Big News — The Real Winner In Healthcare’s Red Tape Might Be The Drug Companies

Looks like the Medicare program is the source of a small fortune for many U.S. doctors. So says a trove of government records that reveal unprecedented details about physician billing practices nationwide.

According to the new data, the government insurance program for older people paid nearly 4,000 physicians in excess of $1 million each in 2012. And those figures do not include what the doctors billed private insurance firms.

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LINKS: Rage Against The Healthcare Machine

h gilbert welchIn case you needed any more reasons to get incensed with healthcare’s exorbitant costs, The New York Times has you covered. First, you’ll want to read their piece about how ridiculously overpriced it is to have a baby in this country (“American Way Of Birth, Costliest In The World” via The New York Times).

According to the article, “Women with insurance pay out of pocket an average of $3,400, according to a survey by Childbirth Connection, one of the groups behind the maternity costs report. Two decades ago, women typically paid nothing other than a small fee if they opted for a private hospital room or television.”

And that’s just the start. Read more

New Study Predicts that Majority Of Physician Practices Will Lose Money On Their EHR Systems

Dark Daily writer Patricia Kirk shares Michigan University research that suggests there are opportunities for physicians to make more money using EMR. However, a major factor that would theoretically help them make this proposed “money” includes using ONLY THE NEW EMR, not the new EMR in conjunction with pre-existing methods. Hmmm, so why would someone buy something to replace something, and then keep using the old thing? Oh right, the government paid them to buy it. We almost forgot.

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LINKS: Even With Meaningful Use, EHR Might Break The Bank

“Healthcare Observers Disagree on Cost-effectiveness of Electronic Health Record Systems” | Dark Daily
Along with the researchers at the University of Michigan, other experts have questioned EHR’s promise to deliver greater financial rewards. READ MORE

“If Practices Don’t Change, EHRs Lose Money” | Med Page Today
The average physician lost nearly $44,000 over 5 years implementing an electronic health record system, a large pilot study found, but the technology itself was just part of the reason. READ MORE

A Survey Analysis Suggests That Electronic Health Records Will Yield Revenue Gains for Some Practices and Losses for Many” | Health Affairs (abstract)
This Health Affairs abstract will require membership. However, the title alone should be cause for concern. READ MORE

“Health Insurers Spending Big Dollars to Be Players in ‘Big Data’; Trend has Implications for Clinical Pathology Laboratories” | Dark Daily
With healthcare reform not likely to increase their growth, health insurers are expanding into data management to find new ways to make money. READ MORE

“New Study Predicts that Majority Of Physician Practices Will Lose Money On Their EHR Systems” | Atlas Blog
It appears that government intervention, while useful in certain cases (for instance, monopolies), can impede the marketplace. In EMR’s case it encouraged mediocre products to be bought and sold, costing money and wasting time overall. READ MORE

Okay, So The Free Market Isn’t Exactly “Free”

First things first, The Atlantic published a Health article online recently. It’s a doozy, and after reading it, we did wonder, did it need to be this long?

However, it addresses a poignant issue: Drug companies are motivated by malleable policies that end up creating more incentive for hair regrowth drugs than ones fighting global diseases that are “Biblically”-severe i.e. malaria, Dengue fever and others.

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