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Environmental Health

By Martin Hensher and Forbes McGain


doi: 10.1377/hlthaff.2020.01103
HEALTH AFFAIRS 39,
NO. 12 (2020): 2080–2087
©2020 Project HOPE—
A n a lysi s
The People-to-People Health
Foundation, Inc.
Health Care Sustainability Metrics:
Building A Safer, Low-Carbon
Health System
Martin Hensher (martin
.hensher@deakin.edu.au) is an ABSTRACT As understanding grows of the scale of health care’s
associate professor of health
systems financing and
environmental impacts, so too does interest in measuring and reporting
organization in Deakin on sustainability as a facet of health care system performance. This article
University’s Institute for
Health Transformation, in
examines important lessons from health care’s long experience with
Burwood, Victoria, Australia. performance and quality measurement and reporting that can be applied
Forbes McGain is a specialist
to the creation of health care sustainability metrics. Although some large
in the Department of health systems such as Kaiser Permanente have invested heavily in
Anaesthesia and the
Department of Intensive Care environmental stewardship, in the US the focus of health care
at Western Health, in sustainability measurement and reporting has typically been on corporate
Melbourne, Victoria, Australia.
social responsibility and climate risk disclosure. The ability of health care
organizations to generate data on and control environmental impacts can
be limited by legacy infrastructure and complex supply chains. However,
just as in other domains of performance, health care sustainability
measurement and reporting must proceed from a clear conceptual
framework and statement of purpose. Measurement must reflect strategic
goals, instead of letting goals become dictated by ease of measurement.
Health system leaders now need to set clear and compelling sustainability
goals, invest in internationally comparable metrics by which to measure
their success, and embed them in their core business.

T
he health sector’s contribution to gest that the health care sector is responsible
damaging and degrading the natu- for between 7.9 percent5 and 9.8 percent3 of na-
ral environment has become in- tional greenhouse gas emissions in the US. Some
creasingly clear in recent years. A countries are now moving to include their health
2019 estimate places health care’s care systems in their plans to meet their commit-
global carbon footprint at 4.4 percent of the ments under the Paris Agreement on climate
world’s total greenhouse gas emissions, whereas change mitigation. For example, the UK recently
health expenditure accounts for some 10 percent announced its commitment for the National
of global economic output.1 Health care gener- Health Service (NHS) in England to become car-
ates 1–5 percent of total global environmental bon “net zero” by 2040.6
impacts in the domains of greenhouse gas emis- Interest is therefore growing in how health
sions, particulate matter, nitrogen oxides, sulfur care organizations and systems might better
dioxide, increased malaria risk, nitrogen runoff, measure and report on their sustainability and
and use of scarce water.2 Pollution from health environmental performance.7 Health care sus-
care directly damages human health, with esti- tainability reporting aims to build a safe, low-
mates suggesting that it causes a substantial bur- carbon health system through the use of effective
den of disease.3,4 National-level estimates sug- metrics.We consider the growing need for better

