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HEALTH2.0/TECH: And in your Health2.0 moment of zen

I’ll be at an IFTF meeting today where they too are talking about Health2.0 but in the much wider context of a shift in bio-citizenry. Hey, they’ve got way high fallotin’ since my days there as a grunge health care consultant in the 1990s. Of course if I didn’t plug the Health2.0–User Generated Healthcare conference in this post, you’d be disappointed, right?

But one interesting nugget arrived in my email courtesy of Today in E-Health Business. Comscore thinks that the “newbies” in the consumer health space are growing—look especially at Healthline’s increases.

More consumers are turning to the Internet to learn about various health issues, with some smaller Web sites gaining traction in the booming online health information category, says a new study by comScore, Inc., a company that measures Web usage. During the first quarter of 2007, an average of 55.3 million monthly U.S. visitors accessed online health information resources, according to the study released May 21. This figure represents 31% of the total U.S. Internet audience, an increase of 12% from the same period last year, it adds. WebMD Health led the online health information category with an average of 17.1 million unique visitors per month in the first quarter (up 25% from the year-ago period), followed by NIH.gov with 9.8 million visitors (up 8%), MSN Health with 8.1 million visitors (up 1%), and Yahoo! Health with 6.7 million visitors (up 83%). Several smaller players also have grown significantly in the category, the study finds. For example, Healthline.com attracted an average of 2.7 million visitors in the first quarter, up 269% from the same period last year, while QualityHealth.com jumped 114% to 2.6 million visitors in the quarter, compared with the same period a year ago, according to comScore. Meanwhile, recent market entrant RevolutionHealth.com has seen its traffic more than double from 239,000 visitors in January to 486,000 visitors in March. “While the larger and more established health portals are continuing to grow, the category is being shaken up by a few upstarts,” says Carolina Petrini, vice president of pharmaceutical solutions at comScore.

TECH/PODCAST: Generic Medical Devices, really? The interview with Richard Kuntz, CEO

This is the transcript of the interview with Richard Kuntz, the CEO of Generic Medical Devices—a start up making, well, generic medical devices. The audio is here

Matthew Holt:  This is Matthew Holt with the Health Care Blog, and this morning I’m back with another podcast and I’m talking to Richard Kuntz. Richard is the CEO of GMD, Generic Medical Devices, which is a company which is, as the name suggests, developing generic versions of medical devices. That’s a pretty interesting approach, and I don’t think it’s been done before.There’s actually a pretty big generic drug industry, which has a pretty interesting place in the panoply of pharmaceuticals, but we don’t know much about generic medical devices. And to find out a bit more, I’ve got Richard on board for a podcast this morning. So, Richard, how are you?

Richard Kuntz:  Excellent. Yourself, Matt?

Matthew:  I’m doing okay so far. As I told you just now, we’re testing out this new device. Hopefully it’ll work and we’ll have an error-free podcast! [laughs]So let’s start at the beginning. We know that medical devices come in different flavors, but probably the ones that have caused most controversy in recent years, in the press and elsewhere, have been medical devices, the expensive ones that are used in surgeries and procedures. We’re talking about stents and artificial hips and that kind of stuff, and there’s been a lot of controversy about both how those are solved and also the margins that are made on those devices. And some of these, there have been a lot of controversy around that.But just give us an overall view of this. You decided to go into this business with the goal of looking at medical devices and creating, presumably, an equally high quality but lower cost version. But what kind of medical devices have you looked at, where is the market that you think is the opportunity, and what is your approach to the market?

Richard:  Certainly the pacemakers, ICs, orthopedic hips, stents, are probably the four items that receive most of the press and discussion in general public, but there are literally thousands of other products that go into the hospitals as far as other implants, surgical instrumentation, and supplies.We’re focusing as the first company to begin developing products that are off-patent, that have proven safety and efficacy, that have existing reimbursement to reduce health care costs and help save Medicare. Every time we pick up the newspaper they’re talking about the impending bankruptcy of Medicare, and we intend to remove cost from those devices in the $120 billion device marketplace.There are literally thousands of products that the large companies have enjoyed a long run on, where the patents have expired; yet the prices continue to ratchet up each and every year. So we’re focusing on those products that do have patents that have expired, and truly, the only thing generic about our products is the price.

