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Mar
13

What I learned from my 7 years in women’s clothing

By AlexFair Posted in Practice Innovation | No Comments »

Yup, it’s true.  I once took almost 8 years off from the healthcare industry when I ran much of a women’s clothing company.  I started by designing their warehouse systems and was given one department at a time until I had 13 departments and 137 staff members report to me.  I was involved in and improved every department except 3 and when I tried to help them improve those departments I found that despite the fact that I had reduced costs and improved performance in all my areas by 2 to 2,000 fold based on six-sigma techniques and plain old common sense, for these “Sacred Cow” departments I could not help.  Every week or two I would come up with a new idea, research it, and present it to the owner and his executive team.  Initially my idea implementation rate neared 100% but when it dropped to less than 5% and the company choose to stop innovating, I gave up.  I retreated from the board room and waited for the inevitable while I planned my return to healthcare and looked forward to a Summer off with the kids.

I loved that company and the clothes they made.  More specifically, my wife loved the clothes and she looks great in them to this day.  The people on my team were world class and the real reason I stayed so long.  Bo, Daniel, Chiney, Madaline, Johnny and over a hundred others made me believe in the American Dream in ways that I never truly understood until I saw them go for that brass ring and get it day after day.

Now, almost 4 years exactly after I gave up on convincing that CEO, his company has declared bankruptcy.  His sacred cows were turned into hamburger by the debt holders.  It is a sad day in my personal history and I tell this story not to crow, but to make a statement about self-disruption and innovation.  Any company can make this mistake.  Most famously, IBM turned down the opportunity to buy Xerox in the 50s, Digital in the 60s, and even thought the personal computer was a waste of time for several years, letting little upstart Apple own the market into the early 80s.  My old company did the same thing, ignoring the upstarts and the change that was inevitable while new companies came in and had a field day.  Even the best companies can make mistakes and the best companies can rebound as well.  IBM did a few years later when they entered and came to dominate the PC market by 1984.  I wish my old company luck and from what I hear, they finally got the memo – from their bankers.  For the rest of us the message is clear – innovate or risk the meat grinder that comes with a loss of control.

This applies equally to medical practices.  Every day I talk to Physicians that are struggling to make payroll or are considering accepting that offer from the hospital’s practice acquisition team or other consolidation play.  Doctors are working harder all the time for less pay and more administrative headaches and paperwork.  EMRs are great, but they are not really labor savers for doctors and the often disrupt the clinical exam with data entry.  The offers from IDNs and health systems are attractive but we all know where that road leads and giving up control of one’s practice is not high on the list for most doctors.  So what is a small practice to do?

Well, of course I would say “Innovate!”  Innovate in your practice.  Whether this means moving to electronic records, installing a Kiosk for check in, adding a patient portal, or moving to a membership model, there are myriad ways to get paid better and faster with less tedious administrative work than ever.  You also can add services that make sense or focus on your “Centers of Excellence” that offer outstanding services for reasonable fees.  Of course, increasing your number of patients that pay you Directly and Fairly through FairCareMD is never a bad thing either.  Automation for your practice has arrived, addressing marketing, contracting, communications, making copies, collecting payments and all the non-medical work of running a practice – leaving the actual patient care experience intact or improved.  It is a shiny brand new day for your practice if you want it to be.

So take a lesson from my former life in women’s clothing, Innovate or Give Up Control.

And to all my great staff from those days, you have my number.

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Jan
25

Get Your EKG for $100 Here

By AlexFair Posted in Affordable Care, Consumer-Driven Care, Doctors who want to be paid fairly, Free Market, Health Care Pricing | No Comments »
Coupon good for one EKG by board certified Physicians for $100, Insurance accepted

Coupon good for one EKG by board certified Physicians for $100, Insurance accepted

NBC Nightly News did a segment on how Groupon and Living Social have saved consumers over half a billion dollars on medical and dental care already.  One physician stated he got over 1,300 new patients in 2 days.  Very impressive numbers.  We have only helped a few hundred thousand folks here so far but this is real medical care, not just teeth whitenings and spa days.  Nonetheless, the data are compelling.  When patients and doctors connect on “Deals” on our site we help consumers (aka patients) save up to 75%, about half on some things like colonoscopies, and about 37% on average.  Doctors get paid better and faster too.  

Thank You MSNBC!

While I do love a good coupon, there are three problems with coupons for healthcare (and how we deal with the issue here on FairCareMD):

1. Timing: medical needs are inconveniently unpredictable.  Coupons expire and “Group Coupons” would not work for something like migraine sufferers sincepeople in severe pain aren’t waiting for a coupon.   At FairCareMD we have deals everyday or make your own.Have a migraine now, see Dr. Audrey Halpern, world class headache specialist!

