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Stakeholder Mistrust

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Consumers’ Anger Toward The Healthcare Insurance Industry Mounts

 

Stanley Feld M.D.,FACP,MACE

President Obama is utilizing the well earned anger consumers have for the healthcare industry in order to promote his healthcare reform plan. Eighty percent of consumers are not sick. Those 80% think their healthcare insurance policy is great. The 20% of the population that is sick is very unhappy with the healthcare insurance industry.

The internet and the blogosphere have enabled those 20% to express their anger. In less than 5 hours there were 177 negative comments to the article describing how the healthcare insurance industry double crossed President Obama. This anger has been ignored in the past. The new media has created an environment in which the anger cannot be ignored. The healthcare insurance industry has killed the goose that laid its golden eggs.

President Obama has made the internet his town hall to permit consumers to express their discontent for the healthcare system. I suspect President Obama will receive more than 5 million complaints in his campaign to expose the abuse of patients by the healthcare insurance industry.

It will not bring us closer to having an affordable healthcare system. If the complications of chronic diseases were prevented, defensive medicine eliminated by effective malpractice reform, and healthcare insurance companies’ administrative waste stopped, America would have an affordable healthcare system.

Consumers need to control their healthcare dollars, receive incentives and be responsible for their own health and healthcare. ( ideal medical savings accounts).

The following are a few consumer comments

“Not surprised at all by this. The health insurance companies have had an unbelievable advantage, they can do anything they want. The only thing they need to do is keep Congress happy with lobbyists because Congress is not their customer, they have their own insurance paid by you and I. It’s gloves off time on health reform. These guys will pull no punches, they are fighting for their yachts. While we lose insurance if we file a claim.”

A consumer terminated from his job.

“I am a 56 year old professional with master degrees and many years of experience in my industry & for 19 years plus I worked for the same large corporation that just terminated me from employment because I was diagnosed with a blood cancer.
My family and I have lost medical coverage because of this and at a time when I need it the most. I would like to continue buying the same insurance even with the termination but I can not do so because I am excluded from group employment. I have lost all my rights to buy insurance like everyone else and with pre-existing medical problems nobody will insure me (or my family which depended on me).
At the very least, because I worked all my life and have never been unemployed, I should have been allowed to keep my insurance that I had while I was healthy. When I tell my friends overseas what my employer, Sun Chemical Corporation has done with me, they all say it is illegal in their country and it is a total horror that our society has chosen to discriminate so savagely against the sick and those unfortunate to lose their employment.
It is a travesty that corporations and health insurance companies collude to cleanse their ranks of those that are sick and those that are getting old as it has happened at Sun Chemical Corporation a multinational division of Dainippon Ink & Chemicals a Japanese conglomerate. “
An abused person”

This man’s corporation dropped him. He should be able to get COBRA insurance but the COBRA premium is at least 150% more than the employer paid premium. The premiums must be paid with after tax dollars. This increases the real cost of the COBRA premiums by an additional 35%.Corporate self insured plan’s can avoid the COBRA coverage requirement.

This consumer is 9 years away from being eligible for Medicare coverage. He cannot qualify for private insurance because of his age and his preexisting illness. The rest of his family might not qualify for more expensive individual healthcare insurance policies.

A byproduct of the new media is others can be made aware of the healthcare systems inequities.

“I am so sorry and hope there is some sort of alternative for you found very soon – for you and your family’s sake. This is why we have to hang solidly behind healthcare reform. Personally, I would prefer single payer because these guys do not want to reform, they want to continue holding everyone’s health hostage. What you’re going through is awful. Please take care…so sorry.”

+ I’m a fan of this user

There are pleas for people to exercise our People Power.

Dear J,

“It’s exactly stories like you that need to get out in front of this thing and bury Blue Cross in their hypocritical "we provide better service" grave.
Just like so many scare-tactic politicking, these ads are nothing more than a mirror aimed outward. The private insurance industry is broken because there are really no better options.
If they want to survive, they’re just going to have to do better…

As far as I’m concerned, no one will be upset if they don’t survive.”

There are even comments containing color words.

Blue Cross Blue Shield s@#%&–they have raised my rates every year for the past three years, even though they have not had to pay ANY medical charges for me. What do you expect these insurance guys to do? They don’t want to lower costs. No doubt, if there were a cure found for cancer, there would be some idiots, like insurance companies and republicans, rushing to undermine the cure and bury it because it hurt the chemotherapy industry. That’s the way they think. They have NO interest in making health care more affordable, more efficient, and less necessary. Don’t threaten the system that helps the fat cats.

The negative comments are endless. President Obama will receive lots of documentation. Documentation he will use against the healthcare insurance industry. He will win. Unfortunately, he will not solve any of the problems in the healthcare system.

The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone.

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How To Neutralize The Healthcare Insurance Industry’s Attack. Part 1

Stanley Feld M.D.,FACP,MACE

Yesterday Blue Cross and Blue Shield of North Carolina started rolling out the healthcare insurance industry’s attack on President Obama’s National Health Insurance Exchange. The 1993 Harry and Louise attack campaign will not work in 2009. Consumers do not trust the healthcare insurance industry to look after their needs. President Obama is playing off this mistrust and counter attacking. He sent an email to 20 million consumers asking them to join his call. He wants us ask congress to pass real healthcare reform in 2009. He asked us to join and donate money. After we join his cause we could then tell our story about the dysfunction in the healthcare system. He said your voice will make a difference. He says nothing in specific terms about how he will Repair the Healthcare System.

“Stanley –

You will note every email is personalized.


“The chance to finally reform our nation’s health care system is here. While Congress moves rapidly to produce a detailed plan, I have made it clear that real reform must uphold three core principles — it must reduce costs, guarantee choice, and ensure quality care for every American.”

Healthcare insurance premiums are constantly increasing while coverage is decreasing. Most healthcare insurance policies do not have a choice of physicians (physician networks). Quality healthcare (undefined) is not available for every American (universal healthcare). The healthcare insurance industry’s control of the healthcare system is responsible for most of these defects.

