Successful healthcare reform is critical to the well-being of our nation. Who has the answers? As a rural family physician, I keep shouting in vain that they are backing the trailer up to the wrong barn. Reform proposals utilizing creative accounting keep conjuring up healthcare expenditure savings where they don’t exist, and even is we could attain this mythological information technology utopia, it will be mere cough medicine for our healthcare system’s pneumonia. It scares me to think that healthcare reform is being guided by myths.
Calendar: The Haas Business of Health Care Conference Feb. 7th 2009
My Desktop Economic Indicators
Economists track changes in the money supply, personal debt, consumer
confidence, and durable goods orders. My signs of economic health are
more subtle.
1. Email volume on nights and weekends
In
good times, people eat out at restaurants. They go to concerts, plays,
and movies. They take weekend trips with the family.
In bad times, they stay at home and email.
For
the past two months, I've received an average of 100 emails between
6pm-12am and another 50 between 12am and 6am. This is double the usual
volume for those hours.
A Question For You Privacy Wonks Out There
When I read a headline like Privacy advocates hail stimulus bills I immediately wonder which privacy advocates. If it’s Deborah Peel I shudder, as her aim appears to be to shut down any system of electronic health data exchange. But if it’s Deven McGraw, from the Center for Democracy and Technology, I’m pretty encouraged as she (and her organization) seem to be taking the militant moderate path on privacy—putting patients in control of their data but encouraging the benefits of electronic records.
So I’m a little puzzled that they both like the privacy aspects of the stimulus package. Can someone who’s read the bill let us know what’s in there, and why they both like it while providers, payers and pharmacy chains hate it?
CODA: Of course who cares about the patients? Most importantly physicians’ privacy will now be safeguarded—even though it’s only their privacy about what we the taxpayer are giving them as contractors that Consumers Checkbook wanted to violate. I can just see Haliburton’s lawyers ready to cite this one.
Dr. Who?
A study in this week’s Archives of Internal Medicine
by Vinny Arora and colleagues found that vanishingly
few hospitalized
patients could name any of their hospital doctors. Should we care?
I think we should. Vinny
is one of the nation’s up-and-coming researchers in the field of
hospital medicine, and a good friend. In this clever study, she and
colleagues at the University of Chicago interviewed over 2800
hospitalized patients over 15 months. Three-fourths were unable to name
even a single doctor caring for them; of those who “could” name a
doctor, the majority of names were wrong. Sobering stuff.
There
are multiple issues at play here.
At a place like the University of
Chicago Hospital, hospitalized patients on the teaching service are
cared for by gaggles of residents, students, and others who are
increasingly working in shifts and running for the exits because of
duty hours limits.
Univita buys Enurgi (with a little explanation about the future of long-term care…)
Univita is a new play from a strong executive team led by former Anthem CEO Ben Lytle. Post Anthem, Lytle and his son Hugh founded Axia, a wellness company, and sold it to DM industry giant (albeit a small giant among dwarves), Healthways.
Now they’ve bought Enurgi which has established a platform for caregivers to manage in-home care over the web. (FD, Enurgi was founded by my friend Chiara Bell). Scraped straight from Univita’s website, here’s what they say they’re going to do:
Cortese said to be candidate for CMS job
The Obama Administration has yet to announce an appointment for the director of the Centers for Medicare and Medicaid Services (CMS). We're not about to start any rumors, but the announcement must be near. The eventual appointee will confront an unenviable number of difficult problems, including state Medicaid programs feeling squeezed by the financial crisis, a Medicare trust fund facing insolvency in a decade, and competing interests in any reform proposal the Obama team may propose.
The folks at the industry newsletter RPM Report think Mayo Clinic CEO Denis Cortese may be at the top of the list. Analyst Ramsey Baghdadi notes:
"Cortese would be an intriguing pick to lead the agency
and seemingly has every qualification to lead the growing Medicare
programs: He's an outsider, he holds a medical degree, he manages a
large health institution and he's helped to implement a number of the
most talked about health reforms at Mayo and made them work. Cortese
also chairs the Institute of Medicine Roundtable on Evidence-based
Medicine."
A Mayo spokeswoman downplayed the idea,
telling the Minneapolis Star Tribune that the executive has not been offered
the job.
Interview with Tracey Moorhead, DMAA
Tracey Moorhead has been head of the DMAA–Care Continuum Alliance for a couple of years, coming from the pan-healthcare industry group the Healthcare Leadership Council.
DMAA is the trade group for the disease management & population health management crowd–a crowd that has had to take it's lumps of late–including from me, but more significantly from CBO and CMS. Tracey gives DM a very vigorous defense, and is very optimistic about the future of disease management despite the doubts harbored by some members of various house committees.
