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07.23.2008 8:01 pm

Thursday editorial: Profit/patient relationship

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bz_cg_medical_imaging1_opt.jpgYou drop your car off for routine service. The mechanic has bad news. He needs to replace a part you’ve never heard of. It’s going to be expensive, he says.
Is this for real, you ask yourself, or is he just trying to sell me something?
You visit your doctor for routine care. There’s a problem, she says. You don’t entirely understand what’s wrong, but she wants to send you for tests at an “imaging center.” She may or may not mention that she is a part owner of that center.
Do you ask yourself the same questions you asked about the mechanic?

Tectonic shifts are underway in how health care is paid for, how it’s delivered and how much it costs. Even more fundamental financial pressures are forcing subtle changes in the doctor-patient relationship.
Post-Dispatch business writer Mary Jo Feldstein sketched out one of them last week: the rise of doctor-owned imaging centers stocked with expensive MRI machines and CT scanners.
In nearly half the states in the nation, including Illinois, it’s illegal for doctors to make referrals to outside imaging centers in which they have a stake. Medicare doesn’t allow it, either, although loopholes in its rules have made the practice increasingly common. But in Missouri, it’s perfectly legal.
Doctors who own such centers — there are perhaps two dozen in the St. Louis area, each of them a partnership involving dozens of doctors — say they provide MRIs and CT scans that are quicker, of higher quality and more convenient for patients. They scoff at the idea that the relatively modest payments they receive would motivate them to order unnecessary tests.
But the U.S. Government Accountability Office reported that doctors with a financial stake in imaging equipment are 50 percent more likely to refer patients for MRIs and 30 percent more likely to suggest CT scans than doctors who don’t have a piece of the action.

Medicare spent slightly less than $7 billion on diagnostic imaging in 2000. By 2006, the tab had leaped to $14.1 billion.
A GAO analysis found that increased Medicare spending was linked to the growth in the number of physicians with their own imaging equipment. It also found that doctors with their own equipment were deriving a larger percentage of their total income from payments for the scans. That’s because insurance companies have worked aggressively to hold down what they pay doctors for office visits and routine care.
More than just money is at stake. Researchers from Harvard University wrote last year that as many as one-third of all CT scans performed each year are unnecessary.
Since each CT scan delivers as much radiation as hundreds of X-rays, the researchers estimated that as many as 3 million additional cancer cases could be caused by unnecessary CT scans over the next two or three decades.

Whatever else it represents, health care is big business. Billions of dollars are spent in the St. Louis region each year on doctors, hospitals and prescription drugs.
Before there were doctor-owned imaging and surgical centers, hospitals built and controlled free-standing facilities to provide those services.
As not-for-profit hospitals came to operate like big businesses, doctors found themselves increasingly strained by paperwork requirements, squeezed by insurance company reimbursement rates and frustrated by what they perceived as their loss of influence of the practice of medicine. Many regarded investing in imaging and surgical centers as a way to regain control of their medical practices.
It’s hard to fault them. But it’s happening at a time when more and more responsibility — for educating themselves about health, shopping around for services and paying for their own care — is already being placed on patients. They’re not happy about those changes.
What it comes down to is that doctors want their share of the economic spoils. Knowing that, patients may start regarding them with the same skepticism they have toward big insurance companies and hospitals.
Any way you cut it, that’s a net loss for doctors.

Christian Gooden/Post-Dispatch photo

21 comments

Comments are closed.

The fact that patients are skeptical about the benefits of treatment is no net loss for physicians. If a physician cannot succinctly describe the benefit of the blood test, imaging exam or treatment proposed, they are not worth their salt and the patient should probably be looking for a new physician. I see no reason this is a loss for physicians or patients.

The difference between the car mechanic and the physician is that the physician is required to tell you the benefits and risks of any treatment. It is the duty of patients to hold the physician accountable. If they hire a third party to do so (i.e. an insurance company or patient advocate) that is fine too.

For the record, my most informed (and satisfied) patients are those who ask: “What is the benefit and what are the risks of treatment?” I always let them know the risks and benefits, I let them know if I recommend the treatment based on the evidence of those risks and benefits and then the patient decides if they prefer to receive the treatment. It is my opinion that that is how any doctor should inform and treat their patient.

I fail to see what the PD editorial board has against such a method. Will you please let us know? If this is the method used, I also fail to see any conflict of interest between in a physician owning imaging devices (I don’t own any myself but know plenty of physicians who do).

— John Deal
9:23 pm July 23rd, 2008

I agree that there are serious conflict of interest issues here, but I think the editorial left out a significant fact. Too many physicians in this country have been spooked into requesting every test under the sun because of rampant malpractice lawsuits. I’d be willing to bet a significant portion of redundant and unncessary testing could be eliminated and billions of dollars saved if we had serious tort reform.

