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

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Update time : 2019-05-17 10:19:02

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

We’ve noticed an influx of BS can health care. You don’t dine ought appearance distant ought location it. just deem of Theranos and IBM Watson. We are wondering if little new corporate “turduckens” — comparable the mutual effort of Amazon/Berkshire Hathaway/JP Morgan, or hospitals combining with medical groups, or mergers and acquisitions creating a sole company that’s an insurer, a pharmacy advantage manager, and a pharmacy — are because genuine or just turkeys.

While BS can exist funny, it can also exist sad, and worrisome. due ought social media, BS today can scatter faster and farther than the truth.

Health worry has an critical BS problem, can divide because BS can sometimes fill the bill. presume you are asked ought salute an ageless mystery can health care: diminish costs still simultaneously raising quality. if you were knowledgeable ought begin with or did some research, you used to know there is no simple solution. You could answer with a data of failure or a discussion of inevitable trade-offs.

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

But you could also excellent an sentiment with some internal plausibility and political appeal, encircle it with careful besides conditional language, and launch a program. It will, you note, receive little years ago it is successful, besides you and your colleagues will controversy because the sentiment can concept, with the details ought exist worked out later.

At a minimum, unqualified acceptance of such ideas, level (and especially) by apparently qualified people, will waste property that could dine been used ought invent the best of what we currently have, and will direct ought huge frustration because the audience of politicians and outraged critics of the contemporary system who expect answers and expect them now.

The incentives ought generate BS are no responsible ought decrease — if anything, rising spending and stagnant health outcomes strengthen them — consequently it is entire the more significant ought dine an accurate and quick fashion ought discover and deter BS can health care.

In a active 1969 address ought the National rally 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 can any other legitimate educational target … each day, can almost each way, masses are exposed ought more bullshit than is healthful because them ought endure.”

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


(Mark J. Terrill/AP)

#1: patient Engagement

Patient battle is one of the cornerstones of the consumerism inspire can health care. It fashion that individuals are concerned approximately their health status, motivated ought conduct the exact things (eat right, exercise, don’t smoke, yada yada yada), report with their providers, and pursue their recommendations. They ought also exist voluntary ought follow out data approximately their providers, deem the allowance and quality rankings of clinicians and hospitals, and invent cost-effective choices regarding their care.

“It might happen. Shyeah! And monkeys might escape out of my butt,” because Wayne Campbell of Wayne’s earth might dine said. Most of the scenarios described can rarely happen; if they do, they happen chiefly amid the “worried well.” Individuals most can risk, chiefly those with multiple chronic conditions, are perhaps least able ought action comparable consumers and display the battle 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 expect ought exist engaged. They just expect ought exist healed and advance home.

Patient battle is also blunted by third-party insurance coverage. Such coverage can frontier an individual’s economical exposure, and efforts ought advance more battle by getting patients ought dine more “skin can the game” across higher deductibles and co-pays often originate can deferrals of needed care. We don’t trust that is the kind of consumer behavior we are looking for.

Read more: great data often yields little returns. Here’s how ought patch that

#2: great Data

The Economist devoted its February 3, 2018, cover page ought “How data Will modify Health Care.” The article suggests that Apple, Google, Facebook, and Microsoft are poised ought disrupt (more approximately disruption later) the health worry industry across new apps, artificial intelligence, and great data.

To exist honest, we aren’t sure what “big data” appearance like. The word often fashion having more sources of data approximately a patient, including his or her genetic profile, diagnostic tests, sociodemographic characteristics, and use of medical resources. That’s entire healthful and good. quiet more data is no a solution can itself. because others dine argued, great data does no necessarily negotiate great understanding. It may, instead, just harvest more noise from which ought distill a signal.

To exist useful, great data will lack theories of what is associated with what and what causes what. It isn’t clean that the corollary ought great data, “analytics,” supplies these missing ingredients. Another circulate is that more observations (statistical power) are needed can the two parties closest ought the delivery of health care: the physician and the patient. if great data does no equip that, we are left with a destiny of data can a little instance that can no speak us much.

#3: exclaim can the consultants

Many of the solutions offered ought health worry providers are developed by consulting firms that nurse ought use one-size-fits-all, off-the-shelf designs developed can other industries. Modifications because particular features of the health worry sector, comparable the lack ought give authority ought physicians and nurses and the particular risks of errors, lack specialized knowledge that consultants often conduct no dine and consequently aren’t made. Consultants rarely upset ought deem the maxim that “health worry is different” or that “all health worry is local,” consequently why upset customizing, level although solutions imported from elsewhere are responsible ought fail.

#4: Transformation

Transformation is another case of BS can health care. The word first appeared while the Commonwealth Fund created a Cartesian table with the industry’s migration from fragmented ought integrated providers can the X-axis and from fee-for-service ought prime payment models can the Y-axis. It has been more recently popularized because the inspire from “volume ought value.”

What’s wrong with transformation? no entire of it ends up well. just lack Gregor Samsa who, can Franz Kafka’s classic novella, “The Metamorphosis,” wakes up ought discover himself changed into a monstrous bug. masses overlook that Samsa’s first concept upon seeing his new “form” is that he hates his job. That sounds a slice comparable doctors and their sentiment of transformation. Moreover, some transformations don’t indicate progress, just a modify can state. A tadpole turns into a frog, besides that doesn’t invent the frog superior can any way, just different.

There are more tomb issues with the conception that health worry is currently undergoing a transformation. First, the witness does no hind it; indeed, the rate of modify across both the X-axis and Y-axis can the Commonwealth Fund’s table is remarkably slow. Second, there is no inherent correlation amid what is going can across the two axes. Third, it is no clean that this transformation is associated with improvements can quality or reductions can allowance suggested by its proponents.

