#68 - Marty Makary, M.D.: The US healthcare system—why it's broken, steps to fix it, and how to protect yourself
Episode Stats
Length
2 hours and 49 minutes
Harmful content
Misogyny
19
sentences flagged
Hate speech
12
sentences flagged
Summary
In this episode, Dr. Kelly McCary Marty joins Dr. Atiyah to discuss his journey into pancreatic surgery and the challenges of being a surgeon in the 21st century. Dr. Marty is currently a Professor of Surgery at Johns Hopkins University and is one of the leading experts in the field of pancreatic transplant surgery.
Transcript
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Hey everyone, welcome to the Peter Atiyah drive. I'm your host, Peter Atiyah. The drive
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My guest this week is Dr. Marty McCary. Marty is who's a close personal friend from residency.
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We overlapped when he was a fellow at Hopkins and I was a resident is currently a professor of
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surgical oncology and the chief of the islet transplant center at Johns Hopkins. And while
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so much of his work and professional accolades come from his surgical career and the work that he
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does in pancreatic surgery, especially in minimally invasive pancreatic surgery, Marty is one of the
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pioneering surgeons in doing one of the most complicated operations that's ever done, which
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is removing the head of the pancreas minimally invasively, meaning laparoscopically something I
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can't even fathom because at the time of my training, that wasn't even something that was
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considered. We actually don't touch on that one bit because there's so many other things that we
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really wanted to talk about. The other thing that Marty's really known for is being one of the
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co-creators of the surgical checklist. And this is something that has made its way up to the WHO
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safe surgery, save lives committee today. Many of you, if you're ever in the hospital,
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if you're ever having a surgical procedure will encounter this checklist because it's the thing
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that makes sure that people don't get operated on the wrong side, which is actually something that
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happened to me when I was in medical school. And it actually is something Marty wrote about in his
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first book, which was a New York times bestseller called unaccountable. And it's actually that book that
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became the basis for a very, very popular television show called The Resident, which is based on Marty's
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work. We touched on that briefly, but most of what we talk about is the material and the content that's
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featured in his upcoming book, The Price We Pay, which will be available shortly. And this book really
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takes on Marty's next challenge because if figuring out a way to do the most complicated pancreatic surgery
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from a minimally invasive standpoint wasn't enough, and then going after medical errors and
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trying to figure out a way to fix the system that makes it too easy to commit medical errors,
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well, if that wasn't enough, you know, Marty's decided the next thing that he's interested in
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trying to address is the broken healthcare system, which I think anybody listening to this knows in
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the United States is pretty clear. What I like about Marty is he isn't one of these guys who's trying
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to put the single silver bullet and blame it all on one thing. Oh, it's all drug prices, or it's all this,
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or it's all that. What follows is a pretty nuanced discussion that it sometimes makes me really upset.
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There were times during this interview when I just couldn't believe the stories he was telling.
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And I think many of you will be equally upset by these things and find it totally unacceptable.
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But at the same time, when it was all said and done, and as is often the case when these podcasts
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finish and the mic is off, we keep talking. And I think to myself, oh, I wish we recorded that
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because that was probably the most interesting part of the discussion we had. But I actually came away
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before Marty left my apartment. I came away realizing there's actually hope here. And I've actually
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never felt that there was hope for this problem. I truly thought that the US healthcare system is
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something that will drive itself off a cliff until it bankrupts us. And that is the end of it.
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And I came away from this discussion thinking, no, there are actual steps that could be taken to fix
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the structural errors that have allowed people with, in some cases, very good intentions, in some
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cases, reasonable intentions, and in rare cases, horrible intentions to basically create the most
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financially irresponsible system that I think has ever existed in the free market. If you're listening
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to this and wondering, why does this concern you? I believe it concerns almost anybody, because
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anybody who's ever received an explanation of benefits that made no sense, anybody who's ever
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received a medical bill that seemed ridiculous, anybody who's ever known anyone who's been chased down
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by a collections agency, which sadly, the numbers of Americans who experienced this is staggering.
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You'll want to listen to this because I thought I understood this system well enough that I could
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coexist with it. I learned so much from Marty about what people can do to protect themselves from this
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sort of predatory pricing that is, I mean, literally gouging the pocketbooks of people. I think if nothing
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else, you will come away from this episode with a greater sense of empowerment and how you can
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protect yourself in such situations and protect the people that you care about. I'll share with you
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just one statistic that breaks my heart. I believe it's one in four, maybe one in five women who
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undergo treatment for breast cancer about a year after their treatment is currently being pursued by a
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collections agency for some sort of ridiculous predatory pricing scheme that resulted from the
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treatment. To know that a patient now, based on some of the work that Marty has done, have steps that
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they can take to put an end to that kind of stuff and fight for their rights is just one of the many
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things in this episode that kind of gave me some comfort. So without further delay, please enjoy my
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conversation with my good friend, Dr. Marty Macri.
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It's awesome. Awesome. Proud of you. Everything you're doing, helping a lot of people out there. So just really
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Yeah, well, not as many as you. You know, it's funny. Whenever I'm doing a podcast, I'm sort of going over a
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person's bio and I've had the luxury of interviewing a number of friends for this podcast. And so I'm thinking
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to myself yesterday, I don't really need to review Marty's bio. I know Marty, but my team was kind enough to pull
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the bio together and they sent it to me and I was reading it and I was like, God damn, what happened?
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How did all of my friends leapfrog 27 steps ahead of me? And I say that without any envy, just complete admiration.
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I was with Jorge Salazar a few months ago and it's just another one of those examples of like all these guys that we
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trained with. Ted Schaefer is the head of urology at Northwestern. Jorge's building the pediatric cardiac surgery program in
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Houston. I'm like, when did Marty even become a professor? How did you fully, I mean, dude, you are accomplished, man.
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Yeah. Hopkins is a special place just as you've suggested. And I love it just as you loved it there.
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But I've always had a special affinity for individuals that are highly creative, a little
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too creative for the mold in medicine. And so you're one of those guys. That's why it's just so great to
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see you here and be with you. That's a kind way of putting it. There are a lot of things I want to
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talk about, but among them, of course, is you've got a new book that's coming out really soon.
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And this is your third book, but really your second on the topic of medicine in a pretty
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serious way. Let's start with your first book though, because that was, that's almost 10 years
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old now, isn't it? Yeah. Unaccountable coming on eight years. Yeah. Eight years. What prompted
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you to write that? And of course, what some people probably don't know is that a show that many people
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love called The Resident is actually based on that. We'll talk about the show in a minute,
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but let's talk about the book Unaccountable. Yeah. Unaccountable to me was an opportunity to talk
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about what we all talk about, but engage the general public in a way that both brings honor
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to medicine and at the same time warns people that it's important to get a second opinion. It's
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important to ask certain questions. I've always been amazed, even from my days as a medical student,
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where I was lucky enough to work with two of the leaders of the field of patient safety,
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Lucian Leap and David Bates at Harvard. And at that time, they were sort of radicals. They were
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talking about, hey, not only can you study infectious diseases or cancer, but you can study
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the science of delivering healthcare, like medical mistakes and how that harms patients.
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And then you go from that academic concept to surgical residency, where it's like, you can
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debate on a policy level, should we ration care? But like on call in the trauma bay, you're rationing
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care every minute. It's like, look on the ground, it's a different world. It's relentless.
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Like there's nothing in residency that, and maybe it's changed, but I'm guessing it hasn't
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changed that much. There is nothing to prepare you for or teach you about those types of questions
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Exactly. When I was at DC General City Hospital in Washington, DC as part of my residency at Georgetown,
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and there was an open elevator door. And somebody walked into the elevator shaft thinking the elevator
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And fell in and died. I don't mean to make light of it, but it was a tragedy and they had her picture
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up everywhere. And the door remained in the open position with the open shaft for three more weeks.
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There was no barrier. There was no cone. There's no do not cross tape or anything. And to me,
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this was like the ultimate story of how hospitals were not learning from their own mistakes. And
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three weeks later, another person walked into this opened elevator shaft and didn't die,
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but fell down and hurt themselves. You just think, who is watching out for the whole ship? Who's in
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charge here? And those sort of experiences, and we see them all the time as residents,
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you'd see the elevator button wasn't working to the helipad or the person in the x-ray counter refused to give
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you x-rays because they had their own little policy that they made up. And you're just like,
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can't somebody just look at the whole picture? So it made me think about systems, hospital systems,
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redesigning the delivery of care. And I think all of those questions naturally open up the question
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of how can we do better? How do we harm people? And the lexicon is tricky, right? Because if you call
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it a medical mistake, doctors get very, very defensive. And we work so hard to get to where
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we are. By the way, John Cameron, who people may or may not know, maybe the most famous surgeon in the
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United States. I spoke with him just before I came here and he told me, oh, you're going to see Peter
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Tia. He was the best resident we've ever had at Johns Hopkins. And when you did your time at the
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NIH in research, he said Steve Rosenberg, who's head of the NIH science surgery side, said Peter was
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the best researcher we've ever had at the NIH doing his research. Anyway, we work our tails off in that
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residency, right? And then to have someone say, oh, you screwed up. It's like, well, wait a minute. It
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wasn't me. It was the system or I'm overloaded. And the reality is it is a systems issue. So the
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lexicon is important. If you call something a medical mistake, then it assumes you're blaming
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somebody. But if you say the patient experienced medical care gone wrong, it's a more patient term.
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Now we have a lexicon in medicine that sterilizes everything. We call things a preventable adverse
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event, right? Just kind of washes anybody clean of any responsibility. But it's medical care gone
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wrong. And in the pricing world, it's the same thing. If you talk about healthcare costs, it's kind of
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nebulous. But if I told you the price of healthcare has gotten out of control, it's like talking about
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gas prices versus petroleum futures or something. It hits home. Medicine has a way of creating its own
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lexicon. And it really has a value system behind it. So one of the things I've tried to do, at least
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with the platform that I've been given from my surgical career at Hopkins is say, how can we change
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the lexicon? How can we look at the systems and the delivery of care? How can we make sure somebody's in
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charge of the overall ship? So the elevator door closes or somebody for the love of humanity, put a
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cone in front of an empty elevator shaft. We laugh at that example, not as you said, because of the
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tragedy of what took place, but because of the absurdity of it. But what's really scary is the far
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less absurd errors that take place. And I knew we were going to be talking about this stuff. And I sort
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of was trying to think of some of the non absurd mistakes that I made as a resident. And more
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importantly, it's the lack of a system in which one could make the mistakes. I think we just didn't
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know any better. It's only now I had the luxury of leaving medicine for many years before even
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coming back to it in a sort of different capacity. So I don't think it was until I fully left that I
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realized, holy cow, that was the Wild West, man. And we were doing our best. I mean, that was sort of,
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to me, one of the real beauties of being at Hopkins in addition to, I mean, I chose Hopkins as the place
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I wanted to go because of John Cameron, who was the chair of surgery, Charlie O, Keith Lillamo.
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It was basically three people who I had never met before I interviewed there was the reason I wanted
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to go. Great guys. So you had these three total legends. And then you had this idea of you were going
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to go to the epicenter of the surgical residency program. William Stuart Halstead creates this program
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in the late 1800s. And there was this sort of lineage of what was going on. You're in this place
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that's in theory, the best place in the world. And yet on day one, I remember the responsibility I was
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given. And I'm thinking, oh my God, am I good enough to do this? Am I? And the other thing that humbled me
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was the absolute faith that the patients had in us. And it really humbled me, really made me think
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they think I'm better than I am. They completely trust me. And how do I balance communicating my own
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insecurity about even the most trivial thing? I'll give you a silly example. You're pre-opping a
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patient and you're putting an IV in them. And you're thinking to yourself, I'm not even that good at this
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yet. I mean, this patient is going to potentially get stuck three times while I fumble to put an IV in
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them because the anesthesiologist couldn't be here right now to do it. And I'm sort of filling in.
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And yet they're stoically sitting there thinking, well, I'm at Johns Hopkins. I think that's the
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nature of a teaching hospital. So that's part of what we're supposed to be doing. But when it starts
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to get to the really serious stuff, I think there were many times when certainly I felt like I was out
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of my lane. You realize you walk into this incredible lineage historically of public trust in the
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profession. And a patient you meet in the emergency room will trust you to put a knife to their skin
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within two seconds of meeting you or to tell you secrets they've never told their spouse of 30
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years just because you're the doc. And it's this incredible sort of awe-inspiring, wow, they trust
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me more than I trust myself. I remember trying to put a central line into a difficult patient. You
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know, at 3 a.m., the patient probably didn't even need the line. You know how we were putting central
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lines in everybody? I was putting central lines between people in the parking lot practically when I was
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an intern. I mean, you didn't want to have your chief resident walk in and say, why doesn't this
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patient have a central line and lose it? So you just put a central line in everybody on this service
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for fear of getting yelled at. It was just absurd, the things we used to do like that. And I remember
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one night I tried to put a central line, couldn't get it, and I signed it out to the other resident.
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And I said, I tried. I couldn't get it. I tried, I don't know, five, six times. And then he went to
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do it. And he said, I was able to get it. By the way, I think you tried more than five or six times.
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I said, what do you mean? He says, oh, there were 20 introducer holes in the neck area where you went
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in. And I thought, gosh, the patient was ventilated. They were intubated. I just had no idea how difficult
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it could be. And the mantra was, you just try again and again until you get something right.
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That's the surgical mentality. That's sort of the idea is that you will perfect it. And if it takes a
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million times, it takes a million times. Yeah. So what year did you start working on that book? I mean,
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you and I had spoken about some stories that even ended up in the book years before. So obviously,
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the idea had been with you for probably 10 years. But when did you actually like kind of put pen to
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paper and start saying, I'm going to do this thing? I remember telling my dad, who's a hematologist or
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leukemia lymphoma expert, I remember telling him that I was seeing things in the hospital as a student
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and as a resident that were just mind boggling. And I couldn't really grasp with the collision of
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sociological issues to see us spend a million dollars rescuing a patient only to go out and
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have them repeat that behavior that brought them in or a new medication finally get invented
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in the pharma world and brought to the bedside. But docs just didn't feel like giving it or weren't
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aware of it. And you thought, wow, the implementation science of medicine is more challenging than the
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discovery science. And if you can invent Kevlar, but people don't wear it, it's a failure of the
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delivery or implementation. I thought this is where the opportunity is. And then I think, you know,
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part of things in my career were right time, right place, right? That's when everyone started to say,
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hey, wait a minute, we could deliver care better, safer, more reliably. But I told my dad these stories
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about stuff I was seeing. And there's this one patient who basically didn't want anything done.
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Sometimes as a resident, you connect with a patient at the bedside and you realize they really don't
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want this surgery that they're going to have done. And you communicate that to your team. And you were
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great about communicating. You had no hesitations to say, this is what the patient believes or I'm
00:21:01.720
concerned about this. And hyper communicators do great in surgery. They do great in medical school.
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They do great in surgery. They're annoying in the real world. But in surgery, you want that
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nonstop communication? Are you going to the emergency room? Should I come with you? Are
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you going to get these lab tests? Where should I stand in the operating room? Those are the
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communicators we love. It's always amusing. I have every now and then a parent who will call
00:21:23.220
and say, my son, who's in high school, wants to go to Hopkins Medical School. Can you help him or
00:21:29.080
talk to him? He has amazing hands. He was putting puzzles together at age two. It's like,
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they're all learned techniques. Okay, there's no gifted hands. They're all learned techniques.
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And by the way, we're not going to help any one kid give him preference and getting into
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med school. But you realize there was this, when I was a resident, there was this patient
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who just did not want surgery. And the doctors insisted that she have this invasive biopsy
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in order to figure out what the cancer type was. But the CAT scan essentially said it was clear
00:22:00.060
what this cancer type was. And the biopsy was just to confirm it. And I remember the patient
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just... But regardless of that, she didn't want the surgery to remove it, period.
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Yeah. Presumably, she was old or... Yeah, she was old and she lived alone and she didn't want
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the biopsy, the invasive biopsy. She wouldn't want a surgery to remove it if the biopsy confirmed.
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So she was basically saying, I just want to go home and sort of live the last few weeks,
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Yes. Leave me alone. And I thought, well, maybe it's important to prognosticate, to tell her
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you've got maybe two months or you've got six months. The reality is we never really know.
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Yeah, exactly. So I remember telling the team, she didn't want anything done. Well,
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we have to do the biopsy because we don't know what it is. I'm like, well, she doesn't care what
00:22:47.060
it is. We have to get it. Well, why do we have to get it? To know. We have to know. And I'm just
00:22:52.520
looking at this train that just will not stop and listen to patients. And I'm thinking,
00:22:57.060
how did we get to this point where we just do stuff on people who don't want things done?
00:23:02.900
And you look on a broad scale now, as I've been researching the cost crisis for this new book,
00:23:08.000
The Price We Pay, healthcare is now the number one industry in the United States. It is the number
00:23:13.280
one business as of January, 2018. Entire cities have been transformed. I mean, look at Pittsburgh.
00:23:19.440
It used to be a big steel town in my home state of Pennsylvania. You look around, it's all healthcare.
00:23:23.460
All the tall buildings are healthcare, health insurance, health administration. And you
00:23:27.500
realize, how did we get to a point where we've created this train that sometimes doesn't listen
00:23:32.200
to patients? And my dad said, write these stories down, Marty, because you'll be amazed how you forget
00:23:38.620
when you go on. And someday you'll be teaching residents and students. And these are important
00:23:43.140
things to remember. And that's when I started writing things down for the book, Unaccountable.
00:23:47.160
The TV show, The Resident, by the way, did a beautiful, and it brought a tear to my eye. They did a
00:23:51.660
beautiful description of that case where that patient wanted nothing done. In the TV show,
00:23:58.040
the patient simply said, I want to go home and clean the garage. I don't want to leave my wife
00:24:02.300
with the mess I've accumulated over my lifetime. It was beautiful. To me, that was the most amazing
00:24:06.400
part of being a part of that show. Yeah. My mother-in-law is obsessed with that show,
1.00
00:24:10.900
and she didn't realize it was based on you and your book. And of course, for the listener, my mother-in-law,
00:24:17.320
it was kind of a funny story here because she used to work for Charlie Yeo, who was one of these
00:24:22.040
legends that drew me to Hopkins. And so she was actually one of the first people I ever met at
00:24:28.120
Hopkins because the day I showed up, I wanted to go and meet Charlie Yeo. So I went up to the office
00:24:33.900
like an eager, literal intern with my tail between my legs. But she just had like a soft spot in her
00:24:41.280
heart for me. And when she knew I was talking to you today, she just couldn't tell me as many times
00:24:45.760
as how many times I needed to tell you how much she misses you and how excited she was when I was
00:24:49.520
talking to you. But anyway, it's her favorite show. For me to be able to say, you know, that's about
00:24:52.980
Marty, right? She's like, what? Oh my God, no. And it went from being her favorite show to, I don't
00:24:59.760
know, like a deity of TV or something. By the way, your mother-in-law, Janet, was wonderful. And one of
00:25:05.880
the reasons why we all loved her so much as a resident was here's a normal, caring person in the
00:25:11.320
department of surgery. You can actually talk. They would listen. It wasn't like, suck it up and move
00:25:16.120
on. So it's here's like a normal, healthy, human ombudsman in the middle of Navy SEAL training. And
00:25:23.600
it's like, oh my gosh, she'll hug us. And she had this feelings and she was kind. So we all loved her.
00:25:28.320
But yeah, I try to lay low with the show because there's nothing really good that comes out of
00:25:32.880
associating your name with a show like that when you have no editorial control. And even the first
00:25:37.280
couple episodes, I learned in retrospect, there was a low budget. Now the show's crushing it and
00:25:42.000
they'd spend four or $5 million a show. But back then when it was a tight budget, they had, for
00:25:47.300
example, an episode in the early parts where a medical coder was rounding with the doctors in
00:25:52.920
the CT scan room and telling doctors they need to order this test. And it was like, come on, no coders
1.00
00:25:57.760
are rounding with us. And then over time and their budget and they got more people involved, they
00:26:02.920
really beefed it up. And now it's really, it's a drama about the business of medicine,
00:26:07.060
the TV show, The Resident, whereas previous medical dramas have been about sort of the medical
00:26:11.620
side and medical care. So this is an attempt to really look at the business of medicine.
00:26:16.240
When did you meet Peter Pronovost? Did you know Peter before you got to Hopkins?
00:26:19.920
No, I met him. I met him in the ICU. He's an ICU doctor, as you know. And so I met him in the ICU.
00:26:25.220
And then when you get on faculty at Johns Hopkins, they assign you an official mentor. So he was
00:26:31.620
assigned as my mentor and we had offices next to each other. And he started talking about,
00:26:37.640
gosh, we're using this checklist in the ICU when we round to make sure we're covering all these
00:26:43.700
points. Like what day of antibiotics is this patient on? Let's anticipate where they're going
00:26:49.200
to go after they leave here and how can we make preparations? So that's where I got to know him.
