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Healthcare's High-Cost Traps
Los Angeles Times
By Stella Fitzgibbons
Thursday, June 17, 2010


http://insider.calpers.ca.gov/apps/paof/news/default.asp?startDate=&endDate= javascript:doPrint();

As a hospital-based doctor, I am one of the people responsible for the country's ever-escalating cost of healthcare. And I can tell you that the new healthcare plan will do nothing to restrain me.

There is enormous pressure on healthcare providers to continue practicing the most expensive medicine in the world. To resist that pressure, we need some help from policymakers.

Consider the case of a man I'll call Mr. A. At the age of 80, he is admitted to intensive care after a huge stroke. He also has pneumonia and kidney failure. He is too sick to tell us his views on aggressive care at the end of life, but his family is happy to fill the void. They insist we use every tool at our disposal to prolong his life, despite brain scans making it clear that he will never again be able to walk, talk or feed himself. The total bill for the last month of life? Many tens of thousands of dollars.

Or contemplate Mrs. B's case. She arrives at the ER with shortness of breath. Tests find iron deficiency anemia. The most likely cause, based on her history, is an ulcer -- probably a benign one. We can perform an upper-GI X-ray, do a blood test for a bacterial infection that commonly causes ulcers, and send her home with pills. Or we can opt for more precise, and far more expensive, tests in which a specialist examines her innards with a fiber-optic scope and takes tissue samples. In rare cases, this procedure catches something an X-ray can't. When presented with the options, the patient chooses the scope. The result? She spends an unnecessary night in the hospital, has $1,000 or more of tests and goes home with the same diagnosis and the same medicines she would have if we'd done the far less expensive X-ray.

And that's not all. Once patients like Mrs. B are diagnosed, they often insist on being prescribed the ulcer medicine they saw last week on a TV ad, which is likely to be a new (and expensive) medication rather than one of the reliable drugs that are older and cheaper.

Both of these patients are composites of people we see at the hospital every day, and they demonstrate why it will be so hard to rein in healthcare spending. Americans have spent the last several decades hearing that all you have to do is be a little assertive to get top-of-the-line treatment. They have had prescription coverage through their health insurance for so long that they have trouble understanding why I won't prescribe a convenient Z-Pack of antibiotics (at a cost of $60 or so) instead of amoxicillin, which they have to remember to take three times a day (at a cost of about $4). Websites and magazines tell them that if the doctors say a condition is untreatable, they should shop around for a specialist, or bully the doctor into trying an experimental treatment and the insurance company into paying for it.

Healthcare rationing is already in place, of course, for uninsured people. If they qualify for care in public systems like the one in Houston's Harris County, where I live, it takes weeks to get through the administrative process and longer still to get an appointment at a clinic. And if a patient needs a specialist, that will mean another wait, which can lead to life-threatening delays in diagnosis and treatment. Medicaid (and soon Medicare) patients also face rationing of a sort, in that they often can't find doctors willing to treat them.

Paradoxically, even as costs are rising, hospitals and doctors are finding their work to be less and less profitable. Even the best insurance plan won't cover the entire cost of Mr. A's hospital stay these days, and Mrs. B's HMO may deny coverage for even a one-night hospital stay. Doctors who accept patients admitted from the ER are often working for free or paid a small subsidy by the hospital, and those who see uninsured or Medicaid patients in their offices are unlikely to recoup enough to cover their overhead for the visits.

Some efforts are being made to control costs. Hospitals keep an eye on "unnecessary days," and medical personnel are becoming experts on "cost-effective care." But the savings of such efforts are insignificant compared with what we spend on futile care at the end of life, or expensive tests and treatments that lead to better outcomes in only a tiny fraction of cases.

Even though President Obama's healthcare plan will expand the number of people with insurance, it won't change the reality that we cannot afford to give every patient and family all they want, or to provide four-star medicine when the three-star version is almost as likely to succeed. Decreasing payments for services will only force hospitals to close and doctors to stop accepting new patients.

Unless someone comes up with a rational program for deciding healthcare priorities, U.S. healthcare is going to become too expensive for any but the rich -- and for members of Congress. Don't we deserve better?
 
Unless someone comes up with a rational program for deciding healthcare priorities, U.S. healthcare is going to become too expensive for any but the rich --

Good article, nothing new, but still a decent read. Perhaps a little easier for the general public to digest than some earlier efforts. The inherent problem with prioritizing health care in this country is that any mention of doing so results in things like this. We couldn't even propose that Medicare pay for end of life counseling. We couldn't even peel back recommendations for routine mammography without causing an uproar (despite support by some prominent women's health organizations). I'm afraid the only thing that will stop Americans from overconsuming is when there is nothing left to consume.
 
