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Case Study: A Frivolous Law Suit

I’m at a medical conference in Houston this week (picking up some CME credits) and between lectures I’ve had some interesting conversations with my peers. Here’s my favorite story:

A patient underwent a total hip replacement surgery, had a normal post-operative course, was transferred for inpatient rehabilitation, progressed well and was discharged home. Several months later the patient decided to sue the hospital, claiming that he was sent home with a dislocated hip. The hospital couldn’t prove that the patient’s hip was not dislocated at the time of discharge because no x-ray was taken on that day. Of course, the only reason an x-ray would have been taken was if there were a strong suspicion of a fracture or dislocation (x-rays are not normally repeated on the day of discharge).

The hospital was found liable and will settle out of court for an undisclosed (but very large) amount.

My guess is that this case will cause:

1. The hospital to take unnecessary x-rays of all total hip patients on the day of discharge from now to eternity.

2. More dishonest patients to file frivolous law suits.

3. The local med/mal attorney population to spread the word about a new source of income.

4. Further cutbacks in the hospital’s charitable care due to funding deficits.

5. Someone with a hip replacement to buy a new Ferrari.

Sigh.This post originally appeared on Dr. Val’s blog at RevolutionHealth.com.

Some San Francisco Restaurants Now Pay 67% More In Health Benefits For Employees

As you may have heard, the City of San Francisco has decided to provide access to healthcare for all its inhabitants, including about 82,000 uninsured and undocumented workers. How will they pay for this? Time magazine reports:

Annual funding for the $203 million program will come from re-routed city funds (including $104 million that now goes toward uninsured care via emergency rooms and clinics), business contributions and individual enrollment fees, which will be income-adjusted.

Businesses with more than 20 employees are required by law to pay for health coverage for employees. This has hit the restaurant industry hard, and the fallout is reported in a recent article in an AHIP newsletter:

Phan pays as much as half the cost of health insurance for about 100 full-time employees. Another 100 part-timers get no coverage. He estimates that his healthcare costs will jump by 67% to $500,000 this year with the new program.

Such “a constant assault” makes “every chef I talk to not want to open another restaurant in San Francisco,” he said.

And owners of smaller places, with fewer than 20 employees and exempt from the healthcare requirement, say that it’s become too costly to expand in the city, even when business is booming.

“We will always have 18 [employees] now,” vowed Anna Weinberg, a co-owner of South, a 50-seat restaurant featuring Australian cuisine that opened in October. Weinberg plans to open her next eatery on the Westside of Los Angeles.

In order to comply with the new ordinance (which is being appealed and may even go to the Supreme Court), employers may do any of the following:

There are essentially five ways to satisfy the health care expenditure requirement of the ordinance:  (1) make a contribution on behalf of the employee to a health savings account; (2) reimburse an employee directly for his or her out-of-pocket expenses; (3) purchase health care coverage for an employee through a third party; (4) directly provide health coverage to an employee by means of a self-insured program; or (5) make a payment to the City of San Francisco, which will then, in turn, use the payments to fund a program for all uninsured City residents.

While I sympathize with the concept of having healthcare for all, I wonder if San Francisco’s approach will backfire? When businesses can no longer afford to employ workers, unemployment skyrockets, industries leave town, and those who are left will have to pay even more to shoulder the burden. San Francisco is one of the wealthiest cities in the United States, and may survive longer than other cities with these new laws, but in the end I think we might see a mass exodus and the beginning of a local economic depression.

Are the restaurant owners a collective “canary in a coal mine,” or do you think the San Francisco healthcare solution is the lesser of the evils? Will the nation learn something important from this bold initiative?This post originally appeared on Dr. Val’s blog at RevolutionHealth.com.

Medical Identity Theft: It Could Happen To You

There have been some recent news stories about a new type of identity theft – people (presumably without health insurance) are able to get coverage by stealing your insurance information and posing as you during hospital visits. Alternatively, hospital employees can steal your information and sell it on the black market. Some people estimate that medical identity theft may account for up to 3% of all identity theft in the US. Yikes! I even blogged about an infuriating previous encounter I had with a medical identity thief in the inner city.

I had my identity stolen once about 7 years ago – it was a very sobering experience. One day my credit card company called me to ask about some suspicious activity… which led to tracing events and purchases with eventual police involvement, further investigations, culminating in a Nigerian crime ring apprehended in upstate New York. Wild stuff. But I still use credit cards.

