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Repealing and Replacing the ACA: A Whole New Ball Game. Same Problems Though.

I’ll dive right in, with the stipulation that this blog is initial reaction in a very fluid, unprecedented and soon-to-be even-more-intense political environment.  Fasten your seat belts!      

The ACA.   Replace is the critical word in “repeal and replace.”  Consensus is already emerging that Trump and the Republicans will indeed repeal the ACA in early 2017, via the reconciliation process Congress used earlier this year.  That resulted in the Senate’s first an only full ACA repeal vote.  Obama vetoed the bill, of course.   But Republicans demonstrated the do-ability of the reconciliation process.   Lacking 60 votes in the Senate, they’ll very likely try repeal again that way.Continue reading…

Dancing on the Grave of Obamacare: Questions

I hate to interrupt the festivities, but I have a few questions. There are one or two little unknowns here. The answers to these questions are matters of life and death to many in the industry, literal life and death to many thousands of patients, organizational life and death to thousands of companies, hospitals and systems. 

Tuesday’s extraordinary events obviously present an enormous challenge for anyone who wants to think about the future of healthcare. The challenge is far more than simply trying to imagine the healthcare industry without Obamacare, or under whatever Trumpcare will turn out to be. A much more powerful effect will be come into play far earlier: the uncertainty over that future will have reshape the industry before we even get to the actual “repeal and replace” part.

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An Early Prognosis: What Will Become of Healthcare IT in the Age of Trump?

In the United States, it’s the Day After. The future of American policy – from immigration to foreign trade to national defense – is full of kinetic uncertainty. One thing is certain: that Donald J. Trump – who has brought something very different from palpable policy proposals to the American electorate – is President Elect of the United States.

There is no shortage of morning-after polemic: some are crying, some are celebrating, and others still are sleeping off the night. Whatever one’s political belief, our industry is perhaps at the center of the new sea of trumpian uncertainty. Indeed, the future of healthcare in the United States, and particularly the role of technology in healthcare, is neither bright nor grim.  Unlike last night, it’s too early to call.

What we know about Trump and healthcare is both frustratingly limited but also widely telling. Trump has summarized his post-Obamacare vision as a system that boasts “lots of plans” that will function amorphously across state lines, toppling a partly imagined barrier against competition among plans in different states. We know he views the Affordable Care Act as a “disaster” and, like other drivers of federal spending, sees dealing with corruption, overspending, and “bad deals” at the core of the still-unknown solution to healthcare’s many woes.

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Post-Election Analysis: Making Healthcare “Great Again”

The election results are in and Donald Trump will be the 45th president of the United States. His appeal to “Make America Great Again” resonated across the heartland sparking an unprecedented political upset that surprised even the most astute prognosticators and pundits.

When he takes office in January, he’ll face enormous challenges domestically and globally. Healthcare will be at the top of the list: he promised to “Repeal and Replace” the Affordable Care Act, and he pledged changes that strengthen the system in his campaign’s seven-point plan. In this effort, his team will face harsh realities:

  • Containing health cost will to be the dominant issue.  Total healthcare spending will increase 6% annually for the next decade. Utilization is up. Demand is increasing and traditional reimbursement is not keeping pace with underlying costs. That’s not sustainable. Something’s got to give.
  • The fundamental structure of the health system is shifting. Healthcare is no longer a cottage industry. Mega deals across the board are pending: the Anthem-Cigna, Aetna-Humana, Dignity-CHI and more. And in most communities, half of the physicians are employed by hospitals that are affiliated with multi-hospital systems. The health system’s future will play out against new ways of competing.
  • Alternative payment programs (APMs) are changing incentives for providers. With MACRA payments to physicians and mandated bundled payments for heart failure, coronary artery surgery and joint replacements for hospitals coming on line next year, providers are anxious. What’s next? What’s their future?
  • Competition from non-traditional entrants is increasing. Investors are flocking to start-ups that challenge the status quo in healthcare. Their ranks include retail clinics, micro-hospitals, telemedicine, urgent-care centers, disposables, smart implantables, hybrid insurance models and others that challenge stakeholders to innovate faster and more effectively. It’s a huge industry that’s historically made its own rules and kept outsiders out. That’s changing.
  • And the public is divided about the Affordable Care Act: half believe it a necessary impetus for expanding insurance coverage and lower costs, and half feel it’s an over-reach by federal bureaucrats that want a government-run health system.
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No, I Didn’t Expect That Either.
What’s Next?

