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Health care expansion? Forget about it

Thoughbubble

"Jane has missed the most obvious implication of the implosion: the
bailout will use up the fiscal margin for any subsidized solution to
health reform. There will simply be no extra dollars in the federal
budget for the uninsured for many years. Obama’s health reform plan,
which relied on new taxes, is dead as a doornail unless he is willing
to push the budget deficit into Argentinian territory, or finance it
from savings inside existing health spending or health related tax
subsidies. Even the existing base of health spending will probably have
to be re-examined. Stay tuned for a more detailed analysis."

Addressable Health 2.0 market opportunities

Last week was an interesting one in Health 2.0, most notably for the disagreement on the direction of Health 2.0 that turned personal between Matthew Holt and Dmitriy Kruglyak.

Also, Fard Johnmar summed up nicely the potential steps going forward where the empowering/ democratizing models of health 2.0 meet real profit-sustaining enterprise.

    –Medical Decisions: This includes decisions about what medications physicians should prescribe and how to manage end of life care cost effectively.

    –Information Sharing: Providing valuable health data and education to consumers, providers, payers and others.

    –Medical Technology: Tools that help prolong lives, reduce administrative costs and meet emerging health needs.

    –Funding: Ensuring scarce health resources are allocated effectively and finding ways to stop breaking the health care budget.

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Around the Web in 60 Seconds (Or Less)

New surgery technique uses the somebody’s existing openings to allow for scarless surgery, the Washington Post reports. The new experimental procedure takes "minimally invasive to a new level."

Microsoft plans to buy back another $40 billion of its own stock — the single largest buyback in U.S. history, the Associated Press reports. Analysts say the move is an attempt to use spare cash to boost its share price.

What were they thinking? The Wall Street Journal Health Blog reports that employees at the University of New Mexico Hospital were fired after posting pictures of patients on MySpace.

Expanding health coverage isn’t enough if there are no doctors to see you. The Boston Globe reports that patients are waiting longer than ever to see a primary care doctor. What’s that you say about the awful Canadian wait times?

CHARITY: Are you an American Express cardholder? Do you want to help save children’s sight in India? ORBIS and “Kids for Sight” are asking for you and your readers help. Nyan and Lehka Pendyla, ages 9 and 7, launched a “Kids for Sight” initiative one year ago to help ORBIS establish a specialized pediatric eye care unit and training center in India. “Kids for Sight” has made it into the Top 25 of the American Express Members Project and now needs your help. For more information on “Kids for Sight” visit www.orbis.org/KidsForSight. If enough AMEX cardholders vote for the “Kids for Sight” project by September 29, it will advance into the Top 5 and be eligible to win $1.5 million in funding.

Cost of insurance mandates

A few months ago, the MA Division of Health Care Finance and Policy (DHCFP) released a study that showed that mandated health insurance benefits cost insurance purchasers about $1.3 billion – or 12% of their premiums – each year. Thanks to DHCFP for publishing the study. This issue is always the source of heated debate, and it’s nice to have a piece included on it that tries to inform the discussion.

Business people read the study and said, “Ah ha! Mandates cost a lot of money!” That would be correct. Health care advocates read the study and said, “Ah ha! Mandates don’t cost that much money!” That’s correct too – sort of.  As usual, where you stand depends on where you sit, how much twelve percent is worth to you for what you’re getting, and who pays the bill.

It’s also hard to tell if this kind of reporting influences the policy debate in MA or not. People here are screaming about the rising cost of health care, and the legislature responded by focusing on and enacting a cost containment bill.  But at the same time, the legislature considered many new mandates during its last legislative session, including significantly expanding the mental health benefit mandate for kids and adults.  Many in the legislature would argue – correctly – that the final bills that passed didn’t expand the benefit as broadly as many advocates would have liked, thereby significantly limiting the increase in costs associated with the new coverage requirements. Again, I think this is mostly a philosophical argument about how much is enough – and one that on the margin is hard to calculate.

