Internet sites let doctors make bids on procedures
January 1, 2000 3 minutes read
Internet sites let doctors make bids on procedures
On-line auctions take a medical twist
Two new sites on the Internet that permit patients, physicians, employers, and plans to bid competitively for services and coverage are prime examples of what many experts say will become an increasingly common way for providers to do business in the emerging e-commerce marketplace.
Taking its cue from Internet auction sites such as e-Bay, Medicine Online (at www.medicineonline. com), will launch the first Bid-For-Surgery auction site on the Internet in February. Consumers seeking elective, nonemergent surgical procedures will be able to post their requests on Medicine Online (MOL) by logging onto the site, clicking on the "Auction" section, and describing the surgical procedure they want performed (e.g., cosmetic surgery such as a face lift). They also must provide personal health and background information.
The surgery request is posted on the Web site in an encrypted and confidential section, and MOL begins processing bids from surgeons in its network of participating physicians. Surgeons have 72 hours to place their bids. At any time during or after the bidding process, the consumer can log to check the fees listed for that particular procedure by each surgeon, plus review their medical background and qualifications.
Physician-related information includes such things as board certification/qualifications, licensure, years in practice, medical school attended, post-graduate training, academic appointments and teaching activities, professional achievements, and total number of surgeries of the type requested performed during the previous two years.
Once the 72-hour bidding window is closed, the consumer is notified by e-mail. After reviewing the bids, the consumer can schedule one free face-to-face consultation with any doctor who bid at his or her office.
While many physicians have trouble with the idea of being involved in a bidding contest for patients, Richard Van Meter, MD, a Huntington Beach, CA, internist and pulmonary specialist participating in the MOL network, praises the idea. "This is the most innovative on-line marketing concept available to the health care professional today," he says. "It allows physicians to maximize and publicize the value of their hard-earned training, experience, and credentials to the fullest extent while empowering the patient with freedom of choice."
Managed care organizations also are getting pulled into the Internet auction action. The Illinois-based consultancy, Hewitt Associates, plans to launch a new site next June permitting HMOs to bid against each other for employer accounts. Hewitt recently completed a pilot of this auction idea involving 50 HMOs. On average, winning HMOs cut their Web rates 2% to 8% off their regular "list prices" during the auction.
"We are attempting to generate more direct price competition, which will lead to lower cost for employers and employees," says Tom Beauregard, a Hewitt spokesman. "This concept could move through to mid-sized companies and extend all the way to the individual. It will be the marketplace that determines how quickly this concept moves."
"It was definitely leading-edge to introduce the Internet into this forum, " says John Maxwell, director of national accounts for California-based HMO PacifiCare. "This is the direction things are going in."
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