Mad Magazine famously pointed out the inflation in medical costs in the late 60’s with a parody on ads by Parke Davis (By Ken Freas).
Parody sadly has become reality: Outpatient shocked by $45 billion bill.
Mad Magazine famously pointed out the inflation in medical costs in the late 60’s with a parody on ads by Parke Davis (By Ken Freas).
Parody sadly has become reality: Outpatient shocked by $45 billion bill.
Posted in General Cynicism, Health Economics
Fascinating story of the development of artemisinin, a antimalarial developed in China during the Vietnam era.
Artemisinin’s discovery is being talked about as a candidate for a Nobel Prize in Medicine. Millions of American taxpayer dollars are spent on it for Africa every year.
But few people realize that in one of the paradoxes of history, the drug was discovered thanks to Mao Zedong, who was acting to help the North Vietnamese in their jungle war against the Americans. Or that it languished for 30 years thanks to China’s isolation and the indifference of Western donors, health agencies and drug companies.
Medicynical Note: Perversely, the delay in development and distribution prevented it’s wide use, and perhaps the development of resistance. It remains an effective agent.
Posted in Health Economics, Patents, World Health
In the past 30 years the diagnosis of sleep apnea has gone from being an oddity to a mainline healthcare business. Testing and prescribing has become a niche that provides lucrative revenue to specialized businesses. As noted here:
It’s a condition shown to increase the risk of several serious illnesses, including heart disease, stroke and dementia. Critics, however, worry that overnight tests to diagnose apnea, particularly those done in sleep labs, may be over-prescribed, at great cost to the health care system.
Testing can be a lucrative business, and labs have popped up in free-standing clinics and hospitals across the country. Over the past decade, the number of accredited sleep labs that test for the disorder has quadrupled, according to the American Academy of Sleep Medicine.
At the same time, insurer spending on the procedure has skyrocketed. Medicare payments for sleep testing increased from $62 million in 2001 to $235 million in 2009, according to the Office of the Inspector General.
And:
It’s no secret that the sleep business can be lucrative for physicians. A website for Aviisha, a sleep testing company, has a special page for physicians showing a picture of a doctor with a stack of money in his lab coat pocket. And in February, the American Academy of Sleep Medicine is offering a seminar on the “business of sleep medicine for physicians” at a golf resort in Arizona.
Insurers are catching on and limiting the expensive on site testing encouraging more use of home testing.
What’s most interesting about this expenditure is that while there is extensive data showing a short-term improvement in symptoms with treatment there is no long term outcome data documenting effectiveness. As noted in this presentation by Henry Glick of the University of Pennsylvania from the American Thoracic Society in 2010:
Given the large number of studies, why hasn’t the
question been satisfactorily answered?
- Shares with health problems such as obesity the fact that while it “makes sense” that treatment should avoid outcomes such as heart attacks and stroke, but no trial has ever demonstrated that treatment actually avoids these outcomes (Medicynical Emphasis)
Medicynical Note: As noted in a 1999 article on the costs of sleep apnea,
We conclude that patients with undiagnosed sleep apnea had considerably higher medical costs than age and sex matched individuals and that the severity of sleep-disordered breathing was associated with the magnitude of medical costs. Using available data on the prevalence of undiagnosed moderate to severe sleep apnea in middle-aged adults, we estimate that untreated sleep apnea may cause $3.4 billion (probably ten times that amount today) in additional medical costs in the U.S. Whether medical cost savings occur with treatment of sleep apnea remains to be determined.
Confusing any study of outcomes is the fact that of those treated with CPAP machines (continues positive pressure) only a minority, perhaps a small minority, continue to use them.
I conclude then, that there is a problem called sleep apnea, caused to a great extent by obesity. We know, also, that an expensive diagnosis and treatment industry has evolved to manage this problem. Sleep apnea diagnosis has become a product line for many companies. There is evidence that treatments, some surgical and permanent and others temporary with use of oral appliances and/or machines may (CPAP) improve some symptoms. But there is no evidence, at this time, that these treatments prevent long term complications (cardiovascular or pulmonary) and death. For all we know, people treated may have exactly the same outcome as those not treated.
