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	<description>Healthcare Rationing in America</description>
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	<itunes:summary>Healthcare Rationing in America</itunes:summary>
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	<itunes:author>Richard N. Fogoros</itunes:author>
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		<itunes:name>Richard N. Fogoros</itunes:name>
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		<title>Advice to Medical Tourists From the American College of Surgeons</title>
		<link>http://covertrationingblog.com/general-rationing-issues/advice-to-medical-tourists-from-the-american-college-of-surgeons</link>
		<comments>http://covertrationingblog.com/general-rationing-issues/advice-to-medical-tourists-from-the-american-college-of-surgeons#comments</comments>
		<pubDate>Tue, 29 Mar 2011 18:41:54 +0000</pubDate>
		<dc:creator>DrRich</dc:creator>
				<category><![CDATA[General rationing issues]]></category>

		<guid isPermaLink="false">http://covertrationingblog.com/?p=1495</guid>
		<description><![CDATA[Podcast: In an earlier post, DrRich offered several potential strategies for doctors and patients to consider should healthcare reformers ultimately succeed in their efforts to make it illegal for Americans to seek medical care outside the auspices of Obamacare. To those readers who persist in thinking that DrRich is particularly paranoid in worrying about such [...]]]></description>
			<content:encoded><![CDATA[<p><strong>Podcast:</strong></p>
<p></p>
<p>In an <a href="http://covertrationingblog.com/general-rationing-issues/black-market-healthcare-a-few-concrete-suggestions" target="_blank">earlier post</a>, DrRich offered several potential strategies for doctors and patients to consider should healthcare reformers ultimately succeed in their efforts to make it illegal for Americans to seek medical care outside the auspices of Obamacare. To those readers who persist in thinking that DrRich is particularly paranoid in worrying about such a thing, he refers you to <a href="http://covertrationingblog.com/rebuilding/limiting-individual-prerogatives-in-healthcare" target="_blank">his prior work carefully documenting the efforts</a> the Central Authority has already made in limiting the prerogatives of individual Americans within the healthcare system, and reminds you that in any society where social justice is the overriding concern, individual prerogatives such as these <em>must</em> be criminalized. Indeed, whether individuals will retain the right to spend their own money on their own healthcare is ultimately the real battle. The outcome of this battle will determine much more than merely what kind of healthcare system we will end up with.</p>
<p>DrRich, despite his paranoia on the matter, is a long-term optimist, and believes that the American spirit will ultimately prevail. So, to advance this happy result DrRich (in the previously mentioned post) graciously offered <a href="http://covertrationingblog.com/general-rationing-issues/black-market-healthcare-a-few-concrete-suggestions" target="_blank">several creative options</a> that could be employed to establish a useful Black Market in healthcare, which will allow individuals to exercise their healthcare-autonomy against the day when such autonomy again becomes legal. His suggestions included offshore, state-of-the-art medical centers on old aircraft carriers; combination Casino/Hospitals on the sovereign soil of Native American reservations; and cutting-edge medical centers just south of the border (which would have the the added benefit of encouraging our government to finally close the borders to illegal crossings once and for all).</p>
<p>As entertaining as it might be to imagine such solutions, a readily available, though much more mundane, option exists today, which is to say, medical tourism.</p>
<p>Medical tourism is where one travels outside one&#8217;s own country in order to obtain medical care elsewhere. It is becoming a booming business. A number of superb state-of-the-art medical centers expressly aimed at attracting medical tourists have been established in the Middle East, Singapore, India, China and elsewhere in Asia. These institutions cater to citizens of the world whose own healthcare systems cannot (or will not) provide in a timely fashion (or at all) the level of care patients may desire. Many of these institutions offer modern hospitals, numerous amenities, luxurious accommodations, attentive nursing care, and top-notch doctors &#8211; and they do it all for a tiny fraction of what the same care might cost (if you can even find it) in the U.S. and other &#8220;first world&#8221; nations.</p>
<p>Obviously, medical tourism is not particularly feasible for medical emergencies such as heart attack or stroke, or for chronic illnesses such as diabetes, congestive heart failure, or Parkinson&#8217;s disease, which require frequent visits and long-term management.  What is feasible is to become a medical tourist for those one-time medical services that can be scheduled and planned, for which there is a long waiting period at home, or which is simply too expensive in one&#8217;s own country. Such medical services often include coronary artery bypass surgery, hip replacements, knee replacements, and numerous minimally-invasive and not-so-minimally-invasive surgical procedures. In other words, medical tourism to a large extent is something one does for elective (i.e., non-emergency) surgery.</p>
<p>These are the very procedures, <a href="http://covertrationingblog.com/general-rationing-issues/the-real-utility-of-never-events" target="_blank">as DrRich has pointed out</a>, which are now being covertly rationed in the U.S. thanks to the &#8220;never events&#8221; policy adopted by CMS and private insurers. As a result, certain categories of individuals may soon find it more difficult to obtain elective surgical services than they might have just a few years ago, and medical tourism may accordingly become a more compelling alternative.</p>
<p>It ought not be a surprise, therefore, that the first organization of American physicians to issue a formal policy statement regarding medical tourism is the American College of Surgeons.</p>
