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POLICY/POLITICS: A despair at the lack of new ideas

A long time THCB friend and contributor is back from the big NMHCC show.  He was not impressed at what he heard:

Just got back from NMHCC in DC last night. I was
shocked – shocked! – at the paucity of any kind of original thought at the
conference.  There were a couple of interesting collaborations between payers
and providers (e.g. BCBS of Delaware providing access to its MeDecision database
to allow them to print patient history reports in Christiana Health System’s
ER), but nothing especially compelling or breakthrough to discuss.  No
substanative discussions (beyond CDHP) about the 45 million uninsured (at least
that I heard) or the millions more that will be with the looming Medicaid
cuts.

HHS Sec’y Leavitt outlined 12 strategies for Medicaid
(I wandered off during number 8, I think: his diatribe about how big a problem
lawyers cause helping seniors who are above the poverty level give their assets to
their kids so that they can qualify for Medicaid coverage of LTC).  His
mandate is clearly to eviscerate Medicaid as we know it… I’m all for progress
(i.e. a better Medicaid that covers more people at fewer cost with less waste,
fraud and abuse and chronic disease) but not for removing a vital safety net for
the indigent and working poor (especially children)…

POLICY/POLITICS: Faith-based health care as the solution for the health insurance crisis

New contributor Susan Mucha has some interesting and amusing takes on the views of the  Republican voting core on the health insurance question:

Excellent thoughts on this topic. I share your frustration on shopping for health insurance–my "association plan" is $6500 a year with a $5000 deductible and it goes up about $1000 a year (I’ve never made a claim). Unfortunately as a member of the middle class, if I had a need for emergency medical care and didn’t insure myself, the hospital would take my
house and savings after presenting the bill, so I choose to pay for a noncompetitive "group" insurance policy rather than play roulette with my retirement. Individual insurance wanted to indefinitely exclude my gastro-intestinal tract (family history of hiatal hernia plus had a screening colonscopy/endoscopy about four years ago–no further treatment but a black mark on my health screening questionnaire).

 
I have some humor to share with you. A member of
our local Republican Women’s group called me last night to see why I wasn’t
re-joining–I’ve refused the last two years because of my frustration on
Administration policies related to health care (the Democrats don’t have better
answers because the insurance lobby feeds both sides too well). I told her that
I felt that the Administration was out of touch on this issue and until I saw
some evidence of it being given attention I wasn’t going to re-join. She shared
with me that she was currently uninsured because her husband was self-employed
and couldn’t find affordable health insurance. She says she "prays to God
every day that she won’t get sick." So, I guess Republican women are starting a
new "faith-based" initiative to address the health insurance issue. Personally I
think the HSA isn’t much better than praying to God to stay well. I’m not
worried about a $5K hospital bill. I’m worried about $100K hospital bill and
because no one knows how much procedures cost, it is impossible to understand
what you are buying in a hospital emergency situation.We definitely need to fix the problem and the report you’ve posted has excellent suggestions. There are a lot of us out here that are willing to pay
for reasonable health coverage insurance and a little better regulation of
insurance industry policies would go a long way in incentivizing continued
individual health cost responsibility. I see more and more people "praying to
God" instead of paying insurance premiums and ultimately we taxpayers are
covering those bets.

I actually think that this is a screaming big deal, and that the social conservatives without access to health insurance are the "swing voters" who will eventually vote for rather than against their economic interests, and vote for a national health insurance program.  How long they’ll stay with faith-based insurance, I don’t know.

BLOGGING: Minor IE screwup

There was a minor screw-up in the template today and that meant that Internet Explorer and Safari users couldn’t get to the site for a while.  My apologies.  It’s now been fixed, but for your techies out there you’ll be interested to know that Firefox worked just fine.  If you try to get to the site and it doesn’e work, please email me about it.  Thanks

QUALITY/TECH: ePrescribing as part of P4P for Wellpoint

In more from the HIT conference, Leo Barbaro the network management services VP for Wellpoint Northeast (Blue Cross NH, Connecticut, Maine) gave a talk in which he jammed together an ePrescribing talk with his P4P talk and gave some ideas about what’s working to combine P4P and encourage ePrescribing as part of it. It’s an excellent talk with lots of info, and you can download a PowerPoint of it here.

