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The Bankrupting of American Healthcare:
$20 Billion, Many Lives Lost Each Year
Cost Analysis Details Startling Waste
Perverse Heart Health Practices Enrich the
Few and Condemn the Many
A great debate is raging in America today regarding the
bankrupting of the American healthcare system. As costs go up
by double-digit percentages, fewer people can afford
healthcare. Those who can afford it spend an increasingly
greater portion of their disposable income to maintain it. It
is predicted that, at the current rate of growth, healthcare
costs will balloon to absorb 20% of American Gross Domestic
Product (GDP), about 4 trillion dollars, in the next ten years1.
Such a trend cannot be maintained and will indeed bankrupt the
American healthcare system if it continues unabated
However, there is an even more perverse angle, an ethical
bankrupting, when considering the cost of heart healthcare.
Effective treatment tools and powerful strategies for the
prevention of heart disease are available. Yet the great
majority of cardiologists, along with institutions such as
major heart centers and the American Heart Association, do
little to promote these practices, preferring to silently keep
Americans sick so they will continue to require expensive
interventional procedures and drugs to stay alive.
The following is a thumbnail exposé that examines the
financial and ethical impropriety of the American heart
healthcare system. It is accompanied by a financial analysis
that finally puts a hard number on the financial cost.
Heart Disease is America's #1 Health
Problem and Health Cost
According to the American Heart Association, cardiovascular
disease affects one-third of all Americans and accounted for
36.3% of deaths in 2004 (the most recent year available)2.
The Agency for Healthcare Research and Quality (AHRQ) places
heart disease as not only the highest healthcare cost category
(10% of all health costs), but also as the fastest growing
(45.6% growth between 2000 and 2004)3.
Not surprisingly, the AHRQ also placed heart drugs at the top
of the prescription drug spending list, topping the next
closest drug class by 29%. This ranking was exclusive of
anti-cholesterol drugs. Together, these two drug classes
accounted for 30% more spending than the other top drug classes
combined.
The tremendous cost of heart care is driven by a quiet
conspiracy of ignorance, public demand, and an exquisitely
tuned scientific and industrial machine that churns out
remarkable drugs and procedures capable of pulling lives back
from the precipice of death. It is only natural that the public
would want, and pay any price for, such miracles. What is
unnatural is for the traditional medical establishment to allow
the public to teeter on that precipice in the first place, all
while the public remains ignorant and all too often for the
sake of profit. When a hospital builds and heavily promotes a
new "heart center," expenses have to be recovered somehow. When
we hear young cardiologists lament, "I have to find a way to do
more procedures," we should begin to worry.
The implication is ominous. Heart care is already the single
largest healthcare category with a projected growth rate that
threatens to consume outrageous portions of the American
healthcare budget. Traditional medicine remains entrenched in a
practice that is, at best, old and inefficient and at worst,
driven disproportionately by profit. With such a voracious
appetite for healthcare dollars, can it be long before the
entire system collapses under its own weight?
Crash and Repair
The "dirty little secret" surrounding the outrageous rise in the
cost of heart care is a failure for the medical community to embrace
groundbreaking advancements in the understanding and prevention of
heart disease. When applied to heart care, the old adage, "An ounce
of prevention is worth a pound of cure" could be more appropriately
re-scaled to, "A gram of prevention is worth a metric ton of cure."
Imagine that instead of promoting the use of seatbelts to reduce the
incidence of life-threatening and traumatic crash injuries, the
government mandated that trauma centers be built every ten miles along
interstate highways. The convoluted reasoning would be that, with all
the modern advances in emergency room treatment, just think of how many
lives could be saved if more people could get to the operating room and
in less time (frequently touted in heart center ads as "door to balloon
time"). This can be best characterized as the "crash and repair" model
for heart care.
That perverse and cost prohibitive thinking is exactly what is being
promoted by the traditional medical establishment. Recently, a
prominent cardiologist and Fellow of the American College of Cardiology
wrote an opinion piece calling for the "greatest push in the history of
American cardiac medicine" in order to "improve accessibility to primary
percutaneous-based intervention" given the "Improved pharmacologic
therapy, better stent platforms, and the advancement of wire
technology."5 In
effect, the call was to build more facilities, train more personnel, and
provide greater access to surgical procedures rather than focus on
prevention. The aforementioned
cardiologist is also the co-director of a statewide pilot project for
primary angioplasty. A coincidence?
