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Announcement: eHealth Initiative Posts New Positions Experienced Applicants Encouraged to Apply

The eHealth Initiative (eHI) is growing! We encourage you to take a look at our new job openings and spread the news amongst your colleagues and friends. eHI is a Washington, D.C.-based independent, non-profit organization dedicated to improving the quality, safety and efficiency of healthcare through information technology.

  • Director of New Business Development
  • Senior Level Director of Programs
  • Manager Public Policy

As with all positions at the eHealth Initiative, applicants must have the ability to work in a fast-paced, entrepreneurial environment. The eHealth Initiative offers an excellent employer paid benefits package (health care, 401K, generous vacation time, flex time) and is an equal opportunity employer.

To view job descriptions or find out more go to http://www.ehealthinitiative.org/careers.html

If Reform Fails

If conservatives manage to kill health care reform legislation, what will happen next?

I really don’t want to go there.

First, I’m convinced that conservatives won’t be able to repeal the Affordable Care Act (ACA). Democrats will hold onto the Senate, and President Obama still has a veto. If necessary, he will use it to protect the bill. Meanwhile, the majority of the public either favors the legislation or want to “wait and see” how well it works. Most voters would be utterly disgusted if Congress returns to the health care debate this fall. It was ugly the first time around; virtually no one wants to watch re-runs on C-Span. In the months ahead, Americans hope that their elected representatives will do just three things: create jobs, create jobs, and create jobs.

Secondly, if conservatives somehow succeed in crippling the reform bill, we will find ourselves back in a world of laissez-faire health care where medical spending continues to spiral by 4.5% to 9% a year (just as it has for the past ten years), thanks to a combination of climbing prices and rising utilization.

Here, I’m not talking about how much insurance premiums rose: reimbursements that private insurers, Medicare and Medicaid paid out to hospitals, doctors and patients over the past ten years have been climbing by 4.5% to over 9% annually.

In some years, Medicare reimbursements were growing faster; in other years, payouts by private insurers levitated. Over the same span, Kaiser reports that premiums for a family plan rose by an average of 13.1% a year.

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Job Post: THCB Editorial

THCB is looking for talented interns to
assist with editorial, research and web production tasks as our web
site undergoes a major expansion. Perfect for a grad or med student
with an interest in journalism, public policy, and/or the business of
health care.  Work out of a great home
office location in the Princeton area or remotely, convenient to both Princeton
University and UMDNJ. Reasonable train ride from midtown Manhattan. Production and research
opportunities may also be available in our San Francisco offices for
qualified candidates.

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How to save $40 billion in health care costs

What It Costs to Start-Up an Electronic HealthElectronic health records (EHRs) broaden access to patient data and provide the platform for pushing evidence-based decision support to clinicians at the point-of-care. This promotes optimal care for patients, reduces medical errors, optimizes the use of labor, reduces duplication of tests, and by the way, improves patient outcomes. When done in aggregate across all health providers, a team from McKinsey estimates that $40 billion of costs could be saved in the U.S. health system.

Reforming hospitals with IT investment in the McKinsey Quarterly talks about the American Reinvestment and Recovery Act’s (ARRA) $20+ billion worth of stimulus funding under the HITECH Act and estimates that 80% of existing hospital IT applications will be affected by the regulation. Hospitals will be spending about $120 billion to meet the adoption and meaningful use provisions of the Act. This equates to $80,000 to $100,000 per hospital bed. ARRA incentive payments will cover roughly 20% of this cash outlay, meaning that $60-80K won’t to covered.

But McKinsey says, “Hold on!” There are ways to recoup the spending gap between HITECH incentives and cash-out-of-the-hospitals-budget. McKinsey’s research calculates that optimizing labor, reducing adverse drug events and duplicate tests, and adopting revenue cycle management can help the average hospital save $25,000 to $44,000 per bed each year. That gets to the $40 billion in annual savings when multiplied across all hospital beds in the U.S.Continue reading…

One Day in the Life of a Meaningful User

All the laws have been passed and all the final rulings have been published. In the spirit of the times, you went out and got yourself an EHR. You did your due diligence and sat through many hours of vendor demonstrations. In the end they all started to blend together, so you talked to friends and colleagues and accepted the Hospital’s offer to pay a big chunk of your EHR costs if you picked the one they wanted you to pick.

Your biller quit in disgust, but other than that the implementation was uneventful and the Hospital folks helped a lot. After several hiccups, your Medicare payments are coming in regularly now and your office is adjusting well to the new software. The documentation templates leave a lot to be desired, but you type well and when you find some free time you may take a stab at customizing them a bit. Here and there you run into bugs and a couple of times the EHR was unavailable for a good two to three hours. Not sure exactly why. Maybe it was the Internet that was unavailable.

Anyway, if all goes according to plan, you will be retiring in 10 years and your much younger partner will be bringing in someone who is probably in Medical School right now. Everything seems under control. But today is different…

Today is January 2nd, 2011 and you are driving to work. Today has to be meaningfully different and your first patient is waiting in Exam Room 1.Continue reading…

The Other Medicare Report

The release of this year’s Medicare Trustees report was unprecedented. As noted in previous posts here and at my blog here and here, Medicare’s chief actuary not only refused to sign off on it, he disowned it — encouraging readers to ignore it and focus instead on an alternative report, prepared by the office of the Medicare actuaries.

