Hundreds of thousands of dollars in debt, and no residency. That’s the situation for 412 medical school graduates this year in the United States.
A residency — paid, on-the-job training — is an essential step in becoming a medical doctor. In some cases, students’ failure to obtain a residency has nothing to do with their performance, but rather with the supply and demand of the system that allocates them, the National Resident Match Program.
It also has to do with simple math. The National Resident Match Program’s annual report, released in May, shows 26,678 positions. For the second year in a row, the number of graduates exceeded the number of residencies available.
Medicare funds those residencies, costing $10 billion a year. Congress set this allocation in 1997, and it has remained unchanged since then.
But not for lack of trying. In 2013, lawmakers introduced two bills, the Resident Physician Shortage Reduction Act and the Training Tomorrow’s Doctors Today Act. Neither bill passed the House of Representatives.
Janis Orlowski, the senior director in health care affairs for the Association of American Medical Colleges, said Congress needs to increase funding to prevent a catastrophic shortage of doctors.
“We’ve gotten to a choke point where there are more students graduating than are getting a residency,” Orlowski said.
This residency shortage comes at a time when demand for doctors is increasing, she said. An aging population, an increase in the pool of insured people due to the Affordable Care Act, and the fact that almost a third of all physicians are expected to retire in the next decade all contribute to the rising need for new doctors. Her organization, interpreting U.S. Census data, predicts a shortage of 130,000 physicians by 2025.
Orlowski said that when she was in medical school during the 1980s, the country faced a similar physician shortage, which led to a federal investment in building and expanding medical schools.
This time around, medical schools have increased class sizes in response to the shortage, which is a good start, she said. But without an increase in the number of residency positions, the number of doctors cannot increase — no matter how many people graduate from medical school.
Currently, students select and rank desired residencies through the National Resident Match Program, which uses an algorithm to meet the needs of both the students and hospitals. For the unlucky ones who don’t get a match, it’s often just a matter of too many applicants for certain specialties.
This year — Match Day was March 31 — the number of unmatched graduates decreased to 412 from last year’s 528, which Orlowski attributes in part to students’ increased willingness to apply for primary care positions.
“Some primary care residencies did not fill in the past, and they did now, which is good,” Orlowski said. “Rather than everyone wanting to be a dermatologist — a very lucrative but hard-to-fill spot — people selected wisely, especially in competitive areas.”
James E. Wilberger, a neurosurgeon and vice president for graduate medical education at Allegheny Health System, said that unless something is done, the residency shortage will continue to get worse.
“Right now the number is small, but the trend is disturbing,” he said.
Wilberger said he knew one graduate who failed to get a residency this year. Describing the graduate as a “top-notch student,” an aspiring orthopedic surgeon with “excellent credentials,” he said there is sometimes no predicting which students will fail to match.
Officials at University of Pittsburgh Medical School would not comment on whether they had any unmatched graduates.
But Alexis Chidi, a Pitt medical student who also is seeking a Ph.D., said she was aware of at least two Pitt medical school seniors who had failed to get a residency in the past two years. Chidi said that each student’s choice of specialty and his or her desired locale both may have played a role.
“Everybody goes into medical school wanting to have unlimited choice of specialty and geographic areas,” she said. “But depending upon a number of factors, including performance in medical school or what school you go to, might affect your ability to match into a program.”
There is a process in place, known among medical students as “the scramble,” which gives students who didn’t match one last opportunity to get a residency without having to wait another year. But Chidi said that some specialties don’t have many opportunities available during the scramble, leaving some students out of luck.

Thousands stuck in MaineCare application backlog

Posted June 10, 2014, at 7:39 p.m.
AUGUSTA, Maine — Thousands of Mainers are waiting to find out if they’re eligible for Medicaid coverage, potentially putting off needed medical care while state and federal officials sort out the bureaucratic backlog.
Nationally, more than 6 million low-income Americans have gained Medicaid coverage through an expansion of the health insurance program under the Affordable Care Act. But even Maine and other states that opted against expanding Medicaid are seeing rising enrollment, through what health policy experts call the “woodwork effect.” Individuals who previously were eligible under existing Medicaid criteria but unenrolled are seeking coverage amid publicity about new, more affordable health insurance options and the requirement that most Americans get health coverage or pay a penalty.
Many applied through Healthcare.gov, the federal insurance marketplace set up under the health reform law. Applicants were encouraged to log on to the site to see if they were eligible for Medicaid, based on their income and other factors, with the state making the final determination.
Maine received basic eligibility information through Healthcare.gov on about 10,000 applications, according to the state Department of Health and Human Services. Applications can reflect more than one person seeking coverage. The state determined most applications didn’t qualify for Medicaid, leaving about 3,900 potentially eligible. Of those, 1,664 were determined eligible, and the state is still processing the remainder, according to DHHS spokesman John Martins.
Maine residents seeking Medicaid, or MaineCare, coverage also can apply directly with the state. Many were encouraged to after technical problems plagued the launch of Healthcare.gov. About 5,300 applications filed through the state also are pending, according to figures DHHS recently provided to the state’s health exchange advisory committee.
The early glitches that prevented applicants’ data from reaching states have been resolved, according to federal officials. The U.S. Centers for Medicare and Medicaid Services say Maine is one of just three states — along with Republican-led Alaska and Kansas — that can’t accept data on applicants transferred through Healthcare.gov, according to a Washington Post/Kaiser Health News report.
Maine Department of Health and Human Services Commissioner Mary Mayhew disputed that characterization, calling it a “complete distortion,” and claiming the federal government pressured states to provide Medicaid coverage despite missing information on applicants.
For months, states received only limited information on individuals seeking Medicaid coverage that lacked sufficient detail to accurately determine eligibility, she said in a Tuesday statement.
“To make matters worse, for political expediency, the federal government wanted states to ignore income verification and other missing information and simply make individuals eligible because of their inability to provide complete information,” Mayhew said.
While Maine was one of three states unwilling to “sacrifice program integrity” by granting eligibility without complete information, other states also can’t accept all of the data sent through Healthcare.gov, according to Maine DHHS. The department didn’t specify which or how many other states.
Maine will be able to accept all of the data sent through Healthcare.gov by the end of this week, Martins said Wednesday.