Clearly, like a seatbelt, preventive measures for heart disease are
far more cost effective and extract a far lower toll in human suffering
than the "crash and repair" approach. So, one must ask, "What drives
the traditional medical community to favor this patently irrational
strategy?" Is it ignorance of equally impressive advances in preventive
medicine? Is it fear of losing the prestige and motivation of being
characterized as life-saving heroes? Or, is it the fact that selling
$10 "seatbelts" is not as profitable as selling $100,000 surgical
procedures?
The Truth About Modern-Day Heart Disease
Prevention
Cynics may come to the conclusion that doctors are allowing
patients to become ill to ensure a steady supply of customers for
high-priced heart care drugs and procedures. Remember, someone has
to pay for all those shiny new heart centers.
Modern-day prevention is predicated on a new understanding of
heart disease as a chronic disease that only becomes symptomatic
after years of silent festering. It is estimated that 48% of all
Americans suffer some degree of coronary heart disease. It has also
been discovered that the overwhelming percentage (>90%) of heart
attacks occur at arterial sites harboring this "silent disease" and
are undetectable using traditional diagnostic methods such as stress
testing. The technological development of tools to detect this
earlier, chronic form of coronary heart disease is poised to put an
to end the “crash and repair” paradigm of care. In fact, the public
now has access to remarkable advancements in heart disease
prevention that are readily available for significantly less cost
than traditional "crash and repair" healthcare.
Advances in CT heart scanning provide a fast, relatively
inexpensive, and non-invasive method of detecting and tracking
silent heart disease decades before expensive "repairs" are required. Combined with modern approaches that include
blood lipoprotein analysis, modest life-style changes, dietary
supplements, and judicious use of prescription agents, most heart
disease can be reversed, stopped, or slowed to a point where a
normal-length, quality life span can be enjoyed without the need for
surgical procedures or extensive drug regimens.
In addition to improving the length and quality of human life,
the prevention model is radically less expensive. Given that heart
disease is, and will continue to be, the highest cost segment of
health care, any serious discussion about saving the American
healthcare system from bankruptcy would be most productive if
focused on this segment of healthcare costs.
Defining the Hard Costs
A cost per patient model was developed using 40 variables derived
from American Heart Association occurrence data, clinical
observations from a typical cardiology practice, and typical medical
procedure and drug costs. The standardized population used for these
calculations are males aged 40 to 59 followed over a 12-year period,
representing a population segment for which reliable epidemiological
data is readily available. The default medical procedure costs used
are based on published averages. Costs for workdays lost and
death/replacement will vary from company to company and represent
typical estimated cost.
A cost comparison algorithm and calculation tool was developed to
process the data. A functional copy of the tool appears at the conclusion of this
report along with a table defining the algorithmic variables and
assumptions used. Cost data for different regions, corporations,
etc. can be modified using this tool to generate custom cost
comparisons and "what if" scenarios. The savings generated represent
the total costs saved over a 12-year follow-up period for the
target population.
The traditional "crash and repair" model uses standard stress
testing to identify at risk patients and then calculates the cost to
"repair" them. This method results in more "crashes" because
stress testing is only effective at detecting advanced heart
disease. The prevention model uses heart scanning to identify
at risk patients decades before they "crash" and are in need
of "repair" (i.e. require extensive surgical intervention and drug
treatment). Even though preventive maintenance costs are
slightly higher, this cost is dwarfed by significant reductions in
surgical intervention and follow-up care costs.
The Cost Savings of Heart Disease Prevention
The cost comparison tool calculates a potential savings of over
$630 million ($53 million per year) per 100,000 persons achieved by
using modern prevention techniques in place of traditional cardiac
practice. The US Census Bureau estimates (2006 projection) that
there are approximately 41 million males aged 40 to 59 (the target
population used in the comparison algorithm). This translates to a
total savings of over $246 billion dollars over 12 years (over $20
billion per year). It is important to keep in mind that this figure
is only for males aged 40 to 59 and does not include any other
segment of American society. Adding males over age 59 (a group in
which most heart attacks and other cardiovascular events occur) and
all women would likely increase these figures several-fold.