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reporting of the environmental impacts of health concerns the structural context (for example,
care in light of lessons from health care quality physical, organizational, and institutional) of
improvement and performance reporting. care delivery; process, or the actions undertaken
by all parties; and outcomes, or the ultimate ef-
fects on patients and populations. Years of expe-
Health Care Performance And rience in applying these approaches have yielded
Quality Improvement important lessons on how best to design and
Evolution And Approaches Although “perfor- implement quality and performance measure-
mance” measurement and reporting in health ment systems. Tension exists between the use
care may cover various aspects of health services of performance measures for external assess-
(for example, patient access, costs and efficien- ment and for internal quality improvement pur-
cy, and so on), in recent decades there has been poses8 and between the approaches most suited
an explosion in the use and reporting of mea- to each of the four pathways of change.11 Perfor-
sures of clinical and service quality.8 Two princi- mance and quality information is a public good
pal approaches to the use of performance and that will not evolve spontaneously without active
quality measures in improving health care have stewardship and guidance by governments and
been identified:9 using quality indicators as sum- that requires careful investment and attention.10
mative measures of performance for purposes of System-level performance measurement re-
external accountability or using them as forma- quires a clear conceptual framework that not
tive mechanisms to support internal processes of only covers all major domains of the health sys-
quality improvement. There are two basic goals tem but also aligns with its objectives, integrates
for any performance measurement instrument with its information technology systems and
in health care: promoting accountability and im- data collection infrastructure, captures high-
proving health system performance.10 Perfor- priority but hard-to-measure areas, and is de-
mance and quality measurement serves many signed for international comparability.10
stakeholders with different needs: governments,
regulators, funders, purchasing organizations,
provider organizations, physicians, patients, The Environmental Sustainability Of
and citizens. Objectives for reporting on health Health Care
care performance and quality have included ac- Purpose, Context, And Governance The tech-
countability and transparency (to the public, nical ability to measure the environmental im-
health care funders, and regulators), supporting pacts of health care has also grown rapidly. A
improvement within organizations, aligning the fast-growing research literature explores the car-
objectives of stakeholders and “norming” de- bon footprint of different aspects of health ser-
sired behaviors and priorities, supporting and vices ranging from global and national health
spurring improvement through provision of systems,1 hospitals and hospital services,13 and
comparative or benchmarking data across or- anesthetic gases14 to individual devices and con-
ganizations, and incentivizing improvement sumables.15,16 More broadly, a recent study of the
and value through linking payment to perfor- global environmental footprint of health care2
mance. Reporting performance measures may for the first time estimated worldwide green-
lead to change and improvement through four house gas emissions, particulate matter, NO2
different pathways:11 change, in which providers and SO2 emissions, malaria risk, nitrogen to wa-
use information to improve their own perfor- ter pollution, and the use of scarce water by na-
mance; selection, where users or purchasers tional health systems. Yet this literature is heavi-
switch providers based on information; pay- ly skewed toward greenhouse gas emissions;
for-performance, where providers are financially although several other environmental harms
rewarded for superior measured performance; (for example, pollution from the release of phar-
and reputational damage, or “naming and sham- maceuticals into the environment) are signifi-
ing” poor performers. Measurement and report- cant,2 analysis of them lags far behind.17 More-
ing are two distinct activities: Not everything over, the availability of technical measures
that is measured should necessarily be reported. (especially those developed for research pur-
Experience And Lessons Although a vast lit- poses) should not be confused with their suit-
erature now exists on health care quality and ability for use as performance reporting metrics.
performance measures, data sources, and statis- A health care sustainability metric needs to fulfill
tical techniques, perhaps the most influential functions analogous to those laid out above for
conceptual approach to measurement remains health care quality measures if it is to be useful,
one of the oldest: Avedis Donabedian’s typology which many technically exact measures might
of measurement across structure, process, and not be capable of supporting meaningfully.
outcome measures.12 Donabedian’s framework A number of different approaches to environ-

