Sunday, August 07, 2011

MORE TOP-DOWN MEDICINE: The Accountable Care Fiasco:
The theory for ACOs [Accountable Care Organizations] ... is that hospitals, primary-care doctors and specialists will work more efficiently in teams, like at the Mayo Clinic and other top U.S. hospitals. ACOs are meant to fix health care's too-many-cooks predicament. The average senior on Medicare sees two physicians and five specialists, 13 on average for those with chronic illnesses. Most likely, those doctors aren't coordinating patient care.

This fragmentation is largely an artifact of Medicare's price control regime: The classic case study is Duke University Hospital, which cut the costs of treating congestive heart failure by 40% but then dumped the integration program because it lost money under Medicare's fee schedule.
Costs drop 40%; payments drop 60%. That's the way to run a (government) railroad.

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