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Matthew Holt is the founder and publisher of The Health Care Blog and still writes regularly for the site and hosts the #THCBGang and #HealthInTwoPoint00 video shows/podcasts. He was co-founder of the Health 2.0 Conference and now also does advisory work mostly for health tech startups at his consulting firm SMACK.health.

Bad Backs & Deductibles

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It’s time again for me to use my bad back as a case study in why American health care has such crazy incentives. 

About a month ago at the HLTH conference in Vegas, over the course of a few hours I developed debilitating leg pain. To quote from my earlier twitter  thread on my time in Vegas,  “After 3 days of excruciating pain, my wife insisted I went to the ER. The public policy person in me was horrified but we had already spent our deductible, so the cost was actually lower than paying cash for an MRI”

What actually happened was that after 3 days of dreadful pain & inability to walk (including getting myself home from Vegas using multiple wheelchairs, and being that guy who crawls off the plane onto a wheelchair), I got in to see my chiropractor. He said, you need an MRI to figure out what’s wrong with you. The alternatives were 

Looking good on the gurney!

1) Get insurance to pre approve the MRI. His guess was that that would take a few days or more. I actually called One Medical‘s urgent care video line and the PA I spoke to told me that usually insurance would only approve an MRI after I had done 6 weeks of physical therapy.

2) Pay $500 cash for a free standing MRI that could probably get me in during the next few days 

3) Go to the ER

Now the “incentives” part of this starts to really matter.

Continue reading…

THCB Quickbite: Julian Flannery, CEO, Summus

Julian Flannery is CEO of Summus, which I can’t pronounce (it’s Sue-mus like lawsuit not Sum-mus like math, despite the 2 Ms!). It’s a multidimensional referral platform which combines primary and specialty virtual care for employers, a white-label service for hospitals to deliver their specialty care, and now a peer-to-peer escalation model for specialists to talk to AMC-based specialists & get 2nd opinion reviews. Around 1.4m members on the platform and it’s seen massive usage growth in last 12 months–Matthew Holt

OK, trying more AI to write this

by MATTHEW HOLT

In the far oft halcyon days of last month, I used an AI system from Lex.Page  to write something about digital health. In the past few days the world has gone nuts about a new AI author called ChatGPT. So I tought I would compare and contrast.

Last month Lex.page was asked about Digital Health and it said

Digital Health is one of the most rapidly growing and important sectors in health care today. It is a broad term that encompasses the use of technology to improve health and health care.

Today I asked ChatGPT the same thing. In fact I just wrote “Digital Health” as the Q and this was the A

Digital health, also known as telehealth, is the use of digital technologies to deliver healthcare services remotely. This includes the use of video conferencing, mobile health apps, remote patient monitoring, and other digital tools to provide healthcare services to patients. Digital health can be used to improve access to primary care, reduce costs, and improve patient outcomes.

OK, pretty much a longer version of the same thing but with more details. So then I went BACK to Lex.page to ask it. But I had to ask it “What is Digital Health”

Digital health is a term used to describe the use of technology to improve healthcare. It covers everything from diagnostic tools and monitoring devices to electronic medical records and healthcare analytics. It’s an exciting and rapidly evolving area that has the potential to revolutionize the delivery of healthcare.

So in a month Lex.page has gotten a lot better!

Last month Lex.page said in response to my question/statement, “The biggest challenges for primary care are”

-Access to care

-Cost of care

-Quality of care

So it seems that digital health can help with all of those things. By providing tools that help patients better self-manage their health, digital health can help to improve access to care. By providing tools that help to lower the cost of care, digital health can help to make care more affordable. And by providing tools that help to improve the quality of care, digital health can help to make

I put the same sentence into GPTChat and at the bottom it told me Warning: Your text ends in a trailing space, which causes worse performance due to how the API splits text into tokens. But I asked it anyway and it gave me

A: 1. Accessibility: Ensuring that everyone has access to quality primary care services.

I surmised that it had more answers so I kept hitting submit! It got to another 12 answers with no new question!

