Happy Labor Day - To All the Docs On The Assembly Line

When I first started working in medicine I was the Medical Director of an outpatient mental health clinic.  We had a staff of 8 psychotherapists, 2 nurses, and 2 case managers.  There were three transcriptionists to type up all of our notes.  Every person I saw had a typed note to document the encounter and all of the charts were paper.  There was no electronic health record.  If a person needed a prescription, I would write one or call the pharmacy and that was the end of it.  The majority of my time was spent speaking directly with patients and I could generally do all of the dictations in about 2 hours per day.

After three years I moved to a hospital setting.  There were three inpatient units with 6 psychiatrists and two transcriptionists.  One of the transcriptionists specialized in paperwork specific to probate court proceedings.  There was an additional pool of transcriptionists available 24/7 on any phone in the hospital for immediate documentation of any clinical encounter.  The admission notes were typed on two or three sheets and inserted in the chart.  Daily progress notes were typed on adhesive paper and pasted into the chart.  After I signed the note, a billing and coding expert came through and submitted a billing fee for the work that had been done.  The same process was in place with pharmacies.  Call them or send them a written prescription and it was taken care of.   Every Sunday I would go to the basement of the hospital in the medical records department and sign all of the areas I had missed to complete the charts.  It was the early 1990s and the administrative burden was certainly there but it was a manageable ritual.

Over the next decade things got much, much worse.  Even in the blur of a retroscope it is hard to say what happened first.  I would guess it was the political theory that health care fraud was the main driver of health care costs and the misguided effort by the federal government to crack down on doctors.  That led to the elimination of the billing and coding experts.  Doctors now had to waste their time in seminars devoted to making them experts in what is an entirely subjective process.  No two coders agree on the correct bill to submit.  How can you teach that lack of objectivity to doctors?  The end result is that the billing and coding people were eliminated or reassigned and doctors took on another job unrelated to medicine.

The next phase was the electronic health record (EHR).  It required that doctors learn the interface (more seminars and training).  Once that was accomplished it was decided that they could also learn to enter their own notes - either really clunky ones using EHR derived phrases or more natural ones with a fairly frequent embarrassing typo using voice recognition programs.  That eliminated the transcriptionists and required much more training. During the transition period I still went in to medical records every Sunday.  I expected to see a staff person there who I had seen every Sunday for 15 years but one Sunday she was gone - a casualty of the EHR.  The end result was doctors with a couple of new jobs and the elimination of both transcriptionists and medical records people.

At about the same time, managed care companies started to ratchet up the pain.  In an inpatient setting you could get one or two "denials" per day.  A denial is the managed care company saying that they refuse to cover the cost of care because the admission was not "medically necessary".  That is managed care rhetoric for "we have decided not to pay you."  These denials are purely arbitrary and have nothing to do with whether a person needs care or not.  The best examples at the time were people with alcoholism or addiction who were suicidal and needed to be detoxed and reassessed.  The standard managed care denial at the time was "This patient should be treated in a detox facility."  The obvious problem was that not every county has a detox facility and those that do will not accept people making suicidal statements.   So the next new job became battling with these companies who were essentially getting free care for their health plan subscribers if you did not jump through all of the hoops necessary to appeal.

Slightly later, managed care decided they could apply the same denial strategy to pharmaceuticals on the basis that cheaper drugs are as good and all drugs in the same class are equivalent.  It turns out that nether of those assumptions is accurate, but in America today business and politics always trumps medical decision making.  This prior authorization process created a blizzard of paperwork that ties up a lot of clinic time.  One study estimated 20 hours per week (across all employees) per physician  on average.  That means if your clinic has 5 doctors in it - 100 hours per week of the total hours worked is used strictly to deal with insurance companies.  It also adds another job to what the doctor already does.

So in the time I have been practicing medicine let's add the number of jobs that have been accreted into the administrative side of medicine for all physicians.  Billing and coding expert + transcriptionist + EHR interface user + voice recognition user + utilization review responder + prior authorization responder totals 6 new jobs in the past two decades, none of which came up in medical school.

With all of that "efficiency" we should expect health care costs to plummet or at least stay the same.  As we all know that has not happened.  The politics and business interests driving this are in the business of making money.  Physician and hospital reimbursement is essentially flat.  One of the easiest ways to make a buck is to have the physicians doing way more administrative tasks and fire the employees that used to do them.  You can also make money by putting up the usual obstacles to doctors doing their jobs of treating patients in hospitals or clinics until they just give up.  I have been so burned out at times that I put a cursory note in the chart to say exactly what I did.  That note did not meet coding requirements so I did not submit a bill.  At some point you just have to stop working.  I know that I am not alone in getting to that point.

So congratulations to all of the docs who are now laboring on this vast assembly line that we now call American medicine.  It is the ultimate product of what Congress, the White House and big business can do.  We can only expect continued "improvements" or "efficiencies" under the new health care law.  It is an assembly line that discourages quality or innovation and that also makes it unique.

Happy Labor Day!

