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Does Higher Health Care Spending Lead To Better Patient Outcomes?

First time accepted submitter ericjones12398 writes "If you haven't seen the words 'health care' in news headlines lately, you must be living under a rock. What seems most controversial among the latest research and news is a flawed payment scale that undervalues primary care and overvalues specialty care. There is evidence suggesting that publicly funded health care spending (i.e., Medicare) has not been based on primary health care needs. Rather, In the U.S. Medicare spending relies on a resource-based relative value scale (RBRVS) which seems to promote higher spending without evidence of better patient outcomes. A study comparing spending and mortality rates in Ontario had the opposite findings however, supporting a link between higher spending and better outcomes for patients. What are we doing different in the U.S.? "

19 of 504 comments (clear)

  1. We all know why by oldhack · · Score: 5, Insightful

    We have a medical-industrial complex. Money's gotta flow.

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    1. Re:We all know why by jjohnson · · Score: 5, Informative

      And when you don't directly have to pay for it (ie Medicare) then you don't care about the cost to benefit.

      This isn't true in UHC countries like Canada or France or Sweden, so why would it be true in the U.S.? In UHC countries, annual per capita spending is around 55% of what it is in the U.S. (in 2010, $3,900 to $7,400), and they have better aggregate outcomes as measured by things like life expectancy (average 2+ years higher in UHC countries than in the U.S.). With UHC schemes, it looks pretty clearly like they pay less and get more effective medical treatment.

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    2. Re:We all know why by vlm · · Score: 5, Insightful

      When you spend someone elses money on someone else ... you have no incentive to care about cost or benefit.

      Ah but we're talking about medical care here, and only a microscopic minority of freaks enjoy pain.

      As a thought experiment, put out a sign offering "free" root canals. Yes, yes for about a week you'll get a huge backlog of uninsured people with horrific dental pain who could not get any care before and now will joyously sign up for your free root canal. Once you work thru the backlog, the only people voluntarily going to your free-root-canal office are the same tiny fraction of people who really need one, and a couple of freaks with whip lashes and rope burns all other their bodies who do it for the pain. The price of a root canal seems to have very little correlation with the desire of the population for a root canal.

      I'm thinking the market for prostate exams, mammograms, broken bone casts is kind of the same.

      It's a completely different market from offering, say, free "adult" non-therapeutic massages, or free pr0n pixs, or free movies/music/tv, or addictive drugs, where demand is basically infinite.

      Lets say you offered "free" atmospheric oxygen. Well, first I'd breathe deeply, for free, just because I can, but that would get boring real fast. Then I'd probably have a few bonfires in my backyard, since oxygen is free so why the heck not. Hell I'd probably get a pet cat that breathes "free" oxygen. But extremely rapidly the demand kinda levels off. I had "free" water and "free" heat at my bachelor pad apartment years ago, and there is no fundamental reason to waste it, so I didn't. How much water do you think I can drink per day, anyway?

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    3. Re:We all know why by jjohnson · · Score: 5, Informative

      Because across a whole population, you would expect that the sum total of benefits of things like exercise, good medical care, healthy lifestyle choices, etc. would show up in life expectancy. When you have two populations, like Canada and the U.S., who have pretty comparable lifestyles overall, it seems like a reasonable, if blunt, proxy for the overall quality of health care.

      In the case of Canada and the U.S. at least, more on-point aggregate measures show the same thing: Canadians as a whole get better health care than Americans, and seem to have less trouble making appropriate cost/benefit tradeoffs in their health care.

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    4. Re:We all know why by Spad · · Score: 5, Insightful

      Just because the US healthcare system can offer a very high quality of care doesn't mean that it's any use to its citizens when the vast majority of them can't afford it.

      If you're fabulously wealthy then the US offers some of the best healthcare in the world, but if you're not, it's a disaster area.

    5. Re:We all know why by dave420 · · Score: 5, Insightful

      Because those countries care about preventative medicine, where doctors can help people without ever seeing them by giving them lots and lots of good advice and support tools (helplines, advertising campaigns, even the lowly pamphlet), which clearly wouldn't work in a place where doctors depend on patients for their income. Surely they make more money healing someone than preventing them getting sick. In UHC countries, exercise, smoking, diet, etc. are all priorities for the healthcare industry, as it saves them (and the taxpayers) money if the public is advised efficiently about various dangers in their lives.

    6. Re:We all know why by Dixie_Flatline · · Score: 5, Interesting

      As a Canadian, I can answer why Canadians would do this.

      Firstly, there's a chance that the Canadian government will pay for your treatment anyway. These cases aren't super common, but they (actually, the provincial governments) will cover procedures that are hard to get or experimental in Canada under certain restrictions.

