If I were health czar – steps to decrease health care costs

13 Jan
2009

 

First, I would not want to be the health czar.  I like my current position.  Still, it is fun to provide advice from the sidelines.

Our job is to consider health care costs and which are unnecessary.  I have some candidate categories for potential health care savings.

Our biggest hurdle remains the privacy issue.  We could save considerable money in duplicated testing if we had a national medical record repository.  As I have experienced through the VA electronic medical record, I can save time and unnecessary testing through access to all VA records.

Too often I see patients have expensive testing repeated when they move from one hospital to another.  Too often the physicians at the new hospital do not "trust" the physicians or the technology at the first hospital.  Radiologists often do not want to read the images from the first hospital.

Too often we do not have access to old ECGs.  We do not have a master file of prescriptions.  Often we do not have records of previous surgeries. 

Any hospitalist will tell you the knowing old lab tests improves decision making.  Having access to old films and other imaging can save unnecessary repetition.

So my first major strategy would focus on making information available to all physicians.  The privacy concerns would require some consideration, but I believe the improvement in health care delivery and decrease in unnecessary repeat testing would trump those privacy issues.

The second major concern is over use of technology in the emergency department.  Ask any practicing physician about testing in the ED.  Patients have too many imaging studies.  I think we all understand why those studies are done, but a significant percentage are clearly unnecessary.

Now clearly, ER physicians have a high exposure to malpractice claims.  When in doubt, they image.  The emergency department is often overwhelmed with patients, so technology trumps the history and physical examination.  We need a multispecialty panel to develop reasonable standards for technology use in the ED.

The thrid concern is unnecessary use of newer more expensive drugs.  I am a big fan of comparative effectiveness research.  I want to choose appropriate drugs based on data rather than hype.  Unless we fund comparative effectiveness research, we really do not know how and when to use the latest entry into the pharmaceutical market.

My fourth concern is pharmacological education.  We need to do a better job of minimizing the number of medications each patient takes.  So often I see patients admitted to the hospital with >10 prescriptions. Usually, we can decrease the number of meds.

As the number of medications increases, so does the chance of interactions, side effects and decreased adherence.  We are not teaching pharmacology properly during the first two years of medical school, and we rarely focus on pruning medical lists during clinical training.

Today’s last concern is palliative care.  We should increase funding for palliative care training and delivery.  We spend too many unnecessary dollars during the last hospitalization.  Too often we cause unnecessary suffering for patients and their families.  We could do a much better job of treating patients rather than diseases during the terminal phase of illness.  We sometimes use ICU resources unnecessarily, because we do not have a palliative care mindset, and we just have not discussed these issues with the patient and the family.

I am certain that my outstanding readers have other suggests for the czar.  Please comment and I will respond.  Perhaps we could even develop a health care bloggers guide to decreasing health care costs!

 

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15 Responses to If I were health czar – steps to decrease health care costs

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Aaron

January 13th, 2009 at 7:44 am

Might there be significant cost savings in finding ways to keep non-emergency patients out of the ER in the first place? e.g., weekend walk-in clinics for non-emergencies, urgent care centers instead of hospitals for lesser crises? Give ER physicians a bit more breathing room to examine patients, by reducing the crowds in the waiting room? (I’m asking, not claiming to have answers.)

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The Happy Hospitalist

January 13th, 2009 at 4:57 pm

Where are your recommendations for the patient side of the equation. The patients have, within their power to do more about the cost of health care than all your recommendations put together.

Smoking, obesity and lack of physical exercise are directly responsible for almost ever one of the top ten reasons people are hospitalized in this country.

When was the last time you saw a 5 foot 8 cross country marathoner in the hospital for type II DM. Or COPD?

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docanon

January 14th, 2009 at 8:00 am

Aaron, you have a good idea. But you might be surprised at who opposes it: the American College of Emergency Physicians. If you look at their position statement opposing the patient-centered medical home, they clearly fear that a competent PCMH will keep non-emergent patients out of the ED. They actually argue for “preserving access” to the ED for such patients!

Why do they do this? Money, money, money. Non-emergent cases are huge moneymakers for EDs. When you can bill $2000 for a sore throat, you know where your gravy is.