<p>The reaction of American surgeons to medical tourism ought to be obvious. They hate it. Elective surgical procedures &#8211; the very procedures for which Americans become tourists &#8211; are the bread and butter of most surgical specialties. It pains them to think of their prospective patients going off to Singapore for their lucrative bypass surgeries. American cardiac surgeons, for instance (already underemployed, thanks to American cardiologists throwing stents at every tiny coronary artery indentation they they can justify as a &#8220;blockage&#8221;), are nearly apoplectic at the idea.</p>
<p>It&#8217;s always a delight to read formal policy statements which attempt to disguise an entirely self-serving message as a selfless public gesture. The actual message of the surgeon&#8217;s policy statement, of course, is, &#8220;We hate medical tourism, and if you do it we&#8217;ll hate you,&#8221; but they say so on a manner which is designed to be polite, politically correct, non-judgmental, helpful and even friendly.</p>
<p>The surgeons in general have made a good effort, as you can see if you&#8217;d like to <a href="http://www.facs.org/fellows_info/statements/st-65.html" target="_blank">read the policy statement for yourself</a>. It&#8217;s pretty much what you would expect &#8211; &#8220;Go ahead and have your knee replaced in Timbuktu if you want to. It&#8217;s your right, so go ahead and devil take the hindmost. Just don&#8217;t come crying to me when things go south a month later.&#8221;  They do so, however, in an extraordinarily collegial way.</p>
<p>The artful style of their policy statement aside, DrRich is struck by two aspects of the actual substance of the document.</p>
<p>First, the surgeons begin with a litany of dire warnings regarding all the medical considerations one must take into account before trusting one&#8217;s health to foreign medical hands:</p>
<blockquote><p>&#8220;Some of the intangible risks include variability in the training of medical and allied health professionals; differences in the standards to which medical institutions are held; potential difficulties associated with treatment far from family and friends; differences in transparency surrounding patient discussions; the approach to interpretation of test results; the accuracy and completeness of medical records; the lack of support networks, should longer-term care be needed; the lack of opportunity for follow-up care by treating physicians and surgeons; and the exposure to endemic diseases prevalent in certain countries. Language and cultural barriers may impair communication with physicians and other caregivers.&#8221;</p></blockquote>
<p>Obviously, these are all very important considerations. What strikes DrRich, however, is that these are the very same considerations (even the warning about endemic diseases, when one considers the MRSA infections which are secretly &#8220;endemic&#8221; in some American hospitals) which patients must also take into account before agreeing to receive care in any American institution. It may turn out that these considerations are more an issue in top-notch foreign hospitals than in your average American hospital, but DrRich is not convinced this is the case, and the surgeons do not provide any evidence that it is. In other words, DrRich sees this very good advice as being equally applicable whether one is considering becoming a medical tourist, or just a typical American patient.</p>
<p>Second, and more astonishingly, DrRich notes &#8211; not so much with interest, but more with awe &#8211; that the surgeons are beseeching their patients to consider just how difficult it might be to launch a malpractice suit against foreign doctors. (DrRich himself does not know how difficult this would be. Given that we are being so strongly urged these days to merge the American legal system with several varieties of international law, it might not be such a big problem.) Indeed, a careful reading of this policy statement reveals that the potential difficulty in suing foreign doctors is offered as the chief differentiator, and thus it has become the primary argument in favor of good-old-American-surgery. The surgeons, in essence, are saying, &#8220;Let us do your surgery, because we&#8217;re easier to sue if we screw up.&#8221;</p>
<p>This, from the very body of American physicians who are most at risk for malpractice suits, and who traditionally have been most vociferous in favor of malpractice reform.</p>
<p>DrRich can only shake his head in wonderment. If medical tourism is viewed by surgeons as such a dire threat that they have embraced, as their chief weapon against it, a celebration of the ease of suing American doctors, why, one can only conclude that medical tourism must have caught on far more than most of us realize.</p>
<p>As an American physician who has always been proud of American medicine, DrRich&#8217;s innate tendency is to lament the fact that Americans are finding it to their advantage to travel to Mumbai for their hip replacements. But as a patriot, he celebrates the fact that his fellow citizens are willing to go to such lengths to exercise their individual autonomy. He finds it a hopeful sign.</p>
<p>Our would-be oppressors might find it more difficult to hold us down than they may think.</p>
]]></content:encoded>
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		<slash:comments>1</slash:comments>
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		<itunes:duration>0:11:55</itunes:duration>
		<itunes:subtitle>Podcast:

In an earlier post, DrRich offered several potential strategies for doctors and patients to consider should healthcare reformers ultimately succeed in their efforts to make it illegal for Americans to seek medical care outside the auspices[...]</itunes:subtitle>
		<itunes:summary>Podcast:

In an earlier post, DrRich offered several potential strategies for doctors and patients to consider should healthcare reformers ultimately succeed in their efforts to make it illegal for Americans to seek medical care outside the auspices of Obamacare. To those readers who persist in thinking that DrRich is particularly paranoid in worrying about such a thing, he refers you to his prior work carefully documenting the efforts the Central Authority has already made in limiting the prerogatives of individual Americans within the healthcare system, and reminds you that in any society where social justice is the overriding concern, individual prerogatives such as these must be criminalized. Indeed, whether individuals will retain the right to spend their own money on their own healthcare is ultimately the real battle. The outcome of this battle will determine much more than merely what kind of healthcare system we will end up with.
