November 16, 2007
Theword of mouth
Analysis of:
Cigna reaches deal on doctors' rankings | news.yahoo.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Implications: Missing in the article is the fact patients will still go to the physicians that they like regardless of the rating system. This rating system of doctors is really economic credentialling. Insurance companies will lower reimbursement unit values of physicians that are not rated well.
Analysis: In the article mentioned above insurance giants Cigna discuss a system whereby doctors are rated for quality. While I believe this system will not have have a positive influence on the overall reputation of physicians, the practice of medicine will not drastcially change. Take for example the insurance comapnies themselves. There have been many articles and even movies that present the insurance companies as faceless uncaring corporations that regard the health of their patients as really a number, a premium to be collected. Yet these insurance companies continue to survive and even prosper. WellPoint made over $3.1 billion dollars last year. Compare that to the average physician in the United States who made say $150,000 and one might question if the two entities can diverge any farther apart. Reputations of physicians are really established by referrals. The preverbial " word of mouth " recommendation of colleagues and the physicians will still dominate. Patients like who they like.
Analysis: In the article mentioned above insurance giants Cigna discuss a system whereby doctors are rated for quality. While I believe this system will not have have a positive influence on the overall reputation of physicians, the practice of medicine will not drastcially change. Take for example the insurance comapnies themselves. There have been many articles and even movies that present the insurance companies as faceless uncaring corporations that regard the health of their patients as really a number, a premium to be collected. Yet these insurance companies continue to survive and even prosper. WellPoint made over $3.1 billion dollars last year. Compare that to the average physician in the United States who made say $150,000 and one might question if the two entities can diverge any farther apart. Reputations of physicians are really established by referrals. The preverbial " word of mouth " recommendation of colleagues and the physicians will still dominate. Patients like who they like.
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