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Tag: The Industry

Do worker wellness programs violate employee privacy?

Employees are split on whether employer wellness programs intrude on privacy, according to an Issue Brief from the Center for Studying Health System Change (CSHC).

The report details the results of interviews conducted in 2007 in 12 metropolitan American communities: Boston, Cleveland, Greenville, Indianapolis, Lansing, Little Rock, Miami, northern New Jersey, Orange County, Phoenix, Seattle, and Syracuse.

Employee wellness programs are growing in the marketplace as employers try to stem ever-increasing costs, both direct and indirect. This is real money: a report from the American Hospital Association estimated that three chronic diseases — asthma, diabetes and hypertension — accounted for 164 million days of absenteeism each year which cost cost employers $30 billion.

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Let’s talk about tax exemptions

An excellent article by Stephanie Strom in Monday’s New York Times covers what appears to be a growing controversy about the degree to which nonprofit organizations should or should not be permitted to be tax exempt under federal and state rules. This is a legitimate area for public debate, and the article sets out a number of examples and points of view.

I do not know much of the history of tax-exempt status, but I am guessing it was given by Congress and state legislatures to certain categories of non-profits in light of their public service obligations and activities. I am personally involved on the boards of several tax-exempt nonprofits, including BIDMC, an academic medical center devoted to clinical care, research, education, and community service, MIT, a university, and others currently and previously.

Now, if we think about it, any one of these lines of service could be
provided by for-profit corporations. What does society
get out of granting tax-exempt status to these institutions? The most
obvious thing is that none of the gains (i.e., "profits") of
non-profits are distributed to private investors. They are all recycled
into the mission and services of the organization.

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Malpractice premiums fall in Massachusetts

Bay State doctors paid lower malpractice insurance premiums on average in 2005 than 1990, according to a new Health Affairs study. The study clashes with popular beliefs frequently touted by sponsors of legislative efforts to cap damage awards.

“If you don’t find a crisis here, you’re probably not going to find one nationally,” lead author and Suffolk University Law School scholar Marc Rodwin told The Boston Globe. “Clearly there are some increases in premiums and high premiums for a small percentage of doctors in three specialty groups, but that’s entirely different for the rest of doctors.”

Malpractice settlements in Massachusetts are the fourth highest in the nation, and the American Medical Association lists it as one of 21 states being in a crisis due to high medical malpractice payments and lack of laws to cap settlements, the Globe reports.

The Suffolk study found that most Massachusetts physicians paid an average of $17,810 in premiums in 2005, slightly less than the $17,907 paid in 1990, after adjusting for inflation.

The researchers analyzed data from 1975 to 2005 provided by ProMutual Group, the insurer for about half of the state’s doctors.

Rates for specialists in obstetrics/gynecology, neurological surgery, and orthopedics involving spinal surgery increased on average from $66,220 in 1990 to $95,045 in 2005.

So is malpractice reform a distraction from real health reform debate? Probably, but it is one that must be dealt with to get docs on the side of real health care reform.

Health 2.0 Consciousness Dawns – Even In Jacksonville, FL!

by BRIAN KLEPPER

Today, Matthew, Michael Millenson and I are converging at a Robert Wood Johnson Foundation conference on public reporting of health care pricing/performance information in Amelia Island, FL, three short barrier islands north of my home in Atlantic Beach. (Always helpful, Michael suggested to the conference organizers that I should be required to walk or take public transportation, to compensate for the fact that everyone else has to come in by airplane.)

In any case, we decided that we might as well seize the opportunity and hold a short symposium on market-based transformation for the Northeast Florida health care and business communities. Dean Chally of the University of North Florida’s College of Health graciously arranged the space on their beautiful campus, and so we’re set for a 7:30AM, 2 hour conference on Friday May 16th–that’s tomorrow.Michael will talk about public reporting, Matthew will present on the consumer side of H20, and I’ll hit H2O business-to-business analytics, the emerging medical home movement, and some wellness/prevention approaches that are gaining traction. Should be a fun morning. If you’re in the neighborhood, be sure to drop by and join us.

More on Physician Reimbursement, CMS, the AMA’s RVS Update Committee (RUC)

by ROY POSES, MD

(Note by Brian Klepper: At Health Care Renewal, Dr. Roy Poses, a Clinical Associate Professor at Brown University’s School of Medicine, writes a consistently excellent blog on health care financial conflict . Both he and I have written extensively – a link to his most recent column is provided below; mine is here – about the obscene sole source advisory relationship that CMS maintains with the conflicted, lopsided and secretive AMA’s RVS Update Committee (or RUC).

