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

Fee-for-service isn’t always a bad thing

Suneel Dhand, MD
Policy
September 18, 2016
Share
Tweet
Share

One of the biggest shifts in American health care over the last several years (and we’ve only just seen the tip of the iceberg so far) is the shift of the system away from the traditional fee-for-service model, and towards a system based more on quality, outcomes, and yes, a degree of rationing.

By all measures, we know that the pure fee-for-service model — at least mostly funded by Medicare — is unsustainable. Some estimates even suggest health care spending could approach close to 50 percent of the entire nation’s GDP in the next 50 years! Put simply, if the brakes are not put on in some way or another, the current system will completely bankrupt the nation very soon.

So, as a solution, policymakers are doing everything possible to halt the exponential growth in spending. Moving away from fee-for-service has understandably ruffled a lot of feathers, because it not only requires changes in how we go about funding health care, but also the whole philosophy of how we work and think about the practice of medicine.

In its purest form, fee-for-service always is a dubious way to administer health care. That’s because the more we investigate, test and intervene, the more financial rewards potentially exist. If there’s no thought about whether or not certain things are actually really needed — and everything is just reimbursed regardless — that’s really not a healthy thing (no pun intended). It also doesn’t put the right amount of focus on preventive medicine and wellness.

I’ve seen situations exist in certain Third World countries I’ve visited, where everything is completely paid out-of-pocket, and doctors are a bit ruthless with getting as much as they can. An unacceptable situation. If that’s human nature at one end of the spectrum, I’d like to focus on human nature at the other end of the spectrum.

I grew up and went to medical school in the United Kingdom, which probably has the most centralized and regulated health care system in the world. The National Health Service, NHS, is a national treasure across the pond — widely respected and admired. But there’s an aspect of that system which really didn’t sit well with me, and made me all the more appreciative of the United States. You see, in the UK, within the entirely government-run and funded health care system, you have the complete opposite mentality of fee-for-service. Over there, the mantra is to not treat and avoid intervention as much as possible.

I remember when I worked in NHS hospitals, the pushback general practitioners would get (often disrespectfully) if they ever wanted to admit a patient to hospital. I remember how hard it was to get specialists to see our patients in the hospital and how much we had to justify (almost to the point of getting onto our knees!) to the radiologist, if we ever wanted to get a CT or MRI scan. Now I don’t mean to knock the amazing work that doctors in England do on a daily basis and how hard-working they are (many of my friends are still there). But it’s only human nature that when you get paid the same to see 5 patients a day, or 25 patients a day, the work ethic on a human psychological level is always going to be different.

When I first came to America, it was pleasure to be able to order tests at will (not frivolously), but at least not get so much resistance every time I felt my patient needed something done. It was also great to call specialists up and have them “thank me for the consult” and see the patient in quick time. A total customer service mentality, with the underlying philosophy that the harder you work and more productive you are, the more you will get paid and reimbursed.

America, be very wary of moving towards a rationed and “quality” based health care system that doesn’t have the right rewards and incentives in place. The American public may be very disappointed with what we end up with.

Suneel Dhand is an internal medicine physician and author of three books, including Thomas Jefferson: Lessons from a Secret Buddha. He is the founder and director, HealthITImprove, and blogs at his self-titled site, Suneel Dhand.

Image credit: Shutterstock.com

Prev

Pain patients are being cut off from their drugs. Here's why.

September 18, 2016 Kevin 3
…
Next

You'll be shocked and saddened when you find out what doctors really do

September 18, 2016 Kevin 2
…

Tagged as: Medicare

Post navigation

< Previous Post
Pain patients are being cut off from their drugs. Here's why.
Next Post >
You'll be shocked and saddened when you find out what doctors really do

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

More by Suneel Dhand, MD

  • The dream patient that makes a doctor very happy

    Suneel Dhand, MD
  • When the family wants to speak to the doctor

    Suneel Dhand, MD
  • 3 reasons why patients are unhappy

    Suneel Dhand, MD

Related Posts

  • Is the U.S. addicted to fee-for-service health care?

    Robert Pearl, MD
  • What is the perfect fee-for-service system?

