Cost escalation

DTC Advertising and Drug Costs

December 24th, 2009 | No Comments | Source: Archives Int. Medicine, BurrillReport

Most people have assumed that direct-to-consumer advertising has helped drive up the cost of drugs, but there really hadn’t been much proof of that. Until now, that is.

mediasensationThe proof comes in the form of a study published in the Archives of Internal Medicine.

In the study, Michael Law of the University of British Columbia and others looked at US sales of Plavix, the $4 billion clot-busting blockbuster co-marketed by BMS and Sanofi-Aventis for the prevention of recurrent heart attacks and strokes, and thrombotic complications following stent placement.

Plavix was introduced to the US market in 1998. DTC advertising for the drug began 3 years later, and exceeded $350 million dollars over the next 4 years.

Law’s group queried pharmacy data from 27 Medicaid programs from 1999 through 2005 to analyze changes in Plavix prescription volume, the cost per unit dispensed, and total pharmacy expenditures before and after DTC advertising was introduced.

gettingbettereverydayThe scientists detected no change in the preexisting trend in the number of Plavix prescriptions written after DTC advertising was introduced.

They did, however, detect a sudden, sustained increase in cost per unit of the drug, of $0.40 per unit dispensed which coincided with the introduction of DTC advertising.

This resulted in an incremental cost of $40.58 per 1000 Medicaid enrollees per quarter, or an additional $207 million in total pharmacy expenditures.

“The key issue is whether advertising to consumers, which has risen 330% in the last 10 years in the US, contributes to the significant cost increases in publicly funded health insurance programs such as Medicaid,” Stephen Soumerai told BurrillReport.

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Antibiotic Misuse Costs $20b Per Year

November 24th, 2009 | No Comments | Source: Clinical Infectious Diseases

Inappropriate use of antibiotics and consequent antibiotic-resistant infections waste $20 billion per year, according to a study published in Clinical Infectious Diseases.

throwthisawayTo reach this conclusion, Rebecca Roberts and colleagues at Cook County (Stroger) Hospital quantified antibiotic resistant infections (ARIs), total costs, length of stay, length of ICU stay, surgeries and mortality rates for 1,391 high-risk adult patients that were hospitalized in the year 2000. 

The scientists found that 188 (13.5%) patients developed an ARI. The medical costs attributable to ARIs ranged from $18,588 to $29,069 per patient. In these patients, length of stay was 6.4–12.7 days longer than in those who did not develop ARIs. Excess mortality in the ARI group was 6.5%.

Common ARIs include methicillin-resistant Staphylococcus aureus (MRSA), vancomycin-resistant enterococci (VRE), as well as many other bacteria that are becoming resistant to common antibiotics.

“Significant health and economic benefits could be realized through effective interventions to reduce antimicrobial-resistant and healthcare-associated infections,” said Roberts in a press release.

Stuart Levy, a senior author on the paper added that his study “demonstrates the enormous cost savings that could be realized for both the health care system and to individuals and their families…these costs will continue to increase if we don’t practice a more prudent usage of antibiotics.”

Levy added that more studies are needed to determine how much could be saved at a national level if we took steps to slow the rise of resistant infections, especially those acquired in hospital settings.

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Preventive Care not a Free Ride

October 13th, 2009 | No Comments | Source: Health Affairs, Washington Post

Preventive services for patients with Type II diabetes do reduce future health-care costs, but even in the long term, the initial expenses are not completely recovered according to a study published in Health Affairs earlier this month. 

To reach these conclusions, Michael O’Grady and colleagues compiled data from several clinical trials that used an aggressive but doable program to manage all phases of the disease.

thecolorofmoneyThey found that federally-insured patients enrolled in such a program would cost over $1,000 per person per year, and that even after 25 years, only ¾ of those costs would be returned via reduced spending on dialysis, amputations and coronary heart disease.

The only group in whom preventive services actually reduced long-term costs were those in their mid-20s at study onset.

“There’s no free lunch here,” concluded O’Grady in an interview with the Washington Post.

President Obama, House Speaker Nancy Pelosi and others claim that health reform will save money, in part by preventing the costs of future diseases by increasing access to preventive services.

