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Opinion: Aim your baloney detector at the BS in health care

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Update time : 2019-05-17 14:21:22

BS, what Princeton philosopher Harry Frankfurt once called a “lack of connection ought a affair with reality — this indifference ought how things really are,” has maybe been nearly during the beginning of language. It’s now mutual at American discourse nearly politics (just song at ought any cable information channel), entertainment, and sports.

We’ve noticed an influx of BS at health care. You don’t eat ought emerge distant ought location it. just count of Theranos and IBM Watson. We are wondering if few new corporate “turduckens” — alike the common endeavour of Amazon/Berkshire Hathaway/JP Morgan, or hospitals combining with medical groups, or mergers and acquisitions creating a sole corporation that’s an insurer, a pharmacy amuse manager, and a pharmacy — are because actual or just turkeys.

While BS can exist funny, it can too exist sad, and worrisome. because of social media, BS today can scatter faster and farther than the truth.

Health care has an critical BS problem, at divide because BS can sometimes fill the bill. presume you are asked ought greet an ageless puzzle at health care: diminish costs calm simultaneously raising quality. if you were knowledgeable ought begin with or did some research, you used to learn there is no simple solution. You could reply with a information of failure or a discussion of inevitable trade-offs.

Read more: From protégée ought whistleblower: A preceding Theranos scientist says Elizabeth Holmes ought ‘come send and apologize’

But you could too elect an concept with some interior plausibility and political appeal, encircle it with careful besides conditional language, and launch a program. It will, you note, receive few years ago it is successful, besides you and your colleagues will debate because the concept at concept, with the details ought exist worked out later.

At a minimum, unqualified acceptance of such ideas, even (and especially) by apparently qualified people, will garbage goods that could eat been used ought compose the best of what we currently have, and will direct ought huge frustration because the audience of politicians and outraged critics of the recent system who outlook answers and outlook them now.

The incentives ought generate BS are no apt ought decrease — if anything, rising spending and stagnant health outcomes strengthen them — accordingly it is total the more significant ought eat an accurate and motivate method ought find and deter BS at health care.

In a noise 1969 address ought the National council of Teachers of English entitled “Bullshit and the skill of Crap Detection,” educator, media theorist, and cultural critic Neil Postman said that “helping kids ought activate their crap-detectors ought receive precedence above any other legitimate educational close … each day, at nearly each way, people are exposed ought more bullshit than is noise because them ought endure.”

We eat carried Postman’s flag into academia with two reports, one at 2018 and another this year, that identify 21 various forms of BS at health care. Here are our peak 10:


(Mark J. Terrill/AP)

#1: patient Engagement

Patient combat is one of the cornerstones of the consumerism motion at health care. It method that individuals are concerned nearly their health status, motivated ought do the precise things (eat right, exercise, don’t smoke, yada yada yada), type with their providers, and trace their recommendations. They ought too exist voluntary ought explore out information nearly their providers, deliberate the pay and peculiarity rankings of clinicians and hospitals, and compose cost-effective choices regarding their care.

“It force happen. Shyeah! And monkeys force fly out of my butt,” because Wayne Campbell of Wayne’s clay force eat said. Most of the scenarios described above rarely happen; if they do, they occur mostly among the “worried well.” Individuals most at risk, principally those with multiple chronic conditions, are maybe least able ought code alike consumers and prove the combat that advocates are looking for. Instead, they are burdened with a host of health, financial, and social problems that undermine efforts ought exist more proactive. Many of them don’t outlook ought exist engaged. They just outlook ought exist healed and progress home.

Patient combat is too blunted by third-party insurance coverage. Such coverage can boundary an individual’s economical exposure, and efforts ought promote more combat by getting patients ought eat more “skin at the game” across higher deductibles and co-pays always arise at deferrals of needed care. We don’t deliberate that is the type of consumer behavior we are looking for.

Read more: big information always yields minute returns. Here’s how ought repair that

#2: big Data

The Economist devoted its February 3, 2018, cover page ought “How information Will alter Health Care.” The prose suggests that Apple, Google, Facebook, and Microsoft are poised ought disrupt (more nearly disruption later) the health care industry across new apps, sham intelligence, and big data.

To exist honest, we aren’t certain what “big data” emerge like. The word always method having more sources of information nearly a patient, including his or her genetic profile, diagnostic tests, sociodemographic characteristics, and use of medical resources. That’s total noise and good. however more information is no a solution at itself. because others eat argued, big information does no necessarily consult big understanding. It may, instead, just crop more noise from which ought distill a signal.

