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POLICY: PRI has a blog, almost.

Sometimes you just wonder how these press release lists get put together. The Pacific Research Institute, which with its fellow traveler organization the Fraser Institute, has been issuing nutty and just plain wrong "research" about Canadian health care for years, decided to start sending me press releases today. They now have their own blog (well it’s not alive yet but a press release is as good as, dontcha think?). The blog will explain why importing drugs from Canada is a bad idea and why paying more for drugs is a good idea.

Well as they’re nice enough to send me the release I went and looked at their annual report, and if you like pictures of Maggie Thatcher you should go look there too. It does worry me a little when Sally Pipes can only find Rick "Man on Dog" Santorum to quote effusive things about her health care work, but I guess you get praise where you can.

However, their press release also says that they solicit corporate contributions from the health care industry. No biggie, as I do that too (although I call it consulting work!), but you might get the impression that the "research" PRI conducts probably fits the views of certain parts of the health care industry very well. So well that I’m a little surprised PRI only manages to get 15% of its $4.1m budget out of the corporate sector–although it gets another $2m odd from "foundations" which may well be corporate-controlled ones too. But they’re not honest enough in the report to say who it is who’s coughing up.

What you really see from reading the report is that PRI has been somewhat effective in turning a small amount of money into either effective policy interventions or totally muddying the policy waters (take your pick). The end result is that whenever Canadian health care comes up, there is a loony cry from the right that manages to obscure a few basic facts, and makes sure that no rational conversation can be had here about real health reform. Even though the genuinely independent Lewin group showed that single payer would save money in California–a report that sank without trace. So to that extent, this little corner of the vast right wing conspiracy (in San Francisco no less!) is doing its job. Pity that PRI’s claim about individual freedom being the be-all and end-all don’t appear to have transmuted over to a stated position on the drug war or medical marijuana.  Perhaps they don’t notice where they are. The Independent Institute, a more intellectually honest libertarian think tank across the Bay has no such qualms.

POLICY: Fuchs and Emanuel on vouchers

In an article called  "Solved!" Vic Fuchs (and new-ish partner) Ezekiel Emanuel go into much more detail about their plan for creating a VAT-funded voucher system for health care. I’m moderately in favor of vouchers for health care and education so long as they are indiscriminate between public and private institutions (i..e don’t take money from public schools and give them to private ones). In fact the best of all worlds would have no "public" provision of either education or health care, but a voucher system that was closely controlled to make sure that inequality of geography and class was corrected. In other words you’d get a more valuable voucher if you lived in the ghetto than if you lived in the suburbs, which would encourage health plans and schools to set up there.

Having said that, I don’t think that Fuch’s plan has much chance of success in the medium term because I don’t think that Americans care enough about universal health care. More likely will be some kind of incremental legislation, such as that being discussed in secret by Heritage, Families USA et al. As I’ve railed many times on THCB, if it’s not universal and compulsory, no system will work in either reducing costs or reducing the number of uninsured, because the producers can keep on putting the prices (and services) up and the net result will be more people unable to afford insurance. So an incremental approach will not solve the problem for which a solution is being demanded (which is rising costs for the middle class rather than uninsurance for the lower class).

So in the long run this incrementalism will lead to a single-payer government funded (and possibly provided) system, which will have a defined and fixed budget–and may be administered via a voucher system  But it will take us a long time, or a national crisis to get there.  Who was it who first told me that health care reform only happened in times of national crisis?  Vic Fuchs.

TECH: Firefox effed up?

Is it just me or is the latest release of Firefox 1.0.4 a disaster?  Ever since I downloaded it, Firefox has been crawling compared to IE–literally taking 10 times as long to download a web site.  So much so that I’ve abandoned it.  I’ve trawled the web, changed a few settings based on some stuff I’ve read, but it’s still a disaster.  Any ideas?

PHARMA: A start-up data success? IMS Health buys PharMetrics

This one may be a little too inside baseball for some of you, so don’t be afraid to skip it.  However, if you care about pharma marketing, read on.

Yesterday IMS Health said it was buying PharMetrics. PharMetrics is a company that succeeded where my old company i-Beacon, and several others backed rather better, failed in creating a business for longitudinal patient data. What that means is that it linked medical claims and Rx claims data about the same people over time.