Pelosi and Senator Tom Harkin frequently criticize the Congressional Budget Office for adopting a long-enough time horizon in estimating the cost impact of such programs.

The new study supports their position. Most savings accrued well after the 10-year horizon typically used by CBO. The study authors propose a 25-year time horizon for calculating the impact of such programs.

CBO Director Douglas Elmendorf seemed open to the suggestion, indicating the study was “exactly the sort of research that we use in building our cost estimates. We will consider these findings in future estimates we do in this area.”

Earlier this month, the CBO concluded that the costs of widespread cancer screening and cholesterol management programs were going to far outweigh any savings, even in the long term.

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Self-Referrals Rampant

September 4th, 2009 | No Comments | Source: NY Times

Back in August, 2005, physicians at Urological Associates ordered 9 CT scans for patients covered by the local BCBS carrier. They ordered 8 in September. That rate was lower than most physicians in the community.

newMRImachineBut in October, the Iowa-based group ordered 35 scans and then 41 and 55 in the ensuing 2 months. That was about 3 times higher than local norms.

The sudden jump began when the practice purchased its own CT scanner, according to the Washington Post, and the tale repeats itself all over the US. 

The bump in imaging does not translate to improved health outcomes, as numerous studies have shown.

And the excessive radiation from the scans may cause up to 1% of all cancers in the US.

The self-referral problem was thought to be solved in 1992 with passage of the Stark Law, but a loophole allowed physicians to keep up the practice, so long as the devices were housed under the same roof as their practice.

The exception was intended to permit physicians to use the machines for expedited diagnoses of fractures, pneumonia and the like, but soon after Stark passed, CT and MRI scanners shrank magically in size.

“Physicians who purchase machines for their offices have a financial incentive to refer patients for additional services,” MedPAC stated in a recent report. “Physician ownership could influence the judgment of some physicians, particularly when there is not strong evidence to guide their decisions.”

Meanwhile the Web site of GE Healthcare posts testimonials from physicians about the nifty return on the imaging devices. “We’re already beating our pro forma in terms of the return on investment,” says one West Virginia physician.

Congress, by the way, is considering a proposal to prohibit the practice.

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Disease Prevention is no Cure

August 14th, 2009 | No Comments | Source: Wall Street Journal

Seems like just about the only thing folks inside the Beltway can agree on these days is that the US government ought to invest in disease prevention. It’s cheaper to keep people healthy than to treat them after they become sick, right?

igotanideaWell, maybe.

The Wall Street Journal is reporting that some government-led prevention efforts have worked, while others have been costly failures.

The WSJ cites a study on the matter appearing in last year’s NEJM for example, which reviewed 279 prevention-oriented government initiatives and found a mixed bag.

The NEJM authors cite a program to increase colonoscopy rates in men in their early 60s as one that saved lives and money, but pan another that screened people for diabetes in addition to high blood pressure. That one wound up costing $590,000 for every healthy year of life added.

Meanwhile according to the WSJ, Medicare has conducted 7 pilots of disease management programs in the last decade, and not one of them showed cost savings or improvements in health status.

The largest such study was the Medicare Health Support program, which began in 2005 and covered 200,000 patients. In that study, participants with diabetes and CHF were assigned to companies that were supposed to help them improve their health while reducing medical costs.

Nurses from these companies contacted patients relentlessly to assure treatment plans were implemented. They shipped educational materials and shepherded patients to health promotion classes.

The initiative had no impact on hospitalization rates, readmission rates, ER visits or mortality, nor did it cut Medicare payments by an amount equal to the costs of the services themselves, which amounted to between $67-118 per month.

Disease management programs like these are “not going to cut costs,” Louise Russell, a professor at Rutgers University told the Wall Street Journal. “We already do a lot more prevention than other countries (and)…we are not healthier.”

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Cancer Survival: At What Price?

August 7th, 2009 | No Comments | Source: J. National Cancer Institute, Wall Street Journal

An editorial in the Journal of the National Cancer Institute has questioned the routine use of expensive cancer drugs that prolong lives by just weeks or months.

costofamonthoflifeNCI oncologist Tito Fojo and NIH ethicist Christine Grady called-out Erbitux as a particularly egregious example. An 18-week regimen of Bristol-Meyers Squibb’s cancer-fighter costs $80,000 and prolongs life by 1.2 months on average, they say.

