Archive for September 9th, 2009

Sauce for for the goose, sauce for the gander … A Doctor's Plan for Legal Industry Reform

September 9, 2009

Ken’s Take: A very clever juxtaposition that gives the health care debate in a different perspective … 

* * * * *

WSJ, A Doctor’s Plan for Legal Industry Reform, Sept. 3, 2009

Since committees of lawyers are deciding what doctors should and should not do, perhaps physician committees can decide whether lawyers are necessary in any given situation.  Doctors sholuld take on the important duty of controlling and regulating lawyers.

Since most of what lawyers do is repetitive boilerplate or pushing paper, physicians would have no problem dictating what is appropriate for attorneys.

After all, we physicians know much more about legal practice than lawyers do about medicine.

Following are highlights of a proposed bill authorizing the dismantling of the current framework of law practice, i.e. “reforming” it:

Contingency fees will be  … eventually outlawed. This will put legal rewards back into the pockets of the deserving—the public and the aggrieved parties. Slick lawyers taking their “cut” smacks of a bookie operation. Attorneys will be permitted to keep up to 3% in contingency cases, the remainder going into a pool for poor people.

•  Each potential legal situation will be assigned a relative value, and charges limited to this amount. Program participation and acceptance of this amount is mandatory, regardless of the number of hours spent on the matter. Government schedules of flat fees for each service, analogous to medicine’s Diagnosis Related Groups (DRGs), will be issued. For example, any divorce will have a set fee of, say, $1,000, regardless of its simplicity or complexity. This will eliminate shady hourly billing. Niggling fees such as $2 per page photocopied or faxed would disappear. Who else nickels-and-dimes you while at the same time charging hundreds of dollars per hour? I’m surprised lawyers don’t tack shipping and handling onto their bills.

Legal “death panels. Over 75? You will not be entitled to legal care for any matter. Why waste money on those who are only going to die soon? We can decrease utilization, save money and unclog the courts simultaneously. Grandma, you’re on your own.

Ration legal care. One may need to wait months to consult an attorney. Despite a perceived legal need, physician review panels or government bureaucrats may deem advice unnecessary. Possibly one may not get representation before court dates or deadlines. But that’ s tough: What do you want for “free”?

Physician controlled legal review. This is potentially the most exciting reform, with doctors leading committees for determining the necessity of all legal procedures and the fairness of attorney fees. What a wonderful way for doctors to get even with the sharks attempting to eviscerate the practice of medicine.

Discourage/eliminate specialization. Legal specialists with extra training and experience charge more money, contributing to increased costs of legal care, making it unaffordable for many. This reform will guarantee a selection of mediocre, unmotivated attorneys but should help slow rising legal costs. Big shot under indictment? Too bad. Under reform you too may have to go to the government legal shop for advice.

Electronic legal records. We should enter the digital age and computerize and centralize legal records nationwide. All files must be in a standard, preferably inconvenient, format and must be available to government agencies. A single database of judgments, court records, client files, etc. will decrease legal expenses. Anyone with Internet access will be able to search the database, eliminating unjustifiable fees charged by law firms for supposedly proprietary information, while fostering transparency. It will enable consumers to dump their clunker attorneys and transfer records easily.

Ban legal advertisements. Catchy phone numbers such as 1-800-LAWYERS would be seized by the government and repurposed for reporting unscrupulous attorneys.

New government oversight. Government overhead to manage the legal system will include a cabinet secretary, commissioners, ombudsmen, auditors, assistants, czars and departments.

Collect data about the supply of and demand for attorneys.Create a commission to study the diversity and geographic distribution of attorneys, with power to stipulate and enforce corrective actions to right imbalances. The more bureaucracy the better. One can never have too many eyes watching these sleazy sneaks.

Lawyer Reduction Act. A self-explanatory bill that not only decreases the number of law students, but also arbitrarily removes 3,200 attorneys from practice each year. Textbook addition by subtraction.

Enthusiastically embracing the above legal changes can serve as a “teachable moment” and will go a long way toward giving the lawyers who run Congress a taste of their own medicine.

Full article:
http://online.wsj.com/article/SB10001424052970204731804574387021307651050.html?mod=djemEditorialPage

* * * * *

Sauce for for the goose, sauce for the gander … A Doctor’s Plan for Legal Industry Reform

September 9, 2009

Ken’s Take: A very clever juxtaposition that gives the health care debate in a different perspective … 

* * * * *

WSJ, A Doctor’s Plan for Legal Industry Reform, Sept. 3, 2009

Since committees of lawyers are deciding what doctors should and should not do, perhaps physician committees can decide whether lawyers are necessary in any given situation.  Doctors sholuld take on the important duty of controlling and regulating lawyers.

Since most of what lawyers do is repetitive boilerplate or pushing paper, physicians would have no problem dictating what is appropriate for attorneys.

After all, we physicians know much more about legal practice than lawyers do about medicine.

Following are highlights of a proposed bill authorizing the dismantling of the current framework of law practice, i.e. “reforming” it:

Contingency fees will be  … eventually outlawed. This will put legal rewards back into the pockets of the deserving—the public and the aggrieved parties. Slick lawyers taking their “cut” smacks of a bookie operation. Attorneys will be permitted to keep up to 3% in contingency cases, the remainder going into a pool for poor people.