DrRich, despite his paranoia on the matter, is a long-term optimist, and believes that the American spirit will ultimately prevail. So, to advance this happy result DrRich (in the previously mentioned post) graciously offered several creative options that could be employed to establish a useful Black Market in healthcare, which will allow individuals to exercise their healthcare-autonomy against the day when such autonomy again becomes legal. His suggestions included offshore, state-of-the-art medical centers on old aircraft carriers; combination Casino/Hospitals on the sovereign soil of Native American reservations; and cutting-edge medical centers just south of the border (which would have the the added benefit of encouraging our government to finally close the borders to illegal crossings once and for all).
As entertaining as it might be to imagine such solutions, a readily available, though much more mundane, option exists today, which is to say, medical tourism.
Medical tourism is where one travels outside one&#8217;s own country in order to obtain medical care elsewhere. It is becoming a booming business. A number of superb state-of-the-art medical centers expressly aimed at attracting medical tourists have been established in the Middle East, Singapore, India, China and elsewhere in Asia. These institutions cater to citizens of the world whose own healthcare systems cannot (or will not) provide in a timely fashion (or at all) the level of care patients may desire. Many of these institutions offer modern hospitals, numerous amenities, luxurious accommodations, attentive nursing care, and top-notch doctors &#8211; and they do it all for a tiny fraction of what the same care might cost (if you can even find it) in the U.S. and other &#8220;first world&#8221; nations.
Obviously, medical tourism is not particularly feasible for medical emergencies such as heart attack or stroke, or for chronic illnesses such as diabetes, congestive heart failure, or Parkinson&#8217;s disease, which require frequent visits and long-term management.  What is feasible is to become a medical tourist for those one-time medical services that can be scheduled and planned, for which there is a long waiting period at home, or which is simply too expensive in one&#8217;s own country. Such medical services often include coronary artery bypass surgery, hip replacements, knee replacements, and numerous minimally-invasive and not-so-minimally-invasive surgical procedures. In other words, medical tourism to a large extent is something one does for elective (i.e., non-emergency) surgery.
These are the very procedures, as DrRich has pointed out, which are now being covertly rationed in the U.S. thanks to the &#8220;never events&#8221; policy adopted by CMS and private insurers. As a result, certain categories of individuals may soon find it more difficult to obtain elective surgical services than they might have just a few years ago, and medical tourism may accordingly become a more compelling alternative.
It ought not [...]</itunes:summary>
		<itunes:author>Richard N. Fogoros</itunes:author>
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		<title>Overhauling America’s Healthcare Machine &#8211; A Review</title>
		<link>http://covertrationingblog.com/healthcare-reform/overhauling-america%e2%80%99s-healthcare-machine-a-review</link>
		<comments>http://covertrationingblog.com/healthcare-reform/overhauling-america%e2%80%99s-healthcare-machine-a-review#comments</comments>
		<pubDate>Tue, 15 Feb 2011 11:08:12 +0000</pubDate>
		<dc:creator>DrRich</dc:creator>
				<category><![CDATA[Healthcare reform]]></category>

		<guid isPermaLink="false">http://covertrationingblog.com/?p=1365</guid>
		<description><![CDATA[Some might wonder why America needs a new book on fixing our healthcare system, now that the the Patient Protection and Affordable Care Act (i.e., Obamacare) has already done that for us. Well, there are several reasons, so take your pick: 1) Obamacare might be repealed. 2) Obamacare might be found unconstitutional. 3) If Obamacare [...]]]></description>
			<content:encoded><![CDATA[<p>Some might wonder why America needs a new book on fixing our healthcare system, now that the the Patient Protection and Affordable Care Act (i.e., Obamacare) has already done that for us. Well, there are several reasons, so take your pick:</p>
<p>1) Obamacare might be repealed.<br />
2) Obamacare might be found unconstitutional.<br />
3) If Obamacare is permitted to proceed into its full glory, it shouldn&#8217;t be long before it leads to social upheaval either by: a) exploding the federal deficit far beyond even what we&#8217;re seeing today; or b) alarming a critical mass of Americans regarding the new, oppressive powers which the new law grants to the federal government.</p>
<p>If 1 or 2, the process by which our nation will re-address healthcare reform may look much like the contentious, but deliberative, processes we have used in the past to reform certain aspects of our society. If 3, the process may look a lot more like Egypt.</p>
<p>In any case I think there is a reasonable chance that, in the next few years, we may be looking for a completely new way to reform our healthcare system, one that resembles neither Obamcare, nor the alternate and rather tepid &#8220;solutions&#8221; that have been proposed by the Republican leadership.</p>
<p>When that day comes, you will be very glad you took the time to read Douglas Perednia&#8217;s new book, <strong>Overhauling America’s Healthcare Machine &#8211; Stop the Bleeding and Save Trillions</strong>.</p>
