How hospice became a for profit hustle
newyorker.com
newyorker.com
Generally, hospice is a hard case -- I'd never put a loved one (and I didn't) through one of the major providers, while smaller hospices have their own issues even if they're well-run, because Medicare/Medicaid reimbursement isn't really sufficient at the small scale (many are non-profit for this reason). I'd like to see more money directed towards hospice while restricting hospice size (such as putting caps on total patient census) to try and reduce the incentives for fraud and gaming the system, but to be honest I don't think there's a good way to fix the problems inherent in the model.
(Also, the government should be a lot more aggressive, and licensing bodies more strict, on penalties against these companies. Yank the medical licenses from medical directors, slam some FTC decrees on named individuals, and put some execs in prison -- rather than, say, letting them go on to get elected to the Senate -- and the risks to medical fraud will start to outweigh the value for a lot of people.)
It's so incredibly depressing how the people at the "top" (the ones running the companies) always manage to skirt any consequences at all for their actions (and no, a fine that is a tiny % of the profit they made is not a consequence). I agree, we need to start sending CEO's and other C-level people to prison, pull their licenses, and not allow them to run companies in the future (or at least for a period of time) to disincentivize this disgusting behavior. And before I hear about how screwed up our prison system is: I know. We need major prison reform but keeping the rich/powerful out of prison does nothing to help that. In fact I'd argue it hurts it, the people who have means to fight against it never have to experience it themselves. Reform is needed but until then it'd sure be nice if we applied the law a little more evenly/equally. I'm not sure how some kid selling weed on a corner can end in prison but an exec that defrauds the government/public for millions/billions can walk away scot-free.
Well, that would expose people who don't want to be exposed, and who conveniently (for themselves) also control the funding of these agencies.
I’ve also got horrific nerve pain that left me for years wishing for death. Doctors constantly refused to give me anything other then occasional 30 day supplies.
Yet at same time they refused to discuss alternative treatments. Even when I would bring them articles and papers and support forums.
Finally I turned to sketchy website to get a fairly common drug LDN. That solved my pain problems which also makes it so that i can’t take opioids.
I still haven’t found an in person doctor that will prescribe it.
But the system is absolutely designed to milk the government for every dollar possible. Basically, how much can we bill for without it crossing the line into fraud.
Perhaps much worse. Is there is zero incentive to reduce cost for treating people.
As an example, we showed that for-profit dialysis facilities in the US have about a 7% higher mortality rate. We did a meta-analysis and every study barring one found higher mortality in for-profit dialysis facilities. Other studies suggest one reason is lower referral rates for kidney transplantation. Higher mortality has also been shown in for profit hospitals.
Your work sounds interesting and enlightening -- I'm not familiar with dialysis facilities clinically or from a business PoV, but I'm curious if they suffer from some of the same incentives issues as hospices, given the significant Medicare/Medicaid spend in that area, and the number of ESRD policy carve-outs.
My stepmother required, hospice, and and the worker was definitely helpful, but also very clinical, and somewhat hurried. There was not very much explanation or opportunity to ask questions. Fortunately, for us a relative, who was a nurse, from a separate side of our family, came for a few days, and was profound source of comfort for my stepmother and all of us.
I haven’t thought about this for a little while, but what I’m struck by is that this is a problem that may never “scale” successfully from either a government or entrepreneurial standpoint. What a family needs are a couple of humans that have been through this before to just sit with them and answer questions and reassure them that everything‘s OK. We’ll never be able to make that cost effective. In the best cases, this was a role historically filled by others in the community, though I imagine throughout a lot of history, it is just been a very difficult experience.
So no, I don't want a scalable solution to hospice care, thanks.
It should be marginally cost optimized in that it should not give in to consultant + contractor + admin bloat driven cost diseases, but worrying about cost "effectiveness" here seems to be defeating the point, as you laid out in your example.
Just raise taxes to compensate - wealth tax, land value tax, capital gains tax, property tax, sin taxes, etc. - all of which help to push money into useful parts of the economy too.