This raising the question of what is a cost effective approach for this problem? Is our current approach the most medically effective or do we need to rethink the whole thing?
McKinsey group believes the slowdown in the growth of health care spending is complicated but at least in part driven by “value” seeking consumers . They note that consumers are paying a larger proportion of their health care expenses and that makes them more conscious of cost.
Remember we are talking about a decrease in the rate of increase, not an actual decrease in the amount spent. In fact, our spending per-capita still far exceeds what one would expect even given our wealth when compared with other countries around the world. This is evidence of an inefficient non-competitive approach.
The historic slowdown in spending growth was caused by the convergence of a number of factors, including changes in benefit design, structural shifts within specific segments of the health economy, and a recession from which the U.S. economy has been slow to recover. Changes in coverage patterns and the decline in the share of the population with private insurance during the recession have also played an important role. Between 2007 and 2009, the number of people with employer-sponsored or private individual insurance fell by nearly 10 million. In 2009, the share of Americans with private insurance slipped to 64.5 percent – the lowest in 20 years of census records – while the share receiving public assistance and the percent uninsured both reached record highs.
Despite the “slowdown” our costs/capita for health care remain by far the highest in world. For example hospital costs, even with the decreased “utilization:”
Medicynical Note: Mckinsey may view this decreased rate of increase as a search for value in health care, which is laudable.
However, searching for value when it’s driven by lack of insurance, substandard coverage and poverty easily morphs into inadequate access, delays, and substandard health care (economic rationing).
Posted in General Cynicism, Health Economics
This report of no new polio cases in India validates (no thinking person really needed further validation) the use of vaccines in serious life-threatening diseases.
The world of polio as it appeared in 2011: Countries in black still reporting cases, except perhaps India!
Source: Kaiser Family Foundation
Medicynical Note: In the early part of my medical career I observed the WHO’s vaccination strategy in Africa. Small pox was eliminated as an active disease threat. I didn’t expect another such advance in my lifetime.
Millions of people have benefitted.
Posted in Health Economics, World Health
We’ve commented previously on the need for regulation. In health care this is particularly the case because of the consequences.
The recent and ongoing breast implant problems from Poly Implant Prosthese (PIP) devices could well have been a major issue in the U.S. but for the FDA taking seriously it’s mandate to assess the safety of medical devices.
The now-defunct PIP was recently found to have sold implants made with industrial-grade silicone to some 300,000 women worldwide, sparking a global health scare. France’s government instructed 30,000 French women to have their implants replaced due to a high rupture rate, and the country’s health minister has called for Mas to answer for the actions of a “shady business.”
In the United States, where the FDA had banned all silicone implants from 1992-2006, PIP sold a line of saline-filled implants starting in 1996. The business accounted for up to 40 percent of its revenue, according to company securities filings. McGhan’s MediCor signed on to distribute the products in 1999, but a year later the Food and Drug Administration (FDA) conducted a new review of the devices and decided there wasn’t enough data to show they were safe.
The agency then sent an inspector to PIP’s plant in France, who found multiple violations of accepted manufacturing practices and determined the products to be “adulterated,” Reuters has reported.
Medicynical Note: Read the entire article to get a sense of the aggressive marketing of these devices. When money is involved people do funny things.
Posted in General Cynicism, Health Economics
The U.S. leads the world in health care spending per-capita. We spend over 2.5 trillion dollars a year (over 8,000/person) on medical expenses but still have 50 million people lacking health insurance and assured access to care—I don’t count “free” ER access as assured care. This is one and a half to two times the expenditures of other industrialized countries.
We’ve an approach to health care that’s become unaffordable to most people. Our country leads the world in bankruptcy due to medical expenses. To tell the truth such a category is unheard of in other industrialized countries.
