McCabe’s Rounds

Each year we honor our residents through an awards ceremony to recognize their often unsung work.  These awards represent  the professional and support staff specific recognition of the contributions of the residents.  Recognition is provided for Professionalism (nominated by the nursing staff); Teaching (nominated by Program Directors): Research (nominated based on the research productivity of the resident) and, Teamwork (as nominated by other residents and fellows).

Congratulations to all of the awardees!

This weekend marks an important annual event at Upstate Medical University, medical school and university graduation.

We often think of ourselves as employees and workers at a hospital. However, it is important to remember what sets our University Hospital apart from others.  First, and foremost, we are a university.  The hospital, while it exists for patient care in the region, also exists as the teaching classroom for our students.  The hospital is the classroom and laboratory where young and impressionable minds, are turned into doctors, nurses, and other health providers over time.  The graduation ceremony is an important rite of passage for these individuals as they leave medical school and enter residency training, or as they finish their education and enter the workforce.

The pomp and circumstance of a graduation is important to recognize their efforts and dedication.  It is an important time for families to celebrate.

It is probably also a good time for all of us to stand back and reflect on the role that each of us has in the education of physicians and healthcare workforce of the future.  On a daily basis, all of us have the opportunity to interact with students.  The way we interact, the examples we set, the qualities of caring and empathy that we display, all are important components of how and what our students learn.  Each of us has a role in helping to model our future workforce.

While each student and their family can be proud as they walk across the stage on Sunday to receive their diploma, each and every employee at University Hospital can also be proud for the contribution that they have made.  Each or our graduates owes you a thanks your efforts.

Congratulations to all of our students, and thank you to all of the employees of University Hospital, each of whom is “teacher” in some way to our students.

Hospital charges, bills, costs, and payments:  A complex topic

This week the federal government released data showing that the charge for the “same” medical procedure in different hospitals around the country varies considerably.  This is true both from region to region and even within the same location among different hospitals.  The full set of data can be seen at:

Medicare Provider Charge Data on CMS.gov

In today’s world of instantaneous news, rapid online publication, and the need to reduce the most complex topics to a simple sound bite, a  headline that reads “costs vary for the same procedure seven fold across the country at different hospitals” was an inviting opportunity.  As such this study has made local and national news, and continues to play out in radio and TV talk shows today.

In Syracuse, the Post Standard ran two brief and factually correct articles about some of the differences in Central New York.  The story also appeared in the print version of the Post Standard today.

Upstate CEO: Higher charges reflect specialized services like burn unit and labor costs

Hospital bills for same service vary dramatically in Central New York, federal data shows

From the perspective of someone immersed in these issues on a regular basis, I can tell you this is not a simple topic.   Any of you who have read the recent Time magazine issue (March 4, 2013): “Why medical bills are killing us” will understand the complexity of this topic.  I would recommend this issue to everyone.  It is a more in depth conversation of the topic than can be had in internet sites or in the newspaper.

Let me provide a few of my own observations with respect to the recent report and flurry of interest that it has created.

• There is an important distinction between charges, costs, and payments, they ate not the same. What an individual patient pays for the same service, even in the same hospital can vary widely.  Hospitals rarely if ever get paid their charges for a service that is provided.
• What a hospital charges for a service, just like in any other business, is related to what it costs for the hospital to provide that service.  The cost for a service is influenced by many things including:
  • Equipment and supply costs
  • The kinds of patients that are treated
  • Labor costs
  • Utility expenses
  • Amount of service provided for which no reimbursement can be collected
• As a general rule, academic medical centers have higher costs than other hospitals.  This is due to a number of factors:
  • Complexity of care in these institutions
  • Costs associated with training physicians and medical students
  • Specialized services that require additional staffing (i.e. trauma services which require onsite presence of numerous physicians and other providers on a 24 hour a day basis ready to respond at a moment’s notice)
• In any analysis of costs, labor must be a discussion since it represents the largest portion of all hospitals expenses.  However, it is not just about the costs of an individual employee in an institution, it is also about the number of employees in the institution must maintain in order to maintain vital services, safety net services for a community, and mission critical services.  Again, academic medical centers tend to employ more individuals for all of these reasons.
• The assumption that charges are therefore related to waste may be erroneous.
• The idea that charges relate somehow to quality in a singular way is unfounded

Finally, it needs to be remembered that other costs are rolled up into the average total payment, including the reimbursement from the federal government for education and training of physicians.  The vast majority of physicians practicing in the Central New York community have had some relationship to Upstate Medical University either as a medical students or as residents in training.  Without the academic institution and its associated education costs, the workforce in Central New York would be vastly different.

