Category Archives: Healthcare Reform

The Dilemma of Medical Journal Integrity

When I was doing my Internal Medicine residency in 1981 to 1984, we held scientific medical journals in great esteem. The New England Journal of Medicine, for instance. It was published once weekly, about a hundred pages IIRC. At the end of the year, I sent my 52 copies off to a bindery to be glued into a hard-cover book format, to be cherished and consulted for years. That book was two or three inches thick. I did that for maybe five consecutive years; I’ve no idea where they are now. Probably in a landfill.

The told us on the first day of medical school, “Half of what we teach you will be obsolete in five years.” So continuing medical education is an imperative. One potential way to keep learning is to read medical journals.

You may be surprised to learn that I no longer read scientific medical journals very often. How do I keep my medical practices up to date? I work in the hospital side-by-side with surgeons and medical subspecialists (e.g., cardiologists, gastroenterologists). In general, I talk to them and watch what they do. If there is a ground-breaking new diagnostic tool or therapy, I’ll hear about it from them. They’re not in an ivory tower, isolated from patients. They’re in the trenches with me facing sick and hurting patient every day. I still read scientific medical journals, but take them with a nugget of salt.

I’m a science journal skeptic, questioning their reliability, objectivity, and relevance. By far, I’m not the only won. Check out the writings of Dr. Marcia Angell, former editor of New England Journal of Medicine, and Dr. John Ioannidis.

Seemay Chou had this to say about scientific journals:

I’m a scientist. Over the past five years, I’ve experimented with science outside traditional institutes. From this vantage point, one truth has become inescapable. The journal publishing system — the core of how science is currently shared, evaluated, and rewarded — is fundamentally broken. 

Vox Day has excerpted a TLDR from Chou’s article:

It might seem like publishing is a detail. Something that happens at the end of the process, after the real work of science is done. But in truth, publishing defines science.

The currency of value in science has become journal articles. It’s how scientists share and evaluate their work. Funding and career advancement depend on it. This has added to science growing less rigorous, innovative, and impactful over time. This is not a side effect, a conspiracy, or a sudden crisis. It’s an insidious structural feature.

For non-scientists, here’s how journal-based publishing works:

After years of research, scientists submit a narrative of their results to a journal, chosen based on field relevance and prestige. Journals are ranked by “impact factor,” and publishing in high-impact journals can significantly boost careers, visibility, and funding prospects.

Journal submission timing is often dictated by when results yield a “publishable unit” — a well-known term for what meets a journal’s threshold for significance and coherence. Linear, progressive narratives are favored, even if that means reordering the actual chronology or omitting results that don’t fit. This isn’t fraud; it’s selective storytelling aimed at readability and clarity.

Once submitted, an editor either rejects the paper or sends it to a few anonymous peer reviewers — two or three scientists tasked with judging novelty, technical soundness, and importance. Not all reviews are high quality, and not all concerns are addressed before editorial acceptance. Reviews are usually kept private. Scientific disagreements — essential to progress — rarely play out in public view.

If rejected, the paper is re-submitted elsewhere. This loop generally takes 6–12 months or more. Journal submissions and associated data can circulate in private for over a year without contributing to public discussion. When articles are finally accepted for release, journals require an article processing fee that’s often even more expensive if the article is open access. These fees are typically paid for by taxpayer-funded grants or universities.

Several structural features make the system hard to reform:

  • Illusion of truth and finality: Publication is treated as a stamp of approval. Mistakes are rarely corrected. Retractions are stigmatized.
  • Artificial scarcity: Journals want to be first to publish, fueling secrecy and fear of being “scooped.” Also, author credit is distributed through rigid ordering, incentivizing competition over collaboration. In sum, prestige is then prioritized.
  • Insufficient review that doesn’t scale: Three editorially-selected reviewers (who may have conflicts-of-interest) constrain what can be evaluated, which is a growing problem as science becomes increasingly interdisciplinary and cutting edge. The review process is also too slow and manual to keep up with today’s volume of outputs.
  • Narrow formats: Journals often seek splashy, linear stories with novel mechanistic insights. A lot of useful stuff doesn’t make it into public view, e.g. null findings, methods, raw data, untested ideas, true underlying rationale.
  • Incomplete information: Key components of publications, such as data or code, often aren’t shared to allow full review, reuse, and replication. Journals don’t enforce this, even for publications from companies. Their role has become more akin to marketing.
  • Limited feedback loops: Articles and reviews don’t adapt as new data emerges. Reuse and real-world validation aren’t part of the evaluation loop. A single, shaky published result can derail an entire field for decades, as was the case for the Alzheimer’s scandal.

