The Wall Street Journal is my favorite newspaper, but its Op-Ed page
is not the place to turn to for sober, non-partisan analysis. So I was
only a little bit surprised to read The Doctor’s Office as Union Shop,
which blames the Affordable Care Act (ACA) for ushering in “a
potentially radical factor in the transformation of health care –the
doctor as union worker.” The author, Dr. David Leffell from Yale Medical
School, asserts that the ACA’s reimbursement schemes are forcing
doctors to abandon their practices, although he doesn’t get into
specifics.Laser engravers and laser engraving machine
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marking etching business. But reading between the lines it’s clear that
Leffell understands that the shift of physicians from independent
practice to hospital employment pre-dates ObamaCare and has other
powerful causes.
I’ll admit that’s on the optimistic side, and
its coming from someone who prefers to be a patient in a small practice
rather than a large institutional one. But I truly believe that the
small practice model can be viable. After all, other professionals with
advanced training –including accountants, lawyers,Find the best
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available anywhere. and management consultants like me– have been able
to leverage various tools to practice in smaller, more flexible settings
than was possible a decade or two ago. These arrangements are rewarding
to work in and better for clients (at least in my biased view).
Granted, the dynamics of medicine are different, but many of the same
lessons apply.
First and foremost, physicians need to be able to
get paid for their services in a timely fashion. For better or worse
that still means dealing with third-party payment from health plans and
the government. Athenahealth is the leader in the so-called “revenue
cycle management” arena, offering a cloud-based infrastructure that
ensures a steadier and more predictable cash flow than traditional
billing services. Others, including electronic medical record vendors
with integrated practice management systems like eClinicalWorks, help
achieve similar results.
Another challenge beyond the timeliness
and predictability of payments is the ability to get good rates for
services provided. Independent physicians don’t have great negotiating
leverage with payers, although with an overall shortage of physicians
their situation isn’t as grim as it could be. One way to deal with the
reimbursement challenge is to abandon independent practice and move over
to a hospital-based system that has negotiated better rates. But IPAs
(independent practice associations) can achieve much the same result if
they’re savvy. Even better are the management service organizations like
Women’s Health Connecticut, that put business people firmly in charge
of the business aspects and let the doctors run the clinical aspects.
Women’s Health takes matters a step further and operates its own
malpractice insurance carrier, enabling it to take active steps to
control the notoriously high malpractice premiums paid by OBs.
Health
plans, employers and other buyers of health care also have a role to
play by making sure that their contracting does not inadvertently erode
the viability of the smaller practices.
Physicians can make the
customer service and patient comfort aspects of their practices more
inviting by taking a page from the dental industry, which is used to
catering to self-pay patients and competing more on the service aspects.
My dentist,Service Report a problem with a street light. Dr. Daniel Whiteman is a great example of a comfortable, modern practice with high-end equipment and customer care.
Smaller
physician offices can also benefit from general service providers that
figure out how to cater to their needs. For example, financial services
companies have helped physicians offer ways for patients to finance
self-pay procedures such as LASIK and cosmetic dentistry. But they could
do more if they delved into the somewhat peculiar financial
characteristics of physician practices and supported those needs with
tailored product offerings and customer portals. Telecommunications
firms also have the opportunity to segment out physicians and create
packages just for them.
Even if the financial services and
telecommunications packages are similar to what are offered to other
professions, there is a real marketing opportunity for these firms to
position themselves as supporters of small physicians practices, which
are small businesses. For example, the Amex Small Business Saturday
program is a terrific way to support small businesses and build goodwill
among cardholders. Last year I went with a family member to a wonderful
boutique wine merchant that I would never have patronized if it hadn’t
been for the program. What is the equivalent for a physician’s office?
One
of Leffell’s arguments is that standardization of clinical practice is
coming, and can’t be enforced unless doctors are organized into huge
groupings. That’s a fundamentally flawed argument in the age of tablets,
smart phones and cloud-based information technology. There’s absolutely
no reason that even a solo practice physician should have trouble
adhering to clinical guidelines and best practices. These physicians
should be able to access data on how other physicians like them are
practicing in similar situations. There’s also no reason that clinical
quality improvement has to lead to cookie-cutter medicine that doesn’t
take into account the individual. If anything we should see unproductive
variation reduced and an increase in personalized approaches. That’s
what I expect from my physicians and it’s what I increasingly see. You
don’t need a giant practice to access UpToDate or other clinical
information and decision support tools.
As quality reporting
evolves, these smaller physician practices should also be able to
demonstrate how well they take care of patients. If they can show
they’re doing a great job then I’m confident that in the long run
they’ll be able to not just survive but to thrive as consumers
increasingly take their business to those who can show they are the
best, regardless of setting. In the meantime there’s plenty of
opportunity for technology and business vendors to help these
independent practices out and make a good return for their shareholders
as they do so.
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