      Secondly, if you have the money, everything is possible, no matter where you live. The reason why America is so enticing is precisely why it fails its own citizens (IMO): there is excess capacity. If you have money, there are doctors and hospitals that have a lot of extra room for you because they're not concerned with serving people without money or insurance (until it's an emergency). In Canada, the queues are full. The people have been triaged, and rich or poor, they've got to wait. Someone that makes a million dollars a year doesn't get to jump the line because of their income, and someone that barely scrapes by can be assured that they'll get their care. So if you're rich in Canada and you can afford not to wait, you may skip out of the country to get an operation somewhere else. (Frankly, this is something I encourage. It makes the lines shorter for everyone else.)

      Care at the very high level in the US is extremely good; nobody in their right mind argues with that. American researchers and surgeons are often also the ones performing new and different techniques, so your system is on the leading edge.

      So, yeah. The American system works for people that don't live in America precisely because it ISN'T fair, and the system inside my country is a level playing field that the rich don't want to wait on. (This is not a criticism of the wealthy in Canada, per se. As far as I know, they think our system is as great as the rest of us do. But they have the money, and they can decide how to spend it.)

    7. Re:We all know why by CptPicard · · Score: 5, Informative

      Well, I'm a Finn, so we count as a "Socialist medicine" country, and as a somewhat severely disabled person by birth who still has been patched up to be a happy taxpayer, I certainly count as a huge and probably never fully profitable beneficiary of our system, but anyway...

      I frankly do not believe in the "UHC people do not care about the cost to benefit" argument. At least in civilized countries, people will have some common sense that even when they might totally destroy their health, it's not going to be fun even though they might get healthcare in the end. You'll want to avoid getting an organ transplant in general even though it might be paid for. When there are obvious public health concerns, such as the generally excessive alcohol intake in Finland, educating the public is a relatively small "totalitarian" cost as the objective benefit is so easy to see. Pure Libertarians will of course always disagree, and I can appreciate that.

      The benefit of general social insurance not only in economic but ethical terms just outweighs any abuse concerns. Those who would, really deserve the pain that comes with the unfortunately necessary pain that comes with the condition they put themselves into, regardless of the healthcare they're getting.

      And when it comes to actually *how* to provide the healthcare, it's all actually mercifully objective -- it's not like buying a car. Medicine is a science. We know that certain treatments work, in a scientific sense, and others do not. Hospitals do not need to be hotels. During my lifetime, I've been treated by incredibly skilled and compassionate public-sector doctors and nurses who have done their best -- and yet I've always been glad to be out of the hospital, as that means I'm getting better. And the outcome has been pretty good so far, yet I'm not so sure after all the cuts that are being imposed at the moment. Even the public sector can't run on thin air :-)

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  2. No by Cigarra · · Score: 5, Insightful

    The answer is no. Next question?

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  3. Why Doctors Die Differntly by haemish · · Score: 5, Interesting

    The last months of a persons life are overwhelmingly the most expensive, but the outcomes are predicable. There was a great article in the WSJ on this called Why Doctors Die Differently - http://online.wsj.com/article/SB10001424052970203918304577243321242833962.html . The basic point is that doctors understand death, and when their condition makes death inevitable. They almost always opt for more life in their years than more years in their life. From a healthcare point of view, doctors have much less expensive end-of-life care.

    1. Re:Why Doctors Die Differntly by garcia · · Score: 5, Interesting

      I read that article when it came out and agreed with all of it. However, in many cases it's just simply not as easy as the article makes it seem.

      My grandfather passed away several years ago after living for the better part of a decade mentally and physically incapacitated following a serious brain hemorrhage. My father, having power of attorney, noted that he was not to receive anything other than painkillers. He was simply supposed to be made comfortable but no effort was to be made to prolong his life. The cost of that nursing home was astronomical even for care which is basic.

      There is also my remaining living grandparent. At 86 she is able to walk by herself, communicate clearly, etc. She also has a ton of health issues including diabetes, pain management, etc. Her costs, mostly shouldered by the taxpayers due to very low available income, are also astronomical and she's living what many may consider an active and acceptable lifestyle for her age.

      So yeah. Doctor's (and many others) choose to die quickly and w/o medical intervention which is likely to fail anyway. However these astronomical costs aren't just for those who are likely terminal patients. They're for everyone--even the "healthy" ones.

  4. Stop the hate by concealment · · Score: 5, Funny

    There's nothing wrong with living under a rock. It's energy efficient, quiet and affordable. And, no unwanted guests.

  5. Break it down to the basics by thechemic · · Score: 5, Insightful

    The United States runs a "for profit" model. Canada runs a "for better society" model. In one model the fundamental design of one system dictates that consumers spend as much as possible and receive as little as possible. The fundamentals of the other design dictate that consumers all receive adequate care, and the only reason to spend more is to get more.

