Today’s healthcare policymakers are focused on their favorite boogeymen: physician compensation, biopharma, and new medical technologies. The real villains are ‘benefit managers’ and administrators’ who lurk in the shadows extracting 25 cents of every healthcare dollar. The reality is, in fact, in plain view if you look: administrators have grown 3200% while physicians have grown 200% over the last two decades; physician compensation is down, net of inflation. Admin comp is up, way up. PBM (pharmacy ‘benefit’ ‘management’) revenue has outstripped Pharma revenue growth in the last 20 years. Pharma extends life and improves quality of life, and extends working lives of taxpayers. PBMs - who knows… People grasp onto things they understand like doctors and drug companies. ‘Administrators’, ACOs, VBC, VBC, PBMs, spread pricing are more challenging to grasp and are allowed to obsfucate people about what they do from the shadows. America’s healthcare landscape is burdened by ‘administrators’ and ‘managers’ who extract rents from an otherwise highly innovative system. https://lnkd.in/gK3mCme4 https://lnkd.in/gPC9vKB9 DocVader puts it aptly: ‘thoughts and prayers’ https://lnkd.in/gUfnSXGV Technology is one answer. Physician and nurse leaders are another. If your company is about literally decimating administrative costs in the back office or front office of healthcare, I applaud you. As Americans we need this. Return care to the people and shrink administration and management bloat across the system. Medicare deserves this and so do the commercially ‘insured’.
I could not agree more. There is no need and no rationale for 7+ levels of management above physician specialists delivering care to patients. Yet the administrative burden on physicians’ day to day work isn’t decreasing. Who wants to go through medical training anymore?
Thank you for posting this Robert Mittendorff, MD, MBA- Most telling is that the largest estimated area of loss in the US healthcare system is with Claims and Administrative waste at $248 Billion. Compare that with the old chestnut of physician related inefficiencies at $8 Billion. It's unethical, and close to fraudulent to allow administration to focus on this area at the expense of the other different areas of waste. Full post and slides here: https://tinyurl.com/4vcrk9sx
If government really wants to cut the national healthcare expenditure, why don't they target more Meaningfully and cut ~73% of the cost and associated Systems, middlemen, third parties? #PBMs
It's true that administrative bloat can be a major cost driver in healthcare. Focusing on streamlining these processes and empowering doctors and nurses could be a significant step towards a more efficient system.
Parkinson’s law is in full effect https://en.m.wikipedia.org/wiki/Parkinson's_law
Understanding the divide between the people who manufacture and produce the products of healthcare (clinical outcomes) and those that serve to extract resources from healthcare to pay the executives and bureaucrats profitably.
Bravo, Robert. I've been trying to put a name to this feeling amongst physicians. If you've come up with a name for it, I'd love to know it — but I know exactly what you're talking about.
Excellent exposé on the rising healthcare system costs. Many thanks to those trying to tackle the leeches behind the scenes.
"Administrative bloat" sums it up pretty well
Healthcare Strategy & Operations
2moJust FYI - The chart you’ve linked to there has been debunked many, many times. It doesn’t stand up to even the most cursory empirical scrutiny. One such debunking example: https://www.motherjones.com/kevin-drum/2019/06/join-me-on-a-dive-down-the-rabbit-hole-of-health-care-admin-costs/