Theoretically that tells a drug company whether their drug is getting its "share" within its disease category and also whether its drug is working in reducing medical claims. (You remember that theory about drugs improving care quality and lowering cost?) It’s also supposed to tell a health plan whether its disease management efforts are working, or what disease management plans are working elsewhere, although local rival IHCIS concentrates more on that market. (i-Beacon BTW matched PharMetrics-type Rx and claims data with other consumer data in a very clever and legal way to help score DTC marketing–not that we ever really got the product to market).

PharMetrics gets its data as a by-product of a weird agreement with a tools company called Symmetry Health, and receives data on roughly 50 million people via lots of health plans. From my recall (which is some years old now) they don’t know who the people are (other than having a unique plan identifier so that they know it’s the same person). Therefore they a) don’t have a way of tracking the people once they leave their plan, which presumably makes the data somewhat less robust over time as most people change plans every couple of years, and b) can’t fulfill the pharma marketing wet dream of telling the detail reps which patient at which doctor ought to be on their drug but isn’t. Of course getting to that stage would be unethical, not to mention illegal! But the basic problem with these longitudinal patient data sets is just that. They can tell you what might work in general but cant point your sales people to specific things to do in particular cases because that would mean identifying individuals. Of course eventually if we all get electronic medical records, some organizations which have  legitimate right to do so will be doing that.  In fact Active Health Management, bought by Aetna last month, does just that–but they are then by definition confined to disease management and can’t sell that data to the pharma companies–who are the best market.

IMS Health of course has the "specific" data base on doctors and their prescribing habits, and it’s not only wrapped into telling the pharma sales forces what to do, but is also a direct component of how the sales forces’ compensation is scored. That’s why IMS is the best (and most profitable) franchise in all of information services and why big and small companies (like Arclight, PharMetrics and i-Beacon) continually take a run at them–often with the intention of getting bought.

PharMetrics seems to have achieved that goal. I don’t know specifically how well it was doing but with 75 people and probably $10-20m in revenue, it probably went for around $50m. Of course that’s pure speculation and we won’t know the real numbers till IMS next 10Q comes out, but the main thing is that the VCs who put in $30m over time got out alive.  And who knows, maybe they all did much better, which will of course only encourage others to get into the ring.  And that’s much of the driver behind the grimy little sector of pharma data analysis.

PHARMA: Is Pfizer’s Black Knight on the way out?

So the slow burn of Peter Rost’s time at Pfizer appears to be picking up. The NY Times reports that he’s essentially been comparing him with the Black Knight (in Monty Python and the Holy Grail) in not noticing how bad his situation really is. But in the NY Times article a couple of interesting things are revealed. It’s already known that Rost sued and beat his previous employer Wyeth in a whistleblower-type scenario when Wyeth was underpaying taxes.  Rost may also be involved in some kind of a whistle-blower suit currently, as according to the Times "Pfizer disclosed that the Justice Department had opened an
investigation into its marketing of genotropin, the growth hormone Dr.
Rost was responsible for selling at Pharmacia".
Presumably if Rost was a bad guy in that scenario Pfizer would happily fire him, so it must be assumed that he’s probably a whistleblower or at least neutral.

The whole thing about reimportation is of course ridiculous. In Europe the courts have just ruled that "parallel trading" is legal, and you don’t see the drug industry give up selling its products in Europe because of that. If Canadian imports were legal here, there wouldn’t be that much difference to the current market.  But that’s an old discussion and we know the positions there are not going to change much.

The interesting point is that Rost gets $600,000 a year to do whatever he’s doing at Pfizer, and of course he can’t leave that and get anything like as much anywhere else. Those of you who consider that you’re selling your souls to big pharma/corporate American might wonder whether you are getting your fair share!

BLOGS/TECH: THCB week off over, more or less

Your host took a (he believes) well-earned break in Europe last week  following some work over there (and no it wasn’t for the NHS). I’m actually still there (here?) having randomly found wi-fi in a wi-fi less world before my flight back to the states tomorrow.  Anyway, I did all the eastern Europe touring I should have done 20 years ago when I lived here, and I recommend Prague heartily.

The main thing of interest that happened while I was gone was that the rumors of IDX’s problems in the UK  (mentioned several times in the excellent HISTalk blog) indeed were true. Fujitsu, the general contractor in the southern region fired them, even though their replacement (another win for Cerner) has had its own issues with the "meet and greet" appointment system. (Yeah I know it’s not called that).

