Salinas, CA: GAO Report: Some Hospitals Paying Inflated Prices For Stents, Defibrillators And Other Devices: View From A Private Duty Caregiver Serving Carmel, Carmel Valley, Carmel-by-the-Sea, Gilroy, Gonzalez, Greenfield, Hollister, King City, Marina, Monterey, Pacific Grove, Pebble Beach, Salinas, San Juan Bautista, Seaside And Soledad California

Hospitals are coming under increasing pressure to cut costs, both from Medicare & Medi-Cal and from private insurance companies. They are only likely to see more pressure after the Wall Street Journal devoted almost half a page to a story yesterday entitled, "Study: Hospitals Overpay for Devices." It focused on a research project in which surveys were done of 31 hospitals by the Government Accountability Office (GAO). It queried executives on how much they were paying for expensive items like hip replacements and defibrillators. It found a huge variance, with one hospital paying $8,723 more than another for the same model of a device which regulates heart rhythm (an implantable cardioverter defibrillator). Stents, which usually range in price from $1,700 to $1,800 each, were purchased for $828 more at the most expensive hospital surveyed than the least expensive one. Eventually, these costs get passed on to insurance companies, Medicare and Medi-Cal. "The report "raises serious concerns over the prices hospitals and Medicare are forced to pay for implantable medical devices," Senate Finance Committee Chairman Max Baucas said after the report was released. Although medical devices only account for 5-6% of total health care spending, according to the Advanced Medical Technology Association, there is likely to be a spotlight placed on this area, particularly when there have been recent reports about physicians purchasing equipment from companies which they hold an equity interest in. The problem is a big one because physicians are typically allowed to choose which products to use, not the hospitals. This makes it harder for hospital administrative staff to keep these costs in check. There is also going to be greater scrutiny in the coming years on Doctors, as medical companies will be forced to report publicly when they are giving gifts to physicians. This is, unfortunately, a typical practice and does influence how drugs are prescribed and which medical devices are used. There's likely to be less bias in the future, however, as money changing hands will be available to the public and Doctors are likely to be more incented to save money for insurers. Many insurers are starting to agree to give bonuses to Doctors if they can help insurance companies reduce costs by doing more preventative care and help keep patients out of the hospital. That's a win-win for all taxpayers as well as those people getting sick€"no one wants to unnecessarily have a repeat visit to the hospital for the same condition.
http://online.wsj.com/article/SB10001424052970204662204577199431130637776.html
About Richard Kuehn & Family inHome Caregiving of Monterey:
After more than a decade of caregiving, both in a professional environment and for a 97 year old family member I was dissatisfied with service from local caregiving agencies. I became convinced of the need for a service which provides very personal assistance to elderly and founded Family inHome Caregiving serving the Monterey Peninsula. Please visit my blog where I talk about important senior issues at:
http://www.familyinhomecaregiving.com/Blog