After a sports injury, Esteban Serrano owed $829.41 for a knee brace purchased with insurance through his doctor's office. The same kind of braces sell for less than $250 online.
Last October, Esteban Serrano wrenched his knee badly during his weekly soccer game with friends.
Serrano, a software engineer, grew up playing soccer in Quito, Ecuador, and he has kept up his sport since moving to the United States two decades ago.
Do you have an exorbitant or baffling medical bill? Join the KHN and NPR's Bill-of-the-Month Club and tell us about your experience. We'll feature a new one each month.
He hobbled off the field and iced the knee. But the pain was so severe, he made an appointment with Rothman Orthopaedic Institute, a network of orthopedists practicing in Greater Philadelphia, New Jersey and New York.
The doctor diagnosed a strain of the medial collateral ligament, or MCL, and prescribed over-the-counter pain medication as well as a hinged knee brace, which he used for several weeks until he'd healed.
He expected his insurance to cover his treatment as a plan from a previous job had covered him when he needed surgery to fix a broken nose sustained in another soccer game in 2017.
Then the bill came.
"The doctor told me that he thought I didn't have damage, that it was more of an inflammation, but he ordered an MRI just to make sure," said Serrano. (The MRI confirmed that suspicion.)
Serrano said the brace did ease the discomfort and stabilized his knee as it healed. However, the shocking bill was almost more painful — he owed the orthopedic practice $829.41.
"You can find the same brace for less than $250 online," he said.
The bill came close to Christmas, when Serrano's 12-year-old daughter wanted her first iPhone. "I told her 'Sorry, honey, but I already paid a price of an iPhone for the hinged knee brace,'" Serrano joked.
Serrano emphasized that he felt lucky to have the money to handle a bill that for many people could equal a month's rent or three months of groceries.
Knee braces fall into a category of products called "durable medical equipment," whose prices can vary widely. Items range from slings and braces to wheelchairs and commodes to glucose meters and breast pumps for new mothers. Doctors and hospitals that dispense and prescribe such equipment for patients to take home almost always bill for them and add hefty markups that can catch patients unaware.
Bottom of Form
Braces and other products "are often marked up two or three times what the cost is, and unfortunately, that is the standard practice," said Dr. Matthew Matava, an orthopedic surgeon and chief of sports medicine for Washington University Physicians in St. Louis.
Rothman Orthopaedic didn't respond to requests for comments.
The type of hinged knee brace Serrano bought was a DonjoyPlaymaker. Donjoy is one of the nation's largest producers of braces. A customer service representative for the company said it charges a retail price of $242.51 for the model Serrano got. Serrano paid more than three times that price.
In an emailed statement about the case, an Aetna spokesman wrote that "while the cost of a knee brace, or any other health care service, is determined by the negotiated rate between the health care provider and the health plan, the starting point is the charge from the health care provider."
It is not even clear that such an elaborate knee brace was needed for Serrano's injury.
Dr. Elizabeth Matzkin, chief of Women's Sports Medicine at Brigham and Women's Hospital in Boston and an assistant professor at Harvard Medical School, said that while it is helpful to give patients some kind of knee brace for support after MCL injuries, the use of a hinged knee brace does not influence recovery, according to studies. She called hinged braces "luxury products." Simpler, cheaper braces also offer support.
Resolution: Serrano recalled that when he received the brace, the practitioner showed him a form with its estimated cost in writing. He remembered his share was more than $700, but he didn't pay too much attention because he assumed his insurance would cover it.
After receiving the bill, he made several phone calls to the doctor's practice to get a copy of the form he'd signed. It stated that the product could be returned within seven days. A month had already passed. Because he had not met his deductible, his $829.41 balance was even more than the estimate.
The Takeaway: These days, many types of equipment dispensed by doctors' offices or hospitals involve a charge. Don't assume generosity. Ask the doctor to identify precisely what you need and explain why you need it.
When a doctor or hospital offers you a piece of equipment to help your healing, decide if you really need it or will use it. Say "no" if you will not. Ask if you will be billed for it and how much.
Many items can be purchased at a fraction of the cost online or from a pharmacy just down the block.
Know your insurance plan's copay for medical equipment (often 20 percent). The cost of purchasing the equipment yourself online may well be less than the copay if you purchase through a medical office.
NPR produced and edited the interview with KHN Editor-in-Chief Elisabeth Rosenthal for broadcast.
Do you have an exorbitant or baffling medical bill? Join the KHN and NPR Bill-of-the-Month Club and tell us about your experience.
The rules proposed by HHS take aim at data blocking, in which tech companies or health systems limit the sharing or transfer of information from medical files.
This article first appeared Tuesday, March 26, 2019 in Kaiser Health News.
The chairman of the Senate health committee on Tuesday backed new federal regulations to remove roadblocks patients can face in obtaining copies of their electronic medical records.
"These proposed rules remove barriers and should make it easier for patients to more quickly access, use and understand their personal medical information," Lamar Alexander (R-Tenn.), chairman of the Health, Education, Labor & Pensions Committee, said in a statement prepared for a hearing on the rules that kicks off Tuesday at 10 a.m.
The rules, proposed last month by the Department of Health and Human Services, take aim at so-called information blocking, in which tech companies or health systems limit the sharing or transfer of information from medical files.
Alexander said HHS believes the new rules should give more than 125 million patients easier access to their own records in an electronic format.
"This will be a huge relief to any of us who have spent hours tracking down paper copies of our records and carting them back and forth to different doctors' offices. The rules will reduce the administrative burden on doctors so they can spend more time with patients," Alexander said.
The proposal requires manufacturers to fashion software that can readily export a patient's entire medical record — and mandates that healthcare systems provide these records electronically at no cost to the patient.
Congress jump-started the nation's switch from paper to electronic health records in 2009 using billions of dollars in financial stimulus funding to help doctors and hospital purchase the equipment. Officials expected the shift to cut down on medical errors, reduce unnecessary medical testing and other waste and give Americans a bigger role in managing their health care.
Yet in the decade since the rollout, critics have argued that the government spent billions financing software that can cause some new types of errors and typically cannot share information across health networks as intended.
"Botched Operation," a recent investigationpublished by KHN and Fortune, found that the federal government has spent more than $36 billion on the initiative. During that time, thousands of reports of deaths, injuries and near misses linked to digital systems have piled up in databases — while many patients have reported difficulties getting copies of their complete electronic files.
Jonathan Lomurro, a medical malpractice attorney in New Jersey, said his clients usually have to go to court to get their complete medical record. The information that health care providers fight most bitterly to keep from them, he said, are the audit logs — or the data that show every time a record has been accessed or edited, and by whom and when.
That "metadata," he and other plaintiff attorneys argue, is critical for patients to understand the history of their care, particularly in cases where something has gone wrong.
In an interview prior to Tuesday's hearing, Lomurro criticized the HHS proposal, saying it limits a patient's ability to obtain these logs. While the proposed rule requires the systems to share most data from a medical record with a patient, it excludes audit trails from that classification.
"While the proposal talks about the need of patient access … they then strip the greatest protections from the patient," said Lomurro. "I am at a loss on how this could ever be a beneficial change to the rules and help patients."
Seema Verma, who heads the Centers for Medicare & Medicaid Services, agreed that patients should be entitled to audit log information. "At the end of the day, it's all of the patient's data. If it affects and touches their medical record, then that belongs to them," Verma said in an interview last month.
The HHS proposal also encourages doctors and other users of EHR technology to share information about software problems they encounter by prohibiting "gag clauses" in sales contracts. Critics have long argued that the clauses have prevented users from freely discussing flaws, including software glitches and other breakdowns that could result in medical errors and patient injuries. In 2012, an Institute of Medicine report blamed the confidentiality clauses for impeding efforts to improve the safety of health information technology.
But a major remaining problem in wiring up medicine is the lack of interoperability across rival data systems, said Christopher Rehm, chief medical informatics officer of LifePoint Health, a hospital system in Brentwood, Tenn. In testimony prepared for the Tuesday hearing, Rehm called it "the equivalent of telling people they must buy cars and move those cars from place to place, but there are no roads and no agreed-upon design for the roads, let alone the funding to actually pay for the construction."
According to Rehm, the average-sized community hospital (161 beds) spends nearly $760,000 a year on information technology investments needed to meet federal regulations. He said the costs "are crushing our industry where margins are already thin."
Gloria Brown didn't get a good night‘s sleep. Her husband, Arthur Brown, 79, has Alzheimer‘s disease and had spent most of the night pacing their bedroom, opening and closing drawers, and putting on and taking off his jacket.
So Gloria, 73, asked a friend to take Arthur out for a few hours one recent afternoon so she could grab a much-needed nap. She was lucky that day because she didn't need to call upon the home health aide who comes to their house twice a week.
The price of paying for help isn't cheap: The going rate in the San Francisco Bay Area ranges from $25 to $35 an hour. Gloria Brown estimates she has spent roughly $72,000 on caregivers, medications and supplies since her husband was diagnosed four years ago.
"The cost can be staggering," said state Assemblyman Jim Patterson (R-Fresno), author of a bill that would give family caregivers in California a tax credit of up to $5,000 annually to help offset their expenses.
A 2016 study by AARP found that the average caregiver spends $6,954 a year on out-of-pocket costs caring for a family member. The expenses range from $7 for medical wipes to tens of thousands of dollars to retrofit a home with a walk-in shower or hire outside help.
AARP, a lobbying organization for people 50 and older, is pushing similar bills in at least seven other state legislatures this year, said Elaine Ryan, the group‘s vice president of State Advocacy and Strategy Integration. Arizona, Illinois, Nebraska, New Jersey, New York, Rhode Island and Wisconsin are considering legislation, and AARP expects measures also to be introduced in Florida, Massachusetts and Ohio.
In Wisconsin, two Republicans and two Democrats are behind that state's tax credit measure.
"We need a whole discussion about how we can best keep people at home and meet their needs," said state Rep. Debra Kolste, a Democrat who explained that most people know someone who is caring for a family member. She hopes the measure can make it through the Republican legislature and be signed by Wisconsin's Democratic governor.
New Jersey approved a state income tax credit in 2017 specifically for caregivers of wounded veterans. However, efforts in other states have failed, including in Arizonalast year and Mississippi and Virginia this year.
At the federal level, bills that would have created a federal income tax credit of up to $3,000 never got out of congressional committees last year.
"Whether I'm in Billings, Mont., or in Mississippi, the caregiver tax credit is something that people are asking for," Ryan said. "All they're asking for is a little financial help to offset these costs."
A tax credit, said Brown and other caregivers, would be welcome relief to the estimated4.5 million family caregivers in California who care for a loved one with a chronic, disabling or serious health condition. Nationwide, the AARP estimates there are about 40 million people caring for family members.
As her husband's disease progresses, Gloria Brown expects costs to escalate. For instance, she wants to install bars in the bathroom to help prevent her husband from falling, and anticipates she will need more professional help.
"I think we're just moving into that stage where I'm going to see the dollars going out for things that will help to make things easier for him at home and more comfortable," Brown said. "It's a cost you just hadn't anticipated."
