1. “ The Perfect Storm” The Current Crisis State of U.S. Healthcare * * * 34th National Primary Care Nurse Practitioner Symposium * * * Vince Markovchick, MD, FAAEM Director, Emergency Medical Services Denver Health Professor of Surgery Division of Emergency Medicine University of Colorado
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5. Health Insurance Costs Keep Rising Health insurance premiums are rising 2-3 times as fast as inflation and wages.
6. Administration is the Fastest Growing job in Health Care Source: Bureau of Labor Statistics and NCHS
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9. B: Unemployed is probably closer to 8 or 9% now. Children have increased in coverage dramatically since this study, by about 22% due to the SCHIP program.
20. National Health Spending: Per Person Source: Centers for Medicare & Medicaid Services Projected Actual Per capita expenditures
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26. Obviously we have lower numbers here, simply because our life expectancy is less.
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29. If you were in an insurance company CEO, who would you want to insure? Source:Agency for Healthcare Research and Quality MEPS, 1999 Percent of health Care Expenditures 1% 1% 2% 4% 6% 13% 73% 0% 0% 0%
30. Dr. Marko: This graph shows a population divided into 10ths. It shows how health care services are utilized in any one year in any population. Take even 1000 people in a population and you will find that the majority of them (80%) are healthy and use very little care. 30% of them in fact, use no care at all!. In actuality most of the services are used in any one year by a small percentage. 10% use 72 % of the health care dollars. If we add to that the 10% who use 13% of the care we find that 20% use 86% of health care services. It is worth keeping in mind that these are not the same people all the time. All of us move in and out of this group at one or many times in our lives. And when we are in that group ( birth of a baby, coronary bypass, cancer diagnosis) we expect health care services to be there waiting for us. Health care is not like other human needs. We all have the same basic needs for food. shelter, clothing etc. When you look at the population’s needs in regard to health care needs are vastly different. Because at any one time the healthy majority use very little care - 80% of the population in Vermont use only 14% of the health care dollars. On the other hand, 10% use 73% of the health care dollar. Another important point is that the most expensive services The NICU, the trauma unit, dialysis to name a few are used by a very small number of people. Dialysis is used by only 380 people per year in Vermont. Yet the infrastructure costs of sustaining these services are enormous.
31. Most of the money is spent on a few people in any one year Source:Agency for Healthcare Research and Quality MEPS, 1999 Percent of health Care Expenditures 1% 1% 2% 4% 6% 13% 73% 0% 0% 0% 20% use 86% of the care
32. Dr. Marko: Most people are not using care. 80% use around 15%. We could just look at their needs and adjust services according to the needs of the overwhelming majority. Go from $2 trillion to a mere $300 billion. Preposterous, of course, we all expect these services when we need them. Problem is, there is no health care system that guarantees adequate financing of these services.
33. If you were in an insurance company CEO, who would you want to insure? Source:Agency for Healthcare Research and Quality MEPS, 1999 Percent of health Care Expenditures 1% 1% 2% 4% 6% 13% 73% 0% 0% 0% 80% uses less than $1000 of care per year
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36. Administration is the Fastest Growing job in Health Care Source: Bureau of Labor Statistics and NCHS
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38. One-Third of Health Spending is Consumed by Administration 69% 31% Clinical Care Administrative Costs Source: Woolhandler, et al, New England Journal of Medicine, August 2003 & Int. Jrnl. Of Hlth. Services, 2004 ($2000 per person)
39. Dr. Marko: Does not guarantee health coverage- people get sick, especially very sick, get care, no way to pay Is complicated and creates a massive bureaucracy that consumes 31% of the health care dollar When the fixed costs of the infrastructure aren’t paid, a deficit results.
40. Non-profit organizations typically spend between 1-5% on administrative costs, as opposed to the 15-31% of private healthcare organizations.
42. Yet another example of how corrupted and inefficient are the bills passed by congress. They try to “improve” the current program, resulting in more costs that essentially get wasted.
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44. AMI stands for acute myocardial infarction and CHF is congestive heart failure.
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53. This is EXACTLY why it would be so difficult to implement any sort of an effective NHP in the US….there are so many other factors, such as education and private businesses, etc. Because of this, the only way to really implement it would be to do it on a city or state level, because the people could vote and be represented according to their needs; changes would occur much more gradually, and corruption would be less evident.
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67. I don’t really understand this slide, but maybe you will….it’s twenty years old, anyway.
