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ITALY although the degree of evolution is varied across regions. Some regions are also trying to set up disease management programs based on the chronic care model. The most recent Pact for Health, signed in July 2014, is a significant step toward care integration (see below): all regions must establish “primary care complex units” (Unità Complesse di Cure Primarie) involving GPs, specialists, nurses, and social workers. Given that, traditionally, Italian GPs work in solo practice, shifting to this new organizational arrangement will require considerable effort. To further promote integration and adoption of multidisciplinary teams, medical homes are being encouraged in some regions. (Tuscany and Emilia-Romagna have invested considerable resources in activating and promoting medical homes. In Emilia-Romagna, for example, there are currently 62 medical homes providing multispecialty care to approximately 1 million people.) What is the status of electronic health records? The New Health Information System has been implemented incrementally since 2002 to establish a universal system of electronic records connecting every level of care. It provides information on the services, resource use, and costs, but does not cover all areas of health care; in particular, primary care is not covered, while hospital, emergency, outpatient specialist, residential and palliative care, and pharmaceuticals are. It currently contains administrative information on care delivered, as medical information appears more difficult to gather. No unique patient identifier exists at the national level. A core component of the New Health Information System is the nationwide clinical coding program known as “bricks,” one of the most mature elements of Italy’s developing electronic health program. It aims at defining a common language to classify and codify concepts; at sharing methodologies for measuring quality, efficiency, and appropriateness of care; and at allowing an efficient exchange of information between the national level and regional authorities. Some regions have developed computerized networks to facilitate communication between physicians, pediatricians, hospitals, and territorial services and to improve continuity of care. These networks allow automatic transfer of patient registers, services provided, prescriptions for specialist visits and diagnostics, and laboratory and radiology test outcomes. A few regions also have developed a personal electronic health record, accessible by patients, that contains all patient medical information, such as outpatient specialty care results, medical prescriptions, and hospital discharge instructions. Personal electronic health records should provide support to patients and clinicians across the whole process of care but diffusion is still limited. There is also a slow movement from paper to electronic prescriptions. By the end of 2014, 80 percent of all prescriptions (drugs and specialist care) were to be issued electronically, but only five regions declared that they were able to reach the goal on time. How are costs contained? Containing health costs is a core concern of central government, as Italy’s public debt is among the highest in industrialized nations. Fiscal capacity varies greatly across regions. To meet cost containment objectives, the central government can impose recovery plans on regions with health care expenditure deficits. These identify tools and measures needed to achieve economic balance: revision of hospital and diagnostic fees, reduction of the number of beds, increased copayments for pharmaceuticals, and reduction of human resources through limited turnover. The Agency for Regional Health Services, in collaboration with the Ministry of Health, has authority to conduct health technology assessments and implement its findings at the regional level, but these are not yet formalized or undertaken systematically. Few regional health technology assessment agencies currently exist, and their primary function is to evaluate individual technologies. Assessments are not mandatory for new or referred 104 The Commonwealth Fund

ITALY procedures and devices. However, reference prices for medical devices and pharmaceuticals are set according to cost-effectiveness studies carried out by the National Committee for Medical Devices and the National Drugs Agency. Furthermore, the National Pharmaceutical Formulary bases coverage decisions in part on clinical effectiveness and cost-effectiveness. Prices for reimbursable drugs are set in negotiations between government and the manufacturer according to the following criteria: cost-effectiveness where no effective alternative therapies exist; comparison of prices of alternative therapies for the same condition; costs per day compared with those of products of the same effectiveness; financial impact on the health system; estimated market share of the new drug; and average prices and consumption data from other European countries. Prices for nonreimbursable drugs are set by the market. What major innovations and reforms have been introduced? Because of the regionalization of the health system, most innovations in the delivery of care take place at the regional rather than the national level, with some regions viewed as leaders in innovation. Significant innovations can be found in: • Pharmaceuticals: Both the National Drugs Agency and the regions are particularly active in coordinating guidelines and rules to promote appropriate and cost-effective prescribing. • Hospital care: Various innovations have been introduced concerning the overall organization, management of operations (e.g., planning of surgical theaters and delivery of drugs), and health information technology (e.g., electronic medical records, automation of administrative and clinical activities). In August 2012 the parliament passed a law aimed at curbing and rationalizing public expenditure (the so-called spending review). The law promoted the prescription of generic drugs, cut the hospital bed ratio from 4 per 1,000 people to 3.7, and reduced public financing of the National Health Service by between €900M (USD1.2B) and €2.1B (USD2.8B) annually between 2012 and 2015. Many of the requirements of the law are still in the process of being implemented and effects have not yet been evaluated. In 2012, the government approved a decree (named after Renato Balduzzi, who was health minister at that time) to reorganize health care at the regional level, with the introduction of teams of primary health care professionals to ensure 24-hour coverage; to update health care fees; to restructure governance of hospitals and local health units; to revise the list of reimbursable pharmaceuticals; and to introduce health technology assessment as a tool for renegotiating the price of less effective medicines. Evaluations of the impact of both laws are not yet available as their implementation is still under way. The July 2014 Pact for Health defines funding (between €109B [USD143.4B] and €115B [USD151.3B] annually) for the years 2014 to 2016. In return, regions make explicit commitments to: • Reduce hospitalizations through appropriate use of hospitals, with progress toward home care and the creation of community hospitals offering subacute care. • Reorganize primary care: All regions will have to establish primary care complex units (Unità Complesse di Cure Primarie) (as described in the section on care integration) to replace all other forms of general practice networks (base group practice, network group practice, and advanced group practice). • Revise hospital and specialist care fees in line with health inflation and with the underlying structure of health care costs. • Revise copayments for outpatient specialist care to promote more equitable access. Copayments currently represent a barrier for disadvantaged sectors of the population. • Strengthen the electronic records system. International Profiles of Health Care Systems, 2015 105