Long-term caregiving has emerged as one of the major issues in California's Capitol this year, with proposals ranging from naming a state "Aging Czar" to funding a new cash benefit for long-term care services. In his State of the State address last month, Gov. Gavin Newsom called for a master plan for aging.
"I've had some personal — and painful — experience with this recently," Newsom told the joint session of the legislature.
Newsom, whose father had dementia and died last year, also has tapped former first lady Maria Shriver to lead a new Alzheimer's Prevention and Preparedness Task Force, and has asked lawmakers to approve $3 million in state funds for Alzheimer's disease research.
Patterson's bill would provide up to a $5,000 state income tax credit to family caregivers for five years, starting in tax year 2020. They would be reimbursed for 50% of eligible expenses, such as retrofitting a home, hiring an aide and leasing or buying specialty equipment. The credit would be available to individuals who make up to $170,000 a year, or joint income tax filers who make up to $250,000.
Patterson, a Republican in the minority, is hopeful he can convince his colleagues that giving people a tax credit is financially sound because it would enable caregivers to keep their loved ones at home rather than relying on more expensive government services.
"If members of the legislature and the governor would look through the eyes of their own families, friends and neighbors … I think it can be passed and be signed," Patterson said.
But the measure faces competition for a slice of California's $21 billion surplus, from proposals by the governor and lawmakers to boost funding for education, healthcare, housing and dozens of other programs.
For Pam Sogge of Oakland, Calif., a tax credit would allow her to hire a home health aide for an additional three hours a week.
Her husband, Rick Sogge, 61, has early-onset Alzheimer‘s and becomes frantic when left by himself. Sometimes when she leaves him alone in another room of their home, he searches for her every two minutes.
Because Rick Sogge is still physically healthy, most of the couple's caregiving expenses pay for part-time help to take him on outings so Pam can work, run errands or go to the doctor's office.
"You have a very uncertain financial future. You don't know what‘s going to happen. You don't know how long it‘s going to take. So you're very conservative," said Pam Sogge, 56, who has been caring for her husband for five years. "A tax credit, in a way, it's permission and encouragement to get some help."
ERs increasingly have become the care of first and last resort for people in the grips of a psychiatric episode. Now, hospitals around the country are opening emergency units that calmly cater to patients with mental health needs.
This article first appeared on Monday, March 25, 2019 in Kaiser Health News.
For decades, hospitals have strained to accommodate patients in psychiatric crisis in emergency rooms. The horror stories of failure abound:
Patients heavily sedated or shackled to gurneys for days while awaiting placement in a specialized psychiatric hospital, their symptoms exacerbated by the noise and chaos of emergency medicine. Long wait times in crowded ERs for people who show up with serious medical emergencies. High costs for taxpayers, insurers and families as patients languish longer than necessary in the most expensive place to get care.
"If you are living with schizophrenia or bipolar disorder, that is a really tough way to begin that road to recovery," said Dr. Jack Rozel, president of the American Association for Emergency Psychiatry.
In pockets across the country, hospitals are trying something new to address the unique needs of psychiatric patients: opening emergency units specifically designed to help stabilize and treat patients and connect them to longer-term resources and care. These psychiatric ERs aim to address the growing number of patients with mental health conditions who end up hospitalized because traditional emergency rooms don't have the time or expertise to treat the crisis.
The rate of ER visits involving psychoses, bipolar disorder, depression or anxiety jumped more than 50%from 2006 to 2013, according to the federal Agency for Healthcare Research and Quality. Roughly 1 in 8 emergency department visits now stem from mental illness or substance use disorders, the data show.
The psychiatric ERs, staffed with nurses, social workers and psychiatrists, work to treat and release patients in under 24 hours, much as traditional emergency rooms handle physical ailments. Those who are well enough to go home get discharged, while those who need more treatment are admitted to the hospital or transferred to an inpatient facility.
There are now roughly 100 such units across the country, said Dr. Scott Zeller, vice president of acute psychiatry at Vituity, a physician-led organization that provides staffing and consulting services to medical centers nationwide.
Zeller pioneered the approach while working as chief of psychiatric emergency services at John George Psychiatric Hospital in Alameda County, Calif. Over time, he transformed the center from a traditional ward where restraints were common into one that treated patients in a more supportive, living-room like setting. The results — in terms of both patient outcomes and cost-savings — made Zeller a believer.
He is helping design 10 new units, including in California, Florida, Illinois and Tennessee. Each is distinct, accepting patients in somewhat different circumstances and offering a slightly different range of services.
Patients who arrive at an emergency room for psychiatric or substance use disorders are more than twice as likely to be admitted than other patients, federal data show. And yet about 80 percent of the time, Zeller said, patients‘mental health crises can be resolved without a costly inpatient hospital stay. A patient may be having a psychotic episode because he fell off his medications, for example, or having drug-induced hallucinations.
"We need to treat people at the emergency level of care," he said. "The vast majority of psychiatric emergencies can be resolved in less than 24 hours."
Nowhere To Hide
Wearing a hospital gown, Rachel Diamond lay back in her recliner in a spacious room in a relatively new ward at Providence Little Company of Mary Medical Center San Pedro, a hospital near the Port of Los Angeles. Nearby, a few patients slept on identical recliners, draped in soft blankets. Others communed at a kitchen table over microwaved meals. A nurse walked through the locked unit with a rolling cart, dispensing medications.
Except for a nursing station in the middle of the room, the unit didn't look much like a health care facility. The room was divided into men's and women's sides, with separate TVs. A few smaller rooms — where patients could meet with a psychiatrist or social worker — lined the unit's edge.
Anya Price, interim clinical supervisor and a nurse, said the unit was designed to feel more like a home than a hospital. "We're operating from an understanding that they're coming here to get better," Price said.
The open design of the unit, known as the "Outpatient Behavioral Health Center," allows patients to move freely. Staff said it also helps reduce problems because they can quickly spot a patient who may be getting agitated. Dr. Herbert Harman, a psychiatrist and medical director for the facility, said violence and the need for restraints are rare.
The unit is in a building a short walk from the medical center emergency room. It opened in 2017 and accepts patients from emergency rooms across Los Angeles County once they are deemed stable medically. So far this year, its staff has treated about 400 patients, Price said.
One recent morning, the patients included a man in his 40s found on the railroad tracks after an alcohol binge, and a woman with a history of schizophrenia who said she was seeing spirits. Some were there on involuntary holds because authorities had decided they were at risk of hurting themselves or others because of their illness.
Diamond, 30, said she has been diagnosed with depression and anxiety and has landed in multiple ERs over the past decade when her symptoms spiked out of control. During those stays, she said, she often felt isolated and in the dark about her treatment. Doctors typically numbed her with medications and consigned her to a guarded room. "No one really talked to me," said Diamond, who lives in Torrance, Calif. "It was like I was a caged animal."
She had been living in a car and fighting with her boyfriend in late February when she decided she wanted to end her life. She tried jumping out of a moving car, and when that didn't work, she grabbed a bottle of pills. She gets help for her mental health issues, but sometimes, she said, the stress becomes too much. This time, she was taken to a hospital emergency room in Torrance before being transferred to the San Pedro unit.
During her time in the behavioral health center — about 26 hours — she slept, received medications and met with nurses, a social worker and a psychiatrist. She said it was calmer than a regular ER, and the staff had time to talk, listen and help her through the worst of the crisis.
"I genuinely feel better enough to leave," she said. "I haven't been able to say that in a while."
A Return On Investment
Zeller argues that the use of emergency psychiatric clinics is both humane and cost-effective. Researchon the Alameda County model found such units can dramatically reduce how long patients spend in medical emergency rooms, and that about three-quarters of patients treated in the units can be discharged to the community rather than to inpatient care. That, Zeller said, can lessen the overwhelming demand for inpatient psychiatric beds and preserve available spots for those who truly require them. The model saves money for hospitals in part because the patients spend less time in emergency care.
"The return on investment is exponential," he said.
In Montana, the Billings Clinic opened a psychiatric stabilization unit last April across the street from the traditional ER. Dr. Eric Arzubi, psychiatry department chair, said nearly 10 percent of the visits in the Billings Clinic emergency room involve people in psychiatric crisis. Since the new unit opened, wait times for psychiatric patients have dropped from about 10 hours to four hours, and fewer patients are being admitted to the inpatient unit. Arzubi said his staff isn't trying to cure people of their mental illness but rather stabilize them and get them the care they need.
"Just like in the emergency room, you don't get comprehensive care," Arzubi said. "But you can stop the bleeding, you stabilize the patient and get them to the right level of care."
In some cases, that means a transfer to an inpatient facility.
Staff at the San Pedro unit decided soon after Chantelle Unique arrived that she would be one of those patients. Unique, who is 23, has been diagnosed with bipolar disorder and schizophrenia. She had been dancing on the roof and speaking gibberish when her mother called 911.
Unique said she has had a hard time in regular emergency rooms. "There are a million people," she said. For most of a morning at the San Pedro facility, she sat calmly watching TV, talking to nurses and eating spaghetti. But at one point, she started pacing and yelling at other patients. Nurses and security guards quickly surrounded her and persuaded her to return to her recliner and take additional medication.
Finding an inpatient bed for a patient like Unique with more progressed mental illness is not always easy, said clinical social worker Mark Tawfik. But he's committed to finding a way. "We have to make sure we find them adequate resources," he said. "Otherwise, they will come right back."
For Price, the clinical supervisor, even when a patient requires a transfer for more intensive care, there's satisfaction in knowing that person is headed in the right direction. If Unique hadn't been brought in, Price said, she would have been out in the community, lost to her delusions, putting herself at risk of accident or arrest.
In the unit, staff made sure she was safe, Price said, in addition to providing "a warm bed, some food and some compassion."
Food and Drug Administration Commissioner Scott Gottlieb on Wednesday called for tighter scrutiny of electronic health records systems, which have prompted thousands of reports of patient injuries and other safety problems over the past decade.
"What we really need is a much more tailored approach, so that we have appropriate oversight of EHRs when they're doing things that could create risk for patients," Gottlieb said in an interview with Kaiser Health News.
Gottlieb was responding to "Botched Operation," a report published this week by KHN and Fortune magazine. The investigation found that the federal government has spent more than $36 billion over the past 10 years to switch doctors and hospitals from paper to digital records systems. In that time, thousands of reports of deaths, injuries and near misses linked to EHRs have piled up in databases — including at least one run by the FDA.
Gottlieb said Congress would need to enact legislation to define when an electronic health record would require government oversight. He said that the digital records systems, which store a patient's medical history, don't fit neatly under the agency's existing mandate to regulate items such as drugs and medical devices.
Gottlieb said the best approach might be to say that an EHR that has a certain capability becomes a medical device. He called EHRs a "unique tool," noting that the risks posed by their use aren't the same as for a traditional medical device implanted in a patient. "You need a much different regulatory scheme," he said.
