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Tag: The Industry

TECH/POLICY: Things to think about in Katrina’s aftermath

Here’s my FierceHealthcare editorial today:

In Katrina’s wake the inquests are beginning after the tragic failure to get help to where it was needed, especially in New Orleans. For healthcare organizations there are some immediate lessons, wherever in the country (or world) you might be. What is your disaster plan, and is it good enough to sustain you for several days in a potentially lawless environment, with no outside power or supplies? And do you have an evacuation plan for patients and staff? Obviously this matters most for hospitals, but given that all paper records and many computer systems have been destroyed, all healthcare organizations — no matter what size — need to make sure that their data is electronically backed up, redundantly, somewhere far away from them. If your vital data isn’t electronic, now is the time to make it so. Finally as a nation, we need to find a way to guarantee health care insurance and access to everyone displaced, and the best way to do that would be to guarantee it to everyone in America. –

HOSPITALS/POLICY/INDUSTRY: Katrina and the response

We have all been shaken by the devastation in New Orleans and the Gulf Coast. After a couple of days to reflect, three thoughts come to my mind. First has been the absolute heroism of health care workers in New Orleans, and those helping from neighboring areas. The tales of nurses, doctors and other workers keeping patients alive by hand-pumping ventilators, and performing near-miracles in conditions that none of them could have believed they’d ever have to work in reminds us that medicine and health care is a calling far more than just a job. Second, the time for investigations and blame if any will come later, but it’s beyond belief that it’s taken this long to get either food, water and medicine into New Orleans, or those stranded people out. Finally, it can’t have escaped anyone’s attention that the vast majority of those "left behind" are poor and African-American. And that’s a microcosm of what’s going on in our society and in our health care system. Hopefully this disaster may give us a chance to reflect on that and to make some changes.

I linked to the Red Cross earlier this week, but Instapundit has a long list of other charities who need help.

TECH/THE INDUSTRY: Helppie sues ACS

After being booted from his baby Superior only 5 months after selling it to outsourcer ACS, Richard Helppie is claiming that he retired and that he’s not even a little miffed. However, there’s touchy feely niceness and then there’s business. Last week Helppie sued ACS (and Superior) for a chunk of change.

Helppie contends he is owed $770,000 in separation and bonus payments plus stock options under terms of an employment contract in place before ACS bought Superior. In an answer filed Aug. 10, ACS denied the allegations and also filed a counterclaim that said Helppie was awarded a $1.47 million “change of control” payment in exchange for him voiding the employment contract.

Of course, given the amount of red ink that Superior bled for five years from 1999-2004, it’s a wonder that there was a company there to sell to ACS in the first place. I just can’t decide if that was Helppie’s achievement or his fault!

INDUSTRY: What would you read?

0465079350_1So I got an email from a student asking for a basic primer on the US Healthcare system. He’s at Northwestern, so I might recommend him Edward FX Hughes as a go to guy. But my two favorite books about health care are The Social Transformation of American Medicine (by Paul Starr) and Demanding Medical Excellence (by Michael Millenson). Neither are exactly beginner material. I was originally quite taken 15 years ago with Joe Califano’s America’s Health Care Revolution, but that’s pretty dated now.

Given that I haven’t written the definitive work myself, and that Jon Cohn hasn’t finished his book yet, what would you suggest as a great introduction? (Yup, this is an open thread…). And are there millions of students just waiting to buy such a book if I write one? (Publishers wishing to send advances, please email me!!)

TECH/INDUSTRY: Top 10 Consultants

Modern Healthcare just printed a list of the Top 10 Consultants in health care. I was staggered to find that Matthew Holt Consulting was not on that list, but then I realized that it was top 10 by revenue rather than by pithy insight. The revenue estimate for  the top 10 is around $5.7bn, which seems to include Life Sciences. If you look deep within the site of the consulting firm that put the list together you’ll see that they estimate that only 33% of the spending on consultants goes to these big guys, which I guess shows that there’s plenty of room for the little guys, and healthy disrespect for the value that the big guys bring.

