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Is Barack Obama Any Different Than Other Politicians? Part 1

 

Stanley Feld M.D.,FACP, MACE

No! He is not.

In the weeks to come I am going to point out the deficiencies in both
candidates thinking about healthcare. It is clear that neither has received
input from practicing physicians. Please click on the highlighted phrases for
more details on each subject.  

I will start with Barack Obama because the Democratic convention is first.

I am astonished by the lack of scholarship and thoughtfulness on the part of
either Presidential candidate. The issues have been reduced to sound bites. The
pronouncements are picture words that generate false hope. Neither political
party is confronting the real issues and the necessary repairs. If any of their
proposals are passed into law it will simply be a patch. In the process the
proposals will destroy the vital and good elements of our entire healthcare
system.

Both the Medicare and the Private Healthcare Insurance system have failed.
They have neither decreased costs nor improved medical outcomes. They have been
both economic and medical care disasters. The United States can no longer afford
the present course. Academically the reasons for the disaster are clear.

1. Price
controls do not work!

2. Price
transparency is essential to create a free market economy!

3. There are too
many monetary incentives in the healthcare system to maintain an inefficient
system for all stakeholders
. (primary and secondary stakeholders)

4. Punitive
measures
directed at the weakest stakeholders (primary stakeholders) to
correct inefficiencies do not work and lead to greater inefficiencies.

5. The healthcare system must be constructed and run
for the benefit of the primary stakeholders
.

6. The
primary stakeholders must drive the healthcare system for their medical and
financial benefit. (Consumer driven healthcare)
.

7. Secondary
stakeholders should be facilitators for the primary stakeholders.
(patients).

8. Profit
derived from the system should be the result of efficiency and not the result of
political influence to protect secondary stakeholder vested interests
.

9. Consumers
as the primary stakeholders must be responsible for their health, and medical
care.
Appropriate government subsidy must be provided, if warranted.

10. The
government must set up rules to protect the consumer from the healthcare
insurance industry, hospital systems, drug companies and physicians

10. Actions should be taken by government across all areas of society (War
on Obesity
) to educate
consumers to decrease the incidence of chronic disease
.

The consumer must fix the healthcare system. None of the other stakeholders
has been successful. In fact, in the last 30 years the healthcare system has
been made worse by the insurance industry, government and policy makers.

All their systemic changes have failed because they have, for the most part,
been to the advantage of the facilitator stakeholders and not the primary
stakeholder, the patient. Facilitator stakeholders’ profits have soared,
insurance premiums have skyrocketed while access to care has plummeted.
Patients, physicians, hospital systems and the government have adjusted to
changes to the detriment of patients. The facilitator stakeholder adjustments
have resulted in further dysfunction in the healthcare system.

Presently, employers and all the stakeholders except for the insurance
industry are in pain. However, the stakeholder most at risk is the consumer.
Only 20% of the population is sick and interacts with the healthcare system at
any moment in time. 80% of the population does not interact with the healthcare
system. They think everything is fine. However, the entire populations’ health
and well being is at risk! If we stay on the present course, I predict the
system will break down completely. Access to care will be limited and rationed.
Access to life saving medical advances will vanish. Future advances in medical
care will disappear.

The goal of the healthcare system should be;

1. To provide patients

a. with access to good quality care
b. with
education to judge quality care

c. with incentives
to be motivated to be responsible for their medical care

d. with the freedom
to judge and select the physician of their choice

e. with the information
from their healthcare providers that is truly portable

f. with choice
of healthcare insurance vehicles that are affordable

g. with education
vehicles to become “Professors of their Chronic Disease” and be truly
responsible for their care

h. effective
and affordable drug coverage designed to enhance patient compliance with
treatment

2. To provide physicians

a. with a precise definition of the meaning of quality care for various
chronic diseases
b. with incentives to provide quality care for both acute
and chronic disease
c. with the educational opportunity and motivation to
improve the quality of care they deliver.
d. with an actual vehicle developed
by their peers to prove that they are delivering quality care.
e. with a
mechanism for delivering care at a transparent price
f. with the ability to
effectively
communicate with patients electronically
.
g. with the
ability to improve the patient physician relationships

h. with the
ability to enable patients to practice effective self-management techniques to
prevent costly complications of chronic disease
i. with the ability to
improve communication and access to patient information so as to reduce the cost
of redundant evaluation and treatment

3. To decrease the overall cost of the system

4. To eliminate the 47 million uninsured

5. To align stakeholders’ incentives

6. To provide satisfactory profit margins for hospitals, pharmaceutical
companies, insurance companies, and physicians.

These are ambitious goals. Processes must be changed in order for the United
States to deliver effective health care to the population now and in the future.

Consumers can not leave it up to the facilitator stakeholders and policy
wonks to fix the system. Their policies have distorted the healthcare system in
the past to serve their vested interests. Patients today and in the future must
drive the process of change through appropriate demands on our politicians in
order to repair our healthcare system and install an effective consumer driven
healthcare system.

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Dr. Feld. Why Only Pick On The Healthcare Insurance Industry?: Part 3

Stanley Feld M.D.,FACP,MACE

In summary, one stakeholder did not create a dysfunctional healthcare system. Since everyone believes the healthcare system is broken the main question is how can it be fixed.The major beneficiary of the largess and the worst offender in generating dysfunctions is the healthcare insurance industry.