“Many Americans would not regard a 1.2-month survival advantage as ‘significant’ progress,” the authors stated. “Would an individual patient disagree? The death of a mother of four at age 37 years would be no less painful were it to occur at age 37 years and 1 month, nor would the passing of a 67-year-old be any less difficult for the spouse were it to have occurred one month later.”

Complicating the debate is the fact that the drugs do work miracles in some patients, and it’s impossible to predict who will be so lucky.

“A drug like Erbitux is not very impressive when you look at the statistics, but for some it’s just remarkable,” Marti Nelson Cancer Foundation chief Robert Erwin told the Wall Street Journal. “How much does it cost for a person to have the opportunity to benefit?”

For their part, drug makers said the NCI article did not capture true costs of the cancer-fighters.  BMS spokesperson Brian Henry said the actual costs paid by patients for Erbitux is much less than $80,000.

“We can’t add on Mercedes-like drugs one after another and have every single patient cost the system phenomenal amounts of money,” said Eric Winer, chief scientific adviser to Susan G. Komen for the Cure, a breast-cancer advocacy group.

“But we have to be careful not to slow down the process of drug development. Ultimately, medical therapy will make a huge difference in people’s lives.”

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False Positives Mar Lung CT Screens

July 13th, 2009 | No Comments | Source: MedPageToday

Physicians have lamented for decades the absence of a reliable screening test for lung cancer, and they’re going to have to hum that tune awhile longer since the latest study of chest CT confirms previous findings: the test has an unacceptably high false positive rate.

foiledagainThe disappointing findings were reported by the NIH’s Jennifer Croswell at the recently completed meeting of the American Society of Clinical Oncology.

“False-positive results may create increased psychological stress in patients and an increased burden on the healthcare system,” Croswell told MedPageToday.

In Croswell’s blandly named Lung Screening Study, 1,610 participants received a baseline CT and 1,580 got a chest X-ray. Both groups received a repeat imaging study a year hence and were followed for another year.

The scientists defined a positive test as one revealing a noncalcified nodule at least four millimeters in diameter, or any other finding that was suspicious for cancer.

They defined false positives as positive screens that prompted a negative work-up or that resulted in no cancer diagnosis 12 months later.

The false positive rate for participants receiving CT scans was 21% after the first image and 33% after the second.  It was 9% and 15% for those receiving chest x-rays.

In the CT group, false positives tests prompted invasive diagnostic procedures and major surgeries in 6.6% and 1.6% of the participants, respectively. Those numbers were 4.2% and 1.9% for false positives resulting from a chest X-ray.

According to Peter Bach of the Memorial Sloan-Kettering Cancer Center in New York, “nothing really changes here,” as a result of the new study. “There is no organization in the world that recommends screening for lung cancer with CT,” or any other technique, Bach told MedPageToday.

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Cutting Health Care Costs

June 26th, 2009 | No Comments | Source: Washington Post

Since forever, the Big O has argued that comprehensive health reform was a prerequisite to revivifying the nation’s flagging economy.

IjustfoundatrilliondollarsLast week, his argument got support from a report by the Council of Economic Advisors, which claimed that cutting annual growth in health-care spending from 6% to 4.5% could create 500,000 jobs per year and increase annual family income by $2,600 over the next decade.

Alas, the report lacked details regarding how such goals would be met, and failed to mention the extra dollar or two in government spending that would be needed to jump-start the process.

The report also acknowledged that the 25% reduction in the rate of growth in spending was “near the upper bound of what is feasible.”

Republicans and independent analysts were deeply critical of the report, decrying in particular the assumption that a broad expansion of health insurance could translate into long-term savings for the government and the economy as a whole.

“This report is nothing more than smoke and mirrors,” seethed House Minority Leader John Boehner to the Washington Post. “The administration hasn’t offered a credible plan to (cut costs) without raising taxes or rationing care.”

Nevertheless, the Unflappable One pushed onward, releasing the contents of a letter from a consortium of industry stakeholders that promised to help save money over the next decade. 