“As we know, challenging the status quo will not be easy. Its defenders will claim our goals are too big, that we should once again settle for half measures and empty talk. Left unanswered, these voices of doubt might yet again derail the comprehensive reform we so badly need. That’s where you come in.”

President Obama invites us to fight those who would derail the comprehensive reform we so badly need. He does not define the reform (Hillary Clinton’s 1993 reform?). He does not describe the route to reform. It sounds good is meaningless.

When our opponents spread fear and confusion about the changes we seek, your support for these core principles will show clarity and resolve. When the lobbyists for the status quo tell Congress to hold back, your personal story will give them the courage to press forward.

President Obama’s message is clear. The call to action is to neutralize the healthcare insurance industry’s attack.

Join my call: Ask Congress to pass real health care reform in 2009.

“After adding your name, please consider sharing your personal story about the importance of health care reform in your life and the lives of those you love.”
“I will be personally reviewing many of these signatures and stories. If you speak up now, your voice will make a difference.”


http://my.barackobama.com/HealthCareOrganizing

When I tried to tell my story there was only one place to tell my story to President Obama. The space was to donate and join the call to action. He promises to personally review my story yet he has not listened to my call for a system of patient responsibility or patient reward. He has not listened to the plea for major tort reform. He has not listened to the need for a free electronic medical record in the cloud paid for by physicians by the click. President Obama does not have a clear the way to achieve his goals. He is going to get a bill passed that is worse than the Massachusetts plan.

In our sound bite society one, he wins using the new media. The healthcare insurance industry does not get it.

http://my.barackobama.com/HealthCareOrganizing

“Last November, the American people sent Washington a clear mandate for change. But when the polls close, the true work of citizenship begins. That’s what Organizing for America is all about. Now, in these crucial moments, your voice once again has extraordinary power. I’m counting on you to use it.”

Thank you,
President Barack Obama

clip_image001

President Obama followed up with another email call to action. He is organizing People Power, one block at a time, one neighborhood at a time and one city at a time. His costs are minimal.

President Obama, using the new media, has the healthcare insurance industry on its heels. He used the old media to declare that the healthcare insurance industry made a commitment to reduce healthcare costs by 2 trillion dollars in the next 10 years. His sound bite is “ you’ve made a commitment; we expect you to keep it.” Now the healthcare insurance industry has backed down. Implied is how can it be trusted?

Patient power and the new media will not let this happen. When our opponents spread fear and confusion about the changes we seek, your support for these core principles will show clarity and resolve.”

“On June 6th, in thousands of homes across the country, we’ll gather to launch our grassroots campaign for health care. We’ll watch a special message from the President. We’ll build the teams and draw up the plans for winning health care reform the same way we won the election: Building support one block, one neighbor, one conversation at a time. And we’ll put those plans into action.”Please sign up today to host or attend a kickoff near you.
http://my.barackobama.com/HCkickoff

This time the healthcare insurance industry must do better than Harry and Louise.

The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone.

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Harry and Louise Are Coming Back: Insurers Planning on Double-Crossing Obama

 Stanley Feld M.D.,FACP,MACE

 One week after President Obama announced that the nation's health insurance
lobby pledged to reduce healthcare costs by $2 trillion in ten years, Blue
Cross Blue Shield of North Carolina is putting the finishing touches on a public
message campaign aimed at killing a key plank in the Presidents reform
platform.

Mr.
Obama had told the health care executives, “you’ve made a commitment; we expect
you to keep it.”

When the healthcare insurance lobby realized the trap it fell into it
immediately went to work to defend its control over the healthcare dollar. It is
going to roll out Harry and Louise as it did in 1993. I do not think it will
work. We are living in different times with different media tools.

From a distance
everything Barack Obama says sounds great
. The events of the last eight
years have created cynicism and despair. We are a nation thirsty for hope to
solve our many problems.”

The healthcare insurance industry is going to try to destroy President
Obama’s “National Health Insurance Exchange”. If congress
passes the National Health Insurance Exchange it will lead to a single party
payer system. The government as the single party payer is unsustainable.

“As part of what it calls an "informational website," the company has
hired an outside PR company to make a series of videos sounding the alarm about
a government-sponsored health insurance option, known as the public
plan.’

The industry argues that creating a public insurance program will undermine
the marketplace and eventually lead to a single-payer style system.

Somehow, this isn't surprising. The health insurance industry has showed it
is not serious about controlling costs by
backing away from the promise they made to President Obama
.

Now, it wants to eliminate the public health insurance option. The
public insurance option would provide an option for people who cannot afford buy
private insurance because of the healthcare insurance industry’s
restrictions.

The public
health insurance option is a key provision in President Obama's plan to help
cover all of us
. It would finally give everyone the choice between
keeping our current insurance or switching to a new, high-quality public
plan
. And under a public health insurance plan our premiums wouldn't
subsidize CEO salaries or stockholder profits
we'd all save a lot on
health care costs
.”

There are basic problems with private healthcare insurance. Its premiums are
a very rough calculation with large profits built in. The industry has reduced
provider reimbursement and restricted access to care while raising premium and
maintaining grotesque administrative fees. The process is opaque to all.

The
government will do the same as a single party payer because it cannot afford the
program.

President
Obama’s thinking on cost savings is defective
. The government outsources the
administrative services of its present government healthcare programs Medicare
and Medicaid to these very same healthcare insurance companies. The healthcare
insurance companies do the same thing to the government. Its providers
(physicians and hospitals) and consumers (patients) will experience the same
reductions and rationing of care. The program will fail just as the
Massachusetts program has failed to be affordable to the state. A systemic
change in the healthcare systems payment structure must occur in favor of
patients and physicians.

“If we had the choice of a public plan, private insurers would have to
lower rates and improve quality to compete
, so they're dead set
against it.”