An example they used was the EPA during the ozone crisis. The EPA tried to set something like "we should set maximum allowable ozone to a level where 95% of americans wouldn't be affected" vs the economists at the time arguing they should look at the marginal cost of saving american lives and go for the efficient tradeoff between lives and economic production of more ozone.
How about any aspect of human behaviour that involves people with a difference in economic, health, or educational levels will lead to an exploitative marketplace?
(Edit: ^ that looks like a slippery slope to Marxism which isn't intentional so please be gentle with your feedback)
If you want a counterexample to the idea that healthcare prices are high solely because the demand for healthcare is inelastic, look at dental care. There isn't a lot of government funding for dental care, although it is very much necessary for your overall health. As a result, dental care is comparatively cheap - a full routine cleaning plus a check-up from your dentist (handled by private insurance) costs about the same as a single lab test (handled by medicare/medicaid and private insurance). Serious interventions, like wisdom tooth removal, crowns, or braces, cost only thousands of dollars. By contrast, routine surgeries are often in the tens of thousands.
Similarly, in education, private trade schools tend to cost $10,000/year or so, while private colleges are $50,000-70,000. The economic benefits of a private trade school are actually similar to the benefits of several majors.
Dentistry is also similarly... not as strong as you'd hope. "Do something" behavior is strong in that field with relatively little evidence that the amount of interventions we do is necessary.
Also, we should add that private != for-profit. This applies to both trade schools and colleges - don't go to a for-profit school.
I'm not sure what the distinction between private and for-profit is. Can you elaborate?
In the US, we have 3 kinds of schools:
* Public/state schools: The school is run by a state government. Some of these have good quality, but some are not good. All of them give a huge discount to students from the local state.
* Private for-profit: These usually all suck, and are scams. ITT tech, University of Phoenix, and others are in this boat. These make their money by providing an education for less money than they charge in tuition.
* Private non-profit: The school is organized and run as a non-profit institution, but is not connected to the government. Harvard, MIT, Stanford, and most other top colleges are private non-profits. Outside the US, I think Oxford and Cambridge are also like this. Private non-profit trade schools also exist, and they are usually the best ones. An example I can think of is the North Bennet Street School (again in Boston, MA). The high-end schools in this category tend to get more of their money from donations and endowments than from tuition.
Ok, I thought you had something other than non-profit in mind there. My personal experience with private non-profit schools is less shining, to be honest. The vast majority of their success is typically from heavy selection on who they allow in.
There are also a few actual private universities, some non-profit (e.g. Buckingham, a free-market experiment which has survived but not thrived) and some for-profit (e.g. BPP University). But all of our major institutions are semi-public. Ish.
For example, a central incisor bridge I can't stand cost me $2300 a couple of months ago.
Both countries use the same, non-socialized, out-of-pocket-or-private-insurance model of dental care.
There are not many poor US dentists.
Just a month or two ago here was someone talking about how, fresh out of dental school, they were able to secure a $4M loan to set up their practice.
I am in the midst of having some complex dental work done. In the US, I got three competing quotes. The lowest was $49K, the highest $57K.
I am getting it done in Mexico for $23K. With arguably better equipment used (all 'top shelf' implants, materials, etc.)
I was unable to travel for a few years on account of work, and then COVID, and was seeing the local dentist recommended by my health insurer. They advised me that I needed my wisdom teeth removed. I was skeptical: My wisdom teeth came through in my teens with zero pain. I'm an adult with no tooth pain. When I asked why, the dentist was very vague, and told me it was for the best on account of the long-term likelihood of decay. I wasn't convinced. When I recently saw my extended family's local dentist, they showed me that my local Australian dentist had just left decay to flourish in my wisdom teeth, and not even let me know there were cavities there that were fixable. A quick filling would have saved me lots of hassle. Instead it seems they wanted to encourage me to take a much more costly course of action. In case anyone is wondering, this was an expensive clinic in Sydney's CBD. I'll never return!
