Posts Tagged Mayo Clinic

The Government We Deserve: Healthcare Edition

So, the battle is joined – the passage of the Senate Finance Bill has forced every healthcare participant whose oxen might be gored into the open, and the fighting is fierce.

I don’t have a dog in the fight from an economic standpoint, unless Washington, D.C. decides to give everyone a full indemnity policy like the New Hampshire state union employees. As a result, I have had a freedom to think and speak in a way that few of my colleagues can.

It took me a while to realize that I would be so alone in this regard. I have been very fortunate to participate for the past five years in two different groups of nationally recognized healthcare executives with very diverse experiences. Several of them are very publicly prominent in the debate, and others are quietly influential. I have hoped that these groups might coalesce, create a blueprint for reform, and lead the way forward. While I am disappointed that has not happened, I am really surprised at how resolutely the group members have retreated to their economic realities or their philosophical ideals. In short, there has been no sustained dialogue with the goal of determining how hospitals, physicians, insurance companies, device manufacturers, pharmaceutical companies and others can create a reformed system. At the same time, I have observed all of us bemoan that “healthcare reform” is really “insurance coverage reform”, and not so impressive at that.

The result is that We, the People, have turned it over to Washington, D.C. In the coming weeks, 535 people who know a lot about politics, a little about the art of compromise, and almost nothing about how approximately 20% of the economy works will decide our future. The 20% of us employed in healthcare have failed to reform ourselves through real and shared sacrifice. The 80% is angry enough not to care that they don’t know the difference between a scalpel and a saw.

In the words of Dandy Don Meredith, some people in healthcare will need to “turn out the lights, the party’s over”. The tricky part is that we won’t know until the very end who that is.

On Wednesday, The Wall Street Journal ran an opinion piece called “Paying the Health Tax in Massachusetts” by an author named Wendy Williams. In it, Ms. Williams lamented that the Commonwealth of Massachusetts changed the definition of acceptable coverage. Her family’s policy no longer meets the requirement, so she must either (a) buy a more expensive policy, which she does not think she needs, or (b) enroll in the government option.

What caught my eye was the following:

Mr. Romney and Sen. Ted Kennedy publicly promised that the middle class – that is, people like us – would not be taxed and that our health-care costs would actually decrease if the plan became law.

My husband and I weren’t convinced. It all seemed inane, but we are neither politically or socially conservative and figured the plan wouldn’t affect us much. Besides, who could be against a plan that covers more people for less money?”

Here in the South, we might respond to that statement by saying, “I’m not sure I would have told that”, but I am afraid the subject is too serious to be that dismissive.

Ms. Williams, in four sentences, has summarized the debate.

First, in order to get elected, politicians have to tell people (us) what we want to hear. Politicians rarely make the call for sacrifice, and today’s America is not interested in that much anyway. Elections for 473 of the 535 positions will be held in 2010. For each of those 473, the calculus over the next 60 days is about how a vote on healthcare reform will play at home between now and November 4, 2010 (Note: “what will get me reelected” is sometimes phrased as “what my constituents want” but rarely as “what does my country need” or “what does courage require”).

Second, We, the People, know better. What is wrong with us? We aren’t that stupid, and we don’t even like Congress. On the other hand, we do seem to like something for nothing. The members of the Greatest Generation have given way to individuals who are more interested in their personal good than the common good. Most of us just listen for what we want to believe and ignore the rest; some of us listen to talk radio and shout at the rest. The Greatest Generation gave way to the Baby Boomers, who seem to be the majority of those in power. The generation of Timothy Leary and “Turn on, tune in, drop out” seems to have taken the “drop out” part to heart, except that Leary’s hope for self-reliance has morphed into singular self-interest.

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It is time for We, the People, to wake up:

  • As we proved spectacularly in Tennessee, you cannot cover more people for less money. No one in Washington, D.C. should know that better than Nancy-Ann Deparle.
  • The results of the Massachusetts experiment are that costs have increased, while quality and access have decreased. These results should be terrifying since Massachusetts had one of the lowest uninsured rates in the nation at the start of the Massachusetts Connector program. Up next, “global payments”, aka capitation – good luck with that at Partners.
  • In The Washington Post, Alec MacGillis reports that maybe the Mayo Clinic is not a model for reform since they restrict access to Medicare and Medicaid patients. As we continue to report, the Mayo Clinic does not deliver high healthcare value.
  • The Senate Finance Bill pretends that physicians will take a 25% cut in pay in 2011 to achieve the $900B cost; it appears that AMA has convinced Senator Reid otherwise.