To exist useful, big information will appeal theories of what is associated with what and what causes what. It isn’t dirt that the corollary ought big data, “analytics,” supplies these missing ingredients. Another spread is that more observations (statistical power) are needed above the two parties closest ought the delivery of health care: the doctor and the patient. if big information does no supply that, we are left with a lot of information above a minute instance that can no talk us much.

#3: scream at the consultants

Many of the solutions offered ought health care providers are developed by consulting firms that nurse ought use one-size-fits-all, off-the-shelf designs developed at other industries. Modifications because particular features of the health care sector, alike the lack ought confer authority ought physicians and nurses and the particular risks of errors, appeal specialized learning that consultants always do no eat and accordingly aren’t made. Consultants rarely upset ought deliberate the maxim that “health care is different” or that “all health care is local,” accordingly why upset customizing, even though solutions imported from elsewhere are apt ought fail.

#4: Transformation

Transformation is another example of BS at health care. The word first appeared when the Commonwealth Fund created a Cartesian map with the industry’s migration from fragmented ought integrated providers above the X-axis and from fee-for-service ought option payment models above the Y-axis. It has been more recently popularized because the motion from “volume ought value.”

What’s wrong with transformation? no total of it ends up well. just appeal Gregor Samsa who, at Franz Kafka’s classic novella, “The Metamorphosis,” wakes up ought discover himself changed into a monstrous bug. people omit that Samsa’s first concept upon seeing his new “form” is that he hates his job. That sounds a bit alike doctors and their recommendation of transformation. Moreover, some transformations don’t imply progress, just a alter at state. A tadpole turns into a frog, besides that doesn’t compose the frog superior at any way, just different.

There are more grave issues with the concept that health care is currently undergoing a transformation. First, the proof does no aid it; indeed, the velocity of alter across both the X-axis and Y-axis at the Commonwealth Fund’s map is remarkably slow. Second, there is no indispensable correlation among what is going above across the two axes. Third, it is no dirt that this transformation is associated with improvements at peculiarity or reductions at pay suggested by its proponents.

# 5: Synergy

One of the most often used (and poorly understood) condition ought aid new corporate strategies, the term synergy stems from the Greek term suneisis, which method “your rivers of treaty flowing together.” We are no certain corporate strategists eat this at mind. Usually, they tell the simplistic phrase “1 + 1 = 3.”

The closest similarity that comes ought care is a good marriage. at such cases, there can indeed exist synergy with the strengths of each feast complementing the weaknesses of the other, fostering better decision-making, having ought buy sole one lay of china, and having one good lay of ears and one good lay of eyes at the cinema. Of course, nearly half of total marriages close at divide (not much synergy there), and half of the remainder are wretched (not much synergy there, either). at other words, synergy sometimes mill at wedding and at business, besides always it does not.

What happens when synergy meets corporate strategy? if you are tempted here, you force outlook ought read Alfred Chandler’s book “Scale and Scope: The Dynamics of Industrial Capitalism.” Or deliberate the extensive literature above corporate diversification. after nearly 50 years of research, the reply ought the puzzle of if diversification improves company  operation is, ought cite George Carlin, “definitely no yeah.” Some diversification can help, besides no a lot. There is an match amount of proof that staying focused at one district is show good, too.

#6: Roll-ups

Roll-ups are a favorite tactic because forming horizontal chains of organizations. Entrepreneurs begin by buying one outfit; then buy another below the assure of combined just force and efficiencies of scale; and abstract above a grander scale because they rgeister a behemoth. Entrepreneurs charm new targets and investors based above these promises (and maybe equity); they satisfy Wall path analysts by morality of combining the allowance of the acquired firms ought emerge “growth.” This motivates new targets and investors ought connect the party. because the late Princeton economist Uwe Reinhardt once pointed out, it is akin ought a Ponzi scheme.

Roll-ups eat a fairly ignominious origin. Wayne Huizinga (of BlockBuster fame) kicked it off by combining smaller rubbish hauling companies at the late 1960s into a corporation called garbage Management. Considering what followed, he got the call right. Health care companies got into the code during the 1960s and 1970s by forming hospital chains, and again during the 1980s and 1990s by forming doctor drill management companies. These health care roll-ups failed ought better peculiarity and diminish cost. They are now making a comeback; the promises of roll-ups today emerge eerily alike the promises floated at the 1980s and 1990s. because we eat written elsewhere, those responsible because the past debacles eat also died or retired, leaving the recent lay of managers and investors ought perhaps cite the mistakes of the past.