Maine Hospital's Dilemma: Improved Care Shrinks Bottom Line
06/11/2014   Reported By: Patty B. Wight
Under the Affordable Care Act, the quality of health care you receive is supposed to improve. Hospitals, for example, are expected to reduce readmissions, cut down on unnecessary tests. But these are the kinds of services that have been the bread and butter of hospitals for years. Take them away, and the hospital loses money. So the challenge for hospitals is how to increase quality and still stay in business. Patty Wight visited one hospital in western Maine that's grappling with that task, and tonight she has the first of two reports on what she found out.
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Maine Hospital's Dilemma: Improved Care Shrinks BoListen
 Duration:
5:51
In her 30 years of nursing at Franklin Memorial Hospital in Farmington, Tracy Harty has sported about a dozen different ID badges. "I'm currently a nurse navigator," she says.

As a navigator, part of Harty's job is to usher uninsured patients through the health system. On this day, she's checking on Mark Osgood, who is at the hospital because of a recent lung cancer diagnosis. "Your first treatment is Thursday morning," she says. "And, are you coming alone?"

Before his diagnosis, Osgood didn't have health insurance, so Harty helped him enroll. She'll keep helping him - with paperwork, or getting whatever community resources he needs.  

Osgood says it's a relief.  He can focus on getting better. "I need help," he says. "I mean, this is a desperate fight. I can't do this by myself.  I know I can't."

Last year the hospital spent more than $6 million providing care for the uninsured. Franklin County is the third poorest  in the state.  Charity care costs here are swelling. 

So the hospital put Harty to work as a navigator to figure out what kinds of diseases were going untreated, to reduce costs by enrolling patients in insurance plans when possible, and to help patients take better care of themselves.

"We kind of went into this thinking it would probably be two or three chronic diseases that would be the culprit," Harty says. "And if it was diabetes and congestive heart failure, say, then we would just design programs to address those issues, and then we'd be all set."

The thought was that the hospital could treat a patient before their illness became acute.  But Harty's research turned up something unexpected.

"A lot of the $6 million is spent on catastrophic hospitalizations - people who have been sick for a period of time, have ignored that illness, and then they've had something major happen," she says. 

The problems were much more complex and individualized than anyone imagined. As Harty worked with patients, she discovered that personal and social circumstances often trumped health problems. And she realized that if she wanted to get people healthy, she would need to first address their underlying issues.  http://www.mpbn.net/Home/tabid/36/ctl/ViewItem/mid/5347/ItemId/34176/Default.aspx

Skyrocketing salaries for health insurance CEOs

If they’re making millions, should the rest of us have to pay higher premiums?

By Wendell Potter
The Center for Public Integrity, June 9, 2014
If health insurance companies announce big premium increases on policies for 2015, I hope regulators, lawmakers and the media will look closely at whether they are justified, especially in light of recent disclosures of better-than-expected profits in 2013, rosy outlooks for the rest of this year and soaring CEO compensation.
Almost all of the publicly traded health insurers reported big increases in revenue and profits last year. The big winners have been the top executives of those companies, led by Mark Bertolini, CEO of Aetna, the nation’s third largest health insurer. Bertolini’s total compensation of $30.7 million in 2013 was 131 percent higher than in 2012.
If the stock prices of these firms keep growing at the current pace, Bertolini and his peers can expect to be rewarded even more handsomely this year, especially if they can hike premiums high enough to satisfy shareholders.
According to Health Plan Week, a trade publication, the CEOs of the 11 largest for-profit companies were rewarded with compensation packages last year totaling more than $125 million.
Over the past several weeks, several of them have told shareholders and Wall Street financial analysts that their companies likely will have higher profits at the end of this year than they expected, despite having to pay more medical claims as a result of the new Obamacare customers they picked up.
Those announcements have been music to the ears of shareholders, who are considerably wealthier today than they were this time last year.
Of those 11 companies (Aetna, Centene, Cigna, Health Net, Humana, Molina, Triple-S Management Corp., UnitedHealth Group, Universal American, Wellcare, and WellPoint) nine saw their stocks close near 52-week highs this past Friday.
The biggest gainer has been Humana, one of the largest operators of Medicare Advantage plans, whose share price has increased more than 53 percent over the past year.
The increases have been equally impressive at most of the other big companies. Aetna’s share price is up 31 percent, Cigna’s 32 percent. United’s is up 28 percent. And WellPoint’s is up 39 percent.
But it is the CEO compensation that has been the most eye-popping, especially at two of the publicly traded companies that specialize in managing Medicaid enrollees in several states: Centene and Molina.
Centene’s CEO Micheal Neidorff saw his compensation increase 71 percent last year, from $8.5 million to $14.5 million. Even more impressive was the 140 percent raise Molina’s J. Mario Molina got. His compensation jumped from $4.95 million in 2012 to $11.9 million in 2013.
All of those totals were disclosed in the proxy statements those companies filed with the Securities and Exchange Commission earlier this spring.
http://www.pnhp.org/print/news/2014/june/skyrocketing-salaries-for-health-insurance-ceos