<p>Perednia, something of a polymath, is an internal medicine specialist as well as a dermatologist, an NIH researcher, a writer, and an expert in telemedicine and medical informatics (he is a professor of this latter discipline). While he has founded and directed non-profit organizations, he is also an entrepreneur (which explains how he has become &#8220;New Zealand&#8217;s sole domestic source of boiler cleaner and glue for beer bottle labels&#8221;). He admits also to being a tap dancer (not that there&#8217;s anything wrong with that). And, as anyone will know who reads his excellent blog, <a href="http://roadtohellth.com/" target="_blank">Road To Hellth</a>, he also knows a lot about the healthcare system.</p>
<p>Perednia&#8217;s book is a true tour de force &#8211; but don&#8217;t let that frighten you away. The author&#8217;s writing style is clear and conversational, easy to follow and entertaining to read.</p>
<p>In this style, he tells you everything.</p>
<p>Perednia does not pretend that American healthcare isn&#8217;t in dire need of the very kind of fundamental change that President Obama says he wants, nor does he pretend that a little insurance reform will do the trick. The healthcare system, he suggests, is on its last legs. It is a machine that is wearing out and bogging down, and it needs to be completely overhauled.</p>
<p>The healthcare machine is far more complex than it ought or needs to be. It is burdened by all manner of extraneous flywheels, gears, and gewgaws that were glommed on during its long history to please one long-forgotten constituency or another, that do nothing useful, but that consume a lot of fuel and deposit a lot of grime. The healthcare machine&#8217;s great creaking clockwork grinds away against all this unnecessary friction and accumulated grunge, and for all its strenuous efforts produces an ever-smaller amount of useful work. What this machine needs is more than some bright new attachments and smarter operators to oversee its churnings. It needs to be torn down and rebuilt.</p>
<p>Perednia does not pull his punches. He starts by showing that the American healthcare system, when its output is analyzed objectively and soberly, does not produce nearly as much good as its present apologists suggest. It certainly does not produce very much good in relation to all the money we spend on it. He then moves on to analyze the roles all the big players have within the healthcare system in producing all this waste. He amply demonstrates how the doctors, the hospitals, the insurers, the government (and, yes, the patients), behaving in a manner that is entirely consistent with the incentives the system has provided for them, with no especial evil in their hearts, and with no more than the natural, baseline amount of greed and self-interest that accompanies any human enterprise, operate in a grotesque ballet of waste and excess. He shows how the healthcare machine has reached the point where it simply cannot go much further, and that, like it or not, we&#8217;re going to have to do something about it. (Along the way, Perednia clearly demonstrates how Obamacare, far from representing any kind of fundamental departure, simply exaggerates the pathology.)</p>
<p>The strongest part of this book, however, deals with how to fix all this. Perednia begins by establishing what almost anyone would agree ought to be the goals of the American healthcare system &#8211; it must deliver effective and efficient healthcare services in a manner whose fairness to all Americans is commensurate with the contributions all American make to it, and it must be financially sustainable &#8211; at least to the point that its cost does not drive us to societal collapse. He then outlines a scheme that can achieve these goals.</p>
<p>I would be less than forthcoming if I did not mention that the broad outline of Perednia&#8217;s solution, as he graciously acknowledges, derives from my own book. That outline looks like this:</p>
<p>He proposes a 3-tiered healthcare system. The bottom tier, Tier 1, consists of self-pay healthcare. All individuals would be expected to pay a certain amount each year toward their own healthcare, say $2000 per individual, or $4000 per family. The funds for Tier 1 could reside in a Health Savings Account, which the individual would own. People with low incomes would have HSAs funded by the government. But everyone has the opportunity to own an HSA, and everyone controls the first $2000 of spending on their own healthcare (and keeps what money is not spent).</p>
<p>Once the individual exhausts their annual $2000 limit, their healthcare would default to a publicly-funded Universal Health Insurance Plan (Tier 2). The universal health plan &#8211; which would cover every American, even members of Congress &#8211; would operate under a system of open healthcare rationing, for the purpose of keeping public spending on healthcare on a reasonable budget. Perednia spells out the details on how such open rationing could be accomplished. Obviously, establishing any system for openly rationing healthcare would be a very difficult and exceedingly painful process. It seems very likely that only after experiencing great gouts of pain from our current healthcare system could we Americans be enticed to tackle such a thing. But Perednia (and I) postulate that such a circumstance may become manifest in the very foreseeable future.</p>
