and physicians.
Projected over the next several years
(an update to our 1st issue brief including projectio