It is possible to learn the costs of tests, procedures, surgeries, and medicines in advance, but it usually isn’t easy for the average person and it sure as heck isn’t easy for someone needing immediate attention. That’s one of the biggest peeves I have about medical care today. It used to be routine that you asked your Dr how much something was going to cost, but that common sense bit of information has been lost ever since we placed the cost burden on employers, insurance companies, and government.

— Go_Fish
8:52 am July 24th, 2008

Patients should keep in mind they are customers as well as patients and take ownership of their own health care. I’ve found doctors very receptive to my questions and candid in their answers. I don’t make the assumption that the doctor will spend a lot of time in discussion unless I demonstrate some interest in the details of my condition and treatment plan. There have been a few instances where the level of testing would have been much greater if I had failed to question the expected benefits. I agree with fish that the litigation lottery for lawyers is probably another big cause of excessive medical testing along with financial gain for doctors. The editorial is simply another in the series of attacks on the evil, capitalist, private segment of the health care industry. Socialized medicine would remove any incentive or need for personal responsibility. As always, the bureacracy would make the decisions on everyone’s behalf.

— A#
10:21 am July 24th, 2008

The diagnostic imaging centers have to be owned by somebody. They could be owned by the “non-profit” hospitals who build lavish facilities and charge ten bucks for an aspirin; by evil for-profit corporations that profit from our affirmities; by partnerships of physicians; or by the government. I think we all know which one the P-D editorial board would support. I can see it now: “We can take bad motives away from doctors, and provide access to these important tests for the poor and vulnerable in society, by simply moving diagnostic imaging to the public sector.”

— Nick Kasoff
2:49 pm July 24th, 2008

It’s true that diagnostic imaging centers have to be owned by someone, as Nick says. But if they were owned by hospitals, for example, doctors wouldn’t have a direct financial motive for ordering extra testing. That’s why Medicare and about half the states have rules against self-referral.

That (self-referral) is not necessarily a bad thing in all contexts. Companies often employ consultants who review some part of their operation and recommend upgraded equipment or services that those consultants sell.

But at the heart of the doctor-patient relationship is the belief that the doctor always acts in his patients’ best interest — not his own, or the insurance company’s or even the hospitals. Medicine has always been seen as an almost sacred calling.

Many patients are starting to question that. The more doctors operate like businessmen, the more they’ll be seen as being just like business people or any other professional (lawyers, for instance). That represents, at the least, a loss of status for doctors.

Having covered medicine for 20 years, my experience has been that most doctors are motivated by more than money. It’s too hard to become a doctor, and to practice medicine, to do it just for the money. The loss of influence and status many doctors are experiencing bothers them more than limitations on their income. At least in my experience.

— John G. Carlton
3:26 pm July 24th, 2008

The pharmaceutical companies spend an estimated $12 billion lavishing doctors with direct payments, free gifts, and vacations….Physicians are the direct conduit to pharmaceutical profits. Prescription drugs have increased in sales 1600% since 1987…..Either we’re all terribly sick, or we should all live to be 100…What a system. What a racket.
Medical reform NOW!

Vote OBAMA ‘08.

— Garrison
3:29 pm July 24th, 2008

Shocking! People being held responsible for their own well-being! We should all just give up and let the government tell us when and where to spend our medical dollars. We are just too dumb to consider getting a second opinion or even researching our condition ourselves. Yes, Obama in ‘08, indeed.

http://www.grafshepherd.com

— graf.shepherd
4:21 pm July 24th, 2008

Yes, I can hardly wait to pay for Oprah’s and Bill Gates’ medical care. I will gladly get a second job just to do so.

— A CENTRIST
9:19 pm July 24th, 2008

Mr. Carlton,

“The loss of influence and status many doctors are experiencing bothers them more than limitations on their income.”

So what? This is no reason not to question the knowledge or motivations of physicians. If physicians want to be put on a pedestal and be treated as Gods do you think we should just because that is how things used to be?

I disagree with you that most physicians don’t go into medicine to make money, in fact, among my colleagues I would say that is one of the primary motivating factors. That is fine, though, they work hard and obtain something of value to trade with others. You are correct that they desire prestige as well, but simply because they desire it is no reason to blindly give it to them.

— John Deal
9:44 pm July 24th, 2008

Garrison… No thanks. I’ll pass on your idea of medical reform NOW. I trust myself more than the government bureacracy. The government worshipers’ vision of universal health care amounts to another version of faith healing. The holy father in Washington will provide, eh?

— A#
7:29 am July 25th, 2008

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