<p>Tier 3 is a completely voluntary, self-funded insurance product. Here, the health insurance industry would offer various levels of additional health insurance to people who want it, which will pay for services not covered under the open rationing in Tier 2. Health insurance in Tier 3 would begin to look like an actual insurance product (i.e., one that protects individuals against unforeseen, potentially catastrophic expenses), instead of the soup-to-nuts coverage of everyone&#8217;s heart&#8217;s desire that now passes for health &#8220;insurance.&#8221;</p>
<p>Again, this is just an outline. While my book did not take it much farther than this, Perednia takes his solution to the healthcare problem several steps beyond, and provides a very comprehensive plan. He discusses specifics of insurance reform, physician reimbursement, paying for goods and services, physician credentialing, government regulation, malpractice reform, addressing fraud and abuse, implementing electronic medical records that actually help efficient patient care (a particularly strong section of the book), and assuring that innovations in healthcare are encouraged. If you really want to know how to fix American healthcare, it&#8217;s all here.</p>
<p>Once Omamacare is repealed or declared unconstitutional, or once it goes forward in tact to accelerate the final implosion of our already-near-terminal healthcare system, smart people will find themselves looking for new ideas upon which to re-build American healthcare. Amidst all the cacophony about healthcare reform, however, there are really only very a few voices that are offering truly novel solutions. Doug Perednia has thrust himself to the front of that short list of visionaries with Overhauling America’s Healthcare Machine.</p>
<p>Please read this book, so that when the time comes you can tell your Congressperson (or perhaps by that point, your local Commissar) about it.</p>
<p>____</p>
<p><em>Overhauling America&#8217;s Healthcare Machine is available in all bookstores, and <a href="http://www.amazon.com/Overhauling-Americas-Healthcare-Machine-ebook/dp/B004DNWSNC/ref=sr_1_1?ie=UTF8&amp;m=AG56TWVU5XWC2&amp;s=digital-text&amp;qid=1297124769&amp;sr=8-1" target="_blank">at Amazon</a>.</em></p>
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		<item>
		<title>How DrRich Became Radicalized</title>
		<link>http://covertrationingblog.com/uncategorized/how-drrich-became-radicalized</link>
		<comments>http://covertrationingblog.com/uncategorized/how-drrich-became-radicalized#comments</comments>
		<pubDate>Tue, 16 Mar 2010 17:31:17 +0000</pubDate>
		<dc:creator>DrRich</dc:creator>
				<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://covertrationingblog.com/?p=166</guid>
		<description><![CDATA[DrRich is not smart enough to predict what specific bribes, threats or subversive parliamentary maneuvering will finally win passage of the President&#8217;s healthcare reform. However it comes about, DrRich thinks the result will be bad. DrRich arrived at this opinion through a long process, lasting many years, that changed his thinking on the proper role [...]]]></description>
			<content:encoded><![CDATA[<p>DrRich is not smart enough to predict what specific bribes, threats or subversive parliamentary maneuvering will finally win passage of the President&#8217;s healthcare reform. However it comes about, DrRich thinks the result will be bad.</p>
<p>DrRich arrived at this opinion through a long process, lasting many years, that changed his thinking on the proper role of our government in our daily lives. One key event within this long process, which he related in his book, first opened DrRich&#8217;s eyes regarding the essential benignity of our government as it administers its assumed role as guardian of the people&#8217;s healthcare.</p>
<p>DrRich reproduces this vignette here:</p>
<blockquote><p>One afternoon in June of 1994, I was summoned to a meeting by a vice president of the hospital for which I worked at the time.  Meetings, especially unannounced ones, are the bane of employed physicians; but this one, I was led to understand, was mandatory.</p>
<p>I found the meeting room filled with high-ranking hospital administrators, hospital attorneys, and my clinical chairman.  A gathering of luminaries such as these, especially on short notice, was decidedly rare.  As I walked into the room all eyes were on me.  I knew all these people; they’d been my friends and colleagues for years.  We’d been fighting the healthcare wars side by side. But now they studied me as if seeing me for the first time.</p>
<p>“Who died?” I asked, just to break the ice.</p>
<p>“To be determined,” responded one of the lawyers.</p>
<p>They got right down to business.  The chief hospital attorney explained: The federal government, in the guise of the Office of the Inspector General (OIG), had launched a major investigation of allegedly improper Medicare billing practices related to the use of investigational implantable cardioverter defibrillators (ICDs) in the late 1980s. This investigation, I was told, had begun as a whistleblower law suit out on the west coast, and the feds were now expanding their inquiry. The OIG had just subpoenaed records from approximately 120 of the largest hospitals in the country that implanted ICDs. We were one of the 120.</p>
