The Aurora Saga

So now we have Aurora St. Luke's Hospital (Milwaukee) looking to acquire Advanced Healthcare (the largest physician group in SE Wisconsin), and they've apparently tried to buy land to build a new hospital across the street from Community Memorial Hospital. And ProHealth (Waukesha Memorial) wants to buy Medical Associates (the second largest physician group in Menomonee Falls).

If St. Luke's and Waukesha control all the physicians in Menomonee Falls, what will happen to CMH? Where is our Certificate of Need program when you need it?

I wrote my state reps, Sen. Alberta Darling and Rep. Sue Jeskewitz, about it and received zero response (ZERO!).

So I decided to check the WDC contributor database and found a good reason for their inaction. Numerous campaign contributions from Aurora executives, including numerous from its former CEO, Ed Howe, to just these two state employees. A total of $90,000 and $8500, respectively, to Darling and Jeskewitz from all health care interests.

Look HERE to see Aurora Cash to Darling and Jeskewitz (click on the names at the bottom)

Both legislators have argued that campaign contributions do not affect their actions, but this certainly challenges that claim. Neither have been responsive to the need for a Medicare-for-all system, and Darling has co-sponsored the tax breaks for Health Savings Accounts. She would say it had nothing to do with the $29,028 she received from the insurance industry or $114,450 from Banking and Finance interests, but it sure gives a strong appearance that it does.


The argument of "free-market competition" is destroyed as this consolidation would eliminate competition, not bolster it. We are obviously going to have to find a more believable excuse in the future.


I recently had this exchange with a physician friend with knowledge of the efforts:

Jack: I am hearing that Aurora is now looking to buy up Advanced Healthcare and they want to build a new hospital across from Community Memorial Hospital (in Menomonee Falls). And ProHealth wants to buy Medical Associates. What is the scuttlebutt? If St. Lukes and Waukesha control all the docs in MF, what happens with CMH?

Doctor: The Advanced Health Care Board voted last month to accept Aurora's offer to buy the clinic and build them a new hospital near Cedarburg.  They need 2/3 of the physician owners to agree, with the vote to come in the next few weeks.  Lots of reluctance, but the proposed merger of Columbia St. Mary's and Froedtert may push the physicians over the edge.  Both Froedtert and Columbia St. Mary's employ large numbers of physicians who compete with Advanced.  Froedtert owns Community Memorial, and [are] primarily served by the Columbia St. Mary's and Medical College physician groups.  So Advanced is left out when the music stops if they don't join Aurora. Community Memorial could lose both Advanced and Medical Associates.  West Bend Synergy is also in talks with Aurora.   If Advanced goes to Aurora, the word [is that] Medical Associates will sell to Waukesha Memorial.  Lots of consolidation going on now, as the costs and complexity of doing business, compliance with insurance company documentation etc is driving independent practitioners out of business.  Just as the insurance companies are consolidating (United and Wellpoint control 2/3 of the insurance industry now) so we are seeing a consolidation of hospitals and physician groups.  There will probably be few independent hospitals or physicians in 10 years, and a huge shortage of physicians, as the new crop will work only 50 hours per week.

Jack: Wow. So even without a single-payer system the shortage of physicians will create wait times. And to top it off, the consolidations will drive down physician salaries and there will be fewer going into the profession!

Politics can work wonders. All of this because the politicians (a) gutted the Stark laws that prevented hospitals from employing physicians, and (b) terminated the CON that prevented hospitals from building wherever they wanted. I guess the old saying "be careful of what you wish for" sure applies here. So that means that Froedtert and Columbia will have to build a clinic in MF. But maybe the corporate CEOs will have the last word as they force the industry to managed-care-for-all.

Seems to me we should undo the political changes. Physicians are much better off being independent and in the driver's seat, rather than reporting to CEOs whose bottom lines are profits. Where is the Medical Society when you need them?

Doctor: AMA and State Medical Society all strongly oppose these moves, but are handicapped by deep pockets of the hospitals and insurance industry.  A single payer system is the only way out of this mess. (emphasis mine)

When the Doc says that "deep pockets" are standing in the way, my reps Sen. Darling and Rep. Jeskewitz and yours really ought to listen up. That translates to CASH going into their campaign coffers, and the implications are serious.

Hellooo up there....... Money wouldn't be given if it didn't work as intended!

One thing you can say about these kinds of issues: it sure keeps the campaign cash flowing, doesn't it? And, conveniently, from both sides of the issue!

See campaign contributions to Darling and Jeskewitz here, and for your own representatives here: Assembly and Senate (Click on the reps name and then "Follow the Money" in the upper right corner)

Aurora employees have contributed $67,865 since 1993 to members of the current legislature, and $55,025 to Governor Doyle.


Ours is a health care crisis, caused directly by our political crisis.

You can be sure that if private campaign cash were not changing hands, our health care problems would be fixed overnight! But that's the way our electoral system is designed. Our system virtually demands that private money finance campaigns, and government giveaways are the best way to get the money.
 

 


On physicians and Hospitals: I have the highest regard for (most) physicians, but I do not believe they should be employed by any hospital. They should be paid very well (in fact, better than CEOs) and should be free to admit to any hospital that serves the patient's best interests. Hospitals can also pay their physician employees "production bonuses" which can cloud that process, and they can apply what are in effect "physician sales quotas."

Having been in the health care field for 35 years I've been lucky to know the best (at least in cardiology). My own cardiologist, rather than putting me through an expensive cardiac cath that I requested and he would have benefited from, instead sent me to a second cardiologist for a noninvasive test that showed I didn't need the cath in the first place. That's what good physicians do.


On HSAs: Isn't it interesting that legislators who won't support taxpayer funding of health care, don't seem to mind the taxpayers subsidizing HSAs via tax breaks? That's obviously because the insurance companies help fund their elections and the taxpayers do not.