The implications are clear. A heart disease prevention philosophy
is financially, ethically, and socially superior to the current
state of heart healthcare in America. Adopting these precepts is an
essential first step in solving the growing problem of burgeoning
healthcare costs and the societal damage inflicted by allowing a
correctable disease to progress to the point where death or
irreparable damage occurs.
Article References:
1. Borger, C., et al., "Health Spending Projections Through 2015:
Changes on the Horizon," Health Affairs Web Exclusive W61: 22
February 2006.
2. American Heart Association. Heart Disease and Stroke Statistics
(12-18-2007 Update).
3. Agency for Healthcare Research and Quality. "The Five Most Costly
Conditions, 2000 and 2004: Estimates for the U.S. Civilian
Noninstitutionalized Population," March 2007
3. Agency for Healthcare Research and Quality. "The Top Five
Therapeutic Classes of Outpatient Prescription Drugs Ranked by Total
Expense for Adults Age 18 and Older in the U.S. Civilian
Noninstitutionalized Population, 2004," December 2006
5. Melissa Walton-Shirley, MD, FACP, FACC, "It
Should Be the Right of All Americans to Have Primary
Percutaneous-Based Intervention for Acute Coronary Syndrome" WebMD, Medscape Today,
June 4, 2007
Heart Care Cost Calculator Enter the number of persons in the sample population
(e.g. the number of employees in a company)
under investigation then click the
"Calculate Costs" button to display the potential cost savings for
prevention versus traditional heart care over a 12 year follow-up
period. You may run custom "what if" scenarios by entering your own data in
the "Percent" columns of the two cost breakdown tables below
(i.e. the percent of your sample population that will incur each cost) and the
"Cost" column (your actual cost for each item) in the "Cost Assumptions" table and
then clicking the "Calculate Costs" button to recalculate.
Click the "Reset Defaults" button to restore the original assumptions.
Click the "Print Form" button to print a copy of any set of calculations.
Breakout cost data appears in the tables below. Refer to the
footnotes at the bottom of the page for more information on each component
of the calculations.
|
| Footnotes |
| The variables and default
assumptions used in calculating percentages are derived from American
Heart Association occurrence data and clinical observations over a
12-year period. The standardized population used for these
calculations is males aged 40 to 59. The default costs are based on published averages. |
| # |
Description |
| 1 |
The percent of the sample
population that will undergo stress testing for any reason under
traditional medical care. It is used to calculate the number of
persons that will receive a stress test then multiplied times the stress
test cost (variable 30) to yield a total cost for stress testing. It is
estimated that 25% of all persons will receive a stress test during the
12-year analysis period. This
value may be modified to reflect custom scenarios. |
| 2 |
The percent of persons receiving a stress
test who
will ultimately undergo a stent or angioplasty procedure under traditional medical
guidelines. This percentage is multiplied by the number of persons stress
tested then multiplied by the cost of the procedure (variable 31) to
yield a total cost for catheterization procedures. This value may
be modified to reflect custom scenarios. |
| 3 |
The percent of persons receiving a stress tested who
will ultimately undergo heart bypass surgery. It is multiplied by the
number of persons stress tested then multiplied by the cost of the procedure
(variable 32) to yield a total cost for bypass procedures. This
value may be modified to reflect custom scenarios. |
| 4 |
The calculated days lost due to procedures
1-3. It is calculated by multiplying the number of persons
undergoing each procedure by its corresponding "Days Lost" assumption
(variables 38, 39, 40). The cost for days lost is then multiplied
by the per day cost assumption (variable 37). |
| 5 |
The percent of persons who will be
diagnosed with a heart attack under traditional medical care. It is calculated
by multiplying the the number of persons experiencing a heart attack by
the heart attack cost (variable 33). The heart attack cost is
based on all costs involved in diagnosing and treating a heart attack
that are not directly related to procedures 1-3. This value may be modified to reflect
custom scenarios. |
| 6 |
The percent of heart attack patients who
will undergo a stent or angioplasty procedure. This value is multiplied by
the number of persons experiencing a heart attack then multiplied by the cost
of the procedure (variable 31) to yield a total cost for catheterization
procedures. This value may be modified to reflect custom
scenarios. |
| 7 |
The percent of heart attack patients who
will undergo a heart bypass surgery. Ths value is multiplied by the
number of persons experiencing a heart attack then multiplied by the cost of
bypass surgery (variable 32) to yield a total cost for bypass procedures.