As a Democrat, I can only hope this is a Dewey defeats Truman moment, but at 2.00am ET on Nov 9, President Trump with a Republican House and a open Supreme Court seat seems to be our new reality. For the health care establishment, this is a bombshell. It’s been easy for Congressional Republicans to vote to repeal the ACA when they knew Obama would veto it. But what happens next when Trump is happy to sign the “repeal”?

It’s hard to figure out what’s there in terms of putting together to “replace” either in the Congressional Republicans or in what passes for policy in what passes for the Trump camp. As Margalit Gur-Aire said on THCB recently other than one speech with some stale talking points about block grants for Medicaid and selling insurance across state lines, Trump seems to have no ideas about health care. (To be fair he doesn’t seem to have any ideas about anything, or he claims they’re a secret).

Then we have the issue of his relationship with Congress. Now he’s President he may declare a truce, but then again he might decide to tweet into oblivion Paul Ryan and the many others who wouldn’t support him. And he might of course self-immolate as he tries to manage his business, his relationship with Russia and his soon to be launched TV network–while actually having to be President.

But if he’s going to end Obamacare, Trump is going to have to worry about two things. First, he has said that he wants to repeal it but is going to make sure everyone can buy health insurance, even if they have preconditions. When the middle aged white working class who voted for Trump discover that their Medicaid and their health insurance goes away, and that insurers wont sell them insurance if they’re not a good risk, they might be unhappy.

Second, the other people who are going to be unhappy are the health care industry stakeholders. Health care is a series of complex legislative and market interactions. As a consequence of the ACA, most health insurers, providers and even pharma or device companies have made huge changes to their business strategy. Those business strategies and investment are now six years old. Like Wall Street and corporate America, Trump is going to make the health care establishment deeply uncomfortable. The question is, once big pharma, insurers and providers lean on the Administration, will anything actually change, or will we see the route towards value-based care continue?

Not only that, but the sea-change that is just starting in the shift from FFS to value-based payments from Medicare & CMS is underway because the country can’t afford continued health care cost growth. That remains the same. Eventually that reality will impinge even on a Trump administration.

So what happens next? Well it’s amateur hour and we’ve all failed to predict it thus far, so it’ll be tough to do it now. But health care will be a sideshow.

Oh, and time to repeal the frigging electoral college.

Death and Readmissions

Eugene’s wife is on the phone.  She has been taking care of Eugene for 41 years.  I supposedly take care of his heart, weakened by two prior heart attacks.  I say supposedly because his wife does all the heavy lifting.  She makes sure he takes his medications when he should.  She watches his weight every day and occasionally administers an extra dose of diuretic when his weight climbs more than a few pounds in a day.  And perhaps most importantly, she calls me when Eugene’s in the hospital and things seem wrong to her.  This is one of those phone calls.  They were in the ER, Eugene hadn’t been responding to his diuretic as he normally does, and his breathing seemed more labored to her.  The ER physician wanted to send them home – she was hoping I would weigh in.  Not surprisingly, she was right, Eugene needed to come into the hospital.  I used to be surprised when the ER wouldn’t call me for complex cardiac patient having an acute cardiac problem.  Not any more.

There is a clear culture shift that is obvious to those who have spent any time in the ER over the past ten years.  Low risk patients used to be managed and discharged from the ER, and higher risk patients were quickly admitted to the hospital for management by specialists.  This used to be a source of tremendous friction with the ER in my younger years, as I would try to explain to ER physicians that every single chest pain in a patient with known coronary disease did not deserve admission.  I seldom have this conversation with the ER anymore.  What changed?