2. Respect: Doctors don’t want to be on coupons.  It is a long way to go from being worshiped at the temple to being a Daily Deal with your picture on a coupon.  Further complicating matters, there are real and implied penalties for going too low with pricing in public that could include significant fines and even losing your license if you charge less than the rate Medicare allows.  While this is easily mitigated with a solution like FairCareMD, most doctors are reluctant.  Dentists, yes, Physicians, no.

3.  Quality is King: My grandpa used to say, “don’t get a cheap Lawyer, Accountant, or Doctor” and he was right in most cases.  What he didn’t appreciate was the way medical pricing works.  The same doctor that charges $250 for an office visit is being negotiated down to $37 for that same visit by gigantic insurance companies.  Go ahead, ask your doctor, 95% have this problem.  Smart ones are getting listed on FairCareMD and firing the worst insurance companies, trading low paying contracts for direct paying patients who pay fairly and directly.  But I digress, quality is the topic.  Tis is why we incorporate every quality metric we can find into Physician’s profile.

4. Stark Laws: There are laws (Stark and Anti-Kickback laws) that prevent Physicians from paying for referrals.  Originally created to prevent paid referral networks from flourishing, these laws are widely circumvented by hospital networks and insurance companies.  Typical of medicine, the letter of the law is followed but the spirit is lost in translation.  The rates that Groupon charges, upwards of 25% and as high as 50% of the fee, if used for real medicine, would be illegal.  This is why FairCareMD is freemium – free for doctors in most cases.

Despite my reservations, I do find it very gratifying to see couponing working in healthcare, even if it is currently largely for dental and cosmetic work.  It bodes well for patients and doctors in the near future.

Thank you to the hundreds of doctors who list their services on FairCareMD. Great doctors willing to charge a fair price when people go directly.  Doctors like Marina Gafanovich MD and Lisa Eng DO who are really leading the way.

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Dec
30

Is it Fair?

By AlexFair Posted in Affordable Care, Cash-Only Medicine, Health Care Pricing, Physician Sentiment, Pricing Transparency | No Comments »

Is it fair that people who pay immediately and directly are charged twice to ten times as much as insurance companies are for the same exact service from the same doctors?

We helped a couple from Montana that just wanted to check to see if they had colon cancer. They have insurance, but their deductibles are so high that they wind up paying for most of their care directly. They asked us to find them a fair price for the screenings. We tried and tried, but we could not find a price less than $3,300 within a hundred miles when the national average price paid for the service is about $2,300. Meanwhile, on FairCareMD the average price for the same service is $1,209, or 46% less than the national average. Sunnie called the couple to say, “sorry, we can’t help you” but after a short talk, she learned that the couple was visiting the East Coast soon. With a stronger network back East we helped the couple get what they want for well below average in the city they were visiting, saving them over $3,000!

Which leads me to the next question:

Is it fair that doctors don’t feel safe sharing reasonable fees with the public?

No doctor we have spoken to likes the lack of pricing transparency, but many don’t feel they have any choice. Warm, caring, wonderful practices like the one that helped our couple from Montana fear that insurance carriers will take advantage of low publicly published pricing to lower their rates.  Worse yet, they fear that they will be charged with Medicare fraud just for publishing a fair price online.  This is exactly why we designed our pricing system the way we did – with a list price that not bad, but not as low as possible.  What you don’t see is that behind the scenes there is a lower price that, if you propose it, the system will automatically accept.  While not everyone uses this price masking feature of our system, it is there to ease providers into the hot tub of price transperncy that is FairCareMD.

For the providers who have been on FairCareMD long enough to know that it is not dangerous (we have had no issues to date with the basis of this fear) you can find great deals for real care here too.  Many are what you would call a “Special” so that they are not comparable to a typical service.  This is a second tactic for dealing with this concern. Fact is that deals made on FairCareMD are never comparable to those paid for by insurance or the government.  This is because they are all for care paid for at the time of service without a lengthy, laborious collection process.  This is “substantively different” from what your insurance company pays for.  Speaking of which…

Is its fair that up to about 35% of your insurance premium has nothing to do with your medical care?

Did you really want to pay for insurance company marketing, administration, network management, “care management”, contracting, executive compensation, and up to 14% profit?  Does any of that have anything to do with keeping or getting you healthy?  The inefficient marketplace and system is a huge burden on those paying for insurance.  In our experience we cut about 30% of the fat out of the system just by enabling direct contracting for care.