00:26:54.300
Yeah, he was incredible. I always think back to my time at Hopkins as unbelievable. Like I just
00:26:59.360
felt too lucky to be there and just couldn't believe like everywhere you went, there was
00:27:03.520
this person who was exceptional and arguably the best in the country, if not the world at what they
00:27:08.760
did. And certainly Peter was no exception. Interesting as an aside, when I decided to leave
00:27:13.800
medicine, a lot of people thought you were making the biggest mistake of your life. Peter was one of the
00:27:18.680
few people, and by the way, the people who said that and felt that way did it out of complete
00:27:23.020
compassion and concern. So nobody was nasty about it. But Peter, he gave me a book by Joseph Campbell
00:27:28.700
and said, read this. I think it will help. And he was the most understanding person about it. He was
00:27:33.980
like, no, Peter, you know, I think you'll be a decent doctor. But if you choose to leave the
00:27:37.920
practice of medicine, I completely support it and proud of you. And I've never forgotten that Peter
00:27:41.900
was sort of the first person who kind of accepted my decision to leave. We were so torn, by the way,
00:27:46.520
because we had these conversations when you were thinking about leaving. And I thought,
00:27:49.800
gosh, you're so creative. This place beats creativity out of you, this cookie cutter job.
00:27:55.960
So run with that creativity. But on the other hand, we loved working with you. It was like having a
00:28:01.040
reliable, solid doc to work with is the best part of the job. So that's anyway.
00:28:05.880
Well, the good news is there was so many of those at Hopkins. I mean, I felt like my absence certainly
00:28:10.400
didn't change anything because it was just, honestly, I felt like everybody there was, we joked about it.
00:28:15.240
It must have been like the play for the Yankees, right? Everywhere you look, there's like
00:28:18.240
the best person at whatever they were doing. But how much resistance did you get from the field?
00:28:24.000
Because I got to feel like writing that book ruffled some feathers. And again, you do a very
00:28:29.280
good job in Unaccountable of not turning this into a holier than thou crusade. You're self-deprecating.
00:28:36.660
I mean, but nevertheless, in some ways, it's one of the first times an insider said with vulnerability,
00:28:43.140
look, we're not perfect here. We're struggling and we don't have a system that's great. It wasn't
00:28:48.000
some sensational whistleblowing nonsense. It was almost a cry for help.
00:28:54.080
But we come from a culture, and this isn't just Hopkins. I think this is medicine of a very stiff
00:29:00.080
upper lip. You suck it up and you do it and you're doing the best you can because our intentions are
00:29:05.700
good. I mean, I can only recall two residents in the entire time I was at Hopkins that were just bad
00:29:11.940
people. And when you think about how many residents would come through that program,
00:29:15.120
that's less than 1%. So there's less than 1% of the residents I saw at Hopkins were just
00:29:20.420
horrible human beings. So we got all these people who are good, and they're trying to do the best
00:29:24.880
they can. And there is this veil of secrecy. And you come along and you say, we're not doing good
00:29:31.240
enough. Like we could be doing better. And I'm going to share with the outside world for the first
00:29:36.160
time what this means. So did someone like sit you down and say, Marty, shut the hell up?
00:29:41.120
I tried to make it very personal. And like you say, I tried to point out where I've made a mistake
00:29:46.500
in taking care of patients. I tried hard to basically say, look, I'm a human being. We're
00:29:51.780
all human beings. We're going to make human mistakes. Let's not blame the human being.
00:29:55.600
Let's talk about how we minimize those mistakes, how we create safety nets when they do occur,
00:30:00.340
and how we talk openly and honestly about them so that we don't go home with a little PTSD because
00:30:05.540
it is a horrible feeling when you're involved in those things. But I tried to tell my own story of
00:30:11.280
observing in residency at an affiliate hospital, a woman walk into a place that was a branded
00:30:18.080
breast cancer center. And it really wasn't. There was somebody there practicing outdated
00:30:23.300
breast care. They didn't offer all the surgical options. They didn't offer any trials. And I just
00:30:28.740
thought this is dishonest to the patients. Now, what do you do with that observation? Do you internalize
00:30:33.420
it? I remember telling my dad once about a surgeon who shouldn't have been operating. And we've all
00:30:39.260
seen them. They're everywhere. I mean, most surgeons do the right thing and always try to. And we don't
00:30:44.120
want to create hysteria. But you do see this 5, 10, sometimes 15% of surgeons that should not be
00:30:49.980
operating. And I told another doctor in the hospital about what I witnessed in the operating room and how
00:30:56.620
it was an entirely avoidable and it was a skill issue. And the doctor just kind of put his head down and
00:31:02.080
said, yeah, that's too bad. And I thought, is that how we help each other? Is that how we police
00:31:06.400
ourselves? There's got to be a better system. And at a certain point, you realize, okay, the state
00:31:11.680
medical boards, it's not really a feasible way to help outliers. The departments, they're not always
00:31:17.180
incentivized or driven. Generally, we respect everybody's autonomy. Hospitals are profiting from
00:31:23.540
the individuals, not that they want anything bad to happen, but they're just not financially aligned
00:31:28.500
to really intervene. Typically, I don't want to make a broad statement there, but no one is in nobody's
00:31:34.700
direct interest. And so I realized we've got to educate patients on second opinions. We've got to educate
00:31:40.220
patients on the questions to ask. And I try to be very honest about the issue. Now, the one problem with
00:31:47.160
the book Unaccountable was the title. The publishers slapped their own titles on it. And I, of course, had a
00:31:52.880
positive title on it. And they come back, no, we're going to call it Unaccountable, and this subtitle.
00:31:58.100
And of course, I'm thinking, that's not going to fly well with the medical profession. It might sell
00:32:02.180
more books. And they had title rights. And I've learned, I probably got burned on that title a
00:32:07.740
fair bit, because of the 10% of doctors that contacted me, most doctors said, thank you for
00:32:13.000
speaking up, or I've seen this, or this is going on here. But the 10% of doctors that gave me negative
00:32:19.420
feedback, I'd say nobody of those doctors read the book. They actually just reacted to the title
00:32:27.360
or the title of a book review. And the media sensationalizes the topic of patient safety.
00:32:34.540
And it's very difficult as a patient safety researcher to treat the subject in a way that
00:32:39.660
the media is fair and balanced, because what they want to do is just, they're all in the ratings
00:32:43.920
business. I remember Fox News wanted to do a one hour special on this topic and had me in it. And
00:32:50.600
yes, doctor, this is important. We want to help this effort in patient safety. And then they call
00:32:55.020
the show the night before it comes out, they call me and they say, the show's coming out tomorrow,
00:32:59.300
it's called Dr. Death or something like that. Or something. I'm like, come on, you know, I thought
00:33:04.020
you were going to treat this. And so that's the issue with patient safety researcher. To be very
00:33:08.920
honest, I'm thankful that I'm no longer a researcher in patient safety. And my entire research effort has
00:33:15.220
moved on to the cost crisis in healthcare. Because during that era, a 10 year era, when we were doing
00:33:21.560
a lot of research on patient safety, working on the surgical checklist, the media was sensationalizing
00:33:27.240
the subject a lot. And the profession, to be honest, if somebody had a medical mistake, a patient
00:33:31.920
was complaining, they were sort of relegated as crazies. They were just kind of put out there,
00:33:37.080
or any malpractice claim that was resolved, had a gag rule that I wrote about in unaccountable.
00:33:42.860
So you could not speak to anyone for the rest of your life about your medical mistake.
00:33:47.160
Well, mistakes happen. And gagging somebody is tragic, because talking about the mistake is part
00:33:53.860
of the therapy, not just for the patient, but for us docs.
00:33:57.000
Well, I'm glad you said that, because there are several things that I still feel upset about
00:34:01.900
from residency. Again, they're not specifically directed towards any individual or even the
00:34:07.040
program itself, but more the overall culture. And this is one of them. As you probably recall,
00:34:12.040
there was a very clear rule. Now, it obviously wasn't a written rule. It was an unwritten rule.
00:34:16.620
But whenever there was an outcome that was not desirable, so that meant a patient died,
00:34:22.560
even if there was no mistake involved or obvious mistake, but patients die.
00:34:25.820
At Hopkins, doing the most complicated surgery that can be done on this planet,
00:34:30.460
and because it's a huge tertiary center, you're getting people from all over the world who are coming
00:34:34.680
with the biggest problems, invariably, people are dying. Well, the rule was, the unwritten rule,
00:34:40.700
was if there was even a chance there was going to be a lawsuit involved, you weren't permitted to
00:34:46.480
speak with the family. And so, and I remember this very clear one night when I was an intern,
00:34:51.680
and I was in the WICU, so one of the ICUs at Hopkins. This patient had been on our service for,
00:34:57.060
patient had been in a hospital for probably three months. I was just coming off the end of being on one
00:35:02.840
of the, so actually, I wasn't the WICU resident. I was on one of the surgical teams, but you're
00:35:06.780
taking care of the patient in the ICU. And one night I'm on call, and this is kind of the end.
00:35:11.860
I think the family withdrew support, and this patient died. And so I'm filling out the death
00:35:16.340
certificate, and his wife comes up to me, and it's two in the morning. And she just wants to talk.
00:35:24.480
I mean, she just wants, their kids aren't there yet. They're probably not going to be there till the
00:35:28.660
morning or whatever. So I just talk with her. And again, there's no blaming. This is just a,
00:35:35.420
she's questioning, oh my God, should we have even done this surgery? The gravity of this is starting
00:35:40.360
to weigh in. It's a typical situation of a patient who was probably in his late 70s, who had an
00:35:45.760
aggressive surgery for a cancer. And yeah, maybe in retrospect, it wasn't the right thing to do.
00:35:53.520
Even if somebody made a mistake, it's remarkable how patients are forgiving.
00:35:57.760
They just want honesty. They just want honesty. They're hungry for honesty.
00:36:00.200
Absolutely. And so I remember kind of the next morning getting spanked a little bit by the chief
00:36:05.000
resident when he found out, you were talking to Mrs. Smith for an hour last night?
00:36:10.100
Like, how dare you? How dare you? Right? Our job at this point is to make sure that if their lawyers
00:36:16.420
call and want the medical records, we get them to them in a timely fashion. We cooperate. And I'm like,
00:36:21.160
what the hell are you talking about? Why is that what we're thinking about at this point?
00:36:25.860
And as myself being a victim of a medical mistake, which you wrote about actually in the book,
00:36:31.060
I was amazed at how well you knew that story. I don't even, like, it's funny. I remember when
00:36:35.300
you sent me the galley of that, I was like, I can't believe Marty remembers all this stuff because I
00:36:39.780
have total hippocampal wipeout from residency. I remember huge blind spots I have, but I never wanted
00:36:48.160
to sue the surgeon who did this stuff to me. But I was definitely upset about the fact that
00:36:53.920
he wouldn't talk to me. It was surgery gone bad, if you will.
00:36:57.500
I feel like I may have told the story before, but I had a wrong side surgery. When the surgeon
00:37:01.440
operated on the wrong side of my spine, something went wrong. I woke up from the surgery in worse
00:37:06.700
shape than when I went in. And for three weeks, he refused to acknowledge anything was wrong. I was
00:37:11.400
seeing him in clinic. He actually called me a pussy and told me to suck it up. He was a horrible
00:37:16.640
human being. There's no question about that. Not because of this. It's just, this guy was a
00:37:20.540
horrible human being who happened to do this. But what amazed me was the complete and utter lack
00:37:25.220
of honesty. I mean, just, and to this day, people say to me, how did you not sue him, sue the hospital?
00:37:34.040
And I said, look, maybe it's because I'm Canadian and we're just not litigious people, but it was never
0.97
00:37:38.700
about that. This wasn't something a dollar was going to solve for me. I just wanted a guy to be able to say,
00:37:44.780
oh my God, Peter, I can't believe in all. And I understand how the mistake happened. It was VIP
00:37:51.260
treatment. That's the problem. So I'm a medical student at Stanford. I've got this huge finding
00:37:55.480
on the MRI. They want to get me right to the OR. It's a Sunday night. We're going to pre-op you first
00:38:00.360
thing in the morning. You're going straight away. Didn't even meet the surgeon, no physical exam.
00:38:04.840
It was a perfect and colossal mistake that was the result of a whole bunch of people trying to do the
00:38:11.940
right thing as quickly as possible. And in all of the hoopla, they got the side wrong.
00:38:16.100
Yeah. It's always the case with VIP care, isn't it? If you're a VIP, do not tell anybody.
00:38:22.860
Do not say you're on the board or have a buddy who's a doctor, just your average Joe walking in
00:38:30.780
But you went through, I mean, that was a lot, but people are just hungry for honesty. And you know,
00:38:34.700
unfortunately now the risk managers of hospitals have dominated the practice of medicine.
00:38:41.220
When things go wrong, they basically create this deny and defend mentality.
00:38:48.560
It's got, well, I personally think that hospitals are making too many decisions based on what the
00:38:53.960
risk managers are telling them to do. Because from a risk management standpoint, legally,
00:38:59.940
and this is with any corporation, it's not just medical, you want to basically shut off communication,
00:39:04.760
deny and defend, hold your party line and fight it in court and in the settlement process and
00:39:10.300
deposition. But in medicine, people want honesty. They're forgiving and they want to understand
00:39:16.380
what happened. And it's remarkable. I had a patient once who said that surgeon wasn't able
00:39:21.220
to do this in the surgery and they sent the patient here to Hopkins. And I said, well, yeah,
00:39:26.480
I'm sorry you went through that. Yeah, us too. But you know what? Our surgeon did his best and he
00:39:30.980
offered for us to come here initially to Hopkins. And we said, no, we'd really want to stay here in
00:39:36.720
North Carolina. We'd like you to go ahead if you feel comfortable. And there was so much honesty.
00:39:41.620
You realized people don't really sue because things go bad. They sue because things go bad and there's
00:39:47.300
no honesty and transparency. Well, and I think there are data to support that because I remember
00:39:52.000
in residency getting kind of annoyed by this situation of when bad things happen, you're not
00:39:57.540
allowed to talk to the family. And I remember pulling out some, this was soft research, but the
00:40:02.920
takeaway seemed very clear to me, which was lawsuits happen when communication breaks down
00:40:09.340
independent of the severity of the outcome. So you can have lawsuits over bad communication when
00:40:16.220
the outcome was not really that bad. You order the wrong diagnostic test on a patient, for example,
00:40:21.500
they're not hurt from it. They were exposed to maybe more radiation than they should have been.
00:40:24.900
And that's bad, but that's different than you operate on the wrong carotid artery. But it seemed
00:40:30.080
that the lawsuits, the severity of any sort of litigious behavior was much more proportionate
00:40:35.040
to everything that happened after the breach. Absolutely. I mean, again, that was my very
00:40:40.460
kludgy takeaway 15, 20 years ago. Is that still, did the data bear that out? Yeah. Well, the studies
00:40:46.120
show that satisfaction of the patient is the bigger driver rather than the actual events. So if the
00:40:52.040
patient is extremely satisfied, the risk of a lawsuit is low. And that's why I tell docs when something
00:40:57.540
goes wrong, reach out to the patient immediately and disclose. I had a patient where I ordered a CAT
00:41:03.480
scan and they shouldn't have had a CAT scan. I remember you told the story once and this patient
00:41:06.820
didn't like you in the first place. The patient was already pissed at me. The patient had a pancreatic
00:41:10.920
leak, which is 20, 30% of all pancreatic surgery. They struggle with a leak that keeps them in the
00:41:16.840
hospital longer. They feel sick afterwards. And I basically went to this patient thinking, gosh,
00:41:22.440
this guy's going to sue me. He had a similar name to another patient. And when I talked to the resident
00:41:27.920
who then talked to the clerk at the nurse's station, something broke down. I might've not been
00:41:34.540
clear. I might've said the wrong name. I don't remember. I was busy. The resident might've passed
00:41:38.760
the wrong name. The clerk may have entered the wrong name. Who knows? We're not going to have an
00:41:43.280
investigation. But I went to the patient and I said, look, I made a mistake here. Something went wrong.
00:41:48.580
I take responsibility. You shouldn't have had that CAT scan. It was not intended for you.
00:41:53.540
It was intended for another patient on this floor. I mean, this is the stuff risk managers just vomit
00:41:58.600
when they're hearing this. They're like, shut up. Come up with an excuse. Because it's plausible that
00:42:03.800
you would do a CT scan on a patient with a pancreatic leak. You could have easily gone in
00:42:07.320
there and said, Mr. Smith, I just wanted to be doubly sure that the leak was contained. Yeah.
00:42:13.400
So the guy looked at me and I said, I'm happy to get the results right now. As soon as I found out
00:42:18.540
about it, I came up here to tell you. I'm happy to go down and get the results right now. I haven't
00:42:22.440
seen the results yet and share them with you. And we can just see what the CAT scan showed.
00:42:26.500
This guy already had sort of an angry look on his face. He was already upset. I think idealistic
00:42:31.380
expectations of how his recovery should have gone. And he looked at me and this guy put a big smile on
00:42:37.520
his face. And he said, doc, thank you for coming up here and explaining this to me. I really appreciate
00:42:43.420
your honesty about it. That guy never sued me. Okay. We are Facebook friends today because he just
00:42:51.200
hit me. People are hungry for honesty in medicine. Now, honestly, when you make a mistake and someone
00:42:57.020
dies, you need to talk about it. I mean, I hear every now and then about a tragic, horrible,
00:43:01.800
avoidable case. And my first reaction is I want to talk to that cardiology fellow or whoever was
00:43:08.140
involved and let them know this happens to all of us. We're human beings. Things are going to happen.
00:43:13.380
Let's talk about how to prevent it. How do you feel about this? We've got to talk through because
00:43:17.800
I'll tell you, when we internalize, it's bad for our bedside skills. We turn into robots. I don't know
00:43:23.360
if you saw the movie Hurt Locker where this guy's diffusing bombs in the Middle East. Then he comes home
00:43:30.020
and his wife is telling him like, go pick up some cereal in the supermarket. And he's just looking at
00:43:35.580
these cereals like, what's this matter? I'm in a war overseas and who cares what cereal? He can't
00:43:42.240
do the activities of normal living. American sniper, the same thing. He's a hero in war. And then he
00:43:48.940
comes home and he's watching his kid and daycare's wife's trying to engage with him. And he's just a
00:43:54.660
robot. And that is exactly what we doctors go through when you're in the ICU, you're in the trauma
00:44:02.220
bay and somebody has a tragic illness and you're yelling and screaming to get a chest tube in and
00:44:07.040
you go home. Unless we address it head on, unless we talk about it, unless we can't cope. And the way
00:44:13.940
we tend to cope is we just internalize it. I'm always laughing when one of my friends says, I went
00:44:18.800
on a date with a doctor and he didn't have any emotions. And he just started talking about different
00:44:24.500
incisions he would use on the scalp to approach a brain tumor. And I'm like, we internalize too much
00:44:30.460
at the hospital. And it's important to have these honest conversations. By the way, this is what I
00:44:35.000
love about the students. The students have like very little tolerance for BS. I guess it's just
00:44:39.440
part of this millennial generation. So when they see stuff in the hospital, they call it out. Wait,
00:44:44.680
this lady didn't want a biopsy. Why are we doing the biopsy? Ho, ho, wait a minute. And they don't
1.00
00:44:49.440
care about how it's very different from us. As students, we were head down. When someone says jump,
00:44:57.040
we say, oh, hi. You fall in line. I mean, do you remember the twist, which was this pastry on the
00:45:02.540
tray, on the catering tray at M&M conference at Hopkins for many years? Yeah. Yeah. That was the
00:45:08.080
NAFLDT2D special. Right. Exactly. But the word was John Cameron, the chief of surgery, loved the
00:45:15.440
twist. And there's only one twist on the tray. If any resident or med student took it, it was like
00:45:20.600
the biggest faux pas. You do not touch the twist. And they would literally orient you like, here's
00:45:26.060
how you call the blood bank. Here's where you send the labs in. And don't touch the twist at M&M
00:45:31.800
conference. Like part of the four things they tell you when they start to orient the students.
00:45:36.760
And I heard one day, I wasn't there, but I heard one day they found a student who showed up early
00:45:42.220
for conference and he was halfway through the twist. And they were like, what are you doing? No.
00:45:48.060
Oh. We've got to get another twist sent up here immediately.
0.96
00:45:51.100
A twist emergent stat. They're trying to do like the Heimlich on them and preserve the remaining
00:45:56.040
piece of the twist and make a clean cut and prepare their apologies. I mean, that, like you're saying,
00:46:01.720
we just fell in line. It was the military. And gosh, I remember a patient struggling in the ICU. Their
00:46:07.220
oxygen saturations were low, but it was 627. And it took me three minutes to walk to the M&M conference.
00:46:14.620
And you were never late for that conference. And I'm literally like, nurse, can you just manage?
00:46:19.400
I have to go. I have to. This is absurd. This patient's struggling in the ICU with this incredible,
00:46:25.600
I've never seen anyone show up late to that conference in my 16 years of conference at
00:46:31.100
Hopkins. And it's just amazing, this militaristic. And the reality is we should be at the bed,
00:46:35.920
whatever the patients need, we should be there for them. But there's this culture and it's changing.
