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Archive for December 2010

Dec
29

Triangulating Healthcare Lessons

by Dr. Doug Perednia

Steel Puzzle SphereIt’s often hard to see the Big Picture in healthcare unless you read enough sources and know enough about the topic to be able to triangulate stories. A marvelous example of multiple stories describing different parts of the same big picture became apparent over the past few days in the form of two posts from Dr. Scot Silverstein on the Health Care Renewal blog, a post by Dr. Richard Fogoros (aka, “Dr. Rich”) on The Covert Rationing Blog and an article by an insurance executive on Bloomberg. Individually they are interesting, but together they tell a marvelous tale that really gets at the truth about the American experience of Hellth. Let’s begin with Dr. Silverstein. As many of our regular readers may know, Dr. Silverstein is an expert on medical information systems and frequently writes about electronic health records (EHRs, aka EMRs), both on the HCR blog and on this excellent website that he maintains specifically for the purpose of bringing problems with these technologies to light. In his first post, Dr. Silverstein comments on news of a recent large RAND Corporation study that was supposed to demonstrate the extent to which EHRs improved the quality of care provided by hospitals. He quotes the news article in his blog post, with annotations:

“The RAND study is one of the first to look at a broad set of hospitals to examine the impact that adopting electronic health records has had on the quality of care.

 

The research included 2,021 hospitals – about half the non-federal acute care hospitals nationally. Researchers determined whether each hospital had EHRs and then examined performance across 17 measures of quality for three common illnesses – heart failure, heart attack and pneumonia. The period studied spanned from 2003 to 2007.

 :

The number of hospitals using either a basic or advanced electronic health records rose sharply during the period, from 24 percent in 2003 to nearly 38 percent in 2006. [How many billions of dollars diverted from patient care needs does that represent? - ed.]

 

Researchers found that the quality of care provided for the three illnesses generally improved among all types of hospitals studied from 2004 to 2007. The largest increase in quality was seen among patients treated for heart failure at hospitals that maintained basic electronic health records throughout the study period.

 

However, quality scores improved no faster at hospitals that had newly adopted a basic electronic health record than in hospitals that did not adopt the technology.

 

[In other words, the improvements or lack thereof had little to do with electronic vs. paper record keeping - ed.]

 

In addition, at hospitals with newly adopted advanced electronic health records, quality scores for heart attack and heart failure improved significantly less than at hospitals that did not have electronic health records.

 

[In other words, the clinical IT was probably impairing doctors compared to simpler paper methods and good HIM personnel - ed.]

 

EHRs had no impact on the quality of care for patients treated for pneumonia.”

Now ordinarily you might expect that the conclusion of a study like this would be that we should be re-thinking our nation’s approach to EMRs. After all, American hospitals and physicians are being forced by the federal government to spend billions upon billions of dollars and uncounted hours deploying these things, or else face severe financial penalties. But that’s not the conclusion that the investigators at RAND would like us to reach. Instead, we are presented with this rather dubious conclusion, which Dr. Silverstein rightly questions:

‘”The lurking question has been whether we are examining the right measures to truly test the effectiveness of health information technology,” said Spencer S. Jones, the study’s lead author and an information scientist at RAND. “Our existing tools are probably not the ones we need going forward to adequately track the nation’s investment in health information technology.” ["Probably" not the ones we need? How can Jones know this? This is not science, it is speculation. Further, I'd say the scientific imperative before we design "the right measures" to "truly" test the effectiveness of HIT is to understand why the measures we're using now are not showing the desired results, because perhaps they are perfectly adequate and are revealing crucial flaws, overestimations and false assumptions that need to be dealt with, now, not after another round of billions is spent - ed.] New performance measures that focus on areas where EHRs are expected to improve care should be developed and tested, according to researchers. [In pharma clinical trials, this is akin to what is known as "changing the study methodologies and endpoints" - a form of manipulating clinical research, usually with the true ultimate endpoint of money - ed.]”