The crafting of a campaign by Blue Cross Blue Shield of North Carolina is the
first of many campaigns we will see in the coming months in an attempt to turn
public sentiment against the “National
Health Insurance Exchange.”

President Obama’s insurance exchange is another way of expanding the Medicare
program. His plan is to arrive at a single party payer through the back door
while promising to maintain the private insurance option. It is Hillary
Clinton’s healthcare plan of 1993 all over again. Nobody asked the practicing
physicians for solutions. Physicians’ representing associations have not done of
very good job of articulating solutions.

The
healthcare insurance industry is not looking to protect its customers
(consumers). It is looking to control the healthcare dollars and protect its
profits. However they have cooked the goose that laid their golden eggs by
abusing consumers, employers and physicians. Harry and Louise will not
work.

Consumers are frustrated and angry. They do not trust government or the
healthcare insurance industry. They are looking for a creative solution.

The new media, the internet and blogs provide a chance for consumers to
express themselves.

“ Obama
will backtrack on this one, too! I don't have any hope that America will join
the 20th century to become a "progressive" democracy. We are an oligarchy and it
will stay that way. Just look how we elect people for office. Millions raised,
millions disappearing in someone's pocket. Money rules! ”

Consumers, it is time we drove the healthcare system because our surrogates
have let us down.  

“Not surprised at all by this. The health insurance companies have had an
unbelievable advantage, they can do anything they want. The only thing they need
to do is keep Congress happy with lobbyists because Congress is not their
customer, they have their own insurance paid by you and I. It's gloves off time
on health reform. These guys will pull no punches, they are fighting for their
yachts. While we lose insurance if we file a claim.”

It is time for consumers to demand control of their healthcare dollar. It is
time they have incentives to be responsible for their own health and be rewarded
for staying healthy. My
ideal medical savings account either funded by employers if the consumer is
employed or funded by the government with insurance for all is the solution that
must be demanded.

The opinions expressed in the blog
“Repairing The Healthcare System” are, mine and mine alone.

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President Obama’s Healthcare Reform: A Slam Dunk: No Defense

Stanley Feld M.D.,FACP,MACE

 

After a White House meeting with healthcare leaders, President Obama pronounced that is was “a historic day, a watershed event,”. He brought doctors, hospitals, drug makers and insurance companies voluntarily together and they offered $2 trillion in cost reductions over 10 years.

“The savings, he said, “will help us take the next and most important step — comprehensive health care reform.” The meeting’s results were announced as if President Obama engineering a political coup bringing leaders of the health care industry to the White House and built momentum for his ambitious health care agenda.”

All the proposals from the meeting are vague and unenforceable. None of the proposals guarantee cost savings to the healthcare system. It is another trick play to break down the defense of the major stakeholders in the healthcare system. It represents an attempt at consensus building.

Mr. Obama had told the health care executives, you’ve made a commitment; we expect you to keep it.”

The healthcare insurance executives and the hospital system did not realize what the President was doing. The healthcare insurance industry says nice things in order to have a seat at the table. It knows it is the real villain. The President is saying nice things in order to avoid confrontation, “build consensus ” and impress the media with a sense of agreement among stakeholders for his healthcare reform package.

“The consensus-building approach has already yielded some results. Insurance executives have offered to end certain underwriting practices, like refusing to cover individuals with pre-existing conditions or charging women higher rates than men, and they have invited Congress to impose stringent, uniform federal regulation on their industry.”

The healthcare insurance industry has made promises without realizing what it has done.

“ But even as insurers and health care providers stand shoulder to shoulder with Mr. Obama in vowing to slow the growth of health spending, they oppose him on other fronts.”

“For example, insurance companies are opposed to a new government-sponsored health plan, which Mr. Obama supports but insurers fear could drive them out of business.”

 

The next day the healthcare insurance industry and the hospital systems realized the impact of the President’s coup. They realized he was wooing them but not talking about the same thing they were. President Obama’s noose is tightening around the healthcare insurance industry’s neck.

Health care leaders who attended the meeting have a different interpretation. They say they agreed to slow health spending in a more gradual way and did not pledge specific year-by-year cuts.”

In separate press releases the American Hospital Association and the American Association of Healthcare Insurers clarified their positions. The American Medical Association seems to have bitten President Obama’s hook. It has not protested President Obama’s healthcare plan nor has it offered effective executable reform measures. It has offered high level goal without a path to achieving the goals.

“There’s been a lot of misunderstanding that has caused a lot of consternation among our members,” said Richard J. Umbdenstock, the president of the American Hospital Association. ”

“The A.H.A. did not commit to support the ‘Obama health plan’ or budget. No such reform plan exists at this time.”

It sounded like President Obama faked out the AHA. They came back strong and denied agreement with the form that was presented by the President.

“Moreover, Mr. Pollack EVP of AHA wrote, “The groups did not support reducing the rate of health spending by 1.5 percentage points annually.” They had agreed to squeeze health spending so the annual rate of growth would eventually be 1.5 percentage points lower.”

The America’s Health Insurance Plans had the same reaction.

“Karen M. Ignagni, president of America’s Health Insurance Plans, said the savings would “ramp up” gradually as the growth of health spending slowed.”

Nancy-Ann DeParle reply tried to appease these two powerful vested interests. Her reply and correction of her reply made things worse.

Nancy-Ann DeParle, director of the White House Office of Health Reform, said “the president misspoke”. After providing that account, Ms. DeParle called back about an hour later on Thursday and said: “I don’t think the president misspoke. His remarks correctly and accurately described the industry’s commitment.”

Few speak of the details of President Obama’s healthcare reform plan. President Obama is going to slam dunk his healthcare reform. Congress and the stakeholders will be defenseless. Everyone will be caught flat footed.

Congressional Democrats are starting to complain about the process being secretive. Only a select group is writing the legislation. Republicans are lost. They are not offering insight or executable alternatives. If they have alternatives have not told stakeholders or the public. Before Americans know it a disastrous healthcare reform plan will pass by 51 votes in the senate.

