Business Insight presented by Arlington Dermatology What is happening with healthcare? Watching the news today can give you a headache. No matter what media sources you get your news, it is overwhelming to register, analyze, and memorize what is happening and where, and who is responsible for what. I do not even want to mention right/wrong issues, because this would already go too far to opinions. My worry is about factual events in healthcare. So, what is happening? First of all, so called, Medicare Advantage is trimming its services. I wrote before that Medicare Advantage or Medicare Part C is not really a Medicare plan. It was the private insurance industry getting funds from the government to design private plans in lieu of Medicare. Humana, Cigna and many others took advantage of this lucrative option, got paid by the US government and designed plans, promising tons of extra benefits that included 'free' stuff. If you lived long enough to be Medicare age of 65 plus, you know that nothing is free anymore. Well, these companies wasted a lot of money and lost a lot of money, and now, they decided to pull out from the seniors' market. News about it, coming daily here and there, and there is no real solution to what will happen to patients who used this option as their main insurance. There will be more private insurances announcing similar moves soon. Caring for seniors is not as profitable as they expected. Medical practices are closing, and hospitals are disappearing. This trend is mostly felt in small towns and rural areas, and communities known for high poverty rates. This is really sad as those communities receive minimal healthcare in general. Often, people have to travel 50-70 miles to see a doctor or get to the emergency room. Preventive care is not known there at all. There are at least two reasons for the trend: low compensation from public insurances and massive overtake of healthcare by private equity. Poor communities have low levels of employment, and it is low paid employment. Thus, people qualify for state-based assistance for healthcare, which, in many states, is close to nothing. Doctors and nurses deliver care, and they get paid months later and very little. You cannot operate like this for a long time. Thus, you terminate the services, and your community is forced to travel long miles to get basic care. Private equity became very popular in healthcare. The problem is that most PE companies and executives do not know much about medicine or healthcare at all. They invest money they borrow from banks and they're-structure' the facilities and medical practices. In reality 're-structuring' means cutting costs by terminating personnel, limiting resources and similar, in order to create artificial profit. Quality of care goes dramatically down, patients suffer and ultimately, patients go other places, leaving medical practices to go down. The private equity concept has nothing to do with improving healthcare. Contrary, it devaluates principles of what we understand healthcare should be. PEs do not create tangible products or services. They manipulate money to show profit. Quality outcomes are secondary to financial gains of investors. Patients often become victims of mishandling and malpractice. Certainly, there are ways of fixing this cash-focused system. And it does not need to be drastic. It just requires an open mind and understanding that our health is a gift and healthcare should be the right of all of us. Michael Bukhalo, MD Arlington Dermatology 5301 Keystone Court Rolling Meadows, IL 60008 Tel. 847 392 5440 | www.arlingtondermatology.net Business Insight presented by Arlington Dermatology What is happening with healthcare ? Watching the news today can give you a headache . No matter what media sources you get your news , it is overwhelming to register , analyze , and memorize what is happening and where , and who is responsible for what . I do not even want to mention right / wrong issues , because this would already go too far to opinions . My worry is about factual events in healthcare . So , what is happening ? First of all , so called , Medicare Advantage is trimming its services . I wrote before that Medicare Advantage or Medicare Part C is not really a Medicare plan . It was the private insurance industry getting funds from the government to design private plans in lieu of Medicare . Humana , Cigna and many others took advantage of this lucrative option , got paid by the US government and designed plans , promising tons of extra benefits that included ' free ' stuff . If you lived long enough to be Medicare age of 65 plus , you know that nothing is free anymore . Well , these companies wasted a lot of money and lost a lot of money , and now , they decided to pull out from the seniors ' market . News about it , coming daily here and there , and there is no real solution to what will happen to patients who used this option as their main insurance . There will be more private insurances announcing similar moves soon . Caring for seniors is not as profitable as they expected . Medical practices are closing , and hospitals are disappearing . This trend is mostly felt in small towns and rural areas , and communities known for high poverty rates . This is really sad as those communities receive minimal healthcare in general . Often , people have to travel 50-70 miles to see a doctor or get to the emergency room . Preventive care is not known there at all . There are at least two reasons for the trend : low compensation from public insurances and massive overtake of healthcare by private equity . Poor communities have low levels of employment , and it is low paid employment . Thus , people qualify for state - based assistance for healthcare , which , in many states , is close to nothing . Doctors and nurses deliver care , and they get paid months later and very little . You cannot operate like this for a long time . Thus , you terminate the services , and your community is forced to travel long miles to get basic care . Private equity became very popular in healthcare . The problem is that most PE companies and executives do not know much about medicine or healthcare at all . They invest money they borrow from banks and they're - structure ' the facilities and medical practices . In reality ' re - structuring ' means cutting costs by terminating personnel , limiting resources and similar , in order to create artificial profit . Quality of care goes dramatically down , patients suffer and ultimately , patients go other places , leaving medical practices to go down . The private equity concept has nothing to do with improving healthcare . Contrary , it devaluates principles of what we understand healthcare should be . PEs do not create tangible products or services . They manipulate money to show profit . Quality outcomes are secondary to financial gains of investors . Patients often become victims of mishandling and malpractice . Certainly , there are ways of fixing this cash - focused system . And it does not need to be drastic . It just requires an open mind and understanding that our health is a gift and healthcare should be the right of all of us . Michael Bukhalo , MD Arlington Dermatology 5301 Keystone Court Rolling Meadows , IL 60008 Tel . 847 392 5440 | www.arlingtondermatology.net