So what’s the difference in the two reports? It all relates to the health reform bill that passed last spring. The formal trustees report shows health reform dramatically reducing future Medicare spending. In fact, it is so dramatic that even the White House seems reluctant to talk about it — perhaps because it’s prima facie unbelievable.

Consider this: In 2009, the trustees reported that (looking indefinitely into the future) Medicare had an unfunded liability of $89 trillion. This year, the trustees report that number has fallen by more than half to $36.6 trillion. If the numbers are to be believed, health reform has already saved us $53 trillion — a sum more than three times greater than our entire gross domestic product!

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RWJF’s Stephen Downs on a New Model for the Foundation – and the Health 2.0 Developer Challenge

Last week, we sat down with Steve Downs, Assistant Vice President, Health Group, Robert Wood Johnson Foundation to discuss the 3 New Challenges they’ve announced for the Health 2.0 Developer Challenge. Steve explains RWJF’s current areas of focus in health and how they are testing the Developer Challenge as a novel process to source and spur innovation.

Interview with Steve Downs, RWJF

From building real apps based on the Project Health Design PHR prototypes (in partnership with CHCF) to using County Health Rankings to build interactive tools for decision-making (in partnership with U. of Wisconsin) to working with the Markle Foundation and VA/CMS on the Blue Button initiative, RWJF has given the Health 2.0 innovator community lots of raw material and inspiration to work with.

And within just a couple of days, 5 Teams have already signed up to compete.  For more on RWJF’sChallenges and to get involved with the Health 2.0 Developer Challenge, go to www.health2challenge.org.

Privacy and Security of Patient Records: The Lesson of the Weakest Link

DHarlow headshot The Queen of Soul famously wailed about being a link in a chain of fools. Today’s lead story in the Boston Globe tells us about another sort of link in the chain — the weakest link in the chain of custody of patient records. In brief, a pathology billing service bought out by another service apparently dumped all records more that a year old in a town dump; a Globe photographer taking out his own trash noticed that the paper records (which he was looking at because he thought they ought to be recycled rather than dumped) had identifiable patient data and represented at least four hospitals from across Eastern Massachusetts. Clearly, these records ought to have been shredded or otherwise destroyed before disposal. Assuming they had some airtight contracts in place, the hospitals involved may well be looking to the seller of the billing service in this case to reimburse them for costs of:

  • identifying the patients involved in this data breach
  • notifying affected patients of the breach
  • providing credit monitoring services to affected patients
  • any damages incurred by patients
  • any fines incurred by the hospitals

Under the HITECH Act’s “Son of HIPAA” rules, the hospitals could be on the hook to the federales for up to $1.5 million in fines each as a result of this incident, and the state AG could get in on the action as well, filing suit on behalf of the affected Massachusetts residents and seeking to ensue that proper procedures are in place. There may also be a violation of the state data security law here as well. Massachusetts has a particularly stringent data security law on the books that took effect within the past year, and not all affected businesses have come into compliance. The AG may be on the prowl for a few high-profile cases, like this one, in which to levy substantial fines and convince the laggards that compliance would be more than worth their while.

The natural question to ask, given the facts of this case, is: What Would a Meaningful User Do?

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Can Health 2.0 Fix Clinical Trials?

Saturday’s New York Times portends more trouble for big Pharma. The headline is wrapped up in an examination of foreign corrupt practices, but the bigger issue is that clinical trials have hidden serious adverse events. The recent allegations that GSK hid data about heart attacks from an Avandia trial conducted abroad highlight the reality that over the last 20 years or so it’s been very hard to recruit patients for clinical trials in the US. It’s expensive to find patients, and the numbers of patients available near centers has not proved enough. The answer has been to go to places with lots of people and lower costs, like India.

One obvious consequence is that few of the significant advantages of Internet connectivity and patient community which have been developing in recent years have been adopted as part of these pre- or post market trials. Several online communities–notably PatientsLikeMe–have been running their own studies but they have typically been observational studies and haven’t had much acceptance from Pharma or regulators.

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The Federal Reserve Wants to Rebuild Main Street

We all have a vision of the “Main Street” we would like to live near – tree-lined, friendly and safe. But our “Main Streets” are in disrepair. Across the country, they lack sidewalks, parks, well-stocked grocery stores with fresh food, healthy homes and apartments, and convenient public transportation. And it turns out, these things add up to a lot more than just an unpleasant place to live – they can have a major impact on our health.

There has been much in the news about the costs of medical care and our current and future economic competitiveness because of those costs. But little has been done as a nation to see if we can reduce the amount of disease we have to treat.

On Main Street in America, a woman with diabetes – perhaps one who is newly insured under health reform – will see her doctor, who after telling her what medications and tests she needs, will tell her to improve her diet and be more physically active. But what if she returns home, to a neighborhood that makes following the doctor’s advice nearly impossible because there is no supermarket with fresh food like in Detroit, where there are only 5 grocery stores for a city of 139 sq. miles?

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