As a secondary stakeholder in healthcare, the healthcare insurance industry adds little value to the treatment of a sick patient. It is essential that consumers understand the abuses to the healthcare industry in order to know the cure.

All the abuses of every stakeholder must be eliminated in order to have a viable healthcare system. The abuses and overuses have been outlined in my response to Matt Moledeski’s comment. The present dysfunctional healthcare system is the result of adjustments and reactions to changes imposed on the various stakeholders by each stakeholder to the disadvantage of the consumer.

The key questions are

1. Who is the primary stakeholder?

Answer: the patient

2. Who are the primary utilizers of resources?

Answer: the patients

3. Who should be the primary controller of the utilization of resources?

Answer: the doctor and the patient. Presently, the government and the healthcare insurance companies, in an attempt to control utilization of resources, restrict patient access to care when they deem it appropriate.

4. Who is the primary generator of disease?

Answer: A. The patient and his lifestyle.
             B. Industries promoting disease generating life styles.
             C. Industries generating toxic material into the environment.
             D. Agencies and industries that create unaffordable and inaccessible medical care.

5. Which diseases utilize the most resources?

Answer: Complications of chronic disease. 90% of the healthcare dollar is spent and taking care of the complications of chronic diseases. If we could avoid generating chronic diseases and their complications we could reduce our healthcare costs by correcting the problems in section 4. Healthcare and healthcare insurance would then become affordable.

5. How do you set up a system that encourages the avoidance of the complications of chronic disease?

Answer:A. Put the patients in charge of their healthcare dollar.

B. Let them keep the money they do not spend in a reti rement trust.
C. Insure consumers for large expenses.
D. Reward them financially for good health and the avoidance of complications of chronic diseases     and penalize them for bad health habits (i.e. obesity).
E. Require complete transparency by all the stakeholders
F. Provide an Electronic Medical Record financed by users by the click
G. Put in place effective malpractice rules to eliminate defensive medicine
H. Require hospitals to reveal actual costs of services to patients
I. Empower and require state boards of insurance to withhold licenses to sell insurance in the  state that abuse patients and physicians. The ineffective financial penalties are providing a profit center for these abuses to the healthcare insurance industry.

Consumers will boycott inefficient companies and business that charge too much.

The healthcare dysfunction started with a government entitlement rather than a government subsidy. It preceded government imposed price controls followed by healthcare insurance company abuse. Physician, patients and hospitals reacted to the abuse.

It will end with consumers controlling their healthcare dollars, employers and the government providing the funds to consumers along with financial incentives for consumers to control healthcare costs.

The concept of imposing a bureaucracy on top of a single party payer system is a solution that can not work.

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

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Dr. Feld. Why Only Pick On The Healthcare Insurance Industry?: Part 2

Stanley Feld M.D.,FACP,MACE

This post continues my reply to Matt Modleski’s comment. If one views the dysfunction in the healthcare system as a gradually evolving process is it clear that all the stakeholders have contributed to its dysfunction. As each stakeholder adjusted to the changes, the healthcare system became more dysfunctional.

“ The number of scans, tests and procedures that are done each year unnecessarily because the facilities that are built (many Physician owned) are put to use is also a big part of the problem. This has been documented in study after study (some of them conducted by physicians).”

In the studies Matt refers to patients going to these testing clinics could be getting better care than the non physician owned clinics? Remember quality of care has not been clearly defined by policy makers or the healthcare insurance industry.

Physicians in academic medicine have not precisely defined quality medical care. However, everyone talks about it. I do not believe you can assume physicians are doing the test simply to make a profit.

I do think there are a lot of unnecessary procedures done in many hospital outpatient facilities and physician owned facilities. Many of the procedures are done because physicians are forced to practice defensive medicine. There are many law suits in the pipeline presently because of missed diagnosis.

Patients with vague symptoms at the time of physician visits need to be tested to detect possible disease. Almost everyone experiencing automobile accidents with the slightest head trauma automatically undergoes a CAT scan to rule out a cerebral bleed. President Reagan did not get an automatic MRI or CAT scan when he had his subdural hematoma.

Diagnoses that would not otherwise be made are made early through testing using new technology. Clinical judgment has lost its place in the defense of malpractice suits. The costs of using new technologies has an enormous impact on the cost of medical care. Yet no one has precisely defined quality medical care . Nonetheless, physicians have been accused of over testing when they control their intellectual property.

A significant number of malpractice suits would disappear if the government changed some liability rules. The rule change would make malpractice claims less attractive to malpractice attorneys. Malpractice attorneys receive one third to one half of any settlement. A change in the contingency rule would decrease lawyers’ incentives and frivolous malpractice claims. The government has to put limits on damages for certain claims and change the adjudication process. Plaintiffs attorneys’ have resisted these changes.

The state of Texas has made these changes. there has been a marked reduction in malpractice claims as well as malpractice premiums.

The reasons for the overuse of the healthcare system have not been publicized in the media or by organized medicine. Overuse of the healthcare system makes a sensational story for the media and it is easy to blame physicians. I am not interested in defending physicians. However, one should give physicians the benefit of the doubt since you trust them to deliver the best medical care possible. If you do not like what they suggest pick another physician. I would not rely on a healthcare insurance company’s employee looking at the computer screen to make a medical treatment judgment about my health.

