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
    headphones can create health problems
    The Harmful Health Effects of Using Headphones
    September 24, 2021
    Headache causes
    4 Causes Of Headache You Probably Didn’t Know About
    December 28, 2021
    follow these steps to recover from your injury
    What Steps Should You Take to Recover More Quickly from an Injury?
    April 12, 2022
    Latest News
    7 Most Common Healthcare Accreditation Programs: Which Should You Use?
    August 20, 2025
    Hospital Pest Control and the Fight Against Superbugs
    August 20, 2025
    Hygiene Beyond The Clinic: Attention To Overlooked Non-Clinical Spaces
    August 13, 2025
    5 Steps to a Promising Career as a Healthcare Administrator
    August 3, 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
    private
    Private Exchanges: Getting Ready for Individual Health Insurance to Be the Standard
    January 9, 2014
    valueable healthcare programs
    5 Most Valuable Healthcare Programs in 2023
    March 8, 2023
    Johnson & Johnson to Release Clinical Trial Data in Agreement with Yale Medical School
    February 4, 2014
    Latest News
    How Social Security Disability Shapes Access to Care and Everyday Health
    August 22, 2025
    How a DUI Lawyer Can Help When Your Future Health Feels Uncertain
    August 22, 2025
    How One Fall Can Lead to a Long Road of Medical Complications
    August 22, 2025
    How IT and Marketing Teams Can Collaborate to Protect Patient Trust
    July 17, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Hot Spots
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 > Policy & Law > Health Reform > Hot Spots
BusinessHealth Reform

Hot Spots

JohnCGoodman
JohnCGoodman
Share
10 Min Read
SHARE

In any other field, Jeffrey Brenner would be a millionaire. But because he’s in health care, he doesn’t know how he’s going to make ends meet. Like entrepreneurs in every market, Brenner thought outside the box. He discovered an ingenious way of lowering health care costs: focus on the “hot spots” of medicine — the high-utilizing, high spending patients — and solve their problems with unconventional care. As described in a recent New Yorker article by Atul Gawande, Brenner is saving millions of dollars for Medicare and Medicaid. Were others able to replicate his methods, the savings for taxpayers would soar. So how much does Medicare reward Dr. Brenner for all the savings he creates for our nation’s largest health plan? Zip. Zero. Nada. How much does Medicaid pay for all the savings it realizes? Zilch. Zippo. Not a penny. In fact, Brenner is able to do what he does only because of grants from private foundations. I think you can probably guess why there aren’t many Brenners in the health care system. As for Gawande, his writing is nonpareil. I would give him an A on his ability to describe and explain. But he gets a C on understanding economics and an F on understanding ObamaCare. (More on that below)

Hot, Hot, Hot

Here’s what Brenner discovered. In most health care systems, a small number of chronic patients are responsible for a very large share of ongoing costs. For the most part, the health care system isn’t designed for these patients at all. And most things that employers do to try to control costs are not much help either. Take the case of Frank Hendricks (a pseudonym) in Camden, New Jersey:

Hendricks had severe congestive heart failure, chronic asthma, uncontrolled diabetes, hypothyroidism, gout, and a history of smoking and alcohol abuse. He weighed five hundred and sixty pounds. In the previous three years, he had spent as much time in hospitals as out. When Brenner met him, he was in intensive care with a tracheotomy and a feeding tube, having developed septic shock from a gallbladder infection.

Brenner had figured out a few things he could do to help. Some of it was simple doctor stuff. He made sure he followed Hendricks closely enough to recognize when serious problems were emerging. He double-checked that the plans and prescriptions the specialists had made for Hendricks’ many problems actually fit together — and, when they didn’t, he got on the phone to sort things out. He teamed up with a nurse practitioner who could make home visits to check blood-sugar levels and blood pressure, teach Hendricks about what he could do to stay healthy, and make sure he was getting his medications.

More Read

Noisy Hospitals = Patient and Staff Distress
How Hospitals and Other Healthcare Providers Can Boost Employee Morale
6 Low-Cost, Highly Effective Ways to Boost Staff Morale in Your Healthcare Practice
How to Convert More Customers Using Psychology
Why Healthcare Marketers Shouldn’t Only Be Targeting Millennial Patients Online

A lot of what Brenner had to do, though, went beyond the usual doctor stuff. Brenner got a social worker to help Hendricks apply for disability insurance, so that he could leave the chaos of welfare motels, and have access to a consistent set of physicians. The team also pushed him to find sources of stability and value in his life. They got him to return to Alcoholics Anonymous, and, when Brenner found out that he was a devout Christian, he urged him to return to church.

