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Richard C. Senelick, M.D.

Richard C. Senelick, M.D.

GET UPDATES FROM Richard C. Senelick, M.D.

Health Care Fraud: Who Is Responsible?

Posted: 03/ 1/11 07:21 AM ET

Every day, I sit down at my desk and reach for the stack of mail, magazines and "junk." After a while I develop a rhythm where, in one fluid movement, I can extract the slick advertisements and float them into the trash can next to my knee. The other day I had a steady rhythm going when my eyes locked on the bold red, white and blue flyer. It asked, "Can you imagine making a year's income in a month's time? Would you like to increase your weekly income by $8000-$10,000 dollars?" It was not from an investment firm, but was aimed at my medical practice. It announced seminars throughout the United States where I could learn how to get more money out of the worker's compensation system. All I had to do was take the course, buy their machine, follow their instructions on using the "correct" billing codes and I too could be driving a nicer car in six months.

Sound good? Payments from insurance companies have been decreasing, and who couldn't use a little extra cash in their pocket? Is this an unusual practice or is there a more pervasive problem?

Federal authorities recently announced a $225 million Medicare Bust on more than 100 doctors, nurses and therapists. A proctologist in Brooklyn, New York billed Medicare $6.5 million for hemorrhoid removals he never performed, while a physical therapy scam billed Medicare $57 million for back rubs. As large as these amounts of money seem, they barely make a dent in the size of Medicare and insurance fraud.

It's Not Just Medicare

The Coalition Against Insurance Fraud estimates that fraudulent claims and billing by health care professionals accounts for between $60-90 billion a year. Who is driving this fraud? Are doctors cloaking themselves in the sanctity of patient care and then pointing their finger at the other guy? The truth is that junk science, inappropriate testing and unnecessary procedures are being promoted by all of the different sectors of the health care pie. For example, a person may see their automobile accident as an opportunity to make money or a physician may order excessive tests in their office to make up for the reductions in what they get paid for their services. Fraud is around us in many different forms.

After an accident, the patient may be an innocent bystander who is being used by an unethical doctor or attorney to exaggerate their claim and billings. The physician or chiropractor may see the patient as a vehicle to perform more profitable tests, while their attorney wants to increase the tests in the case to increase its value. The unsuspecting patient may believe that he really needs all of the testing and as a result may develop a false belief system that he has a more serious problem. For example, normal wear and tear in the spine on an MRI scan is presented to the patient as "a serious problem that will never get better."

The medical provider may be driving the process by having the patient return for unnecessary testing and treatments. Just open the newspaper and look at the ads for a "free" initial evaluation. How many of these people are examined and told that everything is normal and there is no need to return? Once in the door, the testing and treatment begins and continues for far too long. A sting operation may catch patients, professionals and attorneys working together. People feign injury and are sent to a healthcare professional who will order numerous unnecessary tests and therapies, documenting injuries that don't exist. It's hard to believe, but it is not a rare occurrence. Remember the estimate of between $60-90 billion dollars a year in fraudulent claims?

As a physician this is difficult to write but, D.J. Osborne, who was with the National Insurance Crime Bureau until 1997 reported that, "This recipe is only about making money, not making people better ...The doctors following this recipe use their profession, position in society and our trust, to steal through costly exams, tests and treatments." He calls them "criminals, who happen to be doctors!""

Back and Neck Pain

No other group of symptoms is more vulnerable to unnecessary testing than neck and back pain. Very few people go through life without having episodes of low back and neck pain, but in the vast majority of these cases the pain is secondary to normal aging or a soft tissue injury in the muscles or ligaments -- not due to a herniated disc. This fact doesn't stop an expensive and unnecessary search for a "ruptured" disc, exposing the patient to unnecessary tests, treatments and surgeries.

The doctor should ask, "Will the test I am ordering alter my decision making process and my clinical management of this patient?" Unfortunately, the uninformed or unethical health care professional may proceed with unnecessary testing and in the worst case, surgery. The patient then develops a belief system that they have something much more serious than a self limiting soft tissue injury and they believe that their condition is permanent. Not only has the doctor ordered tests that the patient doesn't need, but he has "given" the patient a disease and a permanent disability. In many cases it isn't the accident that causes the disability, but the manner in which the person is treated by the health care professional.

