This week an important investigative article was published by Time Magazine written by Steven Brill. In the best tradition of muckraking, Mr.Brill brought to light the labyrinth world of hospital and medical billing. It is wonderful when facts are brought into
the antiseptic of sunlight as is the case in this article. The high charges that plague health care can
be reality and lead to tragedy for some, or just a convenient benchmark for the
lower prices that are the norm in much of the health marketplace. Mr. Brill brings this complex reality to
light and does an outstanding job in communicating the complexity and the
incoherence that is billing for health care services.
Good investigative journalism, in exposing facts that
need exposing, can sometimes turn a simple tragedy into a morality play. In this case, instead of the simple tragedy
that is caused by history, rules and regulations, we are given the morality of
the greedy hospital executives and the heroic Medicare regulators. The hospital executives are taken to task for
high salaries and for the huge mark ups.
The Medicare regulators are lauded as knowing the right prices for
everything and for working hard to help the people who have to deal with these
greedy hospitals. This is where the
article loses its focus by trying to be dramatic. The mundane facts are that hospital
executives are usually hard working people who really care about the people
being treated by their institutions just as Medicare people are usually hardworking
people who care about the people helped by Medicare. In many ways, each are playing their role
with the hospital executives merely being human and playing the cards they are
dealt and the Medicare regulators doing the same. Those cards includes a legislative and
regulatory backbone that rewards sky high charges and actually punishes those
systems that try to be more rational in their approach to charges. As Brill points out, if the charges are high
then the discounts against charges also remain high. This comes to light through the article as
Brill talks about the amounts that hospitals actually receive compared to those
charges.
Brill is at his best when he describes the trauma that
people go through with high medical bills.
Yet he also seems to miss the point at times. In his description of Janice S, he says, “We
cannot know why the doctors who treated her ordered the more expensive tests”
yet he describes events as if he does know.
And that fundamental incongruity leads to conclusions that can misrepresent
how events actually happen in the diagnosis and treatment of people’s
illnesses. Often doctors order tests
because they don’t know where the results of the tests will lead them and they
are afraid of missing something that could potentially help the patient. Often doctors are worried about the “low
probability, high consequence” events that while unlikely, if missed could lead
to catastrophe. So trying to judge the
billing by the final diagnosis rather than by the process that the doctor went
through is inherently wrong and can often make the most diligent and
well-meaning physician seem either greedy or incompetent when in reality he or
she was doing a good job for their patient.
Janice S was being evaluated for
possible heart disease that could have been acute and fatal. We all celebrate the fact that it was
indigestion however the doctors did not know that at the time. It may be easy to think that it is defensive related
to malpractice or that the hospital is encouraging the use of expensive tests
to gain revenues but I think the reality is that the doctors are just trying to
do everything to help the patients.
Janice S’s problems were unique to her and the physicians treating her
made decisions based on how she presented at that point in time. They may have been wrong in their assessment
but I will not impugn their morality or integrity in the decisions they
made.
Mr. Brill talks about the fact that MD Anderson and
Sloan Kettering have high priced executives and collect about 50% of their
charges due to their brand recognition compared to about 35% which is the
hospital industry average. It may be
brand recognition but it may also be because they really are better run and
treat the highly complex patients who find their way to their doors in a manner
that is more conducive to cure. Mr.
Brill tells the story of Alan A. who is told that he has no hope and then goes
to Sloan Kettering, is treated, and is still alive 11 months later. For me, that part of the story is at least as
important as the fact that the costs were high.
I am not defending the billing practices and that is not
my goal. They are awful and should
change. But if we change in such a way
that we look at health care as a commodity, when it really is an art and a science
that is highly dependent on the skill of the individual artisan applied against
the complexity of the individual patient, then we will go backwards and not
forwards. Do we really think that a
community hospital in central Florida gives the same care as the MD Anderson
Hospital? I know that I don’t believe
that. Every day I am asked to recommend
doctors and facilities for people with very complex illnesses and it is rare
that I will recommend a doctor or hospital that practices in a small to mid-size
hospital as they are unlikely to see complex people in the volume that is
needed to stay proficient in their care.
That is not an insult to those fine doctors and nurses who are in the
trenches helping people every day with primary and secondary care but instead a
comment on the fact that people need to have as their care givers,
professionals with skills that are unique to the person needing help and the
situation that they are in. Products or
services sold as commodities are just the opposite. They are all the same so they can all be sold
at the same price and negotiated mainly by price. That is part of the challenge with Medicare.
Medicare, even with their formulas and rules and
regulations tends to look at health care services, as commodities. And lest you think that Medicare has all the
answers and actually pays hospitals what they need to not only survive but
thrive, think again. Those formulas that
Mr. Brill accepts at face value are from the same people who bring you the
crumbling infrastructure of the highways and bridges in this country. Medicare officials and policy people do their
best but their struggle is always to keep afloat a system that must be built
for the people who tend to be “routine” and not necessarily for the complex
people who don’t really fit the system. There
are special codes and formulas that are supposed to reflect the realities of
different geographies, different types of hospitals and different payer mixes
however they are also subject to political pressures (there is plenty of
lobbying as Mr. Brill points out) and to budget challenges that can change the
dollars available. And they cannot
reflect the social, economic, and cultural differences of the individuals in
need. Those complexities with the
emotional upheaval of illness are also part of the realities of medical
care.
So let the sun shine in.
Let’s stop the insanity of charges that are jacked up in order to
justify huge discounts down the road.
Let’s stop the “unbundling” of services and products that should be
included in a set fee. Let’s encourage and
help every patient to negotiate the fees they are charged and understand that
they have power in the relationships with the health facilities and health
professionals. Let’s make health care
affordable and accessible for all who need it.
At the same time let’s acknowledge that people are not widgets and that
the idea that one size fits all in medicine may lead to lower costs but will
also have the potential to hurt a lot of individuals along the way.