Q: A: 2. Cost: Finding ways to make primary care services more affordable and accessible to all. Q: A: 3. Workforce: Recruiting and retaining a sufficient number of primary care providers to meet the needs of the population. Q: A: 4. Technology: Incorporating new technologies into primary care to improve efficiency and patient outcomes. Q: A: 5. Coordination: Improving the coordination of care between primary care providers and other healthcare professionals. Q: A: 6. Quality: Ensuring that primary care services are of the highest quality and meet the needs of patients. Q: A: 7. Education: Educating patients about the importance of preventive care and the value of primary care services. Q: A: 8. Mental Health: Integrating mental health services into primary care to better address the needs of patients. Q: A: 9. Population Health: Developing strategies to improve the health of the population as a whole. A: 10. Data: Utilizing data to inform decision-making and improve patient outcomes. A: 11. Payment: Developing new payment models that incentivize quality care and reduce costs. Q: A: 12. Social Determinants of Health: Addressing the social and environmental factors that influence health outcomes.

OK so those are all separate statements, but it’s pretty damn impressive. How is Lex.page doing? Well I asked it’s chatbot the same statement and it now answered:

The biggest challenges for primary care are likely to be related to access and cost. In many areas of the world, access to quality primary care is limited by geography, poverty, or both. Cost is also an issue, especially in countries with expensive healthcare systems. Additionally, many primary care providers struggle to effectively manage chronic conditions, such as diabetes and hypertension, due to a lack of resources, funding, and staff. Finally, the rapid advancements in technology have presented a challenge in terms of staying up to date with the latest medical developments.

That’s not only pretty smart but it’s quite an advance on the answer it gave me to the same vague question/statement just 31 days ago.

We are seeing a technology emerge right before our eyes.

Presumably the next step is to set it to read some of my favorite pieces on THCB and just have it write for me! Then I will be happily replaced by a robot!

THCB Quickbite: AJ Loiacono, CEO, CapitalRx

AJ Loiacono, CEO of CapitalRx, in a quickbite interview with The Health Care Blog’s Matthew Holt. CapitalRx is up to 1.5m members serviced both as a PBM and as a tech company administering pharmacy benefits using its tech platform. AJ says they’ve demonstrated to the market that they can service customers of any size, and the employer groups are starting to ask the right questions about pharmacy costs.

I’m trying to get AI to write this!

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By MATTHEW HOLT

So it’s a new world in blogging about health care, and when I want to write about Digital Health or primary care, I’ve been told that this system at Lex.Page can do it for me

So here goes and lets see what it says about Digital Health or primary care

Digital Health is one of the most rapidly growing and important sectors in health care today. It is a broad term that encompasses the use of technology to improve health and health care.

OK so it wrote that. Which isn’t bad but not too helpful

Perhaps I can ask it whether it thinks that digital health will have a big impact on the future of primary care

The system at Lex writes that it does think digital health will have a big impact on the future of primary care.

So now it’s just spitting back at me what I asked it. Not too sure how to get it to write more for me

I then asked it to follow this sentence — The biggest challenges for primary care are

-Access to care

-Cost of care

-Quality of care

So it seems that digital health can help with all of those things. By providing tools that help patients better self-manage their health, digital health can help to improve access to care. By providing tools that help to lower the cost of care, digital health can help to make care more affordable. And by providing tools that help to improve the quality of care, digital health can help to make

That is pretty damn good given it’s a machine just guessing what I want it to write, even if it didn’t finish that last sentence. I can imagine that pretty soon I’ll be able to spit one of my talks into it and it will be able to write an article out of it quickly. I’ll be playing around with Lex and I can give some invites — if you want one, let me know.

Interview: Sarah MacDonald, Author, The Cancer Channel

by MATTHEW HOLT

I met Sarah MacDonald in the early 2000s. She is the ultimate extrovert who sings, cooks, maintains a huge circle of friends, and lives life to the fullest–all at a pace & level most of us can’t imagine. In the early 2010s Sarah was flying high. Newly married, trying to get pregnant, all while being a Silicon valley business exec who had increasingly senior roles at eBay. Then in 2012 she was diagnosed with two completely separate types of cancer. And in her head “The Cancer Channel” started playing nonstop.