The 21st Century Cures Act of 2016 excludes the FDA from having oversight over electronic health records as a medical device.
Gottlieb said that health IT companies could add new functions that would improve EHRs, but they have been reluctant to do so because they didn't want their products to fall under FDA jurisdiction. He added that he was "not calling" for FDA to take over such a duty, however, and suggested that any new approach could be years away. Proponents have long argued that widespread use of EHRs can make medicine safer by alerting doctors to potential medical errors, though critics counter that software glitches and user errors may cause new varieties of medical mistakes.
How closely the FDA should watch over the digital medical record revolution has been controversial for years. The agency's interest in the issue perked up after Congress decided in February 2009 to spend billions of dollars on digital medical records as part of an economic stimulus program.
At the time, many industry groups argued that FDA regulation would "stifle innovation" and stall the national drive to bring medicine into the modern era. Federal officials responsible for doling out billions in subsidies to doctors and hospitals generally sympathized with that view and were skeptical of allowing the FDA to play a role.
The debate became public in February 2010, when Jeffrey Shuren, an FDA official, testified at a public hearing that the agency had tied six deaths and more than 200 injuries to health information technology. In all, the FDA said, it had logged 260 reports in the previous two years of "malfunctions with the potential for patient harm."
The agency said the findings were based largely on reports voluntarily submitted to the FDA and suggested "significant clinical implications and public safety issues." In one case cited, lab tests done in a hospital emergency room were sent to the wrong patient's file. Since then, several government and private repositories have associated thousands of injuries, near misses and deaths to EHR technology.
Shuren said in 2010 that the agency recognized that health information technology had great potential to improve patient care, but also needed oversight to "assure patient safety."
While some safety proponents agree that EHRs offer tremendous benefits, they also see greater opportunities to improve their safety.
Dean Sittig, a professor of bioinformatics and bioengineering at the University of Texas Health Science Center, said EHRs have improved safety within the health care system, but they have not eliminated errors to the extent that he would have expected. Federal officials were initially pushing for rapid adoption and "there wasn't a lot of interest in talking about things that could go wrong," Sittig told KHN and Fortune.
Earlier this month, Gottlieb announced his resignation from the FDA. His last day is scheduled to be April 5.
KHN correspondents Sarah Jane Tribble, Sydney Lupkin and Julie Rovner contributed to this report.
The opioid epidemic is spurring medical institutions around the country to create fellowships for aspiring doctors who want to treat the disorder with the same precision and science as other diseases.
This article was first published on Friday, March 22, 2019 at Kaiser Health News.
The U.S. Surgeon General's office estimates that more than 20 millionpeople have a substance use disorder. Meanwhile, the nation's drug overdose crisis shows no sign of slowing.
Yet, by all accounts, there aren't nearly enough physicians who specialize in treating addiction — doctors with extensive clinical training who are board-certified in addiction medicine.
The opioid epidemic has made this doctor deficit painfully apparent. And it's spurring medical institutions around the country to create fellowships for aspiring doctors who want to treat substance use disorder with the same precision and science as other diseases.
Now numbering more than 60, these fellowship programs offer physicians a year or two of postgraduate training in clinics and hospitals where they learn evidence-based approaches for treating addiction.
Such programs are drawing a new, talented generation of idealistic doctors — idealists like Dr. Hillary Tamar.
Driven To Connect With Patients In Need
Tamar, now in the second year of a family medicine residency in Phoenix, wasn't thinking about addiction medicine when she first started medical school in Chicago.
"As a medical student, honestly, you do your ER rotation, people label a patient as 'pain-seeking,' and it's bad," Tamar said. "And that's all you do about it."
But in her fourth year of med school, she happened to be assigned to a rotation at a rehab facility in southern Arizona.
"I was able to connect with people in a way that I haven't been able to connect with them in another specialty," the 28-year-old recalled.
Working with patients there transformed Tamar's understanding of addiction, she said, and showed her the potential for doctors to change lives.
"They can go from spending all their time pursuing the acquisition of a substance to being brothers, sisters, daughters [and] fathers making breakfast for their kids again," she said. "It's really powerful."
When Tamar finishes her residency, she plans to pursue a fellowship in addiction medicine. She sees addiction medicine, like primary care, as a way to build lasting relationships with patients — and a way to focus on more than a single diagnosis.
"I love when I see addiction patients on my schedule, even if they're pregnant and on meth," she said. "More room to do good — it's exciting."
Build A Program And They Will Come
Doctors with Tamar's enthusiasm are sorely needed, said Dr. Anna Lembke, medical director of Addiction Medicine at Stanford University School of Medicine and a longtime researcher in the field.
"Even 10 years ago," Lembke said, "I couldn't find a medical student or resident interested in learning about addiction medicine if I looked under a rock. They were just not out there."
But Lembke sees a change in the upcoming generation of doctors drawn to the field because they care about social justice.
"I now have medical students and residents knocking on my door, emailing me; they all want to learn more about addiction," Lembke said.
Historically, the path to addiction medicine was through psychiatry. That model started to change in 2015, when the American Board of Medical Specialties — considered the gold standard in physician certification in the U.S. — recognized addiction medicine as a bona fide subspecialty and opened up the training to physicians from other medical fields.
Until then, Lembke said, there had been no way to get addiction fellowships approved through the nationally recognized Accreditation Council for Graduate Medical Education. And that made recruiting young talent — and securing funding for their fellowships — difficult.
Last year, ACGME began accrediting its first batch of addiction medicine fellowship programs.
"We have got an enormous gap between the need and the doctors available to provide that treatment," Lembke said.
"At least the medical community has begun to wake up to consider not only their role in triggering this opioid epidemic, but also the ways they need to step up to solve the problem," she said.
Laying The Foundation
When Dr. Luke Peterson finished his residency in family medicine in Phoenix in 2016, there were no addiction medicine fellowships in Arizona.
So he moved to Seattle to complete a year-long fellowship at Swedish Cherry Hill Family Medicine Residency. There he learned, among other things, how to treat pregnant women who are in recovery from drug use.
"I really needed to do a fellowship if I was going to make an impact and be able to teach others to make the same impact," said Peterson, who went on to help found an addiction medicine fellowship program in Arizona. His program is based in Phoenix at the University of Arizona's medical school and its teaching hospital, run by Banner Health and the Phoenix VA.
Arizona's two addiction medicine fellowships received ACGME accreditation last year — a stamp of approval that made the programs desirable choices for up-and-coming physicians, Peterson said.
Not every doctor who plans to treat substance use disorder needs to do a fellowship, he said. In fact, his goal is to integrate addiction medicine into primary care settings.
But a specialist can serve as a referral center and resource hub for community doctors.
Public health leaders have been pushing to get more physicians trained in evidence-based treatment like buprenorphine, which has been shown to reduce the risk of deathamong people who have recovered from an opioid overdose.
"As we provide more education and more support to primary care physicians, they will feel more comfortable screening and treating for addiction," Peterson said.
Peterson's own journey into addiction medicine began during a rotation with a family doctor in rural Illinois.
"In moments that most doctors find uncomfortable — maybe a patient comes in to request pain medication and you're seeing the negative side effects — he did not shy away from that situation," Peterson said. "He addressed it head-on."
It was a formative experience for Peterson — one he wants other young doctors to have. And he recognizes the urgency.
"In 20 or 30 years from now," Peterson said, "those medical students are going to look back at my current generation of doctors, and we will be judged by how we responded to this epidemic," in the same way he and his peers now look back at how doctors handled the HIV epidemic.
One of the first steps in stopping the epidemic, he said, is making sure there are enough doctors on the ground who know how to respond.
Many of today's medical students, people like Michelle Peterson (no relation to Luke), say they feel the calling, too.
She's in her first year at the University of Arizona College of Medicine and became interested in addiction after working at an outpatient treatment center.
She said she's already learning about addiction in her classes, hearing from doctors in the field and seeing others classmates equally engaged.
"It's definitely not just me," she said. "There are quite a few people here really interested in addiction."
It's a trend she and her mentors hope will continue.
This story is part of a partnership that includes KJZZ, NPR and Kaiser Health News.
States are moving to control costs of employee health plans, and it's triggering alarm from hospitals. The strategy: Use Medicare reimbursement rates to recalibrate how they pay hospitals.
This article was first published on Thursday, March 21, 2019 in Kaiser Health News.
States. They're just as perplexed as the rest of us over the ever-rising cost of health care premiums.
Now some states are moving to control costs of state employee health plans. And it's triggering alarm from the hospital industry. The strategy: Use Medicare reimbursement rates to recalibrate how they pay hospitals. If the gamble pays off, more private-sector employers could start doing the same thing.
"Government workers will get it first, then everyone else will see the savings and demand it," said Glenn Melnick, a hospital finance expert and professor at the University of Southern California. "This is the camel's nose. It will just grow and grow."
In North Carolina, for instance, state Treasurer Dale Folwell next year plans to start paying hospitals Medicare rates plus 82 percent, a figure he said would provide for a modest profit margin while saving the state more than $258 million annually.
"State workers can't afford the family premium [and other costs]. That's what I'm trying to fix," he said. The estimated $60 million in savings to health plan members, he said, would mainly come from savings in out-of-pocket costs.
That approach differs from the traditional method of behind-the-scenes negotiating, in which employers or insurers ask for discounts off hospital-set charges that rise every year and generally are many times the actual cost of a service. Private-insurer payments, even with those discounts, can be double or triple what Medicare would pay.
This state-level activity could be a game changer, fueling a broad movement toward lower hospital payments. Montana's state employee program made the adjustment two years ago; Oregon will start this fall. Delaware's state employee program is also considering such "Medicare-based contracting" as one of several options to lower spending.
The bold move comes as other factors — notably marketplace competition among hospitals and high-deductible insurance plans aimed at getting consumers to "shop" for lower prices — have largely failed to slow rising health care premiums.
For hospitals, though, it can be viewed as "an existential threat," said USC's Melnick.
Indeed, the treasurer's plan in North Carolina has drawn heated opposition, with a hospital industry-associated group running television ads warning of dire consequences, especially for rural hospitals, some of which they say might be forced to close. When the plan first came out, the state's hospital association complained it would reduce statewide hospital revenue by an estimated $460 million.
Hospitals in areas with large concentrations of state workers "would be getting reimbursed less than the cost of care," said Cody Hand, the association's senior vice president and deputy general counsel. "Our biggest concern is this is not something that we were at the table for in discussion."
Rural hospitals are particularly at risk, Hand said, because many were already teetering on the brink financially and the payment change would be an additional problem.
After months of acrimony, the North Carolina treasurer in mid-March agreed to grant a 20 percent boost in payment to rural hospitals that would give those hospitals an additional $52 million a year. On average, rural hospitals would be paid 218 percent of the Medicare rate.
Nationwide, hospitals have long complained that Medicare underpays them, and some hospital and business groups have warned employers that tying payments from state workers' plans more closely to Medicare could result in higher charges to private-sector businesses.