Much about how medicine works today is unfair.  We are bringing fairness to medical pricing.  We would love it if you joined us in this effort..  You can Register as a patient, Sign up as a provider, or Join us as a Market Maker to bring FairCareMD to your town and make your own network.  We need all of you to make this work, so sign up today!

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Nov
04

Clay Shirky on How to Massively Change Healthcare

By AlexFair Posted in Affordable Care, Consumer-Driven Care, Doctors who want to be paid fairly, Evolutionary Health, Video | No Comments »

Clay Shirky Keynote – Health 2.0 SF 2008 from Health 2.0 on Vimeo.

I wish I watched this video before I started FairCareMD.  As it is, I stumbled upon it last night while looking for something else.  Clay talks about the power of the people, in aggregate, to lead change.  Here he addresses this effect in healthcare and prophesizes changes that we see beginning to reshape healthcare.  If you don’t have 19 minutes to watch the video, the best parts are in his examples.  He talks of a group of cancer patients that wanted to interview an oncologist for inclusion in their service.  He speaks of a orthopedics medical device manufacturer that tried to address a design problem by covering it up and “retraining” doctors.  One got annoyed, posted his thoughts, and a few weeks later everyone knew the device had a real problem and a class action suit was filled.  He talks about the Catholic church’s historical success in covering up pedophile priests and why that method no longer works.  And then he talks about healthcare institutions that resist the changes that are coming from Health 2.0 organizations and ePatients that would have them change for the better.

Most importantly, he predicts that the people will lead the physicians, hospitals, insurance companies, and even our government into the new era of healthcare.  2010 saw the highest insurance cost increases in a decade and 2011 looks like it will follow suit.  More people are figuring out that the jig is up for insurance and coming here and doing other things like setting up clinics on their campuses.  A great story about WeCare TLC was published in Inc Magazine the other day.  A manufacturing company, in response to the high cost of healthcare, opened an on site clinic and saved over half.  Even better, their employees were healthier and there were no “surprises” like heart attacks and strokes in 2010, typically the result of non-care, what usually happens when patient responsibility costs go up.

We at FairCareMD have embraced this concept, allowing the patients to lead.  We already let patients request fair prices from their doctors, but our next step takes it further and automates the process.  Just last night a patient called into our help line and said, in effect ‘Why am I paying $5,700 for an ACL surgery when I can get it for $3,200 on FairCare – and I have insurance!’  Needless to say, she is questioning the wisdom of insurance and going direct now.  Later today we will call all the best orthopedic surgeons in her area and ask what they will charge for a patient going direct.  At least one will be happy to provide a fair price because he or she gets paid better directly than insurance companies will pay for the same exact procedure.  FairCareMD offers this as a free service to get the message out.

Thanks Clay for the explanation of why what we are doing is working!  Your talk presaged the ePatient and #OccupyHealthcare movements.  The question is, when will that tipping point be achieved and when will the institutions that are failing stop failing to notice that the world has moved on.

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Oct
04

Too Important to Fail

By AlexFair Posted in Affordable Care, Consumer-Driven Care, Doctors who want to be paid fairly, ePatients, Evolutionary Health, Health Care Reform, Hospitals, Physician Sentiment, Rejecting Insurance, Social Media, Wellness | No Comments »

In the film starring Denzel Washington, John Q, holds a hospital hostage to save his son's life and while this is an inspirational story with an improbable happy ending, one can only wonder how many lives would have been lost in real life were this to happen.

The Occupy Wall Street movement that has dominated news channels and social media for the past 5 days is only one guillotine short of a revolution, but what I find most disturbing is that it is essentially an angry group of citizens with no clear agenda. Anger and Anarchy are destructive, what is needed here is creative disruption, not just reactive disruption.

The broken healthcare system also makes many of us frustrated and angry and indeed there is some talk of an OccupyHealthcare movement, but there is a problem with such a disruption in healthcare.  Healthcare is Too Important to Fail.  We are talking about human lives and while I think that there are major changes that would be addressed in the wake of radical action, anything that disturbs the care delivery system will have an immediate impact on lives, and that is not acceptable.

Until there is a clear plan, a set of directives, an Occupy Healthcare movement must avoid care disruption.  I know it is trite and overused, but let’s start by taking a line from the Hippocratic oath, primum non nocere or ‘First, do no harm.’

So this means no camp outs, no boycotts, no sit ins, and certainly no Dog Day Afternoon/ John Q inspired moments.