There are also lots of unnecessary tests done because of increasing patient demand. Patients learn from the media and online what needs to be tested. Cholesterol testing and bone density testing are increasing. When the compliance rate is analyzed only 30%- 50% of people who should be tested are tested. When they were tested only 30-50% treated stayed on the medication after 1 year. Think about it. If everyone was tested and treated appropriately the cost of testing and treatment would increase while the cost of the complications of these chronic diseases would fall precipitously. The greatest cost is the cost of treating the complications of chronic diseases.

Matt complains about physicians owning the facilities to test patients. Why should physicians give their intellectual property away to hospitals when they can do the test more conveniently and cheaper in their office?

Physicians detect, treat and teach patients how to become professor of their chronic disease so patients can be knowledgeable in managing their disease. This is the definition of cognitive therapy. Cognitive therapy is not reward by the government or the healthcare insurance industry. Isn’t this a perverse circumstance since 90% of the healthcare dollar is spent of the complications of chronic disease?

“The system is broken and commoditized reimbursement, regardless of the quality of care, is a key component, but so is the overtreatment of patients by financially driven providers. Every now and then you hint as much, but you would be helping everyone by giving it equal airtime with your perspective on the woes created by the insurance companies.

Physicians’ intellectual property has been discredited and devalued. Physicians are intelligent people who have accepted the fact that their credibility is challenged. They are trying to figure out way to make a living taking caring for patients in the best possible way. They also want to figure out how to protect their intellectual property. They try not to react to a healthcare system that has challenged their skills and integrity.

Patients are at fault by believing medical care is a right. Obesity is an epidemic and generates chronic disease and the complication of chronic disease. The adherence to hypertension therapy is less than 50% leading to strokes and myocardial infarction. The adherence to diabetes treatment is less than 40%. Shouldn’t society be putting energy and money into solving this problem?

The question is where did the dysfunctional behavior start? It started when the healthcare insurance industry started gaming and controlling the healthcare system for profit after the government instituted price controls.

My solution is my ideal medical savings account putting the patient in control under the appropriate set of rules. The consumer is the only stakeholder that can force the government to make the correct rules!

"Keep doing what you do, I read your stuff every day".

"Cheers,

Matt"

Matt, thanks for your comment.

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

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The Health Insurance Mafia

Stanley Feld M.D.,FACP,MACE

Jonathan Kellerman is an M.D.. He is telling it like it is even though no one asked. His story is clear. I believe many physicians understand the problems in the healthcare system more clearly than most of our politicians. I also believe it is our obligation to describe to consumers the real problems and dismiss political babble.

However, when physicians are in positions that represent many physicians they themselves become politicians and abandon the purpose of the medical care system which is to put patient care first. For some reason physicians do not articulate the problems of every day medical practice.

“Most discussions about the rising cost of health care emphasize the need to get more people insured. The assumption seems to be that insurance – rather than the service delivered by doctor to patient – is the important commodity.”

The healthcare insurance industry has kept the discussion focused on insurance and not on the patient physician relationships and services delivered by physicians to their patients, namely cognitive services. It also does not focus on the patients adherence to the recommended treatment and the exploding obesity epidemic.

“You don’t need to be an economist to understand that any middleman interposed between seller and buyer raises the price of a given service or product. Some intermediaries justify this by providing benefits, such as salesmanship, advertising or transport. Others offer physical facilities, such as warehouses. A third group, organized crime, utilizes fear and intimidation to muscle its way into the provider-consumer chain, raking in hefty profits and bloating cost, without providing any benefit at all.”

The healthcare insurance industry is the middleman that controls the healthcare system. The government through Medicare depends on the healthcare insurance industry to be the third party administrator for Medicare. The healthcare insurance industry sets the prices and the benefits using a unscientific social science called actuarial science.

“The health insurance model is closest to the parasitic relationship imposed by the Mafia and the like. Insurance companies provide nothing other than an ambiguous, shifty notion of “protection.

In order to control the healthcare system the healthcare insurance industry has managed to control the process of authorized treatment and reimbursement.”

“ But even the Mafia doesn’t stick its nose into the process; once the monthly skim is set, Don Whoever stays out of the picture, but for occasional “cost of doing business” increases. When insurance companies insinuate themselves into the system, their first step is figuring out how to increase the skim by harming the people they are allegedly protecting through reduced service.”

Insurance is all about betting against negative consequences; the insurance business model is unique in that profits depend upon goods and services not being provided. Using actuarial tables, insurers place their bets. However actuarial science is not an exact science. Therefore, to be safe a percentage is added to the potential pricing error guaranteeing an increase in profit.

“Health insurers have taken steps to avoid that level of surprise: Once they affix themselves to the host – in this case dual hosts, both doctor and patient – they systematically suck the lifeblood out of the supply chain with obstructive strategies. For that reason, the consequences of any insurance-based health-care model, be it privately run, or a government entitlement, are painfully easy to predict.”

Jonathan Kellerman nailed it. It is not about the patient, society’s health or the value of physicians’ intellectual property, it is about the healthcare insurance industry’s profit.

” There will be progressively draconian rationing using denial of authorization and steadily rising co-payments on the patient end; massive paperwork and other bureaucratic hurdles, and steadily diminishing fee-recovery on the doctor end.”

The result is obviously more profit for the healthcare insurance industry and more out of pocket expenses for patients.