<p>Now I understood why I was here.  As Chief of Cardiac Electrophysiology, research with the ICD was one of the major endeavors of my career.  The ICD is a device that is designed to prevent sudden death in patients whose cardiac disease makes them susceptible to such an event. Once implanted, the ICD recognizes the sudden, lethal heart rhythm disturbances that cause nearly instant death, and automatically delivers a shock to the heart to restore it to a normal rhythm. It is a remarkably effective device, and was obviously so from the very beginning. Seldom, in fact, has a more dramatically effective life-saving therapy ever been devised for any illness or disease.  For this reason, as long as I had access to these devices I (and most electrophysiologists), felt morally obligated to offer them to any eligible patients who were at high risk for sudden death.</p>
<p>So now I understood why I had been summoned to the meeting. What I didn’t understand was why the Feds thought we’d done anything wrong.</p>
<p>“We shouldn’t have any problems there,” I protested. “You’ll recall that we looked into the legality of billing for ICDs back in ’87 when I first started working here. And Medicare said it was okay.” While I was an employed physician (and so the hospital handled all the billing for my services), I’d had enough concern about billing Medicare for investigational devices that I’d insisted the hospital get clarification from our Medicare Intermediary (the local agent and representative for Medicare) on the matter.</p>
<p>One of the attorneys answered.  “That’s right. The Medicare Intermediary indicated at the time that there was nothing illegal about billing for the ICDs, but couldn’t guarantee they’d pay for them.  As it turns out, they’ve paid for each one we’ve implanted, and never questioned our using them.”</p>
<p>“Then what’s the problem?”</p>
<p>“Medicare now says we’ve been in violation by sending the bills,” the lawyer replied. “There’s apparently an obscure instruction in the Intermediary’s guidebook that prohibits billing for some investigational devices.”</p>
<p>“But we got clearance from the Intermediary,” I protested.</p>
<p>“And that’s the defense we’ll take. The Intermediary itself didn’t know about this instruction. But unfortunately, Medicare operates a little like the IRS.  If you call the IRS with a tax question and they give you bad advice, it’s your fault if you follow that advice. The fact that the Medicare people were unaware of their own rules, and apparently told us the wrong thing, doesn&#8217;t absolve us.”</p>
<p>“So what’s the worst case scenario?” someone asked. “That we’ll have to pay all the money back?”</p>
<p>“The monetary penalties are much worse than that,” intoned the CFO. “We’re looking at over 100 investigational ICDs that the good doctor here has implanted,” he said, glaring at me. “And at about $25,000 each, that’s a pretty penny right there.  But the Feds are also talking about a $10,000 fine per incident, plus triple damages, so we’re really looking at several tens of millions of dollars we can’t afford. What’s worse, the fact that the OIG joined the whistleblower’s actions suggests that they’re going to claim we intentionally violated Medicare regs – which could mean jail time.”  He was looking at me again when he said “jail.”</p>
<p>“Don’t worry,” a vice-president said to me sympathetically. “We’re all in this together.  We’ll help you as much as we can.”</p>
<p>“What do you mean, <em>you’ll</em> help <em>me</em>?” I shot back.  “I just work here. You do all the billing, keep everything you collect, and pay me a paltry salary.”</p>
<p>“Like I said, we’re all in this together.  But those bills do go out under your name, Dr. Fogoros.  As far as Medicare is concerned, they’re your bills.”  As I’ve since learned, when the feds begin pointing their fickle finger, it’s customary for everybody to dive for cover.</p>
<p>For the next two years my life was plagued by a series of complex machinations – legal probes and parries – made in response to the Feds’ investigation of our supposed “fraudulent” submission of bills.  I won’t bore you with the details – I’ll just hit a few highlights.</p>
<p>First, my hospital threw in with two dozen other large hospitals from all over the U.S. that were also affected by the OIG’s subpoena, and together we hired a fancy inside-the-beltway law firm that specialized in healthcare law.  These attorneys ultimately determined that the obscure regulation the OIG was invoking against us had itself been illegally promulgated, and therefore should not be enforceable.  Accordingly, our hospitals sued Donna Shalala, Secretary of Health and Human Services (HHS) in federal court to prevent her from enforcing this obscure, previously unknown, and (we held) illegal rule.  “We have maybe a 50-50 chance of winning this suit,” I was told by one of our attorneys, “but it won’t be settled for years.”</p>
<p>While all this was going on, the subpoenaed hospitals also lobbied Congress to act on the essential unfairness of it all. “Look,” the hospitals said, “we’ve got one agency of the federal government (Medicare) coming after us for doing research that had been duly approved by another agency of the federal government, the Food and Drug Administration (FDA). We need laws to make the Feds behave consistently. When the FDA approves clinical research, Medicare should allow patients to avail themselves of that approved research.”  Finally, in November of 1995, Congress passed just such a law.  “So we’ve won!” I exulted when the hospital attorney called me with the good news.  “Not exactly,” was the reply, “The OIG prevailed on Congress not to make the law retroactive.  So the OIG is still coming after us for what they say we did in the 1980s.”</p>
