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Big money corrodes medicine’s trustworthiness |
The nation’s medical spending is busting at the seams, again, forecasted by researchers to hit $4.9 trillion in 2024. The mammoth sums that gush through the medical system are a giant cause not just for alarm but also for their major role in eroding public trust. With big money comes profiteering that all too often slams patients, saddling them with excessive costs and making them powerless outsiders when it comes to crucial aspects of their medical care. This is no way to foster trust in medicine. Medical economics, alas, is a MEGO (my eyes glaze over) topic. But even a glance at a few of the big dollar-related problems in medicine help to explain the mistrust regular folks feel, including: § Lack of oversight of medical costs. This country, especially in comparison to other peer nations, lacks ways to effectively control soaring medical costs, including the skyrocketing prices patients pay for prescription drugs. Officials in Washington, D.C., can try to leverage the huge clout of federal health programs like Medicare and Medicaid to try to contain or reduce costs, including a new initiative that allows regulators to negotiate over the prices of a handful of costly medications. But the unchecked nature of medical care costs long has mostly meant that, unlike many other industrialized nations, providers can charge whatever they want and can get. § Fee-for-service. It is infuriating for patients to get snared in the billing back-and-forth, for example, between insurers and medical providers. Mammoth billing statements are but a symptom of one of the most criticized aspects of the U.S. medical system, under which doctors and others in the system charge individual fees for everything — their time, tests, procedures, and supplies. Patients don’t get one estimate for the cost of a surgery, for example. Instead, they get bills for all the medical personnel involved, as well as for every item used — sutures, dressings, anesthetics, surgical tool trays, etc., etc. Venal practitioners, critics say, toss in endless ticky-tacky charges and pile on tests to boost bills. A collateral part of this byzantine system involves the codes that providers use to submit bills to insurers. These have become another way to maximize profits, with billing specialists figuring ways to “up-code” items. The system shuts out patients, leaving them confused, frustrated, and too much in the dark about their medical care and its costs. § Private investors, aka hedge funds. Critics have sounded increasing alarms about the incursion by private equity groups, aka hedge funds, into a range of medical enterprises. As the Healthcaredive industry news site has reported, the targets have included: “dialysis clinics, nursing homes, hospice providers, primary care providers, hospitals, home health agencies and others.” Those who run the funds seek to maximize investor profits and they focus on major, short-term results — without seeming concern about the wider consequences. Federal regulators have started an investigation because, as Healthcaredive reported: “Studies have suggested the financiers can turn a profit while cutting care quality — increasing prices for payers and patients while cutting corners on safety, leading to increased risks of infections and falls. ‘When private equity firms buy out healthcare facilities only to slash staffing and cut quality, patients lose out, said [Federal Trade Commission] Chair Lina Khan in a [news] release. ‘Through this inquiry the FTC will continue scrutinizing private equity roll-ups, strip-and-flip tactics, and other financial plays that can enrich executives but leave the American public worse off.’” Private equity is under increasing fire, including over the recent financial desperation of the Steward Health hospital chain. Among the practices that critics excoriate hedge funds for: getting institutions, including hospitals and nursing homes, to sell and lease back the real estate that facilities stand on. That generates profits for investors and can give institutions a short lifeline of new funds. But they all too soon find their balance sheets in tatters because they must pay increasing rents. Private equity also upsets patient advocates because the firms intentionally obscure ownership, making it difficult, if not impossible, to determine who is accountable when problems arise. § Profit-grabbing middle players. The medical industry has sprawled with such complexity that profit-maximizing middlemen have found their own enriching grounds. Take, for example, pharmacy benefit managers or PBMs. These enterprises sprouted to deal with concerns by big companies and insurers over the nosebleed costs of prescription medications. PBMs were supposed to reduce costs. They did just the opposite. As the Wall Street Journal reported: “Firms that manage drug benefits, which promise to keep a lid on high drug costs, instead steer patients away from less expensive medicines and overcharge for cancer therapies, Federal Trade Commission investigators found.” The New York Times did a deep dive on PBMs and their profiteering practices, finding that the enterprises’ clout has grown in part through another harmful aspect of U.S. medicine: consolidation. Over time, firms — including PBMs — have merged, partnered, and gobbled up competitors, growing ever and ever larger. This phenomenon is sweeping medicine, and its effects have been much studied in hospitals. Researchers have found that greater consolidation of hospitals leads to rising and even runaway prices for patients. |
A chasm grows as patients get stuck with burdens of care |
It’s an obvious and disillusioning part of medicine. Patients suffer through it. And medical researchers are examining more deeply now just how much the medical system burdens us as we seek care. The issue looms large for older patients, reported Judith Graham, a columnist focusing on aging issues for the independent, nonpartisan KFF Health News service. She cited in a recent article the distressing findings of a new study by Ishani Ganguli, an associate professor of medicine at Harvard Medical School: “Medicare patients spend about three weeks a year having medical tests, visiting doctors, undergoing treatments or medical procedures, seeking care in emergency rooms, or spending time in the hospital or rehabilitation facilities. (The data is from 2019, before the Covid pandemic disrupted care patterns. If any services were received, that counted as a day of health care contact.) That study found that slightly more than 1 in 10 seniors, including those recovering from or managing serious illnesses, spent a much larger portion of their lives getting care — at least 50 days a year. ‘Some of this may be very beneficial and valuable for people, and some of it may be less essential,’ Ganguli said. ‘We don’t talk enough about what we’re asking older adults to do and whether that’s realistic.’” Graham also quoted Victor Montori, a professor of medicine at the Mayo Clinic in Rochester, Minn., who has studied patients’ “treatment burden,” which he described this way: “In addition to time spent receiving health care, this burden includes arranging appointments, finding transportation to medical visits, getting and taking medications, communicating with insurance companies, paying medical bills, monitoring health at home, and following recommendations such as dietary changes. “Four years ago — in a paper titled Is My Patient Overwhelmed? — Montori and several colleagues found that 40% of patients with chronic conditions such as asthma, diabetes, and neurological disorders ‘considered their treatment burden unsustainable.’ When this happens, people stop following medical advice and report having a poorer quality of life, the researchers found. Especially vulnerable are older adults with multiple medical conditions and low levels of education who are economically insecure and socially isolated.” Graham wrote that doctors, hospitals, and other medical providers can be oblivious to demands they routinely make on patients, with older folks especially struggling with tech advances that force them uncomfortably to online records, scheduling software and a heavy reliance on smartphones. Further, because medical providers run on such hectic schedules these days and don’t get to know patients and their situations well, they don’t pick up nuances about the lives of those in their care. They don’t realize how stressful it can be when appointments get switched, medical personnel run late, or multiple visits are needed as part of treatment. That can be a nightmare for patients, who, because of age, infirmity, economics, and other circumstances must rely on loved ones, friends, or public transportation. Graham noted that many caregivers these days must support several family members’ medical needs and scheduling and taking time off work can push them to the brink. Providers fail to offer patients help in coordinating their care. The aged, sick, and injured — and their loved ones — also may not know to ask if social workers or other trained professionals might be able to assist them. |
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