Sir Winston Churchill famously stated that:
“Democracy is the worst form of government, except for all those other forms that have been tried from time to time.” He also said, “The best argument against democracy is a five-minute conversation with the average voter.” Let’s hope that we do not allow Washington, D.C. to test the former, and let’s see if America can prove Sir Winston wrong on the latter.

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Mr. Orszag, Please Hold the Mayo

While we have spent the last two weeks using our GPS to report the 747 hospitals that the Hospital Value Index™ identified as Best in Value, we noticed over the weekend that Mr. Orszag is still lost with his Atlas.

In the September 27 edition of The New York Times, Sheryl Gay Stolberg reports on the White House’s intensive lobbying efforts to find a Republican Senator to support its vision for health reform. One example cited is a dinner of “lamb loin and Scottish salmon” between Mr. Orszag and Senator Susan Collins, during which Mr. Orszag reportedly e-mailed questions to Dr. Dennis Cortese at the Mayo Clinic.

As articulated here before, the Mayo Clinic has much to recommend it, but low cost, high value healthcare is not among them. Having walked the corridors of hospitals in more than 30 states, I am certain that the medical foundation model is not something that can be replicated successfully throughout America. If, however, Mr.Orszag is bound and determined to use the medical foundation model as the blueprint for national reform, we would again suggest using the GPS to find his way. Using the GPS will point him to the Billings Clinic, which the Hospital Value Index™ reveals produces the highest value of any of the medical foundation or clinic model in the U.S.

Better yet, we would suggest that Mr. Orszag join us at the Voices of Value™ Summit to learn what the 747 Best in Value hospitals have in common that allows them to produce high value care in urban and rural America, in teaching and non-teaching settings, whether for-profit or not-for-profit.

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The Mayo Clinic Calls for A “Value Index”

As reported in The Washington Post, the Mayo Clinic and Intermountain Healthcare have called for a “Value Index” as part of health reform:

“The House bill lacks a “value index” under which Medicare reimbursements would be issued not just according to the procedure delivered but according to the quality of the overall care provided for a given episode, which would reward higher-quality providers and, in theory, reduce costs over the long run. “The system must be reformed to compensate for value instead of volume,” the signers write.

In the words of 1970s one-hit wonder Billy Swan, I can help – check out the Hospital Value Index™ at www.hospitalvalueindex.com.

As referenced in our earlier post “Critique of the New Yorker”, the folks at Mayo and in Washington may be surprised at the results.

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A Critique of The New Yorker’s Health Care Plan

If you have not read “The Cost Conundrum” by Atul Gawande in The New Yorker, you should, because the The Washington Post and The New York Times have suggested it is required reading in the White House these days. Based on those accounts, the article is further evidence of the Dartmouth Atlas proposition that over-utilization is the crucial issue in health care reform. Putting aside the fact that comparing McAllen to El Paso is like comparing Newton to Wellesley, two things jump out from the article that I believe bear further consideration.

First, as we know in every aspect of our lives, human beings respond to economic incentives. In the past decade, no other profession in America has suffered a decline in inflation-adjusted income like physicians. It is curious that we trust physicians to be smart enough to heal us but assume that they will not attempt to stymie consistent actual and threatened reductions in their income.

Second, in what is increasingly troubling in my view, the Dartmouth Atlas analysis is becoming the blunt instrument of health care reform policies. Assuming that Dr. Gawande believes over-utilization is the crux of the problem, it is also curious that he did not call out the obvious fix to the real issue in McAllen, which is to eliminate physician investments in hospitals, surgery centers and in-office ancillary services. If overutilization is the diagnosis, Stark III is the cure.

In fairness to the Dartmouth research, the fact that Medicare utilization varies widely in the country is undoubtedly true. The corollary that has now become accepted fact in the media is that less is more and better quality. I’m not sure the data supports that.

The Mayo, McAllen and El Paso Market Analysis shows a series of slides for St. Mary’s in Rochester (Mayo), two hospitals in McAllen, and two hospitals in El Paso. One is my favorite – the Discharge Destination by Day of the Week. In plain English, this slide depicts where patients go when they are discharged from the hospital. The other slides show the cost and the charge of certain procedures in Rochester, McAllen and El Paso. I will let you draw your own conclusions, but I bet you will struggle to understand why Mayo is a better choice for Medicare patients than the hospitals in McAllen and El Paso. You might also wonder why Mayo costs so much more on a per unit basis than hospitals in McAllen and El Paso.

Importantly, the Senate Finance Committee plans to benchmark all hospitals in its Value-Based Purchasing initiative. We have modeled how that turns out for Mayo and others being touted as the health systems to emulate, and it does not end like you might think.

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