This value may be modified to reflect custom scenarios. |
| 8 |
The percent of heart attack patients under
traditional medical care who will die during the 12-year study period.
The number of persons is multiplied by the Death/Replacement cost
(variable 36) to generate a total Death/Replacement cost (cost to
replace and retrain lost workers). This value may
be modified to reflect custom scenarios. |
| 9 |
The calculated days lost due to procedures
6-7. It is calculated by multiplying the number of persons
undergoing each procedure by its corresponding "Days Lost" assumption
(variables 38, 39, 40). The cost for days lost is then multiplied by the
per day cost assumption (variable 37). |
| 10 |
The percent of the standard population
that will be treated with drug therapy for diagnoses related to heart
disease. It is multiplied by the yearly cost of drug treatment under
traditional medical care (variable 34) to calculate a 12-year cost.
The drug cost was further discounted by calculating a present value
(assuming 3% interest) for the total 12 year cost.
This value may be modified to reflect custom scenarios. |
| 11 |
The percent of the standard population
that will have undergo a heart scan as a participant in a prevention
program (100%). It is multiplied by the cost of a heart scan
(variable 29) to yield a total cost for heart scans. This analysis
assumes only one heart scan is administered at the start of the
prevention program. |
| 12 |
The percent of the standard population
that will have a non-zero calcium score (evidence of heart disease) as
determined by heart scan. This value may be modified to reflect custom
scenarios. |
| 13 |
The percentage of persons with a
non-zero heart scan score who are in the highest 10% of heart scan
scores
for their age. This is the highest risk group for heart attack.
This value may be modified to reflect custom scenarios. |
| 14 |
The percentage of persons in item 13 who
will be instructed to undergo a stress test as a result of the heart
scan score. This value may be modified to reflect custom
scenarios. |
| 15 |
The percentage of persons in item 14 who will undergo a stent or angioplasty procedure as a result of their
stress test. This value may be modified to reflect custom
scenarios. |
| 16 |
The percentage of persons in item 14 who
will undergo bypass surgery as a result of their stress test. This
value may be modified to reflect custom scenarios. |
| 17 |
The calculated days lost due to procedures
14-16. It is calculated based on the Days Lost assumptions
(variable 38, 39, 40). |
| 18 |
The percentage of persons with a raw
heart scans scores above 100 who are in the lowest 90% of heart scan
scores for all persons
their age. This is the moderate risk group for heart attack.
This value may be modified to reflect custom scenarios. |
| 19 |
The percentage of persons in item 18 who
will be instructed to undergo a stress test as a result of the heart
scan score. This value may be modified to reflect custom
scenarios. |
| 20 |
The percentage of persons in item 18 who will undergo a stent or angioplasty procedure as a result of their
stress test. This value may be modified to reflect custom
scenarios. |
| 21 |
The percentage of persons in item 18 who
will undergo bypass surgery as a result of their stress test. This
value may be modified to reflect custom scenarios. |
| 22 |
The calculated days lost due to procedures
19-21. It is calculated based on the Days Lost assumptions
(variable 38, 39, 40). |
| 23 |
The percentage of persons with
non-zero raw heart scan scores below 100. This is the lowest risk
group for heart attack. This value may be modified to reflect custom
scenarios. |
| 24 |
The percentage of persons in item 23 that
will be instructed to undergo a stress test as a result of the heart
scan score. This value may be modified to reflect custom
scenarios. |
| 25 |
The percentage of persons in item 23 that
will undergo a stent or angioplasty procedure as a result of their
stress test. This value may be modified to reflect custom
scenarios. |
| 26 |
The percentage of persons in item 23 that
will undergo bypass surgery as a result of their stress test. This
value may be modified to reflect custom scenarios. |
| 27 |
The calculated days lost due to procedures
24-26. It is calculated based on the Days Lost assumptions
(variable 38, 39, 40). |
| 28 |
The number of persons in the prevention program
population that will be treated with drug therapy only for diagnoses related
to heart disease (the cost of drugs is already included in the costs for
persons undergoing procedures such as stents and bypasses). The default
drug cost assumption is 50% higher
than for the standard population (variable 35) in order to provide a
conservative estimate that accounts for aggressive treatment. The
drug cost was further discounted by calculating a present value
(assuming 3% interest) for the total 12 year cost. |
| 29 |
The average cost for a heart scan.