That became the title of her book. I just read it and I literally couldn’t stop. It’s practical, it’s heart-wrenching, it’s warm, it’s funny (yes, funny!). And it’s an amazing look at the exact experience of someone going through cancer. Or in this case cancer x 2. I was lucky enough to interview Sarah (so there is a very happy ending). So please watch this and buy & read the book

Explorations in French Health Care! (Or what I did on my vacation!)

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By MATTHEW HOLT

This is a personal story about this blog’s publisher (me!) but it has just enough health care stuff to keep it relevant!

This year I finally got invited on the annual week-long mountain bike ride run by my friend JB and his ex Taiwan/Hong Kong buddies. I’ve actually been practicing and training most of the summer and arrived pretty confident even though I knew it would be tough. This edition is in Provence in France.

Before it all went wrong

And then…..2 hours in on the first day it turns out I was too confident…

Back in 2002 I smashed my knee snowboarding into a tree. When I told him my dad said ” You silly twit”

I actually was a silly twit this time too. I was on a new bike (a rental) that was actually much more advanced than my usual one and had a feature I had barely practiced with (a drop seat) that requires a new technique. It had rained heavily the day before so it was wet (& living in California I have very limited experience mountain biking in the rain), and I was behind the pack as my chain had come off. (There was a guide sweeping the rear who fixed it for me). So when I got to the first challenging down hill slope I didn’t do the sensible thing of stopping & walking to the bottom to check it or do what 75% of the group did and walked their bike down it, I just thought, “I can do that’ and plunged down it. Not quite sure exactly why I fell but I went over the bars slightly to the right (luckily missed a tree) & hit the ground on the downslope hard on my right side. In any sport any one of new equipment, new environment, new technique means you should err on the side of caution and I had all 3, yet just went for it! Very bad decision!

After I got up I thought I had just badly winded myself. The guide helped me back on the bike & I rode on. For the next 5 miles or so he helped push me up the steeper bits of a climb (he had an eBike). I actually did a slightly less challenging but still tough downslope section & a friend gave me a big dose of Tylenol at the next stop point. I actually crashed again after that (slipped on a wet rock) but landed ok on my elbow which was padded (as were my knees but not my torso) and only had some slight scratches but I made it to lunch feeling sore but OK.

Continue reading…

Amazon’s Coitus Interruptus: In or out?

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By MATTHEW HOLT

Each week I’ve been adding a brief tidbits section to the THCB Reader, our weekly newsletter that summarizes the best of THCB that week (Sign up here!). Then I had the brainwave to add them to the blog. They’re short and usually not too sweet! –Matthew Holt

Meanwhile, it’s time for Matthew’s tidbits and of course given their recent news-making I am going to focus on Amazon in health care. The news is of course that they are in health care in a big way, buying One Medical. The news is also of course is that they are out–shutting down Amazon Care.

This reminds me of the famous criticism delivered in the British parliament by one MP about another back the last time (in the 1970s) there was a vote about leaving the EU. “The Honourable gentleman can’t make up his mind. First he’s in, then he’s out. In, out. In, out. This is the politics of coitus interruptus.” After a moment a voice from the backbenches shouted “Withdraw.”

So is Amazon in or out?

They are out of their 4 year effort to build a hybrid telehealth-to-home medical group that helps mainstream employers manage their costs. This is despite stating their intent just a few months back to add new clinics and this year adding a decent number of employer clients including Hilton hotels–before that they only really had a few of their own employees as clients. Interestingly enough, it was the development of this platform that convinced Amazon that they didn’t need Haven–their alliance with JP Morgan and Berkshire Hathaway which was developing a similar offering.

They are in to the business of One Medical to the tune of a $3Bn acquisition as well as putting in $300m extra cash so far, and likely a lot more later. Like Amazon Care, One Medical has a hybrid telehealth and clinic approach (though no home visits as yet). When Amazon said they were killing Amazon Care, they suggested that a lack of employer uptake was the biggest problem. One Medical does have employer clients. But these aren’t mainstream low or medium wage employers to whom they are delivering capitated care at a worksite. In One Medical terms that means an employer pays their employees’ $200 per member annual fee, after which the employee can see a One Medical doctor. And curiously enough by far their biggest employer client is Google.