In the olden days: “ The doctor had to look you in the eye – and didn’t need to share a rising chunk of his profits with an insurer – the cost was likely to be reasonable. The same went for hospitals: no $20 aspirins due to insurance-company delay tactics and other shenanigans. Few physicians became millionaires, but they lived comfortably, took responsibility for their own business model, and enjoyed their work more.”

The idea is to get the dollar out of the hands of the healthcare insurance industry and let the patient manage his own money and keep the money he does not spend in a trust.

Healthcare insurance must be converted to true insurance that is needed for expensive procedures.

Both physicians and patients need to be active in liberating themselves from the notion that insurance will pay. The healthcare insurance industry has figured out how to control the premiums and the reimbursement. They have now figured out how to neutralize the innovative concept of patient control of the healthcare dollars with Medical Savings Account and converted them to Health Savings Accounts with healthcare insurance industry control.

“Physicians and other providers need to liberate themselves from the Faustian bargain they’ve cut with the Mephistophelian suits whom now run their professional lives. Because many doctors are loath to talk about money, they allowed themselves to perpetuate the fantasy that “insurance is paying.” It isn’t. There is no free lunch and no free physical exam.”

One solution is for physicians and patients to abandon the traditional healthcare insurance grip.

Government (local,state or national) or employer associations (third party payers) set up their own healthcare insurance companies. They set rules in favor of the patient with the patient having control over their first six thousand dollars. The patient does not contribute the first 6,000 dollars. One of the third party payers contributes the insurance premium. Self employed people would contribute their own money with pre-tax dollars. If they could not afford the premium, they would be subsidized by the government. This is not an entitlement. This is pure insurance with motivation to save money.

I wonder how many politicians would be willing to past legislation to permit this to happen. It could easily be done on a state level. Consumer would then be able to control the system. We would be able to get rid of what Dr. Kellerman calls the Healthcare Insurance Mafia.

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

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Why Bother?

Stanley Feld M.D.,FACP,MACE

MICHAEL POLLAN wrote an inspiring article about climate change in the April 20, 2008 issue of the New York Times Magazine section.

I have substituted the word healthcare system in my minds eye every time he mentioned climate change. Mr. Pollan is describing exactly what has to be done for the healthcare. His major point is every individual has to get involved. The individual has to be aware of the issues and then act in his self interest and do his small part. The parts will add up to the necessary change.

Why bother? That really is the big question facing us as individuals hoping to do something about climate change, (healthcare) and it’s not an easy one to answer.

Al Gore’s “Inconvenient Truth” is scary, if true. Let us assume global warming is true for this argument. Al Gore’s suggestion to me as an individual seemed bizarre. I am happy to say it was also depressing to Michael Pollan, a person I admire.


“ No, the really dark moment came during the closing credits of Inconvenient Truth, when we are asked to change our light bulbs. That’s when it got really depressing. The immense disproportion between the magnitude of the problem Gore had described and the puniness of what he was asking us to do about it was enough to sink your heart.”

In thinking about it in terms of healthcare and general behavior we as individuals can make a big difference. People are social beings. They need other people. If we can create a trend we can make a difference even if others choose not to follow.

“ But the drop-in-the-bucket issue is not the only problem lurking behind the “why bother” question. Let’s say I do bother, big time. I turn my life upside-down, start biking to work, plant a big garden, turn down the thermostat so low I need sweater, forsake the clothes dryer for a laundry line across the yard, trade in the station wagon for a hybrid, get off the beef, go completely local (with my food purchases).”

If no one else did the same the only impact you would have is for yourself and your self interest. You would save money and improve you wellness. I was terrified to read about tilapia fish farms in Indonesia. How can we allow our government to allow its import? We have no idea of the conditions in Chilean fish farm where “Chilean Sea Bass” comes from. Restaurants make Chilean Bass sound romantic, sexy and expensive. However the details of these fish harvests are chilling.

If we the people change and do little things to improve our health the payback is beyond personal virtue. If everyone does the same the change in society will be enormous.

“ A sense of personal virtue, you might suggest, somewhat sheepishly. But what good is that when virtue itself is quickly becoming a term of derision? There are so many stories we can tell ourselves to justify doing nothing, but perhaps the most insidious is that, whatever we do manage to do, it will be too little too late.”

This is nonsense as science is beginning to show us. Nonetheless, we tell ourselves all kinds of stories to justify our weight, our food intake and our lack of exercise. We can make a difference in our health and healthcare cost if we are determined to change our behavior. Small changes in society’s trend setting can help change behavior for the better.

“ So do you still want to talk about planting your own gardens? I do. Yet it is no less accurate or hardheaded to say that laws and money cannot do enough, either; that it will also take profound changes in the way we live.”

We have seen money and laws cater to vested interests and not societal interests as they should. Individual actions add up. The most profitable center in a hospital is the Bariatric Surgery Center. Hospitals are reformatting themselves to all have Bariatric Centers. They would go out of business if we conquered obesity. This victory can only happen on an individual basis.

“Whatever we can do as individuals to change the way we live at this suddenly very late date does seem utterly inadequate to the challenge.”

So why bother? We should bother because we have a responsibility to ourselves and our children and grandchildren. We have a responsibility to repair the healthcare system before the ability to deliver the greatest healthcare on the planet implodes. We, the people, have to drive the change and make the politicians respond. Politicians are responding to the secondary vested interests.