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Prescription For Patient Safety With Health IT: More Time With the Patient, and Less Distraction

Recent government incentives have gone a long way toward bringing digitization to healthcare, with  particular benefits seen in the PACS/ digital radiology areas and digitally archiving data for better access.  A 2016 AMA survey (1) has shown that the biggest desires for physicians from digital health are increasing patient safety and improving work efficiency.

I would like to propose that the most important aspects of patient safety are as follows:

  • clinical workers (that is, doctors, nurses and other members of the caregiving team) need to maximize their time ‘at the bedside’
  • clinical workers need to maximize their communication and interaction within the patient care team to optimize patient care
  • clinical workers need to minimize distractions from the two activities above.

Health IT systems need a complete overhaul, guided by these principles, in order to optimize patient safety with its use. One way to look at health IT from a clinical perspective is to break it down into 2 pieces: data aggregation (that is, the ‘anytime, anywhere access’ to digitized health information) and data entry: the time and distraction from patient care that data entry tasks require for clinical workers.  The big wins so far with health IT has been with the former, the big problems with the latter.

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Trump and the “Public Option”

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Jacob Hacker, the godfather of the “public option,” and Donald Trump have much in common. They both think the solution to high health care costs is more competition within the insurance industry. They both acknowledge that the insurance industry is highly concentrated, and yet for reasons they don’t disclose they both think it’s possible for new insurance companies to break into such a highly concentrated industry. The only difference between their theories of competition is that Trump wants insurance companies to create insurance companies from scratch, while Hacker wants the government to create insurance companies from scratch.

In my last post , I criticized Hacker for not explaining how the “public option” (PO) will come into existence. All Hacker can say is the PO will be “like Medicare.” Hacker and other PO proponents don’t tell us how the PO will become “like Medicare.” We are simply supposed to believe the PO will leap into existence and, when it does, it will be big like Medicare and enjoy Medicare’s low overhead and payment rates. [1]

Trump’s “explanation” is just as empty. He simply asserts that insurance companies in one state will open shop in other states if the regulations in some states are reduced. [2] Here is how Trump “explained” his proposal during the second presidential debate  on October 19: “We have to get rid of the lines around the state, artificial lines, where we stop insurance companies from coming in and competing, because they want – and President Obama and whoever was working on it – they want to leave those lines, because that gives the insurance companies essentially monopolies….”

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An Ad Page In the NEJM and the Future of Cancer Care

I am not sure how many docs still do this, but I still read the actual hard copy of my New England Journal of Medicine, and that means I flip past ad pages with smiling grandfathers playing with grandchildren thanks to supercalifragilistic products on my way to scholarly papers with tables and figures. But this time, I stopped in puzzlement when I came across an ad from Intermountain.

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Intermountain is a health system based in Utah, highly respected for its sound approach to quality and cost control[1], but not broadly well known for cancer care in the way of centers like Dana Farber or Sloan Kettering. Digging further by going to the website uncovers the actual offering which is a streamlined 5 step process:

  1. Send tumor sample
  2. Deep sequencing of 96 key cancer genes
  3. Genomic data analysis
  4. Tumor board makes a treatment recommendation
  5. Facilitated procurement of the relevant cancer drugs

Turn-around time is about two weeks, fast enough to wait for the information before starting a regimen.

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Dear (Quite Possibly) President Trump

Even the most ardent of Obamacare supporters are now forced to admit that the law has hit a rough patch this year. The opposition to Obamacare is positively gloating with self-congratulatory “I told you so” assessments of the supposedly dire situation. Defenders of the cause are counteracting with the customary deluge of charts and graphs to prove unequivocally that Obamacare is actually turning out better than they expected. Integrity and honesty being in short supply on both sides of this quandary, chances are excellent that no matter what happens next, the American people will lose big time, unless….

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