<p>Then, in January of 1996, the Feds launched a new attack.  Senator Roth, Chair of the Senate Finance Committee, decided it would be in somebody’s best interest to have a showcase hearing, highlighting the grievous crimes against Medicare that are being promulgated by avaricious physicians and institutions like me and mine.  So the Permanent Subcommittee on Investigations sent subpoenas to the CEOs of several hospitals from the OIG’s list of 120, mandating that they appear before that committee on Valentines Day (i.e., heart day) to answer questions regarding the allegations that we’d committed Medicare fraud in our use of the ICD.  It was to be a real circus – it was to be covered on C-SPAN, with major networks in attendance and lots of national publicity.  The works.</p>
<p>Immediately, there was a mad rush to have the subpoenas quashed.  All the hospitals from states whose Senators were members of the Finance Committee managed to be excused from appearing.  At the end of the day, only four hospitals remained.  Mine was one.</p>
<p>I was sure my career had ended.  My family, friends, patients and colleagues were about to see the CEO of my hospital appearing before a hostile Senate Investigational Committee answering questions on the Medicare fraud that I supposedly had committed.  I knew it didn’t matter that I hadn’t done anything wrong.  Truth is only a compilation of some facts, whereas perception is everything.</p>
<p>I spent two days in Washington helping the fancy beltway lawyers prepare our CEO for his testimony.  I failed miserably in my emotional pitch to be allowed to testify in his stead (the CEO had been subpoenaed, not me; and besides, anyone who seemed eager to testify before Congress must be crazy enough to get us in trouble).  But at least I managed to convince the CEO that we should take a hard line with the subcommittee. After all, we had truth, righteousness, ethics, and possibly even the law on our side.  We shouldn’t allow ourselves to be intimidated.</p>
<p>Each witness was to be permitted to read a statement into the record before the questioning began.  Our attorneys had prepared a 10-page statement that was vague, wishy-washy, filled with legalese, and as nearly as I could tell, didn’t deny wrongdoing as much as it promised we’d be more careful next time.</p>
<p>So I prevailed on the CEO to tear up this lawyered-up document and instead use a one page statement that I wrote for him, saying, in essence: 1) We implanted investigational ICDs in Medicare patients because they were at high risk of dying without them, and to withhold such life-saving devices when they were available to us would have been unethical and would have constituted malpractice. 2) Before implanting the investigational ICDs, approval for their use was obtained through the FDA.  3) Before billing for the investigational ICDs we asked for and received clearance to do so from our Medicare Intermediary. 4) The records and documents we sent Medicare in support of our billing for these ICDs clearly indicated that the devices were investigational, and yet Medicare reimbursed us each time, over a period of several years and without questioning our actions or our bills.  5) The rule Medicare is now invoking was unknown to us during this period of time, and also, apparently, was unknown to the Medicare Intermediary.  6) In any case, as we have asserted in federal court, that regulation was illegally promulgated, and is therefore not a legal rule. 7) Congress has agreed that regulation to have been at least an ill-advised one, as evidenced by the fact that Congress recently passed legislation that now renders that regulation illegal, whatever its previous legality. 8] If they now assert that our actions constitute fraud, then the message the OIG, Medicare and the Senate subcommittee is sending to the public is that doctors and hospitals are expected to discriminate against the elderly, and will be called to task by the federal government if they refuse to do so. 9) Thank you for your attention.</p>
<p>The hearing was indeed quite a show. The whistleblower himself was the first witness, and he entered the chamber wearing a hood to hide his face, sat behind a screen, and spoke with his voice electronically distorted.  This was the first time in history, I was told, that a witness had appeared before Congress disguised in this way, except in hearings featuring Mafia turncoats, drug lords, and the like. The implication, I presume, was that I and my fellow cardiac electrophysiologists were no less evil or potentially violent than other, more famous sorts of felons; and that if we learned this guy’s identity his life wouldn’t be worth a nickel.</p>
<p>Then it was us perpetrators’ turn to testify.  The CEOs of the other three subpoenaed hospitals, after reading their lengthy, lawyerly and seemingly contrite statements into the record, were grilled mercilessly by the Senators of the subcommittee. Our CEO was the last witness.  Once he read our brief but much more aggressive statement, the Senators seemed not to have any substantial questions for him.  His testimony was over almost before it had started. Our hard line had paid off.</p>
<p>One more blessing occurred on that day.  Somebody apparently found some Whitewater documents that weren’t supposed to have existed, so ten minutes before the hearing, C-SPAN pulled out and went running down the hall to televise the Whitewater doings. All the other news media went with them. Our hearing, despite the big build-up, the dramatically disguised whistleblower, and the fact that it was Valentine’s Day, barely made the news. The lack of national news exposure (and as a result, the lack of local news coverage) spared my reputation and that of my hospital.</p>
