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Changing Prices: Trends overall, and in Texas, from year to year

flying cadeuciiSummary: Watching cash prices in health care, as we have for the past five years, we have noticed a few trends. Here’s one: cash prices vary across a fairly narrow band, in most cases, for most things. Another: More and more providers are quickly able to quote cash prices than were able to do so when we started doing this in 2011. Yet another thing: Prices charged by providers to insurers and others can vary a lot, and prices paid by insurers to providers can also vary a lot. And finally: the intermediation of the insurance system (a third-party payer) can really affect what you’re charged and what you’ll pay.

Some of our observations come from a recent exercise: updating some of our Texas data. We update annually, though sometimes it slips to 1.5 years.

In truth, quite often the prices do not change all that much. Unless they do.

Do insured prices change more than cash ones?

When the prices do change, it’s sometimes the result of the current wave of mergers and acquisitions in health care.

Here’s one story about that and a passage from The New York Times:

“Imagine you’re a Medicare patient, and you go to your doctor for an ultrasound of your heart one month. Medicare pays your doctor’s office $189, and you pay about 20 percent of that bill as a co-payment. Then, the next month, your doctor’s practice has been bought by the local hospital. You go to the same building and get the same test from the same doctor, but suddenly the price has shot up to  $453, as has your share of the bill.”

Here’s a clip from  a Stat  News (Boston Globe) story about that: “The cost of visiting the doctor is climbing as hospitals scoop up a growing number of physicians’ groups, according to a Harvard Medical School study.”

Here’s an Association of Health Care Journalists overview: WSB-Atlanta recently explored what happens when hospitals buy physician practices, which has been happening all over the Atlanta area. Prices for patients go up. The same physicians – in the same offices, with the same treatments – start charging more.”

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An Alternative Proposal For Certification

John HalamkaSome have suggested that my comments over the past few months about the Meaningful Use program, MACRA/MIPS, and Certification imply that we should just give up – throw out the baby with the bath water.

That’s not what I’ve written.

Here’s a clarification.

I believe MACRA/MIPS is the right trajectory – create a set of desirable policy outcomes, then enable clinicians to choose technology, quality measures, and process improvements that are relevant to their practice.

Although the current MACRA formula is overly complex, it’s the right idea and I’m confident that CMS will revise the notice of proposed rulemaking appropriately.   My metric for MACRA’s success is simple – can a clinician keep three goals in mind while seeing a patient and be rewarded if successful i.e.:

1. Ensure care is delivered in the most appropriate location in the community (urgent care, home care, rural hospital)

2. Focus on wellness/prevention

3. Avoid redundant and unnecessary testing, medications, and procedures

My issue is that MACRA currently “inherits” the flawed 2015 Certification Rule that is a kitchen sink of immature standards and a black hole for developers.   Overly zealous regulatory ambition resulted in a Rule that has basically stopped industry innovation for 24-36 months since it has listed every use case for every purpose including those unrelated to Meaningful Use and MACRA.

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FHIR Use Cases: Population Health and Value-Based Care

Screen Shot 2016-07-06 at 3.22.36 PMAs a practicing internist, I have followed the gamut of the sturm and drang surrounding interoperability, and have experienced its pros and cons first hand.

What’s important now is that interoperability must evolve into population health management and value-based care use cases to match where healthcare delivery and payment is quickly going. Along with the approaching permanence of alternative payment models, population-based payments, either condition-specific or comprehensive, are on the ONC/CMS roadmap.

The FHIR API can can advance how the healthcare industry exchanges data, and not just for EMRs. All healthcare information technology products—from lab systems to HIEs, and even population health management tools—will have the opportunity to leverage the new framework.

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MACRA Comment: Building a Culture of Health Includes Payment Change

Screen Shot 2016-07-05 at 7.12.47 PMThe Robert Wood Johnson Foundation (RWJF) is striving to build a Culture of Health in this country where everyone has an equal opportunity to live the healthiest life possible, no matter where they live, learn, work, and play.  To get there, we need to make sure that everyone is getting the high quality, affordable care they want and need whether this care is provided inside or outside the health care system.  Right now in the U.S., we spend a lot of money on health care, especially as compared to other countries, but we don’t have the outcomes to show for it.  Last year, Congress passed the Medicare Access and CHIP Reauthorization Act of 2015 that would change how Medicare pays physicians with the goal of getting higher value for our health care dollars.   And recently, the Centers for Medicare and Medicaid Services (CMS) proposed rules for how these payment and reporting requirements would be implemented.

On June 23, 2016, RWJF submitted comments on these proposed rules.  We believe that changing health care payment in this country to reward better, rather than more care, is critically important.  In our comments, we shared lessons and insights from RWJF grantees to encourage CMS to design incentives in ways that will truly transform our health care system to provide measurably better outcomes for all.  We focused our comments on three areas: fostering integrated care, ensuring patient goals and needs are at the center of all we do, and providing high value care for everyone.

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An EHR-Driven Checklist Manifesto

Boston Physician Atul Gawande wrote The Checklist Manifesto in 2009  stressing that medicine should adopt “pilot’s checklists” to ensure that operating room teams are “ready for takeoff” before a scalpel is ever opened.

Here’s the “Time Out” done among all OR team members before a case beings – it includes a list of staff participating in the timeout, the agreed upon procedure, the verification of consent, appropriately marked operative site, patient identity verification, and best practices for prophylaxis.