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Environmental Health

mental reporting in health care already exist in- Lagasse argue that this level of participation in
ternationally, reflecting underlying differences benchmarking and sustainability improvement
between health systems and the purpose that activities shows a growing level of commitment
environmental reporting seeks to fulfill (see on- on the part of health care organizations.25
line appendix table 1 for a summary).18 Publicly Mandated Reporting One of the
Climate Risk Disclosure Corporate climate- most comprehensive approaches to health care
related risk disclosure has grown rapidly in re- environmental sustainability reporting in the
cent years as key investors have demanded great- world is NHS England’s new Sustainable Health
er disclosure of corporations’ vulnerability to a Dashboard.26 This dashboard provides perfor-
range of climate change risks. Some large health mance data for every NHS provider, clinical
care providers and insurers and many pharma- commissioning group, and region in England
ceutical, medical device, and supply firms al- on a range of indicators in the domains of gov-
ready participate in voluntary disclosure initia- ernance; carbon; resources, water, and waste; air
tives such as the Carbon Disclosure Project.19,20 pollution; plastics; and adaptation. Unified ac-
The Bank for International Settlements’ Finan- countability and funding mechanisms make it
cial Stability Board established a Task Force on possible for NHS England to mandate collection
Climate-Related Financial Disclosures21 recom- and reporting of these data, with central invest-
mending that organizations in all sectors of ment and support provided to establish this sys-
the economy voluntarily undertake routine dis- tem. More typical of international efforts are the
closure of their climate risk governance, strategy more modest reporting requirements for public
and risk-management activities, and relevant health services in the Australian state of Victoria.
metrics and targets. The International Monetary All public health services are required under
Fund has recently gone further, recommending state government funding policy27 to report a
the development of global, mandatory disclo- standardized set of environmental impact mea-
sures on material climate change risks for cor- sures,28 either in their annual report or on a
porations in all sectors.22 This approach seeks standalone sustainability report.29 Measures in-
explicitly to make organizations identify their clude energy use, greenhouse gas emissions, wa-
vulnerabilities to climate risk in the widest ter use, and waste generation, both totals and
sense, not just to report on carbon dioxide– rates (for example, per square meter of floor
equivalent (CO2e) emissions. space or per patient separation or admission).
Corporate Social Responsibility Report- Clearly, the UK and Australian health care sys-
ing US health care may be behind the curve in tems display deep structural differences from the
reporting on sustainability. Emily Senay and US health care system, yet their experience is
Philip Landrigan have described the extent to significant, not least because there have been
which large US health care corporations under- calls for sustainability metrics to be integrated
take sustainability reporting through their cor- into Medicare’s Quality Payment Program,25
porate social responsibility reports or activities;7 shifting health care sustainability from a private
they found that health care lagged substantially corporate concern into one of public policy. Per-
behind other economic sectors in terms of the haps the most salient lesson from the English
proportion of corporations (whether for profit and Victorian experience is that progress on
or nonprofit) publishing sustainability data. health care sustainability reporting has grown
This is important because in the US health care over time, supported by an organic web of legis-
setting, most attention to date has focused on the lation, strategy, and preparatory activities and
inclusion of environmental impacts within cor- driven by strategic purpose.30 Appendix figure 1
porate social responsibility reporting by large briefly summarizes some of this supporting leg-
health care organizations7 and on corporate par- islation and regulations in the case of Victoria,18
ticipation in sustainability initiatives such as the showing how the specific public health care re-
Healthier Hospitals Initiative.23 Various organi- porting framework grows out of the state’s Cli-
zational arguments (for example, the absence of mate Change Act, which itself is motivated by the
shareholder pressure on health care organiza- Paris Agreement’s international commitment to
tions) have been suggested to explain this find- net zero emissions by 2050.
ing.7 Others have suggested the existence of a Organizational Level And Units Of Re-
form of “moral offset”—that is, health care or- porting The specific objectives of performance
ganizations’ obviously beneficent healing mis- reporting have important implications for select-
sion may reduce their sense of obligation to ing measurement and reporting approaches.
undertake corporate social responsibility or sus- Health care quality reporting, for example, re-
tainability reporting.24 Yet more than 1,200 US quires quite different approaches at different
hospitals had enrolled in the Healthier Hospitals levels, ranging from whole health systems down
Initiative by 2018.25 Jodi Sherman and Robert to individual services, wards, or clinicians. A

