When Honesty is the Best Health Policy

(CBS)  When Jennifer Wagner, 34, found a lump in her breast six years ago, she headed straight for her doctor.

"I asked him, I said, should I go for a mammogram and he sort of poo-pooed that idea, really just said it would be nonsense to go unless you're 40," Wagner said.

Ten months later, a second doctor also told her there was nothing to worry about, reports CBS News correspondent Priya David. But a year after that, a second lump appeared. The doctors, both affiliated with the sprawling University of Michigan Health System, had made a terrible misdiagnosis.

"The ultra sound technician said, 'This is breast cancer,' and I was just 'Wow,'" Wagner said. After 21 months of it growing, it went from what could have been stage 0 or 1 to stage 3."

Furious, Wagner called malpractice attorney Tom Blaske and they prepared to sue.

"We would have started the war," Blaske said.

But instead of going to court, the University of Michigan Health System did something astounding. It quickly examined the case, admitted it was wrong, offered Wagner a $400,000 settlement and apologized.

"That validation meant more than a million dollars," Wagner said.

"With the other hospitals, you don't get any of that, you just get deny deny, deny, defer, defer, defer," Blaske said.

The policy of honesty and apology started in 2002, and it's proven to be a shrewd business practice for the 40-member hospital system. Since then, claims against the system have dropped from 262 in 2001 to 83 in 2007. Fewer claims have allowed the system to drop its malpractice insurance cash reserves from 73 million to 13 million.

The policy was initiated at the University of Michigan by Rick Boothman, who spent 30 years defending hospitals in malpractice cases.

"It's important to understand that litigation is not a search for the truth," Boothman said. "It is a game. I could have found experts to diminish the importance of that two-year delay in diagnosis, I could have found oncologist to say she's had cancer for 5 or 6 years and that delay made no difference in her staging, but that wouldn't have been true."

And telling the truth has another positive outcome - decreased fear of lawsuits has boosted reporting of negative incidents six times higher.

"There's a general culture that's come about here of being forthright, taking responsibility and meeting it head on," said Dr. John E. McGillicuddy, a neurosurgeon.

A win for the health system and a win for Wagner. Money for the settlement is in a college trust fund for her boys. Now in remission, she is able to enjoy her healthy body today and has peace of mind for her children's future.

[suzyq211]

If only this were true. This "program" is a farce. I have yet to find ANYONE at this hospital who tells the truth much less acknowledges mistakes! Not only that...injured patients are treated with disdain and contempt. Mr. Boothman needs to take a course in Sensitivity Training. It's a great idea...hopefully one day someone will implement it!

[msay3]

by mbburch06 September 12, 2009 10:40 PM EDT
Of course Medicare is great for the people who are currently reaping the benefits. Not so great for those paying the bill. Did you ever stop to think about who's paying for it?
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Did it ever occur to you mbburch06 that "the people who are currently reaping the benefits" paid into Social Security and Medicare for their entire working lives??? If you are working, you also are paying into Social Security and Medicare, which you will benefit from when you retire, provided your contributed the minimum necessary to reap the benefits.....If you are a lazy, do-nothing that doesn't wantto work for a living, well then, you will get zip, and you can go onto Obama's public option.....Good Luck!!

[rocketjl]

They say doctors order lots of unnecessary tests to have money/added protection for malpractice coverage. Does that mean the doctor gets a 'cut' out of the cost for each test? If so, what is the general percentage?
I asked my doctor to give me a new prescription for 'water retention'. Prescription from my old doctor expired. He said it might be your heart. I went through months of tests, x-rays, cat-scans, EKGs, etc., even one of those camera going up an artery to see my heart. The bills had to roll up to 250K or more. Nothing. Doctor gave me a new prescription for water pills.

[smac761]

Citizens do we grasp the problem with becooming conditioned to run to the lawyers anytime there is an accident? Stop and consider what this costs everyone of us, every day. These costs are passed on in everything we purchase. Are you able to do your job to perfection day in and day out? Would you like to be sued anytime you make an honest error? What happened to the once cultural notion that accidents do happen and it is within our power to fforgive others who cause them. We cry about the insurance companies making so much money as the premiums are so high. Do you realize how the number of claims have jumped in past years? Settling can be the right thing to do in some cases. In many, however settling feeds the legal frenzy that is choking our economy. Where is the outrage over lawyer salaries, fees, billing rates? There are obviously cases where there is pure neglect and carelessness- lets leave these for the lawyers. Rather than spin the lottery wheel with the all encouraging lawyers, lets get back to be responsible on both sides of accidents.

[dragon8me]

One very good point I see is that in a capitolist system honesty nermally takes a back seat to profit. Corporations don't mind lying to increase profit. In fact, They set money aside for fines and lawsuits. If they can make a billion dollars by breaking the law, and only have to pay a million dollar fine, what do you think they'll do. The same thing they always do. Break the law, pay the fine, (only if caught). Then, set back and rake in the doe, while thumbing their noses at the rest of us.

[DustyRomo]

Amazing how there is never a shortage of bottom feeding, blood sucking attorneys around to jump on the nearest gravy train!

RT
www.anon-tools.vze.com

[retiredgustav]

Insurance companies are no better. My wife had a minor mishap in a big box store which required a visit to the local hospital. The cost was about $300. My insurance company has already state subrogation proceedings. The real kicker is the hospital cost came out of my pocket because the annual deductable has not been met.

[eclecticman1]

We need to look at the French model for our health care. It is like Medicare-government paid but privately run. Here's why: The World Health Organization rates France #1 in healthcare systems. The US comes in 37th between Costa Rica and Slovenia. A more recent study examined avoidable mortality , ie. deaths whose occurrence would be lower if the population had access to appropriate health care interventions. In that study, France was also Number 1 with the lowest rate of avoidable deaths. Out of the 19 countries examined, the USA was last with the highest rate. That is a severe indictment of our health care system. Let's drop the emotion and look at the facts. AND DO IT NOW!

[Hosheen]

Honesty from a for-profit organization? What a concept! But as I always taught me clients in customer-satisfaction seminars, "It's always cheaper to make a customer happy than it is to make him angry."

Yes, this was about saving money, but that can also eventually be reflected in lower medical costs. One of the huge problems with medical care in the USA is the expense of malpractice suits and the insurance for them. Being honest will not increase frivolous suits because those should still be fought. If you have been honest and fair when you were at fault, then defending against silly suits will be far easier.

[Orlandojon]

The lead story about not having the mamogram will be repeated 500 times over if we end up with government health care. We have a system that needs tweaking not a reason to throw it all out the window,

[Hosheen]

You don't think it is at all strange that, among countries with a freely-elected government and a developed economy, the USA is the only one without a health care plan that covers all of its legal citizens?

That puts the USA on a medical level with Vietnam, Haiti, North Korea, and similar countries. Places like Australia, Brazil, all of Europe, and Scandinavia, manage it without becoming totalitarian socialist countries or bankrupting future generations. Why can't the USA? Mostly because of mean-spirited, ignorant neo-cons, I think.

[pizzanick2]

Also, as a conservative, I am disappointed with the ignorant extremists who have hijacked the Republican party I used to know. Shame on them their petty antics in demonizing something that is important to the nation's health and the future competitiveness of American industry.

[smac761]

Competitiveness has left this country due to no larger party than government interferance into what used to be personal responsibility.