In it, American Hospital Association pledged to fight nosocomial infections and readmissions. The AMA said it would coax physicians to follow evidence-based guidelines for back pain, heart disease and prenatal care. Big Pharma said that starting drugs earlier in the course of certain illnesses could reduce the need for more costly interventions later on.

One can only wonder why these obviously good ideas weren’t implemented long ago.

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Bay State Pulling Back on Coverage

June 25th, 2009 | No Comments | Source: Boston Globe

In 2006, Massachusetts enacted a law requiring that all residents obtain health insurance.

Ever since, developments there have been watched closely since what happens in the state might play out nationally should the Great American Health Care Do-Over include an individual mandate.

notenoughdoughUnfortunately, the Bay State’s program has been plagued by unsustainable cost escalations since Day 1, and the situation has been exacerbated recently by recession-related budget shortfalls and rising unemployment.

It was a matter of time before cuts had to be made, and that happened yesterday when state policymakers announced they’re cutting $115 million, or 12% from the budget of Commonwealth Care, a centerpiece of the state’s initiative which subsidizes premiums for poor residents.

The cuts amount to a forced slowdown in Commonwealth Care enrollment. According to the Boston Globe, about 18,000 residents who qualify for subsidies but who have not designated a health plan will no longer be automatically enrolled in program.

whyisthismansmiling?Tentative cuts in dental coverage for 92,000 Commonwealth Care enrollees and health insurance for 28,000 legal immigrants have also been proposed, although these proposals  must be approved by governor Deval Patrick.

He has until Monday to decide.

Commonwealth Care currently has 177,000 members. It’s projected to have 212,000 by year end, 2010.

“No decision has been made’’ on the immigrant coverage issue, Leslie Kirwan, Patrick’s secretary of administration and finance told the Globe. “It’s certainly going to be at the top of the list’’ of items Patrick might restore to the budget, she added.

Leaders of Health Care for All, a Bay State consumer group, said the proposal would be tough on non-English-speaking residents who find it hard to navigate the complex enrollment process for Commonwealth Care.

“My concern is people will not get the care they need,’’ lamented the group’s representative, Lindsey Tucker to the Globe.

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Billing Costs a Fortune

June 19th, 2009 | No Comments | Source: Healthcareitnews

Everyone knew the US’ Rube Goldberg healthcare system was plagued by high costs for billing- and insurance- related activities, but few would have believed it was this bad.

todaysbillsA recently concluded 3-year study of the matter has revealed that administrative (non-physician) costs associated with these 2 activities add up to $51,221 per FTE physician per year.

That’s not including the astonishing $34,052 per year per FTE physician to account for the physician’s own time spent on billing and insurance.

Summing the 2 brings the annual spend on these activities to $85,273 per FTE physician, or 10% of the total operating revenue for an average practice.

Approximately 0.67 FTE non-clinical personnel per FTE physician is allocated to billing and insurance, according to the study.

To reach their conclusions, Julie Sakowski and colleagues at the Sutter Health Institute interviewed business office personnel, observed office work flows, conducted budget and expense reviews and implemented a survey to assess clinician time spent on billing and insurance.

The study was funded by the Commonwealth Fund and the Robert Wood Johnson Foundation.

In a separate study just released by the Medical Group Management Association, investigators found that physicians spend about 43 minutes per workday interacting with insurance plans.

MGMA estimated that system-wide, overall staff time spent on insurance matters alone equaled $21-$31 billion per year, or $68,000 per physician per year, a number that can be reconciled with results from the above-mentioned Commonwealth Fund study.

“Minimizing billing and insurance-related activities is not the only goal of (health system) reform, (but) standardizing health plan features and processing requirements presents a tremendous opportunity for improving efficiency in a multi-payer health care system,” Sakowski told HealthCareITnews.

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Bay State Goes Back to the Future

June 9th, 2009 | No Comments | Source: Boston Globe

Massachusetts’ universal health care plan has increased the number of insured Bay State residents and caused the states’ already highest-in-the-nation health care costs to balloon 42% in just 3 years.

newstatepaymentsystemNow it’s time to pay the piper, and the Bay State’s Special Commission on the Health Care Payment System believes the way to do that is to implement a capitation model similar to the one that was ridiculed, then buried 15 years ago.