"The result will be a cost shift of tens of millions of dollars to other Oregonians," wrote the Oregon Association of Hospitals and Health Systems as lawmakers there debated a plan (that eventually became law) paying hospitals 200 percent of Medicare rates.
But policy experts are skeptical.
"Even if Medicare pays a bit below cost, 177 percent of Medicare should be at least 50 percent above cost," said Mark Hall, director of the health law and policy program at Wake Forest University. "Is that a reasonable margin? I guess that's up for debate, but to most people 50 percent margin might sound reasonable."
Another concern some people have raised is that hospitals might refuse to join networks that employ these states' Medicare-based strategy.
Indeed, Montana officials worked hard to get all hospitals in the state to agree to accept for the state worker program an average of 234 percent of Medicare's reimbursement rates. A few hospitals held out, right up to the deadline, backing down only after pressure from employee unions.
The risk if hospitals opt to remain out-of-network is that workers could be "balance billed" for the difference between those Medicare-plus rates and their generally much higher charges, amounts that could be hundreds or even thousands of dollars.
To prevent that, Oregon lawmakers set the law's in-network reimbursement for hospitals at 200 percent of Medicare. But those that opt out would receive only 185 percent.
The measure also bars hospitals from billing state workers for the difference between those amounts and the higher rates they might like to charge.
"Oregon thought it through," said Gerard Anderson, a professor at Johns Hopkins who researches health care costs. "Hospitals need to go on a diet. The private sector has not put them on a diet, but maybe the state employee plans will."
And In The Private Sector …
For decades, health insurance costs for employers and workers have risen faster than inflation despite various efforts to rein them in.
Currently, a typical family plan offered by employers tops $19,000 a year in premiums, while the price tag for a single employee is close to $7,000.
To be sure, hospital costs make up just one part of what premiums cover, along with doctor costs, drug payments and other services. Spending on hospital care accounts for about one-third of the nation's $3.5 trillion health care tab.
"Health care is just becoming unaffordable," said Cheryl DeMars, president and CEO of The Alliance, a group of 240 private-sector, self-insured employers that directly contract with hospitals in Wisconsin, northern Illinois and eastern Iowa.
In January, The Alliance began what it calls "Medicare-plus" contracting. As new hospitals join and existing contracts come up for renewal, the group is negotiating rates, basing them on what Medicare pays, DeMars said.
And it will likely save money: Under its old method of paying, the group was forking out between 200 to 350 percent of Medicare for inpatient and outpatient hospital services in its network. Two new contracts have been signed so far, averaging 200 percent of Medicare across inpatient, outpatient and physician payments, according to The Alliance.
"We want to pay a fair price and we're in the process of determining what that should be," said Kyle Monroe, vice president of network development for The Alliance. "Is it 200 percent? Is it something less?"
Under traditional payment methods, the negotiated prices insurers for public- and private-sector employers pay for hospital care vary widely, by facility, treatment and insurer. But they're generally above Medicare rates by a substantial margin.
A group of self-insured employers recently commissioned Rand Corp. to study what private insurers pay hospitals in 22 states, compared with Medicare rates.
Initial results found private employers were paying, on average, 229 percent of Medicare rates to hospitals across the states in 2017, according to Chapin White, an adjunct senior policy researcher at Rand who conducted the study.
Economists like Melnick say they would prefer that market competition — consumers voting with their feet, so to speak — would drive business to the highest-quality, lowest-cost providers.
But, so far, hospitals have held the line against this scenario and that's not likely to change. "They're going to fight like crazy," Melnick said.
Delaying vaccines is risky. Many pediatricians say a more gradual approach to vaccinations is better than no vaccinations, but they offer hard advice to parents considering it.
When Elyse Imamura's son was an infant, she and her husband, Robert, chose to spread out his vaccinations at a more gradual pace than the official schedulerecommended.
"I was thinking, 'OK, we're going to do this,'" says Imamura, 39, of Torrance, Calif. "'But we're going to do it slower so your body gets acclimated and doesn't face six different things all of a sudden.'"
Seven years later, Imamura says her son, Amaru, is a "very healthy," active boy who loves to play sports.
But delaying vaccines is risky. Many pediatricians will tell you a more gradual approach to vaccinations is better than no vaccinations at all, but they offer some hard advice to parents who are considering it.
"Every day you are eligible to get a vaccine that you don't get one, the chance of an invasive disease remains," says Dr. Charles Golden, executive medical director of the Primary Care Network at Children's Hospital of Orange County.
Recent outbreaks of measles, mumps and whooping cough have once again reignited a war of words over vaccinations.
The squabble is often painted as two-sided: in one camp, the medical establishment, backed by science, strongly promoting the vaccination of children against 14 childhood diseases by age 2. In the other, a small but vocal minority — the so-calledanti-vaxxers— shunning the shots, believing the risks of vaccines outweigh the dangers of the diseases.
The notion that there are two opposing sides obscures a large middle ground occupied by up to one-quarter of parents, who believe in vaccinating their children but, like the Imamuras, choose to do so more gradually. They worry about the health impact of so many shots in so short a period, and in some cases they forgo certain vaccines entirely.
The concept gained a large following more than a decade ago, when Robert W. Sears, an Orange County, Calif., pediatrician, published "The Vaccine Book," in which he included two alternative schedules. Both delay vaccines, and one of them also allows parents to skip shots for measles, mumps and rubella (MMR), chickenpox, hepatitis A and polio.
Sears' book became the vaccination bible for thousands of parents, who visited their pediatricians with it in tow. But his ideas have been widely rejected by the medical establishment and he was punished by the Medical Board of California last year after it accused him of improperly exempting a 2-year-old from all future vaccinations. He declined to be interviewed for this column.
Imamura, who describes herself as "definitely not an anti-vaxxer," says she and her husband "followed Sears to a T." They limited the number of vaccines for their son to no more than two per appointment, compared with up to six in the official schedule. And they skipped the shot for chickenpox.
She concedes, however: "If there'd been outbreaks like now, it would have affected my thinking about delaying vaccines."
The ideas promoted by Sears and others have contributed to parents' worries that front-loading shots could overwhelm their babies' immune systems or expose them to toxic levels of chemicals such as mercury, aluminum and formaldehyde.
But scientific evidence does not support that. Infectious-disease doctors and public health officials say everyday life presents far greater challenges to children's immune systems.
"Touching another human being, crawling around the house, they are exposed to so many things all the time on a daily basis, so these vaccines don't add much to that," says Dr. Pia Pannaraj, a pediatric infectious-diseases specialist at Children's Hospital Los Angeles.
The same is true of some of the metals and chemicals contained in vaccines, which vaccination skeptics blame for autism despite numerous studies finding no link — the most recent published earlier this month.
In the first six months of life, babies get far more aluminum from breast milk and infant formula than from vaccines, public health experts say.
"When you look at babies that have received aluminum-containing vaccines, you can't even tell the level has gone up," says Paul Offit, professor of pediatrics at Children's Hospital of Philadelphia (CHOP) and director of the hospital's Vaccine Education Center. The same is true of formaldehyde and mercury, he adds.
(Offit co-invented Merck's RotaTeq vaccine for rotavirus, and CHOP sold the royalty rights to it for $182 million in 2008. CHOP declined to comment on what Offit's share was.)
Parents who are concerned about mercury, aluminum or other vaccine ingredients should avoid information shared on social media, which can be misleading. Instead, check out the Vaccine Education Center on CHOP's website at www.chop.edu by clicking on the "Departments" tab.
If your child has a condition you fear might be incompatible with vaccinations, discuss it with your pediatrician. The CDC gives veryspecific guidelines on who should not receive vaccines, including kids who have immune system deficiencies or are getting chemotherapy or taking certain medications.
If your children are not among them, vaccinate them. That will help prevent outbreaks, protecting those who, for medical reasons, have not received the shots.
When parents resist, Pannaraj says, she emphasizes that the potential harm from infections is far more severe than the risks of the vaccines. She notes, for example, that the risk of getting encephalitis from the measles is about 1,000 times greater than from the vaccine.
Still, side effects do occur. Most are mild, but severe cases — though rare — are not unheard of. To learn about the potential side effects of vaccines, look on the CDC website or discuss it with your pediatrician.
Emily Lawrence Mendoza, 35, says that after her second child, Elsie, got her first measles, mumps and rubella (MMR) shot at 12 months of age, she spiked a fever and developed a full body rash that looked like a mild version of the disease.
It took three visits to urgent care before a doctor acknowledged that Elsie, now almost 5, could have had a mild reaction to the vaccine. After that, Mendoza, of Orange, Calif., decided to adopt a more gradual vaccination schedule for her third child.
Yet Mendoza says Elsie's adverse reaction made her realize the importance of vaccinations: "What if she'd been exposed to a full-blown case of the measles?"
When Beverly Dunn called her new primary care doctor's office last November to schedule an annual checkup, she assumed her Medicare coverage would pick up most of the tab.
The appointment seemed like a routine physical, and she was pleased that the doctor spent a lot of time with her.
Until she got the bill: $400.
Dunn, 69, called the doctor's office assuming there was a billing error. But it was no mistake, she was told. Medicare does not cover an annual physical exam.
Dunn, of Austin, Texas, was tripped up by Medicare's confusing coverage rules. Federal law prohibits the healthcare program from paying for annual physicals, and patients who get them may be on the hook for the entire amount. But beneficiaries pay nothing for an "annual wellness visit," which the program covers in full as a preventive service.
"It's very important that someone, when they call to make an appointment, uses those magic words, 'annual wellness visit,'" said Leslie Fried, senior director of the Center for Benefits Access at the National Council on Aging. Otherwise, "people think they are making an appointment for an annual wellness visit and it ends up they are having a complete physical."
An annual physical typically involves an exam by a doctor along with bloodwork or other tests. The annual wellness visit generally doesn't include a physical exam, except to check routine measurements such as height, weight and blood pressure.
The focus of the Medicare wellness visit is on preventing disease and disability by coming up with a "personalized prevention plan" for future medical issues based on the beneficiary's health and risk factors.
At their first wellness visit, patients will often fill out a risk-assessment questionnaire and review their family and personal medical history with their doctor, a nurse practitioner or physician assistant. The clinician will typically create a schedule for the next decade of mammograms, colonoscopies and other screenings and evaluate people for cognitive problems and depression as well as their risk of falls and other safety issues.
At subsequent annual wellness visits, the doctor and patient will review these issues and check basic measurements. Beneficiaries can also receive other covered preventive services such as flu shots at those visits without charge.
When the Medicare program was established more than 50 years ago, its purpose was to cover the diagnosis and treatment of illness and injury in older people. Preventive services were generally not covered, and routine physical checkups were explicitly excluded, along with routine foot and dental care, eyeglasses and hearing aids.
Over the years, preventive services have gradually been added to the program, and the Affordable Care Act establishedcoverage of the annual wellness visit. Medicare beneficiaries pay nothing as long as their doctor accepts Medicare.