Wellpoint is moving towards P4P for all products, rather than just for HMOs. They’re also starting to move quality payments away from HEDIS measures to paying for IT use.  Now that Wellpoint is big enough to swing a bigger stick in many markets they’re starting to consolidate their P4P programs.  In the 3 states Barbaro runs they give physicians points for doing the right thing. You can get 15 points out of 100 for adoption ePrescribing and another 25 if you prescribe all the generics you could.  And if a physician gets to 80 points out of a hundred they get a 6% bonus payment on top of the FFS payments you get anyway — so the ePrescribing and generic substitution part is half-way there.

He also talked about Wellpoint’s technology Investment. This is $30m spent by the non-Anthem part of Wellpoint, (CA, GA, MS and WI) which offered free technology to 25,000 doctors in those states. 19,000 accepted –6,000 told them to go fish. For those that wanted ePrescibing Wellpoint gave them Allscripts or Zixcorp and paid for it for a year.  For the rest they gave them a Dell desktop and connected them to a clearing house. 86% went for the desktop, only 14% took the ePrescribing package for which Wellpoint comped the $59 a month cost for a year. It seems that the rest were just getting a free computer to give to Betty in the front office and that that part of the giveaway had little value other than to make the physicians a little happier.

Of the 2700 who took the ePrescribing package, 2,000 registered on the system last year but only about 200 are using it with 30,000 Rxs submitted electronically.  This program started in Fall 2004 so there is indeed some ramp-up to go, but in general, as Wellpoint’s chairman Len Schaeffer said,  "free isn’t cheap enough". They are though doing a formal evaluation of both sides of the deal which will be available eventually.

The initial conclusion is that ePrescribing is not high on the radar screens of physicians, and getting to the small provider is a significant challenge.

Wellpoint  did on another study in the northeast (Barbaro’s region) with a big MSGP (26 docs) to whom they gave an ePrescribing system. They found that with an ePrescribing system costs per Rx went down 2% in the Q3 2003  compared to Q3 2002,  even though the number of scripts written continued to increase. As a control group they used other docs in the same region who’s costs per script went up 6%. Overall the PMPM costs of drugs for the target group was still higher that the control, suggesting that those docs were higher prescribers overall. But lots of other factors were being introduced at the same time. Most importantly they increased their level of generic prescribeing 4%, more than 4 times that of the control group.  Which is a pretty sobering thing for pharma to consider until you realize that something like 30% of scripts written are never filled and presumably eScripts will be filled more or less automatically.

Barbaro’s view is that at some point if providers don’t have the systems to show that are giving value then they will just get less money. But this is going to be a long long haul.

A doc from Colorado somewhat disagreed and says that money would be better spent to get ePocrates to put PBM formularies on their software. He said that it’s just too hard to do ePrescribing without a full EMR.  He thinks that it’ll fit their workflow better.

A tough topic for sure. The next day Mark McClellan from CMS said that ePrescribing will be mandatory for Medicare part D by 2009.  But I’m not sure if that means mandatory for all doctors or just mandatory for the plans to accept eScripts. If it is mandatory for all doctors then we’ve only got three years to sort this out, which basically cannot be done — unless someone can show me another market that went from 5-10% penetration to 100% in three years!

So there’ll plenty more to say about this whole topic in the future.

Meanwhile I didn’t go but here’s the slides from a presentation about Kaiser’s EMR.

There’ll be more about McLellan either later today or tomorrow, but the hotel didnt have Wi-Fi so I wrote my notes by hand!! And typing them up later loses out to going to see the replay of today’s Chelsea v Barcelona Champions League game!

UPDATE: I am delighted to report that Chelsea beat Barcelona 4-2 in one of the better European Chanmpionship games of all time, going through to the next round.

