Disclaimer: This series is personal recollection. A few details may be a
little off the mark - though not enough to undermine the message.

This issue is best understood with the background of three websites. The
first is an interview with William Hsiao, PhD.
http://www.cms.hhs.gov/about/history/hsiao.asp

The second is the RBRVS spreadsheet provided by SVMIC, the physician owned
liability carrier for Tennessee. 
http://www.svmic.com/  click "medical practice services" "2004 Medicare Fee"

Third: More about Dr. Hsiao:
http://www.hsph.harvard.edu/faculty/WilliamHsiao.html

In December of 1989 (approximately), physicians representing all the States
of the U.S. gathered in Dallas, TX for the AMA Interim meeting. The goal was
to develop a position on the RBRVS. However, initial discussions revealed a
wide and contentious gap between proceduralist and non-proceduralist. All
specialties were represented, except for the American College of Surgeons
(ACS), though many individual advocates of the ACS were present. William
Hsiao, PhD, a Harvard Professor, healthcare economist, and the principal
architect of the new RBRVS was invited, by the American Academy of Family
Physicians, to describe the program design and to answer questions for the
AAFP contingent of the AMA House of Delegates. The family physicians were
skeptical but willing to listen, while the proceduralists, in separate
sessions, with their own advocates, were determined to defeat any
endorsement. The debates in the 1989 AMA reference committees were sometimes
bitter and occasionally rancorous. 

In the AAFP membership briefing Dr. Hsiao presented an analysis of a
remarkably thorough and objective study; he reported family physicians'
compensation was only $.35 compared to the surgeons' $1.00 for work of equal
value. Dr. Hsiao used ophthalmology and cataract surgery, performed at a
cost of about $1,000, as an example. One member then recalled the case of an
80 year-old woman, nearly blind until cataract removal resulted in markedly
improved interaction and outlook. This physician opined the ophthalmologist
had been deservedly well-compensated for this remarkable outcome. Dr. Hsaio,
a dignified gentleman with very thick glasses, replied, "Yes, this is a very
valuable service. But, you see, there is a market for usefulness that has
not been met by Medicare. This surgical procedure must be weighed against a
set of spectacles enabling a child, otherwise nearly blind, to see. What is
the relative value?" Listening to that interchange, I, and I think most
other physicians in the audience, considered Dr. Hsiao and his life work
without the aid of corrective lenses . likely a laborer instead of a Harvard
PhD economist. By the end of the week, the AMA House had agreed to "endorse"
the RBRVS and the meeting ended on a congenial, if somber, note.

No one appreciated how the politics of RBRVS implementation could sabotage
our expectations. Nevertheless, those left feeling abused and unappreciated
in the wake of the RBRVS may consider the pre-RBRVS primary care
compensation, working for a relative one third of the surgeons' salary.
Remember, these comparisons are relevant to Medicare, with another, separate
set of rules applicable to commercial carriers. The next RBRVS installment
covers the impact of politics on a dysfunctional U.S. medical reimbursement
system.





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