Essentially, the facts are that the RUC, a proprietary committee within the AMA overwhelmingly dominated by specialists, has been the only advisor to CMS on physician reimbursement for many years. It has consistently urged CMS to increase specialty reimbursement at the expense of primary care.

The result has been to drive medical students into specialties. Over the last five years, the percent of medical school graduates going into Family Practice has dropped from 14 percent to 8 percent. Only 25 percent of Internal Medicine residents now go into office-based practice; the rest become hospitalists or subspecialists.

Here is Dr. Poses’ most recent post, reprinted from Health Care Renewal, this time on a recent report from the RUC that makes recommendations for paying physicians under the Medicare’s Patient-Centered Medical Home pilot. As you might suspect, this does little to change the current corrosive paradigm.)

We have posted a number of times, (most recently here, and see links to earlier posts) about the RBRVS Update Committee’s (RUC) responsibility for Medicare’s relatively poor reimbursement of primary care and other “cognitive” physicians’ services compared to procedures. This imbalance has rippled through all of US health care, affecting how private insurers and managed care organizations reimburse physicians, and generally how the US systems favors procedures over talking, examining, thinking, diagnosing, prognosticating, deciding, and prescribing and super-specialization over generalism and primary care.

The RUC ostensibly is just an advocacy group sponsored by the American Medical Association, yet it seems to be the only source of outside input about physicians’ reimbursement used by the US Center for Medicare and Medicaid Services (CMS). Given this influence, it is dismaying that it is secretive, unrepresentative, and unaccountable. Neither its membership nor proceedings are public. It is dominated by proceduralists and sub-specialists. It is unaccountable to US physicians, much less the general public.

CMS in its wisdom also put the RUC in charge of figuring out how physicians’ practices participating in trials of the patient-centered medical home (PCMH) would be paid. The PCMH has gotten a lot of buzz lately. It purports to be the modern way to characterize a well-functioning primary care practice. Various powers that be that now want to support primary care seem only interested in supporting such care that fits the PCMH model. Yet putting the RUC, which seems to be the single most important cause of the decline of primary care, in charge of payment for this new version of primary care, appears to be a great case of putting the fox in charge of the hen-house. On the Retired Doc’s Thoughts blog, Dr James Gaulte first pointed this out.

The RUC just released its report on how physicians providing medical homes ought to be paid. Now, on the Happy Hospitalist blog, this post dissected how the RUC came up with its recommendations, in all their mind-numbing detail. That blog summarized the results as “punching primary care in the face,” and furthermore,

The payment rates that are recommended are insulting and downright degrading. Do they think nobody is paying attention? These people have no business trying to create public policy.

Unless I’m completely off base in my interpretation, if I was an outpatient doc, I would run faster than Forest Gump from this proposed financial disaster.

This is a reminder of what can go wrong with a “single-payer health care system,” which is what Medicare is. When the government sets what physicians are paid, which is what happens in Medicare, (and de facto happens for our entire health care system, as private insurance companies and managed care organizations seem to slavishly follow the CMS’ lead as engineered by the RUC), the government ought to provide a rational, transparent, accountable method of doing so. The current RUC based system is the opposite, irrational, opaque, and unaccountable. If we don’t fix it, we can kiss primary care goodbye, with all the negative consequences that would entail. And further woe unto us if the calls for health care reform lead to “Medicare for all,” with the RUC based system intact.

Roy Poses can be contacted at Ro*******@***wn.edu.

Wal-Mart drops drug prices, shakes up market — again

Wal-Mart continued its first-mover tactics in health by dropping the price of prescriptions again. This time, the target is maintenance meds, which Wal-Mart will price at $10 for a 90-days supply.

This move puts Wal-Mart squarely in the pharmacy benefits management (PBM) segment vis-à-vis ExpressScripts, Medco, and the big PBM players. The three-month mail order med business is the lucrative turf of PBMs. Wal-Mart’s first move into this space was in 2006 when the company priced many 30-day prescriptions at $4, shaking up the industry. I wrote about that market disruption here in January 2008.

Wal-Mart will also offer over 1,000 over-the-counter (OTC) meds for $4 and under. These will all be Wal-Mart’s private labels for popular OTC brands.

