Archive for March, 2010

The pleasures of medicine; or not.

Sunday, March 7th, 2010

UPDATE: Nearly half of all physicians plan to quit if Obamacare passes. Many will phase out but it will be a disaster. I’m sure Obama has plans to fix it.

I have been a physician for almost 44 years. I graduated from medical school in 1966 and finished my residency training as a surgeon in 1972. Since I began medical school in 1962 (For the second time but that’s another story), I spent ten years learning to do what I did until I retired from surgery in 1994 after back surgery. I have gone on doing medical things since then but I had to give up surgery. The 27 years I spent as a surgeon (including my training) were the best years of my life. Had I not injured my back in college, I would still be practicing, even at 72. The early years of my career as a surgeon were the golden age of medicine in this country. We still could not cure some diseases and we especially were limited in our ability to deal with infection in some cases but the life of a physician or a surgeon was the best it would ever be.

About 1987, things really began to change for the worse. Some of it was the fault of the profession, some the fault of politics and some the fault of human nature. In 1978, the first political reaction to the rapid growth in the cost of medicine appeared. It was called PSRO, or Professional Standards Review Organization. Of course, it had little relationship to professional standards and everything to do with cost. We all had to participate like some Red Guards self examination in Mao’s China. We learned how to analyze care for what were purportedly quality issues but we all immediately recognized as cost. All the doctors of the hospital staff had to attend these classes and learn how to do this. Then we had to “volunteer” for committees to review cases to see if they met the standards. The standards always seemed to focus on cost issues, such as length of stay. Length of stay is an American obsession. A few years after this first experience with self examination, we began to have demands from Medicare and insurance companies for AM admissions before surgery.

AM admission is one of the examples of the lunatic aspect of government intervention in medicine. People who were to have major operations were expected to get up at 4 AM the day of surgery and come to the hospital at 5:00 for a 7:30 surgery. They were given instructions about not eating or drinking after midnight or whatever. Why not just have them come in at 6 PM the night before and be prepared then. ? They would sleep better with a sleeping pill, we would know for sure that they hadn’t had a late snack in spite of instructions and the hospital staff would know they were there, ready for surgery.

When this began, I asked what I thought was a logical question. Why are we doing this ? Cost, I was told. Why charge for the admission day before surgery? We could just make that a free day since the patients came in after 3 PM anyway. Nobody ever answered. The hospital had to add staff for the early morning shift. Sometimes a patient would not show up or arrive too late for their 7:30 case. Then we would scramble around to see if the next patient could come in early instead of the 10 o’clock they had been told. The schedule would be shifted around and the charge nurse would call the next surgeon to see if he could come in early, only to find he was doing surgery in another hospital at that time. I was sure, and still am, that the costs were no different and the aggravation and even the danger was increased for no good reason. It’s a bit like the Army. “Why are we doing this sir?” “Because I said so !” “Thank you sir.” A stint in the Army is helpful in understanding how government works.

That was the beginning. Next came calling the insurance company for permission to do surgery. In 1987 came the new way of being paid for care. It was called Resource Based Relative Value Scale, or RBRVS. A Harvard professor came up with a new way to pay for care. The methodology was supposed to account for the value of inputs in determining what Medicare (and quickly all insurance companies followed suit) would pay. It is related to the “Labor Theory of Value.” If you follow the link, you will see who thought this up. The original Relative Value System was developed by the California Medical Association in the 1930s. It was constructed by doctors to rate services, relative to each other, on what the price should be. I have previously covered some of this in a post on “How we got here.” Now, we have arrived at a system that is so onerous and counterintuitive that doctors have lost a lot of the pleasure of private practice. As usual, Thomas Sowell has something to say about it that concisely summarizes the foolishness of the present situation. If that is not enough, there are numerous examples of what government medicine eventually looks like. If you remove the pleasure, pretty soon everyone turns into the DMV or the Post Office employee. I mean no insult to those people but psychology has rules about behavior. Read the Thomas Sowell article. He always has something worth while to say. This is even better than most.

Sayonara Senator Bunning

Thursday, March 4th, 2010

UPDATE: This takedown of Paul Krugman is hilarious. He attacks Bunning and is show to be an incredible phony.

Krugman:

Today, Democrats and Republicans live in different universes, both intellectually and morally.
“What Democrats believe,” he says “is what textbook economics says” But that’s not how Republicans see it. Here’s what Senator Jon Kyl of Arizona, the second-ranking Republican in the Senate, had to say when defending Mr. Bunning’s position (although not joining his blockade): “unemployment relief “doesn’t create new jobs. In fact, if anything, continuing to pay people unemployment compensation is a disincentive for them to seek new work.”

Krugman scoffs: “To me, that’s a bizarre point of view–but then, I don’t live in Mr. Kyl’s universe.”

Taranto:

What does textbook economics have to say about this question? Here is a passage from a textbook called “Macroeconomics”:

“Public policy designed to help workers who lose their jobs can lead to structural unemployment as an unintended side effect. . . . In other countries, particularly in Europe, benefits are more generous and last longer. The drawback to this generosity is that it reduces a worker’s incentive to quickly find a new job. Generous unemployment benefits in some European countries are widely believed to be one of the main causes of “Eurosclerosis,” …

So it turns out that what Krugman calls Sen. Kyl’s “bizarre point of view” is, in fact, textbook economics. The authors of that textbook are Paul Krugman and Robin Wells. Miss Wells is also known as Mrs. Paul Krugman.

Unbelievable.