I would hate to think that medical identify theft could stall our good faith efforts at streamlining the healthcare experience. Sharing information securely and safely is a critical piece of the continuity of care and quality puzzle. Will there be hackers? Probably. Will some people be victimized? No doubt. But the vast majority of folks (if appropriate precautions are taken) will benefit from having all their providers on the same page, their medications, tests and procedures de-duped, and accurate records available for loved ones in emergencies.

The elephant in the room is whether or not people will be excluded from insurance coverage based on their electronic health records. To me, that’s scarier than potential medical identity theft, and probably the largest reason why patients are hesitant to digitize their health information (i.e. use PHRs).

What do you think about this elephant? Is there anything that can be done about him?This post originally appeared on Dr. Val’s blog at RevolutionHealth.com.

Fixing American Healthcare: The Primary Cause of Rising Costs

In Fixing American Healthcare, Dr. Rich explains that the major cause of rising costs in healthcare is an aging population that requires more resources. Though some have proposed that fraud and waste/inefficiencies are the primary sources of costs spiraling out of control, the truth is that they likely play a minor role compared to the tremendous costs of providing cutting edge treatments to an older and sicker US population. Dr. Rich argues that we don’t hear that much about the escalating cost of caring for older Americans because it makes us squeamish, so we instead focus on curbing costs due to fraud and waste. However, when fraud and waste are not the primary cause of increasing costs, enhanced attempts to quash them do not actually move the savings needle. Since certain groups are tasked with reducing escalating costs due to fraud (in particular), and their work does not result in savings, they must strive harder to find and punish those accused of fraud, perhaps even seeing fraud where it doesn’t exist.

Dr. Rich argues that true fraud is fairly rare, and that the majority of “fraud” cases involve people not complying with rules they had no knowledge of (in many cases even after asking about the rules from the people who made them). Other cases of “fraud” involve retroactive application of rules and then fining hospitals for not being in compliance before the rules were made. His assessment of the PATH audit debacle is quite interesting.

Now, obviously we want to decrease fraud and waste as much as possible – but in the midst of our desperate attempts to curb healthcare spending, we’ll need to have some honest and frank discussions about the elephant in the room: America is sicker than ever before, and we have developed expensive ways to cure/treat those sicknesses – ways that we can’t afford to offer everyone.

What should we do? Dr. Rich suggests that we come together as a nation and decide on some rationing rules. He argues that we’re already rationing our healthcare dollars in covert ways – let’s bring it out into the open so that it’s fair to everyone. Now, I doubt that this will sit well with Americans – but our current “system” is so dysfunctional that maybe the time for a rationing discussion has come?

In this climate of unlimited treatments and limited resources, the best option is to stay healthy as long as possible. That’s why I believe in preventive medicine, healthy lifestyle changes, and doing all that we can to avoid getting sick. In many cases (but certainly not all) eating healthy foods, exercising regularly, controlling our weight, getting our vaccines, and sleeping well each night can go a long way to keeping us out of the hospital. It’s not easy to get Americans to take care of themselves in this way, but I’d rather spend my efforts trying to get us fit than to have to debate rationing rules. In the end, however, we may need to do both. What do you think?This post originally appeared on Dr. Val’s blog at RevolutionHealth.com.

"Allstate-itis"

This (hat tip to KevinMD) is one of the worst cases of attempted personal injury fraud that I’ve heard of:

It was a very busy weekend afternoon in the ED when a city bus accident occurred. What a disaster. Rarely is anyone really injured but everyone on board almost always winds up coming into the ED. The city encourages it so things can be documented and people are like “Cha-Ching!”, lawsuit! So, this particular time, about 5 people were brought in on back boards (we were lucky to get so few!)  As the 3rd year resident started interviewing them one at a time (since all were stable and ambulatory (walking) at the scene), one of the patients said, “Hey Doc, that guy over there was not even on the bus at the time of the accident! He jumped on board afterwards and started complaining of back and neck pain!” The resident could have gone over and confronted him angrily (who would blame him) but instead chose a different approach. He calmly went through all the other backboarded patients, clearing them all clinically out of their cervical collars. He simply ignored the man suffering from “Allstate-itis”. The funny thing is that 2 hours went by and everyone just ignored him (although I think he was triaged at some point – damn EMTALA). All manner of stuff was going on around him. His stretcher was parked right next to the nursing station yet it was like he did not exist! Finally, the guy called the resident over and said, “Hey Doc, isn’t someone going to check me out and do x-rays?” He replied, “Well, you weren’t even on the bus so in my mind, you are already checked out!” Knowing the jig was up, the man sat up, took his C-collar off, and left the ER. I guess he was thinking, “Oh well, maybe next time I’ll hit the jackpot!”

This post originally appeared on Dr. Val’s blog at RevolutionHealth.com.

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