As the company with the red bulls-eye did the last time Wal-Mart dropped the price of meds, Target responded as a fast follower by saying they, too, will match the Wal-Mart prices for a 90-day supply of drugs. Target’s program will expand the assortment of $4 Rx drugs and the 90-day supply of these medications for $10 and private-label OTC medications for $4 or less.

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The State of Employer-Sponsored Coverage – Brian Klepper

A detailed new study from the Economics Policy Institute confirms what many of us suspect but haven’t had the data to easily nail down. This weightily-titled report by Jared Bernstein and Heidi Shierholz A Decade of Decline: The Erosion of Employer-Provided Health Care in the United States and California, 1995-2006 – provides more granular information about the enrollment dynamics over time in employer-sponsored health coverage than we’ve seen in a while. Based on an analysis of the March 2007 Current Population Survey, the numbers reported here are mostly in sync with (but deeper than) similar studies that have attempted to size the enrollment and erosion characteristics of the employer-sponsored coverage market. Strap yourself in; this isn’t pretty.There are two important points here. The first is that, in the six years between 2000-2006, the percentage of American workers with employer-sponsored coverage fell from 51.1 to 48.8 percent, a 2.3 percent absolute or 4.5 percent relative drop. 6.4 million workers (and presumably, another 7.6 million of their family members) lost their health coverage in the process. These losses exceeded gains made between 1995-2000, when the percentage of workers with coverage rose from 49.6 to 51.1 percent. 

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An Open Response To HHS Secretary Mike Leavitt – Brian Klepper and Michael Millenson

A few months ago, the two of us – both long-time advocates for
transparency and accountability – posted separate comments on Secretary
Mike Leavitt’s blog
Brian asked Secretary Leavitt to square his
support of "Chartered Value Exchanges” with the attempt to block
release of physician-specific Medicare claims data to Consumers’
Checkbook, which wants to rate doctors. After a court ruled that the
data should be provided to the group
, HHS appealed. Michael urged the
secretary to go beyond supporting Consumers’ Checkbook and use his
“bully pulpit” to promote sophisticated data analysis that could be
used to create national quality comparisons.
Secretary Leavitt graciously asked us to consider and comment on the
department’s proposed "Medicare trigger legislation" calling for the
release of physician performance measures. We are delighted to continue
the conversation.

First, let’s give credit where credit is due. We agree that the proposed legislation is a major step in the right direction.

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Tune Into The Kroll Webcast On The Security of Patient Data – Brian Klepper

Exclusive to THCB: A couple weeks ago I pointed to a new study, commissioned by Kroll Fraud Solutions and conducted by HIMSS Analytics, that makes startlingly clear the gap between what most health systems are doing to comply with HIPAA, and what they need to do to actually safeguard the patient data in their possession.Tomorrow, Wednesday, April 23rd at 2PM EST, and again next Tuesday, April 29th at 2PM, EST, you’re invited to a 40 minute Webcast, moderated by Yours Truly, that goes through the issues. Jennifer Horowitz, the investigator from HIMSS Analytics, Lisa Gallagher, HIMSS Senior Director of Privacy and Security and Brian Lapidus, Kroll’s COO, will talk about how health care executives typically perceive the issue and how they report their own awareness and preparedness, in stark contrast to the threat and what happens when a breach actually occurs. I was a bystander in this energetic discussion, but it was an eye-opener for me.

If you’re at all involved in managing health system security or if you’re simply interested in the deeper realities of what’s necessary to protect patient data, this one’s a must. Join us for this revealing and important Webinar. Click here to get the study report and to register.

The Legacy of Dr. Jerome Grossman

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We’ve lost a major force for good in health care. Dr. Jerome Grossman, once CEO of Tufts-New England
Medical Center
, passed away yesterday. He was only 68, an example of another good-man-dying-too-young.

Dr. Grossman’s ideas made big impacts on American health care for decades. He chaired many Institute of Medicine (IOM) panels and wrote countless pieces in peer-reviewed journals (including the seminal Crossing the Quality Chasm
report). He was one of the earliest proponents of analyzing quality and
medical outcomes in health care. He was an early champion and adopter
of information technology in health care.

Listen to a podcast of him
talking about aligning IT in health care for quality here from an IOM meeting held in 2000.
Most recently, at Harvard, he had been was the founder of the Center for Business & Government’s Health Care Delivery Policy Program, which he directed during the past seven years.
He had been co-authoring a book on innovative disruptions in health care with Clayton Christensen,
a fellow colleague at Harvard. It will be published by the end of the
year, and I can’t wait to hear Dr. Grossman’s voice again through his
writing.

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