Comparative Health Systems: What Can We Learn from Other Nations?
October 23, 2023
Title
- Comparative Health Systems: What Can We Learn from Other Nations?: Explore options for improving health outcomes and lowering costs by examining Organisation for Economic Co-operation and Development (OECD) countries’ approaches to healthcare delivery
Speakers
- Andrew Moore, MD, MCR, Assistant Program Director, Emergency Medicine Residency, Virginia Tech Carilion; Assistant Professor, Departments of Emergency Medicine & Health Systems and Implementation Sciences, VTCSOM; Physician, Emergency Medicine, Carilion Clinic; 2021-22 Health Systems Science and Interprofessional Practice Clinical Champion Cohort Faculty Development Program Graduate, TEACH
Objectives
Upon completion of this activity, participants will be able to:
- Describe drivers of cost in the United States healthcare delivery system
- Review other Organisation for Economic Co-operation and Development (OECD) countries’ approaches to healthcare delivery
- Devise solutions to control costs and increase health outcomes in the United States
Well welcome everyone to today's Health Professions educator series Health System of science open Forum which is a lot to say but welcome uh today we are lucky to have Dr Andrew Moore uh assistant program director for emergency medicine uh assistant professor for the Department of Emergency medicine and the Department of Health Systems and implementation science uh physician within emergency medicine and the emergency medicine health system science clinical champion and he is here today to present on the topic of comparative Health Systems what can we learn from other nations um Dr moris says that you are welcome to ask questions as he goes feel free to post in the chat or um speak up if you have a question or comment um so on that note I will hand things over to Dr Moore fantastic thank you for the introduction Mariah um so welcome everyone thanks for taking some of your lunch hour to kind of walk through this lecture with me um I am not a health policy trained uh clinician my fellowship was actually in research but this is something that I've always been passionate about and so when the opportunity to become a a clinical Champion for health system Sciences presented itself I kind of ran with comparative Health Systems Health policy and health economics um and so this is this is the Genesis for this this lecture this lecture has morphed over many forms it's a really a Fool's errand to try to trim down 600 pages of text into a 1-hour lecture um so I I've morphed and modified how we talk about about comparative Health Systems um it's a it's a project that we do with our M2 students we actually have them break out and study uh Healthcare delivery in a foreign country and then present it back to uh their peers for near peer education um and and hopefully they learn a thing or two and this is kind of a a wrap up of some of the ways that we can utilize Healthcare Delivery Systems our approaches to healthcare delivery from other countries to increase uh the Healthcare outcomes in the United States and also decreased cost uh so disclosures so these are my views they don't reflect the views of Killian clinic or Virginia Tech Cillian School of Medicine um I also have research funded by Phillips and biotel so if I tell you that the answer to solving all of America's Health Care problems is to put wearable cardiac Telemetry on people then you know that this is a biased presentation it is most definitely not the answer um but that's what they pay me to do with my research time I have to give a special thanks to Dr Lee lman uh dean of VTC School of Medicine um for inviting me to be part of the health systems team and making Health System Sciences one of the pillars of our uh education for medical students um also can't go any further without thinking Dr Kelly Whitmer one of the clinical champions for health system Sciences um Dr Whitmer was going to actually do this presentation with me but as you know it's very difficult to make a room dark for zoom and we could not get the room quite dark enough for him to participate yes that was a radiology joke um also would like to thank DRS Natalie karp and Dr Cynthia Moro um who have been essential in terms of developing our our M2 curriculum and also the rest of my clinical Champions cohort uh and all the fine folks that teach who are putting this on today so thank you to all of you to many of you this wheel may look familiar um this is our health system Sciences wheel uh this is our foundational approach to the way that Health Care is delivered in the US thinking about how we want to approach uh health care and all of the different elements that go into it and this is the foundation for our health systems curriculum uh throughout the medical school so our objectives today uh are are are heavy um we're going to describe drivers of cost in the United States Healthcare delivery system we're going to review oecd uh countries approaches to healthcare delivery and we're going to devise solutions to control costs and increase health outcomes in the United States and in order to do that we're going to need to start off by checking the state of us Healthcare and unfortunately things are dire uh this is a uh from Kaiser health news you can see that there are higher performing uh countries up here Norway the Netherlands uh Australia and way down here at the bottom in the lower performing that's the United States and unfortunately Healthcare delivery is not golf which means we are not doing a very good job this is another way to uh kind of look at the fact that we are not doing a good job our overall ranking is number 11 uh