The real point here is that it seems that even the most “scientific” EHR proponents (let alone the political or corporate ones) would never accept that the current complex, expensive and unwieldy EHRs are of little or no net clinical value, no matter what any study shows. (It’s a little like that old aphorism, “My mind is made up, don’t confuse me with the facts.”)
So if these things are so expensive and disruptive to providers, and yet they are being deployed anyway, what’s behind the trend? Well one obvious answer is that the corporations who manufacture EHRs have done an excellent job lobbying Congress and the Obama administration. Heck, given the roughly $20 billion devoted to “encouraging” the purchase of EHRs in the 2009 stimulus bill, there can be little doubt about that. But Dr. Silverstein’s second post hits upon another reason – the battle to secure payment on the part of hospitals, and deny payment on the part of insurers. A financial cyber war if you will. This post is entitled: “Inpatient or outpatient and the battle to control costs: The truth about the push for electronic medical records?”, and it explores the conflict between hospitals and insurers about what constitutes “in-patient” versus “out-patient” care. Since the former pays more than the latter, considerable amounts of money are at stake. From the blog:

“’… Joanne Mainart and Donna Tobin are nurses and case managers at Abington who review admissions. Mainart was hired for this job a year ago; Tobin joined her in March.

 

They sit at their own computer in the ER [i.e., with their own access to the EHR - ed.], away from patients, and when they see a black ball beside a patient’s name [signifying the insurer may deny an inpatient claim and pay at aforementioned "outpatient inpatient" rates - ed.], their job is to examine medical records and treatments and determine if the patient meets criteria for inpatient admission.

 

Doctors still make the decision. These nurses only advise. But their mission is to make sure patients get put in the right category – inpatient admission or observation [so the hospital can be paid appropriately - ed.]

 

Assigning Mainart and Tobin to the ER was Abington’s response to the push toward observation.

 

And this:

 

… Blue Cross has its own team of utilization review nurses, all of whom, it says, have at least five years experience and have received special training in utilization review.

 

One of the nurses, working at the Blue Cross offices in Plymouth Meeting, got access to Abington’s computers through a secure logon [they can see the EHR too! - ed.] and reviewed the same records Tobin had the previous evening.

 

[Note the centrality of the computers in this payment "poker game" process - ed.]

 

The Blue Cross nurse did not feel Klein [the patient whose case is discussed in this article] met InterQual.

 

[Since nurses cannot unilaterally make these decisions, a physician later reviewed the case and concurred - ed.]

 

So, there we have it.

 

Physicians’ work is interfered with by EHR’s ostensibly put in place to “help them”, but in reality a behind-the-scenes cybernetic game of financial chess is going on, worth billions to hospitals and the insurers.

 

If that is not a compelling driver for EHR technology, I don’t know what is.”

All righty then. It’s not really about quality at all, it’s really about money. After all, if EHRs were a drug or a medical device, Medicare and all of the other insurance companies would have required the manufacturers to demonstrate that they were safe, effective and improved the quality of care before ever allowing them to be sold and used by patients and providers in the healthcare marketplace. But if you listen to the high-minded pronouncements of folks like Medicare chief Dr. Don Berwick, there is still another function that is commonly used to justify the huge amounts of time and money spent on EMRs. It’s that all of the vast amounts of electronic data that they’ll create will somehow be useful for creating new, improved and evermore effective centralized rules for doctors to follow when providing healthcare services. All of these “optimized” and sophisticated guidelines will reduce the errors that physicians are guilty of making. Care will be improved, costs will go down and lives will be saved. This argument for the power and might of EHRs, and the centralized decision making they make possible, leads us to this post by Dr. Rich. In it, he discusses this idea advanced from the left by people like HHS Secretary Kathleen Sebelius, and Medicare chief Don Berwick, and from the right, by The Cato Institute’s economist Arnold Kling:

“For example, a few years ago the noted economist Arnold Kling strongly defended the idea. ‘My own view is that a remote third party probably can use statistical evidence to make good recommendations for a course of treatment.’

