Monday, January 04, 2010

The Mayo Clinic decision signals the health care bill is "One Big Ass Mistake, America"

I've been on a little hiatus but hope to get back to semi regular output here on PS 101.

Since I last wrote, the Senate voted their version of the health care reform bill to consensus conference with the house. Even for Washington, the "sausage making" of this bill was pretty ugly. The naked bribes required to get Sen. Ben Nelson (D-NE) & Mary Landrieu's (D-LA) votes were particularly offensive, and quite possibly illegal (see here).

One story that is very symbolic but did not get much play in the media was the announcement that one of the Mayo Clinic satellites in Arizona would no longer see Medicare patients. Mayo is doing this because it lost $840 million last year on Medicare patients, and specifically it's Arizona hospital and four primary-care clinics lost over $120 million. No matter how efficient you are, that is unsustainable. It must be particularly embarrassing to Pres. Obama to see his "model" franchise for health care telling him to his face that he does not understand the effects of the legislation both he and his party are foisting on America.

To doctors in practice, it was always amusing to see the Mayo clinic proposed as a replicable model for our health care system. For starters they operate in a coccon on a largely wealthy, educated, and homogenous patient group. Even more ironic is the fact that the Mayo clinic doesn't even really take Medicare, but exists as a "non participant (non-par)" where they reserve the right to balance bill the patient for what they think their services are worth. From the Mayo website

"Mayo Clinic is a non-participating provider in the Medicare Program. We do not accept assignment on claims submitted to Part B Medicare except:

•where the law requires us to;
•in the case of documented financial hardship;
•when the supplemental insurance is a contract payer;
•when the patient resides in the state of Minnesota.
When claims are sent to Medicare on a non-assigned basis, the benefits for the services are sent directly to the patient. Mayo Clinic is entitled to bill the patient for the difference between our billed amount and Medicare's approved amount. We do not have to accept Medicare's approved amount as payment in full. Mayo Clinic limits its charges according to the limits set forth by HCFA for the Medicare program. Mayo hospital claims are sent assigned."

Expect to see real push back from providers at other places who treat these patients.



Anonymous said...

It is very interestingly written, to the author thanks.

Cinnamon Colbert said...

you quote from the mayo site, which says, we don't except medicare except....for MN residents
that would seem to say they except all MN residents !!!
As for the billing people diff medicare/mayo, would need to see some real data there - how much are we actually talking