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POLICY: Perry Unhappy

Quote_leftGov_perry_v2When a company comes to me and says we have a cure for cancer, for me
not to
say, ‘Please come into my office and let’s hear your story for
the people of the state of Texas, for young ladies who are dying of
cancer,’ would be the height of irresponsibility. Whether
or not they contributed to my campaign, I would suggest to you, are
some of those weeds that we are trying to cut our way through. Quote_right_1

Texas Governor Rick Perry (R) expresses anger over widespread criticism of the executive order he issued earlier this month requiring that all girls entering the sixth grade in the state receive Merck’s new HPV vaccine. (Houston Chronicle). See Maggie Mahar:  "Merck’s miracle vaccine: What is this story really about?"

POLICY: Free Market Healthcare – Fact or Fiction?By Eric Novack

THCB thanks guest poster Dr. Eric Novack for a great series of posts this week on the big issues facing the health care system.  Together with Mike Millenson and Maggie Mahar, Eric did a fantastic job of filling in for Matthew.  If you’d like to hear more from Eric, go have a listen to the Eric Novack show, which airs every weekend on KKNT 960 AM in Phoenix. Stay tuned for more from Eric in the weeks to come …

This week, in Matthew’s absence, we have debunked the low overhead of Medicare and engaged in an ongoing discussion about whether a society based upon freedoms ought to be able to compel its citizens to participate in government programs.  I am somewhat surprised to find few people have been tackling the ‘opt-out’ provision of my previous post.  My sense is that it is tough to argue on paper (electronic, of course) that the government can force everyone to join in, with no option of getting out.  Interestingly, this is at the heart of so many discussions about public education, where a growing segment of the population is demanding more choices, not fewer, for their children.

An issue we have tackled before, but is worth doing again, given the repeated references in the comments sections, relates to another of the great myths of American health care:  our ‘free market’ system. 

Fact: $2 trillion in total health care spending in 2006 Fact: direct government payments for Medicare and Medicaid in 2006 accounted for about $700 billion in 2006  Fact:  government spending on VA health care in 2006 exceeded $31 billion Fact: Department of Defense spending on healthcare in 2005 was $37 billion, though the number now is about 8% of the total defense budget for 2007 Fact:  The value of the ‘tax exclusion’ for employer sponsored benefits was nearly $190 billion in 2004 Fact: private insurers peg their reimbursement—no matter how much they would claim to the contrary—to the medicare fee schedule

And we have a ‘free-market’ healthcare system?  Like the editorial I posted previously says, “the least we can ask for is an honest comparison” of the different options for reform.

TECH: Googling the wrong location By John Irvine

There’s been a lot of debate recently about Google’s effectiveness as a tool for people looking forDuke_medical_center
accurate health care information. But what about people who use the search engine in emergencies?

Recently, an employee at Duke Medical Center discovered that the indexing technology that Google Maps uses is helpfully picking up incorrect telephone numbers and displaying them along with the map showing the hospital’s location.

That error was causing a great deal of confusion. Nothing life threatening apparently – just a lot of wrong numbers.   

… the "numbers lead to particular doctor’s offices, and
they are being swamped with calls from people trying to reach the main
medical center." Bart [ the employee concerned] also said that he was told to update his business
listing, which he did but unfortunately the "other wrong ones still
remain" incorrect.

It would be easy to make too much of a story like this. I tend to think that making mistakes is an inevitable part of the process of getting things right. So I’m inclined to give Google the benefit of the doubt. But the incident certainly does raise a number of questions: is this a problem that is limited to Duke Medical Center?  How difficult is it for Google to correct mistakes like this once they are discovered? If I ran a hospital – or even a doctor’s office – I think I’d want to know the answers to both of these questions.

UPDATE: The answer to question No. 2 is apparently fairly quickly. As of this morning, Google seems to have fixed the error.

PHARMA: Merck’s Miracle Vaccine –What Is This Story Really About? By Maggie Mahar

GardasilYesterday, Merck announced that it is no longer going to try to persuade states to make its new $360 cervical cancer vaccine mandatory for all pre-teens. (At least, not publicly). The company wouldn’t divulge how much it has spent, to date, on its lobbying campaign.

