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John Irvine

Anthem and Cigna: A Love Story

Even before the first date, Anthem Inc. CEO Joe Swedish was smitten with Cigna Corp.

But as in any love story, there would be plenty of drama between then and the July 24 announcement of the two health insurance giants’ $54 billion engagement.

At one point, the Anthem board made Swedish break up with Cigna, but then three months later sent Swedish swooping back in with pleasantries and ultimately a bear hug that Cigna couldn’t refuse.

And along the way, both Anthem and Cigna flirted with Humana Inc., causing everyone to get jealous. And it appears that Cigna even entertained secret overtures from Minnesota-based UnitedHealth Group.Continue reading…

Private Medicine in India is a Free Market

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Once, a farmer from a village in Bihar was diagnosed with colon cancer. He came to Patna, the capital city, to have the tumor removed. Because he was poor, my father recommended a young surgeon who trained in the UK. The surgeon was competent and idealistic. He was a Fellow of the Royal College of Surgeons. His charges were the lowest. He did not charge the extremely poor.

The farmer declined, saying “if this babu is treating patients for free, he can’t be a good surgeon.” The farmer chose the most famous surgeon in the city, whose charges were not astronomical in comparison, but certainly higher. The farmer paid full fare – there were no discounts for poverty. The practice accepted credit cards. He paid cash. Once the surgeon received half the payment, he made the incision. The surgery was uneventful. The farmer was cured.

This was a voluntary contract between surgeon and farmer. No middle man. No forms to submit. Cash for scalpel and the skill of its bearer. There is a resurgence of this model in the US, known as Direct Pay Medicine. Despite India’s socialist roots, paradoxically, much of medicine has always been direct pay, or private.Continue reading…

Private Medicine in India is No Free Market

Screen Shot 2015-10-01 at 9.46.12 AMOn the surface, the proposition that medical care in India is a free market seems plausible.

Setting aside the perennially underfunded public healthcare system, there is a large second tier system where patients get care without any apparent oversight. Sure, laws and rules abound, but these are easily overcome with bribes paid to bureaucrats. A “cost of doing business,” you might say.

In that private system, the care rendered is up to the doctor and patient, and the terms of the transaction are simply decided on the basis of cash exchanging hands. What could be more free market than that? A libertarian paradise!

But Voltaire wisely advised debaters to define their terms, or else engage in fruitless conversations. So perhaps we should make it clear that a free market is not solely defined on the basis of voluntary exchanges, although I recognize the prevalence of that unfortunate misconception.

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Welcome to ICD-10

Screen Shot 2015-10-01 at 7.40.20 AMToday, the U.S. health care system moves to the International Classification of Diseases, 10th Revision – ICD-10. We’ve tested and retested our systems in anticipation of this day, and we’re ready to accept properly coded ICD-10 claims.

The change to ICD-10 allows you to capture more details about the health status of  your patients and sets the stage for improved patient care and public health surveillance across our country. ICD-10 will help move the nation’s health care system to better, smarter care.

You may wonder when we’ll know how the transition is going. It will take a couple of weeks before we have the full picture of ICD-10 implementation because very few health care providers file claims on the same day a medical service is given. Most providers batch their claims and submit them every few days.

Even after submission, Medicare claims take several days to be processed, and Medicare – by law – must wait two weeks before issuing payment. Medicaid claims can take up to 30 days to be submitted and processed by states. Because of these timeframes, we expect to know more about the transition to ICD-10 after completion of a full billing cycle.

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Is Obamacare Working? Show us the Data

MU_stages_final
As President Obama’s healthcare reform unfolds in the last years of his administration, critics and supporters alike are looking for objective data. Meaningful Use is a funding program designed to create health IT systems that, when used in combination, are capable of reporting objective data about the healthcare system as a whole. But the program is floundering. The digital systems created by Meaningful Use are mostly incompatible, and it is unclear whether they will be able to provide the needed insights to evaluate Obamacare.

Recent data releases from HHS, however, have made it possible to objectively evaluate the overall performance of Meaningful Use itself. In turn we can better evaluate whether the Meaningful Use program is providing the needed structure to Obamacare. This article seeks to make the current state of the Meaningful Use program clear. Subsequent articles will consider what the newly released data implies about Meaningful Use specifically, and about Obamacare generally.

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Should the Government Provide Infrastructure For a Health Data Highway?

Susannah Fox, the CTO of HHS was talking at the AcademyHealth Concordium 2015 conference this week. Her energetic call for innovation got me thinking:

Should the government be in the business of funding infrastructure for healthcare communication?

