Alice in Medical Care: Part IV

BY THOMAS SOWELL

altSome years ago, one of my favorite doctors retired. On my last visit to his office, he took some time to explain to me why he was retiring early and in good health.

Being a doctor was becoming more of a hassle as the years went by, he said, and also less fulfilling. It was becoming more of a hassle because of the increasing paperwork, and it was less fulfilling because of the way patients came to him.

He was currently being asked to Xerox lots of records from his files, in order to be reimbursed for another patient he was treating. He said it just wasn't worth it. Whoever was paying-- it might have been an insurance company or the government-- would either pay him or not, he said, but he wasn't going to jump through all those hoops.

My doctor said that doctor-patient relationships were not the same as they had been when he entered the profession. Back then, people came to him because someone had recommended him to them, but now increasing numbers of people were sent to him because they had some group insurance plan that included his group.

He said that the mutual confidence that was part of the doctor-patient relationship was not the same with people who came to his office only because his name was on some list of eligible physicians.

The loss of one doctor-- even a very good doctor-- may not seem very important in the grand scheme of heady medical care "reform" and glittering phrases about "universal health care." But making the medical profession more of a hassle for doctors risks losing more doctors, while increasing the demand for treatment.

A study published in the November 2009 issue of the Journal of Law & Economics showed that a rise in the cost of medical liability insurance led to more reductions of hours of medical service supplied by older doctors than among younger doctors.

Younger doctors, more recently out of medical school and often with huge debts to pay off for the cost of that expensive training, may have no choice but to continue working as hard as possible to try to recoup that huge investment of money and time.

Younger doctors will probably continue working, even if bureaucrats load them down with increasing amounts of paperwork and the government continues to lower reimbursements for Medicare, Medicaid and-- heaven help us-- the new proposed "universal health care" legislation that is supposed to "bring down the cost of medical care."

The confusion between lowering costs and refusing to pay the costs can have a real impact on the supply of doctors. The real costs of medical care include both the financial conditions and the working conditions that will insure a continuing supply of both the quantity and the quality of doctors required to maintain medical care standards for a growing number of patients.

Although younger doctors may be trapped in a profession that some of them might not have entered if they had known in advance what all its pluses and minuses would turn out to be, there are two other important groups who are in a position to decide whether or not it is worth it.

Those who are old enough to have paid off their medical school debts long ago, and successful enough that they can afford to retire early, or to take jobs as medical consultants, can opt out of the whole elaborate third-party payment system and its problems. What the rising costs of medical liability insurance has already done for some, other hassles that bureaucracies and politicians create can have the same effect for others.

There is another group that doesn't have to put up with these hassles. These are young people who have reached the stage in their lives when they are choosing which profession to enter, and weighing the pluses and minuses before making their decisions.

Some of these young people might prefer becoming a doctor, other things being equal. But the heady schemes of government-controlled medicine, and the ever more bloated bureaucracies that these heady schemes will require, can make it very unlikely that other things will be equal in the medical profession.

Paying doctors less and hassling them more may be some people's idea of "lowering the cost of medical care," but it is instead refusing to pay the costs-- and taking the consequences.


Thomas Sowell is a senior fellow at the Hoover Institution, Stanford University, Stanford, CA 94305. His Web site is www.tsowell.com.

Comments (3)Add Comment
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written by Peter Leathard, March 06, 2010
Health care accessibility, health insurance and government run programs such as Medicare do need some improving. Most of us agree that all Americans should have access to quality care. The unfortunate should be taken care of by the more fortunate.
Unfortunately the present health approach in Congress is not about making improvements but it is all about winning politically. It is also not about having everyone participate in the cost it is about taking from the haves and giving to the have nots. It is not about lowering cost by cleaning up the tort laws, administrative inefficiencies and the cost burdens forced on hospitals. It's about winning politically.
The pitch that is bantered by the Administration is to give 31 million Americans health insurance and with slight of hand tell everyone it is actually going to save money.
It is the right and noble cause to ensure all Americans have access to reasonable health care at reasonable cost but this circus in Washington D.C. has long ago lost this objective and it is showing the dirty underwear of our political system to the world. It is the Chicago style politics in action that not long ago had the disdain of most Americans.
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written by Dave Rees, March 07, 2010
The underlying issue is that the government has not shown that it can provide healthcare fairly and efficiently. Even though Medicare is touted, and for those of us over 65 the primary option, it is a system that undercompensates with onerous penalty-laden reporting requirements that burdens a doctor's office administration. I was just "fired" by a long-time physician whose office has opted out of the program. So much for the medicare system revamp that is proposed and "will allow us to keep our doctor"!! The only way I can do that is to contract directly with the doctor and agree not to submit charges to Medicare... for which I am paying over $200 a month in addition to retirement insurance premiums (secondary).
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written by Peter Leathard, March 08, 2010
In my opinion the insurance companies are cooperating with Obama to help pass his Bill. If they did not want this to happen then why NOW all across the country are insurance companies raising rates. This is giving Obama a platform to get the public on his side. The insurance companies are not fools. They understand the effect. It is obvious they have figured out how they are going to prosper. Obama is making all sorts of tough rederick. But remember, it is not what he says now but what happens a year from now. That is his style.

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