00:46:40.180
So I love the students. The students are the most exciting part of the job. They are,
00:46:45.520
with the pricing failures that we're writing about now in our research, they are going after these
00:46:50.500
predatory billing practices. And they're saying, excuse me, what the hell? You billed a patient $10,000
00:46:56.360
for a CAT scan. And they've started this movement called Restoring Medicine. They've got a Facebook
00:47:04.460
Yeah, medical students at Hopkins and around the country. They're just trying to get a grassroots
00:47:08.320
thing going. They did this on their own. They approached me and they said, look, we love the
00:47:11.780
book, The Price We Pay. We want to work on this. These are our patients that are getting harassed
00:47:19.180
for their medical bills. The patients did not come to the hospital administration or billing department
00:47:26.040
for medical care. They came to us, the doc, and now they're getting shaken down with these egregious,
00:47:31.840
overpriced, surprise bills. It may be that this is going to be the number one issue in the next
00:47:37.680
election. There's some early polling from the LA Times that are showing it's not just health care
00:47:42.100
that's the number one issue in America at the voting polls. It's medical bills. In the midterm
00:47:47.260
elections, Trump's first term. In the midterms, health care surprised everybody. It was the number
00:47:52.000
one issue. They didn't think it was going to be that high. That was not the Obamacare debate. That
00:47:56.040
was people getting hammered with medical bills. And the students right now are saying enough is
00:48:00.960
enough. That generation demands transparency in every aspect of life.
00:48:04.280
There's so much I want to talk about on this front because that's the subject of your book
00:48:07.820
and the stories that you tell in that book just they really resonate with me. But I want to tell
00:48:14.020
a funny story just because you brought up John Cameron and he is such a god to me. As you pointed
00:48:19.480
out, the Hopkins medical students are probably the best medical students in the country. And so that
00:48:23.540
was sort of one of the privileges of being a resident there was for the listener, there's a real
00:48:27.640
hierarchy in medicine. So you have the attending, that's the faculty member. You have the fellow,
00:48:32.600
so they finished their residency, but they're now doing some additional training. You have the chief
00:48:36.840
resident, who's the most senior resident, so they're still in training. You have sort of mid-level
00:48:41.720
resident, junior resident, intern, sub-intern, which is still a medical student, but in their final year
00:48:47.600
and then the third year medical student. I mean, that's basically the entire hierarchy. So one of the
00:48:51.800
real privileges of being at Hopkins was even as an intern, you got to scrub in with Dr. Cameron when
00:48:58.520
he was doing a Whipple procedure. You got to retract and you got to remove the gallbladder.
00:49:02.940
You have the privilege of being yelled at if you're really lucky.
00:49:06.460
Well, I mean, it's funny because if you were in the general surgery categorical program,
00:49:10.380
you couldn't wait to get in there and do that. Now, of course, if you were one of the neurosurgery
00:49:14.180
residents, that might not be as appealing because you're like, oh my God, you know,
00:49:17.140
I just got to get through this thing. But I loved it. So anytime I got to be in the OR with Dr.
00:49:21.900
Yo, Dr. Cameron, it was like the greatest day of my life. And I didn't care if I got yelled at
00:49:25.500
a hundred thousand times and I didn't care if my fingers went numb trying to retract that liver.
00:49:29.780
It was the best. And there was generally a medical student in there as well. And again,
00:49:34.380
if the medical student wants to go into surgery, it's just going to be a fun afternoon if they're
00:49:38.980
competent because they're going to get pimped. So I don't know if the word pimping is still,
00:49:42.660
is that still legal? Oh yeah. Pimping is alive and well.
00:49:47.460
It's the Socratic method of teaching. It's really posing a question. And so it's just a method of
00:49:53.380
explaining things, but the students perceive they've been taking tests their entire life.
00:49:58.180
On average, every four days of a human being's existence before they come into medical school,
00:50:02.640
they've been taking a test. So they perceive it as, oh my gosh, the great John Cameron or whoever
00:50:09.100
the surgeon is, yo, Lilimo, is asking me a test question. And I'm cataloging through the billions
00:50:15.980
of things I've memorized to see if I know the answer. And if I do, I will make it. And if I don't,
00:50:21.580
I'm dead, we're more interested in someone's communication skills, honesty, affability than
00:50:26.460
we are. They know every fact. And some of this stuff is not knowable. Anyway, pimping is alive
00:50:31.640
So the term still exists because it was a very important part of what was happening. And you
00:50:34.860
thought a lot about this. You knew any day you went into the OR, okay, what are they going to
00:50:38.760
pimp me on? Is it going to be the anatomy? Is it going to be the history of this surgery? Is it going
00:50:43.280
to be what the next step is? That kind of thing.
00:50:45.440
I personally don't do it after somebody passed out when I asked them a question once. Normally
00:50:50.420
they're shaking as you're asking them a question and you need their hands to be steady. So
00:50:55.200
I've basically asked myself the question. If I were to ask myself so-and-so, I would think
00:51:01.960
Well, I'll tell you, I thought there were some attendings who pimped purely from the standpoint
00:51:06.120
of just trying to torture. Cameron was not one of them.
00:51:10.360
And Cameron, I actually talked about this with Ted Schaefer on my interview with him. Cameron
00:51:14.900
did this thing called Sunday school with us interns every morning. It's like seven o'clock
00:51:18.900
every Sunday morning. We did Sunday school with Cameron where we would have these discussions
00:51:22.280
about the history of surgery. And for those of us who came to Hopkins with that sort of
00:51:26.160
love, this was a gift from God. Like you couldn't imagine you were getting to sit down
00:51:29.940
with the most famous surgeon in the country and one of the greatest historians of surgery and
00:51:35.240
get this lesson. So to be in the OR with him was usually a history lesson.
00:51:38.900
Okay. So fast forward, I'm an intern on GI gold, which was the flagship service at Hopkins.
00:51:44.700
And we had a medical student. You always have two medical students. And as I said, usually
00:51:48.980
the medical students at Hopkins, cause it's, they're just so good that it's just, it's
00:51:52.460
fun to have them around. Even if they don't want to go into surgery, they're just good students
00:51:55.540
and you get to know them and stuff. So I became friends with many of the students. And
00:51:59.000
in this particular month, one of the students wanted to go into neurosurgery. Well, she's at
00:52:03.040
the right place. We're at Hopkins, but you knew deep down that it wasn't going to
00:52:06.400
happen. She just was a space cadet. Like there's just no other way to describe it. She was out
00:52:12.520
to lunch. Actually. The problem is she didn't know it. She had this incredible confidence
00:52:18.220
about her that did not match her ability. That's the most dangerous subtype. It really
00:52:22.280
is. So we're in the OR one day and Dr. Cameron is always talking to the medical student. He's
00:52:28.560
always being friendly. And he says, I do remember her name, but I won't use it. So let's pretend
00:52:32.780
her name is Susie. He's like, Susie, what are you interested in? And again, this is where
00:52:38.020
any medical student will say, Oh, I'm interested in pediatrics. Great. And he will march down
00:52:42.620
the path of, do you know who the first pediatrician was? Blah, blah, blah, blah, blah. And he's
00:52:48.400
just walking you down the path. And so Susie says, I'm interested in neurosurgery. And he's
00:52:54.140
like, great. Do you know who the first neurosurgeon was at Johns Hopkins? And she's like, no. Now
00:53:03.140
the listener, if someone's listening to this, they're thinking, Oh my God, how would you know
00:53:06.720
that? But here's the deal. If you're at Hopkins, you know, this stuff, just as you know, William
00:53:10.960
Osler and William Stewart Halstead, who they were like, everybody knows who created neurosurgery.
00:53:16.560
It was a guy named Harvey Cushing. And he trained under Halstead in the late 1800s before moving to
00:53:21.180
Boston and basically creating the field of modern neurosurgery, the Cushing reflex, right? If you're
00:53:25.980
listening to this and you're not in medicine, you'd be like, why should she have known this? But
00:53:29.220
if you're in medicine, you realize you can't be at Hopkins and not know this. Okay. So she doesn't
00:53:36.540
know the answer. So he keeps trying to give her a hint. He's like, well, he trained at Hopkins under
00:53:41.920
Halstead in the 1880s. No, I don't know. He then went up to Boston and created
00:53:51.060
this pro. No, I don't know. And by the way, at the time, Dr. Cameron is holding the Bovee,
00:53:57.160
which is, this is called the electrocautery, but everyone just calls it a Bovee. And this
00:54:00.520
is a device that revolutionized surgery. It's hard to imagine you could do surgery without
00:54:04.660
electrocautery. So this is a device that cuts and simultaneously cauterizes. So almost everything
00:54:10.860
we're doing in surgery is using this device. And it was invented by, of course, Cushing. And
00:54:15.580
so as he's holding the Bovee, and he's starting to get a little irked now that she doesn't
00:54:19.380
even have a clue. And he says, he invented the device I'm holding in. And he rattles off
00:54:27.280
whatever year it was, 1907. No idea. No idea. He must have rattled off 10 other hints. She
00:54:34.580
finally blurts out her best answer. Ben Carson, who at the time was a pediatric neurosurgeon
00:54:40.580
at Hopkins, who of course has since gone on to become involved in politics. And he loses
00:54:45.020
it. He's like, I suggest you learn your history of neurosurgery. And I couldn't wait to get
00:54:53.100
out of the OR that day to tell my other co-intern this story. And this is how deprived you are
00:54:59.240
of any sense of whatever. We thought this was so funny that we spent the next few months
00:55:04.680
referring to Ben Carson as Benjamin Beauvoyer du Carçon. Because we came up with this idea that
00:55:12.160
Ben Carson had actually invented the Bovee. And that's why it took his name. But we had to come up
00:55:16.640
with this whole French twist to make Beauvoyer. So 20 of the residents at Hopkins heard this story.
00:55:22.380
And we were all going on about how Benjamin Beauvoyer du Carçon created the Bovee. And it wasn't
00:55:28.740
Cushing and all of this other stuff. And to me, that's just an example. Like, I don't even know
00:55:32.740
why I told that story. Other than it's just, you're so sleep deprived. You're so giddy. You're
00:55:38.920
under so much stress that you have to latch on to the dumbest thing as something that's funny.
00:55:44.260
Yeah, absolutely. And it's like whatever it takes to appease the higher ups. The sort of deep sarcasm,
00:55:50.420
I've been the subject of it many times with Dr. Cameron. I have a very good, strong, complicated
00:55:57.200
relationship with the man. He's my senior partner. We've shared a secretary in our practice now for my
00:56:02.540
entire career since I was a fellow under him. And he's both my best friend. I play golf with him
00:56:09.880
maybe every other week. We're great friends. We've done vacations together. The man's 82 years old
00:56:15.500
and a legend in the field. And at the same time, he's my greatest adversary in some of the innovation
00:56:21.660
I've been trying to do at Hopkins, mainly introduce minimally invasive pancreatic surgery. Now he's been
00:56:28.200
very supportive at times. At other times, he'll look at me with the suspicion of, are you using
00:56:33.400
those toys again? Heaven forbid we have a single complication. Even though the baseline complication
00:56:39.620
rate from pancreas surgery is 20%, it's unavoidable if you do a fair amount. If I have one complication
00:56:46.720
and we had, did you use those sticks and toys and cameras? Yes, Dr. Cameron, we use the minimally
00:56:53.220
invasive to have less surgical stress on the patient's physiology and nearly eliminate the
00:56:59.380
risk of a wound infection and other complications. And he will say, well, next time you might as well
00:57:05.300
just take that patient and roll them into an empty elevator shaft, you know, or he'll call you an
00:57:12.340
assassin or what was the other one he used to say? Marty Eminem conference. Sometimes I wonder
00:57:17.860
whose team are you on, the patients or the cancers? We'd be like, no, Dr. Cameron, the gas does not
00:57:26.880
spread the cancer, inflating the CO2 gas. And that was an old criticism that I've answered thousands
00:57:32.300
of questions about. I heard the gas spreads the cancer. No, that's not true. It's like lunar eclipse
00:57:37.960
can spread the cancer. I do want to go back to something else you've said. We sort of glossed over
00:57:42.680
it. But before we get onto this sort of price stuff, which is, it's so frustrating to me. Two things.
00:57:47.700
One is you're absolutely correct. And I've never really thought of it as explicitly as you've
00:57:52.340
described it. But the idea that the doctors, nurses, and healthcare providers who are involved
00:57:59.180
in seeing bad outcomes, it's a form of PTSD. Now it's absolutely not as severe as a person whose
00:58:07.660
job it is to defuse roadside bombs. And I don't think that anything we would ever see in the hospital
00:58:13.100
on our worst day comes close to what you're going to see in the battlefield. But it is still PTSD.
00:58:20.840
And I think of all of the weird rituals I used to have. And I don't think, I mean, I maybe told
00:58:25.920
this story once, but we saw a lot of gunshot wounds. And sometimes the patients die in the field,
00:58:31.020
so you never see them. And then sometimes they come in and you'd get to do these heroic things and
00:58:34.620
you save them. But there's a subset who die in the trauma bay. There's quite a few of them.
00:58:38.500
And I don't know why, but I couldn't sort of let that go. And I remember distinctly one case of
00:58:44.440
this guy who looked like he was about 25, single gunshot wound to the head, but he must have had
00:58:49.320
some vital signs in the field. So he was still brought in the trauma bay. And I might've actually
00:58:54.120
been the intern at this point. I don't think I was the Halstead chief. So we're doing the few things
00:58:58.780
that we can do to basically try to at least see if he has some vital signs so we can do something.
00:59:03.900
But very quickly, it's clear that nothing's going to happen. So we don't even bother to call
00:59:07.480
neurosurgery. I think at this point he's just declared dead. And at this point, everybody just
00:59:10.880
has to sort of leave the trauma bay quickly so that the cleaning staff can come in, body can be put
00:59:16.340
into a bag, get all the blood off the floor, open the trauma bay up for the next one. And his wallet
00:59:22.820
is on the floor and nobody else is in there except one of the nurses. And I pick up the wallet
00:59:28.420
and I open it up and there's his driver's license. And I look at the picture and you can see what he
00:59:35.160
looks like when he doesn't have a gunshot wound in his head. It looks good. I bet.
00:59:38.800
Yeah. And there's a picture of a girl in his wallet and she looks like she's about three years old.
00:59:44.300
And I'm guessing it's his daughter. And I'm thinking to myself, I realize this guy is involved
00:59:50.320
in something to do with drugs because 95% of the trauma we saw was drug related. And it's so easy
00:59:56.800
to just dismiss that as well. Now that's what's going to happen. If you're going to sell and buy drugs
01:00:01.020
in the streets of Baltimore, you're going to get shot once in a while. And I have no attachment to
01:00:04.420
this. But I looked at that. I look over at him and his brain is coming out of the side of his head.
01:00:08.580
That's unfortunately just the reality of what a gunshot wound to the head looks like. And I'm
01:00:12.360
looking at this picture and I'm just torn up by it because I'm thinking, this is one more kid that
01:00:17.380
doesn't have a dad. Whatever this guy did, he didn't deserve this. Whether he stole something or
01:00:22.680
didn't pay somebody or whatever he did, this was too extreme a punishment. But then I also realized
01:00:27.780
whoever did this to him is also in the same situation. This is just one horrible situation.
01:00:32.740
And it just killed me. It's hard to explain how upset I was about this. But I also realized
01:00:39.000
you have about 10 seconds to get your stuff together and get on to the next one because
01:00:44.300
you're going to get paged again and again and again. And oh, by the way, you've got seven other
01:00:49.240
things you didn't do yet on your list today that you have to go and do. And you've got to go track
01:00:53.340
down those blood culture results. There just wasn't a moment to stop and do this. And I thought to
01:00:57.620
myself, we saw so much trauma. And I don't mean just trauma literally as in trauma, but I mean
01:01:05.280
things that are traumatic to a human. And yet I don't once remember there being a discussion about
01:01:11.900
that and how one should deal with that. And I do think that so much of the burnout that we see,
01:01:19.420
and my friend ZDogg, who I know you've met briefly, but...
01:01:22.560
Yeah. You guys should spend a lot of time together. He's spoken about this so eloquently,
01:01:27.420
but this idea of physician burnout, he calls it sort of mortal wounding. And I think he's right.
01:01:33.320
This isn't, I'm tired of my job. It's, I don't know how to internalize what I'm seeing. And we're
01:01:41.200
just, I don't think as a society, whether it be in the military or in medicine or in any field,
01:01:47.080
we're just not, I don't know, we're not coached. We're not encouraged. We're not taught how to
01:01:52.300
share that. I mean, it would never make sense to me to talk to that, to talk with anybody else about
01:01:58.240
that, including my peers, because why would I bother you with that story? Because you got 10 of
01:02:03.620
the same story and you never think that, well, maybe there's value in talking about that. And by
01:02:08.280
the way, acknowledging how much it tears you up.
01:02:10.180
Yeah. And it's exhausting to allow your emotions to go there and think about that patient's daughter.
01:02:16.620
And what's happening with the family? And should I reach out to a family member? You know, there's
01:02:22.780
a nurse saying at the nurse's station, we have the family on the line. And you're thinking, I don't
01:02:28.500
want to take that call because it's emotionally exhausting and you're already exhausted. You haven't
01:02:34.520
slept for the love of humanity in 36 hours. You got to prepare for the next one. So as a coping
01:02:40.760
mechanism by default, without any outside instruction, a human being in that situation
01:02:46.720
will naturally turn into a robot. You just become androgynous. You do not express any emotions. You
01:02:52.920
basically say, this is part of the job and I've got to move on. But what happens is it changes who we
01:02:58.680
are. And you see these incredibly bright, young people interview for med school. The sort of kid in
01:03:06.440
college that says, when everyone's talking about their careers, I'm kind of thinking about med school.
01:03:11.220
They're different from their peers, right? There's this intense sense of compassion, a desire to apply
01:03:15.920
science to help people. It's a compassion-driven profession. The sort of person in high school
01:03:21.540
says, you know, I'm thinking about nursing. They're different from their peers. We're all driven to
01:03:25.560
medicine because of a sense of compassion. And then you take these students when they interview for
01:03:30.660
medical school at Johns Hopkins and we ask them the standard question everybody gets asked in every
01:03:36.220
medical school interview. Why do you want to be a doctor? Because I really want to help people.
01:03:40.700
And 90% of people will say they want to go into medicine to become a missionary doctor or to help
01:03:46.000
the poor or underserved in some capacity, if not full-time, as part of their job, as a part-time
01:03:52.460
co-career. I didn't realize it was that high. 90% of people starting out have some desire to serve
01:03:59.320
underserved, underprivileged people in some capacity. Exactly. They're not coming in saying,
01:04:03.860
I want to be an orthopedic knee surgeon and we need good orthopedic knee surgeons, but they come
01:04:08.060
in. Which you can still do in an underserved capacity. It was basically less than 10% of
01:04:12.220
people have a very clear sense in their mind that they want to do the most elite or whatever thing.
01:04:17.280
Yeah, they're coming in open-minded. They want to do some good. I mean, especially nowadays,
01:04:21.360
the millennials are coming in with this social justice mentality. I mean, when you interviewed for
01:04:26.540
med school, I said it. Let me ask you, how did you answer that question? Did you have?
01:04:30.320
I don't know that I was asked that explicitly. When I went to medical school, I wanted to be a
01:04:33.080
pediatric oncologist. And I had been sort of very moved by an experience that I had seen of a child
01:04:39.240
dying of leukemia, whose name I still remember when I was in college. It's funny. It's a funny
01:04:44.640
story, actually. I interviewed with a surgeon at Stanford, an ENT surgeon. And you sort of get this
01:04:50.100
random draw. Like you get a medical student that's going to interview you in three faculty. And I don't
01:04:54.200
remember who the other two faculty were, but this one guy interviewed me. He was sort of a big shot
01:04:59.040
ENT surgeon. And when he went down this path of, what do you want to do? And I said,
01:05:02.940
pediatric oncology. He spent the entire interview trying to talk me out of it.
01:05:08.260
He's like, what? What are you talking about? Do you have any idea how hard that is? I mean,
01:05:12.340
are you crazy? Like, are you a glutton for punishment? You want to watch kids die of cancer?
01:05:17.500
Let me tell you something, kid. You do not want to do that. All right. You want to be a surgeon.
01:05:21.740
You want to, and he just rattled off all these other things you would do,
01:05:24.500
but you do not under any circumstance want to go into pediatric oncology. And I was like, okay,
01:05:28.760
all right. It's impressive. I mean, first of all, that is probably the most admirable area of
01:05:37.060
medicine people can go into. I think pediatrics and psychiatry are probably the most impressive
01:05:42.300
and honorable subfields of medicine people go into. And of that, say cancer care in children,
01:05:50.300
But there is something to be said for what he pointed out that I couldn't appreciate at the time.
01:05:54.300
And so as much as I can mock that story, when you don't have kids, there's something you're
01:05:59.680
missing in that equation. I couldn't do pediatric oncology today if my life depended on it because
01:06:05.060
I think as a doctor, you're sort of always putting yourself a little bit in that person's shoes
01:06:11.080
that's sitting across from you. That's what empathy means. And if we're doing our job correctly,
01:06:15.700
we have to have empathy. So you have to be able to look at the world through their lens.