However, if a wellness visit veers beyond the bounds of the specific covered preventive services into diagnosis or treatment — whether at the urging of the doctor or the patient — Medicare beneficiaries will typically owe a copay or other charges. (This can be an issue when people in private plans get preventive care, too. And it can affect patients of all ages. The ACA requires insurers to provide coverage, without a copay, for a range of preventive services, including immunizations. But if a visit goes beyond prevention, the patient may encounter charges.)
And to add more confusion, Medicare beneficiaries can opt for a "Welcome to Medicare" preventive visit within the first year of joining Medicare Part B, which covers physician services.
Meanwhile, some Medicare Advantage plans cover annual physicals for their members free of charge.
Many patients want their doctor to evaluate or treat chronic conditions like diabetes or arthritis at the wellness visit, said Dr. Michael Munger, who chairs the board of the American Academy of Family Physicians. But Medicare generally won't cover lab work, such as cholesterol screening, unless it's tied to a specific medical condition.
At Munger's practice in Overland Park, Kan., staffers routinely ask patients who come in for a wellness visit to sign an "advance beneficiary notice of noncoverage" acknowledging that they understand Medicare may not pay for some of the services they receive.
As long as beneficiaries understand the coverage rules, it's not generally a problem, Munger said.
"They don't want to come back for a separate visit, so they just understand that there may be extra charges," he said.
Beneficiaries may not be the only ones who are unclear about what an annual wellness visit involves, said Munger. Providers may be put off if they think that it's just another task that adds to their paperwork.
The U.S. government claimed that turning American medical charts into electronic records would make healthcare better, safer, and cheaper. Ten years and $36 billion later, the system is an unholy mess.
This article was first published on March 18, 2019 in Kaiser Health News.
The pain radiated from the top of Annette Monachelli's head, and it got worse when she changed positions. It didn't feel like her usual migraine. The 47-year-old Vermont attorney turned innkeeper visited her local doctor at the Stowe Family Practice twice about the problem in late November 2012, but got little relief.
Two months later, Monachelli was dead of a brain aneurysm, a condition that, despite the symptoms and the appointments, had never been tested for or diagnosed until she turned up in the emergency room days before her death.
Monachelli's husband sued Stowe, the federally qualified health center the physician worked for. Owen Foster, a newly hired assistant U.S. attorney with the District of Vermont, was assigned to defend the government. Though it looked to be a standard medical malpractice case, Foster was on the cusp of discovering something much bigger — what his boss, U.S. Attorney Christina Nolan, calls the "frontier of healthcare fraud" — and prosecuting a first-of-its-kind case that landed the largest-ever financial recovery in Vermont's history.
Foster began with Monachelli's medical records, which offered a puzzle. Her doctor had considered the possibility of an aneurysm and, to rule it out, had ordered a head scan through the clinic's software system, the government alleged in court filings. The test, in theory, would have caught the bleeding in Monachelli's brain. But the order never made it to the lab; it had never been transmitted.
The software in question was an electronic health records system, or EHR, made by eClinicalWorks (eCW), one of the leading sellers of record-keeping software for physicians in America, currently used by 850,000 health professionals in the U.S. It didn't take long for Foster to assemble a dossier of troubling reports — Better Business Bureau complaints, issues flagged on an eCW user board, and legal cases filed around the country — suggesting the company's technology didn’t work quite the way it said it did.
Until this point, Foster, like most Americans, knew next to nothing about electronic medical records, but he was quickly amassing clues that eCW's software had major problems — some of which put patients, like Annette Monachelli, at risk.
Damning evidence came from a whistleblower claim filed in 2011 against the company. Brendan Delaney, a British cop turned EHR expert, was hired in 2010 by New York City to work on the eCW implementation at Rikers Island, a jail complex that then had more than 100,000 inmates. But soon after he was hired, Delaney noticed scores of troubling problems with the system, which became the basis for his lawsuit. The patient medication lists weren’t reliable; prescribed drugs would not show up, while discontinued drugs would appear as current, according to the complaint. The EHR would sometimes display one patient's medication profile accompanied by the physician's note for a different patient, making it easy to misdiagnose or prescribe a drug to the wrong individual. Prescriptions, some 30,000 of them in 2010, lacked proper start and stop dates, introducing the opportunity for under- or overmedication. The eCW system did not reliably track lab results, concluded Delaney, who tallied 1,884 tests for which they had never gotten outcomes.
The District of Vermont launched an official federal investigation in 2015.
The eCW spaghetti code was so buggy that when one glitch got fixed, another would develop, the government found. The user interface offered a few ways to order a lab test or diagnostic image, for example, but not all of them seemed to function. The software would detect and warn users of dangerous drug interactions, but unbeknownst to physicians, the alerts stopped if the drug order was customized. "It would be like if I was driving with the radio on and the windshield wipers going and when I hit the turn signal, the brakes suddenly didn’t work," said Foster.
The eCW system also failed to use the standard drug codes and, in some instances, lab and diagnosis codes as well, the government alleged.
The case never got to a jury. In May 2017, eCW paid a $155 million settlement to the government over alleged "false claims" and kickbacks — one physician made tens of thousands of dollars — to clients who promoted its product. Despite the record settlement, the company denied wrongdoing; eCW did not respond to numerous requests for comment.
If there is a kicker to this tale, it is this: The U.S. government bankrolled the adoption of this software — and continues to pay for it. Or we should say: You do.
Which brings us to the strange, sad, and aggravating story that unfolds below. It is not about one lawsuit or a piece of sloppy technology. Rather, it's about a trouble-prone industry that intersects, in the most personal way, with every one of our lives. It's about a $3.7 trillion healthcare system idling at the crossroads of progress. And it’s about a slew of unintended consequences — the surprising casualties of a big idea whose time had seemingly come.
The Virtual Magic Bullet
Electronic health records were supposed to do a lot: make medicine safer, bring higher-quality care, empower patients, and yes, even save money. Boosters heralded an age when researchers could harness the big data within to reveal the most effective treatments for disease and sharply reduce medical errors. Patients, in turn, would have truly portable health records, being able to share their medical histories in a flash with doctors and hospitals anywhere in the country — essential when life-and-death decisions are being made in the ER.
But 10 years after President Barack Obama signed a law to accelerate the digitization of medical records — with the federal government, so far, sinking $36 billion into the effort — America has little to show for its investment. KHN and Fortune spoke with more than 100 physicians, patients, IT experts and administrators, health policy leaders, attorneys, top government officials and representatives at more than a half-dozen EHR vendors, including the CEOs of two of the companies. The interviews reveal a tragic missed opportunity: Rather than an electronic ecosystem of information, the nation's thousands of EHRs largely remain a sprawling, disconnected patchwork. Moreover, the effort has handcuffed health providers to technology they mostly can't stand and has enriched and empowered the $13-billion-a-year industry that sells it.
By one measure, certainly, the effort has achieved what it set out to do: Today, 96% of hospitals have adopted EHRs, up from just 9% in 2008. But on most other counts, the newly installed technology has fallen well short. Physicians complain about clumsy, unintuitive systems and the number of hours spent clicking, typing and trying to navigate them — which is more than the hours they spend with patients. Unlike, say, with the global network of ATMs, the proprietary EHR systems made by more than 700 vendors routinely don't talk to one another, meaning that doctors still resort to transferring medical data via fax and CD-ROM. Patients, meanwhile, still struggle to access their own records — and, sometimes, just plain can't.
Instead of reducing costs, many say, EHRs, which were originally optimized for billing rather than for patient care, have instead made it easier to engage in "upcoding" or bill inflation (though some say the systems also make such fraud easier to catch).
More gravely still, a months-long joint investigation by KHN and Fortune has found that instead of streamlining medicine, the government's EHR initiative has created a host of largely unacknowledged patient safety risks. Our investigation found that alarming reports of patient deaths, serious injuries and near misses — thousands of them — tied to software glitches, user errors or other flaws have piled up, largely unseen, in various government-funded and private repositories.
"Providers developed their own systems that may or may not even have worked well for them ... but we didn't think about how all these systems connect with one another. That was the real missing piece."
—CMS Administrator Seema Verma
Compounding the problem are entrenched secrecy policies that continue to keep software failures out of public view. EHR vendors often impose contractual "gag clauses" that discourage buyers from speaking out about safety issues and disastrous software installations — though some customers have taken to the courts to air their grievances. Plaintiffs, moreover, say hospitals often fight to withhold records from injured patients or their families. Indeed, two doctors who spoke candidly about the problems they faced with EHRs later asked that their names not be used, adding that they were forbidden by their healthcare organizations to talk. Says Assistant U.S. Attorney Foster, the EHR vendors "are protected by a shield of silence."
Though the software has reduced some types of clinical mistakes common in the era of handwritten notes, Raj Ratwani, a researcher at MedStar Health in Washington, D.C., has documented new patterns of medical errors tied to EHRs that he believes are both perilous and preventable. "The fact that we're not able to broadcast that nationally and solve these issues immediately, and that another patient somewhere else may be harmed by the very same issue — that just can't happen," he said.
David Blumenthal, who, as Obama’s national coordinator for health information technology, was one of the architects of the EHR initiative, acknowledged to KHN and Fortune that electronic health records "have not fulfilled their potential. I think few would argue they have."
The former president has likewise singled out the effort as one of his most disappointing, bemoaning in a January 2017 interview with Vox "the fact that there are still just mountains of paperwork … and the doctors still have to input stuff, and the nurses are spending all their time on all this administrative work. We put a big slug of money into trying to encourage everyone to digitalize, to catch up with the rest of the world … that's been harder than we expected."
Seema Verma, the current chief of the Centers for Medicare & Medicaid Services, which oversees the EHR effort today, shudders at the billions of dollars spent building software that doesn't share data — an electronic bridge to nowhere. "Providers developed their own systems that may or may not even have worked well for them," she told KHN and Fortune in an interview last month, "but we didn't think about how all these systems connect with one another. That was the real missing piece."
Perhaps none of the initiative's former boosters is quite as frustrated as former Vice President Joe Biden. At a 2017 meeting with healthcare leaders in Washington, he railed against the infuriating challenge of getting his son Beau's medical records from one hospital to another. "I was stunned when my son for a year was battling stage 4 glioblastoma," said Biden. "I couldn't get his records. I'm the vice president of the United States of America. … It was an absolute nightmare. It was ridiculous, absolutely ridiculous, that we’re in that circumstance."
A Bridge To Nowhere
As Biden would tell you, the original concept was a smart one. The wave of digitization had swept up virtually every industry, bringing both disruption and, in most cases, greater efficiency. And perhaps none of these industries was more deserving of digital liberation than medicine, where life-measuring and potentially lifesaving data was locked away in paper crypts — stack upon stack of file folders at doctors' offices across the country.
Stowed in steel cabinets, the records were next to useless. Nobody — particularly at the dawn of the age of the iPhone — thought it was a good idea to leave them that way. The problem, say critics, was in the way that policymakers set about to transform them.