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    1. Re:Break it down to the basics by Anonymous Coward · · Score: 5, Insightful

      The biggest giveaway for me is that in most places in the US, medicine uses the Caduceus (commerce, trickery, and death) as its symbol; in the majority of the world, medicine uses the Rod of Aesculapius (healing and health) as its symbol.

    2. Re:Break it down to the basics by T.E.D. · · Score: 5, Insightful
      Well, actually the US has four different models that it uses simultaniously. I'll list them roughly in order of how "socalized" they are.
      1. Veteran's Aministration. This system is totally government-run. The hospitals and doctors are all on the government payroll.
      2. Medicare/Medicaid. The doctors and hospitals are paid based on services rendered, but the US Government is paying all (or nearly all) of the money. Essentially the US Government is acting like one really large insurance company, with your taxes being the premiums (even if you aren't covered). About 1/4th of US residents are under model 1 or 2.
      3. Private insurance. The doctors and hospitals are paid based on services rendered, but a private insurance company is paying a large portion (if you are lucky the lion's share) of the bill. They in turn get their money from whoever pays their premiums. If that is a company, they are passing the costs of this on to their customers, making them less competitive in a global marketplace that includes companies in other countries that don't have to do this. About 46% of US residents are under this model.
      4. "Free Market". This person has no coverage of any kind. They generally don't go to doctors, because almost none of them can afford it (if they could afford such things, they would have bought into option 3). If they get sick enough that it's obviously life-or-death, they go to the most expensive place in the system (an emergency room) where they have to be treated by law, and then generally don't pay because there's no way a typical person can pay a sudden ER bill in the 10's of thousands of dollars or more. So their treatment ends up being paid by users of option 2 or 3. More than a quarter of US residents are using this model, and the percentage is increasing every year.
  6. Re:The spending is very concentrated by NeutronCowboy · · Score: 5, Interesting

    Not surprising. Sick people cost more than healthy people. At any given time, less people are sick than are healthy. Furthermore, there is a small segment of chronically ill people.

    Note: the reason why health care needs the biggest pool possible is because at any given time, you cannot tell who will need expensive health care. Our health care isn't good enough to predict who will get what disease and when, or who will get into an expensive accident. This means that unless you want to bankrupt 5% of the US population and keep them permanently in the poor house, you need a national health care system. Otherwise, the health care system will trend to cost+profit+cost to help uninsured people.

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  7. Re:Why Old People Die Differntly by vux984 · · Score: 5, Interesting

    What happened to family taking care of their own?

    You need a house with an extra bedroom.
    Someone at home around the clock.

    So...you need a single income family in a house with extra rooms... In an age of dual income families who both have to work just to afford living in a small condo.

  8. Re:No, it does not by LanMan04 · · Score: 5, Interesting

    Living in Canada, I can tell you - our healthcare system SUCKS. Have a broken arm? Go to the emergency room and sit there for 4 to 6 hours for someone to attend to you...

    The exact same thing happens in the US (triage is triage, after all), and then you get a $3000 bill in the mail.

    Sounds great, right?

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  9. Re:"health care" = "disease management" by glop · · Score: 5, Insightful

    That's a rather accurate and complete description.
    I only have a couple things to add.

    The quoted price is what you risk paying if you don't have insurance. So a high quoted price is something good for the insurer as it will scare you into buying their overpriced services.
    Some insurers might pay more than others for the same service, so one could think they would want to reduce the "quoted price" so they all benefit by paying less. But I am more and more convinced they actually benefit too much from the absence of reasonable public prices and therefore are trying to keep the non-transparent pricing in place.

    I am not familiar with many drugs, but the few I know make it clear that your insurer doesn't care about getting you a good price for drugs. The copay of drugs can be 2 to 3 times more than the list price or quoted price of the same drug in France (whereas food, clothing, gas and many other commodities are rather cheaper in the US). This is a clear indication that the insurance company acts like a broker that helps you buy services but it actually doesn't care if you get ripped off. The only meaningful difference is that in France, the insurance company negotiates the list price down. So everybody, even those who don't have insurance benefit from the negotiation.

    If we were able to switch insurance providers easily, we would be able to choose the best brokers and also the best coverage. The only issue is that you don't want freeloaders in the system, so you need a minimum level of coverage that people must get. Otherwise they can just go with a dummy insurance for 2$ and then when they are sick they can just benefit from our humanity (i.e. we are human so we won't let them without care when they show up at the emergency room).

    Overall, healthcare is an issue that is both social and individual. Therefore it can't be simply handled by pure market or pure governmental solutions. But at least we should make sure we have working market components in the solution and working governmental components too.