Link to original article please 😀

I'll look for it. It was sent to me as a body message.

Good article, nothing new, but still a decent read. Perhaps a little easier for the general public to digest than some earlier efforts. The inherent problem with prioritizing health care in this country is that any mention of doing so results in things like this. We couldn't even propose that Medicare pay for end of life counseling. We couldn't even peel back recommendations for routine mammography without causing an uproar (despite support by some prominent women's health organizations). I'm afraid the only thing that will stop Americans from overconsuming is when there is nothing left to consume.


True, certainly nothing new, but a nice primer for some of those who may not know. Nice links also.
 
When my wife was pregnant the doctor had us get 7 ultrasounds even though there were only minor complications, all just because the insurance would cover it and she wanted to cover her butt.
 
Good article, nothing new, but still a decent read. Perhaps a little easier for the general public to digest than some earlier efforts. The inherent problem with prioritizing health care in this country is that any mention of doing so results in things like this. We couldn't even propose that Medicare pay for end of life counseling. We couldn't even peel back recommendations for routine mammography without causing an uproar (despite support by some prominent women's health organizations). I'm afraid the only thing that will stop Americans from overconsuming is when there is nothing left to consume.


Every time you post, you have a new awesome icon 🙂

Part of the problem is shallow news sources. Journalism is an industry, not an altruistic endeavor, so the major news sources pump out grossly oversimplified copy and even that is a bit too complex for the average person. So the timing of the mammogram and the CT reduction guidelines led people to think that it was all Obama's doing, the first harbinger of "rationing" and death panels, and no one really bothers to investiage further. SDN is not immune to it...there are STILL people here who think that the 21% Medicare cuts were part of the HCR package, just because of the horrible timing.
 
Idea of healthcare as a right rather than a good or service to pay for + lack of tort reform = conditions described in this article.

Not a bad article, but as was said, nothing new.
 
Good article, nothing new, but still a decent read. Perhaps a little easier for the general public to digest than some earlier efforts. The inherent problem with prioritizing health care in this country is that any mention of doing so results in things like this. We couldn't even propose that Medicare pay for end of life counseling. We couldn't even peel back recommendations for routine mammography without causing an uproar (despite support by some prominent women's health organizations). I'm afraid the only thing that will stop Americans from overconsuming is when there is nothing left to consume.

Or making them pay for it. But that isn't included in all the "hope" and "change" going around.
 
When my wife was pregnant the doctor had us get 7 ultrasounds even though there were only minor complications, all just because the insurance would cover it and she wanted to cover her butt.

Of course she did. If she didn't get all those ultrasounds and that minor complication somehow became a major one, you could have sued her.
 
Healthcare's High-Cost Traps
Los Angeles Times
By Stella Fitzgibbons
Thursday, June 17, 2010




As a hospital-based doctor, I am one of the people responsible for the country's ever-escalating cost of healthcare. And I can tell you that the new healthcare plan will do nothing to restrain me.

There is enormous pressure on healthcare providers to continue practicing the most expensive medicine in the world. To resist that pressure, we need some help from policymakers.

Consider the case of a man I'll call Mr. A. At the age of 80, he is admitted to intensive care after a huge stroke. He also has pneumonia and kidney failure. He is too sick to tell us his views on aggressive care at the end of life, but his family is happy to fill the void. They insist we use every tool at our disposal to prolong his life, despite brain scans making it clear that he will never again be able to walk, talk or feed himself. The total bill for the last month of life? Many tens of thousands of dollars.

Or contemplate Mrs. B's case. She arrives at the ER with shortness of breath. Tests find iron deficiency anemia. The most likely cause, based on her history, is an ulcer -- probably a benign one. We can perform an upper-GI X-ray, do a blood test for a bacterial infection that commonly causes ulcers, and send her home with pills. Or we can opt for more precise, and far more expensive, tests in which a specialist examines her innards with a fiber-optic scope and takes tissue samples. In rare cases, this procedure catches something an X-ray can't. When presented with the options, the patient chooses the scope. The result? She spends an unnecessary night in the hospital, has $1,000 or more of tests and goes home with the same diagnosis and the same medicines she would have if we'd done the far less expensive X-ray.

