Health Care

Whistleblowers Expose Hospitals Fleecing the Public's Back

Published October 07, 2009 @ 09:00AM PT

 Sheared Sheep

What happens when two whistleblowers separately expose widespread Medicare fraud to authorities? Other than nearly $90 million in fines, one wrongdoer loudly protests that she just lacked supporting documentation for the fraud.

Such is life in the case of medical device maker Medtronic Spine LLC and its hospital customers. After two former employees alerted the Justice Department of a scheme that ran from 2002-2008, Medtronic’s acquisition of Kyphon Inc. came back to haunt it with a $75 million fine. Kyphon made equipment and materials used to perform kyphoplasty. It promoted the procedure as a hospital money-maker if clients billed Medicare for inpatient rather than outpatient surgery.

Yes, in a cringe-worthy twist, hospitals were making decisions on inpatient versus outpatient status based on financial gain, not medical necessity. Just not according to Pamela Jones, St. Francis Hospitals’ chief legal eagle: "It is important to note that the probe had nothing to do with quality of care, patient safety or medical necessity ... the issue is that the documentation did not support the inpatient stay." Well Pamela, as for medical necessity, receipt of the lawsuit’s largest hospital fine for fraud ($3,158,629) would suggest otherwise. And I would hope St. Francis wasn’t jeopardizing patient safety and providing low-quality care while fleecing the public.

So what is kyphoplasty? It’s a procedure that lends itself perfectly to Medicare fraud, as it addresses vertebral compression fractures. Vertebrae are the bones that make up your spine, and they are more prone to fracture as we age and develop osteoporosis. Kyphoplasty is a minimally invasive way to address the pain and deformity of these fractures by restoring vertebral height and shape.

Don’t confuse kyphoplasty with its close cousin, vertebroplasty. Vertebroplasty has been around since 1986 and addresses pain only, by cementing fractures. And, as it turns out, not effectively. Two recent studies both demonstrated it had no benefit beyond a sham placebo surgery. Hey, if it’s just the anesthesia that’s really providing the benefit, that’s much less invasive (and expensive) than messing with your spine.

Let's do a quick comparative waste analysis. Six hospitals in Indiana, Alabama, and Minnesota have been assessed total fines of $10.6 million in the ongoing Medicare kyphoplasty fraud case. But consider that 100,000 vertebroplasties were performed in the US last year, at $2,000-$5,000 each. Imagine the millions of dollars wasted on ineffective treatment since 1991, when the procedure first became available in the US. It wasn’t just insurers footing the over-sized bills, but patients and taxpayers too. Why did we wait over 20 years to study outcomes? We can't get that money back!

So how do you avoid this kind of unnecessary medical care and hospitalization? First, get behind evidence-based medicine. As we’ve just seen, it’s not about denying necessary care, but avoiding the trauma and expense of ineffective treatments in favor of things that DO work. Second, ask questions about your care. You’re just watching your back.

Photo ©amandabhslater

 

 

 

 

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Comments (7)

  1. Thomas McHugh

    I reckon thats what happens when hospitals and other health care providers care more about money than their patients...

    As for "Evidensed based" medicine...

    That Im not too sure about considering the profit motive involved.

    Posted by Thomas McHugh on 10/07/2009 @ 02:50PM PT

  2. Aaron Sidner

    Ms. Hubble-thank you for the description of the process. I can see how easy it was for them to recommend inpatient care (people get skittish when backs are involved).

    Regarding Mr. McHugh's comment about the profit-motive issues with 'evidence based' medicine, I would think that would be a good discussion point for a future entry. I'd appreciate your take on this and I enjoy your writing:) 

    Posted by Aaron Sidner on 10/07/2009 @ 04:19PM PT

  3. Martin Bring

    Listening to Republicans rant against evidenced based medicine and other progressive reforms only strengthens my conviction that we are in a battle with people who possess all of America's worst instincts.

    Posted by Martin Bring on 10/07/2009 @ 07:02PM PT

  4. Wendy Watson

     I have been on disablity for 12 years. I have had Medicare for 7. This is the half ass treatment you get when you have government controlled health care.