It's a fun interview, and Tracey gives probably better than she got….Here's the interview
Plus quick shout-out to DMAA's Integrated care Summit on March 29-31 in Austin, TX
Freenomics and Healthcare IT
Electronic medical record (EMR) adoption has remained frustratingly low, despite numerous studies
showing improvement in health care delivery resulting from EMR use, measured in many different ways (quality, consistency, cost, etc).
The Obama administration has proposed widespread, even universal, EMR implementation over the next 5 years, though how to accomplish it remains to be seen. The Medicare reimbursement “bump” given to physicians this year to use electronic prescribing is a step in this direction, trying to create incentives.
The biggest barrier to EMR adoption has been cost. Traditionally, EMRs
have been very expensive systems designed to be installed and run
locally in a medical office, or some other local network. Thus, in
addition to the cost of the software itself, they are predicated on the
need to have an entire server system and technical support available to
the practice. The business model used by these traditional EMR vendors
has been to expect the physicians themselves to pay for these systems.
Saving Health Care, Saving America
So far, Congress’ response to the health care crisis has been alarmingly disappointing in three ways. First, by willingly accepting enormous sums from health care special interests, our representatives have obligated themselves to their benefactors’ interests rather than to those of the American people. More than 3,330 health care lobbyists – six for every member of Congress – contributed more than one-quarter of a billion dollars in the first and second quarters of 2009. A nearly equal amount has been contributed on this issue from non-health care organizations. This exchange of money prompted a Public Citizen lobbyist to comment, “A person can reach no other conclusion than this is a quid pro quo [this for that] activity.”
Second, by carefully avoiding reforms of the practices that drive health care’s enormous cost growth, Congress pretends to make meaningful change where little is contemplated. For example, current proposals would not rebuild our failing primary care capabilities, which other developed nations depend upon to maintain healthy people at half the cost of our specialist-dominated approach. They fail to advance the easy availability and understandability of information about care quality and costs, so purchasers still cannot identify which professionals and organizations are high or low performers, essential to allowing health care to finally work as a market. They do little to simplify the onerous burden associated with the administration of billing and collections. The proposals continue to favor fee-for-service reimbursement, which rewards the delivery of more products and services, independent of their appropriateness, rather than rewarding results. Policy makers overlook the importance of bipartisan proposals like the Wyden-Bennett Healthy Americans Act that uses the tax system to incentivize consumers to make wiser insurance purchases. And they all but ignore our unpredictable medical malpractice system, which nearly all doctors and hospital executives tell us unjustly encourages them to practice defensively.
Most distressing, the processes affecting health care reflect all policy-making. By allowing special interests to shape critically important policies, Congress no longer is able to address any of our most important national problems in the common interest – e.g., energy, the environment, education, poverty, productivity.
Over the last four years, a growing percentage of individual and corporate purchasers has become unable to afford coverage, and enrollment in commercial health plans has eroded substantially. Fewer enrollees mean fewer premium dollars available to buy health care products and services. With diminished revenues, the industry is unilaterally advocating for universal coverage. This would provide robust new revenues. But they are opposing changes to the medical profiteering practices that result in excessive costs, and which often are the foundation of their current business models. And these two elements form the troublesome core of the current proposals.
Each proposal so far contemplates additional cost. But we shouldn’t have to spend more to fix health care. Within the industry’s professional community, most experts agree that as much as one-third of all health care spending is wasted, meaning that a portion of at least $800 billion a year could be recovered. There is no mystery about where the most blatant waste is throughout the system, or how to restructure health care business practices to significantly reduce that waste.
Make no mistake. A failure to immediately address the deep drivers of the crisis will force the nation to pay a high price and then revisit the same issues in the near future. It is critical to restructure health care now, without delay, but in ways that serve the interests of the nation, not a particular industry.
Congress ultimately must be accountable to the American people. The American people must prevail on Congress to revise the current proposals, build on the lessons gleaned throughout the industry over the last 25 years, and directly address the structural flaws in our current system. True, most health industry groups will resist these efforts over the short term, but the result would be a more stable and sustainable health system, health care economy and national economy, outcomes that would benefit America’s people, its businesses and even its health care sector.
Finally, the American people should demand that Congress revisit and revise the conflicted lobbying practices that have so corroded policymaking on virtually every important issue. Doing so would revitalize the American people’s confidence in Congress, and would re-empower it to create thoughtful, innovative solutions to our national problems.
Brian Klepper is a health care analyst and industry advisor. David C. Kibbe is a family physician and a technology consultant to the industry. Robert Laszewski is a former senior health insurance executive and a health policy analyst. Alain Enthoven is Professor of Management (Emeritus) at the Stanford University Graduate School of Business.