    Matthew Hahn, MD
  • Health care is not a service commodity

    Peter Spence, MD, MBA
  • An eye-opening rotation at the Indian Health Service

    Eric Schmidt
  • The detrimental effect on patients of an insurance company slashing its fee schedule

    Clifford L. Deal, MD
  • A state of service — and how flow can get you there

    Benjamin Borokhovsky

More in Policy

  • U.S. health care leadership must prepare for policy-driven change

    Lee Scheinbart, MD
  • How locum tenens work helps physicians and APPs reclaim control

    Brian Sutter
  • Why Medicaid cuts should alarm every doctor

    Ilan Shapiro, MD
  • Why physician voices matter in the fight against anti-LGBTQ+ laws

    BJ Ferguson
  • The silent toll of ICE raids on U.S. patient care

    Carlin Lockwood
  • What Adam Smith would say about America’s for-profit health care

    M. Bennet Broner, PhD
  • Most Popular

  • Past Week

    • When did we start treating our lives like trauma?

      Maureen Gibbons, MD | Physician
    • Why removing fluoride from water is a public health disaster

      Steven J. Katz, DDS | Conditions
    • Why sleep is the missing pillar in modern health care

      Carlos Nunez, MD | Conditions
    • Why some doctors age gracefully—and others grow bitter

      Patrick Hudson, MD | Physician
    • How to survive a broken health care system without losing yourself [PODCAST]

      The Podcast by KevinMD | Podcast
    • How the shingles vaccine could help prevent dementia

      Marc Arginteanu, MD | Conditions
  • Past 6 Months

    • Why tracking cognitive load could save doctors and patients

      Hiba Fatima Hamid | Education
    • What the world must learn from the life and death of Hind Rajab

      Saba Qaiser, RN | Conditions
    • The silent toll of ICE raids on U.S. patient care

      Carlin Lockwood | Policy
    • Addressing the physician shortage: How AI can help, not replace

      Amelia Mercado | Tech
    • Why medical students are trading empathy for publications

      Vijay Rajput, MD | Education
    • Physician patriots: the forgotten founders who lit the torch of liberty

      Muhamad Aly Rifai, MD | Physician
  • Recent Posts

    • Why sleep is the missing pillar in modern health care

      Carlos Nunez, MD | Conditions
    • How a family’s strength led to a successful kidney transplant

      C. Nicole Swiner, MD | Conditions
    • The food-drug interaction risks your doctor may be missing

      Frank Jumbe | Meds
    • Beyond the TikTok hype: Rebuilding trust in evidence-based weight loss medicine

      Sarah White, APRN | Conditions
    • The weaponization of rules: How regulatory overreach puts physicians and health care at risk

      Kayvan Haddadan, MD | Physician
    • How to speak the language of leadership to improve doctor wellness [PODCAST]

      The Podcast by KevinMD | Podcast

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 11 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

ADVERTISEMENT

ADVERTISEMENT

  • Most Popular

  • Past Week

    • When did we start treating our lives like trauma?

      Maureen Gibbons, MD | Physician
    • Why removing fluoride from water is a public health disaster

      Steven J. Katz, DDS | Conditions
    • Why sleep is the missing pillar in modern health care

      Carlos Nunez, MD | Conditions
    • Why some doctors age gracefully—and others grow bitter

      Patrick Hudson, MD | Physician
    • How to survive a broken health care system without losing yourself [PODCAST]

      The Podcast by KevinMD | Podcast
    • How the shingles vaccine could help prevent dementia

      Marc Arginteanu, MD | Conditions
  • Past 6 Months

    • Why tracking cognitive load could save doctors and patients

      Hiba Fatima Hamid | Education
    • What the world must learn from the life and death of Hind Rajab

      Saba Qaiser, RN | Conditions
    • The silent toll of ICE raids on U.S. patient care

      Carlin Lockwood | Policy
    • Addressing the physician shortage: How AI can help, not replace

      Amelia Mercado | Tech
    • Why medical students are trading empathy for publications

      Vijay Rajput, MD | Education
    • Physician patriots: the forgotten founders who lit the torch of liberty

      Muhamad Aly Rifai, MD | Physician
  • Recent Posts

    • Why sleep is the missing pillar in modern health care

      Carlos Nunez, MD | Conditions
    • How a family’s strength led to a successful kidney transplant

      C. Nicole Swiner, MD | Conditions
    • The food-drug interaction risks your doctor may be missing

      Frank Jumbe | Meds
    • Beyond the TikTok hype: Rebuilding trust in evidence-based weight loss medicine

      Sarah White, APRN | Conditions
    • The weaponization of rules: How regulatory overreach puts physicians and health care at risk

      Kayvan Haddadan, MD | Physician
    • How to speak the language of leadership to improve doctor wellness [PODCAST]

      The Podcast by KevinMD | Podcast

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

Fee-for-service isn’t always a bad thing
11 comments

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

Loading Comments...