01:06:19.960
The problem is once you have children, you look at the parent of someone whose child you're taking
01:06:26.540
care of who has cancer. And I don't think I could do, I mean, I, now that I have kids, there are a lot
01:06:31.000
of things I could take in life, but losing a child, I don't think I could take. And so maybe he probably
01:06:35.860
had kids and maybe he understood without being able to articulate why, maybe he understood, are you
01:06:41.320
crazy? It takes a superhuman to do anything in that space. And I remember my time in this sort of
01:06:47.640
pediatric oncology world, as you said, it's a very special nurse, respiratory therapist, physical
01:06:52.440
therapist, physician, everyone who was involved in that care. That's a different cloth those people
01:06:58.680
are cut from. Yeah, it's very impressive. We take people when they come in with these very altruistic
01:07:05.180
goals in life. And you look at them fast forward, eight or 10 years later, and they're like different
01:07:13.520
people. They are, all of a sudden, we beat them down, we make them memorize and regurgitate the urea
01:07:20.000
cycle and the Krebs cycle 18 times, even though no one's ever needed to know the intermediary of the
01:07:25.760
Krebs cycle on the fly in the hospital, right? It's just this absurd, this entire medical education is just
01:07:31.860
so absurd. And I loved in the Price We Pay book, highlighting what's happening now with some of the
01:07:38.840
innovative education, Jefferson, for example, the dean there saying, we're going to hire based on empathy
01:07:44.380
and compassion and self awareness. And yeah, we'll teach you what you need to know, you'll know the
01:07:49.120
vocabulary, we're going to teach you the life skills that you need to know, we're going to teach you how
01:07:53.320
to communicate, how to find knowledge when you don't know it, how to be honest and say, I don't know, and
01:07:58.740
you need to say that. So I love learning about this new approach to education. But there's, there's this
01:08:04.240
thing that we've been doing where we take these highly creative and talented, altruistic people,
01:08:08.860
I mean, they look beautiful when they're in the lobby of the Ross building, waiting for their
01:08:13.940
interview, their hair is combed perfectly, they're wearing these suits or dresses that are just dressed
01:08:18.960
to the nine. And they say all the things that show that they are 100% in to help people. They're
01:08:25.940
mega athletes, they've run immunization programs in Nicaragua, right? They're the most creative,
01:08:31.120
beautiful, awesome souls in the world. And they come in. And then we beat them down with this urea
01:08:37.960
cycle, Krebs cycle, regurgitation treadmill. And in residency, don't ask questions and internalize all
01:08:44.380
this crap that you're going to see. That's stuff that isn't right. Is this still happening, though?
01:08:48.580
Oh, it's happening. I mean, I was just talking to one of our medical students about it. And they were
01:08:52.000
talking about how a lot of it's the accreditation boards and the examiners. These are not your
01:08:57.000
millennials writing the boards. These are folks saying you have to know how to refract somebody
01:09:01.760
for glasses, even though you're becoming a urologist. It's important information for you to know
01:09:06.540
ophthalmology. It's just territorial. So they come out and eight to 10 years later, look at them. Their
01:09:12.640
hair is all messed up. They're wearing pajamas. They don't have a business card. If you ask them,
01:09:16.560
where's your office? They say, I don't know. They feel humiliated, belittled, subjected to all this
01:09:22.020
beating. And we wonder why they feel entitled. And we wonder why they feel while they're doing
01:09:27.580
stuff they know they shouldn't be doing. We wonder why a doctor in a primary care clinic is giving out
01:09:33.060
antibiotics too frequently. Or 10 years ago, we prescribed as physicians in the United States,
01:09:39.220
2.4 billion prescriptions. Last year, it had hit 5.4 billion. Did disease double in the last 10 years?
01:09:46.080
No. We have a crisis of appropriateness. To memorize everything in medicine, it's pairs. Diagnosis,
01:09:50.780
treatment. Diagnosis, treatment. That's the only way you can memorize the thousands of things we have
01:09:54.800
to regurgitate. So you develop these reflexes. Gout is a condition where the big toe has pain at the
01:10:01.760
joint from crystals. You treat it with colchicine. And you memorize these pairs. And what you lose is
01:10:07.840
the sense of the threshold of treatment or the appropriateness of care. What comes out are these
01:10:13.300
doctors that are entitled sometimes, burnout. We beat them down. They're speaking a different language
0.99
01:10:18.460
that has its own value system. Now, this is not everybody. I mean, this is the sort of risk or
01:10:23.400
the hazard along the path. To me, I think of the exceptions. I think of Chris Sonnende. He's,
01:10:28.800
to me, the most special, one of the most special residents I ever knew. I don't know. I always
01:10:32.800
looked at Chris and thought, and Chris, by the way, is he's now running the transplant program at the
01:10:36.680
University of Michigan. But there was just something about that guy. Yeah. Emotionally vulnerable.
01:10:40.340
Yeah. And maintained his humanity under any circumstance. And always, I guess I've never
01:10:46.320
met a human in the context of medicine. And I've met some amazing people. But it's hard to say,
01:10:51.320
like, you've met one person who took everything that you would want to be able to do to the highest
01:10:55.940
level. Yeah. So I always wonder, why couldn't everybody, myself included, that is, be like Chris?
01:11:01.820
I mean, it's hard. I mean, you're one of the most disciplined people I've ever known in my life.
01:11:05.780
But it's hard not to get beaten down. Oh, man, I was so jaded. That's the beauty of someone like
01:11:10.960
Chris. And you never really got jaded either. I mean, you were also in this group of people who
01:11:15.760
just never, because you pointed this out yesterday when we were having dinner, it came up. It's like
01:11:20.020
most of us, when we become jaded, become sarcastic. That became our coping tool of,
01:11:26.840
we just became sort of snarky, sarcastic bastards. Coping tool. Yeah. Coping tool.
01:11:32.120
I mean, I remember my first day in the clinics in medical school, I was assigned a primary care
01:11:39.100
office. And I was working with a doc who's an internal medicine doc. I show up a little early,
01:11:44.860
and he says, the charts are in the door. Here's the schedule. Feel free to just go in and see the
01:11:50.440
patient. And I go in to see the first patient at eight o'clock. And there's a 15 minute slot. And
01:11:56.180
they're getting into all these deep issues. And they're asking me about medication interactions.
01:12:00.100
And I'm thinking, I think there's an interaction there. I got to look it up. And basically,
01:12:03.300
I leave the patient with, I'm going to get back to you. There's a lot of stuff here to unpack.
01:12:07.940
And then I go to the next patient at 8.15. And then the next patient at 8.30. And four patients
01:12:12.980
in the hour. And each one, I feel like I gave kind of a half bait. And it's like, this is insane.
01:12:18.080
And I stopped at nine o'clock. And I looked at the head doctor. And I said, I know I'm giving you
01:12:23.120
brief presentations here for a minute. You're going in for a minute. And then we're
01:12:26.620
treatment plan and a minute of documenting. And I get 10 minutes with the patient. By the way,
01:12:30.820
are we going like this till five o'clock? Because like, I'm dead. We're an hour into this. And this
01:12:37.220
is crazy. He's like, oh, yeah, yeah. And you do this every day? He's like, well, I do it four days
01:12:43.400
a week. And I have an administrative day. Like, how are you not going bananas? How would you possibly
01:12:49.800
manage this? He's like, well, you know, you get comfortable with certain diagnoses. The reality is,
01:12:55.020
show me somebody in America today who's practicing office-based high volume medicine who's not
01:13:01.240
burnout. I mean, it's probably, I don't know, 20, 30%. But you talk to folks, I was talking to an
01:13:06.760
editor of the New England Journal of Medicine at the Brigham when I was visiting. And we met and she
01:13:11.780
said, I just came back from clinic, endocrinology clinic. And I said, oh, how was it? And she's like,
01:13:17.420
I only do it one day every two weeks or something because I'm work for the New England Journal of
01:13:21.780
Medicine. But it's clear to me, everybody there is burnout. I'm like, how could you not be
01:13:28.180
I mean, what's the solution to this? We have a population that seems to be getting sicker,
01:13:31.840
and that's not medicine's fault. There's lots of blame you could point at maybe why we're getting
01:13:36.440
sicker. But there's no doubt about it. I mean, people are getting more and more sick with chronic
01:13:43.220
diseases. And they're going to come to the healthcare system to get cared for. Again, I don't have the
01:13:51.160
insight you do into what those volumes look like and to how many of those patients are being treated
01:13:55.880
as outpatients and things like that. But how do we take care of people? How is there enough time in
01:14:01.820
the day to have enough doctors to take care of these folks? Because what you described sounds
01:14:06.780
horrible. I can't imagine if I only had 15 minutes to see a patient. I get angry at my office staff if
01:14:13.200
they give me less than two-hour blocks between patients. Once in a while, they'll stack them one hour
01:14:19.220
apart and I'll get upset. I'll be like, guys, are you joking? We have to spend the first 30 minutes
01:14:24.240
just catching up before we even talk about the lab. So what you're describing seems so foreign to me.
01:14:29.900
But at the same time, I'm empathetic because I realize that's the nature of patient volume. So
01:14:35.200
how does one fix this? By the way, it's horrible on both ends. Patients don't like it either.
01:14:39.820
What I've discovered is doctors were able... So first of all, I personally believe that doctors are not
01:14:45.980
lazy people. We just don't want to spend our time on things that don't matter. And there's an
01:14:51.160
incredible amount of shit that's just been thrown at doctors in the last several years that has
01:14:56.240
nothing to do with patient care. And I know you've talked about some of that in some of your other
01:15:00.120
episodes. But the most exciting thing, and I'll tell you, in writing about these issues,
01:15:05.060
be it medical education or pricing failures or overtreatment or primary care, in the book,
01:15:09.800
The Price We Pay, one thing I wanted to do is balance every problem with a solution or exciting
01:15:15.860
disruptor. Because right now, I am so optimistic and up on the future of healthcare. So many cool
01:15:20.580
things are happening. They're mostly the young folks, mostly people that have very little tolerance
01:15:24.580
for BS. The globally capitated primary care clinics are freaking awesome.
0.99
01:15:30.140
Okay. So let's explain to people what all of those words mean and start with what does capitated mean?
01:15:34.540
So basically, there's no billing going on because globally capitated means that the clinic
01:15:39.580
as a whole, the organization is getting paid a lump sum amount of money. So they don't have to
01:15:45.160
worry about billing for every little thing. And they can spend as much time as they want with
01:15:49.640
patients because they are evaluated by the outcomes of those patients long term, what percent of their
01:15:55.820
patients use an emergency room multiple times or get readmitted to a hospital after discharge or
01:16:01.680
the rates of certain health complications in a population long term. There's an exciting one in
01:16:08.300
Florida called Chen Med. And the Chen family is an incredible group of doctors, a father and two
01:16:13.600
sons, both of whom are primary care physicians. And they have made a deal with insurance and employers
01:16:20.220
where they've said, look, pay us a lump sum for the entire journey of care of your beneficiaries,
01:16:26.980
your population, your employees, and we will assume the downstream risk. And if you do enough,
01:16:32.600
if you have enough patients, you can assume that risk.
01:16:34.720
So if your patient goes on to surgery, it's sort of counted, that money is sort of counted against the
01:16:40.200
amount that you've been allocated for that patient. So what it's done is it's created this incredible
01:16:46.280
incentive because the primary care physician assumes and takes the downstream financial burden of the
01:16:53.480
care. It creates this incredible alignment of incentives long term to do what's in the best
01:16:59.440
interest of the patient. And docs know what's in the best interest of the patient. It's exactly what
01:17:03.520
you're doing. It's spending time. It's being able to go to the home or send somebody to the home.
01:17:09.000
And they hire these patient navigators. At least IORAC does this. And the navigators will visit the
01:17:16.080
home to figure out why aren't they taking their medications or what's in their refrigerator or what
01:17:21.660
do they want to talk about or what's their activity challenge here.
01:17:25.420
But this is different. The only example that people would think of today on a massive scale of
01:17:29.360
capitation would be Kaiser Permanente if you're on the West Coast. Is there any other large capitated
01:17:34.940
I'm a big fan of Oak Street, Iora, ChenMed. There's the Magento Clinics.
01:17:40.240
These are smaller. They're probably doing much more than what one of these huge cap systems are
01:17:46.900
Is there a critical mass at which, from an actuarial standpoint, to manage risk, you have to have a
01:17:52.820
certain number of patients in a pool to justify what, for example, the Chen family are doing? Because
01:17:57.440
if I'm putting my sort of risk mitigation hat on, that's a dangerous proposition for the physician.
01:18:03.900
They could get wiped out. If you have a small enough pool, one bad outcome, which can be entirely
01:18:09.760
out of your hands, patients walking down the street, they get hit by a car, or patient gets cancer.
01:18:14.900
This is going to happen despite all of your best efforts in prevention. If that counts against
01:18:18.940
your cap, you're done. Do you need 1,000 patients at a minimum to be able to-
01:18:23.200
500 has been the number that's been floated out there in the actuarial science for when it's
01:18:28.880
worthwhile to self-fund a population. In other words, if you're Apple and you've got giant cash
01:18:34.960
reserves, why do you need insurance? You can just process the bills yourself. With a 3% overhead,
01:18:41.220
you hire like a bill claims processing company.
01:18:44.980
So right now, Apple, I don't know who their ASO is, but Apple goes to Blue Shield and says,
01:18:51.020
we're going to pay you X dollars to administratively manage, but we manage the risk.
01:18:56.040
We hold the risk. We are paying for the cost. And what does that work out to? Maybe you don't
01:19:02.780
know Apple's numbers, but if you'd pick a company that for whom you know the data, what is the
01:19:06.640
cost per life that is typically paid for by a large employer in the United States today?
01:19:12.320
Average, it might be $7,000. And with there being a financial benefit to self-funding or what we call
01:19:19.460
self-insuring, it's usually just below that once you self-fund. So at the point of 500 employees or
01:19:25.500
more, the vast majority of businesses in the United States have recently moved to self-funding.
01:19:32.240
This seems crazy. Obviously, my company is very small, so we're not self-insured. We pay
01:19:40.840
an insurance company to take the risk. We pay way more than $7,000 per person per year.
01:19:47.620
Yeah. Traditional insurance usually is more expensive. Now it's regional and it's based
01:19:52.120
on the age of the employees and whether or not families are covered. But per person,
01:19:57.200
that's generally the average expenditure in a self-funded plan. Now there's many variations.
01:20:02.840
So a lot of businesses, let's say a business of your size might say, we're going to take out stop
01:20:07.000
loss coverage. So if anybody gets one of these giant bills over $100,000, that stop loss plan will kick
01:20:13.420
in. There's 21 stop loss insurance companies in the US. They sell across state lines. It's very
01:20:18.580
competitive. It works beautifully. And businesses are saying, look, we'll assume the first $100,000 of risk.
01:20:24.580
A lot of businesses can afford that risk, especially if they're saving money on the front end.
01:20:29.480
And if they have a large enough patient population that they can spread that risk out.
01:20:32.480
Yeah, exactly. This is the future of healthcare and what's happening pretty soon. And the reason
01:20:37.540
I'm so excited about healthcare is that doctors, primary care doctors are saying, let me help you.
01:20:42.580
Let me move in. I want to be the doc for your company. I want to go over the occupational hazards
01:20:47.580
on the factory assembly line. I want to talk about prevention and doing stuff immediately so that
01:20:53.440
patients don't need to go to the emergency room. They can come to me for urgent care,
01:20:57.240
then I'll sort of figure out. And the utilization is down, the costs are down. Because if there's
01:21:01.080
one story of a modern American medicine, it's that price gouging has become an accepted way
01:21:05.680
of doing business in certain pockets of healthcare. And as a business, you're very vulnerable.
01:21:10.840
Okay. So now I want to dive into this quickly, but to do it, we have to set the stage for
01:21:15.340
the listener. So I want to tell a story and then I want to talk some numbers. Here's the story.
01:21:19.800
When I left medicine, the first thing I went and did is worked at a consulting firm. And what I got
01:21:23.860
involved in just based on my background was on credit risk. When I left medicine, I really left
01:21:28.100
medicine. So I'm now a model spreadsheet jockey, and we're working on something called the Basel II
01:21:33.840
Accord, which then turned into two years leading up to the mortgage meltdown. I was part of a team that
01:21:41.120
was basically now in the business of predicting how bad that was going to be. And then once it became
01:21:48.040
clear, it was going to be a catastrophe, figuring out how would you stem that tide. By the end of
01:21:54.340
two years of that stuff, I actually understood pretty much everything one could understand about
01:21:59.560
mortgage backed securities and all of the ridiculous financial tools that were very eloquently
01:22:07.380
described in the movie, the big short. Yeah. Now, look, you can watch the big short and in two hours,
01:22:11.440
I think understand frankly, 70% of it, but I spent two years knee deep in it. And I understand 95%
01:22:17.900
of it by the end of it. If you gave me another three years and said, Peter, I want you to devote
01:22:22.780
yourself to this study of the U S healthcare system. And at the end of that three years,
01:22:27.800
I want you to explain it to me as clearly as you could today, explain to me how mortgages work,
01:22:32.880
how they're securitized, packaged credit default swaps, all of these things, and how it led to a
01:22:38.020
calamity. I wouldn't be able to do it. And I can tell you this because over the past 10 years,
01:22:43.140
I have tried to understand it over the past 13 years, actually. And I can't even fully give you
01:22:50.620
the profit and loss statement of the U S healthcare system. Now, I don't think I'm the smartest guy in
01:22:55.500
the world, but I'm also not the dumbest guy in the world. And that drives me bananas that all I see is
01:23:01.760
a black box for which over $3 trillion goes in and $3 trillion gets pulled out. I don't understand
01:23:11.780
how we can fix something when most people can't even wrap their heads around what's happening.
01:23:19.040
It's incredibly frustrating, especially when you master a certain domain of medicine to be able to
01:23:25.220
have no understanding about this gigantic industry that you're in the midst of people came up to
01:23:32.380
doctors all the time during the health reform debates and said, what do you think? And the
01:23:36.720
reality is, have we ever really talked about how we finance health insurance or whether or not Dr.
01:23:42.680
Pay gets pulled out of nursing home payment allocations. We've basically been focused on two issues
01:23:49.120
in terms of our doctors groups, Dr. Pay and malpractice reform, which is a whole nother
01:23:55.680
subject. The big short beautifully explained that no, it's not a credit default swap. It's so
01:24:03.420
complicated that nobody can understand. Leave it to us experts. It's actually pretty simple. It's just a
01:24:08.580
way around insurance to do that. It's spending money you don't have. And so what I wanted to do is in
01:24:15.620
the book, The Price We Pay, create the big short for healthcare to explain things in a way that are
01:24:22.680
understandable, relatable, and that touch on every area of healthcare. And basically, because there is
01:24:28.980
no silver bullet in healthcare, as you're alluding to, it requires a brief moment understanding
01:24:36.480
pricing failures, a moment understanding the overtreatment crisis that we've created,
01:24:42.580
and a moment understanding middlemen and administrative waste. And if we can tackle each
01:24:48.640
of those subjects in one book in a way that people can walk away and say, oh, now I understand
01:24:53.520
how a PBM or a pharmacy benefit manager works. I try to give an example explaining it like somebody
01:25:00.800
selling Girl Scout cookies and how the money flows.
01:25:03.480
All right. So use that example because PBMs, I think, I mean, it took me two years to understand
01:25:07.760
what a PBM did. Again, I might not be the sharpest tool in the shed.
0.68
01:25:12.900
It annoys me that it took me two years to actually understand how PBMs worked. So explain it using
01:25:18.440
So let's say that a mom comes to your business and says, I'd like to be the exclusive seller and
01:25:25.740
provider of Girl Scout cookies to your employees. You say, okay, that sounds good. I don't really know
01:25:31.660
what Girl Scout cookies cost. But yeah, I'd like the idea of all my employees having Girl Scout cookies.
01:25:36.960
So this mom then brings in a bunch of kids who sell Girl Scout cookies to the employees and the
0.99
01:25:43.760
employees walk up and say, oh, how much is a box? Well, which company do you work for? I work for
01:25:49.040
this company. Okay. Then you just have to pay $3.
01:25:52.720
Oh, because this mom sells Girl Scout cookies to many companies. She's the exclusive provider of
0.78
01:25:59.420
Yeah, but that's not why it costs $3. It costs $3 because that's just the co-pay of what the
01:26:05.360
employee's paying for the box. The mom then charges the employer $50 per box as the benefit. The
0.85
01:26:13.600
employer is saying, oh, great. Thank you for providing Girl Scout cookies to my employees.
