Skip to content
  • About
  • Contact
  • Contribute
  • Book
  • Careers
  • Podcast
  • Recommended
  • Speaking
  • All
  • Physician
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • Video
    • All
    • Physician
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • Video
    • About
    • Contact
    • Contribute
    • Book
    • Careers
    • Podcast
    • Recommended
    • Speaking

Why physicians may not buy into ACOs

Anonymous
Policy
February 6, 2012
Share
Tweet
Share

I’m sure Ezekiel Emanuel hates being referred to as Rahm Emanuel’s brother, so I won’t describe him as such. After working as one of Obama’s main health care advisors, he’s now at U-Penn in a job spanning medicine, economics, and ethics. He’s also been writing engaging essays in JAMA about health care reform and economic change that give us an augur into where health care reform might lead us.

Here, Dr. Emanuel answers the question, where do our 2.6 trillion health care dollars each year actually get spent? On the way, he’d like to refute some myths you may have heard about where major costs can be squeezed out of the system. First, the myths:

  • Malpractice costs: Nonpartisan Congressional Budget Office estimates say that aggressive tort reform in all states would reduce costs by only 0.5% per year ($11 billion).
  • Insurance company profits: Profits from the five biggest insurers were only 0.5% of health care costs.
  • Drug costs: Switching to Canadian sourcing and maxing out generics would only get us $3 billion / year.
  • “Million Dollar Babies”: About 10,000 adults and kids use more than $1 million/year in health care costs; that’s $10 billion. Dropping the threshold to $250,000/year gets you ~$169 billion to work with. This is where rationing would start, but no one wants to be on the first death panel.

He argues that doing all these things together might get you $15 billion to $20 billion, but it’s a haphazard approach. I would add, that the political theater surrounding attempted changes at any of these levels would be absurd and outrageous, limiting their success.

Where is the money, then? It’s in the 10% of the population with chronic diseases, who consume 64% of health care expenses. In other words, the patients we see day in, day out, who fill the clinic and hospital O.R. schedules (and make their cash registers ring).

The solution, Dr. Emanuel reminds us, is the embrace of accountable care organizations and capitated disease management systems as the only way to reduce these patients’ frequent hospitalizations, preventable errors, and readmissions. Rather than complaining, we physicians need to get organized and take a leadership role to make this new era of high-quality, low-cost health care happen.

Dr. Emanuel, I’m all for it. I believe you, and I’m ready for a wholesale change of our broken and bankrupt “system.” But then again, I don’t have a private practice whose steady income is paying my mortgage, retirement fund, and kids’ education. After making the rounds of practicing pulmonologists over the past few months, I can tell you that they are going to foot-drag and fight any change in their practice-and-payment habits with tooth and claw. From what I hear, other subspecialists feel the same. Given that these docs in small retail practices still represent a large majority, the kind of cheerleading in this essay is disconnected from reality. Besides, in what fashion are these small-scale docs expected to organize? They have no bargaining leverage with corporations, little organizational infrastructure, virtually no capital reserves or margin for error, and no clue what’s expected (since no one does, right now).

Small physician practices will join ACOs when insurance companies and the government force them to get paid (which incidentally would require someone forming one so we see what an ACO is) or when the financial incentives involved are a no-risk giveaway. What middle-aged docs are really banking on is that the time horizon for serious restructuring can get stretched out to their (early) retirements — and they’ll do whatever they can to slow down this particular hope and change.

The author is an anonymous physician.

Prev

Preparing for your visit with someone in hospice care

February 6, 2012 Kevin 4
…
Next

The fear of malpractice will always be in the back of my mind

February 6, 2012 Kevin 26
…

Tagged as: Public Health & Policy, Specialist

Post navigation

< Previous Post
Preparing for your visit with someone in hospice care
Next Post >
The fear of malpractice will always be in the back of my mind

ADVERTISEMENT

More by Anonymous

  • When medicine surrenders to ideology

    Anonymous
  • Why patients and doctors are fleeing flagship hospitals

    Anonymous
  • What a childhood stroke taught me about the future of neurosurgery and the promise of vagus nerve stimulation

    Anonymous

Related Posts

  • The risk physicians take when going on social media

    Anonymous
  • Physicians have become devalued in modern health care

    Anonymous
  • Democracy and the health of a nation 

    Audrey Shafer, MD
  • Physicians have the power to save our health care system

    Timothy Barrett, DO
  • The devaluation of physicians

    Mark Lopatin, MD
  • Melting the iron triangle: Prioritizing health equity in dynamic, innovative health care landscapes

    Nina Cloven, MHA

More in Policy

  • How the One Big Beautiful Bill could reshape your medical career

    Kara Pepper, MD
  • Why the U.S. Preventive Services Task Force is essential to saving lives

    J. Leonard Lichtenfeld, MD
  • Brooklyn hepatitis C cluster reveals hidden dangers in outpatient clinics

    Don Weiss, MD, MPH
  • Why nearly 800 U.S. hospitals are at risk of shutting down