Americans: Please wake up.

The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone.

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President Obama’s Healthcare Reform Trick Play

 

Stanley Feld M.D.,FACP,MACE

Healthcare policy definitions are easy to confuse. I am an advocate for universal healthcare coverage. I am not an advocate for a single party payer. I believe the only way to be successful in repairing the healthcare system is to remove control of the healthcare dollar from the healthcare insurance industry. Consumers must be in control of their health care dollars. The ideal Medical Savings account can motivate patients to be responsible for their health.

Patients with chronic disease must be motivated to control their chronic disease. If they are motivated to control their disease healthcare costs would decrease. Using the ideal medical savings account a patient with diabetes for example would be expected to spend $4000 dollars a year. It they controlled their disease well and avoided hospitalization their employer or the government could afford to provide a bonus. If they controlled their disease and avoided hospitalization they would have $2000 to put in a retirement account. They could be eligible for an additional $2000 bonus. The result is a savings of $4000 into their retirement account. Patient responsibility and motivation are the only way we have a chance to Repair the Healthcare System.

President Obama healthcare plan is going to make patients more dependent on government and less responsible for their care and choices. In fact choice will be rationed. His allies in the single party payer camp are complaining that he has “caved” in to hospitals and healthcare insurance companies.

They claim he was elected to install a single party payer system. They ignore the point that the government cannot afford to pay for the Medicare single party payer system much less universal coverage for the entire population as the single party payer.

The function of the government should be to make appropriate rules to align the incentives of all the stakeholders in the healthcare system. President Obama is confusing everyone with his position on healthcare reform in order to decrease resistance to his plan. My guess is he is doing it intentionally.

“Although Barack Obama was elected on a health care reform platform, his version ignores single payer. Nor is single payer advocated by his allies in the well-funded coalition called Health Care for America Now, composed of MoveOn, USAction, ACORN, Americans United for Change, the unions SEIU and UFCW and other liberal heavy hitters.”

President Obama is a clever politician. He understands that it would be political suicide to directly advocate a single party payer system. The American public wants choice. They do not want to have healthcare rationed. The American public understands the government cannot afford a single party payer system for all. The public outrage would dominate the debate. His healthcare plan is designed to arrive at a single party payer system by default.

The advocates of a single party payer do not understand the subtlety of President Obama’s positioning in the healthcare reform debate. .

“Journalist Russell Mokhiber, founder of the new group Single Payer Action, notes that no advocate of a single payer system was invited to the recent White House summit on health care reform. Only protests by Progressive Democrats of America and others won an invitation for Congressman John Conyers, sponsor of the United States National Health Care Act: H.R.676.”

The advocates of single party payer system are now attacking President Obama. They are accusing him of caving in to the demand of powerful vested interests.

“Mokhiber quotes Dr. David Himmelstein of Physicians for a National Health Program: “The President once acknowledged that single payer reform was the best option, but now he’s caving in to corporate health care interests and completely shutting out advocates of single payer reform," even though "the majority of Americans favor single payer, and it’s the most popular reform option among doctors and health economists."

This is political spin. President Obama is not caving into anyone. The majority of Americans are do not want rationing of health care that usually follows the high cost of a single party payer by government that exists in other western countries.

The President knows the best way to achieve a single party payer system. His plan is to get there by default.

The Obama healthcare reform plan is create a National Health Insurance Exchange to help individuals who wish to purchase a private insurance plan. The Exchange will act as a watchdog group and help reform the private insurance market by creating rules and standards for participating insurance plans to ensure fairness and to make individual coverage more affordable and accessible.

I believe his National Health Insurance Exchange will drive the private insurance companies out of the healthcare insurance business. This might not be a half bad idea since the healthcare insurance industry controls healthcare cost and earns a grotesque amount of money.

It could change the healthcare insurance industry but I doubt it. It should become a 6% broker as the administrative service organization instead of 15% broker in a private insurance system. However there is no price transparency. In reality the government pays 18% for Medicare administrative services. President Obama healthcare reform proposals will not repair this abuse. Nothing will change. The government will restrict access and ration healthcare.

Watch out.

The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone.

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The Electronic Medical Record (EMR) Stimulus Fiasco: Part 2

Stanley Feld M.D.,FACP,MACE

President Obama is counting on electronic health records (EMR) to help modernize the nation’s dysfunctional health care system, improve the quality of care and reduce its cost. He should understand the real costs of an EMR. The cost of disruption of the work flow, the issue of incompatibility and connectivity with other EMRs, and the costs of maintenance, service and software upgrades are all important barriers not taken into account in his stimulus package. If President Obama must think that throwing money at the conversion to electronic medical records (EMR) is going to work, he is wrong. He is using the wrong route.

“His stimulus package will provide $19 billion over the next two years to promote the adoption and use of health information technology, and he has pledged to spend some $50 billion in all over five years.”

Both hospitals and physicians offices have been slow to adopt EMR’s. Most physicians would love to have EMR’s to decrease paperwork and medical errors. However, many practices have legacy EMR systems that do not provide functionality necessary. These practices are struggling with the notion to reinvest in a new EMR as their reimbursement is decreasing, cost flow is ebbing, and physician income is decreasing

“PwC estimates that the average three-physician practice can expect to invest between $173,750 and $296,000 over two years to purchase and maintain an EHR system. “

A three man ophthalmology practice was quoted $65,000 per physician plus service and maintenance. The final figure was $95,000 per physician. The EMR is fairly functional. It would not qualify for a rebate from the stimulus package.

The physicians initially complained about the disruption in their work flow. After three months they started to accommodate to the change in work flow. Now they feel they need an upgrade to add functionality. The physicians are now concerned about the maintenance and service charge per year.

“Individual physicians, not practices, can receive up to a total of $44,000 each for adopting certified EHRs.”

President Obama’s subsidy is helpful but many physicians still cannot afford the upfront cost.