<p>Then finally, later in 1996, a federal judge ruled in our favor in our suit against HHS – the regulation Medicare was invoking, the judge ruled, had indeed been illegally promulgated.  The OIG still didn’t give up, but in the end offered a settlement deal to the hospital for a mere million or two (which, by this time, was less than we had already spent defending ourselves), and nobody would have to admit to wrongdoing or go to jail or have a criminal record.</p></blockquote>
<p>DrRich is not complaining.  This episode could have turned out a lot worse.  And the whole ordeal provided him with enough amusing anecdotes to last a lifetime. But having the Feds coming after him for more than two years was truly an eye-opening experience.</p>
<p>As DrRich sees it, the rightness of his actions seemed completely obvious. He had used those ICDs because his high-risk patients needed them, and from every indication their usage was legal and proper. But, in the service of his patients he had failed to discover a vague, obscure and difficult-to-interpret rule that existed in the Medicare Intermediary&#8217;s guidebook (a guidebook to which he had no access). As a result DrRich had been caught up in the  Fed&#8217;s great anti-fraud initiative.</p>
<p>For over two years DrRich could never be sure of what was going to happen to him. There were periods of days at a time, usually just after another round of legal punches and counter-punches, when there was little else he could think of. (Would he lose his job, his career, his reputation, all his worldly possessions – would he go to jail?) During those times DrRich was of little use to anybody – colleagues, family or patients.</p>
<p>Of course, in the end it all turned out just fine – but the reason for the favorable outcome wasn’t that the Feds finally agreed that DrRich&#8217;s actions had been appropriate and non-fraudulent.  It was because his lawyers had found a legal technicality in the Fed’s own actions.  Had it not been for this entirely fortuitous discovery, who knows what might have happened?</p>
<p>So DrRich has seen a side of the Feds that most doctors have not, and he is willing to admit to a more robust paranoia on the subject than most would have at this moment. The way it looks from here, the government – at least sometimes – is willing to go to great lengths to prove just how rife with fraud is our healthcare system, and, once the Feds set their sights on an alleged perpetrator, they are pleased go to equally great lengths to bring that supposed perpetrator down.  At least sometimes they’re willing to base their prosecution on bad rules that are poorly written, illegally promulgated, and hidden away in obscure manuals; they’re willing to ignore the fact that the alleged perp had relied on advice from the Feds’ own agents before proceeding; they’re willing to summon that perp before a televised, circus-like inquisition to be publicly humiliated for actions that, just a few months earlier, they themselves had passed explicit laws to endorse; and they’re willing, when all legal justifications for their persecutions have at last been taken away, to make a final demand, that some might consider extortionate, for a cash payment before they’ll go away.</p>
<p>At least, that’s how it looks from here.</p>
<p>It is not DrRich&#8217;s position that the Feds have been engaging in an unmitigated orgy of illegitimate anti-fraud activities over the past dozen years or more.  He is sure they have not.  Indeed, most of the anti-fraud activities the Feds have undertaken have undoubtedly been legitimate and useful. Furthermore, DrRich fully understands that any get-tough government initiative – whether it be anti-fraud or anti-terror – has got to have teeth, and that it is natural if regrettable that occasionally, a few innocents will be ensnared in such efforts.  DrRich admits the possibility that his frightening experience may represent nothing more than the collateral damage that will naturally happen whenever the sovereign power finds it necessary to wield its great hammer in the overriding interest of the public good.</p>
<p>But forgive DrRich if he believes it is more likely that the experience he has just related represents instead an early glimpse into the government&#8217;s methods of intimidating and controlling doctors who, without these kinds of necessary checks, will, in caring for their patients, simply keep doing whatever they’d like with the government’s money. DrRich happens to believe that the utter unpredictability, arbitrariness, doggedness and seeming absurdity of the government’s actions in his own case was not accidental. These techniques are essential to the Feds&#8217; goal of keeping their prey (i.e., physicians) intimidated, completely off balance, and in their thrall.</p>
<p>As evil as we all know the health insurance industry to be, DrRich (and any physician who knows anything about it) would much rather attempt to appeal to/defy/maneuver against/manipulate private insurers for the benefit of their patients (since the worst these entities can do is withhold payment), than do anything whatever &#8211; either for the patient&#8217;s benefit or for any other reason &#8211; that would risk engendering the enmity of the great, slavering, merciless sovereign authority.</p>
<p>Just a thought, as we embark on our new government-controlled healthcare system.</p>
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