There would appear to be some hope though.  Healthcare Reform (PPACA) has many provisions that are intended to level the playing field.  Unfortunately though, our fractured and misaligned industry players have been true to form.  Insurance companies are playing all the angles, earning record profits and raising premiums while the actual utilization and cost metrics decline.  Hospitals are gobbling up small practices at a frightening rate in anticipation of renewed pricing pressure with a circle the wagons (and capture the referral base) mentality, as usual.  Meanwhile, the majority of Physicians have largely kept their heads down and just kept doing what they have been doing for the past 30 years.  For example, only 30 -35% of Physicians have taken advantage of the huge incentives to implement EMRs, one solution that could vastly reduce the cost of care.  Patients, on the other hand offer a real glimmer of hope.  More are self educating than ever and millions are getting involved, adopting self-care proactive strategies, eating better, and even shopping for care.  The e-patient movement provides hope for us all because where the patients go, the industry will need to follow.

Another reason to hope are startups like ours, Practice Fusion, DrChrono, Register Patient, Your Nurse is On, HealthcareBlueBook, and a thousand others that are innovating to solve the myriad problems in healthcare, trying to beat the clock before incentives, time, and the money completely runs out.

To take the Electronic Medical Record example again, I know I used to spend about $50,000 a month running the IT for 150 doctor’s offices and two large medical billing companies.  Now, several free EMRs are available that improve medical office efficiency and require only an iPad to run.  Now that is revolutionary!  Same thing with Register Patient, a cloud based solution that streamlined the data entry and appointment making process for doctors and patients.  Communication tools like Talk About Health let patients learn from each other and expert providers, saving everyone time and money in appointments are leveling the playing field.  And, of course, FairCare taking the 30% that insurance companies waste and giving it back to doctors and patients like some sort of Keynsian Robin Hood, is making a real difference.  Want to cut the cost of care by 30% or even 50%, this is imminently doable.  I know because we do it every day here.

So here is my OccupyHealthcare Manifesto:

Doctors and Patients, if you are sick of how the system works, do something about it.  Don’t wait for failure, prepare for the inevitable and get ahead of the wave.

Doctors, Practice Administrators, and Hospital Executives:  Embrace innovation that makes care more affordable and improves your bottom line.  You can activate a free account on any of the above services, reduce your cost of doing business, reduce overhead, and pass the savings on to the patient.  Medicare will be bankrupt soon, so this is a survival tactic as well.

Patients:  Utilize these automated systems and favor the doctors who also do.  Examples: Macarthur OBGYN, Howard Luks, Qliance, One Medical, Care Practice, ExclusiveMD, or any of the doctors on FairCareMD are these innovators, so seek them out.  (If you know or are one, please use our recommend a doc feature and we will invite her or him for a free account.)  Also, use the new systems and websites to make care more efficient and self educate as much as possible.  Don’t know where to start? Just watch this video of ePatient Dave or read a few posts by Regina Holliday.  We are all in this together, so meet your doctor half way and make the job easier.  For example, if you are overweight, try to reduce your risk of diabetes or heart attack by seriously dieting.  Most importantly, take responsibility and stop thinking someone else will pay for your health care.  That is unfair thinking and not realistic.  Someone always pays.  How much is paid depends on you, to a large extent.

Medicine is too important to allow to descend into anarchy or walled communities of care where only the rich can afford to be well.  This boils down to…

The first two tenets of #Occupy Healthcare:

1. Do No Harm, do not disrupt the delivery system

2.  We all must Embrace Innovation that Redhttp://blog.faircaremd.com/wp-admin/post.php?post=1342&action=edit&message=1uces the Cost of Delivering or Receiving Care

The rest us up to you.

The Innovators will keep on innovating.

The ePatients will keep on getting involved in their care decisions and making the Physican’s job faster and easier.

Proactive providers and institutions will continue to step up and reduce the cost of care.

Some proactive insurance companies will continue to embrace methods that not only make investors happy, but also make people healthy (no, they are not mutually exclusive goals.)

So what will you do to Occupy Healthcare?

Will you evaluate a new system?

Will you open a Surgical Center?

Will you learn everything there is to know about your problem?

Will you request an online appointment?

Will you offer care for a fair fee?

Will you start a wellness program in your club, work, or family?

What will you do?

If we will all to a little, we will create a radical change that will Save Healthcare, rather than just Occupy it.

Thank you for reading and your support.

Comments are welcome here or through twitter at @FairCareMD or follow Hashtag #OccupyHealthcare.

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