Tuesday, February 2, 2010 | |

Preventing the Clash of Two Cultures

A noted British scientist and novelist, C.P. Snow, argued in a famous 1959 lecture that social progress was confined by conflict between two cultures—the sciences and the humanities. His paradigm has been applied to other polarized relationships and is viewed as a helpful model for understanding communications failures that prevent competing groups from getting together to solve serious problems.

Recent events show that elected officials in Washington are not close to solving the serious problems of health care. Hence, it’s time for a “two cultures” analysis. Having concluded that collaborative solutions must be crafted ASAP in the private sector, I believe we should focus on cultural differences between providers and payers. Understanding these differences is a precondition for creating the efficient and effective health care we ought to be getting for 17% of GDP.

To launch discussion, I suggest that provider culture enshrines a sacred doctor-patient relationship centered on hospitals (AKA doctors’ workshops). Provider culture seeks to expand facilities and technologies that allow physicians to practice medicine at the state-of-the-art—that is, to do everything possible for every patient. It fiercely resists economic considerations because money is not supposed to influence a doctor’s decision. Provider culture can be traced back several thousand years to Greek philosophers.

Payer culture, on the other hand, is uniquely American and not even a century old. Unlike every other country in the Western world, the United States formally rejected government finance mechanisms for health care in the decades surrounding World War Two. The third-party payer is as American as apple pie, purposefully created as a private business to channel funds from purchasers (mostly employers, until now) to providers. Payers can only survive by generating revenues in excess of expenses. Requiring payers to spend more—the final focus of politicized reform in 2009—compels them to raise revenues or to develop new “work-arounds” that make the medical marketplace even more inefficient.

The clash between provider and payer cultures is predictably dysfunctional. It pits two groups of generally good people, doing the jobs we expect of them, against each other in a negative-sum game. If disaster is to be avoided, creative and visionary leaders must find ways that the two cultures can work together to improve the health of Americans. Given today’s political gridlock, can you think of any more important reform than reconciling providers and payers? If not (like me), what steps would you take to align the two cultures for producing consistently good health care as inexpensively as possible?

2 comments:

Dave Lamb said...

I believe that universal health care is a necessary goal. The US gets far less result per healthcare dollar than the Europeans do. However, there are two discrete populations. Those who are covered by government-employee and large-employer plans get better results than the Europeans (never mind the cost). Those who lack coverage get horrible results that account for the dismal average results.

In order to solve the problem, we need to de-fang two huge special interests, which I don't believe congress has the will to confront.

The first special interest is the Legal industry. We should implement a national accident-compensation scheme where accidents (whether malpractice or random accidents) are compensated on a fixed schedule ($x for lost eye, $y for lost life, etc.) This could be government administered - it is one of the few types of activities that government can do well. No attorney fees, no insurance company profit margin.

Malpractice lawsuits have done little if anything to curb the practice of inept physicians, and physicians lack the will to police themselves. States should have licensing boards, made up of a mix of doctors, nurses and scientists/engineers, where doctors are a minority on the board. Complaints about doctors and any doctor who generates excessive accident compensation would be investigated by the board, which would revoke licenses of those deemed insufficiently competent.

The second special interest is the Pharmaceutical Industry. We need to prohibit advertising of prescription medicine. It drives up demand in a system where cost doesn't act as a demand moderator. Drug advertising is creating a nation of hypochondriacs. The money spent on advertising would add much more value to our citizens if it were spent in R&D.

If these two problems aren’t resolved, we will never be able to afford a national insurance scheme. If they were tackled, universal coverage would be obtainable and affordable, but only if well designed.

Governments have never been effective at providing service. Think about the effectiveness and efficiency of the DMV. Now imagine healthcare being provided by a similar bureaucracy! We should all now be convinced that the “Public Option” is a recipe for disaster. If you aren’t convinced yet, look at how much money Tony Blair poured into the British NHS and how much quality improved. The money went straight into increased salaries with limited effect on service. The ideal design would be a voucher system. Every citizen should be able to select an insurance plan by a private provider, register, and have the government pay on their behalf. Insurance companies would be free to design different plans that compete for citizen’s business. A regulator could be set up to create guideline that all plans would have to meet.

The cost could be funded by a combination of employment tax and income tax. The employment tax would be equal to the average per-employee cost of the largest employers in the country, which would be applied through the FICA mechanism and replace the medicare portion of FICA. Increased income tax would have to make up the rest of the cost that couldn’t be covered by controlling costs. (Costs could be controlled so that there would be no need to increase income tax. Whether Congress has the will to do it is another story.)

If we really wanted to go out on a limb, we could institute a tax on lawyers and use it to subsidize medical school students. If there were more doctors, with less student-loan debt, perhaps competition would force down fees.

The problem could be solved. However, I for one, am not optimistic that our congress people can prioritize national interest higher than their own lobbyist receipts and bashing the other party. I fear, that if we ever get universal coverage, it will be at the cost of putting the U.S. on a fast-track to become an economic has-been like Italy or Greece.

Anonymous said...

When two opposing cultures clash I suppose that we should refer back to what we learned on the playground- compromise makes playtime better for everyone.

Providers: Should focus on providing less care in the hospital and more care via alternative methods.

Payors: Should focus less on the traditional FFS payment model and more on alternatives like the medical home and high deductible insurance.

Both should agree to common methods for recording/reporting/sharing health information.

Mainly both cultures should come to the table ready to compromise. Great post!