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Notas do Editor
Dr. Markovchick is the father of one of my fellow students. He, though now retired (as of the day he gave us this presentation), will continue to present this all across Colorado. The slides are his, though I have not included several of them and deleted some unsupported information from others. These footnotes are almost all my own, but a few are his (I have indicated which ones). References are provided at the bottom of each page. I have made a note on any page that was without references.
The organization to which Dr. Markovchick belongs is a financially un-biased source for healthcare reform, made up of physicians and nurses alike who advocate for healthcare reformation.
This is a brief synopsis of the following slides….
Health insurance premiums are rising 2-3 times as fast as inflation and wages.
This chart helps us explain why we can spend so much more for so much less. Among the nations we will look at, all of them have taken the fundamental step of rejecting the financing of care by for-profit insurance companies, excepting the United States. The natural market behavior of insurance companies is to compete to cover healthy, profitable people while shunning anyone who actually needs care. To do this, they erect massive bureaucracies with no purpose other than to fight claims, issue denials and screen out the sick. They consume care dollars, but their main output is paperwork headaches. In response, hospitals and doctors’ offices must employ virtual armies of administrators to deal with the separate payment bureaucracies of thousands of different insurance companies. U.S. businesses are saddled with the costly burden of administering their own health benefits. Co-payment collection and processing, eligibility determinations, utilization reviews: the scope of the bloat is staggering. This slide begins to give a idea of the explosion of administrative waste within our health system.
Reference: www.census.gov or http://www.medscape.com/viewarticle/567737 retrieved August 2, 2009. These numbers were true roughly three years ago; they have worsened since then.
Unemployed is probably closer to 8 or 9% now. Children have increased in coverage dramatically since this study, by about 22% due to the SCHIP program.
Note: NO REFERENCE, though we know that overhead costs and HMOs are a huge part of any health insurance company. It is essentially that the less care that is offered, the less the insurance company pays.
Note: NO REFERENCE
Our tax-financed health care spending is the highest of ANY NATION IN THE WORLD, without having a nationalized health care system. Our taxes currently pay for 59% of healthcare costs in the United States. Reference: Paying For National Health Insurance—And Not Getting It Steffie Woolhandler and David U. Himmelstein, retrieved Aug 2 2009 from http://content.healthaffairs.org/cgi/content/full/21/4/88
Now it is closer to $7,700 per capita.
These numbers are not lying to us.
Obviously we have lower numbers here, simply because our life expectancy is less.
PLEASE NOTE THESE DISCREPANCIES
Obviously, our hospital stays are much shorter, and it is not because our quality is better…..it is to reduce costs to the hospitals and to make room for someone else.
Dr. Marko: This graph shows a population divided into 10ths. It shows how health care services are utilized in any one year in any population. Take even 1000 people in a population and you will find that the majority of them (80%) are healthy and use very little care. 30% of them in fact, use no care at all!. In actuality most of the services are used in any one year by a small percentage. 10% use 72 % of the health care dollars. If we add to that the 10% who use 13% of the care we find that 20% use 86% of health care services. It is worth keeping in mind that these are not the same people all the time. All of us move in and out of this group at one or many times in our lives. And when we are in that group ( birth of a baby, coronary bypass, cancer diagnosis) we expect health care services to be there waiting for us. Health care is not like other human needs. We all have the same basic needs for food. shelter, clothing etc. When you look at the population’s needs in regard to health care needs are vastly different. Because at any one time the healthy majority use very little care - 80% of the population in Vermont use only 14% of the health care dollars. On the other hand, 10% use 73% of the health care dollar. Another important point is that the most expensive services The NICU, the trauma unit, dialysis to name a few are used by a very small number of people. Dialysis is used by only 380 people per year in Vermont. Yet the infrastructure costs of sustaining these services are enormous.
Dr. Marko: Most people are not using care. 80% use around 15%. We could just look at their needs and adjust services according to the needs of the overwhelming majority. Go from $2 trillion to a mere $300 billion. Preposterous, of course, we all expect these services when we need them. Problem is, there is no health care system that guarantees adequate financing of these services.
Dr. Marko: This graph shows a population divided into 10ths. It shows how health care services are utilized in any one year in any population. Take even 1000 people in a population and you will find that the majority of them (80%) are healthy and use very little care. 30% of them in fact, use no care at all!. In actuality most of the services are used in any one year by a small percentage. 10% use 72 % of the health care dollar.If we add to that the 10% who use 13% of the care we find that 20% use 86% of health care services. It is worth keeping in mind that these are not the same people all the time. All of us move in and out of this group at one or many times in our lives. And when we are in that group ( birth of a baby, coronary bypass, cancer diagnosis) we expect health care services to be there waiting for us. Health care is not like other human needs. We all have the same basic needs for food. shelter, clothing etc. When you look at the population’s needs in regard to health care needs are vastly different. Because at any one time the healthy majority use very little care - 80% of the population in Vermont use only 14% of the health care dollar. On the other hand, 10% use 73%of the health care dollar.. Another important point is that the most expensive services The NICU, the trauma unit, dialysis to name a few are used by a very small number of people. Dialysis is used by only 380 people per year in Vermont. Yet the infrastructure costs of sustaining these services are enormous.
