Keywords - Physicians, fee-for-service, accountable care organizatins, Medicare, savings, independent payment advisory board, physician payment
Alain Enthoven and Alan Glaseroff, “Bringing Medicine into the Twenty-First Century,” Health Affairs Blog, August 20, 2012
These fees often bear little relationship between physician time and skills needed to get the work done. Medicaid now pays on average 56% of private health plan fees and Medicare 81% of these fees.
“The point is that physicians rarely set their own fees. The money reimbursed to them for services may have little or no relation to their cost of doing businesses. What can be more aggravating is that sometimes third parties also dictate what physicians can or can’t do for their patients, by declining to pay for services physicians may believe their patients need.”
“This is not the environment most of us work in. There is no “third party” barrier between the lawyer, the accountant, the computer programmer, the plumber, the mechanic and his or her coolants. They all set a fee, perform a service, and are paid directly by the person for whom they did the work.
“It would be no surprise, under these conditions, plumbers became a generally cranky group – especially if they had to complete 11 to 15 years of post-college training to become plumbers.”