01:26:17.980
You have $50 a box. I don't really know what they go for. Well, they go for $5. Sometimes in the real
01:26:25.320
pharmacy benefit world, the employer is paying $6 a box of Girl Scout cookies, which covers the entire
01:26:32.400
cost and some profit. And then they're still billing the employer $40. Now you would think
01:26:37.660
the employers would say, this is complete bullshit. I know what you're up to. I know those boxes are $5
01:26:43.140
a box. You're gouging me. Screw this. I'm going to get another pharmacy benefit manager. I believe in
01:26:50.140
competition. I want to put it out for bid. The problem is employers cannot understand the names of
01:26:57.080
the drugs and the generic substitutes and the biosimilars and the bioequivalents and the
01:27:02.500
different dosing schedules and the different frequencies. So they literally get a report at
01:27:08.780
the end of a year with, say, let's say you have 1,000 employees of 4,000 medications that you paid
01:27:15.900
for as a self-funded or self-insured business. Right. Which is different from saying there's chocolate
01:27:21.260
chip, there's Oreo cream, there's vanilla mint, or, you know, I'm making up with cookies. It's easier
01:27:27.300
because there's only like 10 flavors. Right. You can understand that market value. When you're doing
01:27:32.300
it with medications, there are so many games. It's so hard to understand. I've talked to employers
01:27:37.120
when doing the research for the price we pay that they get these reports and they're like, I don't know
01:27:41.480
what the hell I'm spending money on. I can't understand this. And the brokers or the PBMs say, look,
01:27:48.420
you're getting bulk discounts. OK, you're getting a 15 percent discount. And the employers, they look
01:27:55.880
at these shiny objects and think, OK, well, I guess. And then there are all sorts of money games
01:28:00.400
that they added on. Now, providing pharmacy benefits is a valuable service. I believe
01:28:06.340
businesses should make a profit. So they should make a profit for the service. But what they've done
01:28:10.780
is played a massive shell game with things that nobody can understand. Sometimes the pharmacists
01:28:15.080
themselves can't understand. Why when you pay out of pocket, when you go to GoodRx, which is one of
01:28:20.420
the apps I recommend people use when they need a prescription, go to GoodRx and they'll tell you
01:28:25.180
what the price of that drug is in all the places near you. Why is it that that price is often below
01:28:30.720
what your employer is being charged? And it's sometimes even below what your copay would be.
01:28:35.540
Yeah, I did this actually recently. I had to pick something up. And so I'm a big fan of GoodRx
01:28:41.120
as well. We should make sure everybody knows to use that. I'm actually friends with the guy who
01:28:44.580
built the app. So I looked up what 30 day supply of this drug would cost if I went to buy it in cash
01:28:50.120
because I've been I'm so annoyed with how high my insurance premiums are. I keep saying to myself,
01:28:55.120
why do I have health insurance? Like, I'm not even sure I know anymore because the copays we get stuck
01:29:00.380
with. I was telling you last night, I mean, I got an ambulance bill for $15,000 or something. It's
01:29:05.540
just ridiculous. So I noticed that the cash price of 30 days of this drug was $227. It was fine. So I
01:29:14.980
went to the pharmacy and I'd already paid for it with my insurance. So my copay was $30. But when I
01:29:21.040
looked at the slip, I saw that my insurance company was charged almost $1,000. So there's a bit of a
01:29:27.440
disconnect here. My insurance company, who's charging me a premium to take care of my family that is,
01:29:33.380
I think, beyond absurd, is getting gouged. They just paid $970 for something that if I didn't
01:29:42.840
have insurance, I would have paid $200 for. How does that happen? So one thing that has come up
01:29:49.020
in the recent case of the insurance executive who got charged $70,000 for a hip replacement,
01:29:56.980
even though Medicare would pay $20,000 and the benchmark blue book price is $28,000 or $29,000,
01:30:05.080
how did he get charged $70,000? Now, he didn't get charged directly. He was responsible for
01:30:10.240
something like 20%, a 20% of that amount. He's an insurance executive or leader in the field of
01:30:16.920
insurance actuarial science. And he basically said, who the heck negotiated this rate? It wasn't a
01:30:23.320
sticker price. It was the negotiated price between his insurance company and one of the big hospitals
01:30:28.960
in New York. Why wouldn't they negotiate a better rate? And the article basically suggested that it's
01:30:35.640
not necessarily in the financial interests of all insurance companies in all areas to really
01:30:40.480
negotiate the best rate. Why? Well, for a couple of reasons. One, there's something called the medical
01:30:44.960
loss ratio or the MLR that was instated with the Affordable Care Act that said that insurance companies
01:30:49.760
can basically only have a profit, if you will, of 20%. That is, 80% of all the money they take in for
01:30:57.040
insurance premiums has to be paid out as claims payouts. I mean, I understand that and I applaud the
01:31:04.260
idea behind that. But to say that, well, let's just be completely wasteful with the resources to make sure
01:31:11.420
we hit our MLR is crazy. Why not instead say, if you blow through your MLR, let's say your profit margin
01:31:17.600
is 40% instead of 20%, just apply the extra 20% to next year's premium reduction? Well, if you can
01:31:24.700
only make 20% of the premiums as profit, how do you make more profit the next year? Organizations
01:31:30.920
like to make profit. You build in, you almost want more payouts and then build it into your premiums for
01:31:38.100
next year. So the more they pay out, the more they can say, well, premiums are going up 12% next year.
01:31:43.140
That gives them more money. I see. So you're saying they want to drive revenue as high as
01:31:48.180
possible because they're only allowed to keep 20% of gross. Exactly. The higher the gross,
01:31:54.300
the higher the profit. Yeah. Now I don't think I know a lot of insurance executives. I don't think
01:31:58.620
they're diabolical people. I have really asked how intentional is this or passive is it? And I've
01:32:04.660
heard it's mixed. Some insurance markets are very competitive, but this was in New York City,
01:32:09.140
one of the big hospitals charging 70 grand. So the insurance companies may not be your fiduciary,
01:32:15.560
your independent. And if I can just take an aside for one second, one of my biggest frustrations is
01:32:21.360
the lexicon or the language that we all use. Oh, not to criticize you, but I do this also. You've
01:32:27.200
referred to my insurance company paid that amount. Well, actually you paid that amount in your insurance
01:32:34.520
premiums. Oh, my employer paid the rest. Well, guess what? That's from the same pool of money of
01:32:39.300
wages and benefits that you would otherwise get a raise from. So this lexicon of, oh, my,
01:32:45.160
the government paid. Well, we're paying what? A 7.5% Medicare excise tax on your end. And then if
01:32:51.840
you're self-employed, double that, you're paying 15% Medicare excise tax because otherwise the employer
01:32:57.720
is paying. Well, you're paying. It's the same pool. Oh, the government paid. Oh, Medicare paid. Oh,
01:33:02.120
the insurance company paid. Oh, my employer paid. No, no. You pay. The joke is on us, right? You've
01:33:07.220
paid in so many different ways. People say that healthcare is now 18% of the GDP and it may be as
01:33:14.700
high as 16% of our federal expenditure, all of our tax dollars. In Massachusetts, guess what percent of
01:33:22.820
all the state dollars go towards healthcare? 43%. I was going to guess 25. 43%. I just met with one of
01:33:30.580
the recent legislators in Florida who's now in D.C. working with us on price transparency advocacy,
01:33:36.740
43%. So people think, okay, 16% of the federal expenditure. Well, guess what? Guess where people
01:33:42.240
are spending their social security checks? They're increasingly spending on those co-pays and
01:33:47.160
deductibles. Is our health-related costs still the leading cause of personal bankruptcy? Yeah,
01:33:52.780
it's the number one cause of personal bankruptcy. And FICA score is getting ruined. And now,
01:33:58.700
tragically, one in five Americans has medical debt in collections. What?
01:34:05.120
One in five Americans has medical debt in collections. And that seems, I mean, not saying
01:34:10.620
I don't believe you, that just seems hard to imagine. FICA scores are getting ruined. People
01:34:16.560
are paying more for their mortgages because they had a surprise bill that was unpaid. People are getting
01:34:21.760
hammered out there. And when we hear that healthcare was the number one issue in the midterm elections,
01:34:27.120
it's really medical bills. People are angry. They feel they have no recourse. In some cases,
01:34:33.240
I discovered in the book, the hospitals take the patients to court and garnish their minimum wage
01:34:38.600
or paycheck. There's a court in Virginia, an hour south of my house, where if you don't pay your bill
01:34:44.560
to that community hospital, they will take you to court within months, garnish your wages. And if you
01:34:49.940
don't have a job where you prefer not to have your wages garnished, the court will ask for your ABA
01:34:54.560
number and your routing number and your bank account number. And the money will just get pulled
01:34:59.740
right out of your savings from the hospital. Now these are- Is this hospital a for-profit or
01:35:04.420
not-for-profit? It's a not-for-profit. It's a not-for-profit. And the for-profit, HCA has a
01:35:10.340
hospital in town and they behave. They stay true to the mission of medicine. They don't shake people
01:35:16.240
down that are poor. I mean, you can shake down, look, a rich person who had plastic surgery and
01:35:22.140
didn't pay their bill. I got no problem with you suing the socks off of that person.
01:35:25.740
But that doesn't even happen because you pay up front for all of that stuff anyway, don't you?
01:35:30.600
That's a non-issue. But these are low-income, these are poor people who work and have health
01:35:36.200
insurance. They've done nothing wrong. They've showed up to work. They work hard. I've met several
01:35:41.760
of them who are single moms. I was in New Mexico visiting a hospital for the book I profile in,
01:35:50.860
for the hospital I profile in the book We Price We Pay, where the hospital has sued half the town
01:35:56.220
in New Mexico. The town only has like 28,000 people in it. They've sued half the town. The
01:36:00.680
courthouse, when I walk in there, the clerk says, that's all we're dealing with here is hospital
01:36:05.160
lawsuits. I said, what percent of your civil cases in this courthouse, in this town, is the hospital
01:36:10.620
suing patients to garnish their wages. So very low-income, blue-collar towns, an oil town,
01:36:15.780
mostly oil workers. And they said, oh, it's 95% of what we deal with. I said, how many in a day
01:36:21.280
will you get? Oh, we could get 10 or 20 lawsuits in a day from the hospital. It's almost become like
01:36:27.140
the court is now their collections department. And one woman, her car was in the shop for repairs.
01:36:34.500
It cost 800 bucks. She didn't have the 800 bucks to get it out of the shop. And then she gets hammered
0.97
01:36:39.060
with a $4,000 bill for taking her kid in for an asthma treatment that took 45 minutes.
01:36:44.260
People are getting hammered out there. And what we're saying, and what I'm trying to use this
01:36:49.140
incredible platform that God's given me as a surgeon at Johns Hopkins is to say,
01:36:54.660
this is not our heritage. This is not our profession. We have this incredible public trust.
01:37:03.720
I mean, just to take a step back from this, I don't think anybody listening to this right now
01:37:08.020
thinks what you're describing is cool. I mean, this is totally unacceptable. The doctors think
01:37:13.380
it's unacceptable. The patients think it's unacceptable, but the doctors and the patients
01:37:18.320
aren't the ones that are making it happen. So you've got now two groups who are finding this
01:37:23.380
unacceptable. One, because they're the ones actually getting gouged. That's the patient. And of
01:37:27.040
course, and the physician who's saying, wait a minute, this just doesn't even seem right on first
01:37:31.220
principles. But how do we do anything about it? I mean, it's very frustrating because I grew up in
01:37:37.460
Canada. I think it's totally overblown when people in the United States romanticize Canada. Let me
01:37:41.880
tell you something. Canada does not have a perfect healthcare system. So any of you listening to this
01:37:45.240
who think, oh, we should just be like Canada, be careful what you wish for. Because I could tell you
01:37:49.240
57 horror stories of what it's like to be a patient in Canada who tears their ACL and has to wait
01:37:56.540
seven freaking months to get an MRI to confirm a diagnosis. And if you want to do anything else
01:38:02.740
about it, good. Drive to Buffalo and pay out a pocket for your MRI and join the price gouging
01:38:07.380
south of the border. So Canada is not a panacea either, but there is something in Canada and the UK
01:38:13.980
and in other single payer systems that just makes sense. And it is the following. It is a budget,
01:38:21.160
not a demand driven system. And a single payer always owns the risk for life. Those are, in my
01:38:28.940
humble opinion, two things that are sorely lacking here. I'll explain what those mean. I know you
01:38:33.720
understand what that means. In the UK, the NHS has a budget. The budget determines how much they're
01:38:39.420
going to spend on healthcare that year. In the United States, we have a demand driven system. You can
01:38:44.920
predict what we're going to spend next year on healthcare, but the reality of it is demand
01:38:49.780
determines how much we'll get spent. The demand is set by the patient and the provider. A lot of the
01:38:57.300
stuff you talk about, the over-treatment, the unnecessary treatment. I want to dive into that,
01:39:02.240
by the way, because there's so many interesting ideas there. The second thing is, I think I'm
01:39:06.380
blue shield right now as my insurance company, but tomorrow, next time there's an open enrollment,
01:39:10.200
I could switch and join Aetna. And then I could decide a year later, no, I want to go back and do
01:39:14.740
United. I think there are probably stats on this that would suggest that the average
01:39:19.440
tenure of an individual with a given payer is probably less than four years. So you have
01:39:26.980
this portability of risk. So if I'm in charge of Marty's risk, but I know that I've only got
01:39:34.660
Marty's life for three years, what incentive do I have? Let's say you were just diagnosed with type
01:39:40.640
two diabetes today. I know that in 40 years, I know that in 20 years, you are going to be a nightmare
01:39:48.160
for me to manage from a cost perspective, your amputations, your cost of insulin, because even
01:39:54.280
though you're not on insulin today, you're going to be on insulin then. And the cost of insulin is
01:39:58.020
another, one of the greatest scams in the history of civilization. But in the next three years,
01:40:02.960
are you really going to cost me that much? Nah. So I don't have any incentive to do what you
01:40:07.520
described in the capitated system. I don't own your risk for long enough. Whereas in a single
01:40:12.500
payer system, guess what? I own your risk forever. So I actually have an incentive to do something
01:40:16.320
about it. So I think it's that coupled with this demand driven system that has created
01:40:20.660
something broken. And then notwithstanding what you just said, which is we don't have universal
01:40:25.860
coverage. And I know that's such a politically charged topic. And I realized that in saying that
01:40:30.800
you just take 50% of the population and you piss them off for saying we should have some
0.94
01:40:35.500
universal coverage. But what do the polls actually say? I mean, I know this is such a political
01:40:41.520
topic, which I don't understand why this is a political topic. Like to me, save the political
01:40:47.900
topics for things that are political. Like, but what is the public's opposition to some form of
01:40:53.100
universal care, at least to cover sort of primary care or some sort of basic expense? Like why is
01:40:57.940
someone who makes $28,000 a year and has health insurance ever getting a bill for $4,000? What's the
01:41:07.240
morality behind that? And when people understand that fact, how many of them still oppose a net that
01:41:15.300
You're absolutely right that there's has not been a traditional financial incentive to reduce long term
01:41:21.900
health complications and utilization because I even had don't laugh, but I had one insurance
01:41:28.300
executive actually tell me, actually, if we do some things that reduce long term complications,
01:41:33.500
we're actually saving money for our competitors. Now, he didn't because he's basically acknowledging
01:41:38.900
that whatever we do today, our competitors will reap the benefit of because four years from now,
01:41:46.500
Yeah, this patient is going to be with a different carrier for sure. In five years, with rare exceptions,
01:41:51.380
people just switch jobs, they switch plans. He was being very honest with me. And I have this
01:41:56.260
great relationship with insurance executives and hospital executives where they're saying,
01:42:00.280
Marty, you're right about these issues, but I want to do something about it. So he's being honest,
01:42:04.880
and he's not saying I deliberately do not want to invest in long term health because I could save
01:42:10.860
my competitors money. It's just there's no real reward financially to accompany the goodwill that we
01:42:17.180
all have that we want what's best for patients. So that's what I love about these,
01:42:20.740
what I call globally capitated primary care that have lives for the long haul. And they're doing
01:42:25.320
incredible things. And if you're a business, sign up with Iora Chen Med Oak Street, one of these
01:42:30.020
globally capitated primary care, or get some of these local primary care practices are pooling together
01:42:35.180
and saying, we want to go to the local business and we want to work with them. GM just signed a big
01:42:40.100
contract with Henry Ford Health System direct employer contract. I've helped some businesses do these
01:42:45.480
deals just sort of free service to I love it. It's the most exciting thing going on right now.
01:42:51.020
But I think the reason why the outrage has been suppressed is just like we saw with the mortgage
01:42:58.100
crisis and the financial collapse of 2008. People just don't understand what's happening. And the money
01:43:04.460
games have sort of been flipped around. So for example, if a business gets a higher insurance premium
01:43:10.300
rate for next year, they'll tell their broker, this is crazy, 11% increase in one year, they'll say,
01:43:17.400
well, the cost of drugs and the cost of the reality is, it's more the intermediaries, it's the money
01:43:22.860
games. I have met a couple independent brokers, these brokers in the business routinely and almost always
01:43:31.900
get paid a giant kickback from the insurance company or the pharmacy benefit manager for sticking
01:43:38.940
an employer with one of their plants. And it's hard to watch, you realize why people are paying too
01:43:44.600
much. Sometimes they're not given the best options. I profile it in the price we pay businesses that
01:43:49.400
said, no, no, I want another broker, I want an independent broker. And they just immediately save
01:43:54.880
half a million dollars or a million dollars. And businesses all over America are getting ripped
01:43:59.380
off right now on their health insurance and on their pharmacy benefit manager.
01:44:02.780
So these brokers are not legally required to be fiduciaries?
01:44:09.440
So it's worse than real estate. In real estate, you know your agent's not a fiduciary, but at least
01:44:13.300
you know, at least you have transparency into what their commission is.
01:44:17.080
It is worse. And it's, at least in real estate, you know there's a 6% commission. In this world of
01:44:22.760
selling health insurance, which by the way, I've not met a doctor in America who knows how
01:44:27.000
healthcare is sold in America to businesses. This is sort of, when we were memorizing the
01:44:32.320
Krebs cycle 12 times, how about substitute one of those 12 times for a quick lesson on how
01:44:38.440
healthcare services are bought and sold on a grid like energy. These brokers get a, say in New York,
01:44:44.500
it's a standard 4% commission of every premium dollar the business will spend on healthcare. It goes to
01:44:50.260
that broker who cut the initial one-time deal. They placed you... So imagine you're a real estate
01:44:55.440
agent getting 5% for life. You're paying every year. It's a one-time cost, so it's not really a good
01:45:01.100
example. But every year a business pays a million dollars, 4% goes to the broker who cut the deal.
01:45:06.960
It'd be like a rental agent. Wait, wait, wait. You mean if you cut the deal in 2019 and the employer
01:45:12.760
keeps going with that same deal, you continue to get your commission on the tail?
01:45:16.900
Yeah, 4%. In New York, it's regulated. Some places it's a little competitive, but generally,
01:45:24.220
So let me ask a question. What is the... If you use the word single payer, half the country loses
01:45:29.480
their mind, you might as well say, we want to resurrect Stalin and put him in the White House.
0.85
01:45:35.500
Like it is such anathema to our existence. I don't know that a single payer fixes a lot of problems,
01:45:41.360
but it fixes this problem. Yeah, it fixes this problem.
01:45:44.280
So question one, why are we so morally opposed to a single payer system? And I'm not sure I would
01:45:50.300
like it, by the way, because when I see the single payer system in Canada, I can point out all of the
01:45:54.840
flaws. And two, is there a hybrid where you can get some benefits of single payer? Because almost
01:46:01.500
everything I've heard you say so far is a cost center because of the complexity of negotiation.
01:46:09.880
And so if you took out that complexity, you would eliminate the need for a broker. Why do you need
01:46:14.860
a broker? I don't need a broker when I buy underwear. Why? Because underwear are freaking
01:46:19.560
easy to buy. And I can price shop myself. I mean, most things in my life I don't need a broker for
01:46:25.460
because they're easy to buy. I mean, the issue here is you need brokers for things that are really
01:46:31.120
complicated to buy. And I don't think there's anything... I don't think this is an exaggeration.
01:46:37.020
I don't think there's anything more complicated to buy than health insurance.
01:46:40.500
I want to answer your question about the Medicare for all issue that's coming up. But real quickly,
01:46:44.780
by the way, the brokers don't like this either. Okay, they went into this thinking,
01:46:48.380
oh, I'm going to do something good in society. I'm going to work in healthcare. I'm going to help
01:46:52.540
businesses and guide them. Then they find themselves in these traps where they're getting
01:46:57.300
these cash flow streams, these retention bonuses, these threats from insurance companies.
01:47:02.320
I profile in the book a guy who basically got fired as a broker, if you will. They closed all books of
01:47:08.400
business with him because he suggested to an employer they could get a better deal somewhere else.
01:47:13.560
And it was one of the big Blue Cross Blue Shield plans. They said, screw you.
01:47:17.180
They wrote him this nasty letter. They trash talked to him. They closed all his books of
01:47:20.880
business. So all of his lines of revenue, all his steady commissions and the bonuses on top of that
01:47:25.900
all got shut down. That's catastrophic if you're a broker. They don't like living like that. They
01:47:30.780
know. I went to a broker conference and I started talking to them and they just start saying, look,
01:47:36.420
this shouldn't be. This is a dirty secret in the business. We don't even like it. Write about this.
01:47:41.880
They gave me these stories and these spreads. But the Medicare for all thing, real quick, right now
01:47:47.080
it's polling very high. The American public is very, very much liking the idea of Medicare for all.
01:47:54.240
The Democrats are running with it. As you know, I work with both Democrats and Republicans in the
01:47:58.240
government. I brief, I advise, I try to be as independent as possible. Medicare for all is very
01:48:03.360
appealing because all of these money games in this mirage and shell game all disappear with a direct
01:48:10.620
Medicare for all system. Has anyone done, is there an independent think tank that's done the actual
01:48:15.580
analysis and said, look, right off the top, you're going to save 8% of $3 trillion if you do that. Is
01:48:23.160
there a sense of what the benefit is of making that type of a change?