It's Everyone's Problem

This is not just a problem for insurance companies. The cost trickles down through society and affects anyone who pays an automobile, home owner's or health insurance premium. I am not naïve enough to believe that if we eliminated fraud, insurance companies would reduce all of our premiums and increase physician reimbursement. The cynic in me tells me that corporate profits and CEO pay would increase. However, we do need to protect our patients from unnecessary testing and surgery that detracts from the high ethical standards of the medical professional. We have a responsibility to speak out.

Correction: We previously reported that D.J Osborne was with the National Insurance Crime Bureau. We've been informed that D.J. Osborne has not been associated with the National Insurance Crime Bureau since 1997 and he does not speak for the organization.

 
 
 

Follow Richard C. Senelick, M.D. on Twitter: www.twitter.com/RichardSenelick

Every day, I sit down at my desk and reach for the stack of mail, magazines and "junk." After a while I develop a rhythm where, in one fluid movement, I can extract the slick advertisements and float...
Every day, I sit down at my desk and reach for the stack of mail, magazines and "junk." After a while I develop a rhythm where, in one fluid movement, I can extract the slick advertisements and float...
 
 
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HUFFPOST SUPER USER
T4
Entreprenuer and financial consultant
10:34 AM on 03/03/2011
First, we must develop a clear pucblic understanding that the delivery of medical services is a business not a right and it's certainly not healthcare - it's like a janitor a sanitation engineer whenthere's nothing wrong with being a janitor. The AMA and doctors and have carefully cultivated this myth thhat someone they are not inbusiness buthere for the greater good whiloe keeping the idea that doctors are rich. Great balancing act as if people don;t get that docs, hosps, and rug companies get rich off patients/customers. the sooner we start understanding the nedical services as a business and examinging it's business model to bring into thelkate 20th century the better we will be at lowering costs.
01:59 PM on 03/02/2011
The line between fraud and profit-making--or stupidity--is often a blurry one. For instance, Senelick opens with the example of a promotional brochure trying to persuade him to attend a seminar on how to get more money from worker's compensation. Maybe the techniques being taught are fraudulent--but probably not. Maybe they're comparable to ambulance chasing. Distasteful, perhaps, but not fraudulent. Or maybe they're simply techinques to run a practice more efficiently through better marketing and the use of the proper ICD codes.

Similarly, he cites promotions for "free evaluations" and questions--correctly--how many are told that everything is normal. Setting aside the cases of clear fraud--in which a patient is told that he/she has a true medical issue where none exists--face it: Many of us have some problem or condition that could be corrected or improved. The system, for better or worse, compensates for such interventions. It's no more or less fraudulent than a home inspector, hired by a potential home buyer, finding minor items that occur in most properties--plugs with reversed polarity, evidence of some water leakage somewhere at some time in the past, unchanged furnace filters.

Then there are the cases of patient stupidity--demanding antibiotics for viral infections, for instance. (And the spineless physicians who acquiesce.) Or the "patient belief system" that's shaped by incessent TV commercials for the latest and greatest drug when the patient may not even have the condition.

It's not always fraud.
11:55 AM on 03/02/2011
Great article. Well written about an important topic!
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jimme
They're Right, but never correct.
02:13 AM on 03/02/2011
Only here can you steal billions and then pay some of it back, without admitting guilt, and then become Governor of Florida.
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HUFFPOST SUPER USER
NadineColbert
Fox News is unadulterated fiction
08:23 PM on 03/01/2011
This type of fraud would not happen if we had a system like the UK. Doctors and hospitals would receive a yearly stipend to care for patients with strict limits on "fee for service" so there would be no opportunity for fraud.
10:04 PM on 03/01/2011
It need not be a annual stipend. The essential element is to have a single-payer system, which is what the UK and Canada both use. Although the UK makes use of an annual stipend; Canada's provinces use a different system in which the doctor bills the province.