access to care administrative efficiency equity and Health Care outcomes all put us at the bottom of the table in terms of how we deliver Health Care to our citizens and not only do we deliver poor health care uh but we do it at a very very high cost um so these are 2021 numbers and you can see that we spend per capita approximately $1,318 um for each Citizen and relative to other countries uh that are of also High earning countries we are almost double uh the closest and we're definitely double the average of 5,829 and just to further drive home the fact that we are outliers anyone who appreciates a good trend line here can see that when you compare compare the GDP per capita uh which we're right here at about 70,000 uh versus the health care spending per capita we are outliers from the mean so why are costs so high uh it's complicated we're going to talk a little bit about that and then we're going to talk about some solutions that hopefully can help us reduce cost and increase Healthcare outcomes so one of the reasons that Healthcare is so expensive is because American Healthcare is Big Business uh this is a tenant that you have to accept uh to want to change American Healthcare if it wasn't big business we wouldn't see Jim Kramer here on CNBC telling us to go ahead and bye-bye byy HCA and United Healthcare and maybe even a little more relevant is United Health groups earning statement this is from October 13th of 2023 United Healthcare is the largest private insur in the us their revenues for this quarter were 92.4 billion and grew 14% year-over-year their cash flow 6.9 billion and their earnings are quite high in fact United Health Group is number five on the Fortune 500 list with a market capitalization of almost $500 billion that puts them as the 14th largest uh company in the entire world and the fifth largest in the US so just for those of you who didn't go to business school the purpose of a publicly traded company is to maximize profits for its shareholders so in my opinion for-profit Health Care is one of the major drivers of cost so we have some other areas where we can improve us healthc care delivery one is Administrative costs two is lack of uniform electronic health records I feel this acutely every shift I have in the emergency department three is pharmaceutical costs four is how we've found our access to care in the US and then five is medicine as a business so we'll revisit some of those slides that we just looked at so what can we learn from other countries as I said earlier it's a Fool's errand to try to outline how every country approaches Healthcare um it's rather droll and it would definitely drag on for greater than one hour so I can't do that but what we can do is we can highlight some countries that are doing things maybe a little bit better than us or some countries that we've already learned from so let's start with our friendly neighbors to the north Oh Canada their blood's as thick as maple syrup um what have they given us well they gave us Medicare so Medicare and Medicaid which we passed into law in 1965 uh just a definition Medicare covers all Americans greater than 65 years of age or those with permanent disability so such as uh endstage renal disease requiring dialysis and then Medicaid uh covers the more financially destitute uh this is one of the Hallmarks of America saying Healthcare is not really a right U but we should give some sort of access to it uh so Medicare and Medicaid were both modeled after the Canadian Medicare system we liked it so much we stole their name as well and this was actually pioneered in Saskatchewan in the 1940s so it's not often we look to Saskatchewan to be lead ERS and anything um but they did bring us Medicare and Medicaid so what it is it's a Single Payer that's the government is the payer and it pays primarily private nonprofit hospitals in Canada in the US it pays all hospitals in the US we have a blend of private for-profit and also private nonprofit hospitals uh which religious hospitals would fall into that category as well Medicare and Medicaid provide good care at a low overhead approximately 2 to 3% of total costs are spent on overhead whereas estimated overhead on private insurance is anywhere up to 177% and some estimations estimize care is spent on administrative costs so what does that look like for me in the emergency department it looks like the employment of an internal physician adviser so we have to pay non-clinical Physicians to argue with insurance companies to pay us for the care that we provide that is the system that we currently live in unfortunately so thank you Canada for Medicare and Medicaid I know everyone over 65 enjoys it quite nicely I'm going to throw my in-laws under the bus here who both waited to get their hips replaced until they were Medicare Ed eligible we've also taken something from the United Kingdom the United Kingdom uh has the national uh Health System the NHS it's the largest Single Payer in socialized Health Care system in the world it has a lot of shortcomings and anyone who follows uh meded or fomed on Twitter I'm sure has seen the rumbling and grumbling about the uh pay that their Physicians receive and their inability to fill uh positions as a result of brexit and other choices that they've made um but despite its shortcomings it's provided egalitarian care to the citizens of Britain for over 70 years we have something very very similar the veterans Health Administration is actually uh pretty much a straight Riff on the um on the NHS uh it serves lifelong care to honorably discharge service members uh it is a socialized Health Care system so what that means is that the government owns the buildings the government