01:48:26.520
My research team's estimated that you save 15% right off the top.
01:48:31.160
Immediately. Immediately. Not even over time. And no journal's interested in publishing that.
01:48:36.980
It's not a randomized controlled trial, but it's the biggest issue facing America, right?
01:48:40.800
Now, here's the issue I have with switching over to this single payer Medicare for all system,
01:48:47.160
is that over time, historically, governments have shown 100% of the time,
01:48:53.520
they cannot resist the temptation to make across the board cutbacks on healthcare. We've done it in
01:49:00.940
Medicare as a country. And so you go 10 or 20 years, sure, you've cut all this waste initially,
01:49:06.720
but politicians, governments, political will, they cannot resist the urge to just dial down,
01:49:12.680
dial down their spending on healthcare. And then you're left with these dilapidated systems in parts
01:49:17.480
of the UK or other countries where their spending on healthcare is just so weak that when they're
01:49:23.500
doctors, like in England, went on strike, the government's kind of like, well, you guys are
01:49:27.860
civil servants, suck it up. And that's what I worry. And if we can accomplish these incredible
01:49:33.580
efficiencies in the market to cut the waste, I mean, I've seen estimates that as much as 50%
01:49:39.480
of our healthcare spending is wasted. And if you look at the amount we spend per beneficiary,
01:49:44.480
we're more than double what some countries are. The average person in the United States
01:49:48.940
might have a total health spend of $12,000 per year on average. That's not self-funded. It's
01:49:54.800
not your part. It's the overall expenditure. We are way, way over the curve. And we didn't spend
01:50:00.920
this money growing up. When we showed up to the emergency room with a cut, you might've seen a
01:50:04.900
bill for a hundred bucks, but insurance always took care of it. Now there's a woman who was charged for
1.00
01:50:10.160
just checking into the ER. She left before she went back into the emergency room and she got this big
01:50:16.180
bill for like 1200 bucks. I mean, the pricing failures have really hurt. So I'd like the idea
01:50:21.820
of cutting out the waste, but I think if we can do it through free market competition,
01:50:27.140
then it's much better for the longterm. So, so Marty, the flip side of there's
01:50:31.780
advantage to a single payer system because you could cut out all of the machinery that's necessary
01:50:38.440
to make a market understandable. The flip side is, but a free market works better. And I think
01:50:46.100
that's generally true. I mean, it's hard to argue that capitalism works. It's hard to argue that
01:50:52.000
it's the least bad option, maybe to put it mildly. It's hard to argue that competition is not a good
01:50:57.840
thing. So what's the argument that says, no, no, no, no, no, no, no. A single payer system is a
01:51:02.740
disaster. We want to stay with this sort of system that has multiple different competitors across
01:51:09.800
every spectrum from hospital systems to that are each competing to do the best to payers to PBMs to
01:51:18.120
brokers and all of these things. So what's the argument that says, don't leave that, but let's
01:51:23.180
just re channel it. Yeah. Well, I mean, one of the big tasks I've been trying to do is educate the
01:51:28.460
American people. I described the book, the price we pay as the big short for healthcare. If we can
01:51:33.200
educate employers, everyday Americans, how to buy drugs, how to buy health insurance, how to ask the
01:51:41.000
questions, get second opinions, challenge their bills, recognize that when you get one of these
01:51:46.260
massive bills, you're not legally obligated to pay it. And we're making these legal cases to judges
01:51:52.680
across America. I've got a group of pro bono lawyers as a part of this restoring medicine movement
01:51:58.740
that we're assigning to individuals and we're swimming in cases. I mean, there's just unlimited
01:52:02.920
cases out there. One in five Americans have medical debt collections. Well, some of those go to court
01:52:07.520
where basically telling the judges, there's no legal contract. How can I mow your lawn and then send you
01:52:14.640
a bill for $5,000 and say, well, that's what I charge. I mean, you'd say we have no legal contract.
01:52:21.660
How could I cut your hair for 30 bucks? And then one year you come in and I say it's $900. There's no
01:52:27.580
legal contract. So this is a very important point, Marty, because I didn't know this. Yesterday we had
01:52:32.360
dinner and one of the people we had dinner with, who's just amazing. We could go off on stories on
01:52:37.960
how amazing that guy is in his work. Yeah. African doctor. Yeah. But he told a story of his son
01:52:43.820
needed an endoscopy and they're back in the U S for this. And so to get an endoscopy, which is a
01:52:49.420
tube that goes into your esophagus and your stomach and takes a look around and comes back out and makes
01:52:54.080
sure everything is okay. You have a lot of fees in there. You've got the fee for the gastroenterologist
01:52:57.880
who's doing it. There's a hospital fee for that. There's an anesthesia fee because you need an
01:53:02.660
anesthesiologist to give you some sedating medication. So you're not under complete
01:53:06.660
anesthesia, but you're comfortable so that you're not gagging at this thing happening. And it turned
01:53:10.800
out that the hospital was inside the network. The professional fee for the gastroenterologist was
01:53:15.280
quote unquote inside the network, but the fee for the anesthesiologist was not inside the network
01:53:19.880
because for no reasons that this patient could ever understand the anesthesia bill came from a group
01:53:26.020
that was outside of the network. So he got a bill for $10,000 for the anesthesia portion of this,
01:53:33.240
which let's just call a spade a spade, Marty. That's putting an IV in somebody and for 30 minutes
01:53:38.980
taking care of them after you've administered some propofol. I mean, let's just be completely
01:53:43.600
honest about what actually happened there. So a few dollars worth of propofol and some IV equipment
01:53:48.160
and an EKG and a pulse oximeter, and you're watching someone for 30 minutes. So I might be in the
01:53:53.380
wrong business, by the way, if that's 10,000 bucks, that is insulting to what money means.
01:53:58.900
So there's two issues I'd like to understand there. One, what in God's name does it have to do
01:54:04.420
with the fact that that was in or out of network, that such an egregious charge could be levied on
01:54:08.660
that patient? And two, what is the legal obligation of that patient and how can that patient fight and
01:54:15.800
say, this is totally bullshit. We're not doing this. Well, right now the judges have been sympathetic
01:54:20.980
to the hospitals. And we're trying to show the legal argument that there's no contract.
01:54:26.820
When you walk into the emergency room today with a cut, chances are they're going to give you some
01:54:31.200
form and say, you have to sign this. And the person giving it to you doesn't know squat about what's in
01:54:35.840
it. You could be in excruciating abdominal pain and need to go have your appendix removed. You're
01:54:40.880
signing it at a vulnerable time. Well, and in fact, let's take a step further. If you have a
01:54:45.660
prenuptial agreement and you want to get that held up and there's any evidence that that was signed
01:54:50.520
under duress, guess what? It doesn't matter. And I don't know about you, but an acute abdomen sounds
01:54:56.140
like duress. Yeah. I mean, if you're in a criminal trial and somebody says, gives the key evidence
01:55:02.740
that somebody murdered somebody, the other lawyers could argue entrapment. He felt a little pressured
01:55:08.380
to offer that confession and then it's negated. And yet in the hospital, not only is there no contract
01:55:13.600
sometimes, but there's this document that is fooling you into thinking it's a consent to be
01:55:20.380
treated. But there's a law in the United States called EMTALA that requires any hospital to take
01:55:25.700
care of any urgent or emergent patient that walks into their door. It's not dependent on giving your
01:55:30.360
credit card when you check in. It's not dependent on giving your social security number and your mom's
01:55:35.300
address and all these other things that they try to collect. You don't have to do that. Hospitals are
01:55:40.820
required by law. It's called EMTALA to take care of anyone with an urgent or emergent condition. If
01:55:46.120
you feel that there's a legal document that you have to sign your home and your financial life away
01:55:51.060
in order to get stitches and you're concerned about predatory billing, you sign in that little
01:55:56.220
signature box in the iPad, you sign did not read because no one's going to read what you sign in
01:56:02.120
there. Okay. And then when the collectors call and the judge says you have to provide your routing
01:56:07.780
number and your account number or we're going to garnish your wages, you say there's no legal
01:56:12.220
contract. We're trying to empower people in the United States to say we need a competent and fair
01:56:17.740
pricing system. The surprise bill issues, by the way, people are getting hammered with surprise bills
01:56:23.060
right now. Hammered. And why are they so hard to understand? I'm taking you off that question,
01:56:27.280
but I get about three EOBs, Explanation of Benefits, per month, maybe four of them. I feel like
01:56:32.660
there's a never ending stream of them. You take your kid to the pediatrician because he's got a
01:56:38.380
fever and you think he might have an ear infection. The pediatrician looks in the ear, confirms that he
01:56:42.360
does. You get some amoxicillin, you go home, everybody's happy. I get six EOBs for that encounter.
01:56:48.540
Each one saying something I can't understand. This is what we build. This is what your insurance
01:56:54.120
company paid. This is what you're responsible for. And then they attach a check to it. And I'm like,
01:56:59.360
what? I don't get it. And again, if I don't get it, at least one other person listening to this
01:57:06.520
doesn't get it. Right, right. Well, look, I took one of those bills to a hospital CEO. Like I said,
01:57:13.260
I've got great relationships with a lot of these hospital CEOs. Quite honestly, sometimes they're
01:57:16.860
just disconnected from what's happening with their revenue cycle department. Don't you love that word,
01:57:21.340
revenue cycle? Collections. Revenue cycle. One woman handed me her card and it literally said on it,
01:57:28.140
Director of Revenue Enhancement. Like, what the hell is this?
01:57:35.600
Oh, gosh. Hippocrates, man, would just be rolling over in his grave.
01:57:39.860
It's funny. I hope that the guys in the mafia are listening to this and upping their game a little
01:57:44.680
bit. Because if you're running collections in the mafia, you should at least have a revenue
01:57:48.280
enhancement card. Well, in Florida, drug dealers have given up drugs and turned to doing medical
01:57:55.460
fraud because it's more profitable and they can make more money. I don't know if you know,
01:57:59.540
but the Medicare anti-fraud offices, I know the head of the division, they've essentially closed down
01:58:05.220
most of the regional offices and moved them all to Florida because Florida is just the rampant
01:58:10.680
center of a lot of abuse. So you show an EOB to a hospital CEO.
01:58:14.200
Yeah, they can't even interpret the bill. I mean, there is a buddy of mine who had a friend get a
01:58:20.440
$5,000 bill for an hour in the emergency room or something like that. Did a couple simple things
01:58:25.580
and the bill was over $5,000. Took it to my friend who's a consultant, knows the healthcare
01:58:30.660
executives. Went to the CEO and knew the CEO. He said, by the way, my friend went to your emergency
01:58:35.120
room. She was in the ER. She got the little oxygen nasal cannula and an IV and was sent home about
01:58:40.480
45 minutes later. Guess how much the bill was? And of course, he's cringing, embarrassed. And he
01:58:45.620
says, I don't know, $1,500? No, it was $5,000. Oh my God. You know, he's like, let me take care of
01:58:51.720
that for you. And there's this embarrassment when it comes up that, yes, we've allowed this game of
01:58:56.760
dialing up bills and then offering these bigger discounts as shiny objects to employers and
01:59:02.180
insurance companies has gotten so out of control that the victims, because hospital CEOs will often tell
01:59:06.740
me, Marty, you're so right, but nobody pays those bills. Those are sticker prices. We give discounts
01:59:11.960
liberally. Well, not to the people I'm meeting in Fredericksburg, Virginia, in Carlsbad, New Mexico,
01:59:17.260
who are fighting their bills and they can't even get a call center representative and they're being
01:59:21.360
harassed and the collectors are calling saying now it's in the hand of collectors so you can't talk to
01:59:25.860
the hospital. And let's explain what that CEO is trying to explain to you, which is, look, we want to
01:59:30.180
make this look really good. So something like coming into the ER, having a nasal cannula, an IV and an EKG
01:59:36.280
and sending you out, we're going to put a sticker price on that of $5,000. And we don't really think
01:59:41.800
anybody's going to pay it, but what we're going to do is we're going to tell the insurance company
01:59:46.600
or the employer, we normally charge $5,000 for this. But for you, my friend today, one time only,
01:59:54.300
if you sign up now, this will only cost $500. And you're thinking it's a great discount. We're all
02:00:01.080
over it. And if a different company shows up, they might get a different rate. They might get a
02:00:05.160
different discount. So different people can get different discounts on the same egregious price
02:00:09.260
that serves no purpose other than to make you feel like you're offering a great discount. I mean,
02:00:13.800
can you imagine if the rest of the world ran on this principle? Like the grocery store. Yeah,
02:00:18.440
yeah, exactly. The restaurant. I'll have the tikka masala, please. Well, here's the deal.
02:00:21.660
Who's your employer? It's $1,000. Who do you work for? I work for Walgreens.
02:00:27.600
Oh, take this menu. The tikka masala is not $1,000 for you. It's only $100 for you.
02:00:34.240
And the guy sitting across from you works somewhere else. And well, it's $50 for him.
02:00:38.460
Right. But he gets a 2% discount. On the 50. On the 50. Yeah, yeah. So he's only paying $49.
02:00:45.360
Employers are telling me all the time, our insurance company, we get a 40% discount. Well,
02:00:49.300
I'll give you a 99% discount if I'm selling you a car. As long as I get to set the price,
02:00:53.680
you can have a 99% discount. Is there another example in our economy that works this way?
02:00:59.120
Well, there is bulk purchasing and retail. But here's what I would add to your example that you
02:01:03.660
very well described. In addition to these secret discounts, both parties are sworn to secrecy that
02:01:10.440
this discount cannot be made public. And that kills the competition. And that's what we're
02:01:15.800
working on with legislation. And that's legal. It is legal to put a gag on the chicanery.
1.00
02:01:23.800
Okay. So going back to our friend from yesterday, the reason he gets a $10,000 bill for someone putting
02:01:30.580
in an IV and some propofol is because the anesthesia group set a price that was ridiculous,
02:01:36.760
not necessarily expecting people were going to pay this out of pocket. Again, they didn't go into this
02:01:41.460
trying to kill people. For whatever reason, the anesthesiologist who was probably supposed to do
02:01:45.800
that case was maybe not. So someone else comes in, they're out of network. And now that ridiculous
02:01:51.360
price actually sticks to this patient. Now, what is his legal recourse in that situation?
02:01:59.980
I mean, what we're telling them is you argue as strong as you can argue to the collectors,
02:02:05.460
to the courts, if they take it to court, to whoever, that they need to provide the legal contract.
02:02:11.280
Sure. Oh, they're charged. They want $10,000. Just send me the agreement. I understand it's part of my
02:02:16.640
consumer rights that when a collections agency calls that I'm entitled to see the contract or
02:02:24.540
What type of contracts are being produced at that request?
02:02:28.020
Well, I've never seen a collections agency produce a contract because it's that little iPad form that
02:02:32.900
you sign in the lobby or something that doesn't exist or it's combined with a consent to treat.
02:02:37.840
So it doesn't exist at the beginning. So let's say open enrollments every January. I mean,
02:02:42.420
I'm sure we signed something in January when we enroll. Is that the contract? Is there something
02:02:46.880
in there that the collections agency can come back and say, well, Marty, I'm not going to show
02:02:50.980
you a contract from when you were in the ER in May. I'm going to show you a contract from January when
02:02:57.520
No, because that's a contract between you and the insurance company. It's not a contract between you and
02:03:05.120
So this is a great point. So the only time you're being technically presented with a contract for
02:03:12.040
price is at the provider's level. And we're basically saying it's very easy to render that
02:03:19.320
Yeah. And sometimes it doesn't exist or logistically, honestly, they just can't produce it. They send the
02:03:23.720
what they call bad debt to the collectors and the collectors go after you, but they're not sending.
02:03:29.680
Did not read. Exactly. Right. Oh no, I never entered a legal agreement obligating me to pay. If I did,
02:03:35.760
show me the thing. The other thing we're telling people to do, if it's really egregious,
02:03:39.760
is contact your state's attorney and contact your local news network. Now, unfortunately,
02:03:44.760
some of the local news networks, their number one client is the local hospital that's running ads.
02:03:50.820
This complex is gigantic. It's incredible. But contact them and tell them. My friend,
02:03:55.100
Sarah Cliff at Vox, Elizabeth Rosenthal at Kaiser Health News, they each have sections where you can
02:04:00.220
send in your bills. I'm swimming. I'm underwater. I've got, I don't know, 54,000 emails I haven't read,
02:04:05.280
probably half the number of emails you have and have not read. I'm going to try to clean it out.
02:04:09.760
this weekend. But so many people are getting hammered out there. It's like an unlimited
02:04:14.960
drinking from a fire hydrant. But those are things people should do. Ask for the contract,
02:04:19.380
sign if you feel like it's not a fair agreement, if you're not disclosed prices. No.
02:04:23.300
I wish I knew this two years ago when we got stiffed with some $15,000 bill for an ambulance ride.
02:04:29.600
Well, you know, one of our friends from residency that had a sort of a catastrophic medical illness
02:04:34.280
in Australia. Yes. And he was flown back. We all paid money to chip in for this. There was a whole
02:04:40.220
Facebook page where we were all kicking in thousands of dollars for his care. I mean,
02:04:44.540
yeah. So what happened? Oh, I don't want to upset you, but some of that money.
02:04:48.860
Do I get a refund on that? Was that all given back to him?
02:04:51.660
I mean, this guy's one of my best friends and it was awesome to see everyone come together. But the
02:04:56.160
flight back, they charged him like a quarter million dollars. Okay. For that flight,
02:05:00.660
you could get a private G7 and fly to Beijing and back five times for that money. That was just pure
02:05:08.120
price gouging. And actually, I had got him some legal help to knock that bill down.
02:05:12.740
Because this came outside of his insurance? Like his insurance decided they didn't cover that kind
02:05:16.380
of stuff? Bingo. You just nailed the number one story of the modern American healthcare system.
02:05:21.340
Entities, organizations, doctors, hospitals, ambulances, helicopters have figured out
02:05:27.020
if you bill outside of insurance, you can just gouge. And some people will pay it. And if you
02:05:33.320
just send it to collections and harass and send them 50 bills, some people will just pay it. And
02:05:38.240
the reality is God's been good to you and I. If we got a $5,000 bill, we'd find a way just to pay.
02:05:43.600
It might be annoying, but we'll find it. But half of America has less than $300 in savings.
02:05:51.240
Now, can I talk about something positive on this subject?
02:05:53.980
Yeah, please. Please, for the love of humanity.
02:05:58.720
Talk about one good thing here. Keith Smith in Oklahoma City has basically said,
02:06:05.520
this is total BS. I don't understand how a doctor can take an oath, treat a patient,
02:06:11.100
and ruin their life financially. It's against everything I've ever considered sacred about this
02:06:16.040
heritage of medicine. He has offered one bundled price for every service at his medical center.
02:06:22.760
If you come in and you need a shoulder surgery, you don't get a bill for the epidural separate and
02:06:27.720
for the anesthesiologist pro fee separate. They got their act together. And hospitals need to get
02:06:34.320
their act together instead of sort of the finger pointing of, oh, well, that's the lab. The lab's
02:06:45.580
It's pure gouging. And we're all paying for it. It's not, oh, my insurance paid or my Medicare paid
02:06:50.580
$4,000 to test for one gene allele. You can genome your whole 23andMe cost, what, 150 bucks?
02:06:59.000
And that's like all these gene tests. So we've seen that. Genes that are in the 23andMe panel
02:07:03.960
billed separately for thousands of dollars. So people need to ask when we all started,
02:07:09.660
and I have you to thank a little bit for this, started asking about healthy foods. You remember
02:07:14.140
that conversation early on when you were learning about this subject and you're like, Marty, this is
02:07:18.240
incredible what I'm learning. I started asking in restaurants, what kind of food is this? And does
02:07:22.280
this have this? And how is it prepared? And it's putting pressure on the restaurants. It's driving the
02:07:27.820
market, the food label world. The food industry is now trying to say, hey, this has these healthy
02:07:33.200
ingredients that are good. This has no added sugar. And so the inquiries are moving the market. And in
02:07:40.500
addition to Keith Smith disrupting healthcare in Oklahoma, and it's awesome. The insurance companies
02:07:45.800
hate him. The hospitals hate him. All these people want him to fail. It's like Elon Musk. Everybody's
02:07:51.440
shorting him. Everyone wants him to fail. But he's actually growing like crazy. People are flying in from
02:07:57.440
Japan to Oklahoma City. Why? Because they have a fair and honest bundled price.
02:08:03.200
He had 200 Canadians, I think, last year. We did a study at Hopkins of all the price transparency
02:08:09.040
medical centers in the United States before and after they decided to go full, honest pricing,
02:08:14.680
not charge master pricing, but the real price. Not, oh, here's a price and we're going to give you a
02:08:19.180
discount of 2%, right? The real price. And they all do incredibly well. Their business goes up. Their
02:08:25.220
satisfaction goes up. We published the study. This is the future. It's exciting. It's disruptive.
02:08:29.940
It's why I'm so up on medicine right now. And you think that this is potentially a better solution,
02:08:35.920
which is basically still private healthcare, but with market demanded transparency. I do.
