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PHARMA: The FDA can only be saved by new leadership, by Blunter

There’s a new contributor today on THCB. Blunter worked at the FDA for many, many years and understands from the inside many of the problems with the agency that have been documented in many places, such as this Forbes article. He responded to my notion that the problem is simply the speed of the drug approval process and suggests that the issues go way deeper. What he says about the management of the agency, the culture of secrecy and the information obfuscation is well worth taking seriously:

Continue reading…

TECHNOLOGY/CONSUMERS: iHealthBuzz–new site for community messaging

There’s a relatively new site for patients called iHealthBuzz. It’s in the mix with the social networking sites that I keep the odd tabs on, and looks to try to take the disease specific list-servs up a level, although obviously its got a long way to go before it takes over from WebMD or YahooHealth. Is there a need for yet another health discussion venue? Judge for yourself but here’s founder Ellen’s take:

Our goal is to provide an anonymous (email address optional),friendly, useful, free, and trusted environment for those who are in search of health advice, support, and discussion. We are also nonprofit so we don’t try to sell anything at all. As we are a grassroots site that really has started out as a hobby for many of us who are interested in using the Internet to promote health. We created this site to help people. We want to make iHealthBuzz message boards better also. Any ideas will also help. We are here to provide a useful service.

Our goal: To build a busy virtual "cafe" or meeting place where people are connecting around health issues. We want them to share stories and help each other. We hope to create a buzz about health on the internet. Hence i-health-buzz as the name.

PHARMA: The FDA can only be saved by new leadership, by Blunter

There’s a new contributor today on THCB. Blunter worked at the FDA for many, many years and understands from the inside many of the problems with the agency that have been documented in many places, such as this Forbes article. He responded to my notion that the problem is simply the speed of the drug approval process and suggests that the issues go way deeper. What he says about the management of the agency, the culture of secrecy and the information obfuscation is well worth taking seriously:

You and those following the travails of the Food and Drug Administration (FDA) are on the wrong track if your views of the FDA problems are focused on the rate of drug approvals and postmarketing reports. When it is finally revealed that gutless FDA executives sold User Fees as a solution (politically naive) instead of addressing the real management and public policy issues, the crux of the present problem is clarified. There is nothing inherently wicked about user fees but the original and subsequent managers didn’t press the other fundiing and management needs

Within a year of the first user fee enactment (about 12 years ago), FDA was meeting the new deadlines without hiring or training any new MD’s. And a whole reserve of physicians receiving premium pay and scientists are secreted away in the FDA halls in "non-traditional" endeavors—mainly management—often beyond their expertise and capabilities. Examples abound where FDA top execs are ignorant of basic management responsibilities and skills in themselves and their subordinates, beginning at the Commissioner’s Office.

Look at EPA, NASA, NHTSA (and its potential model NTSB) and compare basic budgets to that of FDA which regulates vastly more of the GDP. What regulatee would object to paying a few million dollars to get a statutory deadline and perhaps as little as an additional week or two of sales. Just divide $1 or $8 billion by 365 to see the daily return. And the user fee concept is spreading to devices, animal drugs, food, cosmetics.

FDA seeks an analysis and report by the National Academy of Science or other prestigious group as a CYA tactic. There are lots of similar reports lying around comatose from past misadventures. However, the tactic permits FDA and other Administration folks to say it is inappropriate to discuss specifics of the latest debacle(s) before receipt of the blue ribbon report. Hence, we have FDA on autopilot until the dust and fervor clears and a new executive crew gets in that can say that "it wasn’t on our watch".

This present controversy and period may end up as little more than a footnoted historic anecdote in the next report of the next FDA crises a few years hence. The answer involves leadership with a new and skilled management team, to make the FDA a safe and effective environment for FDA scientists (among the best) to do their best work, create a transparency in the work FDA does, and cause the Congress to accept responsibility for funding a mission that has no peer in the Federal government. For sure, more funding which would be effectively applied will be needed but unlikely to do much good so long as the current management and culture is allowed to continue.