employs all of the employees uh and all of the health care is covered it is very similar to NHS um one thing that the the veterans Health Administration is kind of Whipping Boy for a lot of different things um it's actually provides very efficient care and turn things around in the 2000s so much so that the demand became quite High um so they are doing a very nice job and I can speak from experience having worked at the Portland vmc that it really is a unique experience as a physici to work there because when there are no barriers to care it's great to have a patient who might present with say a cellulitis on their arm be able to go home take antibiotics and come in the next day for a following checkup as opposed to a much more costly observation admission or something that we would use in a different system so this definitely provides a means for for cutting costs by making uh care more accessible one thing that the VA does very very well it's maybe not the most userfriendly but they actually have a a national uh electronic health record called cprs and so any patient who interacts with the VA medical system anywhere in the country um has notes that are generated and accessible from anywhere else and so if you have a veteran visiting another state you can see all of their uh Health Care interactions and all of their medical problems which provides much more efficient care that unfortunately is not the case in the private setting and here you can see two different depictions of myself uh on on my left here you can see me on a normal shift when a patient checks in from Lewis scale and says I just left they did nothing for me um because I can't see what they've done for their workup so this is one of the uh the major drivers of inefficiency at least in my role as an emergency medicine physician over here on the right this is me when I worked in Portland Oregon because the city of Portland uh got together and every hospital in the city opted to join epic um and epic is a brand name of a EHR provider but one thing that they have is something called care everywhere and so if a patient opts in you can actually see all of their interactions with the health care System uh so often times I would have this exact same patient presentation uh in Portland and a patient would show up and say maybe you know I had really bad chest pain and I went to Good Sam in downtown and they really didn't do anything for me and I could pull up their medical record and see that the patient had an EKG a chest x-ray uh serial troponins and a even a CT angiogram to rule out a pulmonary embolism uh which is you know roughly a $2,000 workup and I could spare them from any more testing and just do a lot of counseling uh so a EHR accessible to everyone in the country is one way that we could potentially reduce redundant testing uh as patients are known to shop around for second opinions um or go to a different hospital if they're dissatisfied with their care so who does this really really well uh well the country of Taiwan actually does uh so Taiwan were late adopters of a national uh medical system they actually didn't adopt a Nationwide Medical system until the 1990s uh and one of the areas that they have been most effective is uh being leaders in a national EHR uh so what happens in Taiwan is every patient uh it also has compulsory enrollment which we'll talk about later but every uh every citizen or patient carries a card with them and that card actually has their demographics and their insurance billing information on it and when it's plugged into one of their terminals uh it will show you any medical interventions um that need to be logged it'll allow you to file for immediate re urements uh and it will allow you to access their online medical records for the uh most recent six visits so it gives you access to medcloud which is all of the patients prior diagnosis diagnoses their prior allergies vaccinations and their six most recent visits it also accesses pharmac Cloud which is all of their prescription information and then every patient has access to something called my health bank so it's a cloud-based access to their entire medical record um so if the most recent six visit are insufficient for the physician to figure out what's going on um the patient has access to their entire medical history in the palm of their hand um not very different from um from my chart which is what we use in Epic except that it is on the national level um whereas not every EHR in the US uh has that same interoperability so what are we doing to address this well we've actually started to improvise some solutions and the 21st century cures act came online uh about a year and a half ago now and what it did is it actually defined electronic health record interoperability addressed Health Information Technology certification requirements and prohibited information blocking um so it's created a common language for different computer systems that are used in the US to create a um basically a back channel for them to communicate we are starting to see that I will occasionally now see reports coming through through from our colleagues at Lewis scale across town unfortunately there's no formatting and it's just straight text uh which is very difficult to read um but we are starting to imp improvise and Implement solutions to make this more userfriendly and hopefully reduce redundant testing which will drive down costs Pharmaceuticals they're expensive um they are actually one of the major drivers of cost in the US Health US Health Care System we spend approximately 500 billion ion dollar per year on Pharmaceuticals it's 17% of entire us healthc care spending per capita we spend $1400 on