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Matthew Holt

Sermo teams with J&J

One of the big stories at the Health 2.0 Conference in San Diego is that Sermo is partnering with Janssen Global Services (part of J&J) to create tools for doctors to help them move their patients through the health care system. It’s the first time Sermo has explicitly both added a mobile app and moved into the transactional end of its physician community members’ businesses. Sermo’s figured out that a significant portion of their referrals never result in an actual appointment. So they’re going to be working with Jannsen to help close that loop, and we can assume that there’ll be a series of physician and consumer-aimed services to come from the partnership. Sermo says to expect the first product by end of spring. While new entrants like Doximity are aiming at the same market, Sermo’s marketing reach and J&J’s muscle makes them a formidable competitor.

And if you’re at the Health 2.0 Conference in San Diego, Dan Palestrant, Sermo’s CEO will be making an appearance to explain a tad more!

Direct project heading in right direction

The Direct Project is the lightweight version of moving health data around between providers. While there’s been lots of fuss about NHIN, HIEs and data interoperability, the Direct project has sensibly been dumbed down enough so that it reminds everyone of email. Sure, it’s encrypted, standardized, blah blah, but it looks enough like email that it may just work. Today ONC announced that more or less every vendor has signed on, so that emailing medical records should soon be very common.

The Real Cost of Early Elective Deliveries

What if I told you that across the country there’s a procedure being performed on pregnant women that makes their newborns more likely to end up sick and in a $3,000-a-day Neonatal Intensive Care Unit (NICU)?

Too outrageous to believe?

It’s true.

Early elective delivery ‚ when labor is induced 3 to 4 weeks early without medical necessity , is on the rise in the U.S. According to a report released in January 2011 by the Leapfrog Group, between 1992 and 2003 the number of these births increased from 19% to 29%. Seven hospitals across the country perform these deliveries on 100% of women without medical necessity, and over thirty others perform them 50% of the time or more.

The American College of Obstetricians and Gynecologists (ACOG) has long recognized the risks associated with inducing labor when it is not medically needed. One retrospective study found that infants born at 37 weeks are nearly 23 times more likely to suffer severe respiratory distress than those born between 39 and 41 weeks. ACOG thinks this is unacceptable.

So why do hospitals do it? Experts see a few possible explanations:

  1. Obstetricians deliver but don’t care for newborns. They move quickly from birth to birth, and lack a complete understanding of the complications associated with early deliveries.
  2. Natural deliveries are difficult to anticipate. Nature can be fickle and tends to ignore the schedules of busy physicians. Patients may simply agree because they see little harm in early deliveries.

There’s yet another incentive worth pondering. It’s prefaced by a big green $, and followed by plenty of zeros. NICUs – where many pre-term babies end up – are highly profitable for hospitals. John Lantos, a former Chief of General Pediatrics at the University of Chicago, recently wrote in Health Affairs:

The NICU – which represented nearly 4 percent of total admissions [for the hospital] ‚Äì had generated 11 percent of the net revenue. Since most of the academic medical center’s divisions either barely broke even or lost money, that meant that a staggering 69 percent of the net profits of the entire hospital system came from the 4 percent of hospital admissions to the NICU.

In other words, healthy, full-term babies are not nearly as profitable as preemies. The average cost of caring for a premature baby is $41,610 versus just $2,830 for a full term baby. A clear line can be drawn between more early term births and more days spent (and dollars generated) in the NICU. Increasing the numbers of preterm births creates a perceived need for additional NICU beds, thereby increasing the need to fill those beds. A self perpetuating cycle quickly emerges.Continue reading…

AEI defends Health 2.0 vs the “old guard”

Not often a lefty like me promotes AEI, but Jon Entine has written a great piece attacking the behavior of the FDA. For the last 3 years the establishment has been attacking the DTC genomics companies for basically allowing people to access their own information. But it’s worse than FDA and others telling the fibs that Entine’s exposed. At a meeting two years ago in DC I asked the regulator from New York state why they were going after Navigenics & 23andMe. Her answer “doctors have power in my state”.

Catching Babies? JD Kleinke talks (well, IMs)

JD Kleinke has been one of my favorite people in health care for at least a decade (or probably more!) notwithstanding his barrages at all and sundry (sometimes including me) on this very blog. He’s been a little quiet of late, but that silence is over. He’s out with a new novel called Catching Babies. It’s a topic I’m thinking about a lot! As you may know I’m less than 2 months from being a first time dad, and Indu (my Health 2.0 partner) is similarly close to being a first-time mom. Both me and my wife read Catching Babies in pre-publication and it’s a tour de force of health policy and medical soap opera–Health Affairs meets Grey’s Anatomy–wrapped up in the complex world of childbirth. Now the book is out and we’ll be having JD at the  Health 2.0 Spring Fling in San Diego in a fireside chat about the book with Amy Romano (@midwifeamy). but I thought I’d take the chance to interview JD about the book and his previous and next steps. Here’s a (heavily edited) version of our IM chat–Matthew Holt

Matthew: You’re well known to THCB readers as a medical economist, policy wonk, and health IT entrepreneur geek from way back.  The obvious first question – why a novel of all things?  Does your shift to fiction imply that you’ve lost touch with reality?