Presently, outsiders who want or need information on FDA decisions, and the like, are channeled through a Freedom of Information process which takes two years or more just to get around to the request, and then some more time and redactions to get the info out, if indeed any is released. It has been a long-standing, recognized management incompetence, worse in the Center for Drug Regulation than anywhere else (probably in the whole government). There is no transparency in what FDA is acting on, or ability for any one to compare in real time other similar data by scientists or others, who may have data of their own or seek to learn from the existing records FDA has passed upon. And when it comes to other than medical and scientific data, the likelihood of getting anything at all to look at several years down the road is even more remote.

And there has been no effort in the last near decade to do anything about it, like introduce management or data submission processes to make the system workable. Human clinical data and drug experience (appropriately clad to protect patient privacy) is a public resource, not a trade secret, for example. But you’d never know it at FDA.

Ironically, the FDA cannot be suspended on life support while a solution is devised or changes made. But there is hope. Under Jimmy Carter, the prevailing view was the Presidency had grown too complex and demanding for one person, and the talk was how to divide it. Then came along Ronald Reagan, The Bushes, and Clinton, and those discussions are footnotes on history. What can an effective and motivated leader do? A lot. Still don’t believe that FDA’s lack of leadership isnn’t just an issue but the issue. Look at the Forbes Magazine story and survey (mentioned on one of your earlier blogs) and see that the need for leadership at FDA outranks the closest competitor by three times or more.

PHARMA: Herbert on the legal protection measure for big pharma

In a NY Times op-ed piece called A Gift for Drug Makers, Bob Herbert writes that:

Tucked like a gleaming diamond in proposed legislation to curb malpractice lawsuits is a provision that would give an unconscionable degree of protection to firms responsible for drugs or medical devices that turn out to be harmful. The provision would go beyond caps on certain damages. It would actually prohibit punitive damages in cases in which the drug or medical device had received Food and Drug Administration approval. We know the F.D.A. has failed time and again to ensure that unsafe drugs are kept off the market. To provide blanket legal protection against punitive damages in such cases is both unwarranted and dangerous.

In fact the former head legal counsel at FDA Daniel Troy already pushed this policy–changing years of precedent at the FDA–by making it take the drug-makers side in legal cases. As California Health line reported when he finally quit late last year:

During his tenure, Troy worked in support of Bush administration efforts to block liability lawsuits against medical device manufacturers and drug makers. Troy argued in legal briefs that only FDA has the authority to determine when and how pharmaceutical companies should issue product warnings and that state court decisions could undermine the agency’s authority over product labels. FDA claimed in briefs that suits against FDA-approved products would “sabotage the agency’s authority”; critics called the agency’s position a “back-door approach to tort reform.”

While no one who’s been awake in the last 4 years can pretend to be surprised about how much the Bush administration is determined to gift the pharma industry, one suspects that someone in the corridors of power up and down the New Jersey turnpike must be having some doubts. As one of the few “moderates” clinging to the lonely position that pharma is indeed responsible for most of the good innovations in the health care system, and that a rational, reasonable and profitable pharma business is possible without the need to push for the current excesses on pricing and marketing misbehavior, I’ve been suggesting that in its own longer term interests pharma should look to compromise. If instead big pharma believes that it can make itself completely immune to the American legal system by simply getting what looks increasingly like a bought-and-paid-for FDA to sign off on its behavior, then the backlash that will be coming big pharma’s way when its protectors at either end of Pennsylvania avenue get booted out will not be pretty. And at some point they will be booted out.

Even Wall Street is generally comfortable that one of the risks of investing in pharmas is that damages will have to be paid out if bad things happen. Investors in Merck know that there’s a payment coming down the line for Vioxx and the stock reflects that. It’s stretching credulity to believe that pharma really needs this protection when no one else in America gets it, and it may well be time for wiser heads in New Jersey to suggest to their brethren that they take their snouts out of the trough less they miss the farmer coming up behind them with the butcher’s knife.