     The medical profession does not want to treat you. I was told to my face by one specialist After I paid 20% for the MRI's and he had the results. Four years later I was hairs away from being paralyzed from neck down (Had immediate surgery). The surgery should have been done then. Now I have permanent nerve damage, that is very pain full and it leads me to a less productive life. It also caused more damage to lpwer parts of my back which seven months later I had to have more surgery. Now Medicare is denying payment on second surgery because the doc. did a certain proceedure during surgery that would prevent future pain and surgery and help me lead a more productive life.

    Now the government is cutting the pay to Doctors by 20%. It scares me of the type of care I will receive then.

    There is no doubt in my mind that there needs to be a Health Care reform. It is disgusting that Americans die because they have no health insurance. More die with health insurance because refusal of proper treatment to those that have government insurance.

    I am not a right winger and I do not and have not listened to their BS on the health care reform. I go by my experiance and how I feel in my heart. I do not believe that the proposal that Obama is putting forth will benefit "We the People". The government will have to much control to deny and control the type of treatment. We need less government greed and more caring.

     

    Posted by Wendy Watson on 10/14/2009 @ 02:38AM PT

  5. Gillian Hubble

    Unfortunately paying full retail prices, sometimes 15,000x more that Medicare rates, doesn't guarantee good care either. Many patients have to pay those kind of ridiculous rates because they are either uninsured or out-of-network. Sometimes doctors refuse to contract with any insurer, forcing patients to pay inflated prices. It doesn't mean they are any better than those who do accept contracted insurance rates.

    Doctors, like any other professional, tend to fall on a bell curve. Some are excellent, some are terrible. Most are average. Right now patients have precious few ways to do a "pre-purchase evaluation" of them to increase the likelihood they choose one who will deliver good care. I'll address that in a future post.

    Posted by Gillian Hubble on 10/14/2009 @ 12:43PM PT

  6. R smith

    Remember ask your doctor to turn off CNN and the drug flat screens in the waiting rooms. That is the ony improvement in healthcare the people can ask for and might have a chance of getting.

    Posted by R smith on 10/14/2009 @ 09:53PM PT

  7. Wendy Watson

    With the Medicare I owe $10,000, that does not include the surgery Medicare did not pick up. That does not include the Urologist for my Kidney Disease, Specialist for my Graves Disease, Neurologist for my Mollarets Disease (virus in central nerve systemand very rare), Infectious Disease Doc (have had menengitis 5x's, am allergic to my own sweat, bacteria in soil & grass, Cellulitus, dermatitis). Eye specialist for my Glaucoma. I can not afford them.

    It also does not include the $1272 that is taken out of my check for Medicare and $1020 for my prescriptions.

    Do not believe the adds on AARP. All lies. My congressman told me to tape them (any insurance co.). I asked and did and got their lies on tape and that is how I got out of having to keep them as a health insurance carrier. For two months, not one Doc I had accepted AARP, the hospital did not take AARP, over all it would have cost 3x's the amount I am paying if I went to their few docs.

    I was in the same room with a woman. We both had mild strokes. She had private insurance. Then there was me with Medicare. She got every test, stress test, etc. I got an EKG. She got set up with with out patient care. I was released with my blood pressure of 72/36.

    Oh, there is so many more testamonies I could give.

    I understand that there are Doctors that should not be Doctors, the greedy. They ignore their oath.

    I also understand that Insurance companies are ruthless. I saw on the News a woman with a sick baby took the baby to the local hospital and they did not accept her insurance. The insurance got on the phone and told the hospital not to treat. The next hospital was across town and by the time she got there her baby had died. I also know that a Hospital in LA drops the patient off on skid row if they have no insurance. A taxi was caught on tape dropping off an elder woman in hospital gown all disoriented with Alzheimer's.

    I have no clue what is in peoples minds. The cruelty, greed, ignorance. I think people have gone nuts.

    Then I live in Florida which is a third world country especially in the health care Industry.

     

    Posted by Wendy Watson on 10/15/2009 @ 01:07AM PT

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Author
Gillian Hubble

Gillian Hubble is owner of Actively Fused, a consulting and healthcare advocacy firm, and a partner in KDG, a business development firm.

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