Fix the payment system, and you take away this ED opposition to rational health reform. Like Uwe Reinhardt keeps saying, nearly all of our health system problems boil down to a bad pricing system. Fix the prices; save the system.

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Jim Stackhouse, MD

January 14th, 2009 at 10:09 am

Having just seen an ER report on an assisted living patient transported to the ER for a asymptomatic hemorrhoid discovered by her aide during a bath, that even the patient knew “what it was,” I have my doubts that we will be able to reduce ER access in any fashion.

JCAHO and others are even encouraging such practices by requiring hospitals to set up “fast track” processes to take care of such non-emergencies.

In other communities, hospitals are advertising their ER’s for sore throats and other “grandmother would know how to take care of this” medical problems.

EMTALA and malpractice make it impractical to discourage such visits, and often the transportation (at least one way) is free!

Such factors make reducing the payment for such services the only deterrent, penalizing hospitals even further. I don’t see much incentive for patients not to abuse the ER under those constraints.

As for EMR and electronic record availability: I have my doubts that the referral centers will change their habit of finding locally produced studies, CT’s MRI’s, etc., to be sufficient, even if electronically available, when evaluating referred patients. I await such proof of reduced costs by electronic medical records, except in a budget limited system such as the VAH.

The reality is that some form of rationing, whether determined by physicians, fixed budget hospitals, or bureaucrats, will be needed to control health care costs in the future.

MEDPAC, by the way, just recommended to CMS that the equipment component of imaging payments now be based on 45 hours of use per week, rather than the previous 25. If enacted, that will result in a substantial reduction in Medicare payments for imaging in the next Medicare year.

Jim

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d b gillespie...

January 15th, 2009 at 5:51 pm

bob…love your comments, especially the e.r. and excessive xrays, etc. …i am curious as to the origin of db in “db’s medical rants”…thanks…db

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Matt

January 17th, 2009 at 3:07 pm

“Now clearly, ER physicians have a high exposure to malpractice claims”

What is their exposure, either in general or relative to other types of physicians, and to what extent does additional testing reduce it? If that’s why they’re doing it, does anyone know if extra imaging actually works to reduce that exposure?

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Cole

January 18th, 2009 at 5:29 pm

Please do not forget that one major source of imaging from the ED is that the ED is becoming a gatekeeper to radiology. Due to excessive waits for PCPs to get patients into CT/MRI, oftentimes I see these patients in my ED (either with or without a phonecall referral from the PCP) in order to provide access to “necessary testing.” I get no complaints from my radiologists, who see no need to increase access because “they can get it in the ED”, which of course then further delays/takes up valuable scheduled appointment slots. It’s a vicious circle.

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Steven Davidson

January 18th, 2009 at 5:52 pm

Specialist physicians want it this way. See my post at Emergency Physicians–When in doubt, they image

/Steven

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CT scans in the ER, are emergency doctors ordering too many tests? | Telecom News

January 21st, 2009 at 12:09 am

[...] one point, he calls out emergency physicians, saying because of high exposure to malpractice claims, “technology trumps the history and [...]

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Christian

January 21st, 2009 at 11:48 am

I think that CT in the ED is an easy target; but is unlikely to make much of a dent in health care costs. I think the largest “misuse” or overuse of technology lies in the early adoption of new gadgets before there is good evidence behind them (CT angiography of cardiac vessels is a case in point) – which I think is basically your point about the adoption of new-fangled drugs.

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Martyn Howgill

January 25th, 2009 at 3:55 pm

Dear Health Czar!

Largely I would agree with your recommendations and caveats. I would only add that comparative effectiveness in the face of severe budgetary pressure can all too easily default to “cheapest is best.”

Regardless of its deficits, among the benefits of the American health system is its continual creation of advanced medical technologies, especially the accelerating innovation rate among devices and diagnostics. At the Institute for Health Technology Studies (www.inhealth.org) we devote our grant awards to understanding their social and economic impacts.

A meta conclusion of our work to date is that properly used, the innovative technologies introduced over the past couple of decades have significantly extended life, reduced disabilities and contributed positively to the economy through a healthier work force.

Sadly, societal trends – obesity, diabetes and population growth – combined with less invasive, less painful and more tolerable procedures have together produced increased demand and volume. In part, our rising total costs are the result of our success at innovation.