"Every single idea was well-meaning and potentially of societal benefit, but the combined burden of all of them hitting clinicians simultaneously made office practice basically impossible," said John Halamka, chief information officer at Beth Israel Deaconess Medical Center, who served on the EHR standards committees under both George W. Bush and Barack Obama. "In America, we have 11 minutes to see a patient, and, you know, you're going to be empathetic, make eye contact, enter about 100 pieces of data, and never commit malpractice. It's not possible!"
KHN and Fortune examined more than two dozen medical negligence cases that have alleged that EHRs either contributed to injuries, had been improperly altered, or were withheld from patients to conceal substandard care. In such cases, the suits typically settle prior to trial with strict confidentiality pledges, so it's often not possible to determine the merits of the allegations. EHR vendors also frequently have contract stipulations, known as "hold harmless clauses," that protect them from liability if hospitals are later sued for medical errors — even if they relate to an issue with the technology.
But lawsuits, like that filed by Fabian Ronisky, which do emerge from this veil, are quite telling.
Ronisky, according to his complaint, arrived by ambulance at Providence Saint John's Health Center in Santa Monica on the afternoon of March 2, 2015. For two days, the young lawyer had been suffering from severe headaches while a disorienting fever left him struggling to tell the 911 operator his address.
Suspecting meningitis, a doctor at the hospital performed a spinal tap, and the next day an infectious disease specialist typed in an order for a critical lab test — a check of the spinal fluid for viruses, including herpes simplex — into the hospital's EHR.
The multimillion-dollar system, manufactured by Epic Systems Corp. and considered by some to be the Cadillac of medical software, had been installed at the hospital about four months earlier. Although the order appeared on Epic's screen, it was not sent to the lab. It turned out, Epic's software didn’t fully "interface" with the lab's software, according to a lawsuit Ronisky filed in February 2017 in Los Angeles County Superior Court. His results and diagnosis were delayed — by days, he claimed — during which time he suffered irreversible brain damage from herpes encephalitis. The suit alleged the mishap delayed doctors from giving Ronisky a drug called acyclovir that might have minimized damage to his brain.
Epic denied any liability or defects in its software; the company said the doctor failed to push the right button to send the order and that the hospital, not Epic, had configured the interface with the lab. Epic, among the nation's largest manufacturers of computerized health records and the leading provider to most of America's most elite medical centers, quietly paid $1 million to settle the suitin July 2018, according to court records. The hospital and two doctors paid a total of $7.5 million, and a case against a third doctor is pending trial. Ronisky, 34, who is fighting to rebuild his life, declined to comment.
Incidents like that which happened to Ronisky — or to Annette Monachelli, for that matter — are surprisingly common, data show. And the back-and-forth about where the fault lies in such cases is actually part of the problem: The systems are often so confusing (and training on them seldom sufficient) that errors frequently fall into a nether zone of responsibility. It can be hard to tell where human error begins and the technological shortcomings end.
"In America, we have 11 minutes to see a patient, and, you know, you're going to be empathetic, make eye contact, enter about 100 pieces of data, and never commit malpractice. It's not possible!"
—John Halamka, chief information officer at Beth Israel Deaconess Medical Center
EHRs promised to put all of a patient's records in one place, but often that's the problem. Critical or time-sensitive information routinely gets buried in an endless scroll of data, where in the rush of medical decision-making — and amid the maze of pulldown menus — it can be missed.
Thirteen-year-old Brooke Dilliplaine, who was severely allergic to dairy, was given a probiotic containing milk. The two doses sent her into "complete respiratory distress" and resulted in a collapsed lung, according to a lawsuit filed by her mother. Rory Staunton, 12, scraped his arm in gym class and then died of sepsis after ER doctors discharged the boy on the basis of lab results in the EHR that weren't complete. And then there's the case of Thomas Eric Duncan. The 42-year-old man was sent home in 2014 from a Dallas hospital infected with Ebola virus. Though a nurse had entered in the EHR his recent travel to Liberia, where an Ebola epidemic was then in full swing, the doctor never saw it. Duncan died a week later.
Many such cases end up in court. Typically, doctors and nurses blame faulty technology in the medical-records systems. The EHR vendors blame human error. And meanwhile, the cases mount.
Quantros, a private healthcare analytics firm, said it has logged 18,000 EHR-related safety events from 2007 through 2018, 3% of which resulted in patient harm, including seven deaths — a figure that a Quantros director said is "drastically underreported."
A 2016 study by The Leapfrog Group, a patient-safety watchdog based in Washington, D.C., found that the medication-ordering function of hospital EHRs — a feature required by the government for certification but often configured differently in each system — failed to flag potentially harmful drug orders in 39% of cases in a test simulation. In 13% of those cases, the mistake could have been fatal.
The Pew Charitable Trusts has, for the past few years, run an EHR safety project, taking aim at issues like usability and patient matching — the process of linking the correct medical record to the correct patient — a seemingly basic task at which the systems, even when made by the same EHR vendor, often fail. At some institutions, according to Pew, such matching was accurate only 50% of the time. Patients have discovered mistakes as well: A January survey by the Kaiser Family Foundation found that 1 in 5 patients spotted an error in their electronic medical records. (Kaiser Health News is an editorially independent program of the foundation.)
The Joint Commission, which certifies hospitals, has sounded alarms about a number of issues, including false alarms — which account for between 85% and 99% of EHR and medical device alerts. (One study by researchers at Oregon Health & Science University estimated that the average clinician working in the intensive care unit may be exposed to up to 7,000 passive alerts per day.) Such over-warning can be dangerous. From 2014 to 2018, the commission tallied 170 mostly voluntary reports of patient harm related to alarm management and alert fatigue — the phenomenon in which health workers, so overloaded with unnecessary warnings, ignore the occasional meaningful one. Of those 170 incidents, 101 resulted in patient deaths.
The Pennsylvania Patient Safety Authority, an independent state agency that collects information about adverse events and incidents, counted 775 "laboratory-test problems" related to health IT from January 2016 to December 2017.
To be sure, medical errors happened en masse in the age of paper medicine, when hospital staffers misinterpreted a physician's scrawl or read the wrong chart to deadly consequence, for instance. But what is perhaps telling is how many doctors today opt for manual workarounds to their EHRs. Aaron Zachary Hettinger, an emergency medicine physician with MedStar Health in Washington, D.C., said that when he and fellow clinicians need to share critical patient information, they write it on a whiteboard or on a paper towel and leave it on their colleagues' computer keyboards.
While the Food and Drug Administration doesn’t mandate reporting of EHR safety events — as it does for regulated medical devices — concerned posts have nonetheless proliferated in theFDA MAUDE database of adverse events, which now serves as an ad hoc bulletin board of warnings about the various systems.
Further complicating the picture is that health providers nearly always tailor their one-size-fits-all EHR systems to their own specifications. Such customization makes every one unique and often hard to compare with others — which, in turn, makes the source of mistakes difficult to determine.
Dr. Martin Makary, a surgical oncologist at Johns Hopkins and the co-author of a much-cited 2016 study that identified medical errors as the third-leading cause of death in America, credits EHRs for some safety improvements — including recent changes that have helped put electronic brakes on the opioid epidemic. But, he said, "we've swapped one set of problems for another. We used to struggle with handwriting and missing information. We now struggle with a lack of visual cues to know we're writing and ordering on the correct patient."
Dr. Joseph Schneider, a pediatrician at UT Southwestern Medical Center, compares the transition we’ve made, from paper records to electronic ones, to moving from horses to automobiles. But in this analogy, he added, "our cars have advanced to about the 1960s. They still don't have seat belts or air bags."
Schneider recalled one episode when his colleagues couldn’t understand why chunks of their notes would inexplicably disappear. They figured out the problem weeks later after intense study: Physicians had been inputting squiggly brackets — {} — the use of which, unbeknownst to even vendor representatives, deleted the text between them. (The EHR maker initially blamed the doctors, said Schneider.)
A broad coalition of actors, from National Nurses United to the Texas Medical Association to leaders within the FDA, has long called for oversight on electronic-record safety issues. Among the most outspoken is Ratwani, who directs MedStar Health's National Center on Human Factors in Healthcare, a 30-person institute focused on optimizing the safety and usability of medical technology. Ratwani spent his early career in the defense industry, studying things like the intuitiveness of information displays. When he got to MedStar in 2012, he was stunned by "the types of [digital] interfaces being used" in healthcare, he said.
In a study published last year in the journal Health Affairs, Ratwani and colleagues studied medication errors at three pediatric hospitals from 2012 to 2017. They discovered that 3,243 of them were owing in part to EHR "usability issues." Roughly 1 in 5 of these could have resulted in patient harm, the researchers found. "Poor interface design and poor implementations can lead to errors and sometimes death, and that is just unbelievably bad as well as completely fixable," he said. "We should not have patients harmed this way."
Using eye-tracking technology, Ratwani has demonstrated on video just how easy it is to make mistakes when performing basic tasks on the nation's two leading EHR systems. When emergency room doctors went to order Tylenol, for example, they saw a drop-down menu listing 86 options, many of which were irrelevant for the specified patient. They had to read the list carefully, so as not to click the wrong dosage or form — though many do that too: In roughly 1 out of 1,000 orders, physicians accidentally select the suppository (designated “PR”) rather than the tablet dose (“OR”), according to one estimate. That's not an error that will harm a patient — though other medication mix-ups can and do.
Earlier this year, MedStar’s human-factors center launched a website and public awareness campaign with the American Medical Association to draw attention to such rampant mistakes — they use the letters "EHR" as an initialism for "Errors Happen Regularly" — and to petition Congress for action. Ratwani is pushing for a central database to track such errors and adverse events.
Others have turned to social media to vent. Dr. Mark Friedberg, a health-policy researcher with the Rand Corp. who is also a practicing primary care physician, champions the Twitter hashtag #EHRbuglist to encourage fellow healthcare workers to air their pain points. And last month, a scathing Epic parody account cropped up on Twitter, earning more than 8,000 followers in its first five days. Its maiden tweet, written in the mock voice of an Epic overlord, read: "I once saw a doctor make eye contact with a patient. This horror must stop."
As much as EHR systems are blamed for sins of commission, it is often the sins of omission that trip up users even more.
Consider the case of Lynne Chauvin, who worked as a medical assistant at Ochsner Health System, in Louisiana. In a still-pending 2015 lawsuit, Chauvin alleges that Epic's software failed to fire a critical medication warning; Chauvin suffered from conditions that heightened her risk for blood clots, and though that history was documented in her records, she was treated with drugs that restricted blood flow after a heart procedure at the hospital. She developed gangrene, which led to the amputation of her lower legs and forearm. (Ochsner Health System said that while it cannot comment on ongoing litigation, it "remains committed to patient safety which we strongly believe is optimized through the use of electronic health record technology." Epic declined to comment.)
Echoing the complaints of many doctors, the suit argues that Epic software "is extremely complicated to view and understand," owing to "significant repetition of data." Chauvin said that her medical bills have topped $1 million and that she is permanently disabled. Her husband, Richard, has become her primary caregiver and had to retire early from his job with the city of Kenner to care for his wife, according to the suit. Each party declined to comment.