But compare Medicare reimbursement rates and private insurer rates, compare outcomes and satisfaction with care between private insurers and Medicare/Medicaid, even within the US: the government is the clear winner despite spending much less. Once you compare across countries this becomes even more obvious.
To be clear, the US government has an infinite wallet.
Where the absurdity of healthcare costs come from, in the US, from my experience as a provider there and in Australia, is the huge information assymetry (ie most people cannot doctor themselves - this is true everywhere) along with, in the US, the need to practice hugely defensive medicine and a drive to add in and bill for as many things as possible. The country is totally fucked (on a healthcare basis at least) because the construction of so many perverse incentives has driven the whole mode of behaviour out of whack
A huge fraction of medical care is just as elective as dental.
What's scary is that these people vote... And they want to get the government out of their medicare.
Is there any fundamental reason the industry is so sketchy? Or just that it's a bit obscure (for young people who might start a business) and highly regulated, so little competition?
Seems like "ripe for disruption" might actually be a good thing here.
This kind of business really should be operated at a reasonable margin (20%?) by ethical, professional, competent operators. Not sure how to get that outcome quickly, but hope it can be solved before my family gets there.
I think you are right about the margin size. It attracts the type of person who will optimize for it at any cost.
[1]https://www.cbsnews.com/news/polands-cash-for-corpses-scanda...
I never saw any fraud and have tremendous respect for the clinicians. It was a bad work environment though because of unrealistic expectations put on the executive directors to grow grow grow. In five years I worked for five executive directors locally, and five CEOs at the national level.
This mindset is just wrong for health care. It should be run as basic infrastructure but not for profit, especially not ever increasing profit.
[0] https://arstechnica.com/science/2022/11/after-renegade-nurse...
They even got 50m of public funds, which they misused to pay contractors.
Looks like the invisible hand doesn't like old people so much
https://www.francetvinfo.fr/societe/prise-en-charge-des-pers...
It was a nightmare fueled by the $15/hour wage in 2011 wages. While the price was right for my needs, ethically I could not sleep at night.
My first night involved:
- Persons unable to cleanse themselves after normal bodily functions
- Several dead persons
- Said dead persons and many others who took the time to edit their living will to reflect me because for the few nights I kept this job, I treated them like human beings needing help
I walked away from this job after a week and lawsuits followed from the bereaved and the business itself because I was named in the living will. From my perspective, these were persons who had no business signing a contract and by any medical definition were not fit to determine a reward in their living will. I am not here to pretend I understand the nuances of law and why such an action was allowed, but after quitting and outright telling my boss I was not up to the mental stress of seeing people die on a nightly basis and waiting for (US) medical services to arrive and literally kick a body around, I ended up with very little faith in the hospice system.
My coworkers openly bragged about the "opportunities" they found for themselves with persons who couldn't even figure out the current date without someone holding their hand and writing the date for them. This was abhorrent to me in ways I don't know how to put into words, but I have images of the nearby dog kennel and such persons taking advantage of the patients.
US hospice is absolutely an under-studied and over-abused factor in US life. To make matters worse, as I understood it from discussions with colleagues, far too many people see the abuses as a necessity or "fair trade" with the alternative being that persons who need hospice rotting in the street.
The irony kills me at a core point that so many people in the training accepted this as a sensible truth instead of being upset that those in need have the choice of total abuse or rotting in the gutter.
I will write that I am sickened by this environment, but sickened doesn't come close to describing the filth and awfulness I felt in such an environment.
The answer starts with "c" and ends with "apitalism". Any other answer is bullshit.
When you have a system like Medicare - that a few terrible people can abuse to extract hundreds of millions of dollars - it's going to happen, whether you have non-profits or for-profits, whether it's government corruption or private corruption.
The problem is setting up a system that doesn't take fraud & corruption into consideration and have a real way of dealing with them - not Capitalism
The difference is that the other one for profit is not considered fraud, it's just working as intended to maximize profit