Weakness in Numbers (Creating More Physicians Won't Contain Medical Prices)

Barron's ^ | 14 June 2004 | WILLIAM B. WEEKS AND AMY E. WALLACE

[shrinkermd]

HEALTH-CARE COSTS CONTINUE to increase dramatically. Some social analysts have attributed these costs to the excessive incomes of physicians, and they have argued that increasing the number of physicians in the U.S. might curtail medical-price inflation. They reason that more physicians would result in more competition, which would result in lower incomes for physicians. And, they contend, lower incomes for physicians would result in lower health-care prices. We think this reasoning is flawed.

Contrary to popular opinion, most physicians aren't overpaid. Because of extensive required training (four years of college, followed by four years of medical school, followed by three to seven years of additional residency training) and the interest on the debt for all this education, most doctors have lower returns on educational investment than other professionals, such as lawyers, dentists and business executives.

<

[shrinkermd]

FYI. Not mentioned is the increasing use of technology (laboratory tests) and physician's assistants including RN'S to reduce costs.

Noteworthy is the discussion and documentation of "over-care." Also noteworthy, is the requirement of the WSJ that the article be "excerpted." Few, if any people, will buy either the WSJ or Barron's to get this article. Sorry I could not include it all.

[AQGeiger]

What about the impact of skyrocketing malpractice insurance premiums due to frivolous litigation? When docs have to pay more for the insurance, wouldn't they have to charge more for their services in order to prevent from being run out of business?

[Cicero]

The two biggest medical expenses today are trial lawyers and insurance companies.

I'm having a minor operation next week and I just had to go to the hospital for three unnecessary tests beforehand. It's quite clear that the reason for these tests is, plain and simple--lawyers.

The added cost is substantial.

[narby]

There was a local article recently about a Dr. that decided to work only for cash. He laid off his accounting firm, and reduced his paperwork dramatically in the whole office. The cost for an office visit is something south of $100, and he spends twice as much time per patient than before.

He also makes more money, because he doesn't have to negotiate after the fact with insurance firms for exactly how much he can be paid.

It only makes sense that with all the stupid paperwork from an insurance company or govt. it's got to be cheaper if you eliminate them. And you can for virtually all medical needs except for major problems.

[GOP_1900AD]

How to contain medical costs: 1) Do whatever it takes to squeeze out AIDS - treat it the way we treated SARS. 2) See # 1 vis a vis recurring pathogens, previously controlled in the industrialized world, due to the onset of massive third world immigration. 3) Adopt the same laws regarding trafficking drugs which are found in countries such as the Philippines and Taiwan. Death penalty in all cases of guilt. 4) Wean the 80% of the people who medicate themselves needlessly off of them - the meds are causing more health problems than they are solving; in most cases they are purely for "comfort" or worse (getting high). 5) Bring on the draft. Whip those in the 18 - 2x age bracket into shape - many who go through it will have better health the rest of their lives as a result. 6) Did I mention tort reform? No brainer..... I could go on and on with this. Most of this stuff is totally obvious (but much of it is politically incorrect and illiberal). We need another Ronald Reagan to go after all this and sell it.

[Rahmulus]

For those that want to bypass the expensive US medical costs....Bangkok...Brilliant hospital, delightful nurses and US trained doctors all for a fraction of the costs at home. Had a complete cardio checkup including stress test and 24 hour monitor for a little over a $200.

[FormerACLUmember]

I fear aging and sickness because I know that the "best and the brightest" are avoiding the medical profession. Who will care for us when we need it once the democrat party and lawyer vermin have finished their destruction of the healthcare professions?

[krb]

As with most situations that involve this much controversy and complexity, I would bet that the true solution to the problem is going to be found in a mixture of the elements that are being discussed.

We probably do need more doctors, but we also need to solve the "medical malpractice as lottery" system that has evolved.