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Robert E. Litan

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Ending Health Care Pinball

Posted: 04/19/2012 9:44 am

Right now, the debate over American health policy is understandably focused on the Affordable Care Act -- and the possibility that the Supreme Court might overturn it.

The legal and political uncertainties surrounding the health care law seem to have paralyzed our efforts to rein in the runaway growth of health costs and improve the quality of care. The end-users of our health care system -- patients -- will pay the price for policymakers' dithering.

Patients today are like pinballs. Those seeking treatment bounce through a complex series of obstacles while the players in the system -- insurers, doctors, and hospitals -- rack up costs rather than points.

That needs to change. Instead of pinballs, patients need to be players -- empowered with more information, more options and more control over their care.

Of course, the pinball effect is sometimes unavoidable. In emergencies, for instance, patients aren't really equipped to make informed decisions about their care. In these cases, doctors really do know best.

But patients frequently have decisions to make. About a third of health care is preference -- sensitive or elective. In other words, patients choose what sort of treatment to pursue -- or in some cases, whether to pursue treatment at all.

Early-stage prostate cancer is one example. These patients can currently select from at least four possible courses of treatment.

The story is similar for women with early-stage breast cancer. A patient can have her entire breast removed in a mastectomy. Or she might choose to have a lumpectomy -- an invasive surgical procedure that removes only the tumor -- and then proceed with post-surgical radiation therapy. The clinical evidence on both procedures indicates that they are equally effective -- that they give women the same chance of survival. The difference, then, is the impact on each woman's life and well-being -- how she feels about what's required to go through each treatment.

But how are those choices made? Too often, patients simply leave decisions to their doctors and end up pinballing through the health care system. That framework has yielded trends in treatment protocols that vary widely across the country for no apparent reason other than individual doctors' preferences.

Research shows that doctors tend to emphasize the benefits of surgery, for instance, and downplay its risks. By abdicating their decision-making responsibilities, patients may end up undergoing treatment plans that align with their doctors' interests -- but perhaps not their own.

What we need is a new system -- one that relies on shared decision making.

This calls for patients to take an entrepreneurial approach to their health care -- to take charge of the business of their health by demanding access to additional information. Doctors also will need to take initiative by providing patients with options rather than orders -- and then helping them weigh the relative merits of those options.

Patients taking greater control over their care is a worthwhile end unto itself. But empowerment strategies can produce real results, too.

Better-informed patients are better decision makers. Studies have found that "patient decision aids" -- which can include everything from DVD guides to questionnaires -- improve knowledge of health care choices, increase the proportion of patients with realistic perceptions of benefits and harms and lower decisional conflict. They also reduce the number of patients passively involved in decision making or undecided after counseling.

Better information has produced better results -- at lower cost. Patients given decision aids were 20 percent less likely, on average, to choose more invasive options -- with medical outcomes that were just as good.

Decision aids are growing more and more common. Since 1997, their use has increased roughly one-hundredfold. And shared decision making is becoming de rigueur in states from Washington to Maine.

Still, there are additional savings to be realized. The Lewin Group, a health care consultancy, estimated in 2009 that fully implementing shared decision-making in the Medicare population for 11 conditions that could be treated with surgery could save Medicare $50 billion over a decade.

Patients need incentives and information to make cost-effective health care choices. Raising co-payments might give patients reason to look for better value, but what they need most to make smart decisions is information about the underlying costs of treatments and the relative effectiveness of medical care.

Patients taking charge of their health care choices, like business owners take charge of their companies, will not in and of itself solve the entire magnitude of our nation's health-cost crisis, but it is one essential component. If even a fraction of America's 300 million patients turned into entrepreneurial patients -- making informed decisions, sharing in productivity gains, and taking ownership of their care -- the health care system would experience a tsunami of cost savings and quality care would skyrocket.

Robert Litan is vice president for Research and Policy at the Kauffman Foundation. Litan co-edited a report released today titled, "Valuing Health Care: Improving Productivity and Quality."

 
 
 
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Right now, the debate over American health policy is understandably focused on the Affordable Care Act -- and the possibility that the Supreme Court might overturn it. The legal and political uncerta...
Right now, the debate over American health policy is understandably focused on the Affordable Care Act -- and the possibility that the Supreme Court might overturn it. The legal and political uncerta...
 
 
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03:43 PM on 04/20/2012
Great post Robert. The Informed Medical Decisions Foundation has been developing decision aids and promoting evidence-based shared decision making for over two decades. The Foundation's website has a ton of great resources for doctors, researchers, policy makers and patients. The Foundation funds a number of shared decision making demonstration sites (i.e., clinical practices that use decision aids as part of routine care) across the country. Readers who are interested in learning more about the science behind shared decision making and how decisions aids are developed, use, and tested can benefit by checking out the Foundations' website at www.informedmedicaldecisions.org (full disclosure I'm their communications director)
08:36 AM on 04/20/2012
Patients have had less control over their healthcare decisions in this country because the system has so many layers and is so complicated, they don't know how it works. Plus for years most of us were in managed care plans, and never understood or even felt the need to read our bills, because we paid a flat fee.