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Abdullah and the Stonefish foot By Dr. Terry Bennett

Terry Bennett is the last remaining solo GP in Strafford county, New Hampshire. He attained national celebrity two years ago after a patient complained to the state medical board when he lectured her about her weight. After fighting off the ensuing attempt to censure him, Dr. Bennett went on to become an outspoken advocate for reform in the medical education system. In the final analysis, he believes that medicine has been put in a box. And that it needs to be taken back out again. Today he shares a story about a long ago encounter that helped shape his views on the practice of medicine and his understanding of what it means to be a doctor. — John Irvine

It is Summer of 1988, and I am in Los Angeles, attending the Saudi Arabian National Cultural Exhibition. To the rhythm of drums, an old friend and patient is dancing with a line of other Saudi men. Nothing too unusual about that, it is part of Saudi folkloric behavior, the not-so-obvious-to-everyone-else-there exception, is that Abdullah A.R. is dancing on two flesh and blood feet, which appear completely normal, just like anyone else’s..

Now let me tell you why this is noteworthy.

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TECH: Scott Shreeve, Health 2.0: From Concept to Reality

Scott is being a Health2.0 hero. He’s all over the wiki for Health2.0, preaching the gospel at TEPR today and has a nice piece about the evolution of the concept on his blog called Health 2.0: From Concept to Reality. And of course he’ll be a big part of the Health2.0–User Generated Healthcare conference.

He’s also put out the first real definition. I think his definition is way ambitious but I like his moxie and I look forward to bickering with him about it all the way to September and beyond!

POLICY: Eric Novack responds

Here is a fundamental problem with the debate that Matthew is having with Amy Ridenour and David Hogberg: Matthew (and single payer advocates generally) focuses his attacks on the general ‘injustice’ that might exist in the healthcare system. In the face of such injustice, the theory goes, the government must step in to ‘even out’ the system (another way of saying that the ‘risk pool’ for unhappiness ought to be as big as possible—or, put another way, misery loves company).

“Free marketeers” (presumably an effort on Matthew’s part to turn those who believe that less government intervention actually is good for economies—for which the evidence is incontrovertible—into a pejorative) are generally no more happy with the current system than ‘healthcare-by-lobbyist’ activists (my own pejorative for bureaucrat run healthcare). However, people who believe in markets want to introduce free market reforms, recognizing that this process must be incremental.

Put another way—single-payer advocates speak in broad generalities of fairness and justice and risk pools—which sounds great to the public, but is short on actual policy implementation. Limited government advocates have, thus far, been focused on actual concrete steps to improve the system.

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POLICY: Now I’m just messing with her

So Amy Ridenour actually almost did what I asked and went and answered the questions for the free-marketeers I posed in Spot-on. My email has been broken all day and I’m grumpy, so I thought I’d cheer myself up by replying to her replies. This is mostly gratuitous dancing in the end zone on my part. So those of you who believe in the sanctity of erudite debate may want to skip it. The rest of you can join me in the gutter….

My questions from the Spot-on piece (originally titled “How to talk to a free marketeer”) are in red. Her replies in italics. My replies to her in regular text

“Why are you so happy to have a health care system that kills so many more people who have heart attacks, and amputates the feet of so many more diabetics?”

I don’t accept either of the two premises of the question.

Why not? The data—which I referenced in the Spot-on piece—comes from the Annals of Internal Medicine quoting the OECD. That shows that people suffering heart attacks are much more likely to die here than in Iceland, Denmark and Switzerland, and diabetics are much more likely to have their feet amputated than in Canada, Australia and a few other places. Is Amy suggesting that the statisticians in those countries and here are all lying in a massive fraud perpetrated by the Health Care Quality Indicator (HCQI) Project of the OECD? Funny, because that’s the same data source which produces those breast cancer survival rates that so many on the right wax all lyrical about. And if the data is right, why doesn’t America have a case to answer? We’ve heard enough about cancer care from the right!

And BTW the question has two halves but only one premise! To be clear—it’s not logically consistent to say we’re the best at treating disease by only looking at one or two diseases!

“Ask the free marketeers to explain why they feel comfortable with a financing system that causes at least 25% of all the nation’s bankruptcies.”

Same answer as above.

The same answer as a non-answer? Pretty curious. Perhaps health care costs don’t actually cause bankruptcies, or at least not at the 50% rate that Himmelstein and Woolhandler claim. But the 25% number comes from the reworking of the 50% number by Dranove & Millenson, which was in part funded by AHIP. So even they acknowledge that it’s a problem? But Amy “doesn’t accept it”. Can’t argue with that logic, I guess. I mean you literally can’t argue with it!

“Why [do free marketeers] espouse even greater cost sharing even though it’s been shown yet again this week that increased payment at the point of care reduces people’s likelihood of following their doctor’s advice?


One argument for “letting” people control more of their own health care spending is that the people who earned the dollars have the highest moral right to decide how they are spent.