This value may be modified to reflect custom scenarios. |
| 30 |
The average cost of a nuclear stress test.
This value may be modified to reflect custom scenarios. |
| 31 |
The average cost of a cardiac
catheterization to implant a stent or perform a balloon angioplasty.
It also includes all follow-up care including drug therapy for 12 years
post-procedure. This value may be modified to reflect custom scenarios. |
| 32 |
The average cost of a heart bypass
operation. It also includes all follow-up care including drug
therapy for 12 years post-procedure. This value may be modified to
reflect custom scenarios. |
| 33 |
The total of all costs involved in the
diagnosis and treatment of a heart attack excluding those covered in
items 31-32. This value may be modified to reflect custom
scenarios. |
| 34 |
The average cost of standard drug therapy
for person diagnosed with heart disease. This value may be
modified to reflect custom scenarios. |
| 35 |
The average cost of drug therapy for
person diagnosed with heart disease in a prevention program. These
costs are typically 50% higher than standard drug therapy because of the
aggressive heart disease prevention protocols in some prevention programs.
This value may be modified to reflect custom scenarios. |
| 36 |
The average internal corporate cost to
replace an employee due to death. This value may be modified to
reflect custom scenarios. |
| 37 |
The average cost of a lost workday due to
employee absence. This value may be modified to reflect custom
scenarios. |
| 38 |
The average number of workdays lost due to
absence in order to undergo a stress test. This value may be
modified to reflect custom scenarios. |
| 39 |
The average number of workdays lost due to
absence in order to undergo a stent or angioplasty procedure. This
value may be modified to reflect custom scenarios. |
| 40 |
The average number of workdays lost due to
absence in order to undergo a heart bypass operation. This value
may be modified to reflect custom scenarios. |
Additional References for
Calculation Algorithm:
Distribution of calcium scores
Hoff JA, Chomka EV, Krainik AJ et al. Age and gender distributions of
coronary artery calcium detected by electron beam tomography in 35,246
adults.
Mitchell TA, Pippin JJ, Devers SM et al. Age- and sex-based nomograms
from coronary artery calcium scores as determined by electorn beam
computed tomography. Am J Cardiol2001;87:453–456.
Nasir K, Raggi P Rumberger JA et al. Coronary artery calcium volume
scores on electron beam tomography in 12,936 asymptomatic adults. Am J
Cardiol 2004;93:1146–1149.
Cost of cardiac care
McCollam P, Etemad L. Cost of care for new-onset acute coronary syndrome
patients who undergo coronary revascularization. J Invasive Cardiol 2005
Jun;17(6):307–311.
Hlatky MA, Boothroyd DB Melsop KA et al. Medical costs and quality of
life 10 to 12 years after randomization to angioplasty or bypass surgery
for multivessel coronary artery disease. Circulation 2004;110:1960–1966.
Eisenstein EL, Shaw LK, Anstrom KJ et al. Assessing the clinical and
economic burden of coronary artery disease:1986–1998. Med Care 2001
Aug;39(8):824–835.
American Heart Association, 2005 Update.
Prevention
Brown BG, Zhao XQ, Chait A et al. Simvastatin and niacin, antioxidant
vitamins, or the combination for the prevention of coronary disease. N
Eng J Med 2001;345:1583–1592.
Stafford RS, Blumenthal D, Pasternak RC. Variations in cholesterol
management practices of U.S. physicians. J Am Coll Cardiol 1997
Jan;29(1):139–146.
Kalia NK, Miller LG, Nasir K et al. Visualizing coronary clalcium is
associated with improvements in adherenece to statin therapy.
Atherosclerosis 2005 Jul 25; [Epub ahead of print] |
Copyright 2007, Track Your Plaque.
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