But with IBM buying Healthlink and Accenture sucking up CapGemini, plus more and more of the big software vendors making most of their money on consulting services rather than pure software sales — and with the government getting into the game — expect more money to be spent on consulting in the coming years.

INDUSTRY: HealthcareRenewal skewers Health Affairs

John Iglehart’s rather soft questioning of Guidant’s CEO in Health Affairs comes under most excellent and accurate fire from Roy Poses over at Health Care Renewal.

A prominent editor of a prominent health policy journal devoted considerable effort to and published considerable pages of an interview with the CEO of a large device manufacturing firm, yet avoided asking skeptical or probing questions about a current problem that raises substantive concerns about the quality of the company’s products, and even bigger concerns about how the company has dealt with quality problems. The interviewer avoided asking any questions about a similar case from a few years ago. This is only one article, but it seems to indicate how deferentially the health services and policy literature may treat leaders of large health care organizations. 

Health Affairs has a delicate balance to tread. It publishes inter sting interviews with CEOs that a more than just puff pieces–and one doesn’t often see those these days.  However, in order to keep corporate CEOs coming to talk to them they can’t attack them directly. But, you would think that in the light of what’s gone on at Guidant recently, there’d be a bit more of an attempt to hold various feet to the fire, and I hope we’ll see more of it in the future.

INDUSTRY: Scrushy verdict is in–He walks

So after about 15 years of deliberation, the biggest fraud in the history of health care is coming to its zenith. The news is that the jury has reached a verdict in Scrushy trial. Now we’ll see if all that showing up at black churches and sponsoring Christian boy bands was worth it….

My guess is that in the Michael Jackson tradition he walks, but in my book the crook who blames his underlings and then claims that God forgives him is the lowest kind.

Check back soon for the verdict….

And of course he walks. Not guilty on all charges. Every CFO and person who works there said that he was fully in charge of orchestrating the whole fraud, but up to 200 local preachers appeared on Scrushy’s evangelistic radio show on Alabama cable and said he was innocent. So who would you trust.  A bunch of admitted crooks or emissaries from God?

The amusing thing is that he’ll now try to get control back of HealthSouth. Listening to Jim Cramer on CNBC has been quite amusing…Cramer is not too impressed with the wisdom of the Alabama jury.

Now he’s live on TV giving all the thanks for God, thanking all the pastors and ministers, and everyone who helped get him off.  On CNBC the squawkbox wag said "How about a foursome at the Alabama golf club–Scrushy, OJ, Robert Blake and Jacko?".  His other good line was "Lucky the charge wasn’t ‘Poor interviewing of CFOs" as 5 out of 5 managed to put one over on him…"

A Mistrial in the Scrushy case?

Scrushya_2Could the jury in the Scrushy case be on the verge of deadlock? It certainly sounds that way from this report in today’s Wall Street Journal:

"Jurors in the corporate-fraud
trial of HealthSouth Corp. founder Richard M. Scrushy told the judge
that they "cannot unanimously agree on a verdict" and asked for "an
explanation in layman’s terms."

The handwritten note, delivered to the judge about
halfway into the jury’s fourth day of deliberations, appears to be an
ominous sign for federal prosecutors while giving Mr. Scrushy another
reason for optimism about the outcome of the four-month trial here."

Now, it’s a little early to say anything conclusive about what a mistrial would mean, but that does not exactly sound like good news if you’re one of the people who think Scrushy was involved in the massive accounting fraud at HealthSouth. 

THE INDUSTRY: Down to the wire for Scrushy

Well the jury is out at the Scrushy Trial. Don’t really want to spend a whole lot of thought about it, but I’m a little intrigued to see if the preaching at the black Churches and the sponsoring of the Christian boy bands can keep poor Richard out of the slammer. I doubt it, but then again I pride myself on being rational! I read somewhere that it’s easier for a camel to pass through the eye of a needle than for a Medicare fraudster to enter the Kingdom of Heaven.  But what would I know….

INDUSTRY: A little on the Advisory Borg

I have a lot to say about the Advisory Board, not all of it bad by the way.  But before I do, go read HISTalk Blog on the subject here and then here (scroll down). Back tomorrow (am way crunched today).

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