volinbham
VN GURU
- Joined
- Oct 21, 2004
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Some of the factors impacting our cost per treatment.
1) the NIH funding that was brought up earlier prioritizes (to the nth degree) funding for research that promises greater efficacy (better outcomes) regardless of cost. A shift in funding priorities (even if a % of the budget) to research promising equivalent efficacy (as currently available) but with a lower cost basis could fundamentally change medical innovation.
2) in conjunction with 1) the FDA approval process is geared towards approval of better efficacy rather than equivalent. These 2 together promote innovation that does not take cost into consideration at all.
3) we aren't that far historically from a "fee for service" model where insurance paid what doctors billed. as we've moved towards more "managed care" models some of that "pay whatever it takes" mentality is changing but it still lingers in the system.
4) the payer mix (private/public) creates a situation where providers must charge the private side higher prices to compensate for the low reimbursements coming from the public side. Have too many public payer patients and you're screwed.
5) we have artificial supply shortages via limited number of spots in medical school and licensing requirements for what type of provider can do what procedure/treatment. We've been moving towards PA's and NP's but our providers are still highly paid relative to other places.
6) ham-fisted "cost reduction" policies such as CMS's penalties on reimbursement rates for hospital readmits. A patient comes back within 30 days and is readmitted and your reimbursement rate is docked (even though you already lose money on these reimbursements). It's bad with Medicare since older people tend to have co-morbidities and what brings them back to the hospital may not be related to your care but you still get hit with the penalty. All this means you have to max out the private insurance patients to cover the losses here.
Bottomline, it ain't a simple fix that "Medicare for All" changes and the reality is there are benefits in private insurance provision. Since this country's leaders are too childish to have a serious discussion to really fix the issue I'd rather we tweak around the edges as opposed to redo the whole thing with the current clowns in charge.
1) the NIH funding that was brought up earlier prioritizes (to the nth degree) funding for research that promises greater efficacy (better outcomes) regardless of cost. A shift in funding priorities (even if a % of the budget) to research promising equivalent efficacy (as currently available) but with a lower cost basis could fundamentally change medical innovation.
2) in conjunction with 1) the FDA approval process is geared towards approval of better efficacy rather than equivalent. These 2 together promote innovation that does not take cost into consideration at all.
3) we aren't that far historically from a "fee for service" model where insurance paid what doctors billed. as we've moved towards more "managed care" models some of that "pay whatever it takes" mentality is changing but it still lingers in the system.
4) the payer mix (private/public) creates a situation where providers must charge the private side higher prices to compensate for the low reimbursements coming from the public side. Have too many public payer patients and you're screwed.
5) we have artificial supply shortages via limited number of spots in medical school and licensing requirements for what type of provider can do what procedure/treatment. We've been moving towards PA's and NP's but our providers are still highly paid relative to other places.
6) ham-fisted "cost reduction" policies such as CMS's penalties on reimbursement rates for hospital readmits. A patient comes back within 30 days and is readmitted and your reimbursement rate is docked (even though you already lose money on these reimbursements). It's bad with Medicare since older people tend to have co-morbidities and what brings them back to the hospital may not be related to your care but you still get hit with the penalty. All this means you have to max out the private insurance patients to cover the losses here.
Bottomline, it ain't a simple fix that "Medicare for All" changes and the reality is there are benefits in private insurance provision. Since this country's leaders are too childish to have a serious discussion to really fix the issue I'd rather we tweak around the edges as opposed to redo the whole thing with the current clowns in charge.