Monday, September 24, 2012

Solutions leading to un-anticipated problems


Modernization of medical records has been one of the keys elements of healthcare reform and was thought to lead to a decrease in administrative cost by decreasing inefficiencies in the way medical records were previously maintained. I didn't anticipate that electronic medical records could lead to increases in Medicare fraud and providers billing for a higher level of service than the care actually given to the patient. This New York Times article discusses the increase in billing for healthcare services and increase in Medicare fraud noted after the implementation of electronic health records. Some of this increase in billing for higher level services is driven by the relative ease with which providers can clone information from one medical record to another i.e. essentially copying one patient’s information into another patient's medical record. This practice allows certain unethical providers to bill Medicare and private insurance companies for higher level of service while actually providing the patient with a lower level of medical service. 

The other side which is not reported in this article and is often cited by hospitals and providers is that now they are billing the customers more accurately than they were prior to the introduction of medical records. The rationale being that prior to introduction of medical records, patients and insurance providers were being under billed due to errors in reporting of ICD 9 codes for diagnoses and lack of proper documentation. EMRs have made proper documentation easier and have reduced the coding errors by automation of this process, hence leading to billing which is actually a much better representation of the level of medical service provided to the patient. 

As always, the truth lies somewhere in the middle. I personally think the trend is probably more towards overbilling, with elimination of fee for service payment structure being the most logical but politically difficult solution of this problem.

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