Bureaucrats Hike
Hospital Bills
Titus Chiseldon was
loaded for bear.
“Look here, Lapius,” he
thundered, “just look at this bill for medical services for my mother.
She went to the hospital for a work up for a gastrointestinal complaint, and it
cost her almost $1,500. For what? A couple of x-rays, a
semi-private hospital room that was as crowded as a monkey cage during visiting
hours. How can you justify that?”
“Calm down,” Lapius said
sternly. “You are an old friend, but that’s no excuse for you to take my
one semi-day off a week to come here and belabor me. I thought you wanted
to play chess.”
“We’ll get to that,
Simon. But really, now, that’s a hell of a lot of money for some work
that could have been done on the outside.”
“Why wasn’t it done on
the outside?”
“Simon. My mother
is almost 90 years old. She lives alone, you know. How can she be
expected to take those purgatives, go to a radiologist’s office and then repeat
the procedure for three or four days. It would weaken her.”
“Of course it
would. Your physician was wise to send her to the hospital.
Incidentally, what was his bill for supervising her care?”
“About $200 or
thereabouts.”
“Not bad,” mused Lapius.
“A little more than ten
per cent of the total cost of her care, room, x-rays, etc. It proves one
thing any way, Chiseldon, that the doctor’s bill represents only a small
fraction of the hospital bill.”
“But why should the
whole business be so damnably expensive?”
“Because, Titus, when
you were in Congress, you didn’t scrutinize the bills you were voting for, nor
the effect they would have on the cost of medical care. Indeed, you were
careless, and didn’t do your homework.”
“That’s
ridiculous. Medicare was a national necessity. You agree with that,
don’t you, Lapius? Hill-Burton helped build more hospital beds. You
agree with that of course?”
“Sure I do,” Lapius
said. “But you fellows down in Washington didn’t just pass bills and give
out money. You erected a fantastic bureaucracy to monitor how the money
was to be spent. As a matter of fact, I’ll bet that if you counted up the
cost of administrating the bills you will find that it added about 30 per cent
to your mother’s hospital bill. Actually, your mother didn’t need a
regular hospital for the work that had to be done. But as a consequence
of the government building hospitals, they have imposed a series of regulations
to protect their franchise.”
“For instance?”
“Come, come,
Chiseldon. Since your retirement you surely have been out of touch.”
“To tell the truth,
Lapius, even while in Congress I had no idea what the grassroots implications
of our laws were. Actually, all the public knows is that the cost of
medical care is high. But we simply assume that it is the result of
inflation, greed, careless administration…”
“Okay, Chiseldon, you
can stop now. The reasons are wrong, and the public is
ill-informed. The main reason medical costs are high is because the
government has to a great extent taken the market place out of the hospital
field. Your mother didn’t need a hospital. She needed something
akin to a non-surgical hospital, or a well-equipped nursing home where her
needs could be attended, her x-rays taken, and she could be kept under medical
surveillance. But the government in collusion with the third party
insurers won’t have it. In the first place, no such facility
exists. They don’t exist because even if some investors wanted to create
a non-surgical hospital for chronic cases and the elderly such as your mother
who have minor medical problems, they wouldn’t be allowed.”
“Why not? Since
when has an investor been prevented from putting up a hospital?”
“Since the government
got into the act. The government wants to protect its Hill-Burton
investment, and is desperately afraid of competition. As a result, states
have been encouraged to pass laws requiring that a certificate of need be
acquired before permits for hospital construction can be issued.”
“Well, why couldn’t my
mother just go to a nursing home directly for these studies?”
“Because nursing homes
don’t have x-ray departments.”
“Why not?”
“First it probably
wouldn’t pay unless they could assign some beds for outpatient work. But
that would constitute them as a quasi-hospital, and the government, as I said
before, doesn’t want the competition. Secondly, they would have to get a
certificate of need for the x-ray department. Thirdly, Blue Cross won’t
pay for nursing home care unless your mother goes to a hospital first and
spends at least three days there. Fourth, Medicare and Medicaid insist
that a doctor validate each visit to the nursing home and swear that the visit
was necessary, and doctors don’t feel like getting into those brambles.
Now the bald facts are that for mysterious reasons that no one can fathom, the
average national cost for a single hospital bed is $80,000 compared to $20,000
for the nursing home bed. As a result, since the array of administrative,
bureaucratic and legal forces so restrict the alternatives of doctors and
patients alike, your mother had no choice but to be hospitalized in a high cost
hospital facility. And I want you to keep in mind, Chiseldon, that taking
up a bed uselessly for her case, deprived a more seriously ill patient of a bed
in a full-fledged hospital. Does that help to answer your question about
hospital costs? The public is kept in the dark about all of this, and
like yourself, has really no idea what’s going on.”
“It’s ghastly,”
exclaimed Chiseldon. “I am almost prompted to run for Congress again.”
“Restrain yourself,
Chiseldon. Don’t you think you have done enough for us already?”