Categories

Above the Fold

TECH: Are stents a waste of money? Maybe

This takes me back to one of my favorites. Two years ago a Stanford study suggested that we should dump the stents and have a by-pass instead, because they were more cost-effective. Stents only delayed the need for by-pass surgery. At the time I was poo-poohed by a couple of cardiologists who told me that it was all different now that we had drug-eluting stents. There wouldn’t be the restenosis that had made earlier bare metal stents in-effective. And indeed the drug-eluting stents have been so effective that their success has actually been a little too much for Boston Scientific to handle! It’s made so much money of its stents that its stock has fallen as Wall Street doesn’t believe that it can pull a smash hit like its Taxus stent off again!

But now with Medtronic introducing its new stent, some studies are emerging that question the value of the drug eluting stents. Last week’s news was that:

A study released at this week’s meeting, one of the largest clinical gatherings in Europe, indicates that drug-coated stents made by J&J and Boston Scientific aren’t cost-effective for all patients and should be restricted to those at highest risk for heart attack. The study will be released in the British medical journal Lancet on Saturday. In the study of 826 patients undergoing angioplasty, researchers from the University of Basel in Switzerland said that the higher cost of drug-coated stents was not compensated for by lower follow-up costs.

Although patients who received drug-coated devices experienced fewer heart attacks and deaths than those who were given the bare-metal variety, the added cost of avoiding one major complication using the drug-coated device was the equivalent of $22,815, the researchers said.

Of course as one technology strikes out, the new one is always there to replace it.

Fridley-based Medtronic Inc. gathered steam over the weekend after releasing two studies that claim its version of the device, called Endeavor, is durable over longer follow-up periods and shows no indication of clotting. After Endeavor received European regulatory approval on July 29, Medtronic launched the device in 75 countries worldwide, with a U.S. introduction anticipated in 2007.

But then later in the week yet another study came out in the NEJM suggesting that minor heart attacks do equally well with drugs as opposed to stents.

In a study colliding with established practice, recovery from small heart attacks went just as well when doctors gave cardiac drugs time to work as when they favored quick, vessel-clearing procedures. The surprising Dutch finding raises questions over how to handle the estimated 1.5 million Americans annually who have small heart attacks – the most common kind. Most previous studies support the aggressive, surgical approach. "I think both strategies are more or less equivalent. I think it is more a matter of patient preference, doctor preference, logistics and, in the long run, it could be a matter of cost," said the Dutch study’s lead researcher, Dr. Robbert J. de Winter of the University of Amsterdam.

Let’s hope for the sake of Boston Scientific, J&J, Medtronic and invasive cardiologists across this great land that no one from CMS or an insurance company reads the New England Journal! Although to be fair, the drugs they used to combat the heart attack weren’t exactly cheap anyway.

THCB: PharmaBlogging

I’ve been told (or at least like to believe) that I’m an entertaining speaker, and I’ll be doing a little bit more in the coming months.  One conference that is relevant to many readers is being put on by some folks including John Mack, and it’s called PharmaBlogging, and I’ll be giving the overview presentation on healthcare and medical blogs.

The conference is November 14-15, 2005 at the Sheraton University City Hotel in Philadelphia, PA and of course it has its own blog. Go there to look, but most of the conference is about how to use and work with blogs if you are in the pharma businesses. (Yup, the little box to the right here is a reminder…)

Meanwhile, I’ll be getting some audio and video clips up on the site soon, so you can all see what my hairstyle was like back in the day I had some!

TECH: Google, blogs, IT will save the day, blah blah

So a ton of news today, but also a ton of work for your host from outside the blog world requires some brevity.  So go look elsewhere for more on these, although you’ll get the caustic comment from me.