One can cautiously take the recent news that health expenses are “only” increasing at the rate of inflation as progress in gaining control over these expenditures:
Still, the increases for 2010 and 2009 were the lowest measured in 51 years. And health care as a share of the economy leveled off at 17.9 percent, the first time in a decade there’s been no growth.
But:
The main reason for the slowdown was that Americans were more frugal in their use of health care, from postponing elective surgery to using generic drugs and thinking twice about that late-night visit to the emergency room.
Medicynical Note: After increasing at multiples of inflation for years, health care spending seems to have finally become unaffordable, thanks to increasing deductibles, co-pays, inadequate coverage and lack of coverage for over 50 million citizens.
In these hard economic times we’ve proven that rationing by ability to pay works. It’s however a blunt instrument. People lacking resources cut back on care, whether it’s really needed or not. We may lose a few but then we’re saving money.
Progress? No. Rational? No.
Our non-system of health care causes many distortions. Health care costs in the U.S. are the highest in the world, almost double that of other industrialized nations.
Because of escalating costs, lack of job provided coverage, and pre-existing illness over 50 million of our citizens have no health insurance. Limits in insurance coverage, high deductibles and co-pays make health care increasingly unaffordable.
These costs have driven individuals and families to bankruptcy in increasing numbers as noted in this article which documented that 62% of those going bankrupt in 2007 were driven to it by health bills.
The author’s abstract notes:
Using a conservative definition, 62.1% of all bankruptcies in 2007 were medical; 92% of these medical debtors had medical debts over $5000, or 10% of pretax family income. The rest met criteria for medical bankruptcy because they had lost significant income due to illness or mortgaged a home to pay medical bills. Most medical debtors were well educated, owned homes, and had middle-class occupations. Three quarters had health insurance. Using identical definitions in 2001 and 2007, the share of bankruptcies attributable to medical problems rose by 49.6%. In logistic regression analysis controlling for demographic factors, the odds that a bankruptcy had a medical cause was 2.38-fold higher in 2007 than in 2001.
In 1981 only 8% of bankruptcies were related to medical expenses. With the current lack of wage growth, the decreasing proportion of people with insurance and the exploding health care costs over the past 10 years (well over 100%) the findings in the article are not surprising.
For 92% of the medically bankrupt, high medical bills directly contributed to their bankruptcy. Many families with continuous coverage found themselves under-insured, responsible for thousands of dollars in out-of-pocket costs. Others had private coverage but lost it when they became too sick to work. Nationally, a quarter of firms cancel coverage immediately when an employee suffers a disabling illness; another quarter do so within a year. Income loss due to illness also was common, but nearly always coupled with high medical bills.
And the U.S. is exceptional:
Medical impoverishment, although common in poor nations, is almost unheard of in wealthy countries other than the US. Most provide a stronger safety net of disability income support. All have some form of national health insurance.
Medicynical Note: It’s bad enough that we have adopted an approach that does not have universal coverage and that our health care costs are rising at an unsustainable rate and that our health insurance provides inadequate coverage.
It is absolutely obscene however, that when a person gets sick and can’t work, his insurance can be cancelled or made unaffordable by raising the rate. This is further aggravated by allowing insurers to then deny new coverage because of pre-existing illness.
American health care is set up to provide security and protection to everyone involved except the patient. Quite an accomplishment if you ask me.
Posted in Ethics, General Cynicism, Health Economics

It’s alleged that this man shot several people in Washington State this weekend.
What’s the rationale for these weapons in a civil society? None seem appropriate for hunting; they don’t even seem reasonable, correct me if I’m wrong, for personal security. Only in America.
Posted in Uncategorized
Doubleclick to enlarge
From: Schmid, Tufts University Evidence Based Medicine Lecture: http://andrewgelman.com/wp-content/uploads/2011/12/SchmidJSM2011.pdf
Medicynical Note: Something’s wrong here.
Posted in General Cynicism, Health Economics