medications which is twice the average of European nations this spend is secondary to high costs of medications not high use so compared to some other countries we're not necessarily the highest user of pharmaceutical medications this is a factoid that I found rather striking and that is that 90% of prescriptions written in the US are are for generic drugs but they only account for 26% of drug costs um so it's those name brand medications that are really starting to drive up cost one of the reasons that this happens and there's a multitude of reasons um part of it is our patent system we provide 20 years of essentially a monopoly on a new medication and we don't have any price controls uh the other is that we have very fragmented Pharmacy benefit manager programs um which gives them less negotiation power uh as say something like a national formulary would the VA Health Care system is a really nice example of a healthcare system that implements a national formulary system um so if you want to deviate from what medications are available in terms of treating your patients uh you have to actually get approval and go outside of that um and they choose medications that have a good profile effect and also have been uh shown to be cost effective so there's a couple different countries in Europe that are doing this much much better than we are uh Norway is one of them and I know Norway is kind of hard to compare because it's a much smaller Nation uh they have a much lower populace they're much more homogeneous um but they have some some tools that they've brought in in terms of how they set prices that could effectively be used in the United States and so how they do that is um well first off they spend 400 per capita so they spend $1,000 less per year than the United States spends on medic medications um the way that they break that out is their national insurance pays about 75% and consumers are left to pay 25% of the costs um they do a nice thing though they cap certain medications at 275 annually and $2,000 $200 annually um so that 25% of the cost will not become absorbant or exorbitant like it might in the United States where for example a patient on a $10,000 per month chemotherapy might be stuck paying $2,000 per month uh out of pocket for their medication uh so they have a couple uh systems in place to make sure that medications are affordable and so they have the Norwegian medicine agency and what this agency actually does is authorizes the marketing monitors Adverse Events and sets maximum prices following EU regulations and they also monitor cost Effectiveness and consider that as part of the price uh manufacturers have to apply for a maximum Pharmacy purchase price that will then be agreed upon by the Norwegian medicine agency and those Agreements are valid for five years and have to be reapplied for every five years uh in contrast to the US there is no such system we say thank you for developing this fine medication we will pay you whatever you want um they also have implemented something called the health health technology assessment which basically means that any new medication any new device or anything that wants to come onto the market has to be evaluated based on overall benefit the resource utilization and the severity of the condition it treats before they will even consider adding it to the National formulary they also have an informal cost cap um so what happens is the Norwegian medicine Association will look at uh the um qualies um or quality active life years uh similar to what the UK in Australia do and they say if this medication provides you one year of good quality Life we'll pay up to $1,500 for that medication so they've kind of put a cap on on things uh in terms of treating major illnesses uh they will relax it up to $90,000 if it's a a life-threatening Illness but overall they try to uh contain cost through this way and it's very similar to the approach that England and Australia also use um whereas in the United States we kind of say hey we'll pay whatever to see how long we can stay alive uh Germany is another European country that does a good job controlling costs I chose them as well as Norway Norway are kind of under utilizers of medication um they very much fit their stoic stereotype of of not wanting to take medications uh Germany the German uh populace is actually a quite a large consumer of medications uh so I thought it' be interesting to approach how they can cost contained medications so they spend about 780 per capita or half of what we spend in the US they have an interesting price regulation mechanism and that is that for the first 12 months a pharmaceutical company can sell a new medication for any price at all that they want um what will happen then is the institute for quality and efficiency and Healthcare determines if medications is comparable to other medications on the market and if it is so let's use for example something like Crestor or ruist Statin versus lipor or torvest Statin that new medication comes on the market and they say ah it basically does the same thing then the institute for quality and efficiency actually has the ability to set an internal price and say this is what we will reimburse you uh thank you pharmaceutical company take it or leave it now there's a little caveat that if an additional benefit is identified what'll happen then is that the pharmaceutical company and the federal Association of sickness funds that's the group of 105 nonprofit insurance companies that Ure the vast majority of Germans will get together and negotiate a price if they're unable to do that it actually goes to uh to Legal arbitration and then the sickness funds which are the insurance