Stack all this together, and the outcome is predictable: a system that delays and warps the scientific process. It was built about a century ago for a different era. As is often the case with legacy systems, each improvement only further entrenches a principally flawed framework.


Steve Parker, M.D.

Why Does Eliquis Cost $8,000 in the U.S. But Only $700 in Germany?

From Karl Denninger, an article titled Enough of this Nonsense:

I’m talking about the basic economic question: Supply, demand and what happens when you allow someone to force another person to pay your bill.

I keep hammering on this and will until people stop running tropes whether out of sincere (but false) belief or some other reason.

Let’s take Eliquis.  Its a common medication and its expensive.  Roughly 3.5 million Americans take this drug and it is one of the most-commonly prescribed for people who have atrial fibrillation.  It appears to be reasonably effective in reducing the risk of strokes and heart attacks in people with that condition.

It is also about $8,000 a year in the United States without insurance and “insurance” forces those who do not have that condition to pay for those who do — including Medicare and Medicaid.

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The common claim is that “if you cut that off those people will die” because they can’t possibly afford the price.

The claim is false.

In Germany the drug costs about $700 a year, so it is ten times as expensive in the United States.


Parker here. I know why Eliquis (apixaban) so much more expensive in the U.S. I wrote all about it in my latest book. Read Denninger for his opinion. (He’s smarter than me but was wrong about his predicted 2024 severe economic contraction. Making predictions is hard, especially when it’s about the future.)

Steve Parker, M.D.

Health Insurance Pre-Authorizations Soon to Be Relegated to the Dustbin of History

Steve Parker MD, eye chart, eye exam
Macular degeneration is the opposite of this: blacked-out or fuzzy vision in the center, clearer at the periphery

I’ll believe it when I see it.

Health insurance pre-authorization, for example, is when your eye specialist recommends removal of your cataracts so you can see again, but your insurance company wants some clerk or administrator to review everything and either agree or disagree with your physician. If disagree, no eye surgery for you. Unless you’re willing to pay entirely out-of-pocket. Mind you, the clerk does not have a medical degree and has never examined you or spoken to you. Isn’t this one of the reasons Luigi Mangione executed that healthcare executive?

From American Greatness:

Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. joined other federal health officials on Monday to promote an initiative to end the practice of healthcare insurance pre-authorization.

Kennedy was joined by Centers for Medicare & Medicaid Services Administrator Mehmet Oz as part of a roundtable discussion with insurers to discuss pledges made by the health insurance industry to streamline and reform the prior authorization process for Medicare Advantage, Medicaid Managed Care and Affordable Care Act Health Insurance Marketplace plans which account for most insured Americans.

The HHS Secretary commented on how when he joined the presidential transition team, he was told that the single most important thing he could do to improve the experience of patients across the nation was to “end the scourge of pre-authorization.”

Of course, the unsurers will argue that pre-authorization is necessary because those greedy doctors are recommending that surgery, MRI scan, specialty consultation, or physical therapy merely out of greed.

Steve Parker, M.D.

How to Navigate the U.S. Healthcare System Labyrinth

Opthalmologist Dr. Will Flannery has put together a whimsical guide to the U. S. healthcare system. Well worth your time if you’re relatively new to the system and need help understanding deductibles, co-pays, out-of-pocket maximums (hint: they’re not really maximums), in-network, out-of-network, vertical integration, “surprise” medical bills, etc. I was particularly impressed with the section on fighting claim denials; I hope I remember to re-read it when the time comes.

Dr. Glaucomflecken’s Incredibly Uplifting and Really Fun Guide to American Healthcare.

Remember how Obamacare was supposed to make healthcare more affordable? From the guide, “The 2025 out-of-pocket maximum for an Affordable Care Act plan can’t be more than $9,200 for an individual and $18,400 for a family.” When half of Americans can’t afford an emergency $500 bill, how do they pay up to $9,200?