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MACRA Comment: CMS + MIPS/APM = Death of the Private Practice Physician

flying cadeuciiSmall, independent private practices are closing, increasing numbers of physicians are retiring early, and fewer medical school graduates are choosing primary care.  The old-fashioned practice my father and I have built is a dying entity.  Parents say coming to see us for an appointment feels more like a visit with a friend than a medical encounter.  I am fighting for the subsistence of rural primary care practices.  Most will not survive MACRA proposed changes to the reimbursement structure. 

Seven days ago, I attended an “informational listening session,” sponsored by the Center for Medicare and Medicaid Services (CMS) for rural physicians to learn more about the new MACRA proposal known as MIPS/APM (Merit-Based Incentive Payment System/Alternative Payment Model.)  This new plan will penalize 7 out of 10 small practices with 1-2 physicians in this country.  Why? Because they will be overwhelmed complying with fruitless statistical reporting demands that do nothing to enhance the quality of care, instead of spending precious time seeing patients. 

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The Media, Mixed Messages and Statins

flying cadeuciiRecently, sitting next to me at a family friend’s wedding, was a middle-aged Indian male, a retired investment banker. He had an axe to grind with doctors. He said, “You doctors don’t know what you’re talking about. One doctor says check your PSA, and another doctor says don’t bother. Can’t you doctors make up your minds?”

He was an aggressive chap, faux aggression really; a tardive alpha male, who’d looked like he’d been hen-pecked most of his life. He had just eaten four pieces of rasmalai, and was storming the fifth. Rasmalai is a sugar-rich Indian desert that’s monstrously tasty and devilishly diabetogenic. I retorted, “Uncle, PSA testing won’t save you if you keep scoffing the rasmalai.☺”

He wasn’t related to me, but Indians call random Indians, “uncle.” “Uncle” had a capacious midriff sculpted by years of disciplined over eating rasmalai and laddu. He had a point, though. Despite our profession’s call for shared decision making (SDM), he, amongst others, wanted doctors to unequivocally tell him what to do. He couldn’t appreciate the controversy of screening for prostate cancer for what it was – uncertainty over true effect size. The controversy reaffirmed his belief that doctors were incompetent.

“Uncle” isn’t alone in taking unkindly to medical controversy. A recent study in the BMJ showed that the controversy over statins, and negative media reports about statins, may have persuaded thousands to stop statins, and might lead to several premature deaths and MIs.

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How to End MACRA, Meaningful Use and ONC Certified EHRs Programs/Mandates

flying cadeuciiWhile the Federal Government’s promotion of EHRs via the HITECH act has been successful at increasing the prevalence of EHRs, their continued advocacy of Certified EHRs, Meaningful Use (MU) mandates and MACRA seriously impedes innovation in health information technology realms. For this reason, I think it is time for our Federal politicians to alter provisions of the HITECH ACT so as to end all legal mandates resulting in Certified EHRs, MU and MACRA.

Unfortunately most medical societies have been complicit with the Federal Government / ONC by making encouraging public statements about the evolution of MU into MACRA, and refusing to advocate for an alteration in Federal law which would end the legal underpinnings of MU, MACRA and ONC Certified EHRs. It is my opinion that these organizations are fearful of antagonizing the Federal Government and concerned that if they did such advocacy work, they would be excluded from influencing ONC’s evolution of the HITECH mandates.

Given the failure of these organizations to take a definitive stand against MU, MACRA and ONC Certified EHRs, it is time for the physician to take control of the reins of their organization and use their organization’s influence to end these HITECH mandates.

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Feed Me, Media Guy

Michel AccadIn his recent article “Feed Me, Pharma,” ProPublica’s Charles Ornstein has been calling attention to studies showing that the prescribing decisions of doctors are linked to to the amount of money that drug companies can bestow on them, usually in the form of meals, travel expenses, tuition support to attend courses, and so on.

I find nothing surprising about that, and Ornstein need not be so scrupulous when he clarifies that “the researchers did not determine if there was a cause-and-effect relationship between payments and prescribing.” To deny that perks have a causal effect on physician behavior invites improbable considerations.

In fact, the data suggests that doctors are particularly easy to manipulate. One of the researchers interviewed by Ornstein was “surprised that it took so little of a signal and such a low value meal [to influence doctors]” A Chick-fil-A is all that it takes!

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On the other hand, Ornstein clarified,

…the researchers don’t think the meals themselves cause doctors to prescribe more of a drug, but rather the time they spend interacting with drug reps when they drop off those meals.

In other words, doctors are cheap dates for pharma. In response, “patients [should] talk to their doctors and ask ‘Is there a generic that’s just as good?’”

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The Physician’s Case For Trump

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Brexit has been hailed as a turning point in the history of Western Democracy by a collection of liberal and conservative elites that decry the vote of a disenchanted and ignorant populace.  The greatest threat to democracy in the modern age turn out to be the very same people that make up the democracy.  We are told these are the same forces that propel Donald Trump forward.  It is a convenient narrative that extinguishes any real debate on policy.  If you support Brexit or Donald Trump you are an uninformed, xenophobic bigot.  Yet here I am – an Indian immigrant, a physician, and a lifelong democrat to boot, who sees no other choice than Trump this election cycle.

I must confess that I have no emotional connection with Mr. Trump – his public demeanor, braggadocio, and above all, the coarseness of his manner when he engages opponents are not what are familiar or soothing to eye or ear.  Yet, as a physician who has struggled through the last eight years of policies and regulations that have made my ability to take care of patients more and more difficult, Mr. Trump has taken on the form of an orange-tinged life preserver.

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