companies actually get three separate uh rebates from the pharmaceutical companies to help drive down medication prices I found this really interesting I wonder how it would play in America my suspicion is not very well um but they have pretty intense physician regulation uh so they have a federal Joint Commission that provides guidelines for appropriate treatment and it can actually impose fines on Physicians who are not complying uh with appropriate treatment or using appropriate medications uh and they go so far as to choose not to reimburse medications that might be used off label so for everybody who prescribed Ivermectin during coid just be thankful you're not German so what have we done in the US that could potentially be a solution here uh well in 2022 we passed the inflation reduction act um this is the first time that we have provided Medicare Medicaid with the ability to negotiate with pharmaceutical companies to lower cost um so specifically we gave this ability to Medicare um and the goal here was to lower costs for Medicare Part D Medicare Part D is the the um medication aspect of Medicare there's four different elements to it they chose 10 medications uh based on the overall cost between June 1st 2022 and May 31st 2023 these 10 medications that they've selected actually accounted for 50.5 billion do in total medication cost over that oneyear time frame in fact these 10 medications alone accounted for 20% of all Medicare Part D uh funding on medications so um this is a huge Target for for lowering cost of care and obviously you can see that many of these are novel anti-coagulants such as Alois or zalto um their newer diabetes medications such as jardian Genovia or their uh things like um embal um Humera which is going to be a monoclonal antibody used for immune issues and then also we have our our friends insulin down here which has become excessively expensive um so hopefully you know it's to be seen what will come of the inflation reduction Act and the ability to negotiate for prices um there are multiple lawsuits being levied by pharmaceutical companies back to the federal government to try to block this um but this is you know potentially huge in terms of caring for our patients uh and also lowering costs um it always crushes my soul just a little bit when I have to prescribe elquist to somebody with a new DVT and I also have to hand them a drug coupon because their out-of pocket expenses even when they're covered by Medicare are $15 to $1,800 per month on a medication that they're going to be on for at least three months so um definitely a great opportunity to lower costs and again uh this is happening in real time so we'll just have to see how it all ends up playing out all right access to care um this is something that kind of Falls near and dear to my heart U because I feel this every day when I go to work uh so we again kind of revisiting the United States uh and our regard for Health Care have said that healthc care is not a human right uh we're one of the only developed Nations who have not come out and stated healthc care is a human right we kind of danced around the issue uh and we've created the stop Gap measures that make it seem like maybe some people feel that way right so Medicare Medicaid things like chip that ensure children um and mtala so mtala is the emergency medicine transfer and active Labor Act it was passed in 1986 uh it was four pages taed on to a 229 page um Consolidated Omnibus reconciliation Act so a budget Act of 1986 uh it was passed because there was outrage in the lay Community about patients being dumped on the side of the street if they had an inability to pay uh and so essentially what was happening is Granny would go to a hospital with altered mental status they'd say oh I'm so sorry your private physician is not part of this group and by the way you're uninsured um there's a county hospital 20 miles down the road that would love to take care of you and hospitals were actually putting these confused grannies in their uh hospital gowns and sending them down the street in cabs where they would get dropped off in front of the hospital and just wander around aimlessly and probably more alarming uh for the general public is that the same thing was happening for patients in active labor so patients would show up to hospitals in active labor um they would be triaged based on insurance and ability to pay and told to go down to the county hospital and and children are being born on the side of the road and mothers were dying uh and Congress decided nope this is unacceptable we're going to create something that will solve this problem and they created it but it's a it's an unfunded mandate for care um so it it's created access to care at the emergency department level um which for a multitude of reasons is some of the most expensive Health Care uh that we provide and so part of that is facilities fees generated to keep the lights on um part of it is real time testing uh part of it is the training of Emergency Physicians to constantly thinking about be thinking about things that could take your life and that usually results in larger workups so we've done some things recently to try to improve access to care uh the ACA the Affordable Care Act also known as Obamacare was passed in 2010 um and it actually had a uh mandate for care so you were required by law to purchase insurance um it lacked teeth in the sense that the penalty for not purchasing insurance was significantly lower uh than the fee to purchase insurance so for example when the marketplace came online if you were uh not offered insurance coverage by your employer oftentimes it would run thousand per month just for health insurance