In proposing a system that establishes prospectively a single, comprehensive payment that covers all care for an entire year, Commissioners hope to discourage providers from offering unneeded tests and treatments, and encourage provider network development.

The networks would, they hope, more effectively manage care across the continuum of care and reduce errors in information handoffs.

The old fee-for-service system “has all the wrong incentives,” Dolores Mitchell, a Commission member told the Boston Globe. “People know the system has been dysfunctional for years.”

The Commission must still decide how quickly to implement the new payment mechanism, which necessitates a massive reorganization on the provider side, and how to split fees among PCPs, specialists and hospitals. That’s the La Brea of tar pits.

lookwhatIfoundCapitation was popular during the heyday of managed care in the 1980s and early 1990s.

It caused many small practices to lose millions on very sick patients, and raised concern that physicians were denying patients necessary care in order to stay within budget.

Commissioners believe the state can overcome the former problem by setting aside a separate pool of funds for the very sick, or by insuring providers against large losses.

The denial of service issue, they hope, could be handled through close monitoring of the quality of care.

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Backpedaling on Cost Containment

May 18th, 2009 | No Comments | Source: NY Times

That didn’t take long.

onestepforward2backJust 3 days after the Big O appeared to make serious hay out of last Monday’s announcement that key health care stakeholders were steppin’ up to save 2 trillion or so in future health care costs, reps from providers and insurers threw a bushel of thumb tacks on the road.

The Coronated One had hailed their cost-cutting promise as historic.

“These groups are voluntarily coming together to make an unprecedented commitment,” Obama told the New York Times. “Over the next 10 years, they are pledging to cut the rate of growth of national health care spending by 1.5% each year, an amount that’s equal to over $2 trillion.”

Not so, say the reps, who clearly caught an earful from their constituencies after the photo op. They claim to have agreed to cool off spending more gradually and never did they sign up for specific year-by-year cuts.

“There’s been a lot of misunderstanding that has caused a lot of consternation among our members,” Richard Umbdenstock told the Times. And the president of the American Hospital Association added that he’s “spent the better part of three days trying to deal with it.”

visionaryleadertackleshealthreformTo make matters worse, Nancy-Ann DeParle, the director of the White House Office of Health Reform, then pulled a John Kerry by saying “the president misspoke,” and then saying “I don’t think the president misspoke. His remarks correctly and accurately described the industry’s commitment.”

Karen Ignagni, president of America’s Health Insurance Plans remembers reaching consensus around the concept that savings would “ramp up” more gradually than what Obama had said.

And for his part, David Nexon, an EVP of the Advanced Medical Technology Association recalled that “there was no specific understanding” of the pace with which savings would be achieved.

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Comparative Effectiveness

May 12th, 2009 | No Comments | Source: Wall Street Journal

fightingcostescalationEveryone agrees that controlling health care cost escalation is vital to cutting our budget deficit.

The problem is that no one agrees how to do it, and yesterday’s kumbayah press release by key stakeholders certainly hasn’t addressed the issue substantively.

The Big O has already ticked-off Big Insurance by cutting payments to Medicare Advantage plans, and the $1.1 billion he tucked into his Economic Hail Mary for comparative effectiveness research has garnered similarly negative reviews from Big Pharma and the Device Makers.

Obama believes cost-effectiveness research can help physicians reduce wasteful or ineffective treatments, especially if they are reminded about the findings at time they write orders.

This could be done by incorporating reminder systems into those newfangled EMRs he’s incentivizing physicians to adopt.

The Hail Mary allocated $400 million to the National Institutes of Health, $300 million to the Agency for Healthcare Research and Quality, and another $400 million to Health and Human Services.

This amounts to a budget increase, not a policy shift for AHRQ. For example, its 2007 guide to pain medication for osteoarthritis explained how a 30-day supply of Lodine cost $170 whereas the same course of treatment with aspirin cost $10.

And CMS has long-since established the precedent of using AHRQ-sponsored research in reaching coverage decisions for Medicare and Medicaid.

Still, the decision raised red flags for Big Pharma, whose trade group was one of the signees in yesterday’s kumbaya press release, and the device makers as well.

what'satstakeTeresa Lee, a VP at the Advanced Medical Technology Association, warned the Wall Street Journal for example that using “this research to deny access to appropriate treatments for patients with (specific) medical histories and needs should not be the objective.”

