Solving the cost conundrum: Lessons from Grand Junction

An article in the June 1st New Yorker by physician and medical journalist Atul Gawande, MD, should be required reading for physicians concerned about the economics of medical practice. And what family physician isn’t? “The Cost Conundrum” presents the results of an investigation that began with the Dartmouth Atlas and led Gawande to one of the highest-cost health care communities in the U.S. – McAllen, Texas – and to one of the lowest – Grand Junction, Colo. – in search of an explanation for the three-fold difference in Medicare spending between these two cities. In exploring several hypotheses, Gawande contrasts the medical cultures in these communities and arrives at a conclusion sure to make many a physician squirm: The source of the difference in health care spending is “overuse of medicine” by hospitals and physicians alike. “Physicians in places like McAllen behave differently from others. The $2.4-trillion question is why. Unless we figure it out, health reform will fail,” Gawande writes.

The article captured the interest of President Obama, who cited the article in a meeting with two dozen Democratic senators earlier this week and said in effect, "This is what we've got to fix," according to one senator quoted in the New York Times.

Gawande suggests that cities like McAllen would be better served by “accountable-care organizations” like Grand Junction’s, “in which doctors collaborate to increase prevention and the quality of care, while discouraging overtreatment, undertreatment, and sheer profiteering.”

Roger Shenkel, MD, a physician leader in Grand Junction, Colo., was a member of the FPM Board of Editors for more than 10 years. During this time he wrote or co-authored a number of articles that reveal some of the health care strategies and tactics that underlie his community’s success. Dr. Shenkel also introduced us to his Grand Junction colleague Phil Mohler, MD, who wrote or co-authored several FPM articles that share the same themes of cost-effectiveness, quality and collaboration between physicians, medical groups, administrators and payers. We think you’ll find the articles as timely and useful now as when we first published them:

• New Drugs: How to Decide Which Ones to Prescribe
• Improving Chronic Illness Care: Lessons Learned in a Private Practice
• 1-800-Chronic Disease Management
• Weighing the Risks and Benefits of Clinical Interventions
• What Every Physician Should Know About Generic Drugs
• Creating a Successful After-Hours Clinic
• Building Rapport With Consultants: A Matter of Economics
• IPA Formation in Rural America: Nothing Like the City Slickers Do
• Medicaid Miracle in Mesa County
• Rural Managed Care: A 20-Year Road to Success

Posted at 04:09PM Jun 12, 2009 by Leigh Ann Backer  |  Comments[0]