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whole health service might generate internal purchased (Scope 1), operating room energy use
benchmarking reports or performance league (Scope 2), and the use of certain supplies (Scope
tables across multiple units or services, whereas 3). The importance of Scope 3 emissions through
public accountability, pay-for-performance, or procurement (particularly of pharmaceuticals)
corporate social responsibility reporting might has been repeatedly emphasized,30 and clinical
be more likely to take place at the level of the services (and even key individual clinicians)
whole organization. Health care environmental might exert significant control over procure-
reporting must consider systematically and logi- ment decisions over specific clinical supplies.
cally the most appropriate approach to the scope If control can reasonably be exercised, then
and level of reporting, driven by a clear strategy. the inclusion of Scope 3 emissions from procure-
ment could be measured and reported at the
service level, not just the institution level. Yet
Scope Of Measurement And Control the measurement of Scope 3 emissions involves
Measuring greenhouse gas emissions for perfor- the complex aggregation of many products and
mance purposes is complicated by the differing services across the whole supply chain and pre-
ability of individual health care providers or supposes sourcing relevant supplier data.
teams to affect emissions incurred along the en- Electricity is typically the main component of
tire value chain of health care products. Follow- Scope 2 emissions, and most health services pur-
ing the guidance of the Greenhouse Gas Proto- chase their electricity from a local utility grid.
col,31 greenhouse gas emissions are divided into Health services could install their own renewable
three categories: Scope 1, Scope 2, and Scope 3 generation capacity or seek to purchase renew-
CO2e emissions. Each Scope refers to categories ably generated electricity from alternative grid
of emissions emitted directly by the health ser- suppliers. The sheer size of the health sector
vice (Scope 1), indirectly from purchased energy (17 percent of US gross domestic product)32
(Scope 2), or indirectly from other points in the means that it has the potential to exert signifi-
supply chain (Scope 3). Exhibit 1 describes the cant leverage on energy providers if health sys-
allocation of emissions across these Scopes. tems act in concert. However, the generation
The ability to influence different CO2e emis- source of the local electricity grid is frequently
sions Scopes varies significantly between and not directly under an individual hospital’s con-
within health care organizations. For example, trol. In Australia in 2019, only 14 percent of elec-
an individual clinical service (for example, car- tricity generation in Queensland was from re-
diology) may have little direct influence over newable sources, rising to 23.9 percent in
Scope 1 or 2 emissions, but they might have Victoria; in contrast, fully 95.6 percent of elec-
significant opportunity to influence decision tricity generation in Tasmania was from renew-
making over the purchasing of clinical equip- able (hydro) sources.33 Thus, a hospital in
ment and drugs (Scope 3 emissions). The anes- Tasmania that was identical in every other re-
thesiology division might be expected to have spect to a counterpart in Queensland would re-
considerable say in the choice of anesthetic gases cord Scope 2 emissions that were six times lower

Exhibit 1

Sources of greenhouse gas emissions from the health care system, by Scope
Greenhouse gas
emissions Scope Definitions and covered activities
Scope 1 Direct emissions from combustion of fossil fuels by the health service to provide energy, including health facility operation (natural
gas, liquefied petroleum gas, diesel), fuel use by leased or owned corporate and patient transport vehicle fleet, refrigerants, and
medical gases
Scope 2 Indirect emissions from consumption of purchased energy generated upstream from the health service, including electricity supply,
purchased steam, purchased chilled water, and district heating and cooling
Scope 3 Indirect emissions that are a consequence of the health service but are not directly controlled by it, including upstream: capital
works; purchased or leased equipment; purchased consumables, devices, and pharmaceuticals; and purchased services (for
example, linen, pathology, data centers); upstream and downstream: buildings leased from private sector (energy use), business
travel, staff and visitor transport, emergency and nonemergency patient transport, and embedded retail operations; and
downstream: aids and appliances for home-based care and waste management

SOURCES Victorian Health and Human Services Building Authority; Victoria Department of Health and Human Services. Sustainability in Healthcare [Internet]. Melbourne:
Department of Health and Human Services; 2019 [cited 2020 Oct 19]. Available from: https://www2.health.vic.gov.au/hospitals-and-health-services/planning-
infrastructure/sustainability. NOTE Greenhouse gas emissions in Scope include carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and
sulfur hexafluoride.

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Environmental Health

simply by the good fortune of its location. Clarity tween 2007 and 2017 and water use by 21 percent
on what health care sustainability reporting between 2010 and 2017.35 These reductions were
seeks to achieve is essential, as is a clear purpose achieved in no small measure through ongoing
on the relative priority assigned to improvement central support over a decade for national policy
or accountability goals. If the purpose of report- design, local implementation, and consistent
ing on greenhouse gas emissions performance is measurement practices, driven by the national
to capture a “like for like” comparison of factors NHS Sustainable Development Unit. Similarly,
under the control of the health service, statistical Kaiser Permanente has achieved significant suc-
adjustment for the renewables content of the cess over a long period (including a 29 percent
local electricity supply would be appropriate; reduction in greenhouse gas emissions between
doing so would be analogous to using risk or 2008 and 2018)36 and has built on past momen-
case-mix adjustments in clinical measures to tum by establishing explicit strategic goals sup-
control for differences in risk in underlying ported by performance measurement. Tonya
populations. If the purpose of reporting is to Boone37 provides an extremely useful set of case
drive improvement, statistical adjustment for studies on how individual US health care organ-
such factors would not be appropriate, in order izations have used local performance measure-
to sharpen incentives for health services to de- ment to support their sustainability efforts.
carbonize their energy supply. More broadly, exhibit 2 explores some potential-
ly important areas for the future development of
health care sustainability metrics. The exhibit
Priorities For Developing Health suggests a number of areas that should be high
Care Sustainability Reporting on the agenda of those considering how better to
The most important lesson from the history of develop systemwide sustainability reporting to
health care quality reporting is not technical but support both accountability and improvement.
concerns the essential need for reporting to align Exhibit 2 emphasizes the importance of
with and support the strategic goals of the health achieving better integration of health care envi-
system.10 Perhaps the best example of strategi- ronmental sustainability reporting with report-
cally aligned environmental reporting to date ing on quality and performance. The intimate
lies in the explicit nesting of sustainability goals relationship between poor-quality care, waste,
and reporting within the 2019 NHS Long-Term overuse, and poor environmental outcomes is
Plan.34 This approach builds on a track record of becoming increasingly clear.38 Meanwhile, the
systematic gains, with the English NHS having moral and public health imperatives for the
reduced carbon emissions by 18.5 percent be- health care system to minimize the harm to hu-