George Dawson, MD, DFAPA

Another Managed Care Approach Bites the Dust

Managed care companies have always been big on patient satisfaction.  There are a number of reasons for this the largest one being that they hope to replace medical approaches to healthcare with business approaches. That involves applying paradigms used in automobile manufacturing and customer service such as patient satisfaction surveys. It also involves applying business strategies to those surveys so that any particular business will look as good as possible when it is advertised. It is no accident for example that all the hospitals in your area are "five-star hospitals" or "highly rated" if the companies involved know how to game the system, the deck is stacked in favor of high patient satisfaction ratings. That can be done by combination of survey structure, survey timing, or scripting. During scripting the patient is exposed to a number of statements by a healthcare provider who has been trained in how to do this so that their statements closely match questions on the patient satisfaction survey. It is very difficult for a person to say they were never provided with information if they received carefully scripted information five minutes before they took the survey.

Another advantage of patient satisfaction surveys is that they can be used as leverage against physicians. Managed care companies are always on the lookout for new ways they can reduce reimbursement to physicians. They already have an incredible amount of leverage with the so-called RVU-based compensation system but apparently that is not enough.  In many cases a percentage of the physicians reimbursement is linked to patient satisfaction surveys. The more satisfaction, the greater the reimbursement. The irony is that in many cases, the money used for that incentive is a "hold back" or percentage of what the physician has actually earned. They will not get their full reimbursement unless they have adequate patient satisfaction ratings. The problem with that system should be obvious, but it was made even more obvious by a recent article in the Archives of Internal Medicine.

In that study, the authors looked at a large sample of 51,947 patients over a timeframe of seven years. They focused on how their satisfaction ratings correlated with outcome measures. They found that the patients in the high satisfaction group had a 8.1% greater healthcare expenditure, 9.1% greater medication expenditure, and a 26% greater mortality risk.  The most satisfied group was at less risk for an emergency department visit but had higher inpatient expenditures.  The authors point out that patient satisfaction ratings correlate most highly with whether or not the physician fulfills the expectations of the patient.  That could lead to a lower threshold for elective admissions to hospitals, more invasive testing, and less discriminatory prescribing practices.

Their overall conclusion is that we do not know enough about patient satisfaction ratings and the implications for quality care. They make an excellent point about the need for physicians to discuss problem areas with patients “including substance abuse, psychiatric comorbidity, nonadherence, and the risks of requested but discretionary tests or treatments.”  Those discussions may not be conducive to high patient satisfaction ratings.  They also point out that these discussions necessarily take time. As I have previously pointed out, the time for discussions and clinics has practically been rationed out of existence.

I thought that this was an excellent article overall that points out significant problems with business approaches to the practice of medicine. Rating a doctor like you would rate your car salesman creates a unique set of problems that businesses and the government have no interest in addressing.  Ratings within healthcare organizations linked to physician "incentives" may be no more reliable than doctor ratings on Internet sites.

George Dawson, MD

Fenton JJ, Jerant AF, Bertakis KD, Franks P. The cost of satisfaction: a national study of patient satisfaction, health care utilization, expenditures,and mortality. Arch Intern Med. 2012 Mar 12;172(5):405-11.

Another Lesson from the Business World

When you are in business  the goal is to make money.  The interpersonal aspects of that continuum range from "The business of business is business" to "The customer is always right."  An op-ed piece in the New York Times introduces us to another approach to making money and that is with the client or at the expense of the client.  A Wall Street insider gives us a rare glimpse into one of the largest investment banking firms and how their culture shifted over the past two decades to focus on profiting from their clients rather than profiting with them.  That same firm was already accused in 2010 of selling its clients mortgage-backed securities and betting against them.  A professor of corporate governance from the University of Delaware commented about how the structure of these companies changed as they became public and started to look for as many clients as possible.

For the same period of time the change in corporate governance of healthcare corporations has also gone through a revolution. There has been a shift from medical guidance to business guidance. Many if not most clinics and hospitals have changed their corporate governance so that doctors are subordinate to businessmen.  The changes are often very subtle but the overall process has a focus on making money rather than optimal patient care. There is plenty of window dressing along the way that is frequently sold as quality but the bottom line is that any physician or patient will generally sustain some kind of significant cost dealing with a healthcare corporation or pharmacy benefit manager.

When physicians are taken out of the loop, the business  of medicine is no longer treating illness and alleviating suffering but it becomes making money and the only way that happens is to profit from patients and get as much free work as possible from doctors.

George Dawson, MD

Nelson D. Schwartz .  A Public Exit From Goldman Sachs Hits at a Wounded Wall Street.  New York Times March 14, 2012.

Greg Smith. Why I Am Leaving Goldman Sachs.  New York Times March 14, 2012.

Mismanagement of Knowledge Workers

In a previous post,  I discussed Drucker's concept of “knowledge workers” and how that concept applied to psychiatrists and physicians. The basic concept is that knowledge workers know more than their managers about the service they provide, work quality is more characteristic than quantity, and they are generally considered to be an asset of corporations.  I pointed out that physician knowledge workers are currently being managed like production workers and referred to common mistakes made in managing physicians and psychiatrists. Today I will tell attempt to describe how some of that mismanagement occurs using examples that psychiatrists have discussed with me over the past several years.

