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Medical Staffing Companies Cut Doctors' Pay While Spending Millions On Political Ads (propublica.org) 132

An anonymous reader shares an excerpt from a report via ProPublica: Private equity-backed medical staffing companies that have cut doctors' pay are continuing to spend millions on political ads, according to Federal Communications Commission disclosures. The ads amount to $2.2 million since Health and Human Services Secretary Alex Azar declared a public health emergency on Jan. 31. About $1.2 million has been spent since President Donald Trump's national emergency declaration on March 13, the disclosures show.

The companies behind the ads, TeamHealth and Envision Healthcare, are among the staffing firms that have cut pay and benefits for emergency room doctors and other medical workers. The companies say the cuts are needed to cope with falling income because non-coronavirus patients are avoiding hospitals. Executives at TeamHealth and Envision also took pay cuts. But Envision and TeamHealth have continued to pour money into a joint political ad campaign. Their TV and radio spots are aimed at pressuring lawmakers working to address "surprise billing," where patients get stuck with huge medical costs from out-of-network providers they had no say in choosing. The ads oppose capping out-of-network costs based on median prices in the area. The spending totals don't include digital ads, which aren't reported to the FCC.

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Medical Staffing Companies Cut Doctors' Pay While Spending Millions On Political Ads

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  • by Quakeulf ( 2650167 ) on Friday April 24, 2020 @08:05AM (#59983716)
    I'm not living in the US of A, but when I see what people have to pay to get medical services I understand very well why they avoid them. When one treatment costs as much as a person earns in a year, there is something very wrong with the system.
    • The worst part is that many people here think the government should just pay for it. It doesnt matter if a doctor charges a billion dollars to take out your tonsils, just pay it. There has never been a comprehensive plan that tackles all different price gouging. The overpaid doctors, the expensive procedure costs, the overpriced medicine, and quite possibly the most hidden cost of all, the medical suppliers that sell overpriced imaging and diagnostic equipment.

      The biggest source of the surprise billing usua

      • by Kjella ( 173770 )

        The biggest source of the surprise billing usually comes from ambulance companies. You call 911 you have no choice of who shows up. Not all companies will take what insurance pays and write off the rest. But lets be honest, $2000 to drive that vehicle 3 miles is ridiculous. If it cost even half that amount they would be banned from taking the rig and crew out for lunch. Yet you always see one parked at burger king.

        For what it's worth, here in Norway with single payer system the average cost across 700k ambulance missions was almost $700. If it's air ambulance then across 18k missions it's about $5500 per trip. Two trained EMTs + equipment + prep/cleanup between patients with 24/7 coverage isn't cheap. What mostly drives cost is availability though, here you're supposed to get help within 12 minutes in urban areas and 25 minutes in rural areas 90% of the time. This is not pizza delivery where they'll be there in less

        • by e3m4n ( 947977 )

          so if you broke down the cost of all this stuff in an ambulance, why should I pay for the time that crew spent getting lunch? Maybe that should come out of THEIR paycheck? If a 3-5 mile trip costs $700 in Norway, and the entire crew drives 8 miles to eat at some restaurant, in no universe should I be expected to bankroll that expense as a client that was in a car accident later that day. If it costs that much to operate, make them stay at the hopspital / fire station, and they can use GrubHub / Door Dash /

  • We need changes (Score:4, Interesting)

    by AndyKron ( 937105 ) on Friday April 24, 2020 @08:06AM (#59983718)
    More and more healthcare sounds more like a scam than a service.
  • by Joe_Dragon ( 2206452 ) on Friday April 24, 2020 @08:08AM (#59983722)

    Wow they are makeing an good case for Single-payer.

    With that no ad's and no networks + no Drive by doctoring.

    • by hey! ( 33014 )

      One thing that might make sense, single payer or not, is to establish something like a reserve force (like the US Army Reserves) for the US Public Health Service Commissioned Corps.

      You haven't heard much about the Commisioned Corps in this crisis because the corps is tiny -- about 6000 doctors, nurses and other healthcare professionals. In addition to their regular duties, they're sized and equipped only to deploy in response to local emergencies, like hurricanes or earthquakes.

  • What did you expect to happen? Now Wall Street needs to own the politicians.

    Make regulations insane so it's hard to be in busienss unless part of a large conglomerate (trucking companies do this two ...... why do you think there are inspection stations everywhere.

    The only way to be cost competitivie is to be large and to accomplish this you need to have a pile of paperwork for doctors to deal with. How do you do that? Own politicians.

  • by JBMcB ( 73720 ) on Friday April 24, 2020 @08:30AM (#59983790)

    When the government has the capability of effecting your business more than the regular market mechanisms of supply and demand, you invest your money in effecting the government. Why bother focus on delivering a better product when you can lobby the government to hand you cash, in one way or another?

