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Tag: Policy/Politics

Holland, pay-or-play and the WSJ Opinion page making sense?

Don’t worry, the WSJ Opinion only makes sense because they let Zeke Emmanuel and Ron Wyden write an op-ed. The article is called Why Tie Health Insurance to a Job? and it’s impossible to argue with the logic about why we ought to move away from employer-based insurance.

There is of course an argument amongst those of us who both want to move to a social insurance system and want to have universal insurance as to whether this should be done in the voucher-type model that Emmanuel & Vic Fuchs have proposed (which looks a little like how the Dutch now do it) or whether we need to go to a modified single/multiple payer system like the French/Japanese/Brits/Australians.

I gave a talk in Canada the other night suggesting that there was some potential for convergence, and I used the very recent Commonwealth Fund data looking at the experiences of the chronically ill in seven nations. What is very interesting to me is that in terms of access to primary care and in terms of disease management, the Canadians and Americans look roughly similar—and not too good. As for specialty care, well as we know the Canadians & Brits ration by time and the Americans ration by money (or socio-economic status).

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The Medical Home Bandwagon and the One-Hoss Shay: Expectations and Assumptions

Have you heard of the wonderful one-hoss shay that was built in such a wonderful way? Logic is logic. That’s all I say. Now in building of a chaise, I tell you there is always somewhere a weakest spot. — Oliver Wendell Holmes (1809-1894)

Expectations are high. States, health plans, and the Medicare program are making substantial financial bets that implementation of the medical homes will lead not only to improved care but also to long-term savings, largely by reducing the number of avoidable emergency room visits and hospitalizations for patients with serious chronic illness. Some see the medical-home model as a means of reversing the decline in interest in primary care among medical students and residents, and others argue the broad implementation would reduce health care spending overall. — Elliot Fisher, MD, MPH, “Building a Medical Neighborhood for the Medical Home,” NEJM, Sept. 2008

When people jump on the bandwagon, they get involved in something that has become very popular. The term “bandwagon” is usually applied to politics but spills over into other fields. It is also called the herd instinct, or going for the apparent winner. — Various Sources

When I think of the Medical Home, a concept introduced by the American Academy of Pediatrics in 1967, just now rapidly gaining speed and traction, two images spring to mind,

  1. A bandwagon.
  2. The wonderful one-hoss shay, which ultimately collapsed because of minor defects in its construction.

Bandwagon
Everybody is jumping on the medical home bandwagon. And for good reasons. It’s so damn logical. Health costs are out of control. The population is aging. Countless studies show primary–based systems are popular, cost less, satisfy patients, and achieve better quality and outcomes. Besides, American primary care physicians are unhappy with the present system, and so are American patients. It’s time for a change. The problem, logic says, stems from our specialty-dominated, fragmented system and growing shortages of primary care physicians.

A New Approach?
Why not, then, create a new approach where primary care physicians form medical homes, and with the help of a newly hired care coordinator, and a team of providers operating under the guidance of the doctor, offer continuous, comprehensive, coordinated care of chronic diseases (the 4 C’s of medical homes)?

Logic Builds Momentum

The logic of this approach explains why everybody is enthusiastically leaping on the medical home bandwagon. Leapers include:

  • Medicare and CMS, who are paying for a three year demonstration project, to be completed by 2010, to see if this new wagon works, has wheels, saves money on hospitalizations, and makes for a sustainable growth rate for health costs.
  • The Obama Administration, which has vowed to reform health care and save money through more primary care physicians, prevention, EMR use, and chronic care management – the medical home pillars.
  • Major primary care associations – the American Academy of Family Practice, The American Academy of Pediatrics, The College of Physicians, and The America Osteopathic Association – have joined forces under the umbrella of the Patient-Centered Primary Care Consortium to issue a set of Joint Principles and are churning out white papers on medical homes.
  • State legislators, who have taken the lead from state medical societies and the Physicians’ Foundation, and are endorsing Medical Home demonstration projects in at least 20 states. The numbers grow each month.
  • Academic institutions, such as Johns Hopkins, Duke, and the University of Rochester, who are pouring money and other resources into building and testing medical homes and other outreach programs.
  • The American Medical Association, the American Association of Medical Colleges, and societies of medical directors and state medical society executives, all of whom have bought into the concept.
  • NCQA, who think medical homes contribute to improved medical care.
  • Even the health plans, especially Aetna and the UnitedHealthGroup, who would like to serve as intermediaries in the process, selecting what doctors qualify for being medical home participants and what they will be paid.