Dr. Glaucomflecken also offers some system improvements that I also advocate in my latest book, Resuscitating U.S. Healthcare: An Insider’s Manifesto for Reform.

Steve Parker, M.D.

Now Available at Fire Sale Price: “Resuscitating U.S. Healthcare: An Insider’s Manifesto for Reform”

I’d be much appreciative of some Amazon reviews of my 2024 book, Resuscitating U.S. Healthcare: An Insider’s Manifesto for Reform.

To make the book available to more readers, I just dramatically reduced the price at the U.S. Amazon store. $2.99 for the e-book (Kindle) or $9.95 for the paperback. I don’t know how long the prices will stay this low.

If you’re curious, at those prices Amazon pays me $2.06 for each e-book sold, and $2.74 for the paperback.

I don’t care if you leave a favorable or bad review at Amazon. Just be honest. I’ll incorporate helpful and insightful criticism into the 2nd edition.

BTW, Luigi Mangioni’s manifesto was under 300 words. Mine’s about 35,000. But it’s a quick read.

Steve Parker, M.D.

Physician Compensation: Volume-Based versus Value-Based?

In your ideal world, would you prefer your physician’s income reflect:

  • number of patients seen and procedures performed, or
  • high quality of care, reflected in ready accessibility, lowering cost without compromising care, compliance with science-based guidelines, and patient satisfaction/experience, or
  • combination of the above

In other words, do you want your physician incentivized by volume or value?

It doesn’t matter what you want anyway, peon.

A recent study looked at salary arrangements for doctors in system-affiliated physician organizations in four states. The main conclusion:

The study results suggest that despite growth in value-based payment arrangements from payers, health systems currently incentivize physicians to maximize volume, thereby maximizing health system revenues.

This in-depth multimodal cross-sectional assessment of compensation and incentives among health system–affiliated POs [physician organizations] for which there is greater exposure to VBP [value-based payment] and APM [alternative payment model] arrangements compared with independent practices found that volume was the most common form of base compensation by a wide margin, being included by more than 80% and 90% of POs for PCPs [primary care physicians] and specialists, respectively, and representing more than two-thirds of compensation when included. Similarly, actions to increase volume were the most commonly cited means for physicians to increase their compensation. Base compensation incentives for physicians were not dominated by population or value-oriented payments, with only a third of POs reporting inclusion of capitation with PCPs and averaging only about a third of total compensation when included. Performance-based financial incentives for value-oriented goals, such as clinical quality, cost, patient experience, and access, were commonly included in compensation but represented a small fraction of total compensation for PCPs and specialists in health systems, operating at the margins to affect physician behavior. Taken together, these findings suggest that despite growth in APMs and VBP arrangements, these value-based incentives were not commonly translated into health system physician compensation, which was dominated by volume-oriented incentives.

The problem is that it’s a lot easier to measure volume than value. Easy wins.

Steve Parker, M.D.

Ref: Physician Compensation Arrangements and Financial Performance Incentives in US Health Systems in JAMA Network

PS: Avoid the medical-industrial complex as much as is safely possible. Let me help.

U.S. Healthcare Costs $11,000 per person per year

Hospital care accounts for 33% of money spent on healthcare

From UPI Jan. 31, 2020:

Despite spending far more on health care than other wealthy nations, the United States has the lowest life expectancy and the highest suicide rate, new research shows.

For the study, researchers at The Commonwealth Fund compared the United States with 10 other high-income nations in the Organization for Economic Cooperation and Development (OECD)—Australia, Canada, France, Germany, the Netherlands, New Zealand, Norway, Sweden, Switzerland and the United Kingdom—and with the average for all 36 OECD nations.

In 2018, the United States spent almost 17 percent of its gross domestic product (GDP) on healthcare. That’s more than any other high-income country and twice the overall OECD average. For example, New Zealand and Australia spent 9 percent of GDP on healthcare.

U.S. healthcare spending now tops $10,000 per person, and much of it is driven by private insurance costs such as premiums, according to The Commonwealth Fund report published online Jan. 30.

Source: U.S. health stats remain low despite trillions in healthcare spending – UPI.com

The numbers above are outdated. U.S. health care spending grew 4.6 percent in 2018, reaching $3.6 trillion or $11,172 per person.  As a share of the nation’s Gross Domestic Product, health spending accounted for 17.7 percent.

