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Healthy Choice

IMG_3546I read an interesting article in the Economist about Kaiser hospital’s integrated, efficient approach to health care.  I have been a Kaiser member since high school. Only once did I lapse.  When I got my first full-time job, I thought I’d try a PPO. Everyone at work said I had to try their well-regarded physician or dermatologist.  I agreed.  I was an adult and I figured it was finally time to pick and choose the best providers.  But the best providers came at a hefty price.  After routine appointments, I received exorbitant bills in the mail.  One year later, I was back at Kaiser.  I had seen what it was like on the other side and I preferred my HMO. Kaiser was cheap and good enough.

I’ve grown to like Kaiser more and more since then.  The wait times have drastically improved.  I get emails reminding me to make appointments for routine exams.  My copayments are $20.  My prescriptions are $10.  No hidden fees.  No extra bills in the mail. I also think the doctors are the very best in their field.  Even if I were a millionaire, I’d stick with my Kaiser plan.

The Economist article described what makes Kaiser’s approach successful: fixed pricing, technology, integrated computer systems, and an incentive structure that promotes prevention and well-being.  An illustrative example of prevention is Kaiser dentists apply a coating on teeth that prevents cavities, saving the organization money in the long-run.  Most dentists don’t do this because more cavities means more revenue.

Apparently, Kaiser’s approach is hard to replicate, but still a fascinating example of success in an industry considered untreatable.

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05.03.10

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Welcome to my site, derived from an advice column I wrote while getting my MBA. I live in the San Francisco Bay Area. I give helpful, opinionated advice based on my own experience and from the expertise of my extensive network. For more, click here.

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