 

Now, Kling is no far-left radical, pushing for centralized control of healthcare (and everything else). Indeed, he is now with the Cato Institute, and before that he taught economics at George Mason University. So he has earned his conservative and/or libertarian chops.

 

And to be fair, he is not really calling here for “remote third parties” to have final authority on what’s best for individual patients. Rather, he thinks patients should make that decision for themselves, weighing the recommendations of data-driven guidelines promulgated by remote experts, against the ego-toss’d recommendations from their all-too-fallible doctors, or, as Kling sarcastically refers to them, their “heroic personal saviors.” (Such sarcasm, regular readers will know, is as abhorrent to DrRich as it probably is to you.) Kling is saying: trust patients, armed with good evidence-based recommendations handed down from experts, to make the right decisions for themselves.”

Dr. Rich finds several faults with this approach, but here we’re mostly interested in the first one:

“The first flaw, of course, is the idea that remote third parties, wielding evidence-based data, can make good treatment recommendations for individual patients. Evidence-based guidelines, almost by definition, are designed to improve the average outcome across a population of individuals, and are specifically designed not to optimize outcomes for each individual within that population.”

Which leads to our final point of triangulation – a poignant article by health insurance executive David Klein. In his article, Mr. Klein tells us of the frustration he felt when seeking answers for the treatment of his wife Linde’s oral squamous cell carcinoma, and how it led him to understand that good medical care simply cannot be approached as an all-knowing, centralized process:

“What Linde and I have learned over the past two years has broadened my fundamental beliefs about medicine. In sum, while amazing advances have been made and miracles are occurring, medicine remains very much an art.

 

I’ve spent almost 40 years on the business side of the health-care industry, including the last seven as chief executive officer of a health plan. I believed my network of contacts would serve us well. I presumed there were unambiguous answers to questions about the best treatment plan and the best providers.

 

What I learned was that for uncommon diseases like Linde’s, if not all diseases generally, clear answers often don’t exist. I will never forget one doctor telling me that the information I sought wasn’t available and that I would have to trust my gut. This is pretty incredible when you think about how much as a society we spend on health care.

 

The new federal health-care reform law promotes the adoption of health-information technology and supports comparative effectiveness research to understand the marginal contributions of new drugs, devices and procedures. But what we learned with Linde’s treatment is that data on innovations, especially for less common diseases, isn’t sufficient to broadly create evidence-based medicine.”

Together these articles cover an enormous amount of ground, but the central message is that we’re making a big mistake if we think that coercing our doctors into using expensive and complex information technology and following the edicts of centralized “panels of experts” is going to get us where we want to go as patients. These are the obsessions and grand managerial plans of people who really don’t know much about doctors, patients and the real-world of delivering and receiving healthcare services. People in government bureaucracies, insurance companies, think tanks and academic medical centers, whose livelihoods depend upon claiming to be smarter, better informed and more creative than clinicians who actually deliver the care. These regulators and technocrats have now been in charge and working their will on healthcare for over 20 years. How’s that been working out? Not so well. That should be apparent to anyone who will just look around and connect the dots.

Categories : Electronic Medical Records
Dec
23

What Constitutes a “Government Takeover” Anyway?

by Dr. Doug Perednia
Pants On Fire Award

When is the "Lie of the Year", not the "Lie of the Year"? When you accept that not all "facts" are as cut and dried as media pundits would like them to be.

As almost everyone has heard by now, this week the PolitiFact.com project of the St. Petersburg Times received a heady dose of publicity by announcing their “Lie of the Year”.  This alleged fib, as determined by their reporters and editors, is the claim that ObamaCare represents a “government takeover of health care”.

The folks at PolitiFact justify their prize by saying:

“Government takeover” conjures a European approach where the government owns the hospitals and the doctors are public employees. But the law Congress passed, parts of which have already gone into effect, relies largely on the free market:

 

  • Employers will continue to provide health insurance to the majority of Americans through private insurance companies.
  • Contrary to the claim, more people will get private health coverage. The law sets up “exchanges” where private insurers will compete to provide coverage to people who don’t have it.
  • The government will not seize control of hospitals or nationalize doctors.
  • The law does not include the public option, a government-run insurance plan that would have competed with private insurers.
  • The law gives tax credits to people who have difficulty affording insurance, so they can buy their coverage from private providers on the exchange. But here too, the approach relies on a free market with regulations, not socialized medicine.”

