September 16's Wall Street Journal Opinion Comment ("Blame Friction, Not Fraud, for the Cost of Healthcare") by Robert Charrow, the past general counsel for the U.S. Department of Health and Human Services (HHS) is revealing. Mr. Charrow states: ”Of our $4.6 trillion annual health bill, anywhere from 20% on up goes to costs, many of which have been dictated by Congress. Transaction costs include electronic health records, HIPAA code sets, anti-kickback and Stark compliance, preauthorization paperwork and unnecessary diagnostic tests designed to thwart malpractice suits.”
Few people seem to understand or appreciate the accuracy of this observation. After a lifetime in healthcare coping with these mostly ineffective regulations, hearing these observations from a senior member of HHS brings solace to my heart. These regulations and the dominant use of coding as the driver of all healthcare payments are powerful acknowledgments of why U.S. healthcare today is in shambles. Regulations and coding, in particular, are destroying healthcare and costing taxpayers trillions.
As Mr. Charrow highlights, Congress self-induces this cost and destruction. Alternative solutions to healthcare are possible. My book, The Journey’s End, offers practical and meaningful alternatives. Reforming healthcare is possible, but it requires cooperation from Congress.
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