Virtually everyone has heard about “Gardasil.” Planned Parenthood backs it. Women in Government extols its virtues. (Both organizations receive significant contributions from Merck). Not long ago, a glowing New York Times editorial congratulated Texas governor Rick Perry for mandating “A Vaccine To  Save Women’s Lives.”( So far as I know, Merck makes no contributions to The New York Times, but Perry’s former chief of staff is a Merck lobbyist.) At this point, twenty states have drafted plans to follow Perry’s example

Last summer, I wrote about the vaccine on American Prospect Online. At the time, I tried to make two points. First, while Merck’s vaccine could cost U.S. patients, insurers and state governments billions of dollars, it will not be saving millions of lives—because, in the countries where it will be available, there are not millions of lives to be saved.

Continue reading…

POLICY: Stopping Health Care “Reform” By Eric Novack

In response to the wave of misguided proposals across the country calling for "health care reform" , discussions are beginning for an initiative to amend at least one state constitution with the following:

The right of citizens to enter into private contracts with health care providers for health care services shall not be infringed.  No law shall be enacted requiring any citizen, or any class of citizens, to participate in any state sponsored health care system or plan.

I can’t name the state for the time being as the details are still being worked out. Thoughts?

THCB: Show your support etc.

THCB’s live blogging coverage of HIMSS 2007 New Orleans would not be possible without the generous assistance of the kind souls at CDW Healthcare.
Take a moment to go check out their specials for physicians and other
health care providers and you’ll help us continue to provide
independent coverage and cutting edge discussion of the issues facing
healthcare. We get credit for every person who clicks over, so please
take twenty seconds and go visit their site. If you decide to place
order, tell them the Health Care Blog sent you — Matthew

If you haven’t had a chance to sign up for THCB UPDATE
yet, you really should. You’ll get a helpful reminder email from us a
few times a week when important posts go up on the site. In the two
and a half months since the service launched more than 700 950 people have
signed up, thoroughly surprising me. I’ve pledged not to divulge any details about the people who
sign up, but I can tell you that list reads a bit like a health care
who’s who. Go on: It’s free. It’s useful. And people seem to like it.
Go visit the sign up page.

Hospitals: Army pledges fixes at Walter Reed By John Irvine

Less than 24 hours after this weekend’s two part series in the Washington Post on substandard conditions at an outpatient facility at Walter Reed Medical Center, Army officials and VA spokespeople were at the facility apologizing and pledging repairs. An undercover investigation by Post reporters Dana Priest and Anne Hull found serious problems at Mologne House, ranging from run down conditions in patient rooms to shocking levels of bureaucratic incompetence

From the Post’s report:   

The common perception of Walter Reed is of a surgical hospital that shines as the crown jewel of military medicine. But 5 1/2 years of sustained combat have transformed the venerable 113-acre institution into something else entirely — a holding ground for physically and psychologically damaged outpatients.

The story was quickly picked up by the national press. White House spokesman Tony Snow found himself dodging questions from the press corps about the way the Bush Administration has handled care for veterans returning from the war. Democrats called on the Department of Defense to launch an investigation into conditions at nearby Bethesda Naval Medical Center, where critics allege similar problems have been ignored in the past.

The Associated Press reports that the Army has launched a formal investigation into Michael J. Wagner, the VA official who until recently ran the outpatient center in question. Wagner now heads the Military, Veteran and Family Assistance Foundation,
a Dallas based charity that specializes in providing care for troops
returning from Afghanistan and Iraq. He is accused of raising funds for
the charity while still working as a VA employee.

Three years ago, a story like this would have been considered off
limits by editors worried that readers might be offended.  Expect more
pieces like it to follow as other journalists follow the Post’s lead.

The killer quote of the day: “If Iraq don’t kill you. Walter Reed will.”

Health Policy – A laughing matter By Michael Millenson

Michael L. Millenson, president of Health Quality Advisors in Highland Park, IL and author of the book Demanding Medical Excellence, has previously contributed to The Health Care Blog and been featured in a THCB podcast

Those who pore over The New York Times and Wall Street Journal for their news miss a chance to feel the real pulse of health care public opinion – the comics. Dilbertisms2This past Sunday, Dilbert, compulsory reading in cubicle world, neatly skewered the idea that “empowering” consumers is a sure-fire route to better care.   

Catbert, “evil director of human resources,” announces, “The new company health plan is Google. From now on, employees must use Google to diagnose their own illnesses.” After a quick search on his BlackBerry, Catbert diagnoses an employee’s hitherto unnoticed growth on the neck as caused by the actions of a “pregnant termite” and hints menacingly at treatment involving “an arc welder and a barrel of kerosene.”

