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

The Medicare spending we should be concerned about

Leslie Kernisan, MD, MPH
Policy
April 24, 2014
Share
Tweet
Share

“Do patients care about how much money their doctors make?”

This is the headline of a recently published post by Trudy Lieberman, and was written in response to the recent New Your Times’ coverage of Medicare disclosing payments to individual providers.

Now, I found the Times story fascinating on many levels, but I’ll admit it hadn’t occurred to me that the main value of this data release is that patients can find out how much their particular doctors are making off of Medicare.

It’s true that the Times’ main angle — that 2% of doctors receive almost a quarter of Medicare’s payments to providers — is disturbing and gripping. Apparently 100 doctors received a total of $610 million in payments. Who wouldn’t be captivated by that statistic. (Bring out the high rollers for a public flogging, or at least a billing investigation!)

But it was other aspects of the Medicare spending data that I think is more important.

The Medicare spending we should be concerned about

Here are the payment figures that really caught my eye:

  • $12 billion spent on outpatient visits in 2012, with average reimbursement of $57 per visit. This is out of a total Medicare spending of $600 billion for the year.
  • $77 billion overall paid to doctors and health care providers. (Unclear to me whether this is just Part B, or also includes payments to doctors during hospitalizations.)
  • $13.5 billion spent on “commercial entities like clinical laboratories and ambulance services.”

Look at that. Outpatient visits are 2% of Medicare spending. And at $57/visit, is it any wonder that primary care for seniors is often woefully inadequate?

We spend more on laboratory services and ambulances than we do on outpatient visits.

This data makes me a bit mad, because whenever people like me mention that we need more time with older patients, if we are to do the work society needs us to do, other people start telling us that it costs too much money. For instance, it is widely pronounced that primary care physicians need to learn to do more with less.

We can spend $1 billion/year injecting an expensive medication for macular degeneration (and that was for 143,000 of Medicare’s 47-50 million beneficiaries), but we don’t pay for clinicians to assess caregiver burden and well-being.

Now, it’s true that if we simply increased the reimbursement for Medicare outpatient visits, we likely wouldn’t see much improvement in health care for seniors. To seriously improve primary care and outpatient care for seniors requires not only more money, but changing the way money — and patients — flow through the system. (I’d like to see patients and families having a greater say in how their Medicare money is spent; many might prefer home assistance to an extra echocardiogram. Right now we have payor-centered care rather than patient-centered care.)

Still, on the whole these data reveal that Medicare’s investment in outpatient care — and primary care clinicians — is pitiful.

ADVERTISEMENT

Surely we can afford to redirect some of that Medicare spending into primary care?

What should patients care about, when it comes to doctors and money?

Let’s return to the question of what patients care about, when it comes to doctors and money.

Trudy Lieberman points out that this information — knowing how much an individual doctor was paid by Medicare — seems unlikely to be valued by patients. For instance, it doesn’t help people know which doctors are better (as if it’s easy to get an appointment with the good doctors, but that’s another issue).

This is probably true. But when I read the following, I find myself wincing: “Still, I keep returning to the question: What will the data do for the average person? Can a person really use it to make decent health decisions?”

Herein lies the rub. No, this data does not really help an individual make decent health decisions about his or her own health.

But what about the process by which we — a collection of individual citizens residing in this country — decide how we will spend our collective health care dollars?

Every week, I have someone ask me how they can find a geriatrician to provide primary care for their elderly loved one.

Every month I have someone ask me why don’t more doctors make housecalls.

The answers to these questions lie in part in the spending data, because money makes the world go round. We spend 2% on outpatient care. We reimburse clinicians much better for doing procedures than for helping older patients with their primary care problems.

If the average person knew this, then perhaps they’d understand why right now it’s so hard to find a doctor to make housecalls, or to discuss prognosis, or to thoughtfully manage pain and other symptoms.

But most people don’t understand this. Getting people to think about how reimbursement affects health care is tough because:

  • The average person doesn’t want to think about it as long as he or she is healthy.
  • When sick, the average person just wants the problems fixed.
  • Whether healthy or sick, the average person is unlikely to be interested in understanding the financial underpinnings of our health care system. There is little immediate benefit plus it’s a complex thorny topic that easily is politicized.

In my experience, when faced with illness, patients care quite a lot about what kinds of health services and supports are available. But when faced with illness, people are lacking the time and energy to focus on long plays, like advocating for a better primary care system.

I firmly believe that most people would value and appreciate a more robust system of primary care and supportive care for older adults.

But if they don’t know or care that Medicare only spends a piddly 2% on outpatient visits, or that clinicians are strongly incentivized to avoid engaging in substantive primary care work, then it will be hard for them to exert their citizens’ influence in demanding the primary care infrastructure they deserve.

Leslie Kernisan is an internal medicine physician and geriatrician who blogs at GeriTech.  She could be reached on Google+.