So if I could add to your list of steps to decrease health costs, I’d invest a good chunk of the proposed Recovery Plan in increasing, not decreasing availability of and access to advanced technologies for everyone. In doing so, we’d prevent and detect disease earlier, lower treatment costs and make our population healthier despite themselves.

To do this would require more resources at FDA for proper but speedier oversight of innovation and quicker coverage decisions at CMS for approved procedures.

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Dan

January 27th, 2009 at 10:43 am

Our Health Care System

The following are facts that are believed to exist regarding the present U.S. Health Care System. This may be why about 80 percent of U.S. citizens understandably want our health care system overhauled desperately due to the inadequate health care they receive and access:
The U.S. is ranked number 42 related to life expectancy and infant mortality, which is rather low.
However, the U.S. is ranked number one in the world for spending the most for health care- as well as being number one for those with chronic diseases. About 125 million people have such diseases. This is about 70 percent of the Medicare budget that is spent treating these terrible illnesses. Health Care costs are now well over 2 trillion dollars of our gross domestic product. This is three times the amount nearly 20 years ago- and 8 times the amount it was about 30 years ago. Most is spent with medical institutions, as far as health expenditures are concerned. One third of that amount is nothing more than administrative toxic waste that does not involve the restoration of the health of others. This illustrates how absurd the U.S. Health Care System is presently. Nearly 7000 dollars is spent on every citizen for health care every year, and that, too, is more than anyone else in the world.
We have around 50 million citizens without any health insurance, which may cause about 20 thousand deaths per year. This includes millions of children without health care, which is added to the planned or implemented cuts in the government SCHIP program for children, which alone covers about 7 million kids.
Our children.
Nearly half of the states in the U.S. are planning on or have made cuts to Medicaid, which covers about 60 million people, and those on Medicaid are in need of this coverage is largely due to unemployment. With these Medicaid cuts, over a million people will lose their health care coverage and benefits to a damaging degree.
About 70 percent of citizens have some form of health insurance, and the premiums for their insurance have increased nearly 90 percent in the past 8 years. About 45 percent of health care is provided by our government- which is predicted to experience a severe financial crisis in the near future with some government health care programs, it has been reported. Most doctors want a single payer health care system, which would save about 400 billion dollars a year- about 20 percent less than what we are paying now. The American College of Physicians, second in size only to the American Medical Association, supports a single payer health care system. The AMA, historically opposed to a single payer health care system, has close to half of its members in favor of this system. Less than a third of all physicians are members of the AMA, according to others.
Our health care we offer citizens is the present system is sort of a hybrid of a national and private health care system that has obviously mutated to a degree that is incapable of being fully functional due to perhaps copious amounts and levels of individual and legal entities.
Health Care must be the priority immediately by the new administration and congress. Challenges include the 700 billion dollars that have been pledged with the financial bailout that will occur, since the proposed health care plan of the next administration is projected to cost over a trillion dollars within the first year or so of the proposed plan to recalibrate health care for all of us in the U.S. Yet considering the hundreds of billions of dollars that are speculated to be saved with a reform of the country’s health care system, health policy analysts should not be greatly concerned on the steakholders who may be affected by this reform of our health care system that is desperately needed. Tom Daschle leads this Transition’s Health Policy Team. And we also have Ed Kennedy, the committee chair and a prolific legislator. So if the right people have been selected for this reforming team, the urgency and priority regarding our nation’s health care needs should be rather overt to the country’s citizens.
Half of all patients do not receive proper treatment to restore their health, it has been stated. Medical errors desperately need to be reduced as well, it has been reported, which should be addressed as well.
It is estimated that the U.S. needs presently tens of thousands more primary care physicians to fully satisfy the necessities of those members of the public health. This specialty makes nearly 100 thousand less in income compared with other physician specialties, yet they are and have been the backbone of the U.S. health care system. PCPs manage the chronically ill patients, who would benefit the most from the much needed coordination and continuity of care that PCPs historically have strived to provide for them. Nearly have of the population has at least one chronic illness- with many of those having more than one of these types of illnesses. A good portion of these very ill patients have numerous illnesses that are chronic, and this is responsible for well over 50 percent of the entire Medicare budget.
The shortage of primary care physicians is due to numerous variables, such as administrative hassles that are quite vexing for these doctors, along with ever increasing patient loads complicated by the progressively increasing cost to provide care for their patients. Many PCPs are retiring early, and most medical school graduates do not strive to become this specialty for obvious reasons. In fact, the number entering family practice residencies has decreased by half over the past decade or so. PCPs also have extensive student loans from their training to complicate their rather excessive workloads as caregivers.
Yet if primary care physicians were increased in number with the populations they serve and are dedicated to their welfare. Studies have shown that mortality rates would decrease due to increased patient outcomes if this increase were to occur. This specialty would also optimize preventative care more for their patients. Studies have also shown that, if enough PCPs are practicing in a given geographical area, hospital admissions are decreased, as well as visits to emergency rooms. This is due to the ideal continuity in health care these PCPs provide if they are numbered correctly to treat and restore others. Also, the quality improves, as well as the outcomes for their patients. Most importantly, the quality of life for their patients is much improved if there are enough PCPs to handle the overwhelming load of responsibility they presently have due to this shortage of their specialty that is suppose to increase in the years to come. The American College of Physicians believes that a patient centered national health care workforce policy is needed to address these issues that would ideally restructure the payment policies that exist presently with primary care physicians.
Further vexing is that it is quite apparent that we have some greedy health care corporations that take advantage of our health care system. Over a billion dollars was recovered for Medicare and Medicaid fraud last year through settlements paid to the department of Justice because some organizations who deliberately ripped off taxpayers. These are the taxpayers in the U.S. who have a fragmented health care system with substantial components and different levels of government- composed of several legal entities and individuals, which has resulted in medical anarchy, so it seems.
Thanks to various corporations infecting our Health Care System in the United States, the following variables sum up this system as it exists today. Perhaps the United States National Health Insurance Act (H.R. 676) is the best solution to meet our health care needs as citizens, it appears. We would finally have, as with most other countries, a Universal Health Care system that will allow free choice of doctors and hospitals, potentially, and health care for all completely. It should and likely will be funded by a combination of payroll taxes and general tax revenue which is realistically possible. Because the following needs to be corrected regarding the U.S. Health Care System:
Access- citizens do not have the right or ability to make use of this system as we should.
Efficiency- this system strives on creating much waste and expense as it possibly can.
Quality- the standard of excellence we deserve as citizens with our health care is missing in action.
Sustainability- We as citizens cannot continue to keep our health care system in as it is designed at this time- as it exists today.
http://www.mckinsey.com/mgi/publications/US_healthcare/index.asp
Dan Abshear