Interestingly, Dilbert author Scott Adams felt compelled to counter the impression left by his own long post a year ago about the way in which Google helped him correctly identify a rare and serious condition that his doctors failed to diagnose. The key difference, of course, is the context: Web searching as a supplement to top-notch doctors or Web access as a cheap substitute for actual medical advice. Those who soothingly promote cut-rate “consumer-driven” care should note that actual consumers will be less credulous than the consultants’ current Catbert-like customers at big corporations.

Providers are also becoming targets for satirical barbs. The sardonic Sylvia, which comments on the trials and tribulations of modern life, devoted two consecutive daily strips last summer to drug errors. The first, noting that 1.5 million Americans are harmed by medication mistakes, features pickets holding warning signs in front of the local hospital (e.g., “Danger! Do Not Enter”). The second strip , searching for a solution, muses whether we all should have an RN accompanying us to the doctor’s office. 

Meanwhile, the satirical weekly The Onion ran a fictional news item in which an Iraqi hospital begs for a new supply of bilingual “Employees Must Wash Hands” signs. The hospital’s director notes that the importance of hand-washing “could not, unlike doctors and nurses, be overstressed.”

We are still a long way from the time when the 45 percent failure rate in the practice of evidence-based medicine unleashes a barrage of biting commentary on Leno, Letterman and The Daily Show, the accepted articulators of American angst. But Time has recently noticed the importance of EBM – and that’s a start.

HEALTH PLANS: Shernoff files suit against Blue Shield

Los Angeles health care attorney William Shernoff filed a lawsuit on Friday seeking to block Blue Shield of California from retroactively canceling member policies after claims have been approved, a practice that critics allege is far more common in the insurance industry than has been reported. The Los Angeles Times reports that the suit may have broad implications for insurers across the country: 

"What makes the latest suit unusual is that it seeks to stop the practice, rather than demand compensation for a policy holder who lost coverage. It could have a wide effect if it succeeds, because Blue Shield alone has  acknowledged canceling about 300 policies in the last two years.  The outcome also could influence other insurers that collectively have revoked thousands of policies in recent years.

PHYSICIANS: CYA Healthcare By Eric Novack

Dr. Eric Novack, THCB’s resident orthopedic surgeon and spokesphysician is an angry   man today. He is angry about people who go around blaming physicians for high healthcare costs. And he’s got something to say about it. What’s the real problem? Eric thinks its CYA healthcare. If you want to hear more from Eric, fire up your PC speakers and go have a listen to an archived webcast of one of his interviews on KKNT 960 AM radio in Phoenix.      

Thanks to all who participated in the ‘debunking’ of the “3% Myth” about Medicare’s efficiency. In other earlier posts, I have tried to address other great myths and misperceptions about the US healthcare system—see “an outcomes primer” and “association v. causation.” Another source of confusion and misperception is the statement that “doctors perform unnecessary tests and procedures simply for financial gain.”  Implied in this statement—and the basis for the ‘Stark Laws’ as well as single-payer proponents of government micromanagement of healthcare delivery—is that MOST physicians engage in this behavior MOST of the time, bilking patients and insurers, and substantially driving up healthcare costs.

I disagree. Before I get a wave of comments about how lab utilization decreased 25 years ago after Stark was introduced, read on. Did the introduction of Stark regulations (laws against self-referral for certain healthcare services) work?  Answer—NO.  If they did, why are we having the robust discussion here at THCB and throughout the country about healthcare?  Healthcare costs have continued, with few reprieves, to increase at faster than inflation rates for years.  The solution for the single-payer crowd—more regulation of providers and price fixing for service delivery.  It has not worked until now, and will not work into the future.

A much greater driver of costs today are patient-demanded healthcare and CYA healthcare.  It is difficult to quantify these costs, but the costs are huge.  Patients often come in ‘demanding’ an MRI or other test.  Accompanied with the demand is almost always the statement ‘well, I have insurance’, and ‘it is covered and will not cost me anything’.  These demanded test and procedures dovetail with CYA costs—fear of not getting a certain test and then discovering later a condition or problem needs treatment.  That ‘delay in diagnosis’ is one of the leading causes of medical liability claims.

The real culprit here, of course, is the 3rd party payer system that divorces patients from costs and risks—and places those risks squarely on the shoulders of healthcare providers.  Even for many of the chronically ill, the knowledge that someone else is picking up the tab alters behavior.

Changing the system so that 3rd party (insurance, government) payment is minimized will provide real market forces to reduce excessive healthcare costs.  Blaming doctors for the problem of ‘unnecessary’ healthcare, while failing to recognize the role of patients in driving costs is another area of distortion and misconception that clouds and confuses an intelligent discussion about healthcare.

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