An Epidemic Of Burnout
The numbing repetition, the box-ticking and the endless searching on pulldown menus are all part of what Ratwani called the "cognitive burden" that's wearing out today's physicians and driving increasing numbers into early retirement.
In recent years, "physician burnout" has skyrocketed to the top of the agenda in medicine. A 2018 Merritt Hawkins survey found a staggering 78% of doctors suffered symptoms of burnout, and in January the Harvard School of Public Health and other institutions deemed it a "public health crisis."
One of the co-authors of the Harvard study, Ashish Jha, pinned much of the blame on "the growth in poorly designed digital health records … that [have] required that physicians spend more and more time on tasks that don’t directly benefit patients."
Few would deny that the swift digitization of America's medical system has been transformative. With EHRs now nearly universal, the face and feel of medicine has changed. The doctor is now typing away, making more eye contact with the computer screen, perhaps, than with the patient. Patients don’t like that dynamic; for doctors, whose days increasingly begin and end with such fleeting encounters, the effect can be downright deadening.
"You're sitting in front of a patient, and there are so many things you have to do, and you only have so much time to do it in — seven to 11 minutes, probably — so when do you really listen?" asked John-Henry Pfifferling, a medical anthropologist who counsels physicians suffering from burnout. "If you go into medicine because you care about interacting, and then you're just a tool, it's dehumanizing," said Pfifferling, who has seen many physicians leave medicine over the shift to electronic records. "It's a disaster," he said.
Beyond complicating the physician-patient relationship, EHRs have in some ways made practicing medicine harder, said Dr. Hal Baker, a physician and the chief information officer at WellSpan, a Pennsylvania hospital system. "Physicians have to cognitively switch between focusing on the record and focusing on the patient," he said. He points out how unusual — and potentially dangerous — this is: "Texting while you're driving is not a good idea. And I have yet to see the CEO who, while running a board meeting, takes minutes, and certainly I've never heard of a judge who, during the trial, would also be the court stenographer. But in medicine … we’ve asked the physician to move from writing in pen to [entering a computer] record, and it’s a pretty complicated interface."
Even if docs may be at the keyboard during visits, they report having to spend hours more outside that time — at lunch, late at night — in order to finish notes and keep up with electronic paperwork (sending referrals, corresponding with patients, resolving coding issues). That's right. EHRs didn't take away paperwork; the systems just moved it online. And there's a lot of it: 44% of the roughly six hours a physician spends on the EHR each day is focused on clerical and administrative tasks, like billing and coding, according to a 2017 Annals of Family Medicine study.
For all that so-called pajama time — the average physician logs 1.4 hours per day on the EHR after work — they don't get a cent.
Many doctors do recognize the value in the technology: 60% of participants in Stanford Medicine's 2018 National Physician Poll said EHRs had led to improved patient care. At the same time, about as many (59%) said EHRs needed a "complete overhaul" and that the systems had detracted from their professional satisfaction (54%) as well as from their clinical effectiveness (49%).
In preliminary studies, Ratwani has found that doctors have a typical physiological reaction to using an EHR: stress. When he and his team shadow clinicians on the job, they use a range of sensors to monitor the doctors’ heart rate and other vital signs over the course of their shift. The physicians' heart rates will spike — as high as 160 beats per minute — on two sorts of occasions: when they are interacting with patients and when they’re using the EHR.
"Everything is so cumbersome," said Dr. Karla Dick, a family medicine physician in Arlington, Texas. "It's slow compared to a paper chart. You're having to click and zoom in and zoom out to look for stuff." With all the zooming in and out, she explained, it's easy to end up in the wrong record. "I can't tell you how many times I've had to cancel an order because I was in the wrong chart."
Among the daily frustrations for one emergency room physician in Rhode Island is ordering ibuprofen, a seemingly simple task that now requires many rounds of mouse clicking. Every time she prescribes the basic painkiller for a female patient, whether that patient is 9 or 68 years old, the prescription is blocked by a pop-up alert warning her that it may be dangerous to give the drug to a pregnant woman. The physician, whose institution does not allow her to comment on the systems, must then override the warning with yet more clicks. "That’s just the tiniest tip of the iceberg," she said.
What worries the doctor most is the ease with which diligent, well-meaning physicians can make serious medical errors. She noted that the average ER doc will make 4,000 mouse clicks over the course of a shift, and that the odds of doing anything 4,000 times without an error is small. "The interfaces are just so confusing and clunky," she added. "They invite error … it's not a negligence issue. This is a poor tool issue."
Many of the EHR makers acknowledge physician burnout is real and say they're doing what they can to lessen the burden and enhance user experience. Dr. Sam Butler, a pulmonary critical care specialist who started working at Epic in 2001, leads those efforts at the Wisconsin-based company. When doctors get more than 100 messages per week in their in-basket (akin to an email inbox), there's a higher likelihood of burnout. Butler's team has also analyzed doctors' electronic notes — they're twice as long as they were nine years ago, and three to four times as long as notes in the rest of the world. He said Epic uses such insights to improve the client experience. But coming up with fixes is difficult because doctors "have different viewpoints on everything," he said. (KHN and Fortune made multiple requests to interview Epic CEO Judy Faulkner, but the company declined to make her available. In a trade interview in February, however, Faulkner said that EHRs were unfairly blamed for physician burnout and cited a study suggesting that there's little correlation between burnout and EHR satisfaction. Executives at other vendors noted that they're aware of usability issues and that they're working on addressing them.)
The average ER doctor will make 4,000 mouse clicks over the course of a shift; the odds of doing that without an error are slim.
—an emergency physician who's not permitted to comment on the EHR systems
"It's not that we’re a bunch of Luddites who don’t know how to use technology," said the Rhode Island ER doctor. "I have an iPhone and a computer and they work the way they're supposed to work, and then we're given these incredibly cumbersome and error-prone tools. This is something the government mandated. There really wasn't the time to let the cream rise to the top; everyone had to jump in and pick something that worked and spend tens of millions of dollars on a system that is slowly killing us."
$36 Billion And Change
The effort to digitize America’s health records got its biggest push in a very low moment: the financial crisis of 2008. In early December of that year, Obama, barely four weeks after his election, pitched an ambitious economic recovery plan. "We will make sure that every doctor's office and hospital in this country is using cutting-edge technology and electronic medical records so that we can cut red tape, prevent medical mistakes and help save billions of dollars each year," he said in a radio address.
The idea had already been a fashionable one in Washington. Former House Speaker Newt Gingrich was fond of saying it was easier to track a FedEx package than one's medical records. Obama’s predecessor, President George W. Bush, had also pursued the idea of wiring up the country's health system. He didn’t commit much money, but Bush did create an agency to do the job: the Office of the National Coordinator.
In the depths of recession, the EHR conceit looked like a shovel-ready project that only the paper lobby could hate. In February 2009, legislators passed the HITECH Act, which carved out a hefty chunk of the massive stimulus package for health information technology. The goal was not just to get hospitals and doctors to buy EHRs, but rather to get them using them in a way that would drive better care. So lawmakers devised a carrot-and-stick approach: Physicians would qualify for federal subsidies (a sum of up to nearly $64,000 over a period of years) only if they were "meaningful users" of a government-certified system. Vendors, for their part, had to develop systems that met the government’s requirements.
They didn’t have much time, though. The need to stimulate the economy, which meant getting providers to adopt EHRs quickly, "presented a tremendous conundrum," said Farzad Mostashari, who joined the ONC as deputy director in 2009 and became its leader in 2011: The ideal — creating a useful, interoperable, nationwide records system — was "utterly infeasible to get to in a short time frame."
That didn't stop the federal planners from pursuing their grand ambitions. Everyone had big ideas for the EHRs. The FDA wanted the systems to track unique device identifiers for medical implants, the Centers for Disease Control and Prevention wanted them to support disease surveillance, CMS wanted them to include quality metrics and so on. "We had all the right ideas that were discussed and hashed out by the committee," said Mostashari, "but they were all of the right ideas."
Not everyone agreed, though, that they were the right ideas. Before long, "meaningful use" became pejorative shorthand to many for a burdensome government program — making doctors do things like check a box indicating a patient's smoking status each and every visit.
The EHR vendor community, then a scrappy $2 billion industry, griped at the litany of requirements but stood to gain so much from the government's $36 billion injection that it jumped in line. As Rusty Frantz, CEO of EHR vendor NextGen Healthcare, put it: "The industry was like, 'I've got this check dangling in front of me, and I have to check these boxes to get there, and so I’m going to do that.'"
Halamka, who was an enthusiastic backer of the initiative in both the Bush and Obama administrations, blames the pressure for a speedy launch as much as the excessive wish list. "To go from a regulation to a highly usable product that is in the hands of doctors in 18 months, that’s too fast," he said. "It's like asking nine women to have a baby in a month."
Several of those who worked on the project admit the rollout was not as easy or seamless as they'd anticipated, but they contend that was never the point. Aneesh Chopra, appointed by Obama in 2009 as the nation's first chief technology officer, called the spending a "down payment" on a vision to fundamentally change American medicine — creating a digital infrastructure to support new ways to pay for health services based on their quality and outcomes.
Dr. Bob Kocher, a physician and star investor with venture capital firm Venrock, who served in the Obama administration from 2009 to 2011 as a health and economic policy adviser, not only defends the rollout then but also disputes the notion that the government initiative has been a failure at all. "EHRs have totally lived up to the hype and expectations," he said, emphasizing that they also serve as a technology foundation to support innovation on everything from patients accessing their medical records on a smartphone to AI-driven medical sleuthing. Others note the systems' value in aggregating medical data in ways that were never possible with paper — helping, for example, to figure out that contaminated water was poisoning children in Flint, Mich.
But Rusty Frantz heard a far different message about EHRs — and, more important, it was coming from his own customers.
The Stanford-trained engineer, who in 2015 became CEO of NextGen, a $500-million-a-year EHR heavyweight in the physician-office market, learned the hard way about how his product was being viewed. As he stood at the podium at his first meeting with thousands of NextGen customers at Las Vegas' Mandalay Bay Resort, just four months after getting the job, he told KHN and Fortune, "People were lining up at the microphones to yell at us: 'We weren't delivering stable software! The executive team was inaccessible! The service experience was terrible!'" (He now refers to the event as "Festivus: the airing of the grievances.")
Frantz had bounced around the healthcare industry for much of his career, and from the nearby perch of a medical device company, he watched the EHR incentive bonanza with a mix of envy and slack-jawed awe. "The industry was moving along in a natural Darwinist way, and then along came the stimulus," said Frantz, who blames the government's ham-handed approach to regulation. "The software got slammed in, and the software wasn't implemented in a way that supported care," he said. "It was installed in a way that supported stimulus. This company, we were complicit in it, too."
Even that may be a generous description. KHN and Fortune found a trail of lawsuits against the company, stretching from White Sulphur Springs, Mont., to Neillsville, Wis. Mary Rutan Hospital in Bellefontaine, Ohio, sued NextGen (formerly called Quality Systems) in federal court in 2013, arguing that it experienced hundreds of problems with the "materially defective" software the company had installed in 2011.
