On Tuesday New York Times reporter Robert Pear wrote a story about President Obama’s apparently keen interest in an article in the June 1 New Yorker by Dr. Atul Gawande, who is a staff writer for the magazine, Harvard professor, surgeon, and recipient in 2006 of a MacArthur genius award — all evidence he’s likely to see things a little different, maybe more clearly, than most of us.
Dr. Gawande did a small but in-depth comparative study of the per-capita Medicare spending in a few different U.S. communities. At the very least, his article presents a solid hypothesis for why America spends more on health care than most OECD countries and gets worse results. Gawande doesn’t present his findings as revolutionary, but Pear reports the article jazzed up Obama. Pear quoted Sen. Ron Wyden, D. Ore., who was at a meeting where the president raved about the article, with Wyden saying that Obama “in effect, took that article and put it in front of a big group of senators and said, ‘This is what we’ve got to fix.’”
Pretty cool so far, Obama reads stuff and learns from it. The kind of president you want.
But then the reporter leaves the President, without saying what it is Obama thinks we have to fix, and treats us to an “objective” he-said, she-said argument (this is what killed our faith in journalism) about what factors might cause more health spending in one area or city compared to another.
The facts are there: Miami spends $16,351 per Medicare beneficiary to San Francisco’s $8,331. Could it be the older population? Cost of living? More teaching hospitals? (Which way would that cut? If I want a cheaper haircut, I’d go to a beauty school and let the students have a whack. That might not be a smart way to have a hernia repaired.)
What Pear misses is Gawande’s point, in my mind solidly proven by his research, that these aren’t even the right questions to ask. What the Harvard doctor found was that cost differences correlate with (and I’d say for sure are caused by) aspects of the culture and structure of an area’s medical community.
To oversimplify: Gawande found that costs are higher in communities where doctors profit from additional procedures (from blood tests to MRIs) because they provide those services in their own clinics (ever hear of mark up?) or own interests in hospitals and testing companies. In communities where care was emphasized, in contrast to the potential for profit from ordering more medical procedures, costs were lower. By the way, Seattle is a relatively low-cost area, and for that we should at least in part credit Group Health Cooperative, which, having recovered from its gold-plated days a couple decades ago, is a good solid care-first provider and contributes that stance to the area’s thinking.
So the critics quoted in the Times by Pear are at least partly right (for the wrong reasons) that changing Medicare reimbursement formulas based on regional cost performance differences won’t solve the problem. Though Gawande doesn’t present it didactically, the answer his hypothesis leads to is legislation that gets doctors out of the business of medicine and back to being doctors.
That would be radical but it would work. What we need are laws that prohibit doctors from owning or investing in hospitals or companies that provide medical services of any kind or make and sell drugs or medical equipment. To be a doctor, you’d just have to be a doctor and only a doctor, not a businessman or clever investor in medicine’s next new thing. There is a difference between the profit motive and the Hippocratic oath. Adherence to the latter would cut America’s cost of health coverage.
Maybe it’s this idea of change in the American approach to medicine that grabbed President Obama.
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Comments:
Posted Wed, Jun 10, 9:57 a.m. Inappropriate
Dick — it's an interesting idea — but do you mean to restrict doctors from owning even one share of Merck? What about mutual funds and ETFs? Or do you just mean non-publicly-traded corporations and institutions?
Posted Wed, Jun 10, 11:40 a.m. Inappropriate
Dr. Gawande unfortunately didn't mention that he was replicating work that is decades old, and in the U.S. is most firmly associated with Jack Wennberg at Dartmouth. As long ago as 1973, he noted the variation in rates of care, costs, and so forth, in different locales, and certainly deserved mention as the country's most original and persistent thinker about this topic.
By the way, you don't have to travel from Miami to Texas to see these differences--and that was Wennberg's great finding. It's common to see very great differences in service rates, and costs, between communities that are quite close together. Examples would be the rates of hysterectomy, low back surgery, and many other procedures, lab tests, diagnostic exams, and so forth.
As for prohibiting physician ownership of clinics: Ditch the Mayo Clinic, eh? Prohibit Group Health Cooperative from ownership and operation of its own clinics, eh? Do away with the Polyclinic, Virginia Mason, or many other Seattle physician-owned clinics, eh?
You note that Seattle is a low-cost geographic area, and that's quite true. There are other areas of the country that are very high-cost; you're making a (simplistic and unwarranted) assumption that physician ownership of clinics is the differentiating factor. If that were true, how could Seattle possibly be a low-cost area, since many clinics are physician-owned here?
Rather than clinic ownership, many experts point to fee-for-service (the way in which physicians largely continue to be paid for the work they do) as a key element of health costs. That's where some kinds of physician group practice (Kaiser and Group Health as two examples) hold promise for separating the work done from the payment received.
One of the reasons that health care reform is so difficult, and has resisted the efforts of many bright people in this country for so long, is that it's a very complex industry. This is one example; it's tempting to ascribe great evil to one particular factor in the overall mix--but I can assure you that eliminating physician ownership wouldn't solve our problem; it's not that simple.
For some extremely worthwhile reading, have a look at Paul Starr's "The Social Transformation of American Medicine." It won the Pulitzer Prize in 1984, and is still the best analysis of physicians' role in our healthcare system. Apropos the comments Mr. Lilly makes in his article, Chapter 6 in Starr's book is right on the mark.
Posted Mon, Jun 15, 7:37 a.m. Inappropriate
Dick .. good piece and on the mark .. it's one element of what's needed, but gets to the root of what the underlying problems are that need to be fixed.
Bob