First up Google enters blog searching. This is supposed to make Technorati et al very scared. I actually don’t understand how to use Technorati, but I understand how to use Google. (BTW somehow Google already searches THCB stories). My educated blog friends tell me that Technorati is important and so Google must be on to something. However, they totally screwed up Blogger when they bought it — so much so that I left it and went to TypePad despite the fact that Typepad costs money and Blogger is free! Hopefully they do searching better than tools.

Second, another study, this time from RAND says that the healthcare system can save a gazillion dollars ($162billion or maybe 10% a year) if it would only use IT better. Ha, bloody ha. Exactly who is going to give back their share of the pie? And by the time that happens we’ll figure out that $162 billion is about the annual increase of health care spending, so we’re just back to where we were the year before. I’m not at all convinced that these grandiose studies with their huge mythical numbers help, but the key is that we need something to start health spending going down year after year — not up — if I’m really going to be impressed. Unlikely!

POLCY: HDHPs, employer insurance and regulation the Cato Way | SignalHealth

Over at Signal Health Tom Hilliard has been having an entertaining time with Mark Pauly and the boys from Cato. Go over there and take a look at the latest round of back and forth. Suffice it to say that if Mark Pauly had to buy his insurance in the individual market rather than receiving from the Ivy League Ivory Tower he sits in, I suspect that he would be rather more concerned about the way the individual market works, particularly the 20% he acknowledges doesn’t work well.

Meanwhile, Eric Novack and I are both reading Cato’s Michaels Cannon and Tanner’s latest work which is out today. (I had planned on a pre-publication review but then again…) We’ll be discussing it in another podcast sooner or later, but you’ll get the basic idea from the SignalHealth discussion.

Meanwhile, Health Affairs has some numbers out about the rise of the HDHP and the HSA.  You can see the full article here. But here’s the abstract pull:

Almost 4 percent of employers that offer health benefits offer one of these arrangements in 2005, covering about 2.4 million workers. Deductibles, as expected, are relatively high, averaging $1,870 for single coverage and $3,686 for family coverage in high-deductible health plans with an HRA and $1,901 for single coverage and $4,070 for family coverage in HSA-qualified high-deductible health plans. One in three employers offering a high-deductible health plan that is HSA-qualified do not contribute to HSAs established by their workers.

The last line is by far the most significant (hence my bolding it).  Even though the HSA is supposed to be the employees benefit, in fact in a third of the cases setting up a HDHP is straight cost-shifting to the employee. You were getting something and now you’re getting nothing to deal with the first chunk of medical expenses. So at least those employers have figured out how not to screw over their own risk pools (assuming that they keep some of that money that would have ended up in the HSAs in reserve to cover the expensive cases). You know that the rest of them will go down that path too — in fact a survey that was covered in this THCB article confirmed it a while back. Oh, the joys of a "jobless recovery".

And of course employers are getting out of the game of providing insurance anyway.  Another Kaiser Foundation survey this morning confirms that the percentage of employers offering insurance has gone from 69% in 2000 to 60% in 2005. In effect the HDHP over time offers the employer a way to get out of the game without having to bear the shame of leaving the field completely.

This of course continues to boil the frog….

Finally, it does make me chuckle that in the comments to this post about Medicare Part D, Eric Novack is apparently appalled that a combination of lobbying from drug companies, PBMs, health plans and providers mixed in with the endemic scratch my back corruption of the current Administration and its leaders in Congress ended up with a welfare plan for them all called Medicare Drug Coverage. But it’s a little weird that he thinks that the water-carriers for the Administration over at Heritage are actually surprised. The guys from Cato might be forgiven for being true believers, but Heritage, AEI and the rest sold their souls long ago, and know exactly how they’re dealing with.

CODA: I hate to link to Tech Central Station given how dishonest it is in its lack of transparency, but if the funny Cato boys will insist on writing there, then this one from Randy Balko is worth a chuckle.

