Thoughts on Healthcare Markets and Technology

Thoughts on Healthcare Markets and Technology

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Thoughts on Healthcare Markets and Technology
The Bureaucratic Evolution: A History of Prior Authorization in Healthcare

The Bureaucratic Evolution: A History of Prior Authorization in Healthcare

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Trey Rawles
Dec 04, 2024
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Thoughts on Healthcare Markets and Technology
Thoughts on Healthcare Markets and Technology
The Bureaucratic Evolution: A History of Prior Authorization in Healthcare
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Imagine, for a moment, a Neolithic healer gathering herbs for a sick member of their tribe. They didn't need to fill out forms in triplicate or wait for approval from a distant authority. They simply assessed their patient's needs and provided care using whatever remedies they had available. This direct relationship between healer and patient would persist for most of human history, until a revolutionary – and some would say problematic – innovation emerged in the 20th century: prior authorization.

Prior authorization represents one of the most significant yet controversial developments in modern healthcare. It stands as a testament to how our species has created increasingly complex systems to manage resources, sometimes at the cost of the very efficiency we seek to achieve. This bureaucratic process, which requires healthcare providers to obtain advance approval before proceeding with certain treatments or medications, has become a defining feature of modern medicine – one that shapes the daily lives of millions of patients and providers alike.

The Origins of Medical Gatekeeping

To understand how we arrived at today's prior authorization systems, we must first examine the ancient roots of medical resource management. In early human societies, access to healing was primarily limited by physical scarcity – of healers, of medicines, or of knowledge itself. The first formal systems of medical gatekeeping emerged in ancient civilizations, though they looked very different from today's bureaucratic processes.

In ancient Egypt, for instance, medical papyri reveal that certain treatments were reserved for nobility or religious elite. The Ebers Papyrus, dating back to about 1550 BCE, contains numerous prescriptions that were specifically designated for use by priests or pharaohs. This represents perhaps the earliest documented form of restricted medical access – though it was based on social hierarchy rather than medical necessity or economic efficiency.

Similar systems emerged independently in other ancient civilizations. Traditional Chinese medicine developed elaborate protocols about which treatments could be used for different social classes. In medieval Europe, many powerful medicines were controlled by monasteries, creating a de facto system of authorization where monks served as gatekeepers to medical treatment.

The Rise of Modern Medicine and Its Costs

The real story of prior authorization, however, begins with the transformation of medicine in the 19th and early 20th centuries. As medical science advanced rapidly, treatments became more effective – and more expensive. The development of new drugs, surgical techniques, and diagnostic tools created unprecedented opportunities for healing, but also unprecedented costs.

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