TECHNOLOGY: HIT conference….Interoperability

So I spent part of yesterday at the HIT meeting west in San Francisco.  The most amusing session has Molly Coye  pretending that she’s the governor, and apart from the wisecracks about steroids and occasionally forgetting that she’s supposed to be pretending to be a Republican, there is some serious discussion of how information exchange between systems in California might work. This is the creation of the RHIO (regional health information network) to get to that mythical state of  inter-operability.

The CMA rep (Jack Lewin) believes that his members–all those poor solo surgeons struggling by on $200K plus a year–can’t afford EMRs or any inter-operability and shouldn’t be given an unfunded mandate to get on it.  In fact he thinks that if a RHIO made health plans better off due to the elimination of duplicate testing, then they should be taxed $25 per head to pay for all this.  I don’t think that Arnie Milstein (Med Director of PBGH) representing the employers. They are not too interested in paying any more than "their fair share". On the other hand Bob Margolis (CEO Health partners, the second biggest group in California with 1,000 docs) thinks that the state and Federal government should just piggy back off the private efforts.  In other words let Health Partners connect to Kaiser and hope everyone else can hang on. No reason for those two to slant it to their advantage, is there?

Well at least they are all talking about business models and there does seem to be some agreement that there is money to be saved, at least if anyone’s information was available when they showed up in the Emergency room. So that may be a place to start, as it appears to be in Indianapolis, but while (as Jeff Rose says) at the end of the day people want to do a good job, waiting for that to happen may take a long long time if no one’s funding the inter-operability. In fact in Santa Barbara there are, after all that time and money from the CHCF, only 50 odd doctors are on the system.

David Lansky (Foundation for Accountability) on behalf of consumers pointed out that the industry is getting $10,000 a year from each consumer and yet it hasn’t got enough money, wants more….and the industry is having the meeting about moving the consumer’s data around without telling the consumer about it! (The only funny line so far!). He wants consumers to get a seat at the table, and wants the product to serve the public more than the industry.  Plus he wants privacy and auditability, and for the info gathered to used for report cards, quality and who to go to–in other words accountability! And he warns that if industry does this without the consumer, then the consumer will torpedo it later (shades of the backlash against managed care).

So how to move things ahead? Jeff Flick from CMS likes demos, like the small and hard to find (unless you know how to spell it) DOQ-IT program. He also likes putting up data for consumers — Medicare has done it for nursing homes and home health. Their comparative data is changing behavior and being accessed by consumers, but at the moment they don’t have the data for the rest of the system, especially doctors.  In the end though he thinks that a successful RHIO will allow access to that data —  another good reason for providers to resist it.

Jeff Fickenhaser (ex WebMD now CSC) says that to get RHIOs to work you need a) organization — all sides at the table inc payers and providers, b) leadership, c) clear sense of where the money will come in and where the value is created, and d) the data has has to be transparent.

It all sounds very like a CHIN meeting in the mid-1990s  I hope it has a better outcome, but I still see no reason why it will. There doesn’t seem to be any common ground and there doesn’t seem to be any money or business reason to do it. And that’s not my idea, it’s what David Brailer himself said at the last HIT conference out here.

BONUS : Great quote from Arnie Milstein"My aim is to change the direction of begging"

(That is begging from medical directors and quality people having to beg physicians to get involved to the other way around because the market is going to punish them if they don’t)

BLOGS and BLOGGING: Is Joe interesting

I met a leading luminary from America’s physician world yesterday, and he questioned whether (at least one of) the "Interesting health care people" list I have in my right hand blog roll were really interesting.  So should I change it to "somewhat interesting health care people"? Chortle, chortle.

TECHNOLOGY: And you thought drugs got on the market too quickly and easily?

I’ll be at the HIT West conference later today hopefully with a little live blogging if things go well.  But meanwhile two articles over the weekend persuaded me that plus ca change plus c’est la meme chose in the wacky world of American health care.