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McCain, Obama and Palin show ignorance on economic turmoil

The presidential candidates, Sen. Obama and Sen. McCain, and the
vice presidential candidate, Sarah Palin are showing in their comments
on the financial crisis that none of them understand the crisis, the
economy or what’s behind the financial crisis.

They all need to sit down with their financial advisers and learn
what is going on so they can at least pretend to be smart about markets
and the economy.

What they are saying and the ignorance they’re displaying is simply appalling.

Controlling costs is the central problem in U.S. health care

The central problem in the U.S. health care system isn’t cost or insurance, per se, it’s the challenge of increasing health care value to the patient/consumer.

That means we must improve the poor quality and inefficiency of care, so that we all receive only the care we need, delivered in a timely and effective manner, without waste and over-treatment, and with a focus on integrating “well-care” (prevention and self-management) with sick-care.

It also means dealing with the knowledge void, an ironic situation in which our health care community is drowning in oceans of information, yet no one knows the best ways to prevent health problems and treat them cost-effectively, especially when you take individual differences into account. To address this problem, we need better health information technologies, as well as a collaborated effort to develop, disseminate, and deliver cost-effective evidence-based care.

If consumers were to receive high value health care in this manner, costs would be lower since poor care costs more and delivering only the minimal necessary care typically results in better outcomes! More appropriate care, delivered competently and cost-effectively through cost-conscious, patient-centered “medical homes,” for example, is the only way to control costs long-term.

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On the Road Again: Health 2.0 Motorcycle Tour

In "Zen and the Art of Motorcycle Maintenance," Robert Pirsig writes about the different reactions  to our experiences living with modern technology, which he describes as romantic, classic, and a third and completely separate element and perspective, which he calls Quality.

I’m finding that there is a bit of all three in my Health 2.0 motorcycle tour and the interviews along the way. It’s a curious revelation, and I’m somewhat awestruck by the relevance of his musings about how we lived during the 1970’s to our situation here in the new century with health, wellness, and the Internet.

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Adding layers to Health 2.0

Jen McCabe Gorman drew a picture at HealthCampDC last that I really liked. Luckily, I found this image of her Medicine 2.0 presentation, so nobody has to decipher my sketch.

The one difference is that, on Friday, Jen pointed out that the outer square ("content") is Health 1.0 and Health 2.0 begins with the "community" square. After reading her research paper, I now understand that the next inner square is Health 3.0, or content + community + commerce and the final, innermost square is Health 4.0, which would add coherence to the equation. Health 4.0 in this model is the "evolutionary stage connect[ing] the real world of brick-and-mortar systems with the virtual world of online services."

The paper is well worth a read, whether you agree with this model or not. I’m going to have to think about the following points, for example:

Another weakness of current Health 2.0 initiatives is the tendency of communities to attract similar people. Many focus on connecting "like-minds," relatively homogeneous groups such as patients with the same diagnosis or physicians in the same subspecialty. Similar groups then generate very similar content. Users become settled and ‘comfortable’ and thus less inclined to venture out and advocate for other consumer groups and sytemic change.

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Around the Web in 60 Seconds (Or Less)

The majority of ER patients leave confused and with unanswered questions, which can contribute to medication errors and return visits, the New York Times reports. And the study published in the Annals of Emergency Medicine was among English speakers! Imagine the confusion among those with limited or no English.

Illinois is debating its certificate of need laws, following a decision by the US Department of Justice and Federal Trade Commission that it hampers competition and weakens the market’s ability to contain costs, the Chicago Tribune reports. The Illinois Hospital Association president defended the law: "The state has a legitimate interest … in preventing the proliferation
of profit-seeking enterprises that seek to cherry-pick well-paying
patients or those who have good insurance coverage, leaving
full-service community hospitals to provide vitally needed but
money-losing services, such as emergency and trauma care and care for
the uninsured, that are poorly reimbursed or not reimbursed at all."

Pennsylvania politics over medical malpractice insurance subsidies threaten the existence of the state agency that monitors hospital finances, occupancy, procedures and infection rates, the Pittsburgh Tribune-Review reports.

Health Affairs has critiques of McCain and Obama’s health plans, along with a proposed comprimise by Wharton professor Mark Pauly.

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