“Hospital systems main impediment is money. Many hospitals simply do not have the capital to buy systems that can cost $20 million to $200 million, especially when so many are struggling to remain solvent. Hospitals also worry about high maintenance costs, an uncertain payoff on their investment, and a lack of staff with adequate technical expertise.”

There is a perverse outcome to installation of an EMR. Physicians and hospital systems may realize some return on their EHR investment. The primary returns on the physicians’ and hospital systems’ investment is expected to mostly accrue to private and public payers.

“The federal government estimates that the conversion to digital records will save $12 billion in healthcare spending over 10 years.”

The federal government saving twelve billion dollars over 10 years is a small return on a $50 billion dollar investment. The investment risk is compounded by the uncertainty of implementation of a fully functional EMR.

The survey also found that:

  • 82% of hospital CIOs have already cut IT spending budgets in 2009 by an average of 10%, with one in 10 making more drastic cuts of greater than 30%.
  • 66% of CIOs say they expect to be asked to make further cuts in IT spending before the end of 2009.

It is not difficult to understand that hospitals want to cut costs. They are reporting cash flow and profit margin problems. The government cannot afford Medicare and Medicaid in its present form. President Obama’s plan is to expand both Medicare and Medicaid while decreasing patient coverage and provider reimbursement. Premiums for Medicare and deductibles have been increasing steadily.

  • 64% of CIOs agreed that it is impossible to balance demand with the need to cut costs.
  • One-half of CIOs with more than 500 beds say that federal funding is "crucial" to their ability to implement EHRs.

The stimulus formula for subsidizing hospital systems is a function of the hospital system’s volume of Medicare and Medicaid patients. With government reimbursement decreasing, hospital systems are reinventing themselves to attract paying customers. They are developing high productivity profit centers such as back centers, cardiovascular centers, and gastric bypass centers. Hospital systems “lose money” on acute illnesses. Hospital systems are trying to move away from their dependence of Medicare and Medicaid patients.

It should be obvious that President Obama’s EMR stimulus plan has not been well thought out.

The American Medical Association seems to be on the right track. It is clear to me that someone is listening to me.

“The American Medical Association is developing a Web-based service offering doctors electronic prescribing, up-to-date reference material and other resources.

The idea is to make it easier for physicians to adopt technology President Obama is promoting for health care reform, to streamline their workload, and improve patient care.”

“Doctors will be able to use it to access numerous electronic medical services, including the latest science on diseases, and electronic health records, said Dr. Joseph Heyman, chairman of the AMA’s board.”

http://news.yahoo.com/s/ap/20090422/ap_on_bi_ge/us_med_ama_electronic_health_1

There are no details available yet. It is encouraging that the AMA is trying to be proactive.

President Obama, this is not rocket science. If you put a totally functioning electronic medical record in the cloud in the next few months, the most it should cost the government (taxpayer) is about 5 billion dollars.

The software could be serviced and upgraded at no cost to the providers of healthcare services. The taxpayers return on the dollar would be at least three times that amount in the first year if the providers paid by the click. Payment by the click would not be a burden to physicians or hospital systems.

Physicians and hospital systems would instantly have a fully functioning EMR. The government could use the same business plan credit card companies use. It could even set up an auto pay system.

President Obama, I hope you read this and arrive at an "ah ha" moment and change the route you are taking to convert medicine to an electronic information system.

The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone.

  • Electronic Medical Records

    patients should keep copies of their electronic medical records thorugh services like ours.
    This way, they will be in control and it could actually reduce their health care bills.

  • Stephen Holland, MD

    Those two comments look like paid advertisements. I encourage my patients to put their records on a usb thumb drive and take it with them. This is great for college kids. BTW, all my records are kept as PDF’s. so it is trivial to put the records on the patient’s thumb drive.

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The Electronic Medical Record Stimulus Fiasco: Part 1

Stanley Feld M.D.,FACP,MACE.

All of President Obama’s goals are commendable. The United States needs to fix the education system, decrease its dependency on fossil fuel, increase production of renewable energy, and repair the healthcare system.

These are all big ideas. They must be implemented for the United States to prosper in the future. I have expertise in (healthcare). President Obama’s route to achieving healthcare reform is wrong. He is not attacking the basic problems in the healthcare system.

A PriceWaterhouse Cooper study showed $1.2 trillion dollars is wasted on defensive medicine and administrative costs. Where is malpractice reform on President Obama’s list of big ideas to eliminate the practice of defensive medicine?  If the $1.2 trillion dollars of waste were eliminated we would have an affordable healthcare system.

The administration’s stimulus package for instituting an electronic medical record (EHR,EMR) is going to create more waste and a larger mess than the fiasco that already exists.

“A recent Robert Wood Johnson survey of more than 3,000 U.S. hospitals found that only 9% were using electronic health records (EHR). “The numbers are disappointing and certainly lower than we thought when we went into this study,” says Ashish Jha, the lead author of the study and an associate professor of health policy and management at Harvard University. “

The survey is a well done. Survey responses were received from 63.1% of all acute care hospitals that are members of the American Hospital Association. This is a high percentage response rate for a survey. The survey looked for the presence of specific electronic-record functionalities. More discouraging than the 9% figure is only 1.5% of U.S. hospitals have a comprehensive electronic-records system (i.e., present in all clinical units and fully functional).

Only 7.6% of acute care hospitals have a basic system (i.e.present in at least one clinical unit). Computerized provider-order entry for medications has been implemented in only 17% of hospitals. Larger hospitals, urban area hospitals, and teaching hospitals were more likely to have electronic-records systems than small hospitals in smaller cities. Most of the hospitals spent over $100 million dollars for it EMR. The money spent did not enable the hospital systems to implement a fully functioning EMR.

Hospitals and hospital systems are experiencing financially hard times during this recession. They cannot afford the capital requirements and high maintenance costs to implement the installation of an EMR when the end result is not having a fully functioning electronic medical record. Hospital systems board of directors are not interested in going deeper in debt when the government is going to reduce reimbursement for non compliance.

