Monday, January 04, 2010

Mayo Clinic - Obama's Example of Health Care

Well, I knew it was too good to be true. Obama held up Mayo Clinic as the example of how health care was to be managed. Unfortunately, Mayo never reciprocated that same love.

Now comes news that Mayo will be discontinuing Medicare service to some of their Arizona patients due to low reimbursements from Medicare.
Obama in June cited the nonprofit Rochester, Minnesota-based Mayo Clinic and the Cleveland Clinic in Ohio for offering “the highest quality care at costs well below the national norm.” Mayo’s move to drop Medicare patients may be copied by family doctors, some of whom have stopped accepting new patients from the program, said Lori Heim, president of the American Academy of Family Physicians, in a telephone interview yesterday.

“Many physicians have said, ‘I simply cannot afford to keep taking care of Medicare patients,’” said Heim, a family doctor who practices in Laurinburg, North Carolina. “If you truly know your business costs and you are losing money, it doesn’t make sense to do more of it.”


This is what to expect with the new Obamacare. With the Govt paying low-ball prices, you can expect providers to opt out of the program (if they're allowed!!)
The Mayo organization had 3,700 staff physicians and scientists and treated 526,000 patients in 2008. It lost $840 million last year on Medicare, the government’s health program for the disabled and those 65 and older, Mayo spokeswoman Lynn Closway said.

Mayo’s hospital and four clinics in Arizona, including the Glendale facility, lost $120 million on Medicare patients last year, Yardley said. The program’s payments cover about 50 percent of the cost of treating elderly primary-care patients at the Glendale clinic, he said.

“We firmly believe that Medicare needs to be reformed,” Yardley said in a Dec. 23 e-mail. “It has been true for many years that Medicare payments no longer reflect the increasing cost of providing services for patients.”


With the kerfuffle concerning 'Death Panels' by Sarah Palin, few recongize there are panels currently in place. When the money doesn't materialize as expected, there WILL have to be choices. While they may not really be 'Death Panels', you can expect a sharp decrease in quality care as the limited number of current providers either drop out of the Govt program or drop out of medicine all together.
Nationwide, doctors made about 20 percent less for treating Medicare patients than they did caring for privately insured patients in 2007, a payment gap that has remained stable during the last decade, according to a March report by the Medicare Payment Advisory Commission, a panel that advises Congress on Medicare issues. Congress last week postponed for two months a 21.5 percent cut in Medicare reimbursements for doctors.

[...]
Medicare covered an estimated 45 million Americans at the end of 2008, according to the Centers for Medicare & Medicaid Services, the agency in charge of the programs. While 92 percent of U.S. family doctors participate in Medicare, only 73 percent of those are accepting new patients under the program, said Heim of the national physicians’ group, citing surveys by the Leawood, Kansas-based organization.

Greater access to primary care is a goal of the broad overhaul supported by Obama that would provide health insurance to about 31 million more Americans. More family doctors are needed to help reduce medical costs by encouraging prevention and early treatment, Obama said in a June 15 speech to the American Medical Association meeting in Chicago.


This is only the beginning of the restructuring of health care in America. While we never liked our insurance carriers, at least we received the highest quality of care in the world. Obama and Congress really missed the opportunity for real reform. Transportability, pre-existing conditions, tort reform and anti-trust would have met most of America's expectations of Reform.

What we received instead was a Govt mandate to purchase insurance (from private corporations!) with massive cost increases via taxes on existing plans as well as taxes on services. Remember, never let a crisis go to waste...


Peace

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