Jim Bunning was a famous major league pitcher who was elected to the US Senate in 1986 from his home state of Kentucky. He has had a reputation as being a bit quirky, especially in recent years and he announced last year that he would not seek re-election. He is 79 years old and would be 80 at the start of his next term. He has been in the news lately for a one man objection to extension of unemployment benefits. Naturally, his position has been demagogued all over the world and he finally gave in in return for a symbolic vote, which will be meaningless since his fellow Republicans left him to face the world alone. The story was that he is “an angry Senator” who does these quirky things for no good reason. For example, he attacked the Treasury Secretary for his responsibility in the financial crisis. Bunning has been saying inconvenient things about the current fiscal crisis. For another example, his objection to the unemployment extension was the failure to pay for it by deleting other spending.

Andy McCarthy explains what happened and why it matters.

The Kentucky Republican finally caved in Tuesday after relentless pressure from other senators — including Republicans — to drop what the Politico called his “one man” filibuster of a bill to extend expiring unemployment benefits. Technically, it was not a filibuster. It was an objection to a procedure, called “unanimous consent,” used to speed along uncontroversial legislation.

He was right to do so. These extensions happen continually. The stimulus — which is a redistribution of wealth from the private to the public sector, and from people who work to people who don’t — extended unemployment benefits for 53 weeks. Another extension in November added 20 more weeks. Cato’s Alan Reynolds reports that this brings the total to 99 weeks of benefits in high-unemployment states. The measure on which Bunning has relented adds another month. And having browbeaten him into withdrawing his objection, Democrats will now seek an extension through the end of this year, i.e., another 36 weeks or so.

The Democrats gave him a small concession for withdrawing his objection. His amendment to pay for the extension by canceling one of the many “green initiatives” that are throwing billions down that rat hole, will be allowed a vote. The vote, of course, will be lost because he was not supported by his fellow Republicans. His lonely stand for fiscal sanity was a tiny drop in an ocean of recklessness. He explains himself today in an op-ed.

None of this is paid for. Instead, the government borrows ever more money, incurring ever more debt and ever more interest on that debt. The price tag on the relatively modest, stopgap measure Bunning was blocking is put at $10 billion, but that does not count the interest that will be paid on the money borrowed to fund the bill. To count the interest would be to highlight the fact that we are filching the money from our children and their children rather than paying for spending today by cutting something else. Bunning wasn’t even against spending the money; he just wanted the something else identified and cut.

That proved unacceptable, and not only to Democrats. Maine’s Susan Collins took to the Senate floor to assure Americans that Bunning’s radical views about Congress’s not spending yet more billions it doesn’t have “do not represent a majority of the Republican caucus.” And sure enough, they didn’t. Once Bunning backed down, the measure passed by a whopping 78-19.

In this case, there ought to have been raging controversy: Bunning was objecting to yet another monthly extension of unemployment payments absent an explanation of how it would be paid for.

This why we should be suspicious of Republican assurances that they will prove fiscally conservative once elected into the majority. They are also the party of government; just a little more slowly.

Think about that. We are talking about $10 billion in a year when Leviathan is slated to spend a total of $3.6 trillion. The majority of Senate Republicans joined Democrats in concluding that the allocation of every one of these 3.6 thousand billion dollars is so vital that not one of them could be sacrificed in favor of unemployment insurance. So another $10 billion just gets heaped on the already unfathomable trillion-dollar deficits stacking year upon year.
The pols call these mounting months (now years) of unemployment benefits “temporary,” even though the real unemployment rate remains in the double digits and no relief is in sight. The “temporary” label is a budgetary trick. It enables lawmakers to sidestep “PAYGO” — Pay As You Go — restrictions that require the federal government to pay for current obligations out of current revenues. Democrats recently made a big show of reinstituting PAYGO — but not until after they’d blown deficit spending through the stratosphere.

I am taking steps to cope with another Depression. The Republicans don’t seem to be concerned. Read the rest of McCarthy’s article.

Clueless experts on health reform

Wednesday, March 3rd, 2010

Today Gail Wilensky, who was Medicare administrator under Bush I, tries to explain where we are in a New England Journal article. Since the NEJM is firmly socialist on health care, the article holds no surprises.

The third option is to create a new, more limited bill, which essentially means starting over. This strategy seems unlikely to be acceptable to Democrats, and it’s hard to know whether Republicans really want a new bill, either, though they say they do. In reality, there seems to be little inclination on either side to change the positions already staked out. Republican support has coalesced around two different bills: the Common Sense Health Care Reform and Affordability Act developed by the Republican House leadership last July and the Coburn–Burr Patient Choice Act of 2009 sponsored by Senators Tom Coburn (R-OK) and Richard Burr (R-NC) and Congressmen Paul Ryan (R-WI) and Devin Nunes (R-CA). However, as happens too often with Republicans and health care, neither proposal was pursued with the single-mindedness and passion that characterizes the Democratic pursuit of health care reform.1

That might have something to do do with the fact that nothing is better than any of the Democratic proposals. Will none of these people ever recognize that command economies don’t work ? Health care is an economic system that has been wrecked by perverse incentives and moral hazard for 60 years. There is no reason why employer provided health insurance should be tax exempt. It goes back to World War II and wage and price controls.

Most of these people are bureaucrats who have spent their lives managing other people’s lives, usually poorly. Gail Wilensky was no great shakes as Medicare administrator. The academics who write about this have no experience and are using their own theories of management based on a life on salary with clinic patients arranged for their convenience. They know nothing of paying a staff or rent or running a private practice.

My own preference for some time has been the French system, which uses fee-for-service to control utilization and which requires patients to pay first and be reimbursed later.

The Obama system has no market mechanism to control utilization and is a disaster requiring an intricate command and control system that would make the Soviet Union envious.