Thursday, April 10, 2014

Promoting Mediocrity through Medicare



By Garrett Hyman, MD, MPH

An article in today's NY Times applauds the public release of Medicare data on provider payments (http://www.nytimes.com/2014/04/09/business/sliver-of-medicare-doctors-get-big-share-of-payouts.html).  The authors, Reed Abelson and Sarah Cohen, state, "While total Medicare spending - including hospitals, doctors and drugs - is approaching $600 billion a year, payments to doctors have long been shrouded in secrecy."  Sounds a lot like the start of a suspense novel.  One might imagine these journalists have uncovered a clue that might lead to the big arrest that makes our nation safer from the epidemic of corrupt and opportunistic physicians -- like an episode of "CSI: CDU (aka Corrupt Doctors Unit)" -- as if this group of highly motivated and intelligent, type-A, over-educated, devoted, hard-working, do-gooders is prone to acts of mal-intent.  Follow the money, and you will see the trail ends in your doctor's wallet -- is the obvious message of this article.     

The implication is that this now open-source information about the Medicare earnings of your doctor will finally provide you with critical financial information that will allow you to make more informed healthcare choices.  Specifically, you learn what your doctor bills and what your doctor is paid, and the numbers of procedures your doctor performed in 2012 on Medicare patients.  Then with this data you decide whether or not, for you, your physician is the most appropriate.  So let's try it out....using my Medicare payment data as an example.....say you're a 35 year old male Microsoft employee and avid soccer player with knee pain....you search the database and find that I've performed 30 'Arthrocentesis, aspiration and/or injection......large joint...including the knee' on 18 Medicare patients, for which I charged an average of $195 per procedure, and was reimbursed on average $57.  

Alright now, we have the data -- let's be deliberate, methodical and purposeful, and logically sort through these numbers to make an informed healthcare decision.  Can we relate this to healthcare quality?  No.  Outcomes?  No.   Efficiency?  No.  How can the healthcare consumer make use of this data?  I don't know.  Now, should you be a healthcare insurer looking to identify physicians that perform higher numbers of procedures so that you can refuse admission to, or drop a physician from your panel, well then this data may come in handy.  There's a way to increase corporate profits!  Never mind that, said physician, may be THE regional expert in restoring function to patients with chronic musculoskeletal problems with office-based and cost-effective approaches, specifically using targeted injection procedures, thereby helping these patients avoid a more costly surgery.  Where does the Medicare payments data tell you this important information?  It doesn't.

What should it cost to manage the knee pain of a 35 year old soccer player?  The answer -- it depends.  As you might expect, not all knees and not all persons are created equal.  I won't attempt herein to go into all of the potential causes of knee pain in an active 35 year old -- that's a treatise to itself -- but rest assured, there are many unique causes.  In fact, it is just this unique variation that creates the need for...you guessed it...dedicated, expert healthcare providers.    

I have no idea whatsoever how to make this data useful for either the 35 year old soccer athlete or the 80 year old masters tennis player with knee pain.  

I'm an experienced specialist physician, and I can't follow the logic.  Can you?  

Interestingly, the article authors did find a physician who can make use of this data; only he no longer practices medicine.  They quote a physician turned venture capitalist, Bob Kocher, who says "This is actually the most useful dataset that Medicare has ever released."  They also note that Dr. Kocher formally served in the Obama administration before parlaying his political influence into a plum job.  Now Dr. Kocher diagnoses more lucrative ways to make a living rather than treating patients.  What irony in the authors' choice to support their narrative of the corrupt physician (and to be clear, I do not, at all, fault any enterprising physician who elects to leave medicine to purposefully pursue a profit)!  Dr. Kocher is correct in one important respect -- this will be the most useful dataset ever released by Medicare for health insurers and for industry who can then use this data to select out specific physicians for their proclivity to perform procedures.  For example, the pharmaceutical company that makes a drug or device that is delivered via joint injection would love to know that I perform twice the number of joint injections compared to Dr. Smith down the street -- much easier to target their marketing directly to me!

NY Times columnists Abelson and Cohen paint a decidedly grim picture of the financial practices of American physicians who participate in Medicare.  They go on to relate, per a NY Times analysis of the data, that "about 2 percent of doctors account for about $15 billion in Medicare payments, roughly a quarter of the total."  The article notes that "the American Medical Association and others have blocked the release of information (for decades)."  How incredibly devious and unscrupulous of these medical-mafioso!  How the plot thickens as we see that it is not only individual doctors but also organized medicine is 'on-the-take.'