They then quote Maggie Mahar, who write the Health Beat blog for The Century Foundation:

“Mahar said the GOP simplification distorted the truth about the plan. “Doctors will not be working for the government. Hospitals will not be owned by the government,” she said. “That’s what a government takeover of health care would mean, and that’s not at all what we’re doing.”

There have already been many blog posts, editorials and commentaries written that variously support and attack PolitiFact’s award and its characterization of the “ObamaCare government takeover” as a lie.  We won’t bother to plough that ground again.  But PolitiFact’s publicity stunt does beg the question of what really does constitute a government takeover of healthcare, and how we’ll know when we have one.  Let’s think about this for a second.

The first thing that everyone ought to appreciate is that there is no bright, clear line that conveniently defines when our government, or any government, has truly “taken over” the healthcare system.  There are only degrees of government control.  Some aspects of America’s healthcare system, such as the Veterans Administration, are already under complete and total government control.  Other areas, like cosmetic surgery, are under government control only to the extent that certain aspects of their provision (e.g., FDA approval of drugs and devices, and medical licensure) are regulated by government agencies.  The vast majority of the healthcare system is currently somewhere in between; with services delivered by private individuals and companies, but with a stiff dose of government intervention.  In fact, in many respects one could argue that the government has already “taken over” many of the most critical aspects of the healthcare business.  As we’ve discussed in previous posts, the government directly or indirectly fixes the prices of most healthcare goods and services, thereby determining their supply, demand and distribution.  It has begun to mandate the technologies that must be used to create and maintain medical records.  It even regulates what those medical records must say in order for providers to avoid accusations of “fraud”.  It regulates what drug companies are allowed to say about how and why their products are being used in clinical practice.  The list goes on and on.

ObamaCare will clearly shift the scales toward increasing levels of government control on every level.  That much is beyond dispute.  The complete extent of government control that it will eventually involve is currently unknowable, because so much of the implementation has been left up to the discretion of the Secretary of Health and Human Services and new government bureaucracies like the Independent Payment Advisory Board.  But it’s certainly the case that you don’t have to actually own doctors, hospitals or insurance companies in order to completely control every aspect of their existence.  Saying that a “takeover” requires ownership is a bit like saying that you have to own a car in order to drive it.  If you rent or borrow a car you may not own it, but it still drives and behaves as if you did.

So what can we truly learn from this particular media event? Ironically, the take-home lesson lies in another quote by Maggie Mahar that PolitiFact cited to justify its award:

“’If you’re going to tell the truth about something as complicated as health care and health care reform, you probably need at least four sentences,’ said Maggie Mahar, author of Money-Driven Medicine: The Real Reason Health Care Costs So Much. ‘You can’t do it in four words.’”

No indeed.  And if you want to tell the truth about whether the ObamaCare law does or does not represent a “takeover” of American healthcare by the government, you’ll also need more than four words.  Four over-simplistic and uninformative, but headline-grabbing words.  Four little words like: “Lie of the Year”.

Categories : Liar Liar Pants on Fire Awards
Dec
13

Giving Medical Students Their First Taste of Bureaucracy

by Dr. Doug Perednia

I’ve been spending the past couple of weeks as a visiting scholar at the University of Arkansas for Medical Sciences (UAMS), talking with people about healthcare economics, reform, and various aspects of dermatology and telemedicine.  At one point I had the pleasure of attending a reception for some fourth year medical students who were applying to residency positions at UAMS.  Over small plates of cheese and chicken nuggets I listened as they recounted their training to date.  One of them mentioned having to travel some way to take the U.S. Medical Licensing Examination (USMLE) Step 2 CS.  Having graduated from medical school in the 20th century, I naively asked what that meant.