“ The Big Problem is nothing more or less than the sum total of countless little everyday choices, most of them made by us (consumer spending represents 70 percent of our economy), and most of the rest of them made in the name of our needs and desires and preferences.”

This is the reason we need to own our healthcare dollar. We have to be motivated to drive the change.

“For us to wait for legislation or technology to solve the problem of how we’re living our lives suggests we’re not really serious about changing — something our politicians cannot fail to notice. They will not move until we do. Indeed, to look to leaders and experts, to laws and money and grand schemes, to save us from our predicament represents precisely the sort of thinking — passive, delegated, and dependent for solutions on specialists — that helped get us into this mess in the first place. It’s hard to believe that the same sort of thinking could now get us out of it.”

Michael Pollan hit the nail on the head. Whether it is climate change or healthcare we need to be responsible to ourselves. The inspiration lies in his next example.

“Sometimes you have to act as if acting will make a difference, even when you can’t prove that it will. That, after all, was precisely what happened in Communist Czechoslovakia and Poland, when a handful of individuals like Vaclav Havel and Adam Michnik resolved that they would simply conduct their lives “as if” they lived in a free society. That improbable bet created a tiny space of liberty that, in time, expanded to take in, and then help take down, the whole of the Eastern bloc.”

We have a government for the people by the people. We have tremendous power to influence our government. Our health is our most important asset. It is our responsibility to demand the infrastructure to help us maintain our health.

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

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The Invisible Hand Influencing Destructive Policies

Stanley Feld M.D.,FACP,MACE

My son, Brad, had an interesting item in his blog of December 23, 2007.

And – if you need more for your inner cynic, how about the article in today’s Rocky Mountain News titled Clouds hover in ethanol sky. E85 (assuming you can find it) apparently costs 78% less than regular unleaded gas but gets 71% less per gallon. Since its 85% ethanol, it presumably is less polluting (assuming that the total ethanol lifecycle consumes less energy than gasoline) but doesn’t save the consumer any short term money.”

I believe there is an invisible but real hand manipulating the corn for fuel debate. Each of the powerful stakeholders is simply pursuing its vested interest. The government “sovereign” of Adam Smith should make appropriate rules for the common good. Then the sovereign should get out of the way and let the stakeholders pursue its vested interests.

Several things are clear. Americans are becoming more obese each year. As Americans become more obese they develop more chronic diseases such as heart disease and diabetes mellitus. The increase in these diseases result in an increase in these diseases complications. These complications consume 80 to 90 percent of our healthcare dollar. We do little to nothing to support the prevention of these diseases or complications. The infrastructure of healthcare is on the verge of collapse. It is threatening America’s economic viability.

A large contributor to obesity and diseases resulting from obesity is the ubiquitous processed food. Processed food depends heavily on corn, corn oil and corn syrup. America’s dependence on foreign fossil fuel (oil and gasoline) is also threatening the sustainability of our economy. If we could shed ourselves of this fuel dependence and use renewable fuel sources our economy could remain viable.

A few weeks ago I suggested that our government ban the use of corn products in our food stuff. America should restrict is use for renewable energy only. This rule could solve our obesity problem and energy problem at the same time.

The food industry was bothered by this suggestion because the profit margin on processed foods, though difficult to calculate because costs are so opaque, is tremendous compared to the profit margin for producing fuel from corn. The farm industry could even genetically engineer corn to be 6 feet tall and generate more fuel per seed without adverse public opinion.

If the food industry produces corn for fuel plus foodstuff, they have an excuse to mark up food even higher than they have in the past year.

The fuel industry claims that the amount of fossil fuel to produce corn fuel (ethanol) results in a net increase in the cost of ethanol. Has the fuel industry never heard of solar and wind power to produce electricity to power the production of ethanol? One hundred years ago America used water power mills to generate electricity to manufacture all sorts of products. Water power represents another free electricity generating power source.

The point of the Rocky Mountain News article is that ethanol contains less energy than fossil fuel. Therefore the cost of the fuel is a wash. The cost of producing ethanol would be less if we used renewable sources such as wind and solar power to produce the ethanol. The government would have to make the appropriate rules and provide subsides for renewable sources. However, we would not run out of it or be dependent on others for it.

Recently, the automobile industry fought the government’s requirement for auto fuel efficiency.

I suspect it would be very easy to make ethanol fuel efficient cars. Toyota will show us how to do it. I would bet that our automotive industry could produce engines that would increase the energy output of fuel ethanol by simply modifying the fuel injectors. (Popular Mechanics 2007)

The point is none of the powerful stakeholders want to do any of the above. The government and politicians dependent on backing from these powerful stakeholders will not step forward and make these innovative changes.

We have not heard one presidential candidate from either side make any of these points. Americans are very good at spinning a story to manipulate public opinion and marginalize the value of these innovations to protect its vested interest.

It will take counter spin by the public to force the politicians to make policies that are for the public good. Now is not the time to complain and be cynical. It is time to act. America has the infrastructure to act in the internet and blogosphere. If social networking gets serious the power will return to the people.

Citizens have to create an environment where we are no longer a sound bite society. We must understand the details, and create the paradigm shift through public opinion for the public good. We have seen this happen rapidly. It is time to stop being manipulated by the invisible hand that uses media spin to manipulate us.

America can and must solve its healthcare problem and fuel crisis. We can do it with innovative thinking and appropriate rules.