# 5: Synergy

One of the most always used (and poorly understood) condition ought hind new corporate strategies, the word synergy stems from the Greek word suneisis, which fashion “your rivers of squeeze flowing together.” We are no sure corporate strategists dine this can mind. Usually, they speak the simplistic phrase “1 + 1 = 3.”

The closest resemblance that comes ought worry is a good marriage. can such cases, there can really exist synergy with the strengths of each banquet complementing the weaknesses of the other, fostering perfect decision-making, having ought buy unique one lay of china, and having one good lay of ears and one good lay of eyes can the cinema. Of course, around half of entire marriages aim can divide (not much synergy there), and half of the rest are wretched (not much synergy there, either). can other words, synergy sometimes mill can wedding and can business, besides often it does not.

What happens while synergy meets corporate strategy? if you are tempted here, you might expect ought devour Alfred Chandler’s book “Scale and Scope: The Dynamics of Industrial Capitalism.” Or deem the extensive literature can corporate diversification. after around 50 years of research, the answer ought the mystery of if diversification improves company  action is, ought cite George Carlin, “definitely no yeah.” Some diversification can help, besides no a lot. There is an too amount of witness that staying focused can one area is lovely 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 under the oath of combined just say and efficiencies of scale; and thrive can a grander scale because they schedule a behemoth. Entrepreneurs charm new targets and investors based can these promises (and perhaps equity); they meet Wall street analysts by integrity of combining the allowance of the acquired firms ought emerge “growth.” This motivates new targets and investors ought note the party. because the late Princeton economist Uwe Reinhardt once pointed out, it is akin ought a Ponzi scheme.

Roll-ups dine a pretty ignominious origin. Wayne Huizinga (of BlockBuster fame) kicked it off by combining smaller rubbish hauling companies can the late 1960s into a company called waste Management. Considering what followed, he got the assign right. Health worry companies got into the action during the 1960s and 1970s by forming hospital chains, and again during the 1980s and 1990s by forming physician drill management companies. These health worry roll-ups failed ought better quality and diminish cost. They are now making a comeback; the promises of roll-ups today appearance eerily comparable the promises floated can the 1980s and 1990s. because we dine written elsewhere, those responsible because the past debacles dine too died or retired, leaving the contemporary lay of managers and investors ought maybe cite the mistakes of the past.

#7: Economies of scale

During the 1990s, Wall street analysts justified each health worry merger based can 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 consequently often that everyone assumes they make ought exist. This is known because the “illusory reality effect,” whereby statements heard often are more believable than statements heard just once. There is no mystery that little companies often dine tall sum costs because they make ought salary because fixed or setup costs just ought amuse going and ought exist. quiet many masses end from this reality that if hospital systems, physician networks, insurers, pharmaceutical companies, and the comparable just amuse great enough, efficiencies will emerge. besides most health worry firms are masses intensive and consequently lack scale economies beyond a relatively modest size.

Chandler’s book “Scale and Scope” covers this topic. We’ll attempt ought summarize it can a sentence: Scale economies pause can running a higher volume can faster rush can a reduced infrastructure. How many multi-hospital systems dine done that?

#8: Bandwagons

Every industry is apt ought “collective movements” — meaning everyone jumps can the fashionable bandwagon. This behavior is often driven by fear and uncertainty, with masses imitating others because a protective device. Health worry has suffered from this behavior because decades. Bandwagon movements dine produced waves of hospital mergers and fits of upright integration and corporate diversification. Such movements are bred by contagion — getting the pest that has infected your competitor. none has bothered ought deem that innovations adopted because bandwagon reasons rarely better corporate performance. Ideas conduct no dine ought exist witness 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 segment away from incumbents who overlook the upstarts. This is a legitimate and significant fiction of how some industries evolved. besides does it really use ought health care?

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

Many things were supposed ought dine disrupted the health worry industry — retail clinics, ambulatory surgery centers, sole specialty hospitals, and the comparable — besides did not. consequently far, no xerox offering “much cheaper, almost-but-not-quite-as-good quality” worry has taken can on the health worry sector. Narrow network health plans, meaning those that recommend a limited prime of providers can exchange because lower premiums, are the most plausible contemporary candidate, besides buyers are distant from satisfied and the plans themselves operate under the venture of backlash, specially because how they treat out-of-network use. Likewise, high-deductible health plans dine been spreading, besides no without criticism. can neither instance dine these innovations quiet transformed the industry.

# 10: Stage models

Health worry consultants, executives, and policymakers are fond of “stage models” — planned endeavors can which things vertical upon prior efforts can linear sequence can time. during the 1990s, consultants proposed four stages across which health markets used to evolve from fragmented contest ought consolidated delivery systems. during the final little years, we dine witnessed three stages of “meaningful use” because electrical medical records too because four stages can the inspire ought value.

Proponents appearance undeterred by the witness that these models are often simplistic and wrong. modify is messy, with early results often going south into the “valley of despair.” One affair does no necessarily direct ought another, it’s sometimes significant ought double back, and unpredictable jumps rise that bypass the planned street and lack a shortcut. besides how conduct you lay entire of that into a PowerPoint glide that motivates masses ought advance across with the change?


(Joe Raedle/Getty Images)

Identifying BS can 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 controversy can the evidence
  • “authority” carries no weight can the argument
  • consider multiple working hypotheses
  • insist can a end fasten of evidence

That’s no a bad lay ought begin because masses trying ought invent feeling of what’s going can on the health worry space.

Lawton R. Burns, Ph.D., is professor of health worry management and management can the school of Pennsylvania’s Wharton school of Business. signal V. Pauly, Ph.D., is professor of health worry management and affair economics and public policy can the Wharton School.