Exhibit 2

Future directions and priorities for developing health care sustainability metrics
Target areas Areas to prioritize
Greenhouse gas emissions Clearer framing of strategic purpose and goals for reporting at national, state, health system, and organizational
levels and of health care system contributions to overall emissions reduction targets; assessment of highest-
priority areas for advancing Scope 3 emissions measurement for both reporting and improvement purposes
Health-damaging pollutants Identification and quantification of those health care environmental impacts that have the most severe impacts on
human health to guide prioritized development of measures of harm reduction
Reducing overuse “Double duty” measures that capture the improvements to patient outcomes and environmental impacts from
reducing health care overuse
Simplified Life Cycle Invest in the development of simplified, low-cost Life Cycle Assessment methods and capabilities, allowing rapid and
Assessment methods economical expansion of Life Cycle Assessment to support health care environmental impact measurement at all
levels
Pharmaceutical pollution and Development of system- and local-level measurement techniques to capture the scale and impacts of pharmaceutical
waste pollution, including manufacturing, distribution, use, and wastage
Composite measures Investigate the feasibility and design of composite measures or indices to capture multiple dimensions of health care
environmental impact (for example, greenhouse gases, air pollution, chemical pollution, resource depletion)
Absolute versus relative Balanced metric sets that support improved efficiency (relative measures) while also reducing overall environmental
measures impacts (absolute measures) to support “absolute decoupling” of health care from environmental degradation
Single-use versus reusable Rigorous and comprehensive measures of environmental impacts of single-use versus reusable consumables, drawing
consumables on experiences from COVID-19

SOURCE Authors’ analysis.