Inpatient psychiatry has taken a severe hit over the past 20 years in terms of the quality of care. Many people have talked with me about the discharge of symptomatic patients occurring in the context of high volume and low quality. Depending on the organization, a psychiatrist may be expected to run an outpatient clinic in addition to a busy inpatient service or in some cases provide all the medical services to the inpatients with minimal outside consultation. Most hospital care is reimbursed poorly despite political suggestions to the contrary. Psychiatric DRGs are typically 20% less than medical surgical DRGs and they are not adjusted for complex care. Administrators generally "manage" psychiatrists in a way to make sure that inpatient beds are covered. That frequently means that psychiatrists who prefer practicing in an outpatient setting end up doing some inpatient care. An outpatient clinic may be canceled so that a psychiatrist is available to run an inpatient unit. There have been situations where inpatient beds or whole units have been shut down for lack of psychiatric coverage. The only explanation given is that there is a "shortage" of psychiatrists.

I had the pleasure of running into one of my residency mentors in an airport last May. I let him know that I was just finishing up 21 years of inpatient work and moving on to something else. He smiled and said: "Three months wasn't enough?".  I always liked his sense of humor but there is also a lot of reality in his remarks.

I don't mean to imply that it is any easier on the outpatient side. If you are a manager, what could be easier than having a unit of production that you could hold your employees to? It turns out there is something easier and that is being able to set the value of that unit of production. That is what RVU based productivity is all about. A standard managerial strategy these days is to have a meeting with an outpatient psychiatrist and show them how much they are "costing the clinic" based on their RVU production. Spending hours a day answering phone calls, doing prior authorizations, questions from other clinicians, curbside consultations, discussions with family members, and documenting everything doesn't count. I have had the experience calling a clinic at 7 PM and hearing keyboards clicking in the background. I have asked outpatient colleagues how they are able to produce outpatient documentation themselves and still get out of clinic on time. Now that I work in an outpatient setting myself, I know what they were telling me was accurate and that is the documentation gets deferred until later.

The mismanagement does not stop there. At some point in time medical schools decided that there were also going to start basing faculty salaries on clinical production. I suppose every medical school as a formula for converting teaching and research time into production units, but until I see those formulas my speculation is that any activity that does not result in billing leads to lower compensation. The days when physicians were hired as teachers and academicians seem to be gone.  Because of discriminatory reimbursement, departments of psychiatry will be disproportionately affected.

Within psychiatry there used to be an interest in organizational dynamics and how they impacted patient care. The dynamics in most organizations today are set up to promote the business. That has produced a focus on high volume-low quality or in some cases supporting the specialty with the highest reimbursement and procedure rates.   Associated dynamics are in place to select and shape an idealized corporate employee who will modify his or her practice according to the whims of the Corporation. It may be hard to believe but large medical corporations everywhere are trying to figure out how to recruit young physicians who believe in their models. Physicians who don't accept these ideas frequently find that the company is not very friendly to them. There are always various political mechanisms for ousting any dissidents and there is minimal tolerance for debate.  The dissent can be as mild as asking why consultants with less expertise than the physicians in the practice are being called in to critique them and come up with a plan.

When it comes to physician mismanagement there are few businesses that can equal the government. RVUs, the Medicare Physician Payment Schedule, pay for performance, and various failed political theories like fraud as the cause for healthcare inflation, and managed care amplifying all of the above and focusing all of that irrational management directly on physicians.  The result is obvious as enormous inefficiencies, job dissatisfaction, and demoralization. Governments partnering with businesses and placing business practices like utilization review and prior authorization in state statutes increases the burden exponentially. At the heart of this conflict is a physicians training to be a scientific critical thinker and function autonomously with the businesses interest of making a buck. Despite all the lip service to quality, business decisions are always made on a cost rather than quality basis.

It is often difficult to see any light through the blizzard of government and business propaganda that passes for the management of physicians and psychiatrists. Psychiatry has bore the brunt of mismanagement over the past 20 years and that has well been well documented in the Hay group study showing the disproportionate impact of managed care on our field. Inpatient bed capacity has dwindled and the beds that have not been shut down are managed for high-volume low quality work. Outpatient clinics including those run by and nonprofits are managed according to the same model.  Businesses and governments have provided the incentives for this type of practice.  The available consultants in the field only know an RVU based productivity model and nothing else. Rather than treating psychiatrists as knowledge worker assets, the available jobs frequently reduce us to micromanaged clerical workers utilizing about 10% of our knowledge.  It should be no surprise that the environment makes it seem like anyone can do the job.

One of my favorite quotes from Peter Drucker was: "More and more people in the workforce and mostly knowledge workers will have to manage themselves".   After all, only  the knowledge worker knows how to best complete the job.  Every psychiatrist that I know, knows how to get the job done and it is often at odds with what we are allowed to do. The best pathway to do this is to optimize the internal states of the knowledge workers and create environment where they manage themselves.  There are very few environments available where that can happen today for psychiatrists.

George Dawson, MD