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
    Cognitive Psychology and Risk-taking in Extreme Sports
    Theodore Rex Walrond Highlights the Connection between Cognitive Psychology and Healthcare
    April 1, 2025
    stress management for healthcare workers
    3 Tips For Healthcare Professionals: How To Stay Beautiful, Healthy, and Happy
    November 2, 2021
    importance of relaxing on the weekend for your health
    Importance of Relaxing During the Weekend for Optimal Health
    March 25, 2022
    Latest News
    Beyond Nutrition: Everyday Foods That Support Whole-Body Health
    June 15, 2025
    The Wide-Ranging Benefits of Magnesium Supplements
    June 11, 2025
    The Best Home Remedies for Migraines
    June 5, 2025
    The Hidden Impact Of Stress On Your Body’s Alignment And Balance
    May 22, 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
    Image
    Person-Centered HealthCare: The FDA Gets Patient-Centric
    May 31, 2013
    Does the Supreme Court Understand Health Reform?
    April 12, 2012
    Racial Health Disparities Among People with Chronic Conditions in the US: Facts and Statistics
    July 25, 2013
    Latest News
    Top HIPAA-Compliant Messaging Apps for Healthcare Teams
    June 25, 2025
    When Healthcare Ends, the Legal Process Begins: What Families Should Know About Probate and Medical Estates
    June 20, 2025
    Preventing Contamination In Healthcare Facilities Starts With Hygiene
    June 15, 2025
    Strengthening Healthcare Systems Through Clinical and Administrative Career Development
    June 13, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: We Ask Physicians to Lower Cost, Then Penalize Their Innovation
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 > We Ask Physicians to Lower Cost, Then Penalize Their Innovation
BusinessFinanceHospital AdministrationMedical Innovations

We Ask Physicians to Lower Cost, Then Penalize Their Innovation

tkilpatrick
Last updated: February 10, 2014 9:00 am
tkilpatrick
Share
5 Min Read
SHARE

physician innovationWe penalize efficient physicians that leverage innovation, then we cut their reimbursement to control healthcare costs (even more if Sustainable Growth Rates were implemented). How has that been working out for us? If the definition of frustrate is “to prevent from accomplishing a purpose or fulfilling a desire”, it is no wonder so many physicians are frustrated.

physician innovationWe penalize efficient physicians that leverage innovation, then we cut their reimbursement to control healthcare costs (even more if Sustainable Growth Rates were implemented). How has that been working out for us? If the definition of frustrate is “to prevent from accomplishing a purpose or fulfilling a desire”, it is no wonder so many physicians are frustrated.

If a physician does a really good job responding to your emails or texts (assuming encryption), they could help prevent a condition from becoming acute.  If a physician calls or Skypes you to triage an acute situation, it may prevent an unnecessary 3AM emergency room visit. If a physician reviews your smart phone app data from your Wi-Fi enabled weight scale and smart phone ECG, they may identify a heart attack coming.

Yet if an innovative physician does this, it would likely be as a hobby rather than as a profession. They would be working more hours, their offices would have less patients and they would likely be out of business quickly.

More Read

Physician Marketing humanizing
Making a Connection: How to Humanize Physician Marketing
Mayo (Clinic): The Secret Sauce To Better Care
The Disturbing Confessions of a Medical Scribe: Adding to the Bill
What Is HIPAA Compliant Hosting?
Stents for Stroke Prevention A Risky Proposition

Electronic communications, remote triage and reviewing patient generated data can help lower cost, yet physicians mostly do not get paid for this. Not only do they not get paid, they would reduce their income source – office visits. For some physicians, it is the only way they get paid.

How do physicians get paid?

Physicians are mostly paid today based on a payment system used by Medicare that was first implemented in 1992.  It is based on a Relative Value Units (RVUs) calculation for the cost for the physician to provide a service (average 52% physician work, 44% practice expenses and 4% malpractice insurance).  The Medicare fee schedule has each of physician services that receive reimbursement. Most private insurance companies use the Medicare fee schedule as the foundation before adding negotiated rates and utilization management provisions. Whether a physician is independent or a salaried employee of a large organization, this is how physician services generate revenue and is the primary basis for most of their income.

What is missing from the Medicare fee schedule is paying physicians to respond to emails or texts, triaging an acute condition or reviewing patient data.  The fee schedule was established before the Web, when email required a modem and when cell phones required a carrying case.

To improve the efficiency and effectiveness of healthcare delivery, a modernized physician fee schedule and compensation strategy is critical. It must include Physicians getting reimbursed for electronic communications, reviews of electronic patient data, researching patient specific issues, annotating electronic medical records, collaborating with other physicians and eVisits (via video conferencing).  There would be an electronic record of each of these actions, so the reimbursement for these type services could be almost automatic.

The new performance reimbursement programs (See 8 Performance Programs That Will Change Healthcare) tied to overall patient outcomes will help drive this transition.  Yet not having a modem physician reimbursement system or compensation strategy could prevent these programs from reaching their full potential.  If the at risk entity is reimbursed based on performance and the physician is reimbursed based on in-office patient visits (Medicare Fee Schedule), we would not fully benefit from physician innovation.

Physician use of innovation will not replace the physician office visit, just like the ATM didn’t replace banks.  Yet it is hard to know the impact physician innovation could have on effectiveness and efficiency of healthcare delivery if we penalize them for using technology that was developed after 1992. We need insight into the impact this could have in lowering healthcare costs, improve outcomes and retaining talented physicians.

(physician innovation / shutterstock)

Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

women dental care
What Is a Smile Makeover and How Much Does It Cost?
Dental health
June 30, 2025
HIPAA-Compliant Messaging Apps
Top HIPAA-Compliant Messaging Apps for Healthcare Teams
Global Healthcare Policy & Law Technology
June 25, 2025
recovering from injury
Rebuilding After Injury: Path to Physical and Emotional Recovery
News
June 22, 2025
scientist using microscope
When Healthcare Ends, the Legal Process Begins: What Families Should Know About Probate and Medical Estates
Global Healthcare
June 18, 2025

You Might also Like

Image
BusinessNews

Sorry Works! Helping Healthcare Handle Crises

June 6, 2012

Innovating Healthcare System Strategy: Creating the Commercial ACO

September 30, 2012
introducing digital marketing to physicians
BusinesseHealth

4 Tactics for Easing Physicians into the Age of Digital Marketing

June 2, 2014

Strong Deal Flow in Digital Health Defines 1H’14

July 1, 2014
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?