“Almost” Everyone
Almost everyone, in other words, across the political spectrum have concluded medical homes are a leap forward and are willing to climb aboard for a bandwagon ride. The key phrase here is “almost” everyone. Forming and paying for medical homes are very much political processes, where “everybody” may not include those who want a piece of the action or feel their economic status is threatened.

Assumptions
It is assumed, of course, coordinated, comprehensive, continuous care of chronic disease in an aging population is an overwhelmingly logical thing. I agree, but it is still useful to examine medical home assumptions.

I am reminded of the story of the economist stranded on a desert island with fellow castaways. The castaways are surrounded by thousands of miles of ocean, but are blessed with cases of canned goods from their sunken ship. But, alas, they have no way of opening the cans.

The group turns to the economist for an answer, and he says, “First, assume a can opener.” We’re assuming here that medical homes will serve as can openers to save the system. The cans, however, may be full of worms.

Perhaps it’s time to examine the assumptions that might cause the wheels of the Wonderful One Hoss Shay, known as Medical Homes, to come off.

  • The first assumption is that there are enough primary care physicians to make medical homes enough of an impact to make a difference reforming the system. The stark truth is that a desperate shortage of primary doctors already exists, most medical students and residents shun primary care, and we have no idea how many primary care doctors would bother to go through the paperwork to qualify or to build the infrastructure (an EMR and a hired coordinator are mentioned as necessary medical home ingredients), to undergo the scrutiny of being audited for quality or complying with performance compliance markers, or to be paid enough to be motivated to create a medical home. Venture capitalists, alert entrepreneurs, retail clinic operators, and major corporations like Walgreens sense a primary care vacuum and are moving fast to set up primary care based worksites in major corporate sites having sufficient numbers of employees.
  • The second assumption is that new payment platforms will help create and sustain medical homes and be sufficient incentive to recruit primary care doctors through more lucrative “blended” payment systems – fee-for-service, a capitation fee for managing a patient panel, and patient-centered bonuses for rapid responds to same day visits and email or phone to patients. The predominant mindset among American physicians it to cure, fix, restore, or repair swiftly and episodically rather than manage or coordinate over the long haul. Whether new payment schemes will lure U.S. primary care doctors is unknown, as is how much money will be required to win the hearts and minds of primary care doctors or whether lack of adequate compensation alone is the basic “turn-off” for medical students or residents considering primary care.
  • The third assumption rests on the notion that every medical home physician will have an EMR and will be able to talk, refer, and send complete electronic patient information to, other entities in the medical neighborhood – clinical colleagues, hospitals, pharmacies and other care providers. This is a giant leap of faith since only about 15% of physicians currently have EMRs and PHRs are in their infancy. It may be this barrier can be overcome through federal subsidies for EMRs, requiring physicians to meet connectivity standards, and rewarding collaboration through payment increases, pay for performance bonuses, and shared savings, but, in my opinion, the system is at least a decade away from this electronic utopia.
  • The fourth assumption is that primary care physicians will be comfortable with collectively “managing” the medical affairs of patient panels, making the data entries required, and massaging, analyzing, and responding to data determining the outcomes of a population health model. American primary care doctors, weary and wary of paperwork and third party hassles and managerial manipulations, may respond by choosing to opt out by rejecting Medicare and Medicaid participation; treating individual patients as they see fit; retiring; seeing fewer patients; going into concierge, cash-only, locum tenens practices; seeking employment outside the medical home, or medical careers unrelated to direct patient care. Instead we may see armies of physician extenders managing diabetes, hypertension, stable coronary artery disease, congestive heart failure, chronic obstructive lung disease, osteoarthritis, depression, upper respiratory infections, and gastro-esophageal reflex.
  • The fifth assumption is that patients would welcome such a model. In his popular blog, KevinMD, Kevin Pho, says many patients may be annoyed by being asked to be in a medical home, when they only have one symptom or one disease that may not need to be “managed.” Also Americans are mobile with 20% of Americans moving each year. Many patients may not be looking for a personal physician or a medical home. Finally, keep in mind that most people who frequent emergency rooms do so because the emergency rooms are “there,” not because they are uninsured, underinsured, or lack a primary care doctors (Myna Newton, et al, “Un insured Adults Presenting to U.S Emergency Departments, “ JAMA, October 22-29, 2008).
  • The sixth assumption is that the medical home is a politically and financially neutral concept. This isn’t the case. Nurse practitioners, nurse doctors, physician assistants, and other medical specialists will lobby to set up their own Medical Homes, if for no other reason, than to make up for the primary care shortage. Another, probably more important factor, may the resistance of specialists. Organized medicine, now dominated by specialists, is aware that Congress’s present Sustainable Growth Rate (SRG) is supposedly revenue neutral, meaning if you reward primary care physicians through Medical Homes, you take away from specialists.