coverage and the tax penalty that you had to pay I believe was only $500 to $1,000 so many people just ate that cost as opposed to buying into the insurance coverage it also gave rise to uh one of the more famous uh arguments in the Supreme Court which was Anton scalia's broccoli mandate uh where he compared the required purchase of uh health insurance coverage to us forcing Americans to buy broccoli because it's healthy for them so um I think that you know when we think about mandated insurance coverage uh perhaps the uh personal Liberties and Free Will that this country were founded on um will unfortunately keep us from having government mandated Insurance purchased so um let's visit a couple countries that do it a different way though um so Germany Netherlands and Switzerland all have statutory compulsory and mandatory mandatory health insurance uh Germany actually has one of the oldest insurance markets in the US or in the US in the world um and it's actually what the uh Clinton healthcare plan was essentially uh designed around and it's very similar to what we do in the US except that all 105 of the sickness funds in Germany are mandated to be nonprofit United Healthcare would not be making 90 billion per quarter in Germany um so 87% of the population is covered by those 105 sickness funds and what happens is if you make make less than $65,000 uh us per year in Germany you are automatically enrolled into the uh compulsory insurance program you can choose any insurance company and you can actually change up to two times a year and what happens there is that uh the insurance companies will actually start to compete for uh um for the patient pool uh so much like cell phone companies in America compete for a a larger uh group of subscribers all of the German insurance companies want a larger group of subscribers because that gives them more bargaining power uh within the sickness funds they do have specialized schemes so if you make over $65,000 uh us per year in Germany uh you're actually allowed to purchase private insurance um and then they have specialized schemes for police soldiers and Asylum Seekers uh the Netherlands also has a compulsory and statutory enrollment um it covers 99 .8% of the population uh this was a result of the health care or health insurance Act of 2006 um so I think one kind of common misnomer when we think about how care is delivered in foreign countries is that they're similar to England and that they have this Health Care System that's just been around forever but that's really not the reality um you can see that many of the countries including Netherlands are kind of newer adopters to mandating health insurance so 200 is you know not that far ahead of the ACA being passed in 2010 here in the US um so what'll happen in the Netherlands is if you are not enrolled within three months they actually charge you a fee of $440 us and they repeat that bill every three months until you enroll in a plan and if you just choose not to enroll um the tax office actually has the ability to choose a plan for you enroll you in it and start garnishing your wages so that you're part of the national health care plan and then Switzerland in 1994 um passed a federal health insurance law that created in individual mandate very similar to Germany they have 90 sickness funds um if you do not enroll there they probably have the harshest penalties if you choose not to enroll in mandated healthc care um they will withhold wages um to pay your premiums and they'll charge you up to a 50% penalty so they are they are very serious about getting you enrolled in their mandated healthare programs all right so healthc care as b as big business and this personally is where I feel like we have the largest opportunity to cut costs unfortunately because the companies that make this money um are so wealthy uh it's an uphill battle that probably won't happen um so we talked about privately held or publicly traded companies already and that their goal is to maximize profits uh for their shareholders so you have the United healthc carees of the world uh the hospital Corporation of americaas of the world um that have stocks that Jim Kramer wants you to buy because they are highly successful there's a whole another realm of American Health Care uh that's probably happened over the past 15 years that has significantly driven healthare costs um again as as everything My Lens into the health care world comes through with the emergency department and emergency medicine um and anyone who lives in South ronoke hears the constant hum of helicopters coming in to deliver patient patients from our very very large catchment area probably in my opinion worse than uh the involvement of uh for-profit publicly traded companies in healthcare is the involvement M of private Equity firms so private Equity firms essentially find a company find a way to maximize its profits and then turn around and sell that company for financial gain they've ruined many things in my lifetime including J crew uh and they are currently in the process of doing their best to ruin health care so um this is a headline from Intelligencer uh Kaiser uh kaer Health news Vox also have um long long uh lists of articles about the insane costs of air ambulance um flights uh and this specifically is a story about a freelance journalist uh who fell and injured her back while skiing at Mammoth Mountain uh was told that she needed to be airlifted to a spine center uh and that helicopter flight cost $86,000 uh of which her insurance company only covered $177,000 so she was on the hook for a $79,000 air ambulance bill status part is uh she had broke her back so she was just laying on a stretcher