1. What has changed and how it came about?
While medical doctors and osteopathic doctors (MD & DO) were busy practicing their profession and taking good care of their patients, business people such as those in insurance companies and hospital executives, were busy trying to make some money off the medical profession. With that purpose in mind, over a period of 30 to 35 years they went about making changes that are now affecting everyone but themselves in an adverse way. Because of those changes, physicians are leaving the profession and the price of medical care has sky rocketed and the quality of the care has gone all to hell. How have the changes come about?
Lots of the stuff business people in insurance companies, hospitals and large medical groups are allowed to do and have accomplished, is because our legislators in Washington DC and at the state level sell themselves and get big political contributions from them! They get the laws passed that are convenient to them because of their big donations. Down below are examples of their huge "donations". Doesn’t it make you wonder how the health insurance policies of the politicians and health care executives compare to yours? Patients and doctors get shafted in the process with all this money floating around.
2. The way it used to be, and how patients and doctors were affected, and who profited.
As some of you may remember, in the past health insurance did not exist and if you went to the doctor, you paid them a modest fee in cash even for major surgical procedures. I remember my father, a practicing general surgeon who started his surgical practice in the late forties, would tell me in those days if a patient came to his office with a need for surgery, he would have to make the arrangements himself and collect the money for the hospital stay, the use of the operating room, the assistants, the anesthesiologist and everything else and the total would amount to $130 to $150. Out of that he would keep maybe $30 for the surgery. Simple office visits were around $5 or $10.
They passed the Medicare law for those patients over 65 years of age in 1966. The original monthly premium was $3 per month and it covered everything. I guess this happened because companies like BC/BS had been providing health insurance for younger patients since about 1929. BC/BS began when Baylor University hospital administrators (business people) were seeking a way to make health care “more affordable” or so they said, for their patients while at the same time controlling more and more patients. In its beginning, “The Baylor Plan” as it was called provided up to 21 days of coverage for hospitalization annually if patients prepaid 50 cents a month. Imagine that! $6.00 per year for health insurance for hospitalizations! From these early beginnings, things have degenerated in such a way as I will explain, that many patients can’t afford health insurance because of the outrageous monthly premium prices they have to pay, and additionally they have to pay out of pocket $5000 or more for care in so-called deductibles, co-pays and coinsurance, every single year even with health insurance.
At the other end of the spectrum are the physicians MD and DO providing the care. Their payments have gone steadily down each and every year and the complexity of billing insurance companies for their work has become more and more complicated, and the delays in payment longer and longer. Also, the number of denials in payment for procedures or treatment already performed on the patient has gone up and up. Having to hire more and more specialized people to do the billing for their work has had a great impact in their overhead. On top of all of the above, the price of supplies, malpractice insurance, office rent, etc. has gone up. To counteract the impact of lower payment amounts plus the increase in overhead, doctors have been forced to see more and more patients daily and their practice has become a rat race where patients do not get the care and time with the doctor that they deserve. Additionally, they get scheduled over and over to increase the number of visits they can be billed for and many unscrupulous doctors will recommend the most well-paid treatment by the insurance company, like spinal fusion, joint replacement, and ablations, even if a lower paying and less risky and less destructive treatment would suffice.
I will attach here a post by Ron Howrigon that I found on LinkedIn. It illustrates very, very well the situations physicians have faced over the last 30 plus years with different insurance companies and Medicare:
"Imagine this situation. You have worked for the same company for the last 20 years. When you started in 2003 your salary was $100,000 a year. Over the last 20 years your salary has dropped to $92,000. You meet with your boss and explain that you need a raise. You point out that in 2003 the Median cost of a home was $161,000 and that today the median house costs $374,000. You point out that over the last 20 years inflation has been 65% and that if your salary just kept up with inflation you should be making $165,000. Your boss listens to all of this and then informs you that he plans on cutting your salary for next year by 3.6% down to $89,000 per year.
Now at this point most of you are thinking; “Why would anyone stay working for a company like this? I would quit!” You are right. No one would continue this kind of madness. Well, no one except doctors.
These numbers reflect what Medicare has done with the physician conversion factor of the last 20 years. In 2003 the conversion factor was $36.79. In 2023 it was $33.89 which is an 8% reduction. The inflation numbers quoted above are real and accurate. So is the 3.6% reduction number because that is the proposed reduction in the conversion factor for 2024.
So, why don’t doctor just “quit Medicare”? Some don’t think they can survive without those patients (I think they are mostly wrong) but most don’t because they went into medicine to help people and these people need help and care. That just means that the government is taking advantage of physicians and the fact that they are good people who want to help people even when it’s at their own expense. "
With all of the above, managing an office and making ends meet has become very, very, complex and some doctors, tired of it all have decided to sell their practice either to a hospital or a large medical group in the hope of just practicing the medicine they love. Usually, this love affair does not last because the goals of the hospital or the medical group and the doctor are not the same. The doctor might have gotten rid of the headache of managing the practice and worrying about the billing, but this comes at the price of losing control and authority in the practice and having to sign a noncompete agreement and being the employee of the hospital or medical group and being told what to do and when. Since the goal of the hospital or group is to make more and more money, they will try to control more and more doctors and work them as much as they can doing what is more profitable.
The more doctors they control the more patients they can attract and the more leverage they have with health insurance companies to demand higher payment for the hospital services they can provide and less and less for the doctors providing the care. Click on this link and you will see how things are: https://www.theorthobiologicclinic.com/blog/are-health-insurance-companies-being-fair-to-physicians In this particular case 73.8% of what was paid by the insurance company went to the hospital and 26.2% was split among the three physicians who provided the care. How is that fair? Now you understand why many hospital CEO and health insurance executives have multimillion dollar salaries and golden parachutes at retirement. Take a look at the following picture and see if you recognize anyone and see their yearly compensation.
3. A different level of care implemented by profit seekers.
0 Comments