 

PHARMA: Quick blog trawl, with UPDATE

A quick trawl of the blogs this morning finds me catching up on an excellent article on the present and future of DTC from John Mack at the Pharma Marketing Blog, and discovering a new anti-pharma blog called Pharmopoly. Obviously take this with a pinch of salt but here is what the anti-globalization folks at Pharmopoly are saying, and note that drug companies are now moving squrely into their cross-hairs over patnets and reimportation as well as over thrid world imports:

Global Growth launched the Pharmopoly campaign in mid-2004 as a response to Big Pharma’s concerted worldwide lobbying for protectionist laws benefiting their profits at the expense of the sick and the poor. Last year saw an unprecedented, Big Pharma financed, multi-million dollar political lobbying and advertising effort. The lobbying was aimed at influencing the outcome of the U.S. elections in the direction of Big Pharma’s preferred candidates and creating a political climate favourable to their interests globally. That lobbying effort earned Big Pharma a huge legislative payback. High prices for drugs result from the ability of the pharmaceutical monopolies to manipulate patent laws, trade treaties and legislation in order to deter competition. Big Pharma also buys political influence with the specific aim of boosting tax-financed prescription payment subsidies on a gargantuan scale. Only the arms industry relies on taxpayers for its profits more than the pharmaceutical industry. In the developing world already high prices are further compounded by costly import tariffs and ‘luxury’ taxes on foreign manufactured pharmaceutical treatments.

So the sick in rich and poor nations alike face twin threats from revenue hungry governments and corporations seeking to exploit patient necessity – despite the dying having no choice but to obtain drugs at whatever price they can afford. The Pharmopoly campaign aims to expose the high costs to patients of protectionism, import tariffs and government granted patent monopolies.

The Pharmopoly campaign’s three objectives are; firstly to promote the tariff-free trade of drugs in the developing world, secondly defend the parallel trading of pharmaceuticals in the rich industrialised nations. Thirdly, to lobby legislators for patient-friendly duration limits on government granted monopolies which will reduce the long-term costs of drugs for patients. We are campaigning for safe, free and fair trade in drugs worldwide.

UPDATE: Paul Staines from Pharmopoly writes: Thanks for referencing our Pharmopoly blog, but just one point; we’re not “anti-globalization folks”, we are pro-free trade, pro-free enterprise. We’re not against Pharma making a profit. We’re against the abuse of monopoly powers granted by patents and the political influence Pharma has over politicians, particularly in the United States. Big Pharma is arguably against free trade and for protectionism whilst deriving its profits increasingly from socialised medicine. Third world governments are also in our “cross-hairs” – for putting excessively high tariffs and luxury taxes on imported medicines. We’re in favour of free trade in pharmaceuticals across borders.

POLICY: Social Security “reform” as a health care issue

Ever since Bush claimed his "mandate" (meaning he actually got more votes than the other guy in this election), we’ve been hearing a little too much about social security reform. As San Francisco standalone journalist Chris Nolan points out in her blog Politics from Left to Right, the real "reform" in question is the de-linking of social security payments from wages to inflation, which will eventually reduce the value of the benefit. The privitization thing is just a sop to Wall Street.

Turns out that the Brits did this delinking a while ago and then privatized a segment of their state pensions by paying such huge bribes in tax incentives that it actually cost the government money. Then because interest rates dropped well below the levels at which the private plans had forecast their investment returns in the 1980s, they don’t have enough to pay the pensions at the rate that those few who stayed behind in the government plan (called SERPS) are getting. Not a pretty picture, and one well described in this article from the American Prospect, which though it appears in a lefty journal is written by a Financial Times reporter.

Why am I writing about social security in a health care blog? Good question. My primary focus on health insurance is that it ought to be a form of social insurance because the payments required for it are very uneven (some people are sick–others are not). Theoretically you might be able to design a largely private pension/savings system that might actually work and not compound social inequality. We already have private pensions from both employers and 401K and other plans for individuals that provide some mechanisms for savings and retirement. So there is the basis for a mixed public-private system–not unlike in health care.

Furthermore the separation of social security from general taxation is mostly an accounting sham which also allows the those earning substantially more than $87,000 a year to pay a proportionately lower share of their income in tax than those earning less–something that is clearly regressive but explained away by the concept that it’s a savings plan. So I’m not against reform per se, especially if the tax inequity was changed.

