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Sen. John McCain Economic Summit
Petasnick Part of Panel Discussion
 Froedtert & Community Health President & CEO Bill Petasnick was among the panelists who spoke at an economic summit held Wednesday by Sen. John McCain (right) in South Milwaukee. In the middle is Curt Culver, chairman & CEO of Mortgage Guarantee Insurance Corporation and also a Froedtert Hospital board member.
Petasnick Addresses Technology, the Economy and Health Care
Sen. John McCain held an economic summit with business leaders in South Milwaukee on April 16 at Bucyrus Erie plant. A panel discussion was monitored by Carly Fiorina, Former Chairman and CEO of Hewlett-Packard and included Froedtert & Community Health President and CEO Bill Petasnick.
In addition to Petasnick, the panel included Curt Culver from MGIC (and a Froedtert Hospital Board member); Jon Hammes, the Hammes Company; Paul Jones, A.O. Smith; Mike Knetter, UW School of Business, and John Torinus, Serigraph Incorporated.
Responding to a question about preparing the workforce for 21st century jobs, Petasnick commented, “Many new jobs in health care will be created and workforce development must be a part of any broader healthcare reform agenda. We are beginning to experience shortages and know that there will continue to be growth in the high-tech, high-skill jobs available in health care.”
McCain commented to the audience, “Bill is the president and CEO of one of the major healthcare providers”, then asked “Bill, why is it that every time there is a new technology in health care the costs go up? In every other sector of the economy — when new technology is introduced, the price goes down, but in health care, the cost goes up.”
Petasnick responded that “we have seen some efficiency as a result of technology, and we need to see more. There are a couple of issues. We have to ask — is all of the technology really warranted? Studies have shown that as much as 25 percent to 30 percent of health care provided is not useful. We have to evaluate the application of technology to make sure it isn’t just a marketing tactic, but truly meets a need. We also have to recognize that the new technology is being applied to people — that is different than other businesses.
“I think technology is having an impact on healthcare cost. Length of stay has dropped across the country. Froedtert’s length of inpatient stay is around five days — this is low, especially considering the very complex patients we serve. When I started in health care, cataract surgery included a seven-day hospital stay. Now, we do this on an outpatient basis. Technology does reduce costs.”
McCain responded, “Could part of that increase in healthcare costs be a form of defensive medicine?”
Petasnick replied, “Some of the cost reflects the need for tort and liability reform. These are not the only issues, but they are important ones."
McCain responded, “Life is full of anecdotes, but I was in Pittsburg yesterday and a young medical school graduate told me that he has more than $285,000 in debt from medical school.”
Petasnick responded, “Medical students are coming out with significant debts — $100,000 to $200,000. We need to include a review of education financing in healthcare reform, especially graduate medical education as a piece of the puzzle. These costs and debts have ramifications on who goes to medical school and in what specialties and areas of the country they decide to practice when they are done. Notably, the costs have limited the diversity of medical school classes. We have made progress in some areas. 50 percent of medical school graduates are women, and we are proud of that. But, we need to do more to make sure that we are attracting medical school students who reflect the diversity of the patients we serve.”
In his closing statement, Petasnick said, “If I were advising you on healthcare reform, I would ask you to build it on the following principles.
- Focus on Wellness. We know that wellness has a direct impact on costs and quality of life.
- Information Technology (IT) development. IT is a portal to affordability, facilitating care coordination and reduced duplication, especially in the Medicare population. There is a role for the federal government here. We are all investing in IT, and, too often, the systems don’t talk to each other. We need the federal government to set standards for interoperability.
- Care Coordination. With the aging of America, we need better care coordination, especially of patients with chronic illnesses. IT development could have a positive effect here as it relates to medical records. Today, if you go to four different doctors, each will run some of the same tests because they don’t have access to the medical record. Care coordination can help reduce duplication, reduce costs and enhance quality.
- Coverage for all. We need coverage for all, paid for by all. We need a system that creates incentives to get everybody covered. There are too many people outside the system now. The level of uninsured is reflected as a hidden tax on business. We need to address this. Fundamentally, we need to refocus health care on health and wellness. The healthcare system isn’t just hospitals. In fact, we should have a goal of improving health and keeping people out of the hospitals. I believe that you will see that the healthcare community will align and support these strategies.
Last Review Date: April 17, 2008 |
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