HEALTH PLANS: Hidden gems for health plans in Part D

There have been some questions about why health plans and PBMs would want to be quite so enthusiastic about becoming Participating Drug Plans or Medicare Regional PPOs, or for that matter getting back into being Medicare, given that they all risk adverse selection.  The answer is pretty simple. The amount of money paid to Medicare HMOs went up dramatically at the start of 2004, and Part D PDPs and now the Medicare PPOs are all basically being insured by the government against losses.

The real test will com when those subsidies are taken away in a few years. Last time that happened, managed care dropped the Medicare ball in a big way.

PHARMA/INDUSTRY: Hurricane Katrina Direct Relief!

I was contacted late last night by Grace Davis who is one of "two moms" who is running a blog helping support relief for Katrina victims. The other mom is Victoria Powell, a doctors wife, who is visiting health clinics (and all types of other places offering help) in Mississippi to see what they need and getting them supplies. It’s a practical and innovative way of cutting through the bureaucracy, and it may be getting to some of the places that are otherwise being missed.

This morning they are putting out a call for supplies for health clinics that are running low on medication. If you are from a pharma company or a wholesaler or have some other way of getting them medical supplies, please go over the Hurricane Katrina Direct Relief! blog and see what you can do to help, or please pass it along to whomever in your organization is coordinating your efforts to help.  Many thanks.

PBMs: Are the rebate chickens coming home to roost?

Friday’s news that Caremark was settling with the Feds over a whistle-blower over rebates at AdvancePCS gave me some pause for thought. For a start, the number is $135m, and for a relatively low margin business like a PBM, that’s not nothing — especially as this was just for Federal employees and there are a hell of a lot more state employees than Federal ones (not to mention private sector employees) waiting in the wings with their lawsuits. AdvancePCS (which Caremark bought after the bad deeds were already done) was taking rebates — or what the rest of us might call bribes — from pharmaceutical companies to move volume from one branded product to another, and then hiding those rebates as administrative charges rather than passing them on to their clients. When the client is the Federal government, that effectively becomes fraudulent in a way that a smart whistle-blower (or in this case three of them) can can file a Qui Tam suit about it and become millionaires. But many similar suits are pending and many private clients of the big PBMs may start wondering how much of the rebates that the PBMs got were they passing along.  And the answer is not much.

It gets worse, in that a recent study by the University of Michigan found that their PBM was not only taking rebates to move market share from one branded product to another, but was working with big pharma to move share to branded products from generics! In other words although they were supposed to be acting as the University’s agent to reduce its drug costs, the PBM was taking money from pharma and the result was that their client ended up paying more.

I’ve been working on a piece that highlights some more of these cases and which has some numbers (all publicly available) to back them up. I’ll let that do most of the talking when it’s out in a few months. However, many of the games that the PBMs have been playing to make money are being found out.  Of course they still have the advantage of being able to buy drugs in great bulk and they still run highly efficient and profitable mail-order facilities, to which their clients are captive (even if their clients don’t understand quite why their that profitable).  Meanwhile the transparent PBM movement is in its infancy, so I’m not exactly sure that their gravy train is running off the tracks. But I think this settlement marks a big change in how PBMs have to behave, especially as come next year they’ll be working for the government a whole lot more.  Watch this space.

INDUSTRY/TECH: More ways to help Katrina victims: An open source response

Healthcare IT journo Neil Versel has a podcast up on his site of an interview with Jordan Glogau, chief technology officer of Preferred Health Resources, a medical billing services company in Nanuet, N.Y., made the following suggestion:

"Why don’t people nationwide volunteer to put up servers that are running open-source PM/EMR software like VistA or ClearHealth. I am sure that what the Red Cross is doing won’t have enough resources to address all the needs of everyone in trouble in the Gulf Coast states." with some ideas about how health care IT companies can help.

HHS has a site up with instructions for volunteers and many categories of people are needed (everyone it seems apart from consultants, insurance salesmen and policy wonks) .  Go to https://volunteer.ccrf.hhs.gov/ to take a look.

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. –

assetto corsa mods