Following on this success, Brenner found that out of the hundred thousand people who used Camden’s medical facilities only a thousand people — just 1% — accounted for 30% of its costs. He then:

Made block-by-block maps of the city, color-coded by the hospital costs of its residents. The two most expensive city blocks were in north Camden, one that had a large nursing home called Abigail House and one that had a low-income housing tower called Northgate II.

[Over 7 ½ years] some nine hundred people in the two buildings accounted for more than four thousand hospital visits and about two hundred million dollars in health-care bills. One patient had three hundred and twenty-four admissions in five years. The most expensive patient cost insurers $3.5 million.

Brenner next formed the Camden Coalition to apply his methods to these patients. The results are impressive:

On its first thirty-six super-utilizers, they averaged sixty-two hospital and E.R. visits per month before joining the program and thirty-seven visits after — a forty-per-cent reduction. Their hospital bills averaged $1.2 million per month before and just over half a million after — a fifty-six-per-cent reduction.

Now for the bad news. Like many other providers of low-cost, high-quality care described at this blog site, Brenner and his colleagues leave tons of money on the table when they fail to practice medicine in conventional ways. There is no CPT code for social work activities — even if it saves the government millions of dollars. Brenner’s attempts to get Medicare and Medicaid to pay him in a different way have all drowned in a bureaucratic morass, even as Medicare is spending millions of dollars on pilot programs and demonstration projects “to find out what works.” And experiences just like Brenner’s are repeated again and again, day in and day out, around the country. No one knows if Brenner’s techniques can be replicated (any more than we know if the medical practices of the Mayo Clinic or the Cleveland Clinic can be replicated). But there’s one way to find out: let Brenner become rich. Rich? Yes, rich. The federal government should offer to let Brenner and his colleagues keep 50 cents of every dollar they save the government. Think that’s wimpy bargaining? Okay, make it 25 cents. Then let every other doctor, nurse, social worker, hospital administrator, etc., in the country know that the federal government is willing to change the way it pays for care. If you can save taxpayers money, you can make money — the more money you save, the more you earn. As we have previously described, let a thousand millionaires bloom. Now back to Gawande. He actually believes that ObamaCare is going to liberate Brenner and people like him. “The new health-reform law — ObamaCare — is betting big on the Brenners of the world,” he writes. Really? I think any objective observer will conclude just the opposite. Rather than freeing doctors, nurses and other providers to find the best ways of providing high-quality, lower-cost care, the whole philosophy behind the Affordable Care Act is one of regulation and control. Gawande himself described it well in an earlier New Yorker essay: doctors must learn to function like engineers, following a script that has been laid out before them — not like entrepreneurs thinking outside the box. Doctors are already being herded into Accountable Care Organizations (ACOs) where the way medicine is practiced will be virtually dictated by a federal bureaucracy. In this new world, someone like Dr. Brenner treating a patient like Hendrick will not stand a chance. Did Brenner have the prescribed electronic medical record? Did he follow the checklist of inputs ACOs are supposed to follow? Did he manage all of the care — including hospital care? The answers are no, no and no. There is simply no place for the Jeffrey Brenners in the world of ObamaCare. When is the last time you heard Barack Obama say he wants entrepreneurs to get rich solving the nation’s most pressing health care problems? When is the last time you heard him say he wants anyone to get rich doing anything? When is the last time you heard him say even a kind word about people who get rich? No? Never? Not even once? Case closed.

Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

engineer fitting prosthetic arm
How Social Security Disability Shapes Access to Care and Everyday Health
Health care
August 20, 2025
a woman explaining the document
How a DUI Lawyer Can Help When Your Future Health Feels Uncertain
Public Health
August 20, 2025
physiotherapist at work
How One Fall Can Lead to a Long Road of Medical Complications
Health care
August 20, 2025
Common Healthcare Accreditation Programs
7 Most Common Healthcare Accreditation Programs: Which Should You Use?
Health News
August 20, 2025

You Might also Like

Wasting Money At the End of Life?

December 17, 2011

John Wooden’s Spirit Alive and Well at MedStar Health

April 13, 2013
BusinessPolicy & Law

Employer Health Insurance Premiums: A Stunning Graphic from Aaron Carroll

November 29, 2011

Business Intelligence and Health Analytics for the Rest of Us

August 23, 2013
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?