The data and the related stories are all systematic of a very complex healthcare system that in many ways is quite sick itself.  The complexity built into to charges, bills, and payments, is a burden not found in many industries.  The amount of effort, administrative time, and personnel that are devoted to unraveling the complexities of charging, billing and collecting in the medical industry is quite simply insane, it certainly is an area that needs significant reform.  However, simply blasting out the idea the charges are higher in one place than another for the same procedure, without understanding the relationship of charges to costs or charges to payment doesn’t fix the system.  It simply casts a shadow of doubt and mistrust over institutions that day to day work to provide complicated and complex care to keep patients healthy and then are burdened with enormous work to be paid at anything close to a reasonable rate for the services that have been performed.

Something needs to change!

Every day at University Hospital thousands of dedicated employees help us carry out the missions of excellent patient care, education, and research.  Often times, we have the opportunity to thank individual employees or groups of employees for the fine work that they do.   Our congratulations and thanks often come from our own internal view of the work we do.  Often this is augmented by patient letters of thanks and praise.  We often use our Press Ganey comments and reports from patients to recognize individuals and programs of high merit.

This week, I became aware of two important outside recognitions of the quality of our care.  It is always nice when external entities recognize us for our work and care at University Hospital.

The Commission on Cancer of the American College of Surgeons granted its Outstanding Achievement Award this week to 79 accredited cancer programs across the United States.  The cancer program at University Hospital is one of these elite programs that was recognized.  The award is granted to facilities that “demonstrate a commendation level of compliance with seven standards that represent six areas of cancer program activity: cancer committee leadership, cancer data management, clinical management, research, community outreach, and quality improvement”.  Less than one out of five cancer programs reviewed by the American College of Surgeons receives this achievement award.   Such an award puts in a category of elite facilities around the nation.  It is testimony to the excellent administrative and clinical staff that provides leading edge cancer care to patients in Central New York every day.  We all feel that this care can only continue to improve and expand with the opening of the Upstate Cancer Center in 2014.

University Hospital is also recognized this week by the American Heart Association for its outstanding work in heart failure and stroke.  We were awarded Gold Plus Achievement Awards in both of these areas.  The Gold Plus Award is given to institutions for achieving adherence to “get with the guidelines” indicators over two or more 12 months consecutive intervals.  Again, we join an elite group of institutions dedicated to improving the care patients with stroke and heart failure.  Again, this is a testimony to the high quality administrative, and clinical activity across a broad range of disciplines at University Hospital.

I offer my sincere congratulations to all of our staff involved in cancer care, heart care, and stroke care.  These are important diseases.  The care of these patients is integral to our missions.  The recognition seems most appropriate.

As always, horrific events such as the recent bombing at the Boston Marathon cause us to stop and take stock of our own circumstances.

Clearly, this is a senseless and cowardly act.  It puts our own lives, and the lives of loved ones in a different perspective.  The idea of how one’s life can change in an instant at the hands of others, bent on destruction, is always sobering.  Obviously, our prayers and thoughts are with the survivors and their families.  As has been reported in the news, it is clear that the resilience of the American people, especially in the Boston area, will help them to recover and move on from this event.

From the medical perspective, I often wonder how we would respond were an event of this magnitude to occur in our own area.   The response in Boston is one of law enforcement on the scene, a coordinated EMS response, community volunteers, a well-run trauma system, and years of rehearsal.   I believe that all of these elements exist in the Central New York region as well.

There is little doubt that our law enforcement agencies, be they local, county, or state, would respond in a coordinated fashion.  We have seen this in past events in the Syracuse area.  We see the excellent coordination of mass event gatherings in CNY in the  many regional events such as the State Fair,  Carrier Dome gatherings, Syracuse Jazz Fest and others.  The ability to coordinate between agencies is well demonstrated in our region.

Our EMS personnel are well-trained.  Care across communities is already coordinated with mutual aid response plans.  The 911 center and county emergency response teams are well organized. Paid EMS staff exists in most of our communities.  There is good coordination of specialized service such as air medical evacuation.

All of our hospitals routinely practice for disasters.  While no actual disaster is ever exactly like the disaster drill, each disaster drill helps individuals to understand their roles, to learn team work, and to be prepared for whatever the next disaster sends our way, be it a natural disaster, chemical contamination, mass casualty incident, or terror event.

Our trauma team at University Hospital is always ready. We have ample expertise from emergency medicine staff to trauma surgeons, to specialty physicians, to the nurses and ancillary medical staff.  Our ICU services are second to none in the region.  We maintain the operating room staff, equipment, diagnostic equipment, and other resources necessary to respond to large scale events.

Finally, even in this Central New York competitive healthcare environment, we have also shown the ability for hospitals and providers to work together in times of demonstrated community need.   It is not infrequent that multi-casualty incidents, albeit on a much smaller scale, have been managed in a coordinated fashion with all the hospitals in the region. We could count on everyone’s cooperation.

While we are all saddened by the events of Boston, we should all rest assured that, in this community, we would be well prepared to respond to a similar event.  While we hope we never have to use  these skills, we should all continue to practice, continue to know our roles in such an event, and be sure that the coordination and cooperation occurs, from law enforcement through to the operating rooms and the ICU, as well as among healthcare providers and between our healthcare institutions.