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Health Plans: Pulitzer for WSJ by John Irvine

The Wall Street Journal wins a Pulitzer Prize for public service reporting for the critical series it ran on irregularities in the way stock options are awarded at some American companies. The investigation triggered a backdating scandal implicating executives at more than 150 firms and ultimately led to the downfall of UnitedHealth CEO William Mr. McGuire. The entire series is available on the Journal’s site for free. Meanwhile, The Oregonian picks up an award for breaking news reporting on the James Kim tragedy. The New York Daily News wins for editorials drawing attention to the serious – and by and large ignored – health problems faced by rescuers at Ground Zero.  

THCB Sponsorship announcement

I am delighted to announce that THCB is partnering with Silverlink, the automated interactive voice solutions company based in Burlington, Mass. Silverlink is now a platinum sponsor. I did a podcast with CEO Stan Nowak a few weeks ago that’s well worth a listen and explains what they do in great detail (although I had no idea they were interested in sponsoring then).

The quick version is that Silverlink puts all manner of health information, from alerts about medication refills to complex HRAs and disease management information, into outbound phone calls guided by voice recognition. Health plans, PBMs and others are using those calls to improve their outreach/customer service to their members…and you’ll know from my opinion about health plans’ typical customer service that anyway to improve that can’t be a bad thing!

For details on the business arrangements of how THCB’s corporate sponsorships work you need to email John Irvine. As most of you know John has always run the tech side of THCB and in recent months has taken over business side. Which, given the recent sponsorships with Silverlink, Orion Health and CDW, appears to be a great management move on my part!

The only difference you’ll notice is that if I’m doing a piece or a podcast on a sponsor I’ll be open about it–just as I have done when I’ve done podcasts with consulting clients of mine. I’ll still call them as I see ’em, and still ask the same questions–I suspect that that’s part of the attraction. The rest of the attraction of course is for the sponsors to get in front of you, the gentle and good THCB reader. So I’d be grateful if you could continue to look at the sponsors’ information kindly!

TECH: Health 2.0 article

This article in Government Health IT by Brian Robertson is a reasonably good description of the basics behind Health care 2.0. It doesn’t really feature much in the way of actual Health2.0 players other than Revolutions, but it does interview the guy who runs the Health2.0 wiki, Johannes Ernst, who is a leader in the Health2.0 movement (even though he’s more of a general techie than a health care guy).

Oh and I just noticed that Tony Chen has a rather better rundown of Health2.0 companies on his site —Hospital
impact – Consumer’s Guide to the top Healthcare 2.0 websites
.

TECH: AHRQ on eRx

The AHRQ’s report on its monitored eRx pilots is out. Here are the findings that I’ve extracted from their slightly longer list in the exec sum. 

In addition to testing the functionality of e-prescribing standards, pilot sites tracked various outcomes of e-prescribing in their pilots. The following observations were made by the evaluation team:§ Prescriber uptake and satisfaction. Adoption and retention of e-prescribing among providers was generally good. In order to facilitate prescriber adoption, the evaluation team recommends institutions implementing e-prescribing take into account the role of their organizational culture and prepare for possible “surrogate prescribing” (see below).§ Prescriber and pharmacy workflow changes. One finding that was consistent across all sites was that prescribers’ staff played a much more important role in the e-prescribing process than most pilot sites had anticipated. The evaluation team recommends that future e-prescribing efforts take the role of these staff, or “surrogate prescribers” into account in their planning. Another finding was that e-prescribing almost never replaced the need for paper-based prescribing, leading to highly variable use of e-prescribing features. In addition, implementation of e-prescribing can create dramatic “paradigm shifts” in pharmacy workflow. Pharmacies implementing e-prescribing, therefore, must allocate sufficient resources to deal with substantial change management. Finally, preliminary findings suggest that e-prescribing tools may decrease reliance on verbal orders and generate certain efficiencies for small physician offices. Proof of such efficiencies is still relatively preliminary, however.§ Changes in number of callbacks from pharmacy to prescribers. Findings reported by some pilots suggest that e-prescribing reduces the number of phone time for physician practices while potentially decreasing efficiency on (Sic—I assume they mean “in”) the pharmacy through an increase in the number of callbacks required to complete a prescription. Yet other pilots found a decrease in callbacks related specifically to drug coverage issues. Given these inconsistencies, the evaluation team recommends that further study is required to acquire a more complete understanding of this potentially “cost-shifting” phenomenon. § Use of Medication History functions. Overall, the pilots’ findings demonstrated poor adoption of this functionality. We recommend further research to determine better ways for displaying and maintaining up-to-date medication histories to providers.§ Changes in prescription renewal and new prescription rates. The long term care site reported a reduction in new prescription rates, indicating the possibility that e-prescribing may reduce the tendency for such patients to accumulate unnecessary active medications.§ Use of on-formulary medications and generics. Clinicians surveyed by the pilots were concerned about the accuracy of formulary information provided by e-prescribing systems. Further studies will need to assess the perceived and actual quality of this information. In addition, generic prescribing that automatically allow for generic substitution may increase the rate of generic prescribing.§ Change in fill status rates. Fill status use was extremely limited due to the difficult implementation of this standard.

