Physician Culture Impact on Payment: Will Getting Rid of 'Bad Apple' Doctors Fix It?

AHealthcareZ - Healthcare Finance Explained

@ahealthcarez

Published: June 7, 2021

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This video provides an in-depth exploration of how physician culture significantly impacts healthcare payment and costs in the United States. Dr. Eric Bricker, the speaker, frames the discussion as a response to criticisms from prominent authors like Drs. Vivian Lee, Marty Makary, Atul Gawande, and Robert Pearl, who attribute rising healthcare costs partly to physician culture. While acknowledging the pushback from many physicians who believe they prioritize patient care, Dr. Bricker argues that both perspectives can be true due to the presence of "bad apples" within the profession. He posits that a minority of physicians, driven by motivations such as money, power, prestige, or promotions rather than patient well-being, disproportionately contribute to inflated healthcare expenditures.

To clarify his argument, Dr. Bricker first defines organizational culture, drawing on a Harvard Business Review definition as "the consistent observable patterns of behavior within an organization." He then introduces a powerful analogy: a field of "wheat" (representing patient-first physicians) interspersed with "weeds" (representing those who prioritize self-interest). Just as a few weeds can spoil the appearance and health of an entire field, a minority of self-serving physicians can tarnish the reputation of the profession and drive up costs, even if the majority are dedicated to their patients. He further reinforces this concept with analogies like a bad apple spoiling the bunch or rabbit turds in a bowl of raisins, emphasizing that a small amount of negativity can compromise the whole.

The core of Dr. Bricker's analysis centers on the fee-for-service payment model, which he describes as "fertilizer" that unfortunately nourishes both the "wheat" and the "weeds." While it supports patient-centric doctors, it also enables and rewards those who perform unnecessary or overly expensive procedures for personal gain. He contends that if the healthcare system insists on retaining the fee-for-service model, it must implement aggressive "weed control" measures. These measures include enhanced transparency to identify problematic practices, robust self-policing by medical boards and physician practices to remove "bad apples," and significantly expanded efforts in investigating fraud, waste, and abuse, potentially through a larger Office of the Inspector General (OIG) or private initiatives by employers. He cites examples of companies like Zappos and Southwest Airlines, known for their strong cultures, which prioritize hiring for attitude and cultural fit over mere skill to minimize "weeds" from the outset.

Key Takeaways:

  • Physician Culture's Dual Nature: While the majority of physicians are dedicated to patient well-being ("wheat"), a minority prioritize personal gain (money, power, prestige, promotions) over patient care ("weeds"), significantly impacting healthcare costs.
  • Definition of Culture: Culture is defined as the consistent, observable patterns of behavior within an organization, highlighting that it's about what people repeatedly do, not just what they say.
  • Fee-for-Service as a Double-Edged Sword: The fee-for-service payment model acts as "fertilizer," rewarding both patient-centric practices and self-serving behaviors that can drive up unnecessary procedures and costs.
  • The "Bad Apple" Effect: A small percentage of physicians with self-serving motives can tarnish the entire profession and distort healthcare economics, akin to a few bad apples spoiling the bunch.
  • Necessity of "Weed Control": If the fee-for-service model is to be maintained, aggressive "weed control" is essential to mitigate the negative impact of self-serving physicians and practices.
  • Transparency as a Primary Tool: Increased transparency in physician practices and outcomes is crucial for patients and employers to identify and avoid "weeds" (problematic providers).
  • Enhanced Self-Policing: Medical boards and physician practices must take more proactive and stringent measures to identify, discipline, and remove "bad apple" doctors who engage in unethical or harmful practices.
  • Aggressive Fraud, Waste, and Abuse Investigation: There is a need for significantly expanded efforts by bodies like the Office of the Inspector General (OIG) or even private investigators hired by employers to actively seek out and eliminate fraudulent or abusive practices.
  • Hiring for Culture: Lessons from successful organizations like Zappos and Southwest Airlines demonstrate the importance of hiring for cultural fit and attitude over technical skills alone, as a "jerk" with skills can still ruin a positive culture.
  • Underlying Issue of Selfishness: The root cause of "bad apple" behavior and negative cultural patterns often boils down to selfishness, where individual gain is prioritized over collective good or patient welfare.
  • Implications for Stakeholders: The video implicitly suggests that employers, patients, and insurance carriers bear the financial brunt of these "weeds" and have a vested interest in promoting transparency and accountability within the healthcare system.

Tools/Resources Mentioned:

  • Harvard Business Review article: Referenced for a definition of organizational culture.
  • Dr. Bricker’s Book: "16 Lessons in the Business of Healing."
  • Netflix series "The Pharmacist": Referenced for an example of egregious physician abuse (Dr. Claggett and an Oxycontin pill mill) and the failure of medical boards to act.

Key Concepts:

  • Physician Culture: The consistent, observable patterns of behavior among medical professionals, influencing patient care and healthcare costs.
  • Fee-for-Service: A payment model where healthcare providers are paid for each service they perform, rather than a flat salary or capitated rate.
  • Wheat vs. Weeds: An analogy used to distinguish between patient-centric physicians ("wheat") and those driven by self-interest ("weeds").
  • Transparency: The principle of making information about physician practices, costs, and outcomes openly accessible to patients and other stakeholders.
  • Self-Policing: The responsibility of professional bodies (e.g., medical boards) and organizations to regulate and discipline their members.
  • Fraud, Waste, and Abuse: Practices within healthcare that lead to unnecessary costs, often involving illegal or unethical billing and service provision.

Examples/Case Studies:

  • Zappos: Highlighted for its strong corporate culture and unique hiring process, which included interviewing shuttle bus drivers to assess how prospective employees treated service staff, prioritizing attitude over skill.
  • Southwest Airlines: Cited for its HR philosophy of "hire for attitude, train for skill," emphasizing the importance of cultural fit among employees.
  • Dr. Claggett (from "The Pharmacist"): An example of a physician running an Oxycontin pill mill whose egregious abuses went unaddressed by the Louisiana medical board, illustrating a failure of self-policing.