By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    An Expert’s Guide To Building and Improving Endurance
    June 30, 2022
    medical assistants
    What Do Medical Assistants Do On a Day to Day Basis?
    April 5, 2022
    superfoods to help with prostate health
    10 Healthy Foods That Can Help Protect Your Prostate
    August 29, 2022
    Latest News
    Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
    May 16, 2025
    Learn how to Renew your Medical Card in West Virginia
    May 16, 2025
    Choosing the Right Supplement Manufacturer for Your Brand
    May 1, 2025
    Engineering Temporary Hospitals for Extreme Weather
    April 24, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    Recognizing When You Are Enabling A Person Struggling with Addiction
    February 5, 2021
    Contraception for Techno-Doctors
    July 13, 2011
    ACP Ethics Manual on Social Media, Catastrophes, and More
    January 13, 2012
    Latest News
    The Critical Role of Healthcare in Personal Injury Recovery: A Comprehensive Guide for Victims
    May 14, 2025
    The Backbone of Successful Trials: Clinical Data Management
    April 28, 2025
    Advancing Your Healthcare Career through Education and Specialization
    April 16, 2025
    Do Abuse Reporting Systems in Assisted Living Protect Residents’ Health?
    April 15, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Fee-for-Service Again
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Finance > Fee-for-Service Again
BusinessFinanceHospital AdministrationPolicy & Law

Fee-for-Service Again

Greg Scandlen
Last updated: July 17, 2013 8:11 am
Greg Scandlen
Share
5 Min Read
Fee-for-service care
SHARE

Fee-for-service careUSA Today asked me to write a counterpoint to their editorial calling for the abolition of Fee-For-Service payment in health care.

Fee-for-service careUSA Today asked me to write a counterpoint to their editorial calling for the abolition of Fee-For-Service payment in health care. Their editorial is here, and my counter is here.

Unfortunately, USA Today did not show me the article I was responding to. Now that I have read it, I want to make a few other observations.

First, the paper thinks that putting physicians on salary would curb the problem of overtreatment. Yes, it might do that, and replace one problem with another — under treatment. Physicians might become clock-watchers, punching in at 9:00 and out at 5:00, regardless of patient need. While on the clock, they might slow-walk their services. After all, why hurry when you get the same pay regardless of how much work you do? Even factories have long figured this one out, preferring to pay piecework instead of flat wages.

More Read

Medicare Underpays Physicians Locally
ALS TDI -The First Non Profit Biotech, A Hidden Investment Opportunity?
Response to ONC RFI on Advancing Interoperability of EHRs and HIE
Watch Your Back! Surprise Medical Bills May Await
The Health Benefits Of Yoga That May Change Your Life

But USA Today sees a more insidious problem in health care. It believes some physicians are “greedy, incompetent, and crooked.” No doubt that is true. I expect some newspaper editors are also “greedy, incompetent, and crooked.” Does placing doctors on salary solve that problem? No, it would actually worsen it for at least a couple of reasons. First, the physician would no longer be responsible for securing and paying for his own malpractice insurance. He would be covered by an enterprise-wide policy that minimizes his own culpability. Second, greedy, incompetent and crooked employees are very good at hiding in a big bureaucracy. They can always find someone else to blame for their own misdeeds and be shielded by workplace rules. Have you noticed how hard it has been to fire Lois Lerner from the IRS?

The paper says, “Ideally, doctors do no more than a patient needs.” Well, yes. But it is often hard to tell in advance what is “more than a patient needs,” and if doing “no more than needed” is the imperative, we might often end up doing less than the patient needs, with tragic consequences. If we place a ceiling on what the doctor does, if we punish him for doing more, he may err on the side of caution and often do less.

The paper also wants us to “encourage second opinions.” Good grief. Getting second opinions has been touted as a panacea for at least the last 30 years. Most of the research I have seen says that the second opinion almost always confirms the first opinion, but adds to costs because the second opinion is not cheap. That does not mean second opinions shouldn’t be done. Individual patients will be comforted if the first is confirmed or may change her mind if it is counter to the first. But there is no guarantee that the second opinion will be more valid than the first, and if the two conflict it may be necessary to get a third.

Finally, the paper says something I can agree with –

…[O]ne of the most effective ways to cut down on unnecessary operations is for doctors to share the decision-making with their patients by pointing out alternatives…

Yes, indeed. But it helps if the patient is holding the checkbook during that conversation. That is the only equalizer the patient has when negotiating with the doctor. The doctor can explain the advantages and disadvantages of each alternative, and what the costs will be! And the patient can then make a fully-informed decision. But that implies something USA Today has been railing against — a system in which fees reflect the services provided.  Otherwise, in a salaried system, the doctor will be advocating for the easiest, cheapest alternative and the patient will be suspicious of the recommendation and push for the most complicated and costly choice.

There is simply no substitute for a fee-for-service system in which the patient pays.

(Fee-for-service care / shutterstock)

TAGGED:fee for service
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
Health
May 15, 2025
Learn how to Renew your Medical Card in West Virginia
Learn how to Renew your Medical Card in West Virginia
Health
May 15, 2025
Dr. Klaus Rentrop Shares Acute Myocardial Infarction heart treatment
Dr. Klaus Rentrop Shares Acute Myocardial Infarction
Cardiology
May 13, 2025
The Critical Role of Healthcare in Personal Injury Recovery: A Comprehensive Guide for Victims
The Critical Role of Healthcare in Personal Injury Recovery: A Comprehensive Guide for Victims
Health care
May 13, 2025

You Might also Like

CEO and Founder of French Breast Implant Company Wanted by Interpol

December 25, 2011

Obama, Ryan and You

May 2, 2011

Can the Gang of Six Change the Way We Pay For Health Care?

July 20, 2011
BusinesseHealth

How Does Your Medical Organization Handle Negative Feedback?

November 14, 2016
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?