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Understanding the True Costs of ACOs and Medical Homes

flying cadeuciiOne of the privileges of being a managed care advocate is that you never have to discuss the unpleasant question of how much your proposed intervention will cost. Whether your proposed intervention is HMOs, report cards, pay-for-performance, ACOs, “medical homes,” or electronic medical records, you never have to estimate what your bright idea will cost. With this privilege comes another: You are free to criticize doctors and hospitals for being “cost unconscious.”

Over the last decade, CMS has become a proponent of this double standard – cost consciousness for doctors and hospitals and cost unconsciousness for the health policy illuminati
. Beginning with the Physician Group Practice Demonstration, which ran from 2005 to 2010, and running through today’s ACO and “medical home” demos, CMS has assiduously avoided reporting the costs that clinics and hospitals incur to participate in these demos. Jeff Goldsmith and Nathan
Kaufman  have described CMS’s behavior as “sunny obliviousness to provider economics.” [1]Continue reading…

On THCB

Will Federal Court Back Rules Treating Health Insurance as a Utility, Not a Luxury?

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On June 14, 2016 a Federal Court ruled that broadband internet is as essential to American as phones, electricity, water and sewer systems and should be available to all Americans as a utility, rather than a luxury that doesn’t need close government supervision.

In the United States, public utilities are often natural monopolies because the infrastructure required producing and delivering a product such as electricity or water is very expensive to build and maintain.  As a result, they are often government monopolies, or if privately owned, the sectors are specially regulated by a public utilities commission which severely limits the profits for the private utility company and the associated costs passed on to consumers of that utility.

There is nothing more essential to the lives and well being of Americans than health insurance and therefore healthcare is the ultimate utility.

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Time to Put a Stop to Workplace Bullying

Screen Shot 2016-06-20 at 12.44.35 PMCivility is a system value that improves safety in health care settings. The link between civility, workplace safety and patient care is not a new concept. The 2004 Institute of Medicine report, “Keeping Patients Safe: Transforming the Work Environment of Nurses,” emphasizes the importance of the work environment in which nurses provide care.1 Workplace incivility that is expressed as bullying behavior is at epidemic levels. A recent Occupational Safety and Health Administration (OSHA) report on workplace violence in health care highlights the magnitude of the problem: while 21 percent of registered nurses and nursing students reported being physically assaulted, over 50 percent were verbally abused (a category that included bullying) in a 12-month period. In addition, 12 percent of emergency nurses experienced physical violence, and 59 percent experienced verbal abuse during a seven-day period.2

Workplace bullying (also referred to as lateral or horizontal violence) is repeated, health-harming mistreatment of one or more persons (the targets) by one or more perpetrators.3 Bullying is abusive conduct that takes one or more of the following forms:3

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Does Arnold Schwarzenegger Deserve Better Care Than Our Veterans Do?

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When Arnold Schwarzenegger was governor, he decided that you and I don’t need to have physicians in charge of our anesthesia care, and he signed a letter exempting California from that federal requirement. Luckily most California hospitals didn’t agree, and they ignored his decision.

When he needed open-heart surgery to replace a failing heart valve, though, Governor Schwarzenegger saw things differently. He chose Steven Haddy, MD, the chief of cardiovascular anesthesiology at Keck Medicine of USC, to administer his anesthesia.

Now some people in the federal government have decided that veterans in VA hospitals all across the US should not have the same right the governor had—to choose to have a physician in charge of their anesthesia care.

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The Patient Data Positioning System – A GPS for Patient Data

flying cadeuciiFirst of all I have to admit that I am a convert and not an original believer in the Data Lake and late binding approaches to data analytics. I do not think it is my fault or at least I have a defense of sorts. I grew up in a world where my entrepreneurial heroes were people like Bill Gates, Larry Ellison, and Steve Jobs and it seemed that structured systems like operating systems that allowed many developers to work against a common standard were the way to go.

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The Black List Part II (Features Which Should Be In Every EHR, But For Some Reason Aren’t)

I have been involved in HIT for 2.5 decades as a designer and primary programmer of a commercial EMR which I developed for my practice and was sold from 2000 until 2015. As a result of that experience, and 15 years of interactions with the physicians who used my EMR, I developed some insights about which features have real utility to the practicing physician and how to design an EMR so that it is efficient and intuitively obvious how to use the EMR. I have since learned that many of those useful features and design considerations have not been incorporated into all EMRs.

In my previous posting on The Health Care Blog , I discussed some EMR features which would be expected to appear in the Progress Notes and Labs section of the EMR. In this posting, I will discuss some other useful features/EMR insights which, I hope, will eventually be incorporated into all EMRs.

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VA and CMS are Leading From Behind

HIMSS Voter ID_Adrian-GropperInstead of empowering patients, VA and CMS are building-in rent-seeking intermediaries like NATE and DirectTrust based on obsolete security protocols and effectively legitimizing data blocking practices.

Four years ago Stage 2 was still open on the table and I wrote A Fork in the Road to Meaningful Use. It foretold pretty accurately the information blocking characterized by VP Biden recently as: “Taxpayers did not spend $30 Billion to create five data silos.” I was certainly not alone. Independent expert panels like JASON and PCAST saw it coming too. Regulatory capture might explain, but not excuse, the actions of federal regulators around Stage 2 but it does not explain why our federal health system, VA and CMS, continues to promote policies that enable information blocking today.

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An Epidemic of Septicemia?

While prevention efforts have largely been focused on chronic disease, spurred in part by the Centers for Disease Control and Prevention’s (CDC) insistence that 86% of healthcare dollars are spent on patients with chronic illness, it turns out that the largest, fastest-growing and possibly most preventable diagnosis is arguably the most acute diagnosis of all: septicemia.

Septicemia is any persistent systemic blood-borne bacterial infection, generally caused by contamination from an invasion of the bloodstream by an outside pathogen, and generally not easily addressed with antibiotics. Its many complications include death, 13% of the time. (There is some confusion about the various definitions of and distinctions among sepsis, septicemia and septic shock.)

The Statistics

The statistics below are drawn from the Agency for Health Research and Quality’s Healthcare Cost and Utilization Project (HCUP) database, and as such are easily replicated by entering ICD-9 “038.9” as “principal diagnosis.” The most recent year available, 2013, is the source of the screenshots.

According to the most recent statistic available, septicemia is not only #1 in total spending, but it’s also almost twice as costly as the next-highest ICD9.

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In Silico Medicine

flying cadeuciiCould computers develop the drugs of the future?  The short answer: probably, but not yet.

Computer simulation is a cornerstone in the development and optimization of “mission-critical” elements in industries ranging from aerospace to finance.  Even the smooth functioning of nuclear reactors – where failure would be catastrophic – relies on a computational model called a Virtual Reactor, which allows scientists and engineers to observing the reactor’s real-time response to operating conditions.

The analogous model in medicine – a “virtual human” – doesn’t yet exist.  We still rely on living, breathing animals and humans to test drugs and devices.  Discoveries are made largely by trial and error.  But the age-old approach that led to the discovery of antibiotics, cardiac catheterization, and organ transplantation is becoming increasingly unsustainable.

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