And on the Hill, Republican Senator Jon Kyl just missed passing legislation that would have prevented CMS from relying on comparative effectiveness research to deny coverage.

Charles Grassley and Russ Feingold, 2 key actors in health reform legislation, voted for that one.

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Happy Talk on Cost Reduction

May 11th, 2009 | No Comments | Source: Washington Post

A coalition of health industry stakeholders, including some that scuttled Hillary Care in 1993, have offered to help save $2 trillion from projected increases in health spending over the next decade, according to White House officials.

healthreformtotherescueThe group includes the American Medical Association, the American Hospital Association, the Pharmaceutical Research and Manufacturers of America, America’s Health Insurance Plans, and the Service Employees International Union.

“We are developing consensus proposals to reduce the rate of increase in future health and insurance costs through changes made in all sectors of the system,” the stakeholders wrote in a letter to the Big O that was obtained by the Washington Post.

“We are committed to taking action in private-public partnership to create a more stable and sustainable health care system.”

The groups want to meet with Obama before offering specifics.

Obama administration officials praised the offer as one that should enhance momentum for health care reform. Their goal is to have a bill passed by the end of this summer.

“As restructuring takes hold and the population’s health improves over the coming decade, we will do our part to achieve your administration’s goal of decreasing by 1.5 percentage points the annual health care spending growth rate,” the groups wrote.

Projections are that after just 5 years, the proposal would save a family of four $2,500 per year in health-care costs. Within a decade, the savings would “virtually eliminate” the nation’s budget deficit.

healthreformissoFUNOf course this is all happy talk until the groups specify how they will achieve their cost reduction targets and how the required behavior will be monitored and enforced.

That is not going to be a walk in the park.

Still, it’s a good day for the health reform movement. Poll after poll after all has shown that while Americans care deeply about the number of uninsured citizens, their top complaint by far is the rising cost of care.

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Health Wonk Review: The Carousel of Progress

April 16th, 2009 | 6 Comments | Source: Pizaazzview

With apologies to GE, Disney and the 8 US citizens who remain optimistic about prospects for our health care system.

Welcome to the US Health Care Carousel of Progress!

greatbigbeautifultomorrowNormal carousels just spin ’round and ’round and don’t get you anywhere, but ours is different.

The Health Care Carousel makes progress every year.

And progress isn’t simply moving forward, it’s working together and dreaming and assuring better health care for all.

Progress is the whiz-BANG of an MRI machine in use for the evaluation of a 22 year old with a headache. It’s the drug-induced smile on the face of a woman that became depressed after losing her home to foreclosure.

Progress is the rhythmic lub-dupp of a heart beating normally following a transplant for preventable cardiac disease. It’s the sound of an uninsured child wheezing in a crowded emergency room.

Why, you can hardly imagine all the amazing gadgets they’ve got in ERs nowadays!

Remember the sixties when folks got their exercise doing the Twist? Well, today we keep our cholesterol down with pills!

And our food safety system has never been better.

Yowe'regood!Our generation may be the first in 300 years to experience a decrease in life expectancy, but think how much worse it would be without $10,000 cancer drugs and blood thinners that prevent complications from hardware we’ve inserted into people’s bodies.

It’s never been easier to find a PCP, and would you believe it? They’re building our city’s 17th PET scanner right where that run-down urban health clinic used to be.

You should hear physicians rave about how those newfangled EMRs save them time.

And progress even has a smell! It’s the smell of money lining the pockets of a hundred-thousand physicians that have been bought off by Big Pharma.

With all these marvels, it’s hard to believe things could get better than they are right now. But as you join us for a spin around our Carousel of Progress, you’ll surely agree. Anything’s possible.

Ethics
In a referenced essay titled, Transparency in the Pharmaceutical Industry, Brain Blogger’s Jennifer Gibson describes how the impending passage of the Physician Payments Sunshine Act has motivated Big Pharma to disclose financial relationships with physicians. She warns there may be adverse consequences from this otherwise laudable development: some physicians will be discouraged from forging socially beneficial collaborations with the private sector.

nowiwillsaveyourlifeLast week, the FDA’s Psychopharmacologic Drug Advisory Committee unanimously rejected AstraZeneca’s application to market its atypical anti-psychotic drug Seroquel for generalized anxiety disorder and major depression.

