Wednesday, June 13, 2012

Doctors and vaccine profits

This study shows that doctors actually lose money from vaccines

http://pediatrics.aappublications.org/content/124/Supplement_5/S492.abstract

"
RESULTS: The total documented variable cost per injection (excluding vaccine cost) averaged $11.51, calculated from the following categories: nursing time, $1.71; billing services, $2.67; nonroutine services, $1.64; registry use, $0.96; physician time, $4.05; supplies, $0.36; medical waste disposal, $0.12. Nonroutine activities primarily included performing vaccine inventory and ordering, providing vaccination records to requesters, and answering parent telephone questions about vaccinations. With the use of a simulation model to compensate for the small number of participating practices, the calculated total variable cost per injection was $11.83. When 2 vaccines were administered, we compared the sum of the 2 payments with the sum of the 2 variable costs ($23.02). More than one third of the payment agreements (13 of 37 agreements) paid the practices less than the combined variable costs for 2 immunizations.
CONCLUSION: This study shows that the variable costs of vaccine administration exceeded reimbursement from some insurers and health plans."


The Washington Times also found that"About one in 10 doctors who vaccinate privately insured children are considering dropping that service largely because they are losing money when they do it, according to a new survey."

http://www.washingtontimes.com/news/2008/dec/01/doctors-rethink-costly-vaccines/


These are for the USA.  There are some managed health plans that give doctors incentive payments to meet certain healthcare goals, like cutting smoking in patients and vaccinating, so that is one form of payment some doctors in managed health settings do receive for promoting healthcare options that are proven, by the insurer, to cut healthcare costs.

This NYTimes article shows how pediatricians are concerned about the cost of vaccines. They are increasingly not getting reimbursed enough to cover the costs. http://www.nytimes.com/2007/03/24/business/24vaccine.html?pagewanted=all