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JoeH

February 17th, 2009 at 11:48 pm

Easist thing to do to drop costs is boost salaries of Primary Care doctors by providing significant payment to keep people out of the system by helping them to better health. Drive the number of primary care doctors in the system by providing incentives to go that direction in medical school and then show them they can make more than specialist by practicing quality medicine and keeping people out of tests and hospitals stays through quality care, not rationing. The various primary care organizations have provided a lot of great insight into how to improve primary care and they should be followed. This of course will not happen because the hospitals and all the various specialist have large lobby groups in washington to protect their turf and they are assisted by the vendors from pharma to imagining equipment companies like GE. None of them want to see a great primary care network dedicated to keeping people out of hospital beds and CT scanners.

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Tony D

July 30th, 2009 at 12:45 pm

Why do they always blame life expectancy and infant mortality on Healthcare when this should be weighed against lifestyle. We are an overweight out of shape reality TV watching mostly couch potato country. We eat crap food full of trans fats, MSG, high fructose corn syrup and all kinds of preservatives. Our food supply is poisoned with heavy metals, pesticides and hormones. Go to Europe they don’t watch TV they walk everywhere they eat a fresher lower fat diet (usually). Also we have a higher mortality rate because we have a higher murder rate and many more mothers addicted to drugs giving birth to babies addicted to crack or heroin.

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David

January 7th, 2010 at 10:35 am

No neutral party has been smart enough to fix this mess, Special interest keep throwing sand at eachother, each grain of sand worth many dollars. It is all about taking money out of one pocket and shifting to another in hopes of overall savings.Healh care reform has become another american joke,I have no idea how to fix this,We need a revolution in healh care.Incremental change will only lead to a bigger mess.

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