Why Healthcare Executives Need To Up Our Ethics Game

If the walls of the stadium’s plush boxes could speak, the tales of America’s biggest business deals would be told while sipping a single malt scotch and glancing at the field and scoreboard from time to time.

Of course, healthcare is no exception. And neither am I.

Over the years, I have paid for several client and partner dinners.

I was on the other side too. Like when several vendors gave us tickets to this year’s Super Bowl and a total of $8,000 worth of goodies on the open market.

my first reaction was of course?

Snoop Dogg, Jay-Z, Eminem, Mary J. Bilge, Kendrick Lamar…and who doesn’t want to watch the game?

Then I thought about it.

Why not?

At first glance, it doesn’t hurt to strengthen business relationships or advance deals with our curated set of gifts and event tickets.

But when it comes to exchanging corporate business gifts, I would argue that publicly funded healthcare companies should be an exception to business as usual and highly visible. .

Despite all efforts to provide comprehensive coverage to those most in need, millions of people remain unserved or underserved, with unmitigated costs. In a rising system, this practice is just plain wrong.

Also, private entities that receive public funds, even one dollar of public Medicare or Medicaid spending, must maintain higher standards as a condition of receiving those funds, either directly or through other entities.

So no more over-gifting.

No more US Open boxes, Super Bowl tickets, or World Series games.

I am fully aware that this post will make me an unpopular figure in some of the health industry.

Our industry executives spend public money for entertainment when they must model fiscal responsibility and wise management of public funds.

We expect physicians to act ethically and have implemented strict transparency and reporting requirements through the Physician Sunshine Payment Act regarding gifts they may receive from pharmaceutical and device companies.

Why should we impose other standards on health industry executives who are leaders in health plans, healthcare systems, pharmaceutical companies and digital health companies?

It’s time for healthcare leaders to take a united step and commit not to use public funds for excessive donations.

Few taxpayers likely know that their money can be used for corporate gifts, and if they do, there is a massive need for cost reductions across the system. Given , about 0% of taxpayers would be fine with that.

It’s time to shine a brighter light on this practice that has operated as an open secret for too long.

why now?

Public confidence in the healthcare industry continues to decline. What is the source of that mistrust? As an industry where consequences lead to life, death and injury, healthcare continues to demand “exceptionalism”, but where it is appropriate, we behave like any other industry. With so much public money being spent through Medicare and Medicaid, we need to demand more leadership from healthcare industry leaders. And if they are not willing to give it away voluntarily, Congress should act to enact it.

The SCAN Health Plan, which I lead, derives over 99% of its revenue from the federal Medicare program. We have a strict policy regarding corporate gifts. I encourage my peers to adopt similar policies if they have not. Its primary purpose is to “avoid even the appearance of improper relationships with vendors or others doing or seeking to do business with SCAN.”

In practice, this means a flat ban on employees soliciting gifts, but no gifts from current or prospective business partners exceeding $150 per event and no more than $300 annually. or receive courtesies. Every time health care executives play games with high-paying celebrities or host corporate events, they are criticized for undermining trust in the health care system and the company’s ability to provide life-saving care. is doing more than you know. I need it.

Rather, they foster the popular belief that private companies are sloppy and irresponsible with public money.

They argued that healthcare is a profit-seeking business whose primary interest is in maintaining itself and providing services rather than in serving patients or maintaining the trust of society. It confirms the increasingly vocal notion that

I thought about this last February watching the Super Bowl from the comfort of my home and imagining the gorgeous box scene with my hometown team holding up the Lombardi Trophy.

Any FOMO I might have experienced otherwise disappeared instantly.

We would like to say that healthcare is different because it involves patients.

Start acting like it.