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The Weinmann Report Corruption in Organized Medicine

Posted by on Jul 23rd, 2012 and filed under Business, Medical, Politics. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

By Dr. Richard Willner
July 23, 2012 

MONEY AND MEDICINE:  a new series in keeping financial score.  

The Weinmann Report

Assets of boards that are members of the American Board of Medical Specialties (ABMS) according to IRS Form 990 for 2009.

Total assets of the American Board of Internal Medicine were $57,586,843. Total assets for the American Board of Pediatrics were $41,759,971.  It is reasonable to ask how this money was earned.

The Chairman of the American Board of Medical Specialties was paid about $800,000 (OK, maybe a little over that) whereas the Chairman of the American Board of Allergy and Immunology was paid $98,000 (OK, OK, he reportedly worked about two hours per week).  

The Chairman of the holding board, the ABMS, received salary of $492,517. It is also reasonable to ask what tasks these chair holders undertook for this level of payment.

As to how the money was earned, we are informed that recertification for an allergist in 2011 cost $2,700 while maintenance of certification cost $2,850.

These costs don’t include costs of courses to prepare for the exams. The boards have found it even more profitable when they oblige their members to take recertification exams on a periodic basis with new fees each time.

Reference: Dubravic, Martin, MD: J of American Physicians and Surgeons, V. 16, # 2, Summer 2011, “Board Certification … A Malignant Growth,” 


How about Hospital Administrators?

This group is of interest because hospital administrators and CEOs basically command a force of state-licensed professionals including nurses, physicians, and technologists. Yet there is no requirement that the CEO be board-certified or licensed. 

This discrepancy came to light recently at Washington Hospital in Fremont where the hospital non-physician CEO was recommended for a salary increase from $614,000 per year to $632,000 with total compensation set at about $857,000 with $245,502 in performance bonuses).

Reference: Artz, Matthew: San Jose Mercury News, 12/27/12

Several years ago State Senator Dan McCorquodale authored legislation to require licensure of hospital administrators. The hospitals squawked loudly and poured money into defeat of the bill.

All the same, there were unexpected supporters who also poured in money, e.g., universities that taught courses in hospital administration and which suddenly saw their walls papered with greenbacks. In the end, the issue became a “juice” bill with each side contributing money hand over fist.


How about the American Board of Medical Specialties?

The Federation of State Medical Boards (FSMB) and the American Board of Medical Specialties (ABMS), non-profit private business entities, reported annual gross receipts in excess of $350,000,000 (see annual IRS Forms 990).

The FSMB reported a corporate lobbying budget of $221,222 although it provides no continuing medical education (CME) to physicians and no direct patient care.

How about the Joint Commission on the Accreditation of Healthcare Organizations (JCAHO)?

Gross receipts for JCAHO were reported at $148,737,915 according to its 2009 IRS Form 990.

References: Orient, Jane, MD: “White paper in opposition to Federation of State Medical Boards,” J Am Phys Surg 2008: 13: 23-26.

Kempen, Paul Martin, MD, PhD: “Wrong methodologies to improve medical care.”

Conclusions: financial incentives in medicine are now other than striving for clinical excellence. Caring for corporate health in medicine is the goal to which many otherwise superb clinicians are redirecting their efforts.

Many academic associations in addition to boards are seeking profitable affiliations and are courting political influence. National organizations need clones at the state and county levels.

Organizational climbers are willing, able, and even eager to submit and cooperate. Meanwhile, hospital CEOs need not even be state-licensed although their responsibility is as much to the public as their nurses, physicians, and technologists.

In a state of flux such as this one, opportunities are abundant, just not in the classical care of patients.

In the meantime, feel empowered enough to ask your specialty boards for copies of their IRS Forms 990. Then learn how to interpret them.

We will update this piece from time to time and will include as many readers’ comments as possible. 


Source: Richard Willner     America’s Medical Society

Editor’s Note:  Richard Wilmer is President and CEO of the Innocence Project of the Center for Peer Review Justice http://www.peerreview.org/ or at info@PeerReview.org 504-621-1670

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1 Response for “The Weinmann Report Corruption in Organized Medicine”

  1. dianemn says:

    Good information from Richard Willner! Most of the world is not aware of this. VERY glad you are helping spread the world. Americans need to know.

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