JD: Lost touch? That would imply that I was ever in touch with reality in the first place!  You may recall that my very first book tried to argue that managed care was a necessary evil for the good of us all, including providers.  That the harshness of commercial managed care was the change agent we needed to get hospitals and physicians to modernize. I suppose that turned out to be fiction as well!

Matthew: OK so you’ve always been a bit of a dreamer, I might say the same thing about the health care IT ventures you’ve been involved with. But some of them, like Solucient and HealthGrades, are now pretty successful!  And Catching Babies is not just a novel – it’s a great story – but it also has more powerful things to say about a dozen health policy problems than as many treatises on the exact same subjects.

JD: Thanks for the kind words about the story, and if that’s true, it’s powerful as a policy document precisely because it is a novel.  For better or worse, this is how all of us, as human beings, relate to even the most abstract health care policy, or new technology, or business idea.  Every health policy is ultimately a patient, and every patient is ultimately a story.  Medicare coverage is extended for a new treatment because a Congressman’s mother once needed it. The crazy quilt of health benefits mandates at the state level exist because someone in each of those states got sick, was stuck with the bills for treatment, and took his case to the state senate either directly, or via the front page of the largest Sunday paper in his state. If you look back at the news building up to the passage of health reform, you’ll see that public opinion probably crested in support, when President Obama took the stage with the sweet lady from Ohio with cancer who couldn’t get health insurance.Continue reading…

Health 2.0 @ SXSW

My wonderful colleague (and Health 2.0’s Co-Chairman & CEO) Indu Subaiya has literally just come off stage in Austin, Texas where the annual South by SouthWest Conference has for the first time had a health track. Indu moderated a panel that included Aman Bhandari from HHS, Gilles Frydman from ACOR, Roni Zeiger from Google & Jamie Heywood from PatientsLikeMe. Judging by the Tweetstream and by this review on OpenSource.com from RedHat’s Ruth Suehle, the panel was a total smash. That’s not of course a total accident! Every one of those panelists and many others (like Jane Sarasohn-Kahn who’s panel is also today) are regulars at Health 2.0, and in some way Indu was taking SXSW a taste of the best of the Health 2.0 Conference. But the fact that the techie crowd at SXSW were lining up to get in is great news.

We desperately need more innovators to come into health care. We’ve been working with the whole Health 2.0 community to do that. Last year we introduced the Health 2.0 Developer Challenge, and this year we’re expanding it. Now other mainstream technology gatherings like SXSW and OSCON are helping spread the word. It’s heartening to read about people who are just discovering the amazing work of PatientsLikeMe, and in some ways it’s amazing that more people don’t know about this sector. But the time really has come to put America’s technology entrepreneurship to work in the heart of health care, and move it in from the edges.

And of course if you want to be ahead of the curve you should be at the Health 2.0 Spring Fling in San Diego in 8 days time!

Meanwhile, here are the latest news bites from our sister blog Health 2.0 News, including Teladoc & Aetna, Vitals buying Healthleap and more.

Health 2.0 News Bites are up

Over on our sister site, the Health 2.0 News Blog, MEDecision, Human Health Project and many more are on this week’s extensive list of news bites–with cool new icons!

Health 2.0 Spring Fling–preview interviews

At Health 2.0 we are getting very excited for the Spring Fling this March 20-21, and in preparation, we’re doing a series of interviews with some of the speakers and panelists. Below is a list of all the interviews we’re already done, and stay tuned for two more coming this week.

Check them out and catch our Spring Fling fever!

  • Rushika Fernandopulle talked with us about the challenges and rewards in creating his new healthcare delivery model, Iora Health. Listen here.
  • Preston Maring, founder of the Kaiser Permanente Farmer’s Market, talked about the evolution of the KP farmer’s market. Listen here.
  • Brian Witlin of ShopWell gave us the details on his mobile application that allows users to scan products and see how well they fit into the user’s health and wellness goals. Listen here.
  • Amy Romano of Childbirth Connection told us what she hopes to see come from the intersection of health IT and maternity care. Listen here.
  • Eric Zimmerman of RedBrick Health gave us a peek into the new social engagement platform they’ve created for the Alliance for a Healthier Minnesota. Listen here.
  • Hemi Weingarten, founder of the Fooducate app, told us how a simple barcode scan can inform and educate consumers in the grocery store. Listen here.

Want to hear more? Come see all of these speakers and more at the Health 2.0 Spring Fling this March 21-22, 2011. Sign up here!

Health 2.0 Spring Fling Updates

Health 2.0’s Spring Fling is just 3 weeks away. We are expecting a great crowd, so register today!

Catch expertly curated sessions with brand new themes, products debuting to the public for the first time, and discussion on compelling success stories about delivery reform, all while celebrating Spring in San Diego!

Complete agenda here

Newly Confirmed Speakers

More speakers – more perspectives – more reasons to attend Health 2.0!Continue reading…

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