Salary vs. Fee For Service: Good vs. Evil?

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A colleague said, “Salaried clinicians:  we only care about the patients; patient care.  You guys; you always think about billing.  We only think about patients.”

Salaried physicians and nurses claim moral purity.

  • They never consider money when caring for patients.
  • They care selflessly.
  • Though grateful for their pay, it never comes to mind when they provide care.
  • They own the high-road…

At least until their shift ends.

  • Or they go on break.
  • Or they have a sniffle and need a sick day.
  • Or they want to go to a popular parade and use a sick day to do so.

Go ask them: salaried workers insist they provide better care because their concern is unadulterated by money.  Just don’t ask whether their purity is influenced by the attention they give to the clock.

How to make more money

To make more money on fee for service you need to work MORE.  You need to see more patients, perform more procedures, and somehow do more work.  You have to help more people.

To make more money on salary you need to work LESS.  Your earnings per hour of work increase if you spend more time not working (breaks, lunch, clean-up, etc.).  Your earnings per unit of effort rise if you expend less effort; in other words, work less.

How to challenge altruism

Salaried workers – ask them to skip a break, stay late, or come in to work for free…or even just forgo overtime.

Fee for service workers – ask them to do something they cannot bill for.

Working for free

Salaried workers occasionally work without pay to see patients by staying late or shortening their coffee or meal breaks.  Those who do so routinely are pitied by their peers for working any harder than necessary or for not being skilled enough to take their full break times.

Fee for service providers continually provide care for free because so many necessary things are unbillable.  Dozens of times each shift providers are asked to do necessary things for which they cannot bill.

Yes but…

What about guys who bill for work they didn’t do?  That’s called fraud; you must report it.  People lose their licence and could face criminal charges or jail time.  You cannot dismiss fee for service with hand-waving about fraud.

Don’t fee for service workers cut corners?  Don’t they leave out patient education, thorough physical exam, note taking, etc., etc., etc.?  Without question, FFS workers face the temptation to shorten clinical encounters just as salaried workers face the temptation to lengthen them by doing things that do not add value for patients to avoid burning energy seeing new patients.

Solutions?

Ask patients.  Measure outcomes.  Report performance.  Reward efficiency.

We should compare payment using criteria that add value for patients: patient satisfaction scores, patient wait times, clinical quality indicators.  We should not invent arbitrary measures of quality (e.g., long charts) that often add no value to patients.

Moral corruption exists everywhere: in both salaried and fee for service settings.  People determined to get paid for doing less than necessary will succeed regardless of the remuneration model.

Let’s focus on outcomes.  Judging others’ motives gets us nowhere.

See What We’re Trying Next to Improve ED Patient Satisfaction, Quality and Flow

So far, we’ve posted what works.  In two days, we will try something that (almost) never works.

MP900309330

 

Does repeated failure mean something is impossible?

 

Hundreds of teams of really smart people have failed to improve outcomes and efficiency by putting physicians at triage.   In some cases, flow did not change.  In others, costs were too high.  We want to try it anyways.

 

 

Why would we bother?

Pros

It’s what we want for our families.  

When nurses and physicians need a medical opinion, they go straight to the nearest MD they trust.  Direct access.  All the non-value added steps removed.

Time equals quality in emergency medicine.  

The sooner we diagnose and treat patients, the higher quality of care we can guarantee.

Irresistible.  

The chance to radically improve flow and efficiency is just too attractive to ignore.  Imagine being able to see and treat even 10% of your patients out front – a chunk of patients would never enter the ED.  30 fewer patients and family members packed into the bowels of the ED seems reason enough to try it.

Fewer steps = lower cost.  

If we could exam and begin treatment without a lengthy pre-screen, triage and registration process, we would decrease the number of providers involved and decrease patient length of stay.  Staffing costs and length of stay directly impact efficiency.

Parallel processing beats sequential processing.  

Modern ED Triage is sequential.  It’s guaranteed to become a bottleneck unless an oversupply of staff continually support it.  A parallel RN-MD clinical stream right at the front door seems destined to succeed.

Cons

“If it ain’t broke…”  

We’ve ranked with the top 3 EDs in Ontario for time to physician initial assessment (PIA) for 18 months.  Our average PIA hovers just under 1 hour.  However, Voltaire said, “The good is enemy of the best” (approximately).  Unless we continually improve, we will slip back.

Everyone failed – why won’t you?  

Failed attempts don’t mean something is impossible.  As Thomas Edison said, “I have not failed.  I’ve just found 10,000 ways that won’t work.”  If a concept seems logical and irresistible, it’s worth trying again.  Also, St. Joe’s Hamilton seems to enjoy early success with their recent attempt at putting a physician at triage which inspires us to try it for ourselves.

We’ll let you know how it turns out when we try it in 48 hrs.  Please share your thoughts below – tell us what we need to know.  There’s still time to change what we’re about to attempt!