And that's not all. Once patients like Mrs. B are diagnosed, they often insist on being prescribed the ulcer medicine they saw last week on a TV ad, which is likely to be a new (and expensive) medication rather than one of the reliable drugs that are older and cheaper.

Both of these patients are composites of people we see at the hospital every day, and they demonstrate why it will be so hard to rein in healthcare spending. Americans have spent the last several decades hearing that all you have to do is be a little assertive to get top-of-the-line treatment. They have had prescription coverage through their health insurance for so long that they have trouble understanding why I won't prescribe a convenient Z-Pack of antibiotics (at a cost of $60 or so) instead of amoxicillin, which they have to remember to take three times a day (at a cost of about $4). Websites and magazines tell them that if the doctors say a condition is untreatable, they should shop around for a specialist, or bully the doctor into trying an experimental treatment and the insurance company into paying for it.

Healthcare rationing is already in place, of course, for uninsured people. If they qualify for care in public systems like the one in Houston's Harris County, where I live, it takes weeks to get through the administrative process and longer still to get an appointment at a clinic. And if a patient needs a specialist, that will mean another wait, which can lead to life-threatening delays in diagnosis and treatment. Medicaid (and soon Medicare) patients also face rationing of a sort, in that they often can't find doctors willing to treat them.

Paradoxically, even as costs are rising, hospitals and doctors are finding their work to be less and less profitable. Even the best insurance plan won't cover the entire cost of Mr. A's hospital stay these days, and Mrs. B's HMO may deny coverage for even a one-night hospital stay. Doctors who accept patients admitted from the ER are often working for free or paid a small subsidy by the hospital, and those who see uninsured or Medicaid patients in their offices are unlikely to recoup enough to cover their overhead for the visits.

Some efforts are being made to control costs. Hospitals keep an eye on "unnecessary days," and medical personnel are becoming experts on "cost-effective care." But the savings of such efforts are insignificant compared with what we spend on futile care at the end of life, or expensive tests and treatments that lead to better outcomes in only a tiny fraction of cases.

Even though President Obama's healthcare plan will expand the number of people with insurance, it won't change the reality that we cannot afford to give every patient and family all they want, or to provide four-star medicine when the three-star version is almost as likely to succeed. Decreasing payments for services will only force hospitals to close and doctors to stop accepting new patients.

Unless someone comes up with a rational program for deciding healthcare priorities, U.S. healthcare is going to become too expensive for any but the rich -- and for members of Congress. Don't we deserve better?

i am prob wrong about this but i am wondering how are doctors paid in this country? ist it precedure based?
 
Or making them pay for it. But that isn't included in all the "hope" and "change" going around.


Americans spend more on healthcare per capita than any other country. I really don't see the logic in this statement. We have the highest healthcare costs and highest healthcare spending of any country - BY FAR - and the solution is to make things MORE expensive?
 
Americans spend more on healthcare per capita than any other country. I really don't see the logic in this statement. We have the highest healthcare costs and highest healthcare spending of any country - BY FAR - and the solution is to make things MORE expensive?

RC fail? I meant making people that utilize the services more responsible. Insurance will cover a large portion of healthcare costs, causing most people to view their healthcare as "free". Having some "skin-in-the-game" would certainly help people to re-evaluate their usage.
 

No, your statement was genuinely ambiguous.

Slack3r said:
I meant making people that utilize the services more responsible. Insurance will cover a large portion of healthcare costs, causing most people to view their healthcare as "free". Having some "skin-in-the-game" would certainly help people to re-evaluate their usage.

What you are describing is a problem inherent to all system that involve third party payors: moral hazard. Malcolm Gladwell wrote a nice little piece on the topic back in 2005 (he references the seminal RAND Corportation studies from 40 years ago). Bottom line: shifting the expense burden to patients decreases utilization of unecessary care, but it also decreases utilization of necessary care (which can have a host of undesirable consequences).

Indeed insurers have been doing just that for many years, the euphemism for it is "cost sharing," and cost sharing hasn't exactly been decreasing over time. The simplest example is probably the copay. If you look at the people out there who have substantial medical bills, I think you would conclude that most of them have quite a bit of skin in the game.
 
i am prob wrong about this but i am wondering how are doctors paid in this country? ist it precedure based?
Some specialties yes, others no. The author of that article gets no financial perks by ordering lots of tests. The GI doc who does the EGD (stomach scoping) gets paid for doing that procedure though.
 
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