However, Paul Krugman in his latest NY Times op-ed lays out clearly that the attempt by the Bush Administration to privitize social security is going to cost a whole lot of money while these individual accounts are set up. And that lack of money is going to add to the deficit, which in the end will require less money to be spent on other things as we instead spend money servicing the national debt. What are those other things? Well, apart from servicing the debt Federal and state governments really only spend money on three things–defense, education and health care. Guess which one of these will get cut first?Furthermore, the diversion of tax revenues into private accounts leaving a shortfall in the overall amount needed for keeping current benefits in social security has an eerie parallel in the diversion of money from the health insurance risk pool to HSA accounts. And in one more parallel, I have an HSA account with less than $2,000, and I pay a fee of $20 a year to manage it. Not a huge fee by any means, but assuming that it’s related to costs, I suspect that’s a much larger cost than what the government pays to manage social security accounts. In fact the management fees on British private pension accounts were so high the industry was forced into a huge settlement with its customers.

So as we head towards a self-funded, individual insurance funding future, there must be strong questions asked about the impact on health care, and society’s ability to pay for what’s needed for its less wealthy citizens.

TECHNOLOGY/CONSUMERS: iHealthBuzz–new site for community messaging

There’s a relatively new site for patients called iHealthBuzz. It’s in the mix with the social networking sites that I keep the odd tabs on, and looks to try to take the disease specific list-servs up a level, although obviously its got a long way to go before it takes over from WebMD or YahooHealth. Is there a need for yet another health discussion venue? Judge for yourself but here’s founder Ellen’s take:

Our goal is to provide an anonymous (email address optional),friendly, useful, free, and trusted environment for those who are in search of health advice, support, and discussion. We are also nonprofit so we don’t try to sell anything at all. As we are a grassroots site that really has started out as a hobby for many of us who are interested in using the Internet to promote health. We created this site to help people. We want to make iHealthBuzz message boards better also. Any ideas will also help. We are here to provide a useful service.

Our goal: To build a busy virtual "cafe" or meeting place where people are connecting around health issues. We want them to share stories and help each other. We hope to create a buzz about health on the internet. Hence i-health-buzz as the name.

POLICY: Social Security “reform” as a health care issue

Ever since Bush claimed his "mandate" (meaning he actually got more votes than the other guy in this election), we’ve been hearing a little too much about social security reform. As San Francisco standalone journalist Chris Nolan points out in her blog Politics from Left to Right, the real "reform" in question is the de-linking of social security payments from wages to inflation, which will eventually reduce the value of the benefit. The privitization thing is just a sop to Wall Street.

Turns out that the Brits did this delinking a while ago and then privatized a segment of their state pensions by paying such huge bribes in tax incentives that it actually cost the government money. Then because interest rates dropped well below the levels at which the private plans had forecast their investment returns in the 1980s, they don’t have enough to pay the pensions at the rate that those few who stayed behind in the government plan (called SERPS) are getting. Not a pretty picture, and one well described in this article from the American Prospect, which though it appears in a lefty journal is written by a Financial Times reporter.

Why am I writing about social security in a health care blog? Good question. My primary focus on health insurance is that it ought to be a form of social insurance because the payments required for it are very uneven (some people are sick–others are not). Theoretically you might be able to design a largely private pension/savings system that might actually work and not compound social inequality. We already have private pensions from both employers and 401K and other plans for individuals that provide some mechanisms for savings and retirement. So there is the basis for a mixed public-private system–not unlike in health care.

Furthermore the separation of social security from general taxation is mostly an accounting sham which also allows the those earning substantially more than $87,000 a year to pay a proportionately lower share of their income in tax than those earning less–something that is clearly regressive but explained away by the concept that it’s a savings plan. So I’m not against reform per se, especially if the tax inequity was changed.

However, Paul Krugman in his latest NY Times op-ed lays out clearly that the attempt by the Bush Administration to privitize social security is going to cost a whole lot of money while these individual accounts are set up. And that lack of money is going to add to the deficit, which in the end will require less money to be spent on other things as we instead spend money servicing the national debt. What are those other things? Well, apart from servicing the debt Federal and state governments really only spend money on three things–defense, education and health care. Guess which one of these will get cut first.