One Medical says that they lower overall costs for their employer clients, but to use another British political line, “they would say that wouldn’t they.” In reality One Medical does very little specialty or hospital care management, and via its relationships with local high-priced health systems is able to charge insurers very high prices for primary care which they seem to actually pay! (And yes I have lots of personal experience here..). Putting aside the fact that One Medical somehow is contriving to still lose loads of money–a big reason why it put itself up for sale–it is not an organization trying to manage costs for employers in value-based care arrangements, unlike say Firefly Health or even Crossover Health (of which Amazon is a big client for its lower paid workers).

You’ll notice that I am conveniently ignoring the Iora Health part of One Medical which they inexplicably bought last year. Iora focuses on capitated services for Medicare Advantage plans, and it is trying to manage costs. Though given the amount it’s losing, that effort isn’t going so well either.

It’s possible that Amazon is going to surprise us and try to turn Iora + One Medical into a capitated giant to work with and steal the margin of the big Medicare Advantage plans. Then later, move that strategy into mainstream employers.

But if they were going to try that it would probably have been easier and more culturally aligned to merge Iora with Amazon Care. My suspicion is that Amazon means what it says and is finding it too hard to manage costs for employers. My guess is it will jettison Iora, keep using Crossover and others to manage costs for its own lower-paid employees, and try to turn One Medical into a Whole Foods-like national brand for the cost- unconscious top 25% of Americans….and somehow make it profitable.

If they manage that it would be great for Amazon’s business. But it would be very disappointing for those of us hoping that Amazon was going to have a serious go at providing a low-cost, innovative service that was trying to lower overall health care costs for employers and make a serious dent in the market power of America’s high priced, under-delivering hospital systems.

Russ Johannesson, CEO, Glooko

Russ Johannesson has been CEO of Glooko since 2018. In that time the diabetes data platform has expanded internationally, made a couple of acquisitions, and added support for digital therapeutics and distributed clinical trials. He brought me up to date with the latest–Matthew Holt

Matthew’s health care tidbits: #Does Medicare Advantage Save the Taxpayer Money?

Each week I’ve been adding a brief tidbits section to the THCB Reader, our weekly newsletter that summarizes the best of THCB that week (Sign up here!). Then I had the brainwave to add them to the blog. They’re short and usually not too sweet! –Matthew Holt

For my health care tidbits this week, the controversy about Medicare Advantage is getting louder and louder. There’s no question that it results in lower out of pocket payments for its members than traditional FFS Medicare. Medicare Advantage members use fewer services, and their care appears to be better “managed” –then again FFS Medicare’s “members” are barely managed at all. 

But the big question is, Does Medicare Advantage save the government money? Critics (notably ex CMS veterans Berwick & Gilfillan) claim that risk adjustment games played by the private plans who run Medicare Advantage have cost up to $200bn over 10 years. Medpac (the independent body that advises Congress) estimates that “Medicare spends 4 percent more for MA enrollees than it would have spent if those enrollees remained in FFS Medicare” and go on to say “In aggregate, for the entire duration of their Medicare participation, private plans have never produced savings for Medicare”. However data from the Medicare Trustees and other research from ACHP & the trade group Better Medicare Alliance suggests that Medpac’s analysis is incorrect and that Medicare Advantage saves the government about 9% per enrollee.

THCB ran a long piece (pt 1, pt 2) about Medicare Advantage from former Kaiser Permanente CEO George Halvorson earlier this year, and a related one from current Permanente Federation CEO Richard Isaacs. But it’s much more nuanced than that. J Michael McWilliams has long piece on Health Affairs Forefront trying to capture the various strands of the argument. His conclusion? “The substantial subsidies MA receives are largely responsible for the extra benefits and have more than offset savings from any efficiencies, posing a net cost to Medicare and complicating assessments of MA’s added value.”

Meanwhile CMS has just changed the most controversial aspect of risk adjustment (which is the most controversial part of Medicare Advantage) by banning the plans from doing it, and only allowing providers to be involved.

Whether any of this is going to change CMS regulations or wider government policy regarding MA payments is less certain. CMS is currently dealing with its replacement for the even more controversial Direct Contracting (now called ACO REACH). But Medicare Advantage is the most profitable part of private health insurance and has many knock on effects for care services and technology. So I’ll be watching this space and you should too!