INTRODUCTION T HE VA ST MAJORITY OF AMERICANS who die eachyear are elderly patients with a median age of 77 years, typically suffering from slowly progressive, chronic diseases. 1 Most Americans will have lived with an average of 2.2 chronic conditions for 17 years by the time of their death. 2 The effects of chronic conditions such as cardiovascular disease and diabetes are felt physically, emotionally, and financially and place the patient at greater risk of serious health complications and disability. 3,4 Our society's ability to afford health care depends heavily on our ability to control long-term care costs incurred at the end of life. In turn, cost control depends on our ability to manage chronically ill patients effectively. This paper discusses the unique advantages of managed care organizations (MCOs) in developing and financing innovative systems for managing long-term and end-of-life care, presents an innovative model of end-of-life care pioneered by one MCO, and suggests future recommendations.
UNMANAGED CARE: A NO-WIN SITUATIONCurrently, patients with a chronic disease experience fragmented care, with multiple specialists often separately managing care at various times and sites, typically with little communication among themselves. Patients and their families manage the transitions among various providers, disease specialists, financial systems, and care settings on their own. 5Of the roughly 2.4 million Americans who die each year, 75% are insured by Medicare at the time of their death. 6 Among these patients, approximately 50% of last-year medical costs are incurred in the last 60 days of life, and 40% in the last 30 days of life. 7 Despite older persons' preference to receive end-of-life care at home, 8 only 20% of deaths occur at home; most other deaths occur in hospitals (57%) and nursing homes (17%). 9Our current system for managing end-of-life care is dysfunctional. If we started anew, what would characterize "good" end-of-life care? Lynn and Schuster 10 and Cassel and Foley 11 have generated separate lists of key principles of care that reflect a reassuring degree of consensus. They strongly imply that a coordinated, interdisciplinary team approach is a prerequisite to achieving good end-of-life care. Such an approach is a hallmark of MCOs, and one reason they are now at the forefront of developing and financing improved models of end-of-life care.
MCOS: COORDINATING CARE ACROSS THE CONTINUUMThe fiscal structure of MCOs offers unique opportunities to develop and test innovative methods for managing end-of-life care. As capitated systems, MCOs have the financial and organizational flexibility to integrate all elements of health care-from physicians to financing-into a coherent whole. As Lynn et al. 5 note, "Advantages derived from managed care systems providing quality end-of-life care include coordinated care across delivery sites, interdisciplinary teams, in-