Insurers Battling Hospitals in a New Game


It just amazing when different parties involved in the healthcare system try to game the system…..and each other.  I don’t even know who is wrong?  The new scam involves hospitals offering to pay the insurance premiums for the people who can’t get on Medicaid but also who can’t afford (or just won’t buy) a health exchange plan.   They would pick those patients that are frequent fliers. Why?  Because by giving these people coverage it will pay off in the long run because they are now covered for the big bills at the hospital.   This amount would far outweigh the insurance premiums.   It is like an insurance policy for the hospital that buys insurance that screws over the insurance companies.    Oh, boy, this is getting good.

Douglas Farrago MD

Douglas Farrago MD is a full-time practicing family doc in Forest, Va. He started Forest Direct Primary Care where he takes no insurance and bills patients a monthly fee. He is board certified in the specialty of Family Practice. He is the inventor of a product called the Knee Saver which is currently in the Baseball Hall of Fame. The Knee Saver and its knock-offs are worn by many major league baseball catchers. He is also the inventor of the CryoHelmet used by athletes for head injuries as well as migraine sufferers. Dr. Farrago is the author of four books, two of which are the top two most popular DPC books. From 2001 – 2011, Dr. Farrago was the editor and creator of the Placebo Journal which ran for 10 full years. Described as the Mad Magazine for doctors, he and the Placebo Journal were featured in the Washington Post, US News and World Report, the AP, and the NY Times. Dr. Farrago is also the editor of the blog Authentic Medicine which was born out of concern about where the direction of healthcare is heading and the belief that the wrong people are in charge. This blog has been going daily for more than 15 years Article about Dr. Farrago in Doximity Email Dr. Farrago – [email protected] 

  1 comment for “Insurers Battling Hospitals in a New Game

    December 27, 2013 at 2:02 am

    Reminds me of a situation about ten years ago when a 500+ lbs pt was admitted to the boutique institution where I worked. Someone forgot to do the wallet biopsy; she was totally medically destitute. After hours of CABG effort with arrests, she was admitted to our ICU. The cardiologist was speaking to the family after her admission, and informed them that it was going to be rough; we would do all we could, however. At this point the daughter, who appeared to be the spokesperson, asked; “Do yuh think we oughta take her to the ‘merguntcy room?” The attending, with a completely straight face, replied, “No, I think we can handle it here.” After many, many efforts we managed to extubate her, however she was still on a heavy load of various cardiac meds. Shortly after that, she arrested again and it was decided to do a trach, for expected multiple episodes of respiratory difficulties of various types. We ended up with her on a medical floor with a good old MA-1 ventilator for use only at night. After an extended stay with various episodes of cardiac, respiratory, and diabetic problems, none of which were reimbursed, the hospital sent her to a nursing facility where she could receive needed care, at the hospital’s expense. It was far cheaper than keeping her in one of our very expensive hospital rooms. Eventually, after many months of care, she did expire.

    Just as a side note, the social workers and their cohorts did attempt to obtain Medicaid and all other coverages: the family had no records to submit, as all worked only intermittantly, “for cash.” They at no time were able to present any type of financial records, tax records, anything.

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