Merrill Goozner at GoozNews applauds the decision, but wonders whether the agency may have left itself open to charges of bias by seating a patient representative on the panel who had lost a son to cardiac arrest while taking the drug. 

Health Care Renewal contributor Roy Poses has reviewed an unseemly side show to the Madoff scandal. The antagonist is Ezra Merkin, a hedge fund director charged with fraud for misrepresenting his investment strategies.

Merkin and Madoff had served on the board of Yeshiva University, which lost $110 million to the Ponzi scheme. Their unholy alliance leads Poses to consider possible negative consequences of having too many financial types on the boards of academic institutions.

Insurance
In the latest chapter of her neverending odyssey to navigate Big Insurance and the health care system generally, Colorado Health Insurance Insider’s Louise Norris describes what happened when her husband needed knee surgery. The savvy couple planned for every contingency, yet still they encountered a system failure in the form of an out of network charge.

we'resogoodwe'rebadJaan Sidorov at Disease Management Care Blog has proposed a frightening, unintended consequence of health care reform which is that private health insurers might, like AIG, become too big to fail.

Sidorov thinks creation of a new public insurer will prompt a wave of consolidation in Big Insurance, and the remaining behemoths will seek cover in the form of regulatory oversight from the Feds.

Over at The Health Care Blog, Brian Klepper has contributed a wide-ranging historical perspective on efforts by Big Insurance to control health care cost escalation.

After characterizing utilization review and PCP gatekeeper systems as well-intentioned but poorly executed efforts, he proposes that tricked-out workplace-based clinics (“onsite clinics”) may be a solution, and cites facilities on the premises of Cigna as shining examples.

He concludes however, that the proof will be in the pudding. After all, everyone thought UR and gatekeepers were good ideas, too.

There’s a great, big, beautiful tomorrow,
Shining at the end of every day

There’s a great, big, beautiful tomorrow
And tomorrow’s just a dream away

Man has a dream and that’s the start
He follows his dream with mind and heart

When it becomes a reality
It’s a dream come true for you and me

Access, Cost Escalation
InsureBlog’s Bob Vineyard reviews interim results from Massachusetts’ much publicized universal health care plan, which many believe should be a model for national health care reform.  The plan has left at least 200,000 state residents uninsured while utterly failing to rein in costs. And to make it right Vineyard warns, Bay state lawmakers are either going to have to squeeze providers even more or (gasp!) ration care.

You'vegot10minutesAt Managed Care Matters, Joe Paduda has posted a dispassionate, fact-based treatise designed to calm the knee-jerk anxiety that normally surrounds concepts like universal health care and rationing.

He points out for example that Big Insurance already engages in rationing through pre-certification processes, provider agreements and so forth.

He then dismantles the claim that universal health care leads to longer waiting times for care. Paduda concludes that if we manage to institute such programs, “access will go up and waiting times may well go down.”

Amid a fusillade of jabs and an occasional uppercut to the jaws of the Big O and his admirers, JD Bell reveals over at It Takes Work that Howard Dean has launched a web site to promote his own vision for health care reform.

According to Bell, Dean is concerned the Big O is waffling on his campaign promises, and wants nothing more for the American people than what Obama promised them prior to November 4.

Writing for Workers’ Comp Insider, Jon Coppelmen observes that employers’ most effective tools for managing comp losses vanish after they lay off employees. The trust, indeed the entire relationship between employer and former employee, is lost. This leaves claims adjusters, who are typically overworked and not properly incented, to manage workers’ compensation costs.

With unemployment approaching historical levels, Copplemen’s antidote, three proactive steps employers can take to manage the regrettable situation, is timely indeed.

Quality and Safety
A recent NEJM article on the cost and quality implications of readmissions has prompted Maggie Mahar to review the subject over at Health Beat. Mahar summarizes the views of White House budget director Peter Orszag and others on the matter, and then offers several home-grown suggestions about how to tackle the problem.