ITALY<br />

procedures and devices. However, reference prices for medical devices and pharmaceuticals are set according<br />

to cost-effectiveness studies carried out by the National Committee for Medical Devices and the National Drugs<br />

Agency. Furthermore, the National Pharmaceutical Formulary bases coverage decisions in part on clinical<br />

effectiveness and cost-effectiveness. Prices for reimbursable drugs are set in negotiations between government<br />

and the manufacturer according to the following criteria: cost-effectiveness where no effective alternative<br />

therapies exist; comparison of prices of alternative therapies for the same condition; costs per day compared<br />

with those of products of the same effectiveness; financial impact on the health system; estimated market share<br />

of the new drug; and average prices and consumption data from other European countries. Prices for<br />

nonreimbursable drugs are set by the market.<br />

What major innovations and reforms have been introduced?<br />

Because of the regionalization of the health system, most innovations in the delivery of care take place at the<br />

regional rather than the national level, with some regions viewed as leaders in innovation. Significant<br />

innovations can be found in:<br />

• Pharmaceuticals: Both the National Drugs Agency and the regions are particularly active in coordinating<br />

guidelines and rules to promote appropriate and cost-effective prescribing.<br />

• Hospital care: Various innovations have been introduced concerning the overall organization, management<br />

of operations (e.g., planning of surgical theaters and delivery of drugs), and health information technology<br />

(e.g., electronic medical records, automation of administrative and clinical activities).<br />

In August 2012 the parliament passed a law aimed at curbing and rationalizing public expenditure (the so-called<br />

spending review). The law promoted the prescription of generic drugs, cut the hospital bed ratio from 4 per<br />

1,000 people to 3.7, and reduced public financing of the National Health Service by between €900M (USD1.2B)<br />

and €2.1B (USD2.8B) annually between 2012 and 2015. Many of the requirements of the law are still in the<br />

process of being implemented and effects have not yet been evaluated.<br />

In 2012, the government approved a decree (named after Renato Balduzzi, who was health minister at that<br />

time) to reorganize health care at the regional level, with the introduction of teams of primary health care<br />

professionals to ensure 24-hour coverage; to update health care fees; to restructure governance of hospitals<br />

and local health units; to revise the list of reimbursable pharmaceuticals; and to introduce health technology<br />

assessment as a tool for renegotiating the price of less effective medicines. Evaluations of the impact of both<br />

laws are not yet available as their implementation is still under way.<br />

The July 2014 Pact for Health defines funding (between €109B [USD143.4B] and €115B [USD151.3B] annually)<br />

for the years 2014 to 2016. In return, regions make explicit commitments to:<br />

• Reduce hospitalizations through appropriate use of hospitals, with progress toward home care and the<br />

creation of community hospitals offering subacute care.<br />

• Reorganize primary care: All regions will have to establish primary care complex units (Unità Complesse<br />

di Cure Primarie) (as described in the section on care integration) to replace all other forms of general<br />

practice networks (base group practice, network group practice, and advanced group practice).<br />

• Revise hospital and specialist care fees in line with health inflation and with the underlying structure<br />

of health care costs.<br />

• Revise copayments for outpatient specialist care to promote more equitable access. Copayments currently<br />

represent a barrier for disadvantaged sectors of the population.<br />

• Strengthen the electronic records system.<br />

International Profiles of Health Care Systems, 2015<br />

105

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