The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone.
Stanley Feld M.D.,FACP,MACE

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Romney’s Universal Healthcare Plan Anticipates Large Cost Overruns

Stanley Feld M.D.,FACP,MACP

Universal Healthcare coverage is an important idea. It is not synonymous with a single party payer as some would like us to believe. When Mitt Romney was governor of Massachusetts he had a bipartisan bill passed for universal healthcare coverage. The coverage was going to be provided by multiple insurance companies. Governor Romney’s goal was to achieve universal healthcare coverage using the private sector. Market forces were supposed to control costs and there would be no need for government single party payer.

I predicted the Romney plan would not work. The reason is simple. The rules of the game were not changed for the insurance industry, the hospital systems and the physicians. The reason this important idea cannot work is because the program was superimposed on the rules of a broken healthcare system.

The patients thought they were going to get a good deal because now they had guaranteed coverage. Mitt Romney was a hero of the people. As soon as the legislation was passed the insurance industry was fighting over the premium price. The premium is expected to rise next year.

“Enrollment in the state’s new subsidized health plan is growing so quickly that the state could face a funding gap as large as $147 million by the end of the fiscal year, according to a state projection.”

“It’s a good problem to have – people are getting insured and hopefully getting care,” said state Senator Richard T. Moore, cochairman of the Legislature’s Health Care Financing Committee. “But any shortfall is a big deal.

The subsidized program is part of the state’s unprecedented initiative requiring nearly all residents to have health insurance. Even if the gap reaches $147 million, there is no indication it would cripple healthcare reform.

“It’s too early to make any departure from the health reform plan,” said Leslie Kirwan, secretary of administration and finance and chairwoman of the Commonwealth Health Insurance Connector. “We will follow the trends and adjust, if needed.”

This is a lame bureaucratic statement preparing the state of Massachusetts for a tax increase.

“Financial pressures will grow for fiscal 2009, which begins July 1, since insurers who participate in the subsidized program are expected to ask for significantly higher payments from the state. In addition, there is uncertainty about how much the federal government will contribute toward the total cost.

The state budgeted $472 million this fiscal year for the subsidized program, based on enrollment estimates made last winter. The program, called Commonwealth Care, provides comprehensive insurance to people without access to work-based coverage who earns less than 300 percent of the federal poverty level, or about $31,000 for an individual. The state money pays the full premium for the lowest-income residents and subsidizes the rest. Members are responsible for small co-payments.

Outreach has resulted in more than 133,000 people signing up. If enrollment reaches the high estimate of 178,280 by June 30, Holland said, the state cost could hit $619 million.

The enrollment booms “is a sign of success, not failure,” said John McDonough, executive director of the advocacy group Health Care for All. “The sky is not falling. There’s a budget challenge.”

Massachusetts has a lot of “budget” challenges.

“McDonough also said the higher enrollment suggests that there are more uninsured people in Massachusetts than state surveys showed.

Commonwealth Care is one part of the state’s effort to cover the uninsured.
The state has some flexibility built into its $27 billion budget to help fill the likely gap. Kirwan can shift money from the $448 million Health Care Safety Net Trust Fund, which pays for care at hospitals and health centers for uninsured patients.

Long-term funding of healthcare reform depends, in part, on shifting more and more of those funds to insurance subsidies over the next few years.

However, this year’s state budget includes significantly less money than last year’s for the safety net, and spending in that account last year did not go down as much as some had expected, according to preliminary figures.

Hospital officials are concerned about getting stuck with unpaid bills.
Boston Medical Center and Cambridge Health Alliance negotiated a special deal in the health reform law that guaranteed them $287 million a year through 2009 in fees and increased Medicaid rates
“This is one of many warning signs, especially in tandem with the projected state budget deficit and the skyrocketing cost of healthcare in the state,” said Alan Sager, professor of health policy and management at the Boston University School of Public Health. “The [healthcare] law is very shaky on the revenue side.”

Mitt Romney’s plan does not include price transparency on the part of all stakeholders. The plan does not provide consumers with ownership of their healthcare dollar. The plan does not encourage competition. The result of the plan has to be failure with cost overruns using the rules of the present healthcare system.

When the plan fails the healthcare wonks who promote a single party payer system will claim the failure of the Romney plan has proven that universal healthcare has to be regulated by the government as the single party payer

The only thing the Romney plan demonstrates is a governments lack of understanding of the problems in the healthcare system. The plan does not speak to the issue that 80% of the healthcare dollar is spent on the complications of chronic disease. This is where the most saving can be achieved.

It does not face the issue that we have to deal with the obesity problem in the country.

It does not deal with the insurance industry’s abuse of its power or the abuse of all the stakeholders.

It does not deal with patients’ responsibility for their care or their need to own and control their healthcare dollar. A Romney like plan will only succeed when we deal with these defects in the healthcare system.

It deals only with the concept of how much money we are going to put in the system and whom we will penalize. If the plan had been constructed correctly and motivated patients to create a competitive healthcare system, the universal healthcare concept of Romney and Schwarzenegger would have a chance to succeed.

Hillary Clinton’s healthcare proposal is similar in that it is also built for failure. Failure proves the concept does not work. The replacement will be a single party payer.

The consumer is the only one who can force politicians to understand the problems in the healthcare system.

