Just before we went to Michigan I had the misfortune of cutting my finger deep enough to require a couple stitches. This evening, I just received the bill for the procedure. It helps to grasp one aspect of the health care challenge facing America.
Fortunately for me, my co-pay for an emergency visit is $50.
I would say that the entire visit to the emergency room required about 30-40 minutes. I checked in and waited a few minutes for a nurse. When she was available she took down my medical situation including complaint (bleeding finger), blood pressure and allergies. This discussion took less than 5 minutes. Next, I was taken to a treatment area where a nurse rechecked my blood pressure and dipped my finger in beta-dyne to disinfect it. Next, a different nurse came in and set up the equipment required to sew up my finger. That took a couple minutes, max. Finally, after a couple more minutes a doctor came in to sew up my finger. That required three small injections of Lidocaine to numb the finger, one needle and some suture material - and about 4 minutes attention. Following that, the same nurse that set up the suture kit came and put it away and bandaged my wound. Then, the first nurse I met came with some discharge information and I was on my way.
The charge? $2,821.20.
Fortunately, my insurance company apparently has negotiated discounts with the hospital and were ONLY charged $1,325.
I wholeheartedly embrace Capitalism and free markets. And I fully recognize the time, effort and resources required for nurses and doctors to become educated and retain their professional credentials. Finally, I recognize the vast amount of capital required to build and operate a hospital.
That being understood - it's simply crazy to charge someone $2,821 for less than 30 minutes or so of work. Think about it. That's a rate equivalent to $5,642 an hour; or over $10M a year for suturing fingers.
What is the actual cost? Let's assume the doctor makes $300K a year.. and the two nurses make $100K each. Factor in a lobby receptionist at $30K as well. You'd have a payroll of approximately $530K. Now figure that typical employee benefits are equivalent to approximately 40% of their annual salaries. That means their total compensation would be $530K*1.4 or $742K. Of course, you have to pay rent, keep the lights on, have the equipment to suture, pay for malpractice insurance, etc. So, factor another $750K annually for expenses (seems high). Even then, the total expenses would be less than $1.5M.
And yet the hospital is attempting to charge the work out at $10-11M per year. Worse, is that our insurance company is willing to pay for the work at an annualized rate of about $5M per year. That's just crazy.
I am aware that health care providers have to charge people that actually work and pay for insurance more than what their actual costs are so that they are able to provide care to uninsured patients. But this is ridiculous. Ridiculous.
Hip History....
7 years ago
6 comments:
Tod, do you need something to do? :)
Tod, you also forgot the salaries of the 'behind the scenes' people, the pharmacist, the pharmacy tech, the distribution people that brought the sutures, needles and syringes to the department, the housekeeper that cleans the room, the admission person that registered you, the billing department, the education person that kept the nurses that worked on you competent, the manager of the department, the CEO and CNO, the IS department that keeps the computers running so you could be registered....
Was this supposed to be in your rant section or the family blog:)
Preach it sister....
I think he also forgot the 5 other people in the ER that didn't have insurance. We helped them too.
let me try this a different way to see if i can reach the sisters with my point.
you both have dogs. stitches in animals use the same process. same materials. same everything.
would you be willing to pay $2800+ for two stitches in your dog?
and.. julie.. i did say:
"I am aware that health care providers have to charge people that actually work and pay for insurance more than what their actual costs are so that they are able to provide care to uninsured patients."
but enough is enough
What we actually need is the government to get out of health care! There are volumes of regulations that must be met for each patient. It doesn't matter if it is a simple stitch of a finger or a stroke patient. These regulations are part of the reason that healthcare costs so much. meeting regulatory requirements cost time and money
That same bill, if you were on government healthcare, would have been paid to the hospital at a fraction of what you were charged--so the hospital said it cost them $2800+ to treat you, negotiated down to $1400+, the government health plans currently pay a fraction ($700-$800) of that to the hospital and the patient doesn't even have to pay a deductable--so not only are you subsidizing the uninsurred with the higher cost, you are also subsidizing the government sponsered healthcare (medicare and medicaid).
And no I wouldn't paid $2800 for stitches for the dog--would butterfly it myself and pour peroxide on it(sorry julie). But then again I would probably do that for John also
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