MedFICO Has Americans All Riled Up
Currently, Americans collectively owe hospitals $40 billion in unpaid bills. This, combined with the fact that 47 million Americans are uninsured, is making hospitals worry about the consequences of mounting debt on their bottom lines.
Now, hospitals are looking for ways to identify which patients will be more likely to be unable to pay their medical bills. Fair Issac Corp, which developed the FICO credit score, is investing in a company Health Analytics, which (according to news reports) is developing a scoring system that will help hospitals and providers identify financially risky patients.
MSNBC contacted Healthcare Analytics recently and the company denies it is developing a MedFICO product. According to spokesperson Tom Hurley the tool “will be used after patients receive care and after a bill is generated to help hospitals make better financial planning decisions.” No one will be denied care because of a low score, he says.
Consumers are not buying it. After the story appeared on MSNBC’s Website thousands of people have weighed in to blast MedFICO as ill-advised and unethical. I see this as another consequence of the consumerism trend. As organizations realize that consumers will be asked to assume responsibility for their care, it is only natural that some will begin to examine patients’ ability to pay.
My major concern is that a MedFICO will lead to severe (and improper) rationing of care – i.e., turning patients away if they look like financial risks. I’ll be interested to see whether the folks developing this product will be able to successfully manage the legal and regulatory issues associated with it.
