A Managed Behavioral Healthcare company’s CEO’s take on Healthcare Reform

Aug. 24, 2009 | Author: Sam Donaldson

To argue with a man who has renounced the use and authority of reason is like administering medicine to the dead. – Thomas Paine

I can’t help but now wade into the controversy that has become a nasty and mean spirited debate on healthcare reform.  First of all, let me say that like most Americans I still do not understand why we need a public government insurance option.  It just isn’t making any sense to me.

Look, I hope that everyone is on board with the idea that no American citizen should go without healthcare coverage. I believe my industry is on board. The problem is the solution that is being offered in the form of a government run entity. The proponents of this government plan keep touting that it will “increase competition” and “keep insurers honest.”  Let me address those two issues from my perspective of a CEO of a managed behavioral healthcare company.

1) “Keep insurers honest.”  First, I have to tell you, I find this argument personally insulting.  I am a licensed psychologist who until 10 years ago was a provider, treating consumers with mental illness and substance abuse disorders.  The insinuation of the “honesty” argument is that I wake up everyday putting profits before the needs of over 1 million consumers under my responsibility.  At 52 years of age, I have spent my entire life dedicated to the cause of ensuring that the behavioral health needs of everyone are met to the greatest extent possible.  Second, managed care is one of the most regulated industries, except for maybe the airlines industry, that I have ever seen.  I am audited and regulated down to the font size of my letters to consumers.  I am audited by accreditation agencies, various Federal agencies such as CMS, the SEC, as well as state agencies.  There is nothing hidden or invisible about what my company does, and yes, the auditing includes my financials.

2) “Increase competition”.  Pardon me?!  Then who were United and Magellan Health Services who I bid against for recent contracts?  In a recent bid, we were included in a field of FIVE competitive bids for a state behavioral health contract.  There is plenty of competition now, trust me; in fact a public option, in my opinion, would actually kill competition especially for smaller companies like mine.  A company is going to need to have deep pockets to compete with the price fixing practices of a government run public health entity. As a smaller, but growing company, I cannot compete against the Cignas, Aetnas and Uniteds of the world if there is a public option.  What will happen is consolidation of the healthcare industry into a few behemoths. Anyone remember AIG or the consolidation of the banking and finance industry? Or the bail outs?  So I ask you my intelligent and informed reader, why this same consolidation would not happen in the private healthcare industry in order to “compete” against a public healthcare solution?

Don’t get me wrong, I think the entire healthcare industry could be more efficient and that there is still unnecessary waste and fraud.  But let’s fix the current system, and get everyone covered.  We do not need yet another government bureaucracy.

Oh, and let’s please debate this without screaming and name calling. I’ve never felt compelled to spread outrageous lies not supported by facts, nor to accuse those who don’t agree with me of being “Nazis” (talk about the diminution of the holocaust, one of the darkest chapters in human history).  I am ashamed of how this debate has been conducted and regardless of how passionate you feel and where you stand on this issue, abusive behavior and screaming don’t make your argument.

-Sam Donaldson

CEO Cenpatico

These are personal views and not those of Cenpatico or any persona or entity affiliated with Cenpatico.

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3 Responses to “A Managed Behavioral Healthcare company’s CEO’s take on Healthcare Reform”

  1. Robert Butler Says:

    You are quite accurate in reminding those in the health care profession about the current assimilation of banks, industry, real-estate loans, and now educational loans. This assimilation must be extended into the next segment of our national life which is 1/5 of our economy. The recent motion picture, “THE INTERNATIONAL,” is straight forward in restating what Cokie Roberts stated on ABC’s This Week With David Brinkley on August 28, 1994: “Global bankers are really running the world.” While this may be self-evident, the translation at our level is quite simple: CONTROL. Large numbers are unwieldy, difficult to control and direct. Reduce the numbers, and, under “government direction” (banks, lending institutions, industry, etc.) the desired direction is more easily controlled. This is a necessary development in order to secure social development. This has never been about the welfare of “all of the people.” This is about “Novus Ordo Seclorum” or a New World Order as described by George H.W. Bush in his State of the Union Address in January 1991. Control consumption, control production, create total dependency upon the government elitists. I personally feel the rhetoric must be escalated—fight fire with fire, if you will. Those who propose these changes, of which health care is but a part, are focused, determined, and rabid. If we do our part, the individual will survive. If we do not, only the “collective” will.

  2. Joey Carmack Says:

    Dear Mr. Donaldson,

    I am the insurance & billing manager for a small, non-profit behavioral health agency in Clarksville, IN. We currently staff 3 full-time clinicians and 4 part-time, including a Psych MD and ARNP to service the med mgmt needs of our patients.

    I was logging on to your website to do some routine claims checking and noticed the link to your article. I wanted to take a moment to thank you for posting it. Your perspective is spot-on and shared by many, many Americans like myself. Thanks for taking the time to put your thoughts in writing so that others can, hopefully, see the rational and well reasoned opposing argument to a potentially Washington-run healthcare monster that will irrevocably harm competition in the healthcare industry, and result in accomplishing the EXACT OPPOSITE of what its’ supporters are playing to the public.

    Thanks again, and may I say also that of the Indiana Medicaid MCO’s that we work with, CBH is far and away the easiest to do business with. Thanks.

  3. David Allen Says:

    Thanks for the perspective. I was wondering how IMHS/Centgene felt about the proposed legislation. Any other information you can share about what is being proposed and how that would affect IMHS would be welcomed and appreciated. Thanks again.

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A Managed Behavioral Healthcare company’s CEO’s take on Healthcare Reform