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Doctors and hospitals, one and inseperable

By | January 5, 2010, 9:29 AM PST

Americans are accustomed to seeing the interests of doctors and hospitals as different.

Even during the debate over health reform, releases from the American Hospital Association were treated as being from an interest group, those from the American Medical Association were treated as being from professionals.

But that is changing, with profound effects for health costs and care.

We already know, for instance, that when doctors own  hospitals they have a conflict of interest. Even if the bias is unconscious, doctors who own facilities order more tests and treatments than those who don’t.

This was at the heart of Dr. Atul Gawande’s New Yorker profile of McAllen, Texas, which became highly influential in the year’s legislative debate. The whole hospital industry quickly pushed back against the perception, and against reform generally, while the AMA came out for the final bill.

With one caveat. They want the Medicare reimbursement cuts meant to bend costs down stricken.

Absent getting their way in Washington doctors will have two ways of fighting these cuts. One way is to stop serving Medicare patients. Many have done so. But another way is to go to work for hospitals. And many have done that, too.

The Nashville Post calls this trend doctors for sale, but it is in fact the same alignment of interests created when doctors own hospitals, only with the roles reversed. Instead of the doctors now manipulating the system for their own interests, they’re advocating for their employers.

All of which leads to a health care system that is more like that of the rest of the world, whether or not reform passes, and however things move from here. In the rest of the world doctors are employees and doctor strikes are common. It’s the only move left when jobs, pay and conditions are completely controlled from above.

The trend of doctors losing their independence, or giving it up for the joys of business life, seems irreversible. Will doctor strikes follow? And when they do will conservatives call for doctors’ unions to be broken?

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Dana Blankenhorn

About Dana Blankenhorn

Dana Blankenhorn was a contributing editor for SmartPlanet from 2009 to 2010.

Dana Blankenhorn

Dana Blankenhorn

Contributing Editor, Healthcare

Dana Blankenhorn has written for the Chicago Tribune, Advertising Age's "NetMarketing" supplement and founded the Interactive Age Daily for CMP Media. He holds degrees from Rice and Northwestern universities. He is based in Atlanta.

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Dana Blankenhorn

Dana Blankenhorn

Dana Blankenhorn has been a technology reporter since 1982, a business reporter since 1978, and a writer for as long as he can remember. His Schwab IRA has a few tech stocks in it, most notably some Intel and Applied Materials bought over 10 years ago. But the vast majority of his tiny fortune (emphasis on the word tiny) is invested in mutual funds. He presently writes for no one else but ZDNet, SmartPlanet and himself. But if you've got an opportunity let him know. If he takes the gig he"ll first add it to this disclosure page.

He writes for SmartPlanet and is not an employee of CBS.

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RE: Doctors and hospitals, one and inseperable
Yes, but -- It's not "inseperable". It's"inseparable". -- Yuri
Zhivago, Doctor of Spelling, Dictionary Hospital, Bishop, CA
Posted by taaminator@...
6th Jan 2010
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RE: Doctors and hospitals, one and inseperable
Dana would you like to hire a proof-reader? After all, "spellcheck" is not infallible.
Posted by JTF243@...
6th Jan 2010
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Not quite
It is true that when doctor own hospitals (or private offices, for that matter)
there is a conflict of (economic) interest to do more than medically
necessary, that can be only alleviated by instilling strict ethical guidelines
during med school. On the other hand, when working as employees for
private or state owned health systems that have an interest in cost cutting,
such a doctor is removed from the economical considerations (not talking
about the doctors that become hospital administrators) and often acts in
contrast with a restrictive spending policy for the benefit of the medically
insured patient. The so-called ?socialisation of medicine?, that started in
Europe after the First World War with the creation of comprehensive state
health protection systems, was beneficial for the population as a whole, but
created a new set of problems - state budgets had to encompass funds for
the system (that are never sufficient for the desires, if not the needs of the
users), doctors were exposed to dual loyalty issues (to their patients but
now to their employers also), if salaries are not proper to corruption, strikes
as collective labour actions now become legitimate for medical staff, and so
on. These problems are intrinsic and can be only mitigated by careful
planing and execution, not forgetting that such systems are always better
than no system at all.
Posted by darije.djokic@...
7th Jan 2010
0 Votes
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RE: Doctors and hospitals, one and inseperable
My fifth grade teacher taught us that there is "a rat" in (the word) separate. That's a good way to remember the correct spelling.
Posted by kellycarter
7th Jan 2010
0 Votes
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Sorry about the spelling error
The spell check doesn't work on headlines. And separate has always been one of those bogie words for me. Everyone has them.
Posted by DanaBlankenhorn
7th Jan 2010
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