So now it’s about the moral right to spend your money the way you want. I have no problem with that. Unfortunately those like Amy occupying the high moral ground don’t seem to care that the little people who have to choose between spending money on doctor visits and drugs or on food or rent—and yes there are some—are likely to not take their drugs or get needed care. She may feel all moral and good about that, but there are direct consequences. The most obvious being that more expensive things need to be done to them later (like the diabetics getting their feet amputated). Which of course the little people don’t pay for (at least not monetarily), but the rest of us do. But I’m glad she sees the moral rather than the practical effect of cost sharing at the point of care.


Another argument, which Matthew Holt presumably knows already, is the theory that folks who are spending their own money will shop around for the lowest prices, thereby adding incentive for health care providers to keep prices competitively low.


And while we’re at it, which country has the highest prices at the point of care for drugs and office visits? And which one has the highest proportion of consumer spending out of pocket on those drugs and office visits? Could it be that it’s the same one? As in this one. And how does that work in Amy’s theoretical model? Maybe she’ll enlighten us.


“Why do you want to raise taxes in order to transfer money from the poor and sick to people who are already richer and healthier than average?”


I don’t. Nor during my working lifetime have I seen many examples of tax increases afflicting primarily the poor and the sick (though perhaps tobacco tax increases could be considered an exception; those of us who opposed those, however, were considered to be puppets of Big Tobacco). My primary health care concerns are these: I oppose a U.S. adoption of a government-run, so-called “single payer” or “universal” health care system because I believe it would lead to needless misery, pain and death. I also am extremely concerned about Medicare’s poor financial prognosis (which I also believe will lead to an ever-worsening standard of care under Medicare). I do not believe that my position on either of these means I “want to raise taxes in order to transfer money from the poor and sick to people who are already richer and healthier than average.”


Now I’m a dumb guy so I’m having trouble following Amy here. It’s good that having criticized me for using the terms “screwed up” and for being “emotional” she remains so coldly analytical while accusing universal health care of causing “needless misery, pain and death.”


But original question was unconcerned with the desires of evil government single-payer bureaucrats to ration pre-natal visits for the first 10 months of pregnancy and the like. Instead it referenced the desires of some on the right to give everyone their own personal account with all the nation’s health care dollars divided up proportionally in it. I simply pointed out that if we do that, then money that previously would be spent on health care would instead remain in the accounts of those who are healthier and wealthier than average. If we were to continue to care for the sick in such a system then someone would have to pay the equivalent that’s now sitting unused in those accounts to cover it. That someone would either be the sick themselves, or the taxpayer or both. In my humble economics, that’s a transfer away from taxpayers (who are presumably of average wealth and health) and from the sick (who are of less than average wealth and health) to those who are healthier and wealthier. Amy may not believe that this is a good idea, but in that case she should refute the personal account concept and join those of us who believe in a social insurance model as being the only effective way to pay for health care. I somehow doubt that’s where she’s at.


So there you have it. All my questions completely answered to the satisfaction of anyone who doesn’t care about logic, health services research, or reality. The rest of you may be awaiting her man Hoggy’s shot at it coming soon.


And for those of you who really can’t figure out what “rent-a-quote” means, look at this obituary.

POLICY: Doing my bit to piss off the unthinking right

Cool. I make an off hand remark about conservative think tanks and get them all riled up. Amy Ridenour, who has an interesting place in the panoply of right wing think tanks and influence peddling, prints an email I wrote her and tries to answer my questions. I’m sure Mr Scaife thinks his money is well spent.

Of course what my piece was doing was directly stealing the conservative right’s tactics of changing the debate. Except in my case I’m doing it logically.

For instance, the right called inheritance taxes “death taxes” suggesting that they fall on everyone who dies—even when only a tiny minority pay them. So the law is changed and a mythical family farm is saved, and so funnily enough is the family fortune of the Waltons and their billionaire friends.

Similarly the right has been attacking foreign countries for alleged sub-standard care, and using that to justify our appalling health care financing system. All I’m doing is asking them to defend the care here that’s found to be of a worse standard. And of course Amy can’t. Perhaps her man Hoggy can. I’m looking forward to his response!

TECH/PODCAST: Generic Medical Devices, really? The interview with Richard Kuntz, CEO

At a great meeting in Nashville last week Brian Klepper was explaining to us all how medical supplies were 40% of a hospital’s budget and how the margins on those devices were in the stratosphere. You’d assume that someone would do something about that.

And then lo and behold I get contacted by a company that may be that “someone”. There is not a generic medical device market comparable to the generic drug market. But that will all change if Richard Kuntz, CEO of Generic Medical Devices has his way. Listen to this interview to find out more

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