Wall Street Journal reports that the Relative Value Scale Update Committee (RUC), composed of 29 doctor's, make key decisions on how to spend $500 billion taxpayer dollars devoted to Medicare. While this panel has better representatives than a round table of politicians, there is a big problem with a small group that decides on how to spend money that does not belong to them. The
fault does not rest with doctors. This ismerely an example of how an overextended bureaucracy is continually set to destroy all remnants of a quality medical system. Work that has been in works for half a century, since the establishment of "government medicine" of Medicare.
In principle, the idea of an expert decision appears logical. But experts are not omnipotent. There are multiple factors that come to play that go into the price and would be better handled if the market dictates these terms. The problem is not that a panel exists, it is necessary with government adulterated medicine, it is that there should have never been the option for a panel to exist. It simply over complicates a system that was once determined by a physician - patient agreement. For instance, there was a time when a patient settled his agreement with a doctor for routine check-ups at a set cost determined by the physician. Now, in its place is series of administrative procedures that even stumps the people that have written it into law. Nobody has a clear depiction on what prices dominate what because there is no clearly defined market price for any given procedure. We are working out of chaos and I am getting confused as I write this blog....
Let me make it very simple. Doctor's are professionals who can set their prices at a competitive level that the market dictates. If they do not wish to expend the energy to set their own prices than they can hire a market specialist, just as a sports agent, who works for his physician to obtain the most competitive prices. Standard pricing set by a group of panelists proves to be just as inefficient as a small group of athletes that set the salary for every given position. Imagine that! All the old timers like Michael Jordan, Jerry West, Isaiah Thomas, Kareem Abdul-Jabaar setting standards on the amount of money a individual sports star is to make.
Seems a bit ridiculous to me.
Wednesday, October 27, 2010
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