Comparable infrastructures

The governments on local, state and federal level have deployed comparable infrastructures and licensing in the interest of public health and safety:

1. Licensing of car tags while providing infrastructure for roads

2. Licensing of planes and pilots while providing infrastructure for air traffic control

3. Licensing post office locations while providing infrastructure for moving mail

How about: Licensing providers (NPI) while providing infrastructure for health data exchange “highway”?

The communicating health professional

What if providers could communicate in a secure “healthcare highway” or cloud system?

Dr. Specialist: “Hey @npi.1234567890 attached a consult note.”

Dr. Primary: “Thanks @npi.0987654321, sending 3 more pts your way with similar symptoms. (attached)”

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ICD-10 and the Apocalypse

Screen Shot 2015-09-28 at 9.42.44 AMOctober first is nearly upon us.  For many of us, this date has little significance beyond the promise of cooler weather, lovely autumn colors, and the invasion of neighborhoods with giant inflatable Halloween decorations.  While these decorations are fascinating to me, they do cause me to ponder the enormous gulf  between my taste and that of my neighbors.  I am not certain if this is meant to scare off potential alien invaders or simply to make them think we are not worth bothering with.

October 1, however, is a huge day to the medical community.  It is a day that will live in infamy.  It is the object of dread, of diaphoresis, of doom.  October 1 is ICD-10 day.  This view was further bolstered when I went to the CMS (Government Medicare) website, there was actually a doomsday countdown timer at the top of the page. Just looking at this makes me anxious.

For those still unaware, ICD-10 is the 10th iteration of the coding taxonomy used for diagnosis in our lovely health care system.  This system replaces ICD-9, which one would expect from a numerological standpoint (although the folks at Microsoft jumped from Windows 8 to Windows 10, so anything is possible).  This change should be cause for great celebration, as  ICD-9 was miserably inconsistent and idiosyncratic, having no codes describing weakness of the arms, while having several for being in a horse-drawn vehicle that was struck by a streetcar.  Really.

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Post-HITECH HIT: Still Waiting

flying cadeuciiWhen it comes to health information technology in the United States, are you an optimist or pessimist?

Do you think it’s likely people who want health information will soon have routine, seamless digital access to it?

Most physicians and hospitals have at least some sort of electronic health record, yet big adoption gaps remain among physicians as just over half now have electronic health records. We can declare success and move on, right?

Hardly.

Most of us still cannot get health information when we want or need it. Health professionals and care systems trying to implement value-based payment and delivery reforms struggle to get the information they need to do that transformation. Communities trying to improve the health of their citizens have trouble getting the data they need and turning it into useful information.Continue reading…

What ONC Got Wrong in their Guidance on Telehealth

Screen Shot 2015-09-24 at 1.38.45 PMTelehealth – which lets patients see a doctor immediately, anytime, anywhere – shows no signs of slowing.  We are seeing this cross-industry, as more health plans make telehealth a benefit to members, and hospitals fold these services into new or expanded offerings for patients.  Consumer-facing products are also on the rise.  Patients can download an app and in minutes, have a FaceTime-like visit with a doctor for faster, more convenient care.

It was great then to see this week that the Office of the National Coordinator for Health IT (ONC) is picking up telehealth as a new focus – by issuing guidance for consumer companies in the design and delivery of these technologies.  The problem is ONC issued guidance without learning first how telehealth is actually being used in the industry today, leading to some basic… let’s just call them “misunderstandings.”

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A Parasite meets Wall Street

Screen Shot 2015-09-24 at 9.23.55 AMToxoplasma gondii is a parasite that causes opportunistic infection in helpless people. It may have met its match. The cost of treating Toxoplasmosis, a rare but extant infection, just shot up exponentially. Drug-resistant strain, you ask? Have physicians in Infectious Disease gone mercenary, you wonder? No. A change in ownership.

Daraprim (pyrimethamine) is a nifty drug which kills parasites. It’s been around for eons. I still recall its name from my medical school pharmacology exam. The price of Daraprim, whose production barely costs a dollar, may rise from $13.50 a pill to $750 a pill, after the rights to distribute the drug were acquired by Turing Pharmaceuticals.

Why? The answer is best told by Michael Shkreli, the CEO of Turing, and former hedge fund manager. The reason why Shkreli has acquired a generic drug lying in a forgotten backwater, and raised the price of a magnitude more suited to the hyperinflation of the Weimar Republic, is to make profits. Lots of profit. If this answer seems inane, ask yourself why a former hedge fund manager would be interested in a rare disease of devastating consequences. Penitence is the wrong answer.

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