•  Each potential legal situation will be assigned a relative value, and charges limited to this amount. Program participation and acceptance of this amount is mandatory, regardless of the number of hours spent on the matter. Government schedules of flat fees for each service, analogous to medicine’s Diagnosis Related Groups (DRGs), will be issued. For example, any divorce will have a set fee of, say, $1,000, regardless of its simplicity or complexity. This will eliminate shady hourly billing. Niggling fees such as $2 per page photocopied or faxed would disappear. Who else nickels-and-dimes you while at the same time charging hundreds of dollars per hour? I’m surprised lawyers don’t tack shipping and handling onto their bills.

Legal “death panels. Over 75? You will not be entitled to legal care for any matter. Why waste money on those who are only going to die soon? We can decrease utilization, save money and unclog the courts simultaneously. Grandma, you’re on your own.

Ration legal care. One may need to wait months to consult an attorney. Despite a perceived legal need, physician review panels or government bureaucrats may deem advice unnecessary. Possibly one may not get representation before court dates or deadlines. But that’ s tough: What do you want for “free”?

Physician controlled legal review. This is potentially the most exciting reform, with doctors leading committees for determining the necessity of all legal procedures and the fairness of attorney fees. What a wonderful way for doctors to get even with the sharks attempting to eviscerate the practice of medicine.

Discourage/eliminate specialization. Legal specialists with extra training and experience charge more money, contributing to increased costs of legal care, making it unaffordable for many. This reform will guarantee a selection of mediocre, unmotivated attorneys but should help slow rising legal costs. Big shot under indictment? Too bad. Under reform you too may have to go to the government legal shop for advice.

Electronic legal records. We should enter the digital age and computerize and centralize legal records nationwide. All files must be in a standard, preferably inconvenient, format and must be available to government agencies. A single database of judgments, court records, client files, etc. will decrease legal expenses. Anyone with Internet access will be able to search the database, eliminating unjustifiable fees charged by law firms for supposedly proprietary information, while fostering transparency. It will enable consumers to dump their clunker attorneys and transfer records easily.

Ban legal advertisements. Catchy phone numbers such as 1-800-LAWYERS would be seized by the government and repurposed for reporting unscrupulous attorneys.

New government oversight. Government overhead to manage the legal system will include a cabinet secretary, commissioners, ombudsmen, auditors, assistants, czars and departments.

Collect data about the supply of and demand for attorneys.Create a commission to study the diversity and geographic distribution of attorneys, with power to stipulate and enforce corrective actions to right imbalances. The more bureaucracy the better. One can never have too many eyes watching these sleazy sneaks.

Lawyer Reduction Act. A self-explanatory bill that not only decreases the number of law students, but also arbitrarily removes 3,200 attorneys from practice each year. Textbook addition by subtraction.

Enthusiastically embracing the above legal changes can serve as a “teachable moment” and will go a long way toward giving the lawyers who run Congress a taste of their own medicine.

Full article:
http://online.wsj.com/article/SB10001424052970204731804574387021307651050.html?mod=djemEditorialPage

* * * * *

The Power of Free (Again) … In the Air, Wi-Fi Gets a Ho-Hum Reception

September 9, 2009

Ken’s Take: A nice example of PVP concepts in action: (1) The recurring power of free – charge even a minimal amount and demand falls – a lot.  (2) Differentiated pricing – in this case, by distance.  (3) Morphing from “by the drink” to subscriptions.

* * * * *

WSJ, In the Air, Wi-Fi Gets a Ho-Hum Reception, Aug. 27, 2009

More than 500 airliners are flying around the U.S. with wireless Internet access up and running, but airlines are finding that the technology that they hope will bring new revenues may be more like in-flight meals: People gobbled up food when it was free, but they find it a lot less appetizing when they have to pay.

Airlines and in-flight Wi-Fi providers say usage has been strong and is growing as more travelers sign up for the service and find it on more flights.

But usage drops off considerably when travelers must pay for the service.

Alaska Airlines even tested charging just $1. The result: a lot fewer laptops, BlackBerrys and iPhones signed on.

Most U.S. airlines with Wi-Fi are using a service called Gogo from Aircell LLC, which built a network of cellular towers across the country.

Aircell is already testing lower prices and rolling out longer service plans. The service is priced now at $12.95 for flights longer than three hours; $9.95 for flights under three hours but more than 90 minutes, and $5.95 for flights shorter than 90 minutes.

Usage is higher on long-haul flights and has steadily increased as more travelers register for the service—making it easier to sign on during subsequent flights without entering credit-card numbers and other information.

Virgin America says about 12% to 15% of passengers across its fleet are using the service. That’s likely higher than industry averages since Virgin America has a high proportion of cross-country flights in its schedule—plus, the airline offers power ports at all seats, making it easier to use Wi-Fi.

On average, 8% to 10% of travelers need to pay for Internet access for the service providers to be profitable within five years. That may be hard to do because a large percentage of U.S. domestic flights are shorter than two hours, when travelers are least likely to pay for Web access in the air.

For many business travelers, staying online will make hours in the air more productive (and rob some road warriors of a respite from electronic leashes).

Aircell, which is adding about 100 planes a month, thinks pricing will move more toward subscriptions, with travelers buying packages of five flights or more and companies directly buying the service for their business travelers.

Full article:
http://online.wsj.com/article/SB10001424052970203706604574374571364228440.html

* * * * *