15 years ago I wrote a thesis on the spread of laproscopic cholestectomy (gall bladder removal), which replaced both the conventional surgical method and a sound wave machines called a lithotripter to blast the gallstone. Lithotripsy didn’t actually work in that the gallstones tended to reform later.  Lap choles did work, and were self-evidently better than laparoptomy (surgical dissection and removal).  But in the case of a new surgical technique or procedure, there is no clinical trial required before it hits the market. Lap chole was popularized by a Tennessee surgeon called Eddie Jo Rickett.  In his heyday in the late 1980s, he was teaching other surgeons how to do it 50 week for a couple of grand a time.  He made so much money that (if I recall rightly) he quit surgery and became a country and western singer. Of course everyone had converted over to lap choles without any big clinical trial, just as lots of hospitals had bought million dollar lithotripters who’s main use a couple of years later was as a doorstop. Meanwhile the quick spread of lap choles also produced some real horror stories.

A decade further on not much has changed.  Today’s trendiest surgery is bariatric bypass (or stomach shrinking).  You might think this is pretty rare but there were over 150,000 done last year in the US including weather man Al Roker. However, just like lap choles and anything else that’s spreading fast, there’s not really any good trial data that shows it’s an effective treatment in the real world.  This fascinating and long article in the St Louis Post-Dispatch shows that like lap-chole and laser eye surgery, bariatric surgery has become a cash cow for some hospitals, and a stampede of surgeons learning the technique has massively increased its use.  Of course the backlash is starting and patients including former proponents of the surgery are starting to come forward with a litany of complaints, and many professionals and facilities are either getting out of the business or are starting to offer repairs on the shoddy work that’s being done. The article starts with this grim story:

She dropped from 302 pounds to 126 after her gastric bypass surgery in 2001. Since then, she’s become a strong advocate for other patients,
providing encouragement and advice to hundreds who have had weight-loss
operations. She arranges visits to the hospital rooms of people just
undergoing the surgery. From her home in Cincinnati, she runs a support
group called "Midwest Losers." Her work was honored with an award last
October at a national surgery trade show. But she’s paid a price to be thin: Five surgeries in four years for
related problems, including two hernias and three small bowel
obstructions. She was just diagnosed with a crippling vitamin
deficiency.She’s 41 now. She wonders how much more her body can take. "I’m second-guessing everything right now," Pierce said recently. "Is this what I have to look forward to the rest of my life?"

The point is of course that these surgeries spread in an uncontrolled fashion.  While there’s been plenty of criticism of the FDA, there just is no equivalent body demanding a clinical trial of surgical procedures, and any government agency that even dares to suggest such a thing needs to be wary of the fate of the AHCPR which fell foul of some Texas back surgeons in the mid 1990s and damn nearly was killed off by the surgeons’ friends in the newly Republican Congress.

The only time that surgery tends to get a clinical trial is if Medicare does one (which is rare) or if it involves a medical device regulated by the FDA. That’s just happened in the case of the drug eluting stents (DES).  A new study shows that the DES (Taxus from Boston Scientific and Cypher from J&J’s Cordis unit) both are much more effective than bare metal stents. (Incidentally both stents worked equally well and a new one from Medtronic coming on the market next year did just as well too. In any other industry you might expect a price war, but here don’t hold your breath)!
So at least there’s some good news that the trial proves these things are helpful.  But let’s consider two things.

1)  Virtually anyone who needed a stent was already getting a DES. Even despite the manufacturing problems both major stents have had and an entire recall of the Taxus stent last year, their use has been growing like crazy and they are the dominant treatment of choice for early stage heart blockages.  All this happened well before any clinical trial results came out. So what was the point of the trial? I guess it was like phase IV post market surveillance in the drug world.  But if the results had been bad, would it really have stopped Taxus and Cypher in their tracks? I doubt it.  Why? See reason number two.

2) Because the trial is comparing DES to a treatment that is known to be pretty useless.  The Bare Metal Stents have a high degree of re-occlusion. In other words the arteries they are placed in clog up again anyway. In late 2003 a Stanford study showed that that stents were less cost-effective than traditional by-passes. So the real challenge for the DES is to prove that over time they are more cost-effective than CABGs.  Do you expect to see that clinical trial any time soon? Nope, neither do I.

