News - September 13, 1999


Simple Care approach gets doctors' support

By CAROL CARTER
Union Leader Correspondent

 
Physicians should get their heads out of the sand and regain control of their practices, unencumbered by burdensome health insurance restrictions, the founder of a new nationwide health-care reform program said last week.


Simple Care, a nonprofit physician-driven program to revolutionize health care with cash payments, aims to reduce the frustration, delayed payments and tremendous amount of paperwork created by insurance companies, according to Dr. Vern Cherewatenko.


Since starting the program in his own practice, Cherewatenko said he has trimmed administrative costs dramatically and cut fees for services. He now spends more time on patients and less on paperwork.


The program was the brainchild of Cherewatenko and David MacDonald, who together operate the largest integrated medical clinic in the Seattle area.  About 18 months ago, Cherewatenko — a family physician —said he sat down with his partner to determine why their practice was losing so much money.  "Our combined practice billings totaled over $10 million but we were losing money on a monthly basis and were rapidly flying our businesses straight into the ground," Cherewatenko said.  The doctors calculated they were losing about $7 per patient totaling about $80,000 monthly. In April 1998, they looked at their books and determined they would be bankrupt in six months if they continued on that course.  "Our practice was literally being exterminated by the expanding amount of paperwork that was supposed to improve care and hold down costs," said Cherewatenko.  At one point, the clinics needed six medical records clerks just to deal with copying records from patients transferring in and out of the various managed care plans, he said.  Cheaper copy paper and fewer nurses wouldn't turn the tide, the doctors decided. The key was having patients pay at the time of service so the clinics could cut fees by half and get out of those ridiculous contracts, Cherewatenko said.


After discovering that one-fifth of the nation is uninsured and most are very willing to pay a reasonable fee for care, the doctors founded Simple Care. "We decided it would be a really novel concept if doctors and patients got together to try and solve the health care problem in the country," said Cherewatenko.  With this common sense approach, fees have been cut significantly. Both the patients and staff love the new system in the Seattle clinics, he added. Within three months of adopting the program, the clinics were $10,000 per month into the black by ridding themselves of the busy work of managed care, Cherewatenko said. 


Across the nation, physicians are joining Simple Care daily. About 100 have joined in the past two weeks alone, Cherewatenko said.  More information about Simple Care is available by phoning 888-469-1112 or at their Web site: www.simplecare.com& www.aapp.net