“Why it’s one of the tests that you have to pass in order to become a doctor now”, the petite, bright-eyed and eager young woman from Texas explained.  “It’s supposed to prove that you understand English and know how to do a history and physical exam before you graduate from medical school.”

“And all medical school students have to take this?” I asked.  “Even the ones who are native English speakers?”

“Yes,” she replied.  “It used to be that only foreign medical graduates had to take it, but now everybody does.  It’s only given in five cities and it costs $1,200 to take.”

Although never surprised by America’s healthcare providers having to fork over increasing amounts of money in exchange for the honor of accepting less and less real compensation, this was news to me.  Up until a few years ago a physician’s clinical skills were assessed by a few role-playing patients and the constant observations of the dozens of medical students, residents, faculty and attending physicians we worked with in the clinics every day.  If we screwed up, we generally heard about it long before we were given the opportunity to venture out into the world on our own.  After all, it’s the job of medical schools to train competent physicians and vouch for the quality of the graduates they produced.  Why are we suddenly force medical students to pay thousands of dollars and travel for the privilege of confirming what their medical school should have already verified?  Have we been training and graduating large numbers of incompetent physicians in our medical schools in the century between the Flexner Report and today?  And if not, what are the economics behind this?

It turns out that our residency candidate was right.  Until 2004, a clinical skills exam was only required for graduates of foreign medical schools who wished to practice in the U.S.  A major part of this exam was to ensure that physicians wishing to practice in the U.S. could speak English.  Indeed, one-third of the score of the Step 2 CS exam is based solely upon being able to speak and communicate in English.  So how did U.S. medical school students get sucked into having to fork out thousands of dollars in order to take this?  As is usual on the Road to Hellth, the answer is a combination of greed, bureaucratic thinking and a lack of common sense.

According to an explanation by the Clinical Skills Center at the Ohio State University Medical Center, our system of carefully regulated and nationally accredited medical schools is at fault.  Despite turning out some of the best clinicians in the world, a few of them just weren’t living up to their obligations when it came to clinical training:

“Medical schools vary in the ways they teach clinical skills and the standards they use to evaluate them. The clinical skills exam will establish a national standard that all students will need to meet before they practice medicine. Some US students still graduate without ever being observed in clinical settings. During recent field trials, 20 percent of the fourth-year students who completed a survey said they had been observed interacting with a patient by a faculty member two or fewer times. One in 25 said they had never been observed by a faculty member.”

Of course, the fact that they weren’t observed doesn’t mean that these medical students were in any way inadequate, but it does raise questions.  And we’ve learned that the problem is apparently limited to somewhere between 4% and 20% of medical school trainees in the United States.  In short, this is a quality control issue involving a small fraction of our total medical student “production”.  Let’s think about how a similar problem would be addressed in the unregulated private sector as compared to our dysfunctional healthcare system.

Imagine that you have a number of factories spread all around the country.  These factories make widgets, and the quality of these widgets is important to you and your customers.  All of the factories are carefully set up and regulated, with almost exactly the same quality of machines, personnel, technology and training.  But a problem suddenly presents itself.  Somewhere between 4% and 20% of the widgets produced are not being inspected before leaving the factory.  You have only a limited number of factories to deal with, and nearly all of the factories are inspecting virtually all of the widgets they produce on a regular basis.  What do you do?

If you’re like most executives, you’ll simply shoot an e-mail to each factory.  It would ask them to tighten up the inspection and testing that they already perform on their widgets prior to shipping.  In all likelihood only a small number of plants will be affected, and the cost of implementation should be minimal.  After all, they’re already turning out products that are almost all of excellent quality, and they’re already inspecting nearly all of the widgets anyway.  They certainly have the expertise and ability to assess the quality of all of their output if they wish to do so.  All they need to do is step up the inspection process a bit.  If a couple of parts are found to be defective, you can either re-work them immediately or discard them as appropriate.

