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More Medicine Is Not Better Medicine

By Elliott S. Fisher, the New York Times

December 1, 2003

HANOVER , N.H. — No one in Washington is completely satisfied with the Medicare legislation that Congress approved last week. For many conservatives, the shift toward private health plans is too limited; for many liberals, the new prescription-drug benefit is too stingy. Yet almost everyone agrees that the current bill worsens the program's long-term financial stability.

Constructive debate about Medicare's costs, however, is hampered by a flawed assumption that both helps and is reinforced by the health care industry: that more care — and more expensive care — is better care.

Earlier this year five colleagues and I published a study of regional variations in Medicare spending. In 2000, for example, per capita Medicare spending was $10,550 in Manhattan , but only $4,823 in Portland , Ore. Despite such a disparity, we found that neither the quality of care nor patients' satisfaction with it was related to costs.

The difference in spending is almost entirely due to the way medicine is practiced in high-cost regions. Compared with similar patients in Portland , Medicare enrollees in Manhattan spent more than twice as much time in the hospital and had twice as many doctor visits per year. The additional services provided in higher spending regions are largely discretionary, like more frequent visits to specialists, longer hospital stays and more frequent use of diagnostic tests and minor procedures. Remarkably, more spending does not lead to more people receiving expensive and proven treatments, like cardiac bypass surgery or hip replacement.

Because regional patterns of medical practice are similar for Medicare and non-Medicare patients, the findings have substantial implications for America 's health care system. We could be wasting hundreds of billions of dollars each year.

But the most important findings aren't about money. They are about quality and safety.

As have other studies, we found that the average quality of care received by Americans is uneven. What was surprising is that quality was actually somewhat worse in regions that provided more care, with less frequent use of proven treatments for heart attack patients and of preventive services. Meanwhile, access to care and satisfaction were worse or no better than in regions that provided less care.

Safety was also a bigger problem in higher spending regions: mortality rates were 2 percent to 5 percent higher in regions that spent more. And this was not because of differences in the underlying health of the populations in different regions: in every analysis, mortality was no better or worse in the higher spending regions.

How might more care actually be worse? Having more doctors involved can make communication more difficult and make it harder to know not only what's already been done, but also who is responsible for ordering the simple but important tests or treatments that are known to make a difference. And because almost all interventions involve some risk, unnecessary tests, treatments and time in the hospital can be harmful.

Yet the belief that more medical care means better medical care is deeply entrenched. News reports tout the latest medical tests and breakthroughs, often based upon preliminary accounts of studies. The pharmaceutical industry provides a daily barrage of often misleading advertising.

The incentives for doctors and hospitals to provide more care are pervasive. Most doctors are paid more only when we do more; and all fear malpractice, where errors of omission pose a greater risk than errors of commission. Hospitals, outpatient clinics and imaging centers depend upon a continued flow of patients. And the profits of drug and device manufacturers depend upon sales.

To improve the quality, safety and efficiency of care — and reduce the risk of harm from too much care — better information and better incentives are necessary.

Patients should receive accurate and balanced information on the benefits and risks of the medical choices they face. They also need much better information about the organizations where they receive care — not only about quality, safety and costs but also about incentives. How are doctors paid? How are hospital and health plan executives rewarded? What are their relationships to drug and device manufacturers?

Better information will allow us to get the incentives right. The backlash against "managed care," which was evident in the Congressional debate over Medicare, has been driven largely by the fear that beneficial treatments were being denied because doctors were paid more to provide less. But unmanaged care and unfettered growth can also be dangerous. If health care organizations were held accountable for improving the quality and efficiency of care, patients might believe that excellent care and lower costs are compatible.

Our study suggests that perhaps a third of medical spending is now devoted to services that don't appear to improve health or the quality of care — and may make things worse. It also shows that we have sufficient current capacity to cover the uninsured — without necessarily increasing spending. (All that would happen is that the well-insured would see their doctors less often and, perhaps to their benefit, spend less time in the hospital.)

Members of Congress are right to be concerned about increases in federal spending. The debate over Medicare underscores the challenge: how to pay for better care, not just more care.

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