PriceWaterhouse Coopers’ analysis of the stimulus package for EMR points out government subsidies are through the traditional EMR acquisition channels. Their analysis highlights the government’s punishing actions of non compliant providers. It is going to reduce reimbursement as punishment. Isn’t that silly? The government should be worrying about the financial health of these institutions and physicians’ practices

“The stimulus funding for health IT is a small carrot compared to the amount of resources it will take to deploy this technology over the next 5 years. Also, providers will feel a big stick of financial penalties if they fail to use government-certified electronic health record (EHR) in a government-certified manner beginning in 2015.”

It should be obvious that every physician’s office and hospital system should have a functional electronic medical record. One must wonder how physicians feel when they cannot afford an EHR that will probably not have full functionality.

Who will be the winner? Patients should be the winner. Patients will not win under President Obama’s stimulus package.

“With billions in new funding and government regulations, the health IT market will balloon far beyond the provider segment, providing new opportunities for health plans, pharma companies and other vendors.”

Powerful secondary stakeholder with financial vested interests will win.

The net result is will not be a universal and functional EMR. There will be little connectivity.

The government should invest in the purchase of a web based fully functional EMR with all the attributes necessary to build an effective electronic medical record system. The system would provide complete interconnectivity to physicians, hospitals, pharmacies, and insurance companies. Upgrades and maintenance of the software would be automatic and free.

The government would charge each provider entity by the click for the use of the universal Electronic Health Record. The government would recover its investment over a very short time and instantly create a system of price transparency. The system would be affordable to the healthcare providers. The present stimulus plan for EMR is going to waste the $36 billion dollars. It will try to force hospital systems and physician offices to buy an electronic medical record system that they cannot afford, do not want and might not work.

The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone.

  • Jay Beaulieu

    As an IT worker I am also worried about the President’s Healthcare IT reform. First thing I’d like to set straight is that you presented a serious series of issues about Healthcare IT and I’m going to try to address them. I don’t stand to benefit at all from my solution. I also tried contacting the Obama administration and sent the following viewpoint that implied SOA (XML contracts, workflow) and DITA (data views, procedure workbooks) both are open source, but received no response:
    I want to keep this letter at the concept level and not get into a technology whitepaper, but rest assured everything I’m about to suggest is at the cell-phone level of cost for physicians, a little more at the hospital level because of different needs but most importantly the technology already exists.
    There are currently three basic types of medical records, paper medical records, the folder we all know so well, the electronic medical record used mostly at hospitals, think of a printout from a computer system and the Electronic Medical Records (EHR) which are XML-based records that have the ability to reduce costs and errors because they are programmable and can be validated (checked for accuracy and completeness.)
    The first discussion we need to have is who should hold these records. If the goal is to fight disease, find new cures, to identify epidemics and to use these records as a basis for an unparalleled growth of healthcare knowledge over the next ten to fifteen years, we need the records easily and securely accessible. There are two groups that I think have the ability to deal with the billions of pages of medical records. The first is the Federal Government but due to the boom and bust of the budgetary process I prefer the telecoms because they are big enough, have the redundancy, the geographical reach, the competition, the bandwidth and their business model is based on providing reliable services at a low cost.
    Next we need to look at what is the correct paradigm to use for our medical records. This is simple it’s an electronic loose-leaf notebook that mimics a paper folder but has pages that can be forms or entire computer systems like an MRI system. A simple example would be using the Kindle II to access medical records. Because most physicians medical records are in paper form we need to get them scanned into electronic form and sent to the telecoms. This is labor intensive but requires little training; we could use the workers already being assembled for the 2010 census, providing a very quick stimulus effect across the country. This is not make-work because the unfiltered raw data is the most valuable form of information to researchers if searchable. The census worker leaves behind a scanner, a printer driver (to write to the telecoms) and an electronic certificate of use that allows secure and audited, reading and writing to the medical record. The electronic certificate of use controls the type of information the holder can view or update. For instance, a state worker that monitors lead levels may be able to add a report to the book but never read any information and the same would be true of a Department of Children and Family welfare worker. This information could have a direct impact on treatment choices. The census worker also performs an audit of what software systems that are currently in use at the office, for later when we convert to XML.
    At the hospital level we could use the same type of system as at the physician’s office but here since money is available we want to make use of it for future efficiencies. So the first step is to think of each computer system, medical device and medical personnel’s duties as steps in a workbook. The goal is not to run out and replace every computer system you have but rather to identify workflows and steps so that you can layer with an enterprise software service on top of whatever systems and procedures you are currently using. This is the best way to keep integration and training costs to a minimum. This first step sets the basis for measuring metrics across the hospital and after careful analysis selected systems could be replaced. The idea is that the use of EHR records can be implemented outside or on top of your current systems. Disk space is cheap and redundancy of information is not always a sin.
    At this point we’ve minimized the risk of movement to XML. The physician’s office has had time to adapt their workflow to electronic records, has probably replaced the paper folder racks with another examination room and may have had some cost savings. And they no longer have to worry about marrying an IT person to practice medicine. The telecoms are trying to sell all sorts of services like billing, automated reminder calls, electronic prescriptions the list is endless. The hospitals have identified its different workflows, decided where XML would benefit them and possibly received bids from different software vendors to wrap the individual systems either wholly or partially to take advantage of XML. Now it’s time to move to XML.
    The largest cost savings and reduction of medical errors comes not from the EHR record but from the workbooks. This type of workbook is really a best medical practice workflow, in it’s infancy it’s just an electronic record of symptoms, treatment and justification, sent to a third-party like a telecom. The purpose is to prevent a remake of the “Verdict” with Paul Newman except on the History Channel. But to do that the workbooks need to be created and maintained not by an individual software vendors or physicians but by a consortium of interested parties like the medical manufacturers, pharmaceuticals, medical associations, physicians groups and finally the Federal Government for an effectively rating. This allows for the creation and refinement of many backend programs that can check on the validity of treatments in so far as medical errors and options are concerned.
    Next up are the healthcare insurance providers. Because the medical community has its own very precise terminology, what’s covered, partially, wholly or not at all by an insurer can be conducted in an XML contract in a matter of seconds. This would require a law to be passed requiring it from the insurers. But it should also allow the insurers to provide an alternative treatment to the patient. This provides the patient a cost with an effectively rating and maybe a couple of different optional
    treatments so the patient in consultation with their physician makes the judgment.
    We left the medical records as electronic medical records earlier we need to get them into EHR but I’m of three minds here. The first is that we could have done the conversion when the records were scanned in and using software and our census workers create the EHR, this provides the greatest stimulus to the most people. Or we could scan them in and have the conversion done in places like Elkhart, Indiana or other areas hard hit by this recession, because most people that have worked in a factory or assembly line already have the skills needed for XML. But we could also write software programs to parse, categorize, and convert the data to EHR which would produce valuable programs that could be used outside of our medical records, to XML and Artificial Intelligence programs in general. The programs are re-executable whereas using the census workers is more of one shot deal. The other thought is that when designing the XML processing procedures it should never be pigeon-holed into what we expect to collect for information. A notebook can have anything in it but a page or maybe even a chapter could be validated but it needs to be remembered this is a data collection system that must change frequently with the pathogens and treatments out in the field. Layered from the unknown but collected (notebook) to the known (page) outside in.
    Now the medical office worker, physician and patient all check the accuracy of the EHR. From the physician’s point of view, forms can now be filled out on the hand-held device, new features or workbooks appear tailored to their specialty and particular treatments. Perhaps a table of relatives allows access or just querying the patients relative’s books for pertinent information, but of course this is up for discussion. The hand-devices could now have barcode readers, GPS units and biometric fingerprint readers for drug auditing, security and for access auditing. Deceased people’s books are constantly being sent to the National Archives or CDC for storage and research, a little like donating your body to science without the yuck factor.
    Hospitals have spent there monies wisely, have color-coded hand-held devices so they don’t bring the wrong one into the operating room. But most importantly, they’ve changed from, a who can pay and who can’t, to true cost accounting and I don’t mean in the IRS sense. But we as a society need to actually advance not to just pay as you go. So therefore, charging ten dollars for an aspirin from an IT perspective, I can’t help you. However, if the reason you’re charging ten dollars is to
    offset the fact that you have a separate DBA for each database or you need 24/7 support there I can reduce your costs significantly.
    Finally, we’ve created a series of checks and balances in our healthcare engine that should help it stop leaking oil. We’ve given everyone a haircut to one degree or another but we’ve refocused on the fact that the goal of our healthcare engine should be on providing better healthcare for ALL Americans and that profits should be earned though innovation and hard work not just by exploiting leaks in the system or clever accounting.