This, in truth, is a precautionary tale of misguided though perhaps well-intended persons of influence (i.e. government and the media) who have it all wrong, but have the influence to widely spread a fallacy and in so doing generate strong negative popular opinions about the individuals sworn to uphold our nation's health.  Go ahead, hate your doctor(s).  And when your doctor decides to turn in his stethoscope for a consulting job or a stockbroker license, be sure to ingratiate yourself with your new care provider, likely a physician assistant or nurse practitioner, because it's going to be hard to get an appointment , and they work on the clock!

Go ahead and make this government financial data transparent.  I'm very comfortable with financial transparency.  (I've cut and pasted my personal data below for all readers)

And so, while we know the villain, the heroes in this story include, "fraud investigators, health insurance plans, researchers," and of course, the NY Times -- they will "spend weeks poring over the information about how many tests were ordered and procedures performed for every provider who received Medicare payments under Part B."  They've clearly figured out the conundrum of skyrocketing healthcare costs.  It was the doctors all along!  Uh, no.  Physician earnings do represent a significant piece of total healthcare costs.  But this piece is approximately 8% of total healthcare costs in the USA (see http://lakewass.blogspot.mx/2014/02/meet-expert-brian-white-do-particular.html for a more detailed discussion) -- a significant sum of money, yet even if we eliminated all payments to physicians, clearly we would make little progress in controlling overall costs.

And think about how backwards it is that physician compensation makes up such a SMALL piece of healthcare spending.  We should pay our physicians handsomely, particularly those that provide exceptional care.  In many other areas of life we are more than willing to pay top dollar for the best services or items.  For example, Nordstrom's has built their business around providing the very best customer service experience in their industry -- their prices are higher than Macy's and JC Penny, yet discriminating customers are more than willing to pay extra because they trust in Nordstrom's satisfaction guarantee and fabulous return policy.  I know that when it comes to a dining, hotel, or other hospitality experience, I prize excellent service above all else.  I will pay a premium for excellent service.   

I just had the good fortune of spending several days at a resort in Mexico, Las Ventanas Al Paraiso (LVP).  The staff essentially redefined for me and my wife the notion of "5 Star Customer Service."  Our previous experiences with top notch hospitality service were at the hands of the Ritz Carlton and the Four Seasons.  But the LVP team sets the gold standard.  They are always professional, deliberate in their service, and they clearly take pride in everything they do, from setting your lounge chair in the shade, to expertly preparing your turn down service which includes, as you desire, a warm drawn jacuzzi bath.  The embody hospitality in its truest form.  The word, "no," seems not in their lexicon.  A frown may appear across the face of an LVP team member only in the event they cannot fulfill a promise or satisfy the whim of a guest.  When our romantic custom beach-side theater DVD movie event hit a glitch (the last 30 mins of the movie wouldn't play), the team worked hard to find an immediate solution, and when they couldn't, they apologized profusely for days, and then surprised us with an in-room theater with an HD projector, bottle of champagne, and all the popcorn, candy, and chocolates that one could wish for.  They constantly are checking in; for example, if you desire a shaded lounge chair, the pool attendant literally follows the sun for you, making regular adjustments to your shade-providing umbrella.  They run, not walk, to provide assistance when you make a solo attempt to adjust the angle of the head of your lounge chair.  The LVP staff, on the whole, behaves as if every team member is an owner of the business.

We need medical doctors who focus on patients, not healthcare systems.  

And so how does this freshly available Medicare financial data relate to your healthcare goals?  Now you know.

Results: 1 health care provider named “Hyman” in 98004
Garrett Hyman                                                                         tOTAL REIMBURSED
1632 116th Ave Ne, Bellevue, WA                                          BY MEDICARE IN 2012
Physical Medicine and Rehabilitation                                        $61,801


SERVICE
PATIENTS
TIMES
PERFORMED
AVG.
BILLED
AVG.
REIMBURSED
18
30
$195
$57
27
34
$660
$111
23
30
$175
$25
26
93
$125
$57
18
19
$315
$77
39
39
$220
$90
73
73
$320
$136
61
80
$155
$60
91
170
$200
$89
26
147
$125
$51
20
31
$325
$180
19
21
$275
$110
Source: The information presented here is from a database released by the Centers for Medicare and Medicaid Services. The database excluded, for privacy reasons, any procedures that a doctor performed on 11 or fewer patients. The total reimbursements for each doctor does not include those procedures either. Results shown above include only the individuals like doctors, nurses or technicians but not organizations like Walgreens. While some providers could have multiple offices, the address shown is the main address indicated in the database. Descriptions of the procedures are from the American Medical Association.© 2014 The New York Times Company

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