NEW @ THCB PRESS: Surviving Workplace Wellness. Spring 2014. Al Lewis and Vik Khanna. e-book edition. # LIGHTHOUSE Healthcare. Illuminated.

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It’s been a month since I started my new practice. We are up to nearly 150 patients now, and aside from the cost to renovate my building, our revenue has already surpassed our spending. The reason this is possible is that a cash-pay practice in which 100% of income is paid up front has an incredibly low overhead. My admitted ineptitude at financial complexity has forced me to simplify our finances as much as possible. This means that the accounting is “so simple even a doctor can do it,” which means I don’t need any front-office support staff. I don’t send out bills because nobody owes me anything. It’s just me and my nurse, focusing our energy on jury-rigging a computerized record so we can give good care.

Our attention to care has not gone unnoticed. Yesterday I got a call from a local TV news reporter who wanted to do a story on what I am doing. Apparently she heard rumor “from someone who was in the hospital.” I was the talk of the newsroom, yet I’ve hardly done any marketing; in fact, I am trying to limit the rate of our growth so I can focus on building a system that won’t collapse under a higher patient volume. I explained this to the disappointed reporter why I was not interested in the interview by telling her that I left my old practice because I needed to get off of the hamster wheel of healthcare; the last thing I want to do now is to build my own hamster wheel.

Continue reading “Trickle Up Economics”

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It has always been my assumption that my new practice will be as “digital” as possible. No, I am not going into urology, I am talking about computers. [Waiting for the chuckles to subside]

For at least ten years, I’ve used a digital EKG and spirometer that integrated with our medical record system, taking the data and storing it as meaningful numbers, not just pictures of squiggly lines (which is how EKG’s and spirometry reports appear to most folks). Since this has been obvious from the early EMR days, the interfaces between medical devices and EMR systems has been a given. I never considered any other way of doing these studies, and never considered using them without a robust interface.

Imagine my surprise when I was informed that my EMR manufacturer would charge me $750 to allow it’s system to interface with a device from their list of “approved devices.” Now, they do “discount” the second interface to $500, and then take a measly $250 for each additional device I want to integrate, so I guess I shouldn’t complain. Yet I couldn’t walk away from this news without feeling like I had been gouged.

Gouging is the practice of charging extra for someone for something they have no choice but to get. I need a lab interface, and the EMR vendor (not just mine, all of the major EMR vendors do it) charges an interface fee to the lab company, despite the fact that the interface has been done thousands of times and undoubtedly has a very well-worn implementation path. This one doesn’t hurt me personally, as it is the lab company (that faceless corporate entity) that must dole out the cash to a third-party to do business with me.

Doing construction in my office, I constantly worry about being gouged. When the original estimate of the cost of construction is again superseded because of an unforeseen problem with the ductwork, I am at the mercy of the builder. Fortunately, I think I found a construction company with integrity. Perhaps I am too ignorant to know I am being overcharged, but I would rather assume better of my builders (who I’ve grown to like).

Yet thinking about gouging ultimately brings me back to the whole purpose of what I am doing with my new practice, and what drove me away from the health care system everyone is so fond of. If there is anywhere in life where people get gouged or are in constant fear of gouging, it is in health care. Continue reading “Rob’s New Economics of Practice Management”

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Finally.

I can finally see progress in what I am doing.  Above is a photo of the front page of my new practice website (visit http://doctorlamberts.org).

There still is a little “Lorem ipsum” here and there – like having labels you missed on a shirt you are wearing – but I am very happy with the look.  The pictures of the sepia photos with the iPad making it color were the genius of my web developer (with some suggestions from me), giving a perfect image of the use of technology to accomplish “old-fashioned care made new.”

I’ve spent good portion of the past few days writing the content (replacing most of the “Lorem ipsum”).  Of what I’ve written, the strongest was in the section “Why It’s Different,” where I compare life in a traditional practice to what I intend to do.  Here are a few examples:

“I Need an Appointment”

Traditional Practice

· Call the office, hear a message about calling 911, get placed on hold or leave voice message (after navigating automated attendant).
· Get called back to find out the reason for your appointment.
· Appointment is made around what is open for the doctor.
· Take time away from your schedule to meet doctor’s schedule.

Our Practice:

· Log on to portal and directly make your own appointment to fit your schedule.
Or
· Call the office and tell a human being that you need an appointment.

Continue reading “Progress”

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Things have been crazy.  It’s much, much more difficult to build a new practice than I expected.  I opened up sign-up for my patients, getting less of a response than expected.  This, along with some questions from prospective patients has made it clear that there is still confusion on the part of potential patients.  So here is a Q and A I sent as a newsletter (and will use when marketing the practice).

About My New Practice

Q. Why did I do this?

A.  I get to be a doctor again (perhaps for the first time).  I got tired of giving patients care that wasn’t as good as it could be.  I got tired of working for a system that pays more for bad care than for good.  I got tired of forcing patients to come in for care I could’ve given over the phone.  I got tired of giving time that should be for my patients to following arduous regulations.  I got tired of medical records not meant for actual patient care, but instead for compliance with ridiculous government rules.  Making this change gives me the one thing our system doesn’t want to pay for: time devoted for the good of my patients.

Q. How can I afford to do this?

A. I have greatly decreased my overhead by not accepting insurance and keeping my charges simple.  My goal is to have 1000 patients paying the monthly fee, which will limit the number of staff I need to hire.