Mahar explores for example, the concept of bundling payments to hospitals and physicians who are responsible for care immediately following discharge, and directing special attention towards states in which the readmission problem is particularly severe.

Novo Nordisk had been prepared to discuss cardiovascular complications at last week’s FDA advisory panel meeting regarding liraglutide, its new diabetes drug, but instead the drug’s association with rare tumors of the thyroid drove the discussion.

Jeffrey Seguritan at Nuts for Healthcare summarizes the surprising development then expands into an informative discussion of the efficacy with which drug trials assess cancer risk.

There’s a great, big, beautiful tomorrow,
Shining at the end of every day

There’s a great, big, beautiful tomorrow
And tomorrow’s just a dream away

Man has a dream and that’s the start
He follows his dream with mind and heart

When it becomes a reality
It’s a dream come true for you and me

Legal
HealthBlawg’s David Harlow is generally supportive of the deal struck by CVS and Google, in which prescription data from the retail pharmacy giant can now be directly imported into Google Health, the search giant’s personal health record. On balance Harlow says, the gains in patient safety and quality outweigh the increased risk of breaches in patient confidentiality, at least for people who have not recently given birth to octuplets or are named Britney Spears.

Health IT
lookwhatjustpoppedupWhen a healthcare journalist came down with a touch of bronchitis, he blew off the last vendor meeting at HIMSS and went to the doctor.

His encounter underscored a yawning gap between today’s reality of spotty EMR adoption and a future-state of nirvana that has been promised by so many. 

The real-life story appears at Niel Versel’s Healthcare IT Blog.

We hope Neil feels better, by the way.

At the Health Business Blog, David Williams has posted a transcript of his interview with Wayne Guerra, the co-founder and chief medical officer of Healthagen, the maker of a way-cool iPhone application known as iTriage.

In the interview, Guerra explains how his mobile triage and health information tool can be used, the types of people most likely to benefit from it, and how he hopes to monetize the idea.

The Healthcare IT Guy invited Paul Nuschke, a software design expert at the IT consultancy Electronic Link to comment on the subject of EMR usability. Nuschke asserts there are three keys: the EMR should be easy to learn, efficient, and prevent errors automatically.

Nuschke appends a series of baffling screen shots which make it laughably clear that some of the mainstream players in the space aren’t quite there yet.

Policy
Over at the Healthcare Economist, Jason Shafrin asks, “Why have disability rates decreased?” To answer the question, Shafrin reviews a scholarly piece from the National Bureau of Economic Research. He notes that the apparently heartening trend has occurred despite an increasing burden of illness in the general population. The beneficial trends, he concludes, are attributable primarily to non-medical advances like “internet shopping, amplifying devices for phones and street ramps” rather than health care-specific interventions.

Damn, we thought we had something there for a moment.

Actual US Health Care Carousel of Progress:

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Gardasil for Boys

April 14th, 2009 | No Comments | Source: Washington Post

butyoucanthavesextillyou'remarriedThree years ago when Merck introduced Gardasil, the anti-HPV vaccine for the prevention of cervical cancer and genital warts in girls, the buzz focused on whether it might encourage girls to have sex.

Now, the vaccine maker wants to market the jab for boys and the tweets are all about vaccine safety and cost-effectiveness.

That seems fair.

Human papillomavirus causes cervical cancer, which strikes 10,000 and kills 3,700 US females per year. In males, HPV causes 7,500 cancers per year, involving primarily the penis and anus, and kills about 1,000. 

Gregory Zimet, a Indiana University professor of pediatrics marveled the hypocrisy. “I wonder if it was the reverse, and there was a vaccine for women that helped prevent prostate cancer in men, this would be as much of an issue.”

After the FDA green-lighted Gardasil in 2006 for girls aged 9 and up, medical groups recommended they should take the spike by age 12, or before they became sexually active.

At the time Merck tried to persuade states to add Gardasil to the list of vaccines required for children to attend school. It dumped that strategy after being scorched by critics who thought the decision should be left with parents.

nowIcanhavesexMerck’s field tests of Gardasil in men show that it is safe in the short term, and that it prevents HPV infection, genital warts and precancerous growths.

Gardasil vaccination costs about $500 for the 3 shots and the related office visits.

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