    Harry Severance, MD
  • Innovation is moving too fast for health care workers to catch up

    Tiffiny Black, DM, MPA, MBA
  • How pediatricians can address the health problems raised in the MAHA child health report

    Joseph Barrocas, MD
  • Most Popular

  • Past Week

    • Why pain doctors face unfair scrutiny and harsh penalties in California

      Kayvan Haddadan, MD | Physician
    • Love, birds, and fries: a story of innocence and connection

      Dr. Damane Zehra | Physician
    • How a doctor defied a hurricane to save a life

      Dharam Persaud-Sharma, MD, PhD | Physician
    • Why physician strikes are a form of hospice

      Patrick Hudson, MD | Physician
    • What street medicine taught me about healing

      Alina Kang | Education
    • The silent cost of choosing personalization over privacy in health care

      Dr. Giriraj Tosh Purohit | Tech
  • Past 6 Months

    • Why transgender health care needs urgent reform and inclusive practices

      Angela Rodriguez, MD | Conditions
    • COVID-19 was real: a doctor’s frontline account

      Randall S. Fong, MD | Conditions
    • Why primary care doctors are drowning in debt despite saving lives

      John Wei, MD | Physician
    • Confessions of a lipidologist in recovery: the infection we’ve ignored for 40 years

      Larry Kaskel, MD | Conditions
    • Why taxing remittances harms families and global health care

      Dalia Saha, MD | Finance
    • mRNA post vaccination syndrome: Is it real?

      Harry Oken, MD | Conditions
  • Recent Posts

    • Beyond the surgery: the human side of transplant care [PODCAST]

      The Podcast by KevinMD | Podcast
    • Why health care must adopt a harm reduction model

      Dylan Angle | Education
    • Why frivolous malpractice lawsuits are costing Americans billions

      Howard Smith, MD | Physician
    • Protecting what matters most: Guarding our NP licenses with integrity

      Lynn McComas, DNP, ANP-C | Conditions
    • How AI helped a veteran feel seen in the U.S. health care system

      David Bittleman, MD | Physician
    • Why physician strikes are a form of hospice

      Patrick Hudson, MD | Physician

Subscribe to KevinMD and never miss a story!

Get free updates delivered free to your inbox.


Find jobs at
Careers by KevinMD.com

Search thousands of physician, PA, NP, and CRNA jobs now.

Learn more

View 20 Comments >

Founded in 2004 by Kevin Pho, MD, KevinMD.com is the web’s leading platform where physicians, advanced practitioners, nurses, medical students, and patients share their insight and tell their stories.

Social

  • Like on Facebook
  • Follow on Twitter
  • Connect on Linkedin
  • Subscribe on Youtube
  • Instagram

ADVERTISEMENT

ADVERTISEMENT

  • Most Popular

  • Past Week

    • Why pain doctors face unfair scrutiny and harsh penalties in California

      Kayvan Haddadan, MD | Physician
    • Love, birds, and fries: a story of innocence and connection

      Dr. Damane Zehra | Physician
    • How a doctor defied a hurricane to save a life

      Dharam Persaud-Sharma, MD, PhD | Physician
    • Why physician strikes are a form of hospice

      Patrick Hudson, MD | Physician
    • What street medicine taught me about healing

      Alina Kang | Education
    • The silent cost of choosing personalization over privacy in health care

      Dr. Giriraj Tosh Purohit | Tech
  • Past 6 Months

    • Why transgender health care needs urgent reform and inclusive practices

      Angela Rodriguez, MD | Conditions
    • COVID-19 was real: a doctor’s frontline account

      Randall S. Fong, MD | Conditions
    • Why primary care doctors are drowning in debt despite saving lives

      John Wei, MD | Physician
    • Confessions of a lipidologist in recovery: the infection we’ve ignored for 40 years

      Larry Kaskel, MD | Conditions
    • Why taxing remittances harms families and global health care

      Dalia Saha, MD | Finance
    • mRNA post vaccination syndrome: Is it real?

      Harry Oken, MD | Conditions
  • Recent Posts

    • Beyond the surgery: the human side of transplant care [PODCAST]

      The Podcast by KevinMD | Podcast
    • Why health care must adopt a harm reduction model

      Dylan Angle | Education
    • Why frivolous malpractice lawsuits are costing Americans billions

      Howard Smith, MD | Physician
    • Protecting what matters most: Guarding our NP licenses with integrity

      Lynn McComas, DNP, ANP-C | Conditions
    • How AI helped a veteran feel seen in the U.S. health care system

      David Bittleman, MD | Physician
    • Why physician strikes are a form of hospice

      Patrick Hudson, MD | Physician

MedPage Today Professional

An Everyday Health Property Medpage Today
  • Terms of Use | Disclaimer
  • Privacy Policy
  • DMCA Policy
All Content © KevinMD, LLC
Site by Outthink Group

Why physicians may not buy into ACOs
20 comments

Comments are moderated before they are published. Please read the comment policy.

Loading Comments...