Q. When will it open?

A.  My office will open in January, 2013, but the exact date is still not set.  I had initially hoped to be already seeing patients, but things always are harder than they seem.

Q.  What makes this better for patients?

A.  The main advantage is that I am finally able to give them the care they deserve: care that is not hurried, not distracted by the ridiculous complexity of the health care system, and not driven by the need to see people in person to give care.  This means:

  1. I don’t ever have to “force” people to come to the office to answer questions.  This means that I will let people stay at home (or work) for most of the care for which I would have required an office visit in the past.
  2. I will be able to give time people deserve to really handle their problems
  3. I won’t have to stay busy to pay the bills, so I can take care of problems when they happen (or when they are still small), rather than having to make people wait to get answers
  4. Patients won’t get the run-around.  They will get answers.
  5. I won’t wait for patients to contact me to give them care.  I will regularly review their records to make sure care is up to date.
  6. I will help my patients get good care from the rest of the system.  Avoiding hospitalizations, emergency room visits, unnecessary tests, and unnecessary drugs takes time; I will have the time to do this for my patients.  This should more than make up for my monthly fee.

Continue reading “Questions and Answers”

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It seems both ironic and inevitable: I won’t be getting any more “meaningful use” checks. It’s not that I didn’t qualify for the money; I saw plenty of patients on Medicare and met all of the requirements. I was paid for my first year money without much hassle. The problem I am facing is this: I am probably going to be “opting out” of Medicare, and once I do that I will cease to exist as far as HHS is concerned, and they are the ones who write the “meaningful use” checks. No existence equals no money.

This is ironic because I have gotten famous for how well I’ve used electronic medical records, have written advice for physicians trying to qualify for “meaningful use,” and am esteemed enough to be often asked for my opinion on the subject (culminating in a presentation last year for CDC public health Grand Rounds).  I have spent much of the past 16 years disproving the myths that small practices couldn’t afford EMR, that EMR decreases profitability, or that they reduce quality of care.  We not only could afford EMR, we flourished, using it as a tool to increase both productivity and profitability.  Not to overstate the issue, but my practice (and others like it) paved the way for the existence of “meaningful use.”  I don’t know if that’s a good or a bad thing.

But, as fate would have it, I am leaving the practice in which I did all of this work and am starting a new practice with a different payment system.  Instead of charging for office visits or tests done in my office, I am charging a monthly “subscription” fee for access to my care and to the other resources I offer.  But there isn’t a Medicare code for a monthly subscription fee, and the rules of Medicare are such that, as far as I can tell, I cannot have the practice I intend to build and be listed as a Medicare provider.  This is the case even if I never charge Medicare for any of my services.

Regarding my status as a Medicare provider, there are three options:

  1. Accept Medicare as a “participating” provider – This means that I see Medicare patients and accept what they say I will be paid.  I bill CMS for my services, which are based on my “procedure codes.”  My main procedure is the office visit, but I can also bill for things like immunizations, lab tests, and office procedures.  The more procedures I bill for, the more I get paid, but I must justify this billing in my documentation or run the risk of being accused of fraud.
  2. Become a “non-Participating” Medicare provider - In this scenario, I am paid by the patient for the encounter and then they are reimbursed for what they paid me.  The choice of what I bill happens the same way, and I still must set fees based on what CMS tells me (although I can bill a little bit more than I would if I was a participating provider).  Billing is, once again, based on the documentation of the visit.
  3. “Opt out” of Medicare altogether - Opting out means that I am no longer in the Medicare database as a provider and won’t get paid by them at all.  Patients are free to come to me, but they must pay what I charge, and I set my fees based on what I think is best. Continue reading “Tough Hard Decision: What To Do About Medicare”
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It’s been over a month since I joined the ranks of the unemployed and started building my new practice.  For not having a job I’ve kept very busy.  Here’s what I’ve done.

I presented the idea of my practice to about 150 people.

It was a wonderful experience, and was quite emotional for me seeing a bunch of patients in one place.  The reception was wonderful.  I was hoping to get a video of this up, but the fates were fickle and it was not possible.

I wrote a business plan

My accountant didn’t even laugh when I showed him.  The idea was to look ahead at my months ahead and see when things would become profitable.  There are a bunch of huge questions that my affect this: how many staff I have, how many patients I have, what it costs to upgrade my office space, but I did a worst-case scenario (short of the Zombie Apocalypse) and the fact that my overhead is low makes it easy to be profitable quite quickly.

I got a location for the practice.

Today I went through the building with a designer and am working on getting it ready to use.  I am not doing the whole renovation at the start, as I won’t really know what the practice will need until it’s up and running.  I want it to be very comfortable and welcoming.  Most doctor’s offices are not places that say “welcome” to patients, but that’s what I want to convey.

I set a fee schedule.

· Age 0-2: $40/month
· 3-30: $30/month ($10/month if they are away in college)
· 30-50 $40/month
· 50-65 $50/month
· 65+ $60/month

Family maximum will be $150/month

Continue reading “The Doctor Is In”

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MASTHEAD


Matthew Holt
Founder & Publisher

John Irvine
Executive Editor

Jonathan Halvorson
Editor

Alex Epstein
Director of Digital Media

Munia Mitra, MD
Chief Medical Officer

Vikram Khanna
Editor-At-Large, Wellness

Maithri Vangala
Associate Editor

Michael Millenson
Contributing Editor










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