Nashville was one of 72 areas of the country that the Government Accountability Office identified this week as "potentially overserved," meaning Medicare patients got more doctor services there than seniors in other areas of the country, even though demographics didn't indicate they had more health risks.
"Some of the higher volume and intensity that drive spending growth may not be medically necessary," according to the report. "Physicians have a financial incentive to perform as many services as possible because Medicare pays them a fee for each service provided, with little accountability for quality or efficiency."
Dr. J. James Rohack, president of the American Medical Association, said the medical profession is committed to addressing variations in care, but that high growth in services doesn't always equal overuse. For example, he said, some services being used more often, such as colonoscopies and office visits, are encouraged by Medicare to promote early detection, prevent disease and manage chronic conditions.
"GAO's analysis confirms that the issue is far too complex for simple solutions like redistributing funds from low-spending to high-spending areas, and that the most successful interventions will be locally based," Rohack said.
The GAO, the investigative arm of Congress, looked at how many physician services per patient were billed to the government from 2000 through 2008 — as well as the growth in services per patient — in 296 areas. Areas that ranked in the top half in both categories were considered "potentially overserved."
Memphis and Nashville were the only areas of Tennessee that were labeled "potentially overserved." Services per beneficiary in the Nashville area grew about 15 percent from 2000 to 2008, compared with 14 percent nationwide.
(2 of 2)Real Estate Outlook: Recession is OverConsumers’ economic clout may be overrated