    • Why bother lobbying the government when you can simply reduce your expenses by paying your employees less?

      There's an "ad absurdum" lurking in there somewhere, too.

      • by JBMcB ( 73720 )

        The amount of money you can gain by paying your employees less is limited by market forces (a CPA isn't going to work for you at $10/hour) and the absolute limit of your overall payroll. If your payroll is $100,000,000 a year, you can never increase your profit more than that by reducing pay or eliminating employees.

        The government can, literally, create money and hand it to you. There is no practical limit to how much they can make. Also, when it comes to national defense or health care, there are virtually

    • by rsilvergun ( 571051 ) on Friday April 24, 2020 @09:56AM (#59984108)
      the problem is that healthcare is inherently a product that should not be paid for with private dollars.

      Private sales work great for toys, video games, twinkies, etc because they're non-essentials, they're easy to understand and compare and it's easy for competitors to get into the market and provide alternatives. There's also a high rate of churn, e.g. I buy a box of twinkies a month and if they suck I don't buy twinkies next month.

      Healthcare meets none of these criteria. Without healthcare at best you suffer in pain and at worse die horribly.The average healthcare "consumer" doesn't have the knowledge to make a good choice on what drugs to take, what surgeries to get or who their anesthesiologist should be. You need a decade or more of schooling to make informed decisions. And good luck starting up a competitor to your hospital as easily as you can set one up for Hostess, meaning the barrier for entry in the market is very high (and needs to be or you get quacks). Finally, I might buy a box of twinkies every month, but I'm probably not getting a heart transplant every month. Meaning less churn and less opportunity to switch providers.

      Simply put, healthcare does not play nicely with the Free Market. This is why all other countries save a few third worlds have implemented one form of single payer or another.
      • by kenh ( 9056 )

        the problem is that healthcare is inherently a product that should not be paid for with private dollars.

        Right, its better when politicians just take your money and then get to manage your healthcare. A few years ago, the NHS had identified a problem with wait times in their ERs, so the politicians passed a law requiring every patient that enters the ER must see a doctor within some time frame (1 hr? 2 hr? I don't remember now.). So what did NHS hospitals do? Did they expand the ERs? Hire more staff? Of course not - they instead forced patients to wait in their cars or ambulances until the hospital could guara

        • That's how insurance works. The bigger the pool the better it works. And there is no bigger pool than the entire country.

          You might make the argument that car insurance is different, since my $3000 beater needs less insurance than your $60,000 Tesla. But that doesn't hold up for healthcare. We're all human. We all have the same kind of bodies. And with the exception of diet and exercise we don't have all that much control over those bodies.

          Even diet isn't so clear cut as we find out more about gut ba
          • Wow, way to entirely ignore his post and go off on some tangent. "That's how insurance works"? The NHS botches handling ER wait time problems and that's all you can say? Holy shit.

      • Private sales worked for essentials like food and property for millennia. It also worked for medical care for a long time until someone decided that everyone had to have all the medical care they ever needed at any point of their life.

    • by dryeo ( 100693 )

      Which is a flaw in capitalism, it is usually cheaper to create a large government that you control then to create a better product.

      • by JBMcB ( 73720 )

        It's a flaw in any human-based economic system. Once you start concentrating power, it becomes advantageous to continue and increase the concentration of power. As Orwell pointed out, even in ostensibly "egalitarian" socialist societies, some animals are more equal than others.

        • by dryeo ( 100693 )

          True, at least any large human-based economic system. Unluckily we're a long ways from small, with small being perhaps a hundred people.

      • There's nothing capitalist about using the government to get your way.

        • by dryeo ( 100693 )

          Capitalism is basically using your capital to acquire more capital. Many people confuse capitalism with free marketism but they're actually at odds as most successful capitalists would like to get rid of the free market so they don't have to compete and buying government help is one way they do this.

          • No, capitalism is the free exchange of goods and services between willing parties. That's it. It's really quite simple.

            Anytime you have two parties doing business with one another on those terms, you have some form of capitalism. Free market capitalism lets anyone participate on any basis. Restrictions take you further away from that.

            "Using your capital to acquire more capital" is not intrinsically the part of any capitalist enterprise. Trampling all over someone else's ability to participate in market

            • by dryeo ( 100693 )

              Well there seems to be a lot of definitions. From dictionary.com,

              an economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations, especially as contrasted to cooperatively or state-owned means of wealth.

              Personally I like coops and similar businesses such as credit unions, which can do well in a free market even though not capitalist. OTOH, there's too many capitalists who try to des

    • Without government regulations - these same companies would be more than willing to hire armed robbers to make a buck.