So 15 years on from the lap chole and lithotripsy story, we still don’t have anything like the clinical controls over new types of surgery that the FDA imposes over drugs.  And you may have noticed that some grumpy people have been complaining that the clinical trial and surveillance system for drugs is too lax!

 

POLICY: Medicaid muddles on

Today’s story about California hospitals suing Medi-cal comes on the heels of a
week of meetings between state governors and the Bush administration about
Medicaid. Medicaid has long been a dog’s breakfast of American health policy
with all types of programs thrown together. It’s a health insurer for the very
poor, it’s a long-term care plan for some of the elderly, it’s a subsidy program
for large inner city hospitals (the DiSH program), and it even pays Medicare
Part B premiums for those "dual eligibles" too poor to afford them. In addition,
in many states the CHIP program for near-poor children is rolled into Medicaid
too. Furthermore, many states use what are now called by HHS secretary Leavitt
"accounting gimmicks" to get more of their program on the Feds’ tab.

The problem is that all these programs tend to be underfunded anyway, and in
a time of state and federal budget squeezes, they come severely under fire.
Taking even another $6 billion per year out of the program, as the
Administration proposes, feels to the states like getting blood out of an
already over-squeezed stone–even if the GAO says its only $5bn a year. A rational system would somehow fold Medicaid into
some type of universal insurance system. But we are not getting that any time
soon, and right now many poor Americans and their safety net providers rely on
Medicaid to keep them from toppling into the abyss. So expect the politics of
desperation to play out in that sector over the next few months.

This is not going to be a fun time to be either a Medicaid recipient, or worse someone who would like to be.  And that includes a lot of young and poor children.  It’s also not going to be fun to be a safety-net provider who relies on Medicaid as one of their better payers.

PBMs: Express Scripts net surges

From the "why does this keep happening?" file, it looks like the PBM sector is continuing to remain very profitable. Today it’s the turn of Express Scripts to announce that  its earnings were up 13 percent. It also revised up expectations for next year.  The stock rallied about 7%.

THCB continues to be baffled at how the PBMs and other health plans are getting away with this.  After all this is a group that has had no success in saving its clients’ money on drugs in the last 10 years, and a recent survey showed that fully one-quarter of employers believe that PBMs are responsible for increasing their drug costs.  But with the Medicare drug benefit giving the PBMs increased visibility and access to a whole new market of customers, it would be a brave short seller to look for the top to the stock here.

TECHNOLOGY: Nine Tech Trends and one big barrier

I am wrestling with a much longer piece on the EMR than I was hoping it would be, but silly me I’ve got myself mired in CHINs, ePrescribing and RHIO.  And given that I’m going to see Duran Duran tonight I will doubtless be further into "Rio" before I’m done, and hopefully she’ll still be dancing in the sand…

So meanwhile go look at these pieces.  In the first Healthcare Informatics features Nine Tech Trends that it thinks are hot in health care. I’m not certain that the list is quite correct, but it’s well worth a scan and I do like this one quote from a hospital CIO in New Jersey:

"I really think we’re just beginning to see digitization," Sharrott
says. "I think if we’re talking 10 or 20 years out, the amount of
integrated digitization is going to be amazing."

Meanwhile the ever wonderful Jane Sarasohn Kahn has her wrap up from HIMSS over at iHealthbeat. She pretty much confronts the inter-operability issue head on. 

Finally, Brailer is very concerned that adoption will be done in silos,
creating more IT fragmentation and an even greater barrier to
interoperability. This is a very real possibility because in the United
States we’ve made an art out of building a fragmented health system
based on outmoded regulations, unchecked competition and other
externalities. The great value for Americans and the national economy
in achieving interoperable health information networks will be what
Brailer calls "the ubiquitous sharing of patient information."

The
leap of faith here is that nationally interoperable health information
networks will be developed as regional programs adopt sharing through
open standards and convergent business practices and policies. As
Brailer characterized, interoperability will occur "not from the top
down, but inside-out."

Developing interoperable health
information systems will require the collaboration of the broad range
of stakeholders in communities to give up their proprietary data
concerns and ante up cash and a collective spirit.

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