Any system has the potential for manipulation and fraud. However, with a single-payer system, especially with computerized invoicing and record-keeping, it becomes easier to spot usual billing patterns that may warrant further scrutiny.
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alongst
too often denied to speak
10:36 AM on 03/02/2011
Then why is Medicare fraud so rampant if it's a single payer ?
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HUFFPOST SUPER USER
anytimecowboy
No Marraige Equality, No mcro bio
03:32 PM on 03/01/2011
Give everybody MEDICARE. From birth to death. Case closed problem solved. right now there are too many third party payers and to many loopholes. MEDICARE for ALL!
02:46 PM on 03/01/2011
Great article. Too much money is wasted in the health care system because all the incentives drive unethical behavior.

Also, you spelled "Coalition" wrong in the 4th paragraph.
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stape45
Spin this!
02:12 PM on 03/01/2011
Only the Yacht Club knows for sure.
02:12 PM on 03/01/2011
I worked as a software developer and consultant in the group healthcare industry for more than 20 years. We rooted out providers who were scamming the system, often with the knowing help of their patients. In my experience I found it very difficult to get treatment for real injuries because many providers expected patients to "fake it". I was tboned by a truck running a red light, had 3 fractured vertebrae, 2 compressed disks, multiple bulging disks and damaged dorsal horns from hyper extension. This was before side collisions were well studied and the insurer attorneys insisted that it all must be congenital since side collisions couldn't do that without external body damage. In other words, I wasn't bleeding externally so I couldn't have been damaged in the car wreck. and I had no prior x-rays to prove otherwise, because of course, I had never had a previous problem.. I was suspected of "faking it" I couldn't even get a pain med for the fractures. The only thing given was meprobamate with aspirin in a fancy bi-color layered pill which did nothing. I was ever more denied insurance coverage because off preexisting conditions of these injuries that they said never happened out of the other side of their mouth. After hundreds of thousands of dollars out of pocket and nearly 30 years I was finally accepted at a pain management clinic for treatment of severe intractable chronic pain, after it had pretty much destroyed my life.
01:26 PM on 03/01/2011
If we had a single payer system ( instead of the fragmented one we currently have ) it would be easier to flag suspicious claims. Also the threat of losing your contract with the single payer 3rd party should deter any physicians from doing shady stuff.

that said, perhaps if we (insurers) reimbursed properly... physicians wouldnt feel the need to make up for their losses by billing wrongly. If they feel like the system is against them , they will feel less remorse for cheating the system that cheats them daily.
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alongst
too often denied to speak
12:22 PM on 03/01/2011
Some time ago, I helped Medicare and the Office of the Inspector General shut down a Medicare scam. There were no doctors involved- it was a "physical therapy center" and was run by the Russian Mob. Who were in competition with the Nigerian mob. And both also sold "mobility scooters "under Medicare.
I've also told many a patient that they did NOT have asbestosis after looking at their xrays. "But my lawyer sais I do !" is always their cry and they are upset that they do NOT have it because they are losing their "share " of lawsuit money. Blame ALL the participants- not just the doctors !
HUFFPOST SUPER USER
onionboy
Blessed are the Cheese Makers
11:30 AM on 03/01/2011
We're all responsible.

Doctors who order procedures that won't change their clinical evaluation, patients who insist on getting procedures they want rather than needed, insurance companies who don't investigate because they can just pass losses onto subscribers, attorney who revel in the fees they make while making physicians too paranoid to practice evidence-based medicine...all players.

We have a busted system. The entire system must be overhauled. Move to a single-payer system where (1) physicians are not paid purely "by the procedure", (2) physicians are protected from lawsuits if they adhere to evidence-based practices, (3) patients' desires are balanced against evidence based medicine, (4) those in the best place to investigate fraud are also those with the the most to lose from it.