  • Equality (Score:5, Insightful)

    by fluffernutter ( 1411889 ) on Friday April 24, 2020 @08:39AM (#59983822)
    Americans may not understand this, but I'm glad I live in a country where street people have the same access to care than I do.
    • Lots of Americans think, "my lot will never improve". But look that guy who looks different from me is far worse off than me. So GO! You! Ess!! Yay!!!. Thats all they want. A whole class of people visibly different from them visibly worse off than them. All they want is a good Schadenfreude enjoyment.
    • by kenh ( 9056 )

      Europeans may not believe this, but in America, anyone that walks into a hospital gets healthcare - if they lack insurance, they'll get a bill, if they lack the funds to pay the bill, it is written off as charity care. Hospitals that refuse charity care risk losing their charter.

      The reason we have so many people declaring bankruptcy with medical expenses is because the hospital and the patient disagree about whether the patient has the resources to pay the bill.

      One of the main reasons US healthcare is so ex

      • Nothing comes for free. It's still better to pay with a longer wait than it is to pay out of pocket. We never SEE the bill, we never have to deal with tricky insurance policies, and that's the way I like it. No one is dying because of these longer waits. They may be uncomfortable for a bit longer.
        • In the USA we do often wait for medical things unless we have a ton of $ and are willing to travel but even so, we do schedule things in a much more wasteful way so you don't wait as long for many things.

          It makes sense to wait for something that is NOT critical so that resources can be used efficiently rather than waste a ton of money trying to prop up all that idle time just so things can go a bit faster. That wasteful idle time means you get more choice when to schedule something, which is also an illusi

          • Do not tell me the "wait arguments are a sham". The whole purpose of state insurance is to reduce the amount of money spent on medical care. Period. This feat is accomplished by imposing delays. That way the state can limit how much they spend on hospital beds and personnel. Can you fight the government? No. You can complain to them, and some government review board will hear the complaint. And they will do what they can to sweep you under the rug.

            • If they properly manage things either system will make you wait to efficiently match supply with demand and that lowers costs! If you want to waste money with idle resources then everybody pays more. It comes down to how it is managed not who manages it! duh! THINK.

              People get power in democratic governments by bitching about the government and how THEY will make it better and major $$$ is spent on this. Even when it's good they knock it so you have a reason to replace the incumbent! Private power grabb

        • That's so stupid on so many levels. "They may be uncomfortable for a bit longer"? Please.

      • by tlhIngan ( 30335 )

        No, the reason is screwed up billing.

        Most US hospitals have more administrative staff than doctors, nurses and other people who give medical treatment.

        Think about that for a moment.

        The reason is it costs a ton of money to bill insurance providers - most hospitals have a dedicated department for dealing with insurance and that's one of the largest staffed departments out there. It's because insurance providers generally make it difficult to get money out of them so many personnel are needed to handle them.

        Ev

    • So you all get bad medical care and long wait times? Good to know.

  • Companies. As in corporations, who are legally defined as a person. A person with no soul, a lifespan such that they are basically immortal, and deeper pockets than any mortal.

    People who take risks, make decisions based on experience and data, and who feel empathy, love, and loathing... that's what makes _us_ great. Not a soulless corporate entity created to limit liability.

    Our problems run much deeper than a broken healthcare system.

    • by kenh ( 9056 )

      Fewer ER patients means reduced need for ER doctors, so hours are being cut to avoid laying off ER doctors.

      The companies behind the ads, TeamHealth and Envision Healthcare, are among the staffing firms that have cut pay and benefits for emergency room doctors and other medical workers. The companies say the cuts are needed to cope with falling income because non-coronavirus patients are avoiding hospitals.

      Don't confuse an ICU doctor or a respiratory specialist with an ER doctor, the article is about ER doctors specifically, not doctors generally - ICU and respiratory specialists are presumably unaffected by this action.

  • If an auto repair shop had fewer customers coming in for repairs, the owners would start cutting mechanics hours, cutting their income - why do we expect hospitals to operate differently?

    Markedly fewer patients are visiting the ER:

    The companies behind the ads, TeamHealth and Envision Healthcare, are among the staffing firms that have cut pay and benefits for emergency room doctors and other medical workers. The companies say the cuts are needed to cope with falling income because non-coronavirus patients are avoiding hospitals.

    So why shouldn't hospitals cut ER doctors hours?

    Don't confuse ER doctors with ICU doctors watching over patients with CovId-19 in incubators... ER doctors work outside the ICU, and while they stay in the ER, their income will, logically, be tied to the volume of patients visiting

  • There is health care.

    And there is health insurance.

    They are not the same.

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