Definitions to what happens in private insurance companies. HMOs perform these actions in order to decrease costs. No reference provided for statistics on this page.
This chart helps us explain why we can spend so much more for so much less. Among the nations we just looked at, all of them have take the fundamental step of rejecting the financing of care by for-profit insurance companies, except for the United States. Dr. Marko: The natural market behavior of insurance companies is to compete to cover healthy, profitable people while rejecting anyone who actually needs care. To do this, they erect massive bureaucracies with no purpose other than to fight claims, issue denials and screen out the sick. They consume care dollars, but their main output is paperwork headaches. In response, hospitals and doctors’ offices must employ armies of administrators to deal with the separate payment bureaucracies of thousands of different insurance companies. U.S. businesses are saddled with the costly burden of administering their own health benefits. Co-payment collection and processing, eligibility determinations, utilization reviews: the scope of the bloat is staggering. This slide begins to give a idea of the explosion of administrative waste within our health system.
Dr. Marko: Does not guarantee health coverage- people get sick, especially very sick, get care, no way to pay Is complicated and creates a massive bureaucracy that consumes 31% of the health care dollar When the fixed costs of the infrastructure aren’t paid, a deficit results.
Non-profit organizations typically spend between 1-5% on administrative costs, as opposed to the 15-31% of private healthcare organizations.
Essentially, our taxes going to pay private insurance companies.
Yet another example of how corrupted and inefficient are the bills passed by congress. They try to “improve” the current program, resulting in more costs that essentially get wasted.
MYTH. Personally, I’m sick and tired of hearing this crap; I’ve worked in several for-profit hospitals and several not-for-profit hospitals, and my personal experience correlates entirely with the next slide.
AMI stands for acute myocardial infarction and CHF is congestive heart failure.
References provided on previous slides; this is mainly a summary.
Reference: see following slide. The individual is charge full-price, but the insurance company negotiates a discount. For example, if you are charged $20,000 for a three-day visit to the hospital for an appendectomy, then you will pay the full price. If you have insurance, they’ll usually have a negotiated price of between 40-70% of the normal price, and you pay the co-pay. In other words, the insurance company would have to pay only $10,000 and you would pay the $5,000 premium, leaving the insurance company to pay for $5,000 of your bill while increasing your premium or denying you coverage renewal at the end of the contract.
Note: NO REFERENCE
I would add that you have excellent healthcare if you are poor and qualify for Medicaid or Medicare coverage.
This is EXACTLY why it would be so difficult to implement any sort of an effective NHP in the US….there are so many other factors, such as education and private businesses, etc. Because of this, the only way to really implement it would be to do it on a city or state level, because the people could vote and be represented according to their needs; changes would occur much more gradually, and corruption would be less evident.
This is simply unacceptable. The rise came when pharmaceutical companies began advertising on television and lobbyists and drug representatives began providing biased drug education to congress, physicians, and the public. For example, Plavix is something like 4 bucks a pop, whereas aspirin is maybe half a cent. Aspirin is MORE EFEFCTIVE at preventing an MI; Plavix is only indicated in the case of a stent. However, millions of people request Plavix because it is advertised with animations of atherosclerosis “dissolving” from the blood vessels! The people aren’t paying for it (insurance is), so they do it. Doctors prescribe it because drug representatives spend millions of dollars per year delivering their lunches and providing biased drug information.
Note: NO REFERENCE
PCPs are probably about eighty percent, whereas specialty areas are probably about 15% (because, obviously, their salaries would be negatively impacted).
I don’t really understand this slide, but maybe you will….it’s twenty years old, anyway.
Change “would” to “could”
Though Dr. Marko uses this as why we have problems, I agree…..we need a uniquely American approach. To me, that’s what this is if implemented on the state level.
This is, essentially, Obama’s plan.
This “new money” DOES NOT EXIST. The current healthcare “reform” is not a reform at all, it is a black hole of debt. It just encourages private insurance companies to dump their sick people on the government while still charging exorbitant prices to the healthy.
This is an enormous proposition, of reducing overhead costs (basically, going from profit to non-profit organizations).