CAN THIS BE RIGHT: A Physician Office Visit Is Worth Just $26?!

Surely I must have heard this before as people have been talking about low Medicare/Medicaid reimbursement levels for years. Somehow though, when I heard this number the other day it just seemed so ridiculous: primary care physicians are paid just $26 from Medicare for each (1/2 hour) office visit.

What behavior does this low reimbursement produce? Is the doctor motivated to jam more patients into every hour? Does the doctor have time to discuss preventive medicine and lifestyle changes? Is it easier - and more profitable - to instead 'prescribe' other tests, services and drugs that produce additional revenues?

And, if the more profitable revenue streams must come from services performed in a hospital setting, isn't it logical that physicians would align (sell) themselves to larger health systems?

At the root of many of our health care cost problems is a perverse system of government payment levels. Although private insurers pay more for like services, it is not all that much more and still off a model that is fundamentally flawed.

Is there a better example of how government is the problem, not the solution?!?! I'd love to hear more from other physicians about additional ways in which government and insurers incentivize incorrectly. Oh, but that probably won't happen as long as their contracts include 'Gag Clauses'!