Click to learn what that money is spent on.

Click to learn why U.S. healthcare is so expensive.

Steve Parker, M.D.

PS: Why not try to avoid healthcare spending by getting and staying as healthy as possible? Let me help now. And for less than $20.

Click pic to purchase book at Amazon.com. E-book versions available at Smashwords.com.

 

Pharmacy Benefits Managers: One Reason You’re Paying Too Much for Drugs in the U.S.

paleobetic diet, low-carb diet, diabetic diet

Don’t blame him

The American Prospect has an eye-opening article from 2017 that sheds light on pharmacy benefits managers (PBMs). Ever heard of them?

Author David Dayen starts with comments from pharmacy owner Frankil talking about how he determines how much money he makes on retail sale of a drug:

Like any retail outlet, Frankil purchases inventory from a wholesale distributor and sells it to customers at a small markup. But unlike butchers or hardware store owners, pharmacists have no idea how much money they’ll make on a sale until the moment they sell it. That’s because the customer’s co-pay doesn’t cover the cost of the drug. Instead, a byzantine reimbursement process determines Frankil’s fee.

“I get a prescription, type in the data, click send, and I’m told I’m getting a dollar or two,” Frankil says. The system resembles the pull of a slot machine: Sometimes you win and sometimes you lose. “Pharmacies sell prescriptions at significant losses,” he adds. “So what do I do? Fill the prescription and lose money, or don’t fill it and lose customers? These decisions happen every single day.”

Frankil’s troubles cannot be traced back to insurers or drug companies, the usual suspects that most people deem responsible for raising costs in the health-care system. He blames a collection of powerful corporations known as pharmacy benefit managers, or PBMs. If you have drug coverage as part of your health plan, you are likely to carry a card with the name of a PBM on it. These middlemen manage prescription drug benefits for health plans, contracting with drug manufacturers and pharmacies in a multi-sided market. Over the past 30 years, PBMs have evolved from paper-pushers to significant controllers of the drug pricing system, a black box understood by almost no one. Lack of transparency, unjustifiable fees, and massive market consolidations have made PBMs among the most profitable corporations you’ve never heard about.

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In the case of PBMs, their desire for larger patient networks created incentives for their own consolidation, promoting their market dominance as a means to attract customers. Today’s “big three” PBMs—Express Scripts, CVS Caremark, and OptumRx, a division of large insurer UnitedHealth Group—control between 75 percent and 80 percent of the market, which translates into 180 million prescription drug customers. All three companies are listed in the top 22 of the Fortune 500, and as of 2013, a JPMorgan analyst estimated total PBM revenues at more than $250 billion.

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PMBs initially came about as a means of saving costs. Why hasn’t that panned out?

The biggest reason experts cite is an information advantage in the complex pharmaceutical supply chain.

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This lack of transparency enables PBMs to enjoy multiple hidden revenue streams from every other player. “It’s OK to have intermediaries, we have Visa,” says David Balto, an antitrust litigator and former top official with the Federal Trade Commission. “But these companies make a fabulous amount of money, even though they’re not buying the drug, not producing the drug, not putting themselves at risk.”

The PBM industry is rife with conflicts of interest and kickbacks. For example, PBMs secure rebates from drug companies as a condition of putting their products on the formulary, the list of reimbursable drugs for their network. However, they are under no obligation to disclose those rebates to health plans, or pass them along. Sometimes PBMs call them something other than rebates, using semantics to hold onto the cash. Health plans have no way to obtain drug-by-drug cost information to know if they’re getting the full discount.

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It’s a long article and I confess I haven’t read the whole thing yet. I’ve read enough to rile up my sense of indignation! Pharmaceutical companies and health insurers don’t seem too upset. Because costs associated with these third-party shenanigans is simply passed on to the consumer—that’s you—in higher insurance premiums, deductibles, and co-pays. PBMs are a target for future healthcare reform.

Steve Parker, M.D.

PS: Reduce your needs for drugs with a healthy diet and lifestyle. I can help.

Click pic to purchase book at Amazon.com. E-book versions available at Smashwords.com.