staring at the ceiling she didn't even get to look out the windows um so why why are these so expensive uh and the answer is private Equity um so this is from the USC Schaefer and Brookings Institute uh you can see as of 2017 the costs associated with uh air ambulance transport and then who owns them so if you look here here's orange which is Municipal other here's dark gray which is hospital we would fall into the dark gray category with lifeguard Medicare reimburses approximately $7,500 for a uh for a fee or for a um a LIF flight uh KKR which is a a large private Equity Firm and American Securities as well you can see they charge up around $40,000 up to $50,000 uh so much so that the current average cost of a helicopter ambulance in the United States is running about $4,000 um or to put that in perspective $4,000 more than the average uh person earns in the city of ronoke for year this is uh so the last slide was highlighting costs and this is highlighting who owns these uh companies um so you can see Phi Incorporated American Securities and KKR are all hedge firms or hedge funds and they own approximately 75% uh of the helicopter air ambulance service um in the US as of approximately six years ago why did they get into this field so interestingly the airline deregulation Act of 1978 uh which was designed to allow more competition in the um in the patient transport space and has given rise to allegian airlines Spirit Frontier and all of the other lowcost carriers uh included all 12 uh air ambulance services that existed in 1978 um and because it was a federal law it meant that no States could bargain with uh companies that provided uh air ambulance services to lower costs so essentially there was a loophole allowing companies to charge whatever they wanted uh for air ambulance care so we've come up with a solution here uh and that's the no surprises Act of of 2022 um I'm not going to address other countries approaches to for-profit healthare because we're really the only country that's Afflicted with uh this level of um for-profit Healthcare um but the US solution was a no prizes Act of 2022 um and again uh similar to passage of mtala in 1986 enough of these articles about people being stuck with $80,000 air ambulance bills um or surprise bills when they went to an ER that was out of town which again you can't control or even worse when patients went to a hospital that was in their insurance Network only to receive a surprise medical bill from an emergency Medicine group that was outside of their Network um so it became uh so common and such an outrage in the lay press that Congress decided to do something about it and that was the no surprises act and what it does is it protects enroles who receive emergency care either at an outof Network facility or from an outof network provider great you don't really have time to shop around when you think you're having a heart attack or you've snapped your arm in half um so obviously American Healthcare really doesn't follow normal Market rules um so we need protections like this another one is when an enrol uses air ambulance emergency Transport Services they probably should have included ground ambulance services as well um AMR is a large company that's backed by private Equity um and their costs are rather egregious unfortunately the EMS Network in America and the ambulance network is is so fragmented uh that Congress looked at it said we can't figure this out at all we're just going to push it off till later uh so it does not cover ground ambulances and then finally when an enrol Le receives non-emergency Care at an in network facility but is treated by an outof Network health care provider without knowingly electing that provider or giving consent to be build so what's an example of this this would be like a pregnant woman who goes to a hospital to deliver and gets an epidural from an anesthesiologist who might be uh out of network work because that anesthesiologist works for a peack group so this is something that is near and dear to my heart because emergency medicine was one of the first fields that was commandeered by private Equity groups um so we have large what are known as contract management groups that are backed by by hedge funds and private Equity um Invision is the second largest um American physician Partners was the fourth or fifth largest and team health is probably the largest team health is backed by Blackstone Invision uh is based in KKR who bought them for10 billion a few years ago uh and then American physician Partners I'm blanking on on who exactly backs them um but one of their business models and actually their approach to providing emergency medicine care was not to engage in contract negotiations with any insurance companies but to remain out of network for all of those insurance companies and then what they could do is they would receive the outof network fee paid by the insurance company and they could balance Bill the patients whatever difference they wanted that was actually um known as the secret sauce for envisions approach to providing emergency care with the no surprises act both of these companies have filed for bankruptcy um Invision has restructured and broke into two different arms one is a ambulatory uh surgery arm and the other is a um emergency medicine Emergency Care arm uh American physician Partners it's still uh waiting to be seen exactly what they're going to do they just entered bankruptcy uh in September so what's the solution here well I mean the obvious solution would be to prohibit corporations from the practice of medicine um and there's currently a lawsuit being fi that's been filed in the state of California by the American Academy