The Health Care Blog – Page 398 – Everything you always wanted to know about the Health Care system. But were afraid to ask.

Above the Fold

Crowdfunding: Careful What you Wish For

Nov 2, 2015• 1

By DAVID HARLOW

The SEC has finally finalized its crowdfunding rule (presser) under the JOBS Act. The health innovation crowdfunding crowd has been waiting for these rules for quite some time, as has the rest of the crowdfunding fan club. (It’s only taken three and a half years.)

So, was it worth the wait?

The crowdfunding rule (full text) sets the stage for broader participation in early-stage investing and may empower crowdfunding platforms (“intermediaries,” in SEC-speak) to compete with angel funding platforms servicing “accredited investors” (SEC-speak for high net worth folks who can afford to lose their entire investment in a startup). It is a democratizing move consistent with the ethos of the internet and digital innovation.

Let’s look at some of the particulars and then think about whether this is a good thing for startup companies (“issuers”) that might want to sell securities rather than their products or promotional T-shirts, and for intermediaries — such as Kickstartr etc. — that might want to have a role in matchmaking individual investors with issuers. (Kickstartr itself has reportedly said it’s not interested in going down this path; IndieGoGo is interested, though.)

The Surprising Story of The Original Luddite

Nov 2, 2015• 2

By LEONARD D’AVOLIO

We all know Luddites. They proudly pronounce their rejection of Facebook and feign disgust about how they finally “broke down” and bought that awesome Motorola Razor they still carry. Maybe you are a Luddite or pretend to be because you can’t make Gmail work on your phone. So who was this Ludd and why is he the timeless symbol of rage against the machine?

My guess was that the original Ludd was probably some horse breeder that bet the farm against the future of the automobile. As it turns out, the Ludd story is not at all what you’d expect.

Legend has it that in 1779, a fed up British factory worker named Ned Ludd took his aggression out against the knitting machines he was employed to operate, smashing two of them to pieces with a hammer. In this one brazen act of defiance, he became the symbol of man’s rebellion against automation, technological displacement, the death of artisanship, and the worsening conditions of the working class.

Not long after, as the Industrial Revolution gained steam (terrible, I know) young Ned became the poster boy, quite literally, for factory worker uprisings each of which was punctuated with the destruction of machines.

The Luddites met in secret and their operations ranged from sabotage to all out warfare, including a battle with the British Army. They became so fearsome that industrialists had secret chambers constructed in their factories in which they could hide should the Luddites come knocking. Fearing that the name “Ned” lacked gravitas, his PR team apparently took to branding him King Ludd or General Ludd.

The End of the NHS?

Oct 30, 2015• 12

By SAURABH JHA, MD

Britain’s health secretary wants to uncharm his way to a revolution.

To galvanize support for a seven-day National Health Service (NHS), which the NHS was before Jeremy Hunt’s radical plans, and still is, he asserted that thousands die because there is a shortage of senior doctors during weekends. This is an expedient interpretation of a study which showed that mortality was higher in patients admitted on weekends. Hunt ignored the fact that patients admitted on Friday night are actually sicker than those admitted on Wednesday morning.

When logos failed, and after briefly dabbling with pathos, Hunt resorted to ethos. He insinuated that doctors were clock watchers (“service that cranks up on a Monday morning and starts to wind down after lunch on a Friday”). This led to a hashtag on Twitter: #ImInWorkJeremy.

Hunt wants to modernize the NHS. Leaving aside whether modernization is modernization, post-modernization or pre-post-pre-modernization, presumably this endeavor benefits from having doctors on board. How has Hunt enticed the doctors? He prophesized that GP’s diagnostic skills could be obsolete in twenty years. He wanted to replace doctor’s clinical judgment with computers, sooner rather than later (he’d just returned from Silicon Valley).

How Doctors Became Subcontractors

Oct 30, 2015• 12

By MICHEL ACCAD, MD

In our healthcare system, the “middleman” is not who you think

During my recent podcast interview with Jeff Deist, president of the Ludwig von Mises Institute, I remarked that third-party payers are not, in fact, intermediaries between doctors and patients. In reality, it is the physician who has become a “middleman” in the healthcare transaction or, as I argued, a subcontractor to the insurer.

Important as it is, this reality is not well recognized—not even by physicians—because when doctors took on this “role” in the late 1980’s, the process by which healthcare business was conducted did not seem to change in any visible way.

When health insurance was first introduced on a large scale in the 1940’s and 1950’s, a patient would see a doctor and pay the bill directly. The doctor would issue a receipt and the patient would submit the receipt to the insurance company for reimbursement. The insurance company was, in that sense, a financial intermediary since it would enable the patient to afford the care and see the doctor.

Overtime, as the cost of medical care began to rise rapidly, a practice evolved whereby physicians would take it upon themselves to submit the claim to the insurance company and would not require patients to pay upfront.

Uber’s Surge Pricing May not Lead to a Surge In Drivers

Oct 30, 2015• 4

By LAUREN KIRCHNER

Uber has long stirred controversy and consternation over the higher “surge” prices it charges at peak times. The company has always said the higher prices actually help passengers by encouraging more drivers to get on the road. But computer scientists from Northeastern University have found that higher prices don’t necessarily result in more drivers.