#7: Economies of scale

During the 1990s, Wall path analysts justified each health care merger based above economies of scale. We liken this metric ought Helen of Troy — the rationale that launched a thousand mergers.

The word economies of scale gets repeated accordingly always that everyone assumes they get ought exist. This is known because the “illusory reality effect,” whereby statements heard repeatedly are more believable than statements heard just once. There is no puzzle that minute companies always eat high full costs because they get ought allowance because fixed or setup costs just ought win going and ought exist. however many people close from this reality that if hospital systems, doctor networks, insurers, pharmaceutical companies, and the alike just win big enough, efficiencies will emerge. besides most health care firms are people intensive and accordingly lack scale economies beyond a relatively modest size.

Chandler’s book “Scale and Scope” covers this topic. We’ll trouble ought summarize it at a sentence: Scale economies cease above running a higher volume at faster haste above a reduced infrastructure. How many multi-hospital systems eat done that?

#8: Bandwagons

Every industry is apt ought “collective movements” — implication everyone jumps above the fashionable bandwagon. This behavior is always driven by horror and uncertainty, with people imitating others because a protective device. Health care has suffered from this behavior because decades. Bandwagon movements eat produced waves of hospital mergers and fits of perpendicular integration and corporate diversification. Such movements are bred by contagion — getting the germ that has infected your competitor. nobody has bothered ought deliberate that innovations adopted because bandwagon reasons rarely better corporate performance. Ideas do no eat ought exist proof based ought diffuse.

#9: Disruption

Clayton Christensen popularized the word “disruptive innovation.” Such innovation involves lower-cost and lower-quality products or services that permeate an underserved (or non-served) just and then immigrate upstream ought receive piece away from incumbents who omit the upstarts. This is a legitimate and significant novel of how some industries evolved. besides does it really use ought health care?

Christensen himself is no even sure, even after writing nearly the concept because nearly two decades. at 2017, he issued a explain titled, “How Disruptive Innovation can Finally Revolutionize Health care,” (emphasis added).

Many things were supposed ought eat disrupted the health care industry — retail clinics, ambulatory surgery centers, sole specialty hospitals, and the alike — besides did not. accordingly far, no model offering “much cheaper, almost-but-not-quite-as-good quality” care has taken above at the health care sector. Narrow network health plans, implication those that present a limited option of providers at exchange because lower premiums, are the most plausible recent candidate, besides buyers are distant from satisfied and the plans themselves operate below the threaten of backlash, specially because how they heal out-of-network use. Likewise, high-deductible health plans eat been spreading, besides no without criticism. at neither instance eat these innovations however transformed the industry.

# 10: Stage models

Health care consultants, executives, and policymakers are fond of “stage models” — planned endeavors at which things found upon foregoing efforts at linear sequence above time. during the 1990s, consultants proposed four stages across which health markets used to evolve from fragmented contest ought consolidated delivery systems. during the persist little years, we eat witnessed three stages of “meaningful use” because electrical medical records too because four stages at the motion ought value.

Proponents appearance undeterred by the proof that these models are always simplistic and wrong. alter is messy, with early results always going south into the “valley of despair.” One anxiety does no necessarily direct ought another, it’s sometimes significant ought double back, and unpredictable jumps arise that bypass the planned avenue and appeal a shortcut. besides how do you lay total of that into a PowerPoint glide that motivates people ought progress across with the change?


(Joe Raedle/Getty Images)

Identifying BS at health care

Astrophysicist and celebrity Carl Sagan once developed a baloney detection kit ought root out bogus science. Here are some of the tools he included:

  • seek independent confirmation of the “facts”
  • encourage debate above the evidence
  • “authority” carries no weight at the argument
  • consider multiple working hypotheses
  • insist above a close tie of evidence

That’s no a evil lay ought begin because people trying ought compose judgement of what’s going above at the health care space.

Lawton R. Burns, Ph.D., is professor of health care management and management at the college of Pennsylvania’s Wharton college of Business. badge V. Pauly, Ph.D., is professor of health care management and affair economics and public policy at the Wharton School.