We need to start acting like grownups when it comes to healthcare, and not children ("I want, I want, I want...").
HUFFPOST SUPER USER
Damiano Iocovozzi MSN NP
03:18 PM on 03/01/2011
Very good comments. Because there are incentives to commit waste, fraud & abuse with a fee-for-service reimbursement scheme, there will always be theft. It's called sales of good & services that are medically futile with no honest medical goal to achieve (do no harm, restoration of health, restoration of function or some function, education about diagnoses & prognoses, relief of symptoms, saving or prolonging a life). These 6 goals of medicine are rarely thought of while treating people, especially if there's money to be made. Ethical decision-making in medicine occurs when the 6 goals are kept in mind vis-a-vis an individual patient. The goals change as the condition worsens, some goals are no longer viable, like restoring health in someone who is nearing the end of his natural life. Pursuing medical protocols to restore health in those past cures, remissions, reprieves from advanced age or dementia are the reason medicine becomes dishonest, dishonorable and futile. Evidence-based medicine also supports the ethical foundation of giving people what they appropriately need, no more & no less. The 6 goals of medicine give medicine & nursing integrity, cost-effectiveness & respect. Waste, fraud & abuse denigrate the professionalism & integrity upon which the public trust is built. Damiano
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HUFFPOST SUPER USER
NadineColbert
Fox News is unadulterated fiction
08:25 PM on 03/01/2011
Onionboy,
A very excellent and practical post F&F
I have enjoyed and learned from many of your posts on many different sites!
10:31 AM on 03/01/2011
Unfortunately there is no way to police this except to have a very draconian 1 strike your out type punishment. You commit Medicare fraud, you immediately lose your license and have no way to get it back. Period. 60 to 90 billion per year can make a big difference in balancing the budget.
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HUFFPOST SUPER USER
NadineColbert
Fox News is unadulterated fiction
08:25 PM on 03/01/2011
Doctors do get fined and sometimes jailed as well as loosing their licences!
HUFFPOST SUPER USER
Damiano Iocovozzi MSN NP
10:09 AM on 03/01/2011
Bingo, Dr. Senelick! The waste, fraud & abuse you mentioned is small compared to what goes on at end of life for those past all cures, all remissions, all reprieves from advanced age or dementia. Visit any US ICU where the majority of patients are in various stages of dying, hooked to machines, respirators, getting all kinds of futile treatments, medicines & surgeries for no honest medical goal: just making money for hospitals, diagnostics, consultations,laboratories, disposibles etc; all an exercise of re-arranging the deck chairs on the Titanic. For those in that subset of patients, the only honest medical goals are relieving pain & suffering, education about diagnoses and doing no harm. These honest goals all can be accomplished on hospice without the billions being robbed from unethical clinicians. Since when is making a fortune on the dying process an honorable goal of medicine? It is dishonorable & a huge charade. Death is a normal process of life- it comes to us all. In my 23 years at the bedside in various roles, I can tell you that this egregious practise of pursuing cure orientations on those who are more burdened than benefitted, and past all cures, is still a crime & goes on every day. Please visit my web page for more about the high price of medical futility in the US http://www.soonerorlaterbook.com
Damiano Iocovozzi MSN FNP CNS, Thomas Edwin Walls Foundation
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HUFFPOST SUPER USER
NadineColbert
Fox News is unadulterated fiction
08:27 PM on 03/01/2011
Manyy times these futile end stage treatments are done at the insistance of patients relatives who have various personal reasons for "doing everything".
HUFFPOST SUPER USER
Damiano Iocovozzi MSN NP
08:50 PM on 03/01/2011
Ms. Colbert, There are many agendas that drive medical futility. If a patient's family is depending on her income, the pursuit of doing "everything" is natural for them as with her death comes an end to the monthly cheque. The USA has a particular stigma for anything in decline, or old, or dying. Many believe that medicine can cure everything & that death is purely optional; just look at all the absurd medical advertising. Many providers also think they have more power than they actually do. All feeds into a notion of entitlement to every medically futile protocol available to service every agenda. The great American medical business machine realises that the only place to make money these days is during the last six months of life, where, the long-term care literature estimates, 1.2 trillion USD are spent per annum on medical futility. Please visit me at soonerorlaterbook.com for a little sanity, compassion & appropriate ideas concerning end of life. Damiano
HUFFPOST SUPER USER
Chas53
09:01 PM on 03/01/2011
Well said. I witnessed this first-hand as a resident and intern, it left with a foul taste in my mouth that lasts to this day. As my preceptor told me as a third year medical student , "life is a fatal disease".
squat6971
59 *was* divine -- 60? not so much
09:51 AM on 03/01/2011
Crooks are crooks, no matter their pedigree