That all seems pretty reasonable.  How does this plan compare to the solution crafted by the “thought leaders” in charge of America’s medical-industrial complex?  Faced with the same problem, they took a completely different approach.  Rather than asking that each factory add on a few additional inspections, they decided to create a much larger burden and shift it downstream onto the widgets themselves.  Henceforth, every single widget produced – no matter what sort of inspections it had previously undergone at the factory – would be individually transported to one of five cities scattered around the country.  There it would be inspected, at considerable expense, by an outside company with a self-granted monopoly on the independent inspection process.  If a widget was found to be defective it was transported back to the factory for additional work.  After being re-worked, each part would once again be sent back to one of the monopoly’s five testing cities for re-inspection, and for yet another fee.

So how has all of that worked out, and at what cost?

Shown below is a table from the USMLE website, detailing the pass rates for medical students taking the Step 2 CS exam in 2007-2008.  The results for earlier years are virtually identical.

Examinees from U.S./Canadian Schools that Grant MD Degrees # Tested % Passing
Total 17,302 97%
1st Takers 16,715 97%
Repeaters 587 92%

As you can see, first-time test takers from U.S. and Canadian medical schools had a passage rate of 97%.  When the medical students who failed the first time were re-tested, 92% of them passed the second time around.  Therefore of the roughly 17,000 domestically trained medical students taking the test each year, 16,962 of them or 99.8% will pass on the first or second try.  The total washout rate on the test is only 0.2%, or a total of 38 students each year – a handful of students who clearly could, should or ought to have been washed out by their medical schools earlier in the process.  We can all agree that it’s good that these folks were washed out; but the real issue is whether the benefits of finding a whopping 38 students in this way is worth the direct and indirect cost of screening every domestic medical student in the country.  What does that cost?

In 2011, the Step 2 CS exam registration fee is $1,295 per student.  (If you schedule and have to re-schedule for some reason, it can cost you an addition $400.)  Since the exam is only given in five cities (Atlanta, Philadelphia, Chicago, Houston and Los Angeles), the vast majority of students will have to travel to one of these cities and stay overnight for at least one night.  Let’s assume that the average travel cost per student is only $250 round-trip, and the average hotel bill is just $100, (which, given the cost of staying in any of these cities is probably a gross underestimate.)  Here’s the result when you apply these numbers to the 17,000 domestic medical students taking the test each year:

Item Cost
Test fee to USMLE $22,015,000
Travel $  4,250,000
Accommodations $  1,700,000
Total $27,965,000
Cost per student washed out $731,111
Cost per U.S./Canadian Med School $186,433

Of course, none of this includes the time lost for the 17,000 young men and women actually having to travel and take the examination.

It should be obvious to even the dullest medical policy maker that, for the same price, every domestic medical school could hire two (or even three) people to do nothing but watch medical students and assess their clinical skills.  And this would be done in a setting where the problems could be immediately corrected, making our medical graduates better and better over time.  Realistically it would only take one part-time person at each medical school to provide all of the benefits of the USMLE Step 2 CS, at a tiny fraction of the price.

In the face of $2.4 trillion spent on healthcare in America every year, the amount of money involved in USMLE Step 2 CS is chickenfeed.  Heck, it’s practically a rounding error.  But it’s a perfect example of why our healthcare is the most expensive in the world, and keeps growing more costly each year.  When a problem becomes apparent in healthcare, our medical and political leaders have only one fixed, reflexive pattern of response:

  1. Create or expand an outside agency or organization rather than working directly with the healthcare experts involved;
  2. Have that outside agency create new mandatory requirements that add to the total amount of work and expense already present in the healthcare system; and
  3. Spend a bunch of other people’s money in the process.

The electronic medical record mandate in the 2009 stimulus bill and the ObamaCare law itself are the most recent, and the most expensive, examples of this thinking.  Unfortunately it’s this approach that’s gotten us into this mess.  Implementing more of it is not about to get us out.

There are much better and much simpler ways to get the results we want.  It’s time to wake up and switch paradigms.

Categories : Bureaucracy Run Amok

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