Let me break down a few things for you.
DFK! wrote:
So the point is that, for example, if you have a complaint and go to the physician, you're getting tests done. Tests that did not exist years ago, thus adding cost.
Tests that did not exist years ago, for conditions we may not have known about years ago,
and would not have been able to treat years ago. Tests that allow us to detect certain conditions early enough that they can be treated at all.
Now, is being able to treat those conditions adding new customers? Maybe not. Those patients are still going to hospitals, there's just nothing that can be done for them. However, the tests do allow you to determine whether you can treat the patient more quickly, and they've increased the conditions which you are able to treat.
DFK! wrote:
For example, "cycling" patients out quicker is actually a pretty big goal because it increases revenue, not decreases. Throughput is key to a hospital's top line.
I am aware. Let me clarify. Each patient has a certain upfront cost that is associated. Fewer patients means fewer instances of that particular cost. The advances in technology are certainly adding expenses. You are able to treat more patients, thereby adding expenses. It is certainly truthful to say expenses have gone up because of technology, which allows you to say costs have increased. At the same time, the increased throughput is increasing revenue, so while you can say costs have increased, it could be either misleading or short-sighted to do so. (My contention is that it is).
DFK! wrote:
Your counterpoint, if I understand it correctly, is that the tests are improving the efficiency of care to a sufficient degree that their increased cost is offset. Correct?
That is correct.
DFK! wrote:
I think, perhaps, you're misinterpreting what I mean by technology as a factor. And I'm having trouble being clear about it.
I don't think so. You, specifically? Perhaps. The industry as a whole? Definitely not.
I think, more likely, is that you, members of your department, and other individuals that you work with are sufficiently divorced from the actual technological aspect of your industry that you do not fully appreciate what that technology does for you. It would be a gross oversimplification to say that, "It costs money," is all that you (general you) understand about the technology in question, but you are in that general direction on the spectrum of technological awareness.
I alluded to this in a previous post, and it's a key difference between the health care industry, and the communications industry that I used for comparison. We consider both industries to be providing a service, but in reality the communications industry is selling a physical product, which is their network of satellites, computer servers, and transmission lines. Because of this, the people who construct, operate, and maintain the network itself wield a great deal of influence in the decision-making process. That is not the case within the health care industry.