 

 

 

How Much of U.S. Healthcare Cost is Waste?

Are ALL the clerks and administrators in hospitals necessary?

25% according to an article at JAMA Network.

Let’s face it, there’s always going to be some waste. The authors of the study at hand figure that, whatever the dollar amount of waste is, we can reduce it by 1/4. Which could be $250 billion.

A prior study indicated that 30% of healthcare spending may be considered waste. Is that still valid?

Researchers reviewed the pertinent literature from January 2012 to May 2019 focused on the 6 previously identified “waste domains”:

  1. failure of care delivery
  2. failure of care coordination
  3. overt-reatment or low-value care
  4. pricing failure
  5. fraud and abuse
  6. administrative complexity

Waste-related costs were converted to 2019 dollars.

From the abstract:

Findings

The review yielded 71 estimates from 54 unique peer-reviewed publications, government-based reports, and reports from the gray literature. Computations yielded the following estimated ranges of total annual cost of waste: failure of care delivery, $102.4 billion to $165.7 billion; failure of care coordination, $27.2 billion to $78.2 billion; overtreatment or low-value care, $75.7 billion to $101.2 billion; pricing failure, $230.7 billion to $240.5 billion; fraud and abuse, $58.5 billion to $83.9 billion; and administrative complexity, $265.6 billion. The estimated annual savings from measures to eliminate waste were as follows: failure of care delivery, $44.4 billion to $93.3 billion; failure of care coordination, $29.6 billion to $38.2 billion; overtreatment or low-value care, $12.8 billion to $28.6 billion; pricing failure, $81.4 billion to $91.2 billion; and fraud and abuse, $22.8 billion to $30.8 billion. No studies were identified that focused on interventions targeting administrative complexity. The estimated total annual costs of waste were $760 billion to $935 billion and savings from interventions that address waste were $191 billion to $282 billion.

Conclusions and Relevance 

In this review based on 6 previously identified domains of health care waste, the estimated cost of waste in the US health care system ranged from $760 billion to $935 billion, accounting for approximately 25% of total health care spending, and the projected potential savings from interventions that reduce waste, excluding savings from administrative complexity, ranged from $191 billion to $282 billion, representing a potential 25% reduction in the total cost of waste. Implementation of effective measures to eliminate waste represents an opportunity reduce the continued increases in US health care expenditures.

Source: Waste in the US Health Care System: Estimated Costs and Potential for Savings | Health Care Policy | JAMA | JAMA Network

Here’a radical idea. Why not stay out of the healthcare system as much as possible by getting and staying as healthy as possible? I have few ideas how…

Steve Parker, M.D.

PS: Getting and staying healthy will help you avoid wasteful healthcare spending. Let me help.

Click pic to purchase book at Amazon.com. E-book versions available at Smashwords.com.

 

Two Simple Measures Could Slash U.S. Healthcare Costs by 75%

medical clearance, treadmill stress test

This treadmill stress test is looking for atherosclerotic heart disease, aka coronary artery disease and coronary heart disease

From Sean Masaki Flynn at Market Watch:

As the Democratic presidential candidates argue about “Medicare for All” versus a “public option,” two simple policy changes could slash U.S. health-care costs by 75% while increasing access and improving the quality of care.

These policies have been proven to work by ingenious companies like Whole Foods and innovative governments like the state of Indiana and Singapore. If they were rolled out nationally, the United States would save $2.4 trillion per year across individuals, businesses, and the government.

The first policy—price tags—is a necessary prerequisite for competition and efficiency. Under our current system, it’s nearly impossible for people with health insurance to find out in advance what anything covered by their insurance will end up costing. Patients have no way to comparison shop for procedures covered by insurance, and providers are under little pressure to lower costs.

The second money-saving policy links health insurance (with an annual  deductible) to a health saving account (HSA).

Look, people. We gotta do something. There’s no way that healthcare in the U.S. should devour almost 20% of Gross Domestic Product. We can get it down to 5%. I know how.

Source: The U.S. can slash health-care costs 75% with 2 fundamental changes — and without ‘Medicare for All’ – MarketWatch

Steve Parker, M.D.

PS: Reduce your need for healthcare via diet and exercise!

Click pic to purchase book at Amazon.com. E-book versions available at Smashwords.com.