This is why we have problems with cost in healthcare...
WASHINGTON, Aug. 2 — Under intense pressure from health care
lobbyists and lawmakers, the Bush administration says it will scale
back and delay proposed changes in Medicare payments to hospitals that
would have created clear winners and losers.
The proposals would have cut payments by 20 percent to 30 percent
for many complex treatments and new technologies. Hospitals will
instead see much smaller cuts or even small increases for many of those
procedures. Some of the changes will be phased in over three years.
Doctors, hospitals, consumer groups and members of Congress had
said the proposed cuts would be devastating. Under the proposals, they
said, patients would have had less access to some services like cardiac
care.
On Tuesday night, the Bush administration issued a final rule that
reaffirmed the overall goal of more accurate payments while backing
away from many of the proposed changes, including a sweeping revision
in the classification of patients intended to account for the severity
of their illnesses.
The reaction from Wall Street analysts on Wednesday was positive.
“The final rule significantly moderates proposed cuts for cardiac
procedures,’’ Citigroup said in a note to investors. Lehman Brothers
described the final rule as “a win for cardiac and orthopedic device
companies, specialty hospitals and general acute care hospitals.’’ The
Prudential Equity Group said the final rule, which takes effect on Oct.
1, was “favorable for device manufacturers’’ like Boston Scientific,
Medtronic and St. Jude Medical.
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This really frustrates me. Stockholders are happy. Device manufacturers are happy. But yet they want to cut fees to primary care doctors. There is not enough money for P4P that would likely have a huge impact on quality. The problem is, we are not listed on the NYSE. There is little problem with financial solvency in the cardiac device realm. There is an exodous from primary care. See a problem?
I don't sound bitter, do I?
A bright man told me that the medical device manufactorers and pharmacuetical companies hold the real power in heathcare, largely through their lobbying efforts. Providers and patients/consumers have very little clout in comparison. Non-healthcare businesses/employers, therefore, are the only ones who can offset this power through their influence on our government and insurers. And since employers can't stand the cost of health insurance (due in large part to the waste, ignorance, inefficiencies, mistakes, inappropriate care and greed plauging the healthcare industry), they must unite to demand significant change. The requisite tranformation must include rewarding providers for improving outcomes & controlling costs (e.g., P4P) and empowering the consumer through transparency of cost and effectiveness, while pressuring device manufactorers and pharmacuetical companies to cut costs. Stories like this support his contention.
See http://www.cphr.com/
Steve Beller, PhD
http://wellness.wikispaces.com