A consultant hired by the hospital to evaluate the NextGen system, whose 60-page reportwas submitted to the court, identified "many functional defects" that he said rendered the software "unfit for its intended purpose." Some patient information was not accurately recorded, which had the potential, the consultant wrote, "to create major patient care risk which could lead to, at a minimum, inconvenience, and at worst, malpractice or even death."
Glitches at Mary Rutan included incidents in which the software would apparently change a patient's gender at random or lose a doctor's observations after an exam, the consultant reported. The company, he found, sometimes took months to address issues: One IT ticket, which related to a physician's notes inexplicably deleting themselves, reportedly took 10 months to resolve. (The consultant also noted that similar problems appeared to be occurring at as many as a dozen other hospitals that had installed NextGen software.)
The Ohio hospital, which paid more than $1.5 million for its EHR system, claimed breach of contract. NextGen responded that it disputed the claims made in the lawsuit and that the matter was resolved in 2015 "with no findings of fact by a court related to the allegations." The hospital declined to comment.
At the time, as it has been since then, NextGen's software was certified by the government as meeting the requirements of the stimulus program. By 2016, NextGen had more than 19,000 customers who had received federal subsidies.
NextGen was subpoenaed by the Department of Justice in December 2017, months after becoming the subject of a federal investigation led by the District of Vermont. Frantz tells KHN and Fortune that NextGen is cooperating with the investigation. "This company was not dishonest, but it was not effective four years ago," he said. Frantz also emphasized that NextGen has "rapidly evolved" during his tenure, earning five industry awards since 2017, and that customers have "responded very positively."
Glen Tullman, who until 2012 led Allscripts, another leading EHR vendor that benefited royally from the stimulus and that has been sued by numerous unhappy customers, admitted that the industry's race to market took priority over all else.
"It was a big distraction. That was an unintended consequence of that," Tullman said. "All the companies were saying, This is a one-time opportunity to expand our share, focus everything there, and then we'll go back and fix it." The Justice Department has opened a civil investigation into the company, Securities and Exchange Commission filings show. Allscripts said in an email that it cannot comment on an ongoing investigation, but that the civil investigations by the Department of Justice relate to businesses it acquired after the investigations were opened.
Much of the marketing mayhem occurred because federal officials imposed few controls over firms scrambling to cash in on the stimulus. It was a gold rush — and any system, it seemed, could be marketed as "federally approved." Doctors could shop for bargain-price software packages at Costco and Walmart's Sam's Club — where eClinicalWorks sold a "turnkey" system for $11,925 — and cash in on the government's adoption incentives.
The top-shelf vendors in 2009 crisscrossed the country on a "stimulus tour" like rock groups, gigging at some 30 cities, where they offered doctors who showed up to hear the pitch "a customized analysis" of how much money they could earn off the government incentives. Following the same playbook used by pharmaceutical companies, EHR sellers courted doctors at fancy dinners in ritzy hotels. One enterprising software firm advertised a "cash for clunkers" deal that paid $3,000 to doctors willing to trade in their current records system for a new one. Athenahealth held "invitation only" dinners at luxury hotels to advise doctors, among other things, how to use the stimulus to get paid more and capture available incentives. Allscripts offered a no-money-down purchase plan to help doctors "maximize the return on your EHR investment." (An Athenahealth spokesperson said the company’s "dinners were educational in nature and aimed at helping physicians navigate the government program." Allscripts did not respond directly to questions about its marketing practices, but said it "is proud of the software and services [it provides] to hundreds of thousands of caregivers across the globe.")
EHRs were supposed to reduce healthcare costs, at least in part by preventing duplicative tests. But as the federal government opened the stimulus tap, many raised doubts about the promised savings. Advocates bandied about a figure of $80 billion in cost savings even as congressional auditors were debunking it. While the jury's still out, there's growing suspicion the digital revolution may potentially raise healthcare costs by encouraging overbilling and new strains of fraud and abuse.
In September 2012, following press reports suggesting that some doctors and hospitals were using the new technology to improperly boost their fees, a practice known as "upcoding," then-Health and Human Services chief Kathleen Sebelius and Attorney General Eric Holder warned the industry not to try to "game the system."
There's also growing evidence that some doctors and health systems may have overstated their use of the new technology to secure stimulus funds, a potentially enormous fraud against Medicare and Medicaid that likely will take many years to unravel. In June 2017, the HHS inspector general estimated that Medicare officials made more than $729 million in subsidy payments to hospitals and doctors that didn't deserve them.
Individual states, which administer the Medicaid portion of the program, haven’t fared much better. Audits have uncovered overpayments in 14 of 17 state programs reviewed, totaling more than $66 million, according to inspector general reports.
Last month, Sen. Chuck Grassley, an Iowa Republican who chairs the Senate Finance Committee, sharply criticized CMS for recovering only a tiny fraction of these bogus payments, or what he termed a "spit in the ocean."
EHR vendors have also been accused of egregious and patient-endangering acts of fraud as they raced to cash in on the stimulus money grab. In addition to the U.S. government's $155 million False Claims Act settlement with eClinicalWorks noted above, the federal government has reached a second settlement over similar charges against another large vendor, Tampa-based Greenway Health. In February, that company settled with the government for just over $57 million without denying or admitting wrongdoing. "These are cases of corporate greed, companies that prioritized profits over everything else," said Christina Nolan, the U.S. attorney for the District of Vermont, whose office led the cases. (In a response, Greenway Health did not address the charges or the settlement but said it was "committing itself to being the standard-bearer for quality, compliance, and transparency.")
Tower Of Babel
In early 2017, Seema Verma, then the country's newly appointed CMS administrator, went on a listening tour. She visited doctors around the country, at big urban practices and tiny rural clinics, and from those front-line physicians she consistently heard one thing: They hated their electronic health records. "Physician burnout is real," she told KHN and Fortune. The doctors spoke of the difficulty in getting information from other systems and providers, and they complained about the government's reporting requirements, which they perceived as burdensome and not meaningful.
What she heard then became suddenly personal one summer day in 2017, when her husband, himself a physician, collapsed in the airport on his way home to Indianapolis after a family vacation. For a frantic few hours, the CMS administrator fielded phone calls from first responders and physicians — Did she know his medical history? Did she have information that could save his life? — and made calls to his doctors in Indiana, scrambling to piece together his record, which should have been there in one piece. Her husband survived the episode, but it laid bare the dysfunction and danger inherent in the existing health information ecosystem.
The notion that one EHR should talk to another was a key part of the original vision for the HITECH Act, with the government calling for systems to be eventually interoperable.
What the framers of that vision didn't count on were the business incentives working against it. A free exchange of information means that patients can be treated anywhere. And though they may not admit it, many health providers are loath to lose their patients to a competing doctor's office or hospital. There's a term for that lost revenue: "leakage." And keeping a tight hold on patients' medical records is one way to prevent it.
There's a ton of proprietary value in that data, said Blumenthal, who now heads the Commonwealth Fund, a philanthropy that does health research. Asking hospitals to give it up is "like asking Amazon to share their data with Walmart," he said.
Blumenthal acknowledged that he failed to grasp these perverse business dynamics and foresee what a challenge getting the systems to talk to one another would be. He added that forcing interoperability goals early on, when 90% of the nation’s providers still didn't have systems or data to exchange, seemed unrealistic. "We had an expression: They had to operate before they could interoperate," he said.
In the absence of true incentives for systems to communicate, the industry limped along; some providers wired up directly to other select providers or through regional exchanges, but the efforts were spotty. A Cerner-backed interoperability network called CommonWell formed in 2013, but some companies, including dominant Epic, didn't join. ("Initially, Epic was neither invited nor allowed to join," said Sumit Rana, senior vice president of R&D at Epic. Jitin Asnaani, executive director of CommonWell countered, "We made repeated invitations to every major EHR … and numerous public and private invitations to Epic.")
Epic then supported a separate effort to do much the same.
Last spring, Verma attempted to kick-start the sharing effort and later pledged a war on "information blocking," threatening penalties for bad actors. She has promised to reduce the documentation burden on physicians and end the gag clauses that protect the EHR industry. Regarding the first effort at least, "there was consensus that this needed to happen and that it would take the government to push this forward," she said. In one sign of progress last summer, the dueling sharing initiatives of Epic and Cerner, the two largest players in the industry, began to share with each other — though the effort is fledgling.
When it comes to patients, though, the real sharing too often stops. Despite federal requirements that providers give patients their medical records in a timely fashion, in their chosen format and at low cost (the government recommends a flat fee of $6.50 or less), patients struggle mightily to get them. A 2017 study by researchers at Yale found that of America's 83 top-rated hospitals, only 53% offer forms that provide patients with the option to receive their entire medical record. Fewer than half would share records via email. One hospital charged more than $500 to release them.
Sometimes the mere effort to access records leads to court. Jennifer De Angelis, a Tulsa attorney, has frequently sparred with hospitals over releasing her clients' records. She said they either attempt to charge huge sums for them or force her to obtain a court order before releasing them. De Angelis added that she sometimes suspects the records have been overwritten to cover up medical mistakes.
Consider the case of 5-year-old Uriah R. Roach, who fractured and cut his finger on Oct. 2, 2014, when it was accidentally slammed in a door at school. Five days later, an operation to repair the damage went awry, and he suffered permanent brain damage, apparently owing to an anesthesia problem. The Epic electronic medical file had been accessed more than 76,000 times during the 22 days the boy was in the hospital, and a lawsuit brought by his parents contended that numerous entries had been "corrected, altered, modified and possibly deleted after an unexpected outcome during the induction of anesthesia." The hospital denied wrongdoing. The case settled in November 2016, and the terms are confidential.
More than a dozen other attorneys interviewed cited similar problems, especially with gaining access to computerized "audit trails." In several cases, court records show, government lawyers resisted turning over electronic files from federally run hospitals. That happened to Russell Uselton, an Oklahoma lawyer who represented a pregnant teen admitted to the Choctaw Nation Health Care Center in Talihina, Okla. Shelby Carshall, 18, was more than 40 weeks pregnant at the time. Doctors failed to perform a cesarean section, and her baby was born brain-damaged as a result, she alleged in a lawsuit filed in 2017 against the U.S. government. The baby began having seizures at 10 hours old and will "likely never walk, talk, eat, or otherwise live normally," according to pleadings in the suit. Though the federal government requires hospitals to produce electronic health records to patients and their families, Uselton had to obtain a court order to get the baby's complete medical files. Government lawyers denied any negligence in the case, which is pending.
"They try to hide anything from you that they can hide from you," said Uselton. "They make it extremely difficult to get records, so expensive and hard that most lawyers can't take it on," he said.
Nor, it seems, can high-ranking federal officials. When Seema Verma's husband was discharged from the hospital after his summer health scare, he was handed a few papers and a CD-ROM containing some medical images — but missing key tests and monitoring data. Said Verma, "We left that hospital and we still don't have his information today." That was nearly two years ago.