Conclusions
The medical home movement is logical and is intended to correct the current costly fragmented specialist dominated system by creating “homes” for patients with chronic disease to receive more coordinated and comprehensive care at less cost with better results. Medical homes are currently riding a political bandwagon, but the assumptions that the system will be transformed by medical homes remain politically and pragmatically untested. That’s why multiple demonstration projects are underway. Meanwhile, let us hope for the best and pray that a fundamental shift in the system towards more primary care occurs. Making medical homes a reality will take hard work and political arm-twisting.

A glimpse of what might have been: Palin announces Alaska health goals

PalinAlaska Gov. Sarah Palin announced plans last week to improve Alaskans’ health.

Palin supports expanding Denali Health, the State Children’s Health Insurance Program, to families earning twice the federal poverty level. Expanding the program would make an additional 1,300 children and 225 pregnant women eligible for coverage, The Anchorage Daily News reported.

Palin’s plan also includes creating a Web site  called "Live Well Alaska" "to offer suggestions in
such health-related areas as diet and exercise as well as tips to quit
smoking."

The hockey mom governor also wants to dedicate an additional $2 million in preschool, $250,000 toward early diagnosis of autism, and establishing a state health commission to further work.

The Daily News says Palin has some "good ideas," but should go further toward universal coverage and recruiting additional primary care doctors to Alaska.

Now, Sleepless in San Francisco

Having returned from Seattle, the persistent itching from the sand-fly bites of Roatan has awakened me at 5 a.m. So I’m commenting on three pieces of news, which I’ve commented on before here and at Spot-On.

First, United HealthGroup has introduced two new things this week. One is is a consumer portal/WebMD competitor called myOptumHealth, which gave a sneak preview (and was a sponsor) at the Health 2.0 Conference in October.

At first blush I like the look of what they’ve pulled together, although the about us section doesn’t exactly tell you much about who owns Optum! But the really interesting product United launched this week was aimed right at me. It’s an option to repurchase your individual health insurance without being re-underwritten and rejected.

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Nudging the value glacier

In just two years, seniors will spend a quarter of their monthly Social Security checks on Medicare out-of-pocket expenses, including premiums, co-payments and deductibles.Meanwhile, Medicare bookkeepers predict total health spending in the U.S. to increase from 2.2 trillion today to 4.3 trillion in 2017.

At that rate of growth, it won’t be long before the entire Social Security check goes toward medical care. So what’s the solution?

Barry Straube, CMS chief medical officer, said the solution is transforming Medicare into an active purchaser that seeks to get more bang — in terms of high quality care and improved health — for its buck.

In health care lingo, that’s called value-based purchasing – the topic of a two-day conference put on by the ECRI Institute that Straube,and other health care bigwigs attended this week in Washington D.C.

“Medicare should be paying for care that promotes health, prevents complications, optimizes quality and efficiency, and keeps health care costs down,” Straube said. “… We have a system that arguably is based on resource consumption and volume irrespective to the value associated with that care.”

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There’s waste in the medical system–Duh!