More comment later, but the issue of pharmacy workflow is clearly a major problem—especially if call backs from the pharmacy increased after eRx was implemented.

POLICY: Blue Shield dumps the realtors whereas Blue Cross dumps on Arnie

And in the kicking butt and taking names department (more great work from Lisa Girion on this), California’s big non-profit Blues plan manages to wriggle out of insuring one unprofitable group — Realtors . Whereas Wellpoint, the parent of California’s for-profit Blue’s insurer has decided that it just can’t stomach the insistence of the Governator that they spend 85% of their revenue on medical care (i.e. give up a big chunk of their profits) and is the first insurer to publicly oppose his plan. (Although I told you that was coming a while back)

Hmm….this is a deal I think they should take while it’s still on the table. They have a new CEO. I wonder how long she intends to be around? If it’s more than a couple of years I bet she’ll wish they’d not done that.

POLICY: Gratzer vs Cohn at TNR

The New Republic turned over its column to David Gratzer yesterday and today Jonathan Cohn responds. All good stuff, even if Jon yet again misses out on laying down the financial consequences of being poor and sick here. And he is a little too nice to David. Not hard because David is really nice, but all the same the positions he espouse are factually challenged and basically don’t pass the rational sniff test.

At least that’s what I thought after he and I had a more than polite agree to disagree conversation, in which I think I played Manchester United and he played Roma! Mind you they tied that first leg, so perhaps Jon is waiting till later in the week to really stick it to David!

POLICY/POLITICS: Pat Salber on gun laws

In the wake of yesterday’s massacre in Virginia, here’s Pat Salber about the gun massacre on campus.

We need to empower and fund reputable organizations to perform the research on violence and violence prevention. (It has effectively disappeared from the Center from Disease Control’s research agenda in the last six years).  We need to put the health and safety of our kids ahead any other political agenda…can we possibly value  gun ownership more than the safety of our kids at school?

If our past actions are a predictor of the future, then this is what will probably happen.  Time will pass and the rawness of our emotions, so exposed right now in the aftermass of the Virginia Tech Massacre, will dampen. We will start to waffle on any enthusiasm to pursue rational gun control…we simply won’t care as much as the folks who profit from profligate sales of firearms.   And then we will be right back to where we have been for the last twenty or thirty years, waiting for one more (short-fused) time bomb to explode onto our campuses and into our national psyches.  

How many more school kids need to get shot to death? How much more campus blood and gore do we need to see?  How many more unbearable tragedies do American families need to endure before we finally stand up and demand a change in our national firearm policy?

TECH/PHYSICIANS: Sermo starting to kick-butt and take names

Sermo, the physician community site, seems to really be on a roll. I can now tell you what CEO Daniel Palestrand told me a few weeks back.

1) They’ve got 10,000 physicians registered–and there’s a lot of use on the site. Consider that there are only 600K active physicians in the US, and the average physician survey done by market research tends to have fewer than 100 doctors in it.

2) They’re taking aim squarely at Gerson Lehman and the other physician introduction “dating-agencies” which service Wall Street.  Essentially they’re allowing their customers to get a view about what physicians are seeing and discussing, and the physicians seem to like it—and don’t seem to want much if any money for their time.

Part of the reason the physician users like it, is that the UI and web tools they’ve put together are really neat. I would love it if Six Apart could knock those off and then my blog users could see things like where they’d commented, who’d commented on their comments. what the most active posts are, etc, etc. Perhaps Sermo should go into the blog hosting business?

Just kidding—I think they have bigger fish to fry.

What really surprises me is that although there are patient social networking sites popping up daily, I see no one else seriously going after physicians. Given how valuable physicians are, and the huge amounts dropped on researching into what they think by pharma, investors, health plans, et al, I cannot imagine why there aren’t more competitors.

TECH: Things hotting up as Revolution’s official launch coming up

The prospect of Revolution Health’s official launch (it’s actually up already but is relaunching this Thursday) has generated favorable press in the NY Times for Steve Case and crew. Milt Freudenheim’s done his homework, mostly. He essentially says that the pack of contenders includes Revolution, WebMD, Google (although nothing official announced from them yet–stay tuned), Yahoo, About.com (a sop I think to the NYTimes corporate sister) and the big health plans. He talks a bit about the limited use thus far of PHRs (no surprise there other than not mentioning why they might grow). The only surprising thing is that there’s another potential competitor of Google, Revolution et al that has plenty of money, a decent track record in software, a significant online network, and has just bought a health care search engine—But Milt never mentions the boys (and girls) from Redmond. Methinks that there’ll be some shouting from them before the large lady chants.

My only complaint is that Revolution’s board is made up of a bunch of rich people who haven’t exactly covered themselves in glory in their recent business (or political) ventures including it must be said Steve Case himself—(other than the brilliant move of selling AOL at a hugely inflated price to the buffoons at Time Warner). But it doesn’t mention their management team which is pretty steeped in health care and technology and pretty smart. If I was interested in gauging Revolution’s success I’d think that they’re more important than what, say, Carly Fiorina thinks. But she’s got $21m more than most of us…

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