  • EMR Medical

    Thanks for the view through this blog. A major US survey has shown lately that majority of doctors think implementing electronic medical records is necessry at this time.

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President Obama; If You Really Want To Reduce Healthcare Costs, Effectively Reform The Medical Malpractice Tort System: Part 4

 

Stanley Feld M.D.,FACP,MACE

 

President Obama, there are other consequences of the present malpractice liability system that cannot measured in dollars or impact. In order to avoid potential law suits physicians are avoiding high risk patients and high risk patient procedures. The result is a decrease in patient access to necessary care.

The measured costs of defensive medicine can be calculated from the Massachusetts Medical Society survey.

“Physicians practice defensive medicine because they don’t trust the medical liability system. This survey should provide a strong impetus for legislative, business, and health care industry initiatives promoting fundamental liability reform.”

It is essential to introduce effective and fundamental liability reform to reduce the practice of defensive medicine, decrease costs and improve access to care.

The Massachusetts Medical Society’s survey of physician concerning defensive medicine also point out the restriction of access to care as a result of the malpractice environment.

“The survey found that 38 percent of responding physicians reported they reduced the number of high-risk services they performed, with orthopedic surgeons (55%), obstetrician/ gynecologists (54%), and general surgeons (48%) reporting the highest frequencies.”

These actions by physicians’ specialties are a natural reaction to the malpractice environment. It also reduces the healthcare system’s capacity to care for sick patients.

“28 percent of physicians in the sample reported reducing the number of high-risk patients they saw, with obstetrician/gynecologists (44%) and the surgical specialties (37–42%) much more likely to reduce their number of high-risk patients.”

In many small or medium sized communities there is little or no access to medical or surgical specialists to take care of high risk patients. President Obama, rather than increase the quality of care, as you have promised, the quality of care in some communities will decrease.

Other surveys by the Massachusetts Medical Society confirm their survey.

“In its annual Physician Workforce Study over the last five years, the Society has found that an average of 44%-48% of physicians in the state reported that they are altering or limiting their practices because of the fear of being sued.”

The 2008 workforce study’s results were worse than the Massachusetts Defensive Medicine survey. More than half of physicians in seven specialties said they have progressively limited their practices, the fear of a frivolous malpractice suit being the primary reason. It is natural for people to adjust to their environment.

“Neurosurgery practices (76%), urology (75%), emergency medicine (66%), obstetrics/gynecology (57%), family medicine (53%), general surgery (51%), and orthopedics (51%).”

President Obama, what should you do to neutralize the negative impact of defensive medicine?

First, do not believe the arguments of the trial lawyers. The claim that malpractice reform will harm patients "by limiting their ability to seek compensation through the courts" is a smoke screen to protect their profitability in law suits.

The medical liability system is inefficient. It does not compensate patients experiencing medical errors very fairly. In fact more than 50 cents on every compensated dollar goes to pay lawyers and the courts. Patients may wait year to receive a single penny. The wear and tear of a malpractice suit on patients experiencing medical errors and physicians being sued is enormous.