As we begin the health care reform discussion in earnest, many are pointing out all of
the waste in the system and the need to research what works best, provide the incentives to do it, manage the big spenders’ chronic care better, make better use of heath information technology, and encourage wellness and prevention.

One of the disadvantages of being at this for more than 20 years is that I feel like I’ve seen this movie a few times before. You may recall the picture "Groundhog Day" where the guy kept living through the same thing time after time.

I am particularly taken by those that cite the statistics regarding health care waste and efficiency as if this was a new discovery they made in the last few days.

For example, the excellent groundbreaking research from Dartmouth is often cited pointing to the conclusion that as much as 30% of all medical spending does nothing to improve care.

I can’t disagree with many of these conclusions having argued much the same myself.

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After 12 months of recession, whither health reform?

We’re in a recession; actually, we’ve been in one for the past year, but no official agency decided to tell us. Perhaps "they" wanted to wait until after the November ’08 Presidential election?

The declaration of recession is the official news from The National Bureau of Economic Research (NBER), whose mind-numbingly-titled press release, Determination of the December 2007 Peak in Economic Activity, provides the following important details:

    * The Business Cycle Dating Committee of NBER met by conference call on 11/28 to discuss whether the U.S. economy was in recession.

    * The group figured out that the U.S. economy "peaked" in December 2007.

    * They calculated that the 12/07 peak ended the economic expansion that started in November 2001, lasting 73 months.

    * The previous expansion in the 1990s lasted 120 months (that would include, but not be limited to, The Clinton Era).

    * Other measures of a declining economy — including personal income less transfer payments, real manufacturing and wholesale-retail trade sales, industrial production, and employment estimates based on the U.S. household survey — also peaked some time in the past 13 months.

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More on the 5 myths of U.S. health care

A good friend sent me a recent op-ed from the Washington Post that discussed the 5 myths of health care reform by Shannon Brownlee and Ezekiel Emanuel.

I’ve written about both of them before (here & here). Brownlee is a visiting scholar at the NIH’s Clinical
Center, and Emanuel is the chair of the Center’s Bioethics Department.
Ezekiel also happens to be the brother of incoming White House Chief of Staff Rahm
Emanuel’s. Hmmm…

Anyway, I really like most of what they have to say – which will
probably come as a surprise to them – and maybe to some of my
colleagues as well. Their five myths are, in no particular order…

1) America has the best health care in the world.

2) Somebody else is paying for your health insurance.

3) We would save a lot if we could cut the administrative waste of private insurance.

4) Health care reform is going to cost a bundle.

5) Americans aren’t ready for an overhaul of the health care system.

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Open Wide: Here comes the change you thought would never happen

The morning after the election, I posted a speculative blog in Health Affairs on three possible scenarios for President-elect Obama’s implementing health reform: folding it into a bold, ambitious emergency legislative package (Complete the New Deal), carving funding out of the current $2.5 trillion national health spend (Braveheart), and postponing implementation until the economy recovers but taking steps now to prepare for it (Wait/Lay the Groundwork).

At the time, the Wait/Lay the Groundwork option seemed 70 percent likely. But with economic conditions worsening, I’m now convinced Obama will probably opt instead for the Complete the New Deal option, and try to implement health reform in the first 120 days of his Presidency, before the health care industry “dragon” can even stir from its cave.

Let’s call Obama’s program The Real Deal. We can already see its contours: an economic stimulus program including highway construction and other state-directed public works, a green energy spending initiative, emergency housing assistance including a foreclosure prevention measure, an auto industry bailout, labor law reform and income supports through tax credits for low income people.

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Fostering an adult conversation about health reform

Zeke Emanuel and Shannon Brownlee have an op-ed in Sunday’s Washington Post that should be required reading for anyone interested in health care reform.

The title is, “5 Myths About Our Ailing Health Care System.”

They suggest the “5 Myths” are:

  1. America has the best health care in the world.
  2. Somebody else is paying for your health insurance.
  3. We would save a lot if we could cut the administrative waste of private insurance.
  4. Health-care reform is going to cost a bundle.
  5. Americans aren’t ready for a major overhaul of the health–care system.

At one level I can disagree with many of their points and at another I can agree with all of them — but they are right on all counts.

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