Cerner’s stock price is up some 30% since March, which suggests that Wall Street has decided who the winner is in the HIT game. As my Fiercehealthcare editorial last week suggested, it’s probably a matter of when rather than if one of the bigger tech companies (Oracle is a persistent rumor) decides that they want them.  However, at a PE of 37, Cerner is pretty pricey!

My next real work is on the subject of ePrescribing. So if that’s an interest of yours please drop me an email. Hope you didn’t miss me too much, and I look forward to being a little more attentive in the coming weeks.

Finally

QUALITY/TECH: Better to have a bypass

INTERESTING TIMES for cardiologists, as new research this week in the NEJM suggests coronary bypass surgery may be a better treatment option than stents.  For those paying attention, this is not exactly news.  People have been making the argument for years.  Go read Matthew’s post "Dump the stent have a bypass", written way back in October of 2003, for a deeper look at some of the evidence supporting this theory.

YOU MAY ALSO want to take a quick look at Gregory D. Pawelski’s statement in support of embryonic stem cell research, which is a well-articulated post written from the perspective of someone who knows a bit about cancer treatment.

THCB: Comments on Mr HSA’s comments

Greetings from Europe where I’ve been engaged in the mother of all consulting projects.  Thanks to Mr JiB for keeping THCB going in my absence.  Meanwhile I’ve been having some emails complaining about Ron Grenier using the comments as advertising for his HSA business.  Do you feel Ron does that? And what do you think THCB can or should do about it?  The thread is all yours and I’d love to hear any other views about the comments (including whether anyone apart from the "regulars" ever reads them!)

POLICY: On Social Class and Health Care by the Industry Veteran

A WEEK AGO, the NY Times ran
a front-page article presenting three case histories of people who sustained
MRI’s.  The article by Janny Scott, “Life at the top in America isn’t just
better, it’s longer
,” is part of an ongoing series examining the effects of
social class in the US.  I highly recommend it to all THCB readers as the
real heart and soul of what health care analysis is all about, or at least
should be.It will come as no surprise that Scott finds social class
determines every aspect of each patient’s episode, “from the circumstances of
their heart attacks to the emergency care each received…It shaped their
understanding of their illness, the support they got…[and] their relationships
with their doctors.  It helped define their ability to change their lives
and shaped their odds of getting better.”  In the best traditions of
feature journalism, Scott supplies copious detail to illustrate that the
enormous treatment differences meted out to patients and the commensurate
outcome disparities varied according to social class.Just within the
realm of health care services, the same disparities apply to stroke, cancer,
diabetes, chronic viral infections (HIV, hepatitis C) and a raft of other
episodes and conditions.  Of course, we could examine most of the other
issue areas at the core of contemporary life — education, retirement, child
care, leisure, on and on — and find in these that social class is also at the
root of discrepant life chances and life styles.The Times’s
article also underscores a point that you and I have both made on TCHB several
times, namely that the holy-of-holies under Reagan-Bush-Bush, the omnisciently
unregulated market, is a piss poor way of delivering goods and services that
have such enormous impact upon the length and quality of lives.  Markets
stratify the public into segments, they often require long periods to
self-correct, and they tend to evolve in ways that subvert the very
preconditions for a market.  Some of those market system shortcomings,
within moderate limits, may be acceptable for consumer packaged goods, luxuries
and certain other sectors.  Health care is too important, however, to leave
in the hands of the oligopolists and plutocrats who run markets.

MORNING SCAN

AMAZING NEWS from India where the Congress-led government says it has reduced the number of new HIV-infections from 520,000 two years ago to 28,000 this year.  Assuming they’re counting properly, that’s good.

COULD this service offered by a Dallas Company be the future of coverage for the uninsured? The  details: $18 membership fee, $4.95 a month, $35 per call. Somehow, we’re skeptical. USA Today had the story in yesterday’s issue.

WIRED NEWS has the scoop on health IT, explaining: "Computers are no cure for dumb docs." For some reason there’s no mention of dumb computers in the story. Or dumb vendors. Or dumb gadget-obsessed journalists, for that matter.

"research published Wednesday suggests that even the best computer systems can’t stop hospitals from being killing machines."

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