Subject: February 2021 Issue of Wisdom. Applied. Newsletter

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February 28, 2021
Free $10.6 Million Dollar Lesson on How Not to Fire Physicians

Here, courtesy of Tenet Healthcare and two terminated cardiologists, is a lesson about firing physicians . . . and, when not to.

In 2018, cardiologists Amir Kaki, M.D. and Mahir Elder, M.D. were terminated from leadership positions at Detroit Medical Center hospitals and, as a result lost their medical staff privileges.
In an award that became public in January, an arbitrator agreed with the physicians’ claims that Tenet Healthcare, DMC’s parent, acted with malice in terminating them and discontinuing their medical staff privileges as retaliation for Drs. Kaki and Elder raising quality of care and improper billing concerns. The arbitrator awarded $10.6 million in damages and ordered that their medical staff privileges be reinstated. In addition, the award included $624,000 in attorneys’ fees as well as discovery abuse sanctions of $110,000 against Tenet.

Although Tenet sought to vacate the arbitrator’s ruling in federal court, the court upheld the arbitrator's decision.

Although the story is certainly interesting on its own accord, it presents lessons for employers, whether they be facilities or medical groups.

It is certainly not unheard of for healthcare employers to terminate physicians as a result
of their advocacy for patient care or their other compliance/quality of care complaints. 
And, it’s certainly not unheard of for fired physicians to claim that their termination resulted from such advocacy when it actually didn’t, or even that there was advocacy when 
there wasn’t. 

Here are some takeaways:
  1. Employers must be diligent in implementing their compliance programs and in their overall efforts to take seriously any complaint concerning unsafe medical practices. Complaints and demands must be documented and they must be investigated to
    the level appropriate under the circumstances. Depending on the circumstances,
    for example a complaint by a physician that new equipment or supplies are required, the physician making the complaint should be kept apprised of the process and,
    even included in it. Fully vetting complaints and demands takes some, even if not
    all, of the sting out of a later claim that the complaining physician was fired to hide
    the complaint. 

  2. I thought about not including this because of obviousness, but I changed my mind: Don’t fire the messenger. And, even if that is not the reason for the termination, remember that bad timing will almost always cut against you.

  3. Disruptive physicians are wont to claim that their termination for cause was actually termination in retaliation for valid patient advocacy or as a result of some other improper motive. Employers must carefully screen out potentially disruptive job candidates. If it is too late and they are already employed, don’t bend over backwards to “fix” them, allowing them time to “fix” you.

  4. Be careful to preserve corporate or other entity structure. Although it is unclear from the story reporting the award against Tenet, I assume that there are multiple entities
    in-between the parent company and the facilities that employed, and granted staff privileges to, the two doctors. Follow required entity formalities in order to compartmentalize liability.
How to Deploy the Secret Sauce of Opportunistic Strategy - Webinar On Demand

They say that COVID-19 has changed the world, creating the "new normal." Many of your colleagues and many hospital administrators are running scared.

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• Defense as a defective default: It’s necessary, but not sufficient.
• Exploiting weakness: Drop the guilt and identify opportunity.
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Others see a crisis and freeze in fear. Learn how to see the opportunities and obtain the tools to increase your odds of obtaining them.

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Newsflash: Business Life In the Time of Coronavirus - The Way Out

The coronavirus crisis, especially as it's become politicized, raises a number of business issues and, quite frankly, business opportunities in regard to future disruptive events.


Check out our mini-series, with actionable business lessons for medical group leaders.

Sooner or later this crisis will end. You can’t allow yourself to be too busy, too occupied, too concerned with current events, to devote time and effort to strategizing for your future.

In a move reminiscent of prohibition-era crime fighter Eliot Ness, the U.S. Department of Justice recently announced a coordinated enforcement action against 345 alleged healthcare criminals, including over 100 physicians and other licensed (for now) healthcare professionals, in 51 judicial districts.
All Things Personal

I was dialing the insurance company for the 15th time and, what do you know, just like clockwork, their obviously designed to frustrate you into hanging up phone system played the usual recording, "This call may be recorded for quality and training purposes."

How many times have you heard that recording or another of its ilk? 1,000 times? 5,000 times? More?

So let me ask you this, has service ever improved? No. Nope. Never.

Then what's up with those messages about recording the call?

Perhaps they're lying to us; the recording is not for better service, but simply to preserve what we say to (gasp!), as regards the insurance company, deny our claim. They simply dressed up attempting to obtain our consent, or, depending on one's state's law, letting you know of theirs, in connection with recording the call.

Or, perhaps their notion of quality and training has nothing to do with anything related to customer service but to employee efficiency (not necessary efficacy), i.e., to make sure that their employees process 700 calls a day as opposed to 170. It is still a lie.

But whatever the reason, I don't believe I've ever met anyone who thinks that the recording has anything to do with better customer service.

Perhaps the companies that play these messages don't think that anyone is listening to them; that we've become so immune that our ears simply shut the sound out, or our brains just process the sound as white noise.

But isn't the real message that they don't give a shit?

Your office, or whoever answers your phone, an outsourced service, perhaps, might not use the same message, but there's still a chance that whatever they are saying, or whatever their initial greeting, it has the same effect.

And, it's not simply a matter of telephony, the same notion of a first impression absolutely carries over to meetings in person. Take for example, the internist who walks into the exam room and then keeps one hand on the inside door knob while talking with you.

What message are you sending?

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Podcast Compilation Greatest Hits - Strategy Edition 1.0

We've curated our most popular podcasts on strategy into our first compilation album.

Sit back, enjoy, and think about your future.

Listen here.

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We all hear, and most of us say, that the pace of change in healthcare is quickening. That means that the pace of required decision-making is increasing, too. Unless, that is, you want to take the “default” route. That’s the one is which you let someone else make the decisions that impact you; you’re just along for the ride. Of course, playing a bit part in scripting your own future isn’t the smart route to stardom. But despite your own best intentions, perhaps it’s your medical group’s governance structure that’s holding you back. In fact, it’s very likely that the problem is systemic. The Medical Group Governance Matrix introduces a simple four-quadrant diagnostic tool to help you find out. It then shows you how to use that tool to build your better, more profitable future. Get your free copy here.
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