Furthermore, the diversion of tax revenues into private accounts leaving a shortfall in the overall amount needed for keeping current benefits in social security has an eerie parallel in the diversion of money from the health insurance risk pool to HSA accounts. And in one more parallel, I have an HSA account with less than $2,000, and I pay a fee of $20 a year to manage it. Not a huge fee by any means, but assuming that it’s related to costs, I suspect that’s a much larger cost than what the government pays to manage social security accounts. In fact the management fees on British private pension accounts were so high the industry was forced into a huge settlement with its customers.

So as we head towards a self-funded, individual insurance funding future, there must be strong questions asked about the impact on health care, and society’s ability to pay for what’s needed for its less wealthy citizens.

POLICY/PHARMA/OTHER: Places to go find interesting stuff

Apologies to faithful THCB readers. The crunch continues (yesterday was the first day I’ve skipped in quite a while) and I can’t spend much time today writing up the blog, but there are lots of interesting pieces for me to point you towards. So please go take a look at these.

  • There is a great interview from Bob Galvin at GE with Don Berwick, the doyen of healthcare quality improvement in Health Affairs. You owe it to yourself to take the 10 minutes to read the whole thing, but as the abstract says "Donald Berwick, founder of the Institute for Healthcare Improvement, supports performance incentives for hospitals and health systems. But expresses skepticism about the value of pay-for-performance schemes for individual doctors and nurses and emphatically condemns increased patient cost sharing as an appropriate tool for increasing the efficiency of the health care system." Berwick thinks that money isn’t enough and that a national move to transparency and individual accountability will inspire the correct response from ego-driven providers. Fascinating stuff, most of which rings true for me.
  • On the pharma side, the NY Times reports that 10 big pharmas are joining the Together Rx Program and are adding their prescription drugs at low cost to the generics already in the program. Methinks all that criticism is working. Meanwhile Forbes has an excellent pair of articles–one on reforming the FDA, particularly pointing out its underfunding in the wake of the explosion of new pharma products out there, and one an interview with Marcia Angell in which she predicts that big pharma will become simply marketing machines (which is what some of us think they already are!).
  • The token moderate Democrat on the NY Times Op-Ed page, Nicholas Kristoff, decries the state of health care for the poor noting that we are now below Cuba in terms of infant mortality. There are some counter arguments to this (in terms of our efforts to keep low weight babies alive that don’t get counted as full term deliveries elsewhere), but overall it is a condemnation of the outreach the care system does for poor mothers. Kristoff’s article Health Care? Ask Cuba notes that "In every year since 1958, America’s infant mortality rate improved, or at least held steady. But in 2002, it got worse: 7 babies died for each thousand live births, while that rate was 6.8 deaths the year before." It’s not pleasant reading.
  • Finally, the latest spending numbers are out — and getting reported more quickly these days. It used to be that you had to wait for a couple of years but CMS released the new numbers for 2003 yesterday, only 12 months after the year ended. And although overall growth moderated a little to 7%, it’s still in the zone of where it’s been for several years now. Here’s the full CMS article in Health Affairs and here’s the Boston Herald‘s take on it. In days of yore I got pretty buried in those numbers as part of a 10 Year Forecast I co-authored back in the late 1990s. The way they are put together is interesting, and what they say is also interesting, so I’ll add a deeper explanation to my to-write list.

For now happy reading and I’ll see you tomorrow.

TECHNOLOGY: iPod as the new must-have for radiologists, with UPDATE

I must go on record as not getting the iPod. Why you would want to lock into a proprietary format when there are a gazillion (free) MP3s and MP3 players out there–and pay over the odds for the privilege–is beyond me. But then again all the music I like was made by people who are now dead and the last DVD I bought was of a concert that happened in 1986 (which I went to!). So I guess I’m not Apple’s target market.

However in an article that reminds me of the piece I did on torrents last week, apparently another non-target market of Apple’s is using the iPod. Yup. radiologists are moving their digital films from place to place, using the iPod as an expensive portable hard drive. Yet more instances of unusual technology crossovers in healthcare.

UPDATE: Graham Walker reminds me that it’s just Apple’s iTunes that’s proprietary (and where you have to pay money for the music): The ipod plays mp3s, as well as Apple’s proprietary format–all the other music players also support MP3, as well as another proprietary format (Real, Windows Media, etc.) It’s got great usability, works with both Macs and PCs, and you can carry your entire library of music on it.

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