02:08:43.420
I do. Look, it's very appealing to wipe out all the money games overnight with a single payer
02:08:48.960
system. It's very, very attempted. And you know what? People are advocates for it are absolutely
02:08:53.340
correct. It will slash the money games overnight. It'll just put it to a screeching halt. But over time,
02:08:59.200
historically, if you look academically at every government that's done it, they cannot resist
02:09:03.380
the temptation to just skim cut, skim cut year after year, 10 or 20 years.
02:09:08.760
Yeah. And I don't want to live in Canada. I mean, I don't want to live in a Canadian healthcare system
02:09:12.160
either because I see what my parents experience. I see what my whole family is still in Canada.
02:09:16.440
Every single person in my family is still in Canada. And I wouldn't trade places with a single
02:09:21.720
one of them for their healthcare, even though average, it's infinitely better than American healthcare
02:09:29.720
My dean of Harvard School of Public Health, when I was a student said,
02:09:33.280
Canadian is essentially an unarmed American with health insurance.
02:09:40.060
No, I agree with you. We have an incredible healthcare system. The problem is it works for
02:09:44.300
the wealthy and it works most of the time and the reliability is not there.
02:09:47.620
But the only reason it works for the wealthy is something you said a moment ago. It's that
02:09:50.720
the cost of the care for the wealthy falls below the hurdle rate of hassle. I mean,
02:09:57.060
is there any place in the country that someone of means would rather get their healthcare? No,
02:10:01.180
I don't know the last time an American of means left the U.S. to get their healthcare. It's the
02:10:06.820
exact opposite. Hopkins, I feel like half the people we took care of were outside of the United
02:10:11.680
States. So there's no question that we have the best healthcare when it's applied correctly,
02:10:18.220
which is to say the quality of care we have the potential to deliver is exceptional under the
02:10:24.440
right circumstances. That's a lot of caveating. We have a cost crisis and we have an access crisis.
02:10:31.000
And the two people, the two subsets of people who are therefore going to be crushed in the U.S.
02:10:36.240
healthcare system are people who cannot afford access at all and people who can't afford egregious
02:10:42.560
costs when levied upon them. If you're not in those two camps, you're going to be okay.
02:10:47.100
It's annoying as hell, but you're going to be okay. And I think that's what's allowed this system
02:10:51.800
to sort of limp its way along. And I guess what I'm hearing you say is we might, and I hate to use
02:10:59.580
the term tipping point, but we might be at a tipping point where it's become so egregious
02:11:03.960
that even the people now who, A, there might be enough people that are moving into the latter
02:11:09.680
categories of, okay, this is now, if one in five people are getting collections through healthcare,
02:11:15.120
I mean, we have a fundamental problem. Half of women with stage four breast cancer in the United
02:11:20.040
States today, recent study just came out at ASCO, half of women with stage four breast cancer in the
02:11:25.080
United States are being harassed by medical debt collectors. Did you talk to the medical debt
02:11:29.560
collectors? Well, that study was published by another group. Oh no, but in general. Oh yeah.
02:11:33.460
And are they feeling, I mean, how are they feeling? Let's try to do something we talked about early.
02:11:37.720
Let's try to have empathy for them. You need a job. Everybody needs a job. So I got a job. I'm
02:11:41.660
a medical debt collector. Do I feel good about myself? I mean, I'm calling a woman with stage
0.99
02:11:45.620
four breast cancer every day and threatening her. That's a good person that's on the phone. I don't
02:11:50.360
believe that that medical debt collector is some like evil incarnate. No. So how do they feel about
02:11:55.060
what they have to do? Well, some of them hate their life. I would say for the most part,
02:11:58.640
they are glad to be in a position where for the most part, if you object, fight your bill,
02:12:05.400
they're going to just knock off 20, 50% right off the top. And this is another tip for people out
02:12:12.380
there. Bills are negotiable. When you get your bill, they are negotiable. I wish I knew this when
02:12:16.900
I got that goddamn ambulance bill a few years ago. Yeah. I mean, imagine they're kind of hoping that
02:12:22.580
you, I don't want to say hoping, like you say, we have all good people working in a bad system,
02:12:27.200
but the business model relies on some people just saying, ah, screw it. I'll pay. And entire
02:12:32.740
careers and industries. That could be a slogan, right? The business model is, quote, ah, screw it.
02:12:39.780
I'll just pay. I'll just pay, right? And these folks in the so-called revenue cycle world.
02:12:45.540
They're in revenue enhancement. It's revenue enhancement.
02:12:48.840
Revenue enhancement. I mean, how did I discover these people? I get invited to speak at a lot of
02:12:54.080
conferences as you do. And I never actually get invited to speak at conferences, by the way.
02:12:58.640
Oh, well, consider yourself invited to everyone I've done. No, no, I'm happy to not. So they say,
02:13:03.600
I got invited to this conference of revenue cycle managers. And I just, sure, I'm happy to speak to
02:13:09.280
them. That's a nice. That's awesome. I mean, that's a great opportunity for you to learn.
02:13:12.960
Yeah. And that's basically this book, The Price We Pay is a two-year tour around America,
02:13:17.780
talking to patients and revenue cycle people and businesses and brokers and everybody. I wanted to
02:13:24.280
talk to everybody and get their point of view. And I don't believe there's any one bad villain.
02:13:28.460
I think it's the system. But the revenue cycle people, I show up and I'm like, I'm sorry,
02:13:32.920
I just got out of the operating room and flew into town. Who are you people? What is revenue cycle?
02:13:38.300
What do you do? And is this in healthcare or are you outside of health? What is it? Are you tax
02:13:43.300
accountants? And they explain to me how it works. And I look out, there's a conference of like 4,000
02:13:48.700
people. And I'm like, does every hospital have one of the, you know, this, oh yeah, every hospital
02:13:53.840
has a department. At Duke at one point, there were more people working on billing and revenue cycle
02:13:58.840
than there were beds in the hospital. Come on, that can't be true.
02:14:01.860
No, but this is a true fact. I think they had 900 beds and they had it just over that in terms of
02:14:06.520
billing, coding, and revenue cycle and managing these discount.
02:14:11.320
Okay. So let me give you another contrarian argument. If you fix the healthcare system,
02:14:15.420
how many people are going to lose a job? A lot.
02:14:17.620
Healthcare is an enormous industry. It employs tens of millions of people.
02:14:22.720
Yeah. Look, what are those people going to do now?
02:14:24.800
Well, you can make the same argument about the financial mortgage crisis. You had all these
02:14:28.820
people selling subprime mortgages and getting rich and employing other people in these giant
02:14:33.120
companies. Healthcare is a gigantic bubble right now. And the parallels to the financial crisis
02:14:38.520
are striking. And at some point, if you think about it, we are spending money we don't have
02:14:44.440
on products that we don't even need sometimes. The PBM world, medical services that are unnecessary,
02:14:50.860
the enormous middle layers. And doctors, quite honestly, are very suspicious of what's happening.
02:14:56.800
They don't understand. I mean, I didn't understand until I started touring and going to these conferences
02:15:02.340
and saying, I'm sick of this. I'm a professor of health policy. I don't feel like I have a handle
02:15:08.400
on the entire healthcare system. And I decided, enough is enough. I want to learn, educate myself
02:15:14.060
on every tiny detail of this ginormous system. I want to know every law, Medicaid, rule, insurance,
02:15:21.600
contract, negotiation, talk to the negotiators. What goes on at that meeting? Well, they say,
02:15:26.400
our prices are going to go up by 10% next year, but we're going to give you a 12% discount.
02:15:30.860
And then they turn around and dial up the prices 15%. And then the hospital says, oh, good job,
02:15:36.520
Bob. I'm just making it up. You generated another $4 million for us. You're now promoted to whatever
02:15:43.000
title. This gigantic industry. And they're coming up to me at the conferences and other places and
02:15:47.580
telling me, I do this and this, but quite honestly, my job doesn't need to exist. If we had honest and
02:15:52.800
fair pricing in America, we wouldn't need this gigantic negotiating of discounts and markups,
02:15:59.540
the markup discount game, I call it. And one important thing, and one thing I'd ask you and all
02:16:04.160
your listeners to do is use the honest lexicon, just like we talked about medical care gone wrong
02:16:09.980
versus a preventable adverse event. Let's use the patient-centered terms. Let's talk about prices
02:16:15.960
and not costs. Let's remember that we're paying, not our insurance company or our employer or other
02:16:22.220
folks. Let's talk about bills you shouldn't be getting. Refer to them as predatory billing practices
02:16:28.860
or predatory medicine, screenings you don't need.
02:16:32.980
So let's talk a little bit about that. You talked about how studies have looked at what percentage
02:16:39.040
of tests that physicians order do they deem unnecessary. So in other words, you go and you
02:16:46.020
pull a thousand doctors and you say secretly and confidentially, so no one's going to come and
02:16:52.840
spank you for this. How often are you ordering a test that is unnecessary? And the answer turned out
02:16:58.500
to be 21%. 21% was the average. Now actually, the question said, excluding your own practice
02:17:06.340
in your observations. Got it. Okay. Okay. As we develop practice pattern measures of waste,
02:17:12.920
which is a big project we're doing at Johns Hopkins and with some other groups, we've asked
02:17:16.880
doctors, tell us about an egregious area of overuse in your specialty, something that's done
02:17:22.700
too much in a certain clinical situation. And sometimes they'll be like, I can't really think
02:17:27.300
of anything. And then we'll say, well, think about your competitor groups. Are they doing other stuff?
02:17:32.740
Oh my God. Yeah. They're doing endoscopies every six months after an initial screening.
02:17:39.660
So it's easier to get an answer when you don't force the lens inward.
02:17:43.240
Right. And I think it's back to our opening conversation. We work our tails off in residency.
02:17:48.920
How dare we start saying that you've crossed over to an area of entitlement and burnout where you do
02:17:54.760
too much unnecessary. Let's talk about the system. It's not a threatening, we talk about low value care
02:17:59.280
in the medical literature, and that's how we're talking about this subject.
02:18:02.400
Now you could take a couple of those into, I've always thought of this as an area that doesn't get
02:18:06.560
enough attention. Because I sort of divide it into two categories. So let's take one of the most
02:18:11.880
egregious examples, which I'm sure will upset a few people, which is interventional cardiology.
02:18:16.760
There's a lot of people already upset from the podcast.
02:18:19.580
Yeah, I think we've upset a lot of people. Okay. So the medical literature on stenting is like all
02:18:26.040
things in the medical literature, there's some room for interpretation, but there are some things
02:18:29.780
that we kind of know. So if somebody is having an ST elevated wave MI and they're hemodynamically
02:18:36.180
unstable in the emergency room, those are patients that do a lot better when you put a stent in them.
02:18:42.200
Yep. You're going to save that person's life. So we're here to say stents are not bad. Okay.
02:18:46.500
But then there's a whole body of literature that makes it also pretty clear that there are a whole
02:18:50.080
bunch of people that don't seem to get any better with stents, meaning there's no evidence you're
02:18:54.160
going to save their life. And that's not the only reason to put a stent in, because if you save a
02:18:59.780
that might be a reason, anyone who's had a heart attack would say, I don't care if it reduces my
02:19:04.560
risk of dying, but just not having a heart attack would be a benefit or if it reduces chest pain.
02:19:08.640
So you have this whole other group of people who actually have no benefit of a stent,
02:19:13.540
doesn't reduce chest pain, doesn't reduce subsequent heart attack, and it doesn't save a
02:19:16.780
life. And then you get into the business of, well, how many stents should you put in?
02:19:20.900
You know where I'm going with this, right? There are interventional cardiologists out there
02:19:24.680
that are putting stents in people and violating every aspect of what is known, meaning they're
02:19:30.460
putting them into the wrong patients and they're putting in far too many and they're getting paid
02:19:35.020
by the stent. Okay. You've actually talked publicly about this in the dermatology world about people
02:19:40.280
doing Mohs surgery. That's one type of bad actor in the system. And you could argue some of that is
0.84
02:19:47.280
conscious, some of that is subconscious. So it might be the case that that doctor who is putting
02:19:52.220
five stents in the person with stable angina, who's never shown even evidence of MI or EKG change
02:20:00.640
deep down as a good person and thinks that they know something that none of the studies have ever
02:20:06.000
shown. And I get that. Okay. And then within that, there's going to be some nefarious actors who are
02:20:11.840
simply used car salesmen gone wrong. I just realized I insulted a bunch of used car salesmen, but
02:20:17.580
they're people who are literally just shaking down the system and they know that they're going to get
02:20:21.160
a thousand bucks for every stent they put in. So I'm going to put five in this guy today, even though
02:20:25.460
he probably needs zero. My impression, which could be entirely incorrect, is that the majority of
02:20:30.560
unnecessary care is not in that category. It's in a different category, which has two ends to it.
02:20:37.680
One is the, I don't have the time to deal with figuring out exactly what the right thing to do is.
02:20:45.020
And the cost of me giving in and giving someone an antibiotic when I'm pretty sure they have a viral
02:20:51.560
infection that's going to go away in three days, the cost of me trying to educate the patient on
02:20:56.760
that and explain antibiotic resistance, it's just too high. I've only got 15 minutes. I'll just give
02:21:02.100
them the goddamn Z-Pak, right? That's one. And then the second subset of that, which by the way,
1.00
02:21:06.920
I think is the worst one, is the, I'm not going to be the guy that gets sued because I didn't order
02:21:12.140
the head CT on the person with a headache, even though I know that this person stopped drinking
02:21:18.080
coffee two days ago and they went from three cups of coffee a day to nothing. And they're coming in
02:21:23.140
here with the worst headache of their life. And I'm pretty 99.999% sure it's caffeine withdrawal,
02:21:29.680
but I'm not going to let this person walk out of this ER without a head CT because if God forbid,
02:21:34.260
it's a tumor or an aneurysm, I'm going to get sued. So everyone gets a head CT. I mean,
02:21:39.840
I told a funny story last night at dinner that I won't repeat, but of a patient coming in with
02:21:44.560
complaining that their hair was vibrating and they get a head CT because the ER docs like as an
02:21:51.320
individual, I know that's bad for the system, but as an individual, it's in my best interest to do
02:21:56.220
that. Or one time I saw a patient with hair vibrating and I got a CT and it showed a cancer.
02:22:00.780
Yeah. I'm like Osler reincarnated. I'm so good. I suspected that that vibrating hair was
02:22:09.260
actually a meningioma beneath the surface. This to me is a very dirty problem in America,
02:22:16.080
which is we are a very litigious culture. And it is that. So when people talk about medical
02:22:21.460
malpractice, which I want to come back to, cause you alluded to it, people tend to be dismissive
02:22:25.880
of it and say, it's not actually that big a part of medicine because they're looking at the actual
02:22:29.360
cost of medical malpractice. What I think they're missing is the threat of medical malpractice
02:22:34.780
has created a culture of completely unnecessary testing as part of the CYA fellowship that everyone
02:22:44.700
gets taught in medicine. So somewhere down the line, each of us in residency was taught
02:22:49.660
cover your ass, which means you are doing stuff that is not good, but it is going to look good
02:22:56.760
in a deposition in the worst case outcome here. Now, how do you fix that problem?
02:23:03.260
Good medical care. So for every five docs in the ER that will say, if somebody has a headache,
02:23:09.700
you just for liability reasons need to get a CAT scan or an MRI. I bet you there's a senior doc who
02:23:15.460
says, no, you don't look, people are more likely to sue you because they're just angry at you or
02:23:20.360
they're incredibly dissatisfied than because you failed to order a test and do the right thing.
02:23:25.720
And you can defend it if you need to defend it, that the patient had a moderate headache. And so
02:23:31.000
really good sound judgment. I mean, I love these very senior wise doctors that say, do the right
02:23:36.340
thing. Don't just react to some fear of a potential risk. The unnecessary testing and unnecessary doing
02:23:43.100
things because of malpractice concerns is definitely a problem in certain pockets of medicine, the emergency
02:23:49.420
room and OB, they're getting hammered in OB, but it's not the driver. You know, people, it's so vivid
02:23:56.700
to us doctors and it seems so wrong and so unnecessary. And you want to blame these lawyers that have these
02:24:02.600
contingency games. The reality is it is such an inconsequential small fraction of the medical spend,
02:24:08.840
even though most doctors think it's one of the primary drivers of our higher healthcare costs.
02:24:14.300
When you say it's insignificant, you mean the actual cost of malpractice insurance, litigation and
02:24:18.860
things like that. Well, not just that, but studies have shown it's not just doing stuff that costs
02:24:23.220
money, but you are avoiding things because of malpractice concerns. People may avoid surgery.
02:24:29.220
I don't want to touch this guy because if something goes wrong, I don't want to have that liability.
02:24:35.460
So you also have avoiding care because of malpractice concerns.
02:24:39.160
I remember once in clinic, a discussion coming up with a patient that was an attorney and the
02:24:46.120
attending said, complex case and an attorney don't do it. I mean, like, you know, you asking to be
02:24:52.300
sued if something goes wrong. Yeah. So how many unnecessary head scans the Medicare pays 300 bucks
02:24:58.720
for did that one of operation avoidance balance out? So if you talk to the real scholars of healthcare
02:25:05.780
costs, they'll tell you it's not malpractice. I know it's an emotional issue.
02:25:09.420
So yeah. And it's not the malpractice, but you're saying even the over treatment to minimize the risk
02:25:15.280
of it. So, so what about another thing, which is, do we have a culture of just expecting that? Like,
02:25:23.460
so how many times has you get that patient who comes in, who said, I stopped drinking coffee three
02:25:28.640
days ago. I've got a really bad headache, but I'm really worried. And is there ever room for the
02:25:33.700
discussion that says, look, in my judgment, and I've already talked to three of my colleagues here
02:25:38.520
today, we all think that your headache is from caffeine withdrawal. And we think you should
02:25:43.980
take Tylenol and maybe have a coffee and maybe taper off as opposed to just going from three
02:25:49.080
coffees to zero coffees. But if you really, really want a CT scan, we'll do it. It's going to cost this
02:25:53.760
much. Now your insurance company is going to cover this much, but you're going to cover this much.
02:25:59.600
I mean, that seems like a reasonable discussion. I mean, again, it's artificial in that I
02:26:03.520
can't imagine an ER doc having the luxury of time to sit down and have that, let alone the
02:26:07.660
transparency into pricing. But to me, that's the way the world works in everything else. I mean,
02:26:15.100
Marty, if you want to buy a Ferrari, you can, you know how much it costs and you would presumably
02:26:22.040
decide that car is worth more than a house. You would make that decision if you felt that way.
02:26:27.740
So in theory, you should be able to say to people, look, I'm your advocate here as the doctor. I don't
02:26:34.180
think you need a head CT. If I was in your situation, I would not want the radiation.
02:26:38.720
I think people don't understand the radiation they're getting in CT scans.
02:26:43.200
I don't think you should be allowed into a CT scanner without someone telling you how many
02:26:46.760
millisieverts you're getting and showing you the NRC guidelines for how many millisieverts of
02:26:50.980
radiation you should be exposed to. And look, I order CT scans on patients all the time,
02:26:54.720
but I have this discussion. It's like, okay, you're allowed 50 millisieverts of radiation a year.
02:26:59.260
We're going to do a CTNG gram in you. But in this facility, it's 2.2 millisieverts. And you're
02:27:05.260
going to pay this amount for it. If you go and do it over there, it's 18 millisieverts and you're
02:27:09.680
going to pay less. Your choice. Great. To me, that makes sense. So I guess I didn't realize that. I
02:27:14.760
guess I thought it was a bigger problem, but you're saying the data say that's not an issue. It's a small
02:27:18.220
issue. It's less than three-tenths of 1% of the overall healthcare cost crisis. And that's been
02:27:24.440
studied many times, but yet it's vivid and we're proximate to it as doctors. And to be honest with
02:27:29.200
you, like you say, healthcare has a lot of things that we don't understand. And here's one thing we
02:27:33.320
see and we understand, and it just seems wrong. And that's why it's disproportionately dominating
02:27:38.780
the discussion of healthcare costs. The reality is my malpractice insurance, it's about 40 some
02:27:44.820
thousand dollars a year as a surgeon at Johns Hopkins. It's been about that for 25 years,
02:27:58.440
So if you're going to rank order the things, I mean, you've pointed out an enormous one. If
02:28:03.560
simply, if bogus discounts in middlemen is 15% of it, that has to be the single largest item then,
02:28:11.300
Well, that's just the pricing failure piece of it. And that's just an estimation. So then you add
02:28:15.640
to that 21% of healthcare services are unnecessary, according to this survey of 2,000 doctors that
02:28:23.100
we did at Hopkins around the country. If they're saying that 21% of everything we're doing is
02:28:27.980
unnecessary, there is a huge cost reduction opportunity if we can focus on appropriateness.
02:28:33.620
What about drug pricing, generic versus non-generic? I mean, that seems to be another
02:28:37.360
place where the United States pays disproportionately more than anyone else in the world.
02:28:42.720
Yeah, absolutely. Another piece of it. I mean, that's where people are coming up with the stats
02:28:46.700
that roughly half of our healthcare spend can be chopped off and we can still deliver high
02:28:52.420
quality healthcare that has better patient outcomes.