Prev

The Affordable Care Act has made restaurants more partisan

April 24, 2014 Kevin 31
…
Next

Treating cancer should not be paved in our patients' financial despair

April 24, 2014 Kevin 17
…

Tagged as: Medicare, Primary Care

Post navigation

< Previous Post
The Affordable Care Act has made restaurants more partisan
Next Post >
Treating cancer should not be paved in our patients' financial despair

ADVERTISEMENT

More by Leslie Kernisan, MD, MPH

  • Making the case for social media to geriatricians and other physicians

    Leslie Kernisan, MD, MPH
  • A tale of two strep throats: Retail clinic vs. PCP

    Leslie Kernisan, MD, MPH
  • a desk with keyboard and ipad with the kevinmd logo

    The problem with home health care communication

    Leslie Kernisan, MD, MPH

More in Policy

  • Who gets to be well in America: Immigrant health is on the line

    Joshua Vasquez, MD
  • Online eye exams spark legal battle over health care access

    Joshua Windham, JD and Daryl James
  • The One Big Beautiful Bill and the fragile heart of rural health care

    Holland Haynie, MD
  • Why health care leaders fail at execution—and how to fix it

    Dave Cummings, RN
  • Healing the doctor-patient relationship by attacking administrative inefficiencies

    Allen Fredrickson
  • The hidden health risks in the One Big Beautiful Bill Act

    Trevor Lyford, MPH
  • Most Popular

  • Past Week

    • Forced voicemail and diagnosis codes are endangering patient access to medications

      Arthur Lazarus, MD, MBA | Meds
    • The One Big Beautiful Bill and the fragile heart of rural health care

      Holland Haynie, MD | Policy
    • America’s ER crisis: Why the system is collapsing from within

      Kristen Cline, BSN, RN | Conditions
    • Why timing, not surgery, determines patient survival

      Michael Karch, MD | Conditions
    • How early meetings and after-hours events penalize physician-mothers

      Samira Jeimy, MD, PhD and Menaka Pai, MD | Physician
    • FDA delays could end vital treatment for rare disease patients

      GJ van Londen, MD | Meds
  • Past 6 Months

    • Forced voicemail and diagnosis codes are endangering patient access to medications

      Arthur Lazarus, MD, MBA | Meds
    • How President Biden’s cognitive health shapes political and legal trust

      Muhamad Aly Rifai, MD | Conditions
    • Why are medical students turning away from primary care? [PODCAST]

      The Podcast by KevinMD | Podcast
    • The One Big Beautiful Bill and the fragile heart of rural health care

      Holland Haynie, MD | Policy
    • Why “do no harm” might be harming modern medicine

      Sabooh S. Mubbashar, MD | Physician
    • Here’s what providers really need in a modern EHR

      Laura Kohlhagen, MD, MBA | Tech
  • Recent Posts

    • Addressing menstrual health inequities in adolescents

      Callia Georgoulis | Conditions
    • How to advance workforce development through research mentorship and evidence-based management

      Olumuyiwa Bamgbade, MD | Physician
    • The truth about perfection and identity in health care

      Ryan Nadelson, MD | Physician
    • Civil discourse as a leadership competency: the case for curiosity in medicine

      All Levels Leadership | Physician
    • Healing beyond the surface: Why proper chronic wound care matters

      Alvin May, MD | Conditions
    • Why specialist pain clinics and addiction treatment services require strong primary care

      Olumuyiwa Bamgbade, MD | Conditions

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 5 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

  • Most Popular

  • Past Week

    • Forced voicemail and diagnosis codes are endangering patient access to medications

      Arthur Lazarus, MD, MBA | Meds
    • The One Big Beautiful Bill and the fragile heart of rural health care

      Holland Haynie, MD | Policy
    • America’s ER crisis: Why the system is collapsing from within

      Kristen Cline, BSN, RN | Conditions
    • Why timing, not surgery, determines patient survival

      Michael Karch, MD | Conditions
    • How early meetings and after-hours events penalize physician-mothers

      Samira Jeimy, MD, PhD and Menaka Pai, MD | Physician
    • FDA delays could end vital treatment for rare disease patients

      GJ van Londen, MD | Meds
  • Past 6 Months

    • Forced voicemail and diagnosis codes are endangering patient access to medications

      Arthur Lazarus, MD, MBA | Meds
    • How President Biden’s cognitive health shapes political and legal trust

      Muhamad Aly Rifai, MD | Conditions
    • Why are medical students turning away from primary care? [PODCAST]

      The Podcast by KevinMD | Podcast
    • The One Big Beautiful Bill and the fragile heart of rural health care

      Holland Haynie, MD | Policy
    • Why “do no harm” might be harming modern medicine

      Sabooh S. Mubbashar, MD | Physician
    • Here’s what providers really need in a modern EHR

      Laura Kohlhagen, MD, MBA | Tech
  • Recent Posts

    • Addressing menstrual health inequities in adolescents

      Callia Georgoulis | Conditions
    • How to advance workforce development through research mentorship and evidence-based management

      Olumuyiwa Bamgbade, MD | Physician
    • The truth about perfection and identity in health care

      Ryan Nadelson, MD | Physician
    • Civil discourse as a leadership competency: the case for curiosity in medicine

      All Levels Leadership | Physician
    • Healing beyond the surface: Why proper chronic wound care matters

      Alvin May, MD | Conditions
    • Why specialist pain clinics and addiction treatment services require strong primary care

      Olumuyiwa Bamgbade, MD | Conditions

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

The Medicare spending we should be concerned about
5 comments

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

Loading Comments...