The answer is not to leave it up to congress to work it out. Congress has a 30% approval rating. Congress is also composed mostly of lawyers. You are our leader. You are the one who must outline the change that is fair to patients, the government, and physicians.

The fundamentals of change should include the following:

  1. Decrease the profitability of malpractice suits for attorneys.
  2. Invest in a culture of patients’ safety at every healthcare enterprise.
  3. Promote full disclosure to patients about adverse events quickly without legal consequences.
  4. Promote apology to patients without legal consequences.
  5. Provide fair compensation to patients for medical errors.
  6. Professional mediation and arbitration to resolve disputes quickly and dismiss frivolous claims abruptly.
  7. Create a body of judges immune from liability to adjudicate malpractice suits. The body should be composed of physicians and lay leaders. The best judge of physicians medical errors are other physicians if they were freed of adverse countersuit
  8. Create a system of no fault malpractice insurance.
  9. Place limits on patient compensation and expedient rate of compensation.
  10. Eliminate the adversarial nature of the claims.
  11. Build trust between patients and physicians.

Defense attorneys will hate most elements of this proposal because it threatens their vested interest and profitability. I suspect they will fight them with tooth and nail.

President Obama, if you implement these proposals to fundamentally change the medical liability system you would go a long way to reduce the practice of defensive medicine and a yearly wasted cost of $700 billion dollars to the healthcare system.

The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone.

 
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Permalink:

President Obama; If You Really Want To Reduce Healthcare Costs, Effectively Reform The Medical Malpractice Tort System: Part 3

 

Stanley Feld M.D.,FACP,MACE

President Obama, the details of the Massachusetts Medical Society Defensive Medicine survey have profound importance in explaining trends in the delivery of medical care. Unfortunately, only meaningless sound bites have been given by the media. The survey’s significance has not had the impact on policy it should.

The authors state that the dollar estimates do not include the diagnostic procedures, hospital admissions, specialty referrals and consultations or unnecessary prescription by physicians in specialties not included in the study.

The eight specialties surveyed represent only 46% of the physicians in the Massachusetts. The real costs to the healthcare system from the practice defensive medicine in the state of Massachusetts are much higher. The authors estimate the real costs could be twice the $1.4 billion dollars per year they estimated.

I believe the costs of defensive medicine in many other states are much higher because the cost of litigation in many states is lower and the malpractice awards are higher encouraging litigation.

“This survey clearly shows that the fear of medical liability is a serious burden on health care,” said Dr. Sethi. “The fear of being sued is driving physicians to defensive medicine and dramatically increasing health care costs. This poses a critical issue, as soaring costs are the biggest threat to the success of Massachusetts health reform efforts.”

Defensive medicine is definitely a threat to the success of the Massachusetts healthcare reform efforts. President Obama, defensive medicine is a big burden nationally to the healthcare system. Its costs will undermine any attempt at healthcare reform unless you take medical malpractice liability reform seriously. There has to be a fundamental change in the structure of adjudication.

The survey’s findings must be studied carefully. The physicians surveyed estimated their percentages for defensive medicine testing to avoid law suit. I think their estimates are low. The real percentages must be studied objectively using data mining techniques. Nonetheless the current estimates reveal unsustainable waste in our dysfunctional healthcare system.

Radiological imaging is one tool overused by physicians defensively to avoid litigation. Physicians feel they must test everything even if the probability of a positive result is insignificant.

“Plain Film X-Rays: An average of 22% of X-rays were ordered for defensive reasons.”

“CT Scans: An average of 28% of CT scans were motivated by liability concerns, with major differences among specialties.”

About 33% of scans ordered by obstetricians/ gynecologists, emergency physicians, and family practitioners were done for defensive reasons.

The total number of unnecessary CT scans needs to be calculated along with its costs in order to understand the significance of the percentage presented. The health policy solution should not be to lower the reimbursement for CT scans. The solution is to fix the medical malpractice liability system.

MRI Studies: An average of 27% of MRIs were ordered for defensive reasons, with significant differences by specialty.

The highest rates were reported by obstetricians/ gynecologists, general surgeons, and family practitioners, with the lowest rates by neurosurgeons and emergency physicians.

Ultrasound Studies: An average of 24% of Ultrasounds were ordered for defensive reasons. Orthopedic surgeons (33%) and obstetricians/gynecologists (28%) reported the highest rates, with neurosurgeons (6%) and anesthesiologists (9%) the lowest.

I believe neurosurgeons are underestimating their use of radiologic procedures in order to look good. Neurosurgery is one of the specialties with the highest malpractice rates. Please note that obstetricians/gynecologists take no chances and order the most procedures for defensive purposes.

Laboratory Testing:

An average of 18% of laboratory tests were ordered for defensive reasons, with emergency physicians (25%) reporting the highest rates and neurosurgeons (7%) the lowest.

Specialty referrals, consultations and hospitalizations are overused the most for defensive reasons. No one wants to take a chance and send the patient home even if the indication for hospitalization is small. Hospitalization is also the most costly overused element in defensive medicine.

Specialty Referrals and Consultations:

“An average of 28% of specialty referrals and consultations were motivated by liability concerns, with significant differences by specialty. Obstetricians/gynecologists reported that 40% of their referrals and consultations were done for defensive reasons, and anesthesiologists and family practitioners said that 33% of their referrals and consultations were done for the same reasons.”

Hospital Admissions:

An average of 13% of hospital admissions were motivated by liability concerns, with surgical specialties reporting lower rates than the other specialties.

The percentages of defensive procedures are admitted by practicing physicians. The cost of defensive medicine is high and wasteful. President Obama, defensive medicine is not the minor problem that the malpractice attorneys want you to believe it is. It is time for definitive action now.

 

The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone.

  • Medical Negligence 

    The doctor’s actions have caused or contributed to the plaintiff’s personal injury, his actions may not be deemed negligent if it can be shown that they were the ‘reasonable’ actions of a medical professional given the information the doctor had and the specific circumstances.

  • Tyler grey

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