02:28:54.440
So what about the counter argument? Counter argument would say, look,
02:28:57.320
pick your favorite drug. Americans are going to pay two times more than anybody else. In some
02:29:01.480
cases, much more. I mean, we sometimes use a Canadian pharmacy for our patients for really
02:29:06.040
expensive drugs, just on principle. It's not that the patient necessarily can't afford it,
02:29:09.960
but I just say to them, look, I'm morally opposed to the fact that you're going to pay $30 a pill
02:29:14.500
for something that I know in Canada is $1.97 a pill. And that example is actually true.
02:29:20.240
And if I'm going to give you 300 of these for a year, I'd much rather you pay $2 a pill than $30
02:29:24.620
a pill because your insurance won't cover this, by the way. The counter argument is, yeah, yeah,
02:29:28.500
yeah, yeah, yeah. We have to pay more for drugs as Americans because we're reaping the benefit
02:29:33.740
of drug discovery. All the best drug discoveries taking place here. These are our companies,
02:29:39.600
which by the way, is not entirely true. And therefore we subsidize the rest of the world's
02:29:43.880
drug costs because that's the price we pay for being the innovator. Is that kind of a bogus
02:29:48.440
argument? You're absolutely right. Pharma companies, when they develop drugs, are factoring in,
02:29:52.940
they're sort of budgeting the profit down the road into the drug development price. So if there's
02:29:58.640
bigger profits in the US, that's all part of the investment that they make in the research.
02:30:02.400
Problem is with drug pricing is there are so many moving parts. And what I've seen is,
02:30:08.380
first of all, as a cancer surgeon, some of these drugs do miracles and save lives. It's just
02:30:13.300
incredible what we're seeing. Biologic agents now are working wonders in part because it's a whole
02:30:18.180
different generation. These are not small molecules. These are expensive drugs to develop.
02:30:23.040
They're immune-based medications. Yeah. Keytruda is just unbelievable.
02:30:27.360
Unbelievable. And it's getting more awesome and we're seeing lives saved. What we're seeing is a
02:30:31.680
couple bad actors engage in the business of price gouging. We're seeing a couple bad actors
02:30:36.560
transition from brand to generic by not giving the information to the generic companies. They're
02:30:43.380
not disclosing it like they should. Normally, you have to disclose when your brand is done all the
02:30:48.480
manufacturing stuff. You're supposed to disclose it. So whether, well, they just delay it and they
02:30:52.920
drag. And Scott Gottlieb, the head of the FDA, has basically said, enough is enough. When your patents
02:30:57.160
are over, you've got to turn all this stuff over. We've got to get the generics going right away.
02:31:00.920
If you drag your feet for a couple of years, it's like having a patent for a few more years.
02:31:04.860
Wow. I didn't even think of that opportunity to screw people harder.
02:31:08.340
And then you get the PBM middle games, which the smoke bomb in the PBM world is the rebates.
02:31:13.700
Rebates are when the PBMs or middlemen, you name it, any of the middle layers say,
02:31:17.920
to the pharma companies. And this is where I have a little sympathy for pharma. If it's okay
02:31:23.080
to say that in America today, the PBMs say, oh, or group purchasing organizations. If you want to
02:31:28.440
be in our catalog, our formularies that we make available to our employees and on the benefits
02:31:33.380
programs we manage, or the hospitals that we supply, if we're a group purchasing organization
02:31:38.000
or GPO, pay us a million bucks to be in the catalog. Well, what does the pharma company do?
02:31:43.100
They pay the million bucks and they build it into the price of the drug. And then the middleman says,
02:31:47.680
hey, this is a good game. How about 2 million? Sure. Build it into the price of the drug.
02:31:51.480
How about 50 million? And we'll give you exclusive placement in the formulary or exclusive
02:31:57.100
placement in our group purchasing catalogs. Numbers directionally. I mean, are you making
02:32:01.600
these numbers up or is that literally what some of the dollar numbers are?
02:32:04.340
It's literally what they are. And not only are they forcing the pharma companies, device companies
02:32:12.160
also are being held hostage to these middlemen to say, look, you pay us these fees or you're not
02:32:16.360
going to be in our catalog. How do you think we had a shortage of saline? I mean, ask Jill,
0.77
02:32:20.980
who's one of the best nurses I've ever worked with at Hopkins. Ask her, how do we have a shortage
1.00
02:32:25.200
of saline? It's salt water, salt. The two most common elements in the world, salt and water.
02:32:32.200
How do we have a critical shortage in the price spikes? Why? Because these middlemen played these
02:32:37.320
play to pay fee games called so-called rebates or really kickbacks. Let's call it what it is.
02:32:42.260
Let's change the lexicon. Pay us these kickbacks to be in our catalog or pay us a lot of money.
0.87
02:32:47.900
You can be the exclusive saline company in our, and then all of a sudden their supply chain gets
02:32:54.180
so thin. I love the notion of there needing to be exclusive saline provider. Like there's something
02:32:58.260
so proprietary about putting sodium in water. The shiny object they're floating to the hospitals
02:33:04.000
and the employers is to say. You're going to get the biggest discount. Oh, we get bulk discounting.
02:33:08.500
Well, you don't even know what the bench reference price is anymore. There's only one company
02:33:12.200
making it. And so they figured out this game. Now the game is very profitable for the,
02:33:17.860
I call it a rich man's game. It's very profitable for everybody.
02:33:23.940
The patient. I mean, the hospitals are even getting a share back sometimes. These rebates are
02:33:28.520
basically kickbacks. And I've argued to every single politician I get in front of, which is a
02:33:33.420
lot of them. And I can tell you, I've met with a lot of people in the Trump administration even last
02:33:37.120
week. And I have told them we need to eliminate all kickbacks in healthcare. It's time we ban
02:33:43.080
all kickbacks. Is that a policy issue? Is that a legal issue or is that a market issue?
02:33:48.340
It's two issues. It's one, it's a policy issue. In 1987, law was passed to give PBMs and GPOs,
02:33:56.100
or it gave PBMs and GPOs exclusivity. So the Sherman Antitrust Act does not apply to this supply chain.
02:34:03.760
I'm glad you bring that up because I was just about to say that sounds like antitrust. Like
02:34:07.460
we certainly wouldn't allow that in any other industry.
02:34:11.780
How bad is it that those middlemen, PBMs, GPOs, have benefited from a law that was passed,
02:34:17.740
which gave them so-called exclusivity to the Sherman Antitrust Act? It's called the safe harbor. And
02:34:24.160
you'll see a lot of us writing about it. You'll see a lot of it in the policy discussions. Let's get
02:34:27.800
rid of the safe harbor. Let's get rid of kickbacks in healthcare.
02:34:30.140
Okay. So to fix any problem, you have to immediately understand who's going to be hurt
02:34:34.940
by this situation, leaving its status quo. Surely there must be an army of lobbyists that have no
02:34:42.840
interest in anything you're talking about. They don't want any safe harbors being revoked. They
02:34:47.560
don't want any middlemen going away. And despite the fact that at the individual level, I believe
02:34:52.320
many of these people are disgusted by the profession. In the end, as a group, you stand up for what you
02:34:58.880
have and you stand up for your livelihood. So it seems to me one of the biggest challenges is,
02:35:04.500
okay, Marty is a voice of opposition to this, but the people who are being hurt the most,
02:35:10.900
which are every human out there, every person in this country, that is, they're not collective.
02:35:16.900
They're sort of like, I'm one guy and I got my bill and I'm getting screwed. And you're one guy and
02:35:21.860
you're fighting with the collections agency and you're one woman and you got breast cancer and you got
02:35:25.540
these guys riding shotgun up your butt and blah, blah, blah, blah, blah. But there's no one that
02:35:29.800
brings them together. So it's sort of like you have an industry complex, a machine that is very
02:35:35.120
easily able to diffuse a bunch of one-off attacks. That strikes me as to me, the biggest single
02:35:40.800
problem here. It's not the structural problem within the system. There are relatively straightforward
02:35:45.920
ideas that can be tested and iterated on. The problem is how do you create the inertia for change
02:35:51.460
when the people who have to force change at the individual level have less to gain than the
02:35:57.700
collective entity does to lose? That's, I mean, not to be depressing, but that strikes me as the
02:36:03.120
problem here. But the exciting thing is that young people, millennials, doctors, senior physicians that
02:36:11.420
have been in practice who see propofol and sudden shortage, people who understand there's money games
02:36:17.140
and there's stuff that's going on that shouldn't be happening. They're standing up. They're organizing.
02:36:22.140
I mean, look how- So this has got to be grassroots. I mean, it's grassroots. And you know what's
02:36:25.760
awesome is this is our heritage. This is the medical profession. This is who we are as doctors. We're
02:36:31.340
advocates for our patients. That's who we are. It's in our blood. I mean, when Dr. Sabin invented the
02:36:37.580
polio vaccine, they told him, all his colleagues told him, and these business guys, you need to get a
02:36:43.740
patent on this because this could be the biggest moneymaker in the world. He said, no, this is the
02:36:48.160
property of humanity. I want as many people to get this as possible. There are estimates of what
02:36:53.540
Salk forfeited by not- $8 billion. Forbes estimated $8 billion of that day. That was 1954, a year when
02:37:00.980
20,000 people were living in an iron lung machine. You talk about a horrible disease. And he said, this is
02:37:08.260
a gift to mankind. This will be disseminated as broadly as possible. And it's probably one of the
02:37:13.220
greatest and most inspiring stories. That guy's a hero. That is medicine. That's who we are.
02:37:18.540
I mean, when Benjamin Rush, one of the five physician signers of the Declaration of Independence,
02:37:23.900
had his practice his entire life, he took care of patients with schizophrenia. And he de-stigmatized
02:37:29.800
mental illness. So it wasn't seen as demon possession. His patients were chained to buildings. They had no
02:37:36.020
money. Mental illness meant you were impoverished. He took care of those patients. He was a role model. He was
02:37:41.180
one of our greatest leaders in society. President Adams says, you know, Benjamin Franklin and Dr.
02:37:46.700
Benjamin Rush both had great contributions to mankind, but Benjamin Rush had more and they were
02:37:53.620
greater. And that's our heritage. I mean, that is who we are. That's who my dad was as he took care of
02:37:59.960
cancer patients. He's now retired. He would never treat a patient and then destroy their FICA score
02:38:05.680
with surprise bills. We have this incredible heritage of being patient advocates. And if we
02:38:10.960
can channel 1% of the energy we spend on lobbying for higher doctor pay in Washington, D.C. into being
02:38:18.940
the champions of fair and honest, transparent pricing, we're going to see this incredible public
02:38:24.020
trust come back. Because I worry, and I'd love your thoughts on this, but I really worry we are seeing
02:38:29.740
the public trust eroded by this medical money game, billing, predatory game that's going on.
02:38:37.520
I'm from central Pennsylvania, a town called Danville. The Amish people are very close to that
02:38:42.420
area. We have more Mennonite closer to our region. The Amish people, when someone gets a serious illness,
02:38:48.820
half the time they take an Amtrak train for five days to Mexico because the medical care there has
02:38:56.500
honest and fair, transparent pricing. They're worried about getting price gouged in the hospitals
02:39:02.060
locally. What's that say about our country? I mean, you get on the Amtrak train in Pittsburgh,
02:39:06.100
where the Amtrak from Lancaster connects with the train that goes cross country. It is mostly Amish
0.98
02:39:11.340
people going to Mexico for breast cancer surgery, for a chronic disease therapy, for a medication.
02:39:18.620
What's that say? It says people are hungry for honest and transparent pricing like Keith Smith has
02:39:23.940
in Oklahoma City. That's what I'm hearing you say is, look, physicians aren't the reason that this
02:39:28.220
system is broken, but now the onus is on them to play a role in catalyzing reform because by
02:39:34.620
association, whether we like it or not, we're now a part of the problem. And it's so proximate to us.
02:39:39.660
We interact all the time. I mean, when I show the egregious bills or stories of individuals harmed by
02:39:46.840
these bills, or they're paying more on their mortgage because their FICA score was destroyed from a
02:39:51.060
balance bill from an epidural, the hospital executives are very understanding. I mean,
02:39:56.340
they, I think sometimes just don't know how far the revenue cycle or billing outsourced departments,
02:40:02.560
how aggressive they've gotten. And if you appeal to everyday human instinct, they will say, yeah,
02:40:08.120
this does not seem right. We are very close to our hospital leaders in medicine. We need to say,
02:40:14.420
okay, here's a couple of things, a hospital code of conduct. We can get our act together and provide
02:40:19.420
one honest, transparent bill. That's not jacked up for discounts. We can agree. We will never sue
02:40:24.540
a patient that's low income and came in for basic medical care. We can agree that if we're going to
02:40:30.060
bill a patient directly, we'll use the Medicare allowable amounts. We're not angry when Medicare
02:40:34.440
pays us. We shouldn't be angry if somebody pays us the Medicare allowable amount.
02:40:39.320
That's a great idea, Marty. Is there such a code of conduct that's being generated and signed off on?
02:40:43.560
This to me sounds like a great first step. There's no order to these steps that can be done in
02:40:47.920
parallel. But I think you could rattle off 10 things that 90% of physicians and hospital
02:40:55.340
administrators would look at and go, yeah, I believe in. Like everything you just said,
02:40:59.120
who wouldn't agree to those principles and potentially seven more? Is that in the works?
02:41:03.660
Yeah. My students have put it up at restoringmedicine.org, a basic code of conduct for
02:41:08.700
medical centers. But it's not just docs. It's not just medical professionals. I have people all the
02:41:14.500
time. Everyday folks, if I speak to a conference of, say, real estate agents and we get into all
02:41:19.500
these issues, they'll often say, and I want to do something. What can I do? And I tell them, get
02:41:25.000
involved in your local hospital. It is a community organization. It's a nonprofit with a public mission.
02:41:30.800
And ask these questions. How do you manage patients who can't pay? If their deductible is high and they get
02:41:37.600
a bill or they're uninsured, how do you bill? What's your average markup? Is it 1.5? Is it 2.5?
02:41:45.020
Is it 23? Like we found in some of our research, what is your average markup defined as how much do
02:41:51.240
you charge above the Medicare allowable amount? We did get the Trump administration. I was very
02:41:55.740
impressed. Seema Verma, Alex Azar, Kelly, I mean, incredible folks that basically said, yeah, we get it
02:42:01.060
when it comes to deferred pricing. We want every hospital to submit their prices. And they did that
02:42:05.580
January 1. It's a first step. It's a first step. These are jacked up prices. We got to get the real
02:42:09.760
prices. But everyday folks want to know what to do. I tell them, find out what's your hospital's
02:42:15.680
average markup. How do they handle bills that are not paid among low-income insured and uninsured
02:42:20.140
people? Reach out to your local courthouse. Find out if they're suing the socks off of the town,
02:42:25.740
like we've seen in 20% of hospitals in the state of Virginia. And then reach out to your board members
02:42:31.020
and ask them, engage them on the subject. And the hospital board members, it's always the
02:42:36.420
president of the local bank. It's always a couple of business leaders. They're always reasonable
02:42:40.520
people. They come in. I'm on a hospital board. I got a meeting later today, Anne Arundel Medical
02:42:45.480
Center. It's at the big hospital in Annapolis, Maryland. These are good people. Appeal to those
02:42:50.080
people and say, look, we want to take this code of conduct seriously. We want a hospital that provides
02:42:56.080
roughly 6% of our services as charity care disclosed up front to the patient. Not, we shake you down
02:43:04.020
and whatever we can't get out of you. Whatever we can't get, we deem charity. We deem charity, which is
02:43:08.240
the standard way of doing business. 6%, charity, honest pricing, honest billing practices. Those are
02:43:14.940
things we can engage our community board members on. That's the purpose of writing this book, The Price
02:43:21.140
We Pay. You know, when you write a book, especially as a doctor, maybe especially even as a surgeon,
02:43:26.140
some people who don't like this message will ascribe to you, and I know you're working on
02:43:30.720
a book. People will ascribe, oh, they're self-promoting. They're just doing this for
02:43:35.080
self-promotion. What's known among authors is the books don't make money. You don't make them for
02:43:39.940
the time you spend. I mean, I make a lot more money just doing surgery, but this is a way of getting
02:43:44.940
the message out there and to engage people and to say, hey, this is what's happening and this is what
02:43:50.020
we can do about it. Well, Marty, I know you do have to get down to Annapolis today, so I guess
02:43:54.160
we'll bring this to a close. I think there are a lot of things here. It's sort of overwhelming. As
02:43:57.940
I said, I can't really think of a machine that I find more confusing than the U.S. healthcare
02:44:03.280
system, and that in general probably isn't a good thing. I hope that you're right. I mean,
02:44:08.380
I got to be honest with you. I'm concerned that the force necessary to overcome the inertia is so
02:44:13.660
great that we need a bigger crisis because in the end, we'll do things until we can't do them
02:44:20.820
anymore. We always talk about, well, this isn't sustainable. Well, technically it is because we're
02:44:24.880
still doing it, right? What does it take for this to not become sustainable? I don't know, but I love
02:44:31.340
your message that doctors need to sort of get involved in this a little bit because by proxy,
02:44:37.600
we are involved in it, whether we want to be or not. So you take that example of a woman,
1.00
02:44:41.460
if you provide care to this woman with breast cancer and you're doing the best you can,
02:44:45.920
and you don't realize that a year later she's getting shaken down for medical bills, well,
0.92
02:44:51.640
you can say, well, I didn't have anything to do with that. And it's true you didn't,
02:44:55.360
but do you also have an obligation to her? And if the answer to that question is yes,
02:44:59.380
then I think that doctors and patients alike can probably overcome what you're describing.
02:45:04.540
I hope that turns out to be the case. I'm seeing some exciting things. I mean, right now,
02:45:08.400
I think the American people are prioritizing this problem as the number one problem in America.
02:45:14.200
When the LA Times reporter Noam Levy tells me that more Americans are making different choices at
02:45:21.320
the supermarket, they're cutting their vacations, and they no longer have money to save for their
02:45:26.820
kids. And sometimes their FICA scores are getting destroyed, all because of surprise medical bills
02:45:31.840
or inflated bills. This is saying, and he's saying, this is going to be the number one issue
02:45:37.460
in the election. This is the number one issue for the American public. And my goal is how can we
02:45:42.520
educate people? I'm never going to run for office. I mean, I've thought about running for president
02:45:46.560
simply on one issue of banning all plastic surgery. Because I go to Florida a lot, you know,
02:45:53.260
it's the evolutionary reflex of a human being identifying another species and being frightened,
02:45:59.440
you know, like a kid, you know, if a kid sees someone ugly, they don't jump, but if they see someone
02:46:03.460
with all this plastic, they're startled. And it's sort of the natural selection of identifying
02:46:08.140
foreign species. But this is something that is imminently fixable. We're seeing employers now
1.00
02:46:13.220
saying, I want independent brokers and consultants renegotiating my PBMs that don't take kickbacks.
02:46:18.220
There's a group of them. There's not a lot. We put them on the website, Restoring Medicine.
02:46:21.560
Give me all the resources. So where can someone go if they want to know how to find an independent
02:46:25.420
versus a kickback broker? So Health Rosetta is started by Dave Chase. And what he's done is try to
02:46:31.120
create a brand of sort of the free trade brokers, if you will. That is those people that have agreed to a
02:46:37.400
code of conduct. And it's all transparent and you feel it's worth getting a second opinion.
02:46:43.460
Health Rosetta. If you Google Health Rosetta, it comes up. We're putting a link to it on our
02:46:49.520
Restoringmedicine.org. And we're trying to generate some interest. The students created the
02:46:53.920
website. I put a post on there that showed the prices of everything in America and prices of hospital
02:47:00.020
services, which was crazy off the charts compared to everything else in society. And this thing,
02:47:06.120
I just posted it. God, I don't know, 70 likes in a day or 70 shares in a day. I don't know if I have
02:47:13.020
70 friends. I realized like people are connecting with this issue that we can do better. So that's
02:47:20.260
Restoringmedicine.org basically can point people in the direction of all of the things you're
02:47:25.620
Yeah. And also I've got a website, martymd.com, where I try to provide some resources for folks
02:47:31.040
that are interested in learning more about this.
02:47:32.820
All right. And the price we pay comes out exactly when?
02:47:35.500
They're still floating the date, but it's going to come out when they line it up with
02:47:40.900
All right. Well, Marty, thank you so much, man. Awesome to get to hang with you two days
02:47:45.360
Great to be with you, Peter. It's just so awesome to see what you're doing, educating people
02:47:49.040
and promoting good health and re-educating us. And I'd like to see some humility from the
02:47:54.340
American Heart Association just to say, we're sorry. We got it horribly wrong, but I think
02:47:59.860
it's going to be individuals like you that just say, hey, stuff I was taught is now
02:48:04.580
outdated and this is the new science. So thanks for pushing us on that.
02:48:08.080
Well, I'll tell you, that seems like a much easier problem to sort of be working on than
02:48:10.960
the one you're working on. So I think you are actually working on the single most important
02:48:13.840
problem in all of medicine. And I don't say that lightly because I think there are a lot
02:48:16.900
of problems in medicine. But if we don't get this one fixed soon, we're going to be in,
02:48:21.440
I think, a degree of pain that most people can't fathom from an economic sense.
02:48:26.620
You can find all of this information and more at peteratiamd.com forward slash podcast.
02:48:34.720
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02:49:08.320
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02:49:42.100
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