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Physician Focused Price Transparency: Raw Medical Claims Data: The Wrong Measurement To Control Cost

Stanley Feld M.D.,FACP,MACE

The real problem with raw medical claims data is that it will be misleading to the public. Its use will not measure the quality of medical care accurately.

In the meantime “Health insurance premiums up 6.1%, fast outpacing inflation and wages”.

During a recent lecture a physician asked me why are healthcare insurance rates rising at such a rapid rate and I have not received a reimbursement increase in 8 years? The answer is simple. All the other stakeholders are increasing the cost of healthcare.

I have discussed price transparency in detail. The error in using raw medical claims data is it is creating another false hope. It will not reveal overhead costs of the healthcare insurance industry or the actual costs for the delivery of care by hospital systems. Other sources are available to reveal hospital system charges and reimbursement. We do not have a way to evaluate hospital system costs. We have mentioned the $11 aspirin built into hospital charges, the one million dollar plus annual salaries of hospital administrators, the ten million dollar plus annual salaries of healthcare insurance company administrators. These numbers increase each year without explanation or analysis of its impact on the cost to the healthcare system. We must demand the analysis of these costs.

“These data are not so transparent and certainly not beside the point. Real healthcare data is hard to find and define.
Everybody wants a clear view of the cost and quality of healthcare. But defining this “transparency” is not an easy task. It is a task that physicians, insurers and the federal government continue to struggle with. These days there’s a lot of talk about making the cost and quality of health care more understandable to patients. But this transparency, like beauty, is in the eye of the beholder. While physicians and insurers each express support for transparency, there is a battle over what measures and techniques should be used to achieve it. Even the definition of price transparency is in flux.”

“ There is a concern among physicians that without physician clear direction and input, transparency initiatives aimed at the physician might mislead patients into thinking that healthcare insurance plans are paying doctors more than they actually are and that physicians are overcharging. Physicians also worry that plans are not using the correct and most complete information to rate quality, thus misrepresenting doctors, particularly those who take high-risk cases.”

In the discussion of medical claims data the real issue of the increase cost to the healthcare system is avoided. Remember, eighty percent of the healthcare dollars are spent on treating the complications of chronic disease. Neither insurers nor the government adequately do anything to support the prevention of chronic disease. Let us suppose the insurers did support the prevention of the complications of chronic disease. The additional monetary support would lead to the development of innovative techniques to prevent the onset of chronic disease.

Patients need to work hard to prevent the onset of chronic disease. Patients with a chronic disease have to be taught to be the “professor of their disease’ and work hard to prevent the onset of the costly complications of chronic disease. This can be done with the aid of their physician assuming he has the economic incentive to help the patient manage their chronic disease. These educational processes are not adequately supported economically at the present time.

Patients are ultimately responsible for their lifestyle behaviors. Patients are not doing a good job preventing chronic disease or the onset of the complications of chronic disease. Obesity is at the root of precipitating many chronic diseases, yet obesity in America is growing at an alarming rate.

Are patients to blame for the obesity in America? The answer is they are partly to blame. However, they are bombarded with external stimuli that promote obesity. My solution to obesity in America is for congress to pass a farm bill that does not subsidize mega farm corporations for producing harmful foodstuff. If congress passed a farm bill that banned the use of corn, corn products, soy and soy products as well as sugar and sugar products in food and shifted its foodstuff use to produce oil we would go a long way to solve America’s obesity problem as well as our dependence of foreign oil. I would also subsidize public education through public service campaigns to promote healthy food intake, increased exercise and healthy lifestyle changes. The public is needs this information. It broadly support the megavitamin and supplement industry in an effort to promote its good health.

Neither the insurance industry nor government supports programs that enhance compliance or adherence to medical therapy. Innovative programs rewarding patients are relatively easy to construct if industry and government would support these programs. Nationally, patient adherence to medical therapy is about 50%. Wal-Mart’s generic drug program has gone a long way to increase the affordability of drug therapy and increase adherence.

The issue of transparency and raw medical claims data can now come into focus as being inadequate to judge the quality of the therapeutic interaction. We are only going to reduce the cost of healthcare if we decrease the complications of chronic disease and not by evaluating quality medical care inaccurately.

This is going to take co-operation of all the stakeholders. The way to motivate patients to control cost is to have them own their healthcare dollar and provide incentives for them to use those dollars wisely. If we took the steps outlined much of our healthcare costs would decrease and the health of the nation would increase.

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What Does Chronic Disease Management Mean? Part 2

Stanley Feld M.D.,FACP,MACE

The responsibility for the control of the onset of the complications of chronic disease is the responsibility of the patient. Patients live with their disease 24 hours a day and need to learn how to manage it.

There are 20 million patients with Type 2 Diabetes Mellitus in America. This number is growing every day because we are experiencing an obesity epidemic. As I have previously discussed, this epidemic is the fault of our cultural conditioning.

The physician’s responsibility is to teach the patient how to manage his chronic disease.

Imagine you were told you have Type 2 Diabetes Mellitus. Think about your potential emotional responses. Think of all the bad things you have heard about diabetes mellitus. Think about the fantasies you would have about your future morbidity and mortality. These fantasies are the result of the media information and free public service campaigns various organizations have to heighten awareness about Diabetes Mellitus.