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man health it causes through pollution are un- tient administration systems, and clinical data
ambiguous.39 The idea that environmental sus- registries are now available. Life Cycle Assess-
tainability should be incorporated as an explicit ment techniques (the mainstay for undertaking
aspect of quality is not new. The Royal College of detailed assessment of environmental impacts at
Physicians argued that sustainability should be the service or product level) are demanding in
included as a domain of quality in 2011;40 others terms of expertise and are relatively expensive;
have suggested that sustainability is a key dimen- environmental impact data across the health
sion of the population health component of the care value chain cannot yet be generated organi-
“Triple Aim” or even that it should be incorpo- cally. Building management systems, procure-
rated as a “Quadruple Aim.”41 The recent Sustain- ment and inventory management systems, fleet
ability in Quality Improvement framework management systems, and pharmacy systems all
develops the integration of environmental sus- represent sources for automated environmental
tainability as a core element of quality and value reporting data, but their full use will require
in health care.42 Yet these approaches appear to careful, systematic investment in design, stan-
have gained traction primarily in the UK, and the dardization, and verification. System leaders
link to sustainability seems not yet to have been and policy makers need to work together to
accepted as “core business” by the health care achieve and invest in this standardization.
quality improvement community elsewhere. Avoiding Perverse Outcomes Measurement
and reporting have been essential components
of management and public policy since the nine-
Emerging Lessons For Health Care teenth century. Much accumulated experience
Sustainability Reporting exists regarding what can go wrong in efforts
Consistency And Comparability The develop- to measure performance in many sectors. Most
ment and adoption of measures of health care important, truisms along the lines of “you can’t
quality has evolved in a diverse and disparate manage what you can’t measure” form only
landscape over the course of several decades. part of the story. Equally true is the aphorism
The mandatory reporting approaches emerging attributed to Gen. James Willbanks (referring
in the UK and other jurisdictions with largely to the Vietnam War): “If you can’t count what
public health care systems show great promise, is important, you make what you can count im-
not least because common and consistent stand- portant.”44 There is no intrinsic reason why sus-
ards for data and reporting can be enforced cen- tainability metrics will not run the same risk;
trally. Yet nonmandatory approaches (such as health care systems have proved themselves
corporate social responsibility reporting or more than capable of “hitting the target but miss-
Healthier Hospitals) can also deliver substantial ing the point.”45 The potential for unintended
benefits, especially if stakeholders come togeth- consequences exists in all aspects of health care
er to work toward using consistent and compa- improvement.46 It is important to include hard-
rable standards and measures. At the same time, to-measure health care priority areas,10 ensuring
national and international comparability is im- that measurement focuses on greenhouse gas
portant. The World Health Organization has emissions and on other environmental impacts,
played an important role in harmonizing data such as pharmaceutical pollutants.
standards and classifications in key measure- Political Context Although this article has
ment infrastructure, most notably the Interna- highlighted successful examples of sustainabili-
tional Classification of Diseases and the system ty reporting in public health care systems, con-
of national health accounts. Internationally com- straints of ideology, climate denialism, and ob-
parable, validated, and standardized sustainabil- fuscation affect many nations’ public policies.
ity indicators need to be agreed to and imple- Despite significant achievements by several Aus-
mented by all nations.43 Whether or not the US tralian states and territories, the authors en-
remains a member, the World Health Organiza- countered unwillingness at the federal level to
tion is best placed to lead this work. incorporate sustainability during the design and
Measurement Challenges An important negotiation of the current Australian Health Per-
technical challenge for sustainability and mea- formance Framework.47 The feasibility of incor-
surement involves measurement techniques, porating environmental reporting into US feder-
and especially the extent to which it is possible al health care programs and mandates also may
to directly measure key environmental impacts remain highly politically dependent.
or whether estimation techniques must be used.
The rapid growth in health care quality and per-
formance measurement has been possible be- Conclusion
cause of burgeoning digital health care data. Vast We have discussed how sustainability reporting
quantities of data from health care records, pa- builds on successes and experience in health

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Environmental Health

care performance and quality measurement. prove health care quality through measurement.
There are always two possible aims for reporting Given the urgency of achieving real improve-
in health care systems—accountability and ments in sustainability, health systems must
improvement—but different measures and ap- learn rapidly from the best evidence from de-
proaches may achieve one of these aims better cades of quality measurement and reporting.
than the other. For a performance measurement Large-scale change must be achieved in a small
reporting system to be meaningful or effective, it fraction of the time that has elapsed since
requires a clear conceptual framework and pur- Donabedian began studying quality improve-
pose. The choice of appropriate technical mea- ment. To make good this deficit, health system
surement approaches must proceed from this leaders need to focus urgently on the following
purpose, instead of allowing measurement avail- actions: setting out clear and compelling strate-
ability to drive and distort goals. Avoiding undue gic goals for health care sustainability (perhaps
focus on more easily measurable greenhouse gas guided by the NHS Net Zero approach); devis-
emissions at the expense of other environmental ing, adopting, and implementing international-
impacts is integral. Maximum impact will be ly comparable, standardized metrics (in partner-
achieved by clearly demonstrating how measures ship with other nations and health systems) that
of population health, clinical quality, and envi- are driven by these goals; and firmly embedding
ronmental sustainability complement and rein- these goals and measures within the mainstream
force one another. infrastructure of quality improvement, perfor-
Health care sustainability measurement and mance, and accountability. ▪
reporting are two decades behind efforts to im-

The views expressed in this article are


those of the authors and do not
necessarily reflect the positions of their
employers, past or present. No funding
was received for this work.

NOTES
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