Researchers Le Chen, Alan Mislove and Christo Wilson created 43 new Uber accounts and virtually hailed cars over four weeks from fixed points throughout San Francisco and Manhattan. They found that many drivers actually leave surge areas in anticipation of fewer people ordering rides.

“What happens during a surge is, it just kills demand,” Wilson told ProPublica. “So the drivers actually drive away from the surge.”

When contacted this week, Uber said that their own analysis has shown that surge pricing does, in fact, attract more drivers to surge areas. “Contrary to the findings in this report — which is based on extremely limited, public data — we’ve seen this work in practice day in day out, in cities all around the world,” Uber spokeswoman Molly Spaeth wrote in an email.

The researchers also uncovered a few tips about how to avoid surge prices. They found that changing your location, even by a few hundred feet, can influence the price you get. They also discovered that you can often get back to normal fare levels by waiting as few as five minutes.

“The vast majority of surges are short-lived, which suggests that savvy Uber passengers should ‘wait-out’ surges rather than pay higher prices,” the authors wrote in a new study they are presenting at a conference in Tokyo on Friday.

Practice Data Points

Oct 29, 2015

Chelsea Clinton & US Surgeon General Vivek H. Murthy at Health 2.0 Fall Conference 2015

Oct 29, 2015

By VANESSA MASON

Chelsea Clinton got the 9th Annual Fall Conference on the right foot sharing the numerous successes of the Clinton Foundation including improving school lunches, providing antiretroviral therapy to millions of people living with HIV worldwide, and advancing women’s health.

ACA Open Enrollment Round 3: The Going Gets Tougher

Oct 29, 2015• 6

By STEVE FINDLAY

The third ACA health insurance exchange open enrollment period begins Nov. 1, and things look iffy. The Obama administration this month reduced the estimate of new enrollees for 2016—possibly to lower expectations but also because signs point to the difficulty of luring the remaining uninsured into the fold over the next few years.

It’s time for some fresh strategies to ramp up enrollment and get where we need to go. At the end of this piece I offer some suggestions and invite yours. (This article assumes the ACA will be in place over the next five years even if a Republican becomes president in 2017.)

Health insurance numbers can be confusing (and hyped out of context from both sides of the political aisle), so here’s a quick rundown of the current situation and the Obama Administration’s new projections.

The current U.S. population is 326 million. According to the Census Bureau’s latest authoritative annual report (released in Sept) 10.4% of the population, or 33 million people, were uninsured for the entire year in 2014. That’s down sharply from 13.3%, or 41.8 million people, in 2013. Thus, as of the end of 2014, there were 8.8 million fewer uninsured people, due primarily to Obamacare.

Who Is to Blame for Health Care’s Problems? A Tale of Two Narratives

Oct 28, 2015• 28

By JEFF GOLDSMITH

What to do about the seemingly inexorable rise in health spending has been the central health policy challenge for two generations of health economists and policymakers. In 1965, before Medicare and Medicaid, health spending was about 5.8 percent of GDP. In 2013, it was nearly 18 percent. And GDPquadrupled during this same period.

Over the past 30 years, there are been two warring political narratives explaining health spending growth, with two different culprits and indicated remedies. At their cores, these narratives blame the main actors in the health care drama—patients and physicians—for rising costs.

The Conservative Narrative: The Patient As Culprit

The conservative thesis holds that the demand for health care is unlimited because it has been, historically, a free good for many patients. Moreover, the argument runs, much illness is driven by bad personal health choices — for example, smoking and obesity, and the heart disease and diabetes that follows. Thus, much of our cost problem is actually the patient’s fault.

Sex, Lies and Cheeseburgers

Oct 28, 2015• 16

By AL LEWIS

Number of deaths attributable to eating processed meat, according to the World Health Organization (WHO): 34,000

Number of people struck by lightning annually: 240,000

And yet the WHO generated a huge headline by saying that eating red and processed meat could increase your risk of colon cancer by 18%.

Let us assume that they are right. (And we will let the trade associations debate them on the scientific merits of that 34,000 figure.) Even if they are right, this is a perfect example of confusing an increase in relative risk of one disease with absolute risk of dying. To use the lightning example, you probably have a 1-in-a-billion chance of being struck by lightning if a thunderclap is audible but the sky above is clear.

Some states close public pools when that happens. If the sky above is clear but you can see lightning in the distance, your odds of getting struck may jump to 1-in-100,000,000. That’s a 10-times relative increase, but only a 9-in-a-billion absolute increase. So these states inconvenience parents and fidgety kids for basically no reason other than misunderstanding relative and absolute risk.

To make matters worse, the WHO conflates the risk of smoking and asbestos with red meat. Both the former cause perhaps something like an 18% increase in age-adjusted death rates in total, not an 18% increase in one form of cancer. The difference? Probably about a thousand times in total, unvarnished, absolute risk.

Yes, I know it’s not always about me (my ex-wife was quite clear on this) but this is exactly what Quizzify teaches. Newscasters who had taken the Quizzify quiz (and relative-vs-absolute risk is in the advanced level…but they are newscasters so they should get to that level) would have led with the headline: “WHO Demonstrates No Understanding of Health” instead of “You Could Die from Eating Red Meat”.