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Blog Entry 4 of 7 HealthCare Confidential - An Insider's Guide to the Health Care Game.
Health Care Confidential provides an insider's unique perspective and commentary on one of the most visible and important issues in Colorado (and the country) today - the health care and health insurance industries. Over 25 years of professional insider knowledge and experience on how the "Health Care Game" works will be featured here. In summary, I have advanced degrees in Business Administration and Computer Information Systems and specialize in health care systems and consulting. I've worked on all sides (technical, business, provider) of private and governmment health care and health insurance systems. The ignorance of and assumptions made by mainstream media reporting (as well as other high-profile local and national spokespersons) regarding our health care and health insurance industries are astounding. Superficial reporting by people with no experience in the industry propogates the misinformation. At other times, the information is presented in a manner that makes makes most people want to faint from boredom and complexity. Want to know what happens to your insurance claim after you've seen your doctor? Want to know why "the rising cost of health care" is not a given fact, but is in fact a lie? Want to know all the ways doctors and hospitals cheat insurance companies? Want to know why all discussions about health care reform tend to concentrate on the insurance-side of the health care equation? HealthCare Confidential is the place to find out.

Doctors and hospitals are killing health care
Contributed by: Dave Schallert   on 1/27/2008

There was a story in today's Denver Post ( http://www.denverpost.com/news/ci_8089112) that continues to propagate ignorance on health care-related issues.

While this story contains numerous statements where the reported premise is automatically taken as gospel truth, I decided to point out a single statement that represents the lack of in-depth reporting seen in so many health care/health insurance-related media reports one sees these days.

In the story, there is a statement about a health insurance cap proposed by the State of Colorado that might be set at "roughly $50,000, which is not enough to cover a day or two of hospitalization."

The real story (if the Denver Post and others chose to "dig" a bit deeper) is that so many people take that statement as gospel fact and don't ask the more obvious question: What the heck is "costing" so much and why?

As an expert in this field, I can assure you that the $50,000 may be what the hospital and doctors bill the insurance company...but it does not represent the true "cost" of the health care received. That $50,000 is a "wishlist" figure that is loaded with profit and sometimes outright fraud thrown in for good measure.

When you have seen (like I have) single doses of Aspirin billed at $25.00 a piece, daily "Drive By" doctor consultations billed at $200-$500 each while a patient is in a coma, and relatively simple surgical procedures billed into 5-figures, one comes to see that the real problem is lack of market competition between doctors and hospitals for services rendered.

Why do you think the American Medical Association (AMA) has come out forcefully against Wal-Mart clinics where office visit costs are public and much lower than what doctors and hospitals bill today (approx. $25.00 a visit vs. $140)? Why do you think that doctor and hospital associations are so quiet when media reporters write these ignorant stories and ignore the cost side of the equation? Believe me...they LOVE it that their out-of-sight charges for their services are off the public's radar!

Simple competition on the top 50 or 100 most common surgical procedures performed by doctors and hospitals would result in reduction of health care costs by over 50% overnight. I proposed just such a measure to the Colorado Blue Ribbon Commission on Health Care during their hearings last year (among other simple solutions for saving literally millions of dollars).

Doctors and hospitals are killing health care, not the lack of health insurance.

That's the real story...and no one seems to want to report it.




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CONTRIBUTOR INFORMATION

Dave Schallert

Parker , CO

Dave Schallert has posted 7 blog entries and 2 comments since joining on 7/12/2007. Dave Schallert 's average blog rating is 4.71.
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