of emergency medicine uh and also ASAP the American College of Emergency Physicians has joined in with that as well was filed against Envision Physician Services essentially for being a corporation that practices medicine uh Envision tried to get the case thrown out when they went into bankruptcy restructuring uh fortunately a judge has upheld the case and the lawsuit is set to begin in January 2024 um so we're seeing Physicians start to fight back against corporate practice of Medicine uh looking for the autonomy that I think we all um thought we would have when we went into emergency medicine um and Medicine in general if it's not obvious why I work for Killian Clinic uh based on based on this talk so far uh let me know and I'll make it more clear right it's great to work for a nonprofit um whose mission is to improve the health of the uh patients that we serve as opposed to uh churn as much money as humanly possible so uh really interesting um it's going to be very very interesting to see what happens with this um I will say that the parties thrown by team health and vision and all of those other uh companies have really dropped off now that ASAP is suing them but that's okay small sacrifice to make for the greater good uh so we come back to our systems thinking wheel um you know obviously this is how healthc care is delivered this is commonly known as um the hidden curriculum of medical school and what we've done at vtcsom is we are putting it front and center and saying that you as future physicians in America as physician thought leaders need to be aware of what's going on in the Health Care System how health care is delivered and hopefully we're going to provide you with the tools to be change agents uh and advocates for a Better Health Care System uh not just people who understand why the system is broken so with that we're going to revisit our objectives and I apologize I don't think that we necessarily hit these exactly on the head um but I think we've described some of the drivers of cost in the United States Healthcare delivery system we've reviewed some successful approaches from other oecd countries um and we didn't so much devise Solutions um because so much of this is going on in real time we've highlighted some of the some of the uh currently implemented law that may provide Solutions in the future so um like I said you know my fellowship training is in clinical research and research design um but I've always been passionate about what how we deliver healthc care why we deliver healthc care the way we do and how to make the system that we're in better um so some further reading if if you're interested uh Dr Whitmer and I chose the healing of America by TR read which is just a great quick weekend reading if you're interested um it actually follows TR Reid who's a a journalist for the Washington Post who lived in five or six different countries and had a bum shoulder and it's his experiencing experiences accessing those Care Systems and how that compared to receiving care in the United States um with information filled in he actually tells a fantastic story about being at one of the largest um hospitals in Alberta it's a large teaching Hospital five or 600 beds their rev cycle or revenue cycle department is actually uh two women who both work part-time they have a uh they have a closet down in the basement and one of them is solely responsible for billing American tourists who get injured in Canada so it's a far cry from casby and our revenue cycle team I love what you guys do um but our system is broken and that's why you exist um most of this talk most of this information came from uh zika manuals which country has the world's best healthare it's a much denser version of the healing of America um it's approximately 600 Pages if you're having a hard time falling asleep I recommend reading about how Norway finances their Healthcare um and then just some of the kind of more pop culture Elizabeth Rosenthal uh wrote an American sickness which is a a great book looking at how healthc care transitioned into big business um she's currently the editorinchief of Kaiser health news uh and then a book that was recommended to me many many many years ago when I was a wee bab medical student trying to figure this all out was your money or your life by David M Cutler um other things that you can read are Kaiser health news um you can follow Dr Glam flecken On Tik Tok or Instagram he did an exceptional 30-day takedown of the health system uh in the United States and every day he proposed a different absurdity of of how we provide care and it's actually uh both entertaining and educational so uh with that we're at 12:49 uh so I'll open it up to any questions um and I appreciate all of you taking time to listen to me rant today thank you so much Dr Moore what a super informative presentation um so it's not in commmon for us to see on the news or or hear conversations um and comparisons between about comparisons between the US and other Healthcare Systems um and wonder why we spend so much and still um have poor outcomes um this certainly helps us to have a be a little more informed um on the super complex comparisons um but do you have any last thoughts on what we can do um or what clinicians can do to help to make the difference yeah I think from the clinician level it's just engagement with your um with your foundations and your groups uh and anyone who's advocating for change um and on the patient side it's it's advocating for Price transparency uh and shopping around when possible wonderful thank you so much if there are no further questions or comments please enjoy the rest of your day and stay safe healthy thank you so much.