But in this healthcare environment, with costs climbing so out of reach for the average family, I can't imagine how anyone could argue against the educating the American patient about how their healthcare system works and what their choices are.

At www.healthcarebluebook.com (a free consumer pricing guide) we want consumers to pay a fair price for care, but in order to do so, they must have access to pricing and medical data which explains not just the cost of what their physician suggests, but also potential alternative forms of care, all the associated costs that come with a procedure, and options for where to have tests performed.

Without that, we'll all just keep spending more and more money on care and prices will continue to climb.
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Craig Casey
Nobamacare! Entitlements & taxes must be cut.
12:44 AM on 04/20/2012
Great points Jerry, Insurance is a poor model for healthcare. Insurance is used against unexpected loss, yet Obamacare mandates everyone buy insurance, taking healthcare in the exact wrong direction.
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Craig Casey
Nobamacare! Entitlements & taxes must be cut.
12:34 AM on 04/20/2012
Robert Litain is on the right track but he does not cross the finish line with the obvious answer: Direct pay. That will give patients an entrepreneurial approach to their health care. Government involvement adds regulations, costs and raises premiums, and is the proven non answer. PRIVATIZE!
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Luman Walter
Once arrested for juggling.
01:39 PM on 04/19/2012
And if only millions of Americans would stop voting against their own interest, freedom and lives based on fear and ignorance. But that ain't gonna happen so we simply need to expand Medicare to cover everyone with a social security number and pay for this human right by taking away the Military Industrial Complex's welfare entitlement. But that ain't gonna happen either; is it?
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Craig Casey
Nobamacare! Entitlements & taxes must be cut.
12:36 AM on 04/20/2012
Obama is already using Obamacare to expand Medicaid. Now you want Medicare expanded as well, when both are broke? Some people need to take a basic accounting court or at least unified math.
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wikwox
So there I was, playing the piano....
12:40 PM on 04/19/2012
Sounds good but it's based on a fantasy that patients will make the right decision or even want to. Healthcare costs double in this country compared to the rest of the industrialised world and patients not choosing the cheapest treatment is not the reason why. The primary reason is that healthcare providers and helathcare insurance are out to make a profit at all costs, the more the better. By all means be informed and involved in your healthcare, assuming you have any, but its not going to change the fundamental problem in American healthcare costs.
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Craig Casey
Nobamacare! Entitlements & taxes must be cut.
12:38 AM on 04/20/2012
Which one is it? Are patients not choosing the cheapest treatment or is health insurance out to make a profit at all costs? Because if they were, patients would have to choosing the cheapest treatment.
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Gestas
Mountain Man
11:43 AM on 04/19/2012
Just cleaned up the last of the bills from my Wifes Knee Replacement...Unless there is still some little ones out there....The Total is roughly $100,000....Fear the Future...
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Craig Casey
Nobamacare! Entitlements & taxes must be cut.
12:39 AM on 04/20/2012
And until there is direct pay, those cost will continue to go up again, 9% projected in 2012. Thanks Obamacare!
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DoubleYellowLines
Left of the Right, and Right of the Left
11:19 AM on 04/19/2012
#1 - Doctors are not gods. Get that out of your head - they are very skilled and knowledgeable, but not omnipotent nor omniscient.

#2 - Medical decision-making by paitents is severly hampered by lack of common-language tools. The internet is your friend, but only if you look to reputable sources for information (i.e. WebMD vs some random website).

#3 - Own it. It's your body - if you don't understand something, make the doctor explain it again until you do. You are the one paying for the service! Take as much time as you need - and a good doctor will be patient with a patient to help out.

#4 - Just because you've had this same doctor since you were 12, it doesn't mean that he's the best at whatever issue you have - nor is his golfing buddy. A second opinion on a big ticket item is ALWAYS worth the extra copay.
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Craig Casey
Nobamacare! Entitlements & taxes must be cut.
12:41 AM on 04/20/2012
Good points except for the #3 You are the one paying for the service! Not really. Medical bills are not exactly transparent. And premiums will go up over time as obamacare continues to mandate more freebies.
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DoubleYellowLines
Left of the Right, and Right of the Left
08:04 AM on 04/20/2012
I disagree on the medical bills - there are some incredible solutions for health care being funded under the ACA, and you'll see those items rolling out in the next few years (if the SCOTUS doesn't kill it). And you CAN get every bit of information that you want or need - and you should. Ask for an itemized bill of any service (including a hospital stay) and question anything that doesn't look right. It's really not that hard to understand when you have the data.
11:13 AM on 04/19/2012
The only way to put patients in control of decisions to be made about their bodies is to make them fully responsible for paying for their treatments. People only have control over a financial transaction when they are paying. When others are paying, others make the important decisions. The only health insurance (either public or private) that should exist is insurance for the catastrophic costs associated with rare events.
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debblack
Rn Case Manager-mother-grandmother-daughter
12:25 PM on 04/19/2012
Yes, what we really need is death camps for the poor and middle class.
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wikwox
So there I was, playing the piano....
12:41 PM on 04/19/2012
Great, you go first, the politicians second.