The complications of Diabetes Mellitus cost the healthcare system at least $150 billion dollars per year. At a July 4th party, I spoke to a diabetic patient who has had diabetes mellitus for thirty years. He became a professor of diabetes mellitus 28 years ago and has had his blood glucose levels under exquisite control. He has not suffered one complication of diabetes mellitus. There are many patients like this patient.

How does one start to teach patients to be the professor of their disease? I believe it is important for readers of this blog to understand what patients need to learn. It is also important for readers to understand how this process of self-management is a continuous learning project for both the patients and the physicians. The patients’ effort and responsibility in controlling this chronic disease is enormous, and can be very difficult.

You have just been told you have Type 2 diabetes mellitus. If I describe what needs to be learned you can start understanding how this empowerment could result in better control of the blood glucose level. You could also understand how the information could extinguish your fantasies and anxieties about diabetes mellitus. The result would be a decrease in the complication rate of Diabetes Mellitus.

The teaching process has to be a coordinated effort between the physician and the Diabetes Care Team, the nurse educator, dietician, and exercise therapist. We start by teaching patients what Type 2 Diabetes Mellitus is,
why they got it, and how they can reverse Type 2 Diabetes or at least control the rising blood sugar. If patients understands the pathophysiology they know the enemy. They are not frightened about the consequences of the disease. Then a plan can be developed for patients to actively self manage their disease.

At least 20% of the population has the genetic tendency to develop Type 2 Diabetes Mellitus. The genetic defect is an underlying resistance to their own insulin. We have insulin receptors on every cell in our body. These receptors attract insulin. The insulin receptor/insulin combination permits our cells to absorb circulating blood glucose. Once in the cells the glucose gets metabolized to carbon dioxide and water. In the process, packets of energy (ATP) are stored in our cells.

Increasing weight, stress, decreasing exercise, and development of infection decrease the insulin receptors affinity to attack circulating insulin. In effect you have an increased resistance to your own insulin. These external factors are additive to the underlying genetic defect. The more weight gained, the less exercise done and the more stress one has the greater the insulin resistance. As the effective insulin receptors decrease (increased insulin resistance) our body produces more insulin to compensate for this increase in insulin resistance. Over time we can not compensate with sufficient output of insulin to overcome the insulin resistance and our blood glucose rises.

Diabetes Mellitus is defined as a fasting blood sugar of greater than 126mg% on two occasions. Patients can have fasting blood glucose of greater than 126 mg% for many years without symptoms. Many people, mostly men, do not have periodic blood glucose measurements.

High blood glucose levels are the cause of the complications of Type 2 Diabetes Mellitus. The complications are eye disease, kidney disease, neurological disease and heart disease. The average time from the onset to the diagnosis of Type 2 Diabetes Mellitus has been calculated as 8 years. The average time of onset of complications of diabetes varies with the height of the elevation in the blood glucose levels. If you do not recognize that your blood glucose is elevated because you are asymptomatic you can not appreciate that you are harming your body. Many patients first discover they have diabetes mellitus when they are in the Cardiac Care Unit after suffering the cardiovascular complication (heart attack) of Type 2 Diabetes Mellitus.

Why does a high blood glucose level cause eye disease, kidney disease, neurological disease and heart disease? I have observed that once people understand the concept they become motivated to control their blood glucose levels.

Understanding causality is simple. A graphic way of understanding the process is to know that sugar helps alter proteins. The process of converting cucumbers to sour pickles comes to mind. You mix water, vinegar, salt, spices and sugar together. Then add cucumbers to the liquid and put the container in the closet for two weeks. The cucumbers have turned to sour pickles because the proteins in the cucumber have been deformed.

One can think of a person with a high blood glucose level deforming all the proteins in their body. They are essentially pickling all the cells and vessels in their body. The blood vessels narrow because the cells lining the blood vessels are deformed. For example, If there is not enough blood supply to the eye, the body tries to compensate by making more vessels. These new blood vessels (neovascularization) float on the surface of the retina and are fragile. If they bleed, patients can become blind. This narrowing applies to the blood vessels around nerves resulting in neuropathy. As blood vessels narrow, nerve endings will fire ineffectively. Many times these nerve ending misfires are painful. Many patients lose feeling in their extremities as a result of misfiring of nerve ending.

The hemoglobin molecule carries oxygen to the cells of the body. Each red blood cell has a 120 day life cycle. If a red blood cell is born in a high glucose environment it gets deformed or pickled and rather than being a simple Hb molecule it is now a HBA1c molecule. The higher your HBA1c level is, the higher your average blood glucose level has been over the three month period of time. A normal HbA1c level is under 6%. The HbA1c is that high in normal people because after a meal a normal blood glucose can go as high as 160mg%. National laboratories have calculated that the average Type 2 diabetic has a HbA1c of 9.2%. This finding means that neither patients nor physicians are doing a very good job in lowering the HbA1c to normal.

The patient I referred to earlier with diabetes for 30 years has a HbA1c level of 5.5%

Next time I will describe how that goal of a normal HbA1c can be achieved by the patients. It is the essence of the principle of chronic disease management. Normalization of the HbA1c levels can reduce the complication rate of Type 2 Diabetes Mellitus by at least 50%. It can theoretically reduce the complication rate of Type 2 Diabetes Mellitus by 100%. Fifty percent of $150 billion dollars is not a shabby dollar amount toward the repair of the healthcare system. However, the necessary education process to empower the patients to control their blood glucose levels and prevent obesity is not supported by society, the insurance industry or the government.