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Dissecting the Revolution Health-Waterfront Media merger

Oct 13, 2008• 3

By David Williams Davidwilliams

Like many of you, I was surprised to hear the news that Revolution Health would merge with Waterfront Media, the operator of Everyday Health Network. In this email interview, Mark Bard, president of Manhattan Research, shares his thoughts on the deal and its implications.

David Williams: When Steve Case launched the Revolution Health website last year he said, “While Revolution Health will be a journey over many years to come, we are excited today to launch a site that is the cornerstone of our efforts to revolutionize healthcare.” Now it seems like he’s throwing in the towel on the online business and keeping the rest of the company separate. What’s going on?

Mark Bard: This recent move by Revolution Health highlights the challenges in building a health site and achieving critical mass that appeals to both consumers using the site and advertisers investing in the channel. Like a number of industries today, there is the potential for significant value creation at the two ends of the size scale. You can be on top as one of the largest sites with scale or you can become a highly targeted site with a unique and engaged audience.

This move allows Revolution Health to achieve critical mass and deliver a combined network with the Waterfront team. The harsh reality is that building out a health site today takes more than just funding. It requires the ability to meet the needs of two customer segments – the consumer and the advertiser.

David E. Williams is co-founder of MedPharma
Partners LLC, strategy consultant in technology enabled health care services, pharma, biotech, and medical
devices. Formerly with BCG and LEK.

W(h)ither thy health benefits?

Oct 13, 2008

By Jane Sarasohn-Kahn

The headlines read that CFOs are having trouble accessing credit.

What will that mean for health benefits?

A survey of American CFOs and comptrollers from Grant Thornton has found that over half of CFOs have seen credit costs increase. 2/3 find credit harder to come-by than in 2007.

One in two CFOs think the U.S. economy will remain the same over the next 6 months.

The No. 1 pricing pressure concern is employee benefits — 55% are most concerned about benefits, including health and pensions.

In the short term — six months out — 23% of employers expect their headcount to decrease.

Jane’s Hot Points: Getting credit flowing is Job 1 for the Treasury Secretary (separate from stock market woes). Even with the possible infusion of cash into the U.S. market (with similar moves by European and G7 banks under consideration), the credit crisis won’t be reversed immediately. CFOs anticipate the pricing pressures plaguing their daily businesses will persist for at least six months.

As health benefit designs return to their drawing boards, we can expect two impacts: (1) some employers forced to drop the health benefit; and (2), further erosion of the benefit, in the form of insureds bearing more costs.

That is, if the employee happens to land in the 77% who will be lucky enough to keep his

Moving forward on genetic testing

Oct 10, 2008• 9

By Scott Shreve

Three months ago,
there was a huge hubbub about genetic testing in California. In a
dramatic effort, albeit totally misguided, the California Department of
Health sent “cease and desis t”
letters to multiple vendors who were offering genetic testing services
directly to the consumers. They were concerned by the cost, the
accuracy, the ability for medical professionals to interpret the
results, and the potential for harm to the consumers. However, with
many technology advances that outpace the regulatory apparatus, this
one was well ahead of its time and when the dusts settles, this type of
testing will become a normal part of your health portfolio.

Need proof?

This week Microsoft, Scripps Health (based in San Diego), Affymetrix and Navigenics
announced they are launching a research study to evaluate the impact of
personal genetic testing. The study will offer genetic scans to up to
10,000 employees, family and friends of Scripps Health system and will
measure changes in participants’ behaviors over a 20-year period.
Participants will be able to save a copy of their genetic information
and analysis in HealthVault, enabling them to retain it for future use
as they continue to manage their health and wellness, whether it is for
preventative or treatment purposes.

From Cease and Desist, to a public announcement from all California
based companies on a landmark longitudinal study with 10,000 people
validating the use of personal genetic information in just over three
months?

Stylin’ and profilin’ Cali Style.

Using clinical decision support to get the right diagnosis the first time

Oct 10, 2008• 8

By Joseph Britto, MD

Joseph Britto is co-CEO of Isabel Healthcare, a clinical software vendor that helps clinicians with diagnosis. He practiced medicine in the UK before joining with co-CEO Joseph Maude to start Isabel, named after Joseph’s daughter who was wrongly diagnosed with Chicken Pox and nearly died as a result. Joseph has a personal connection as he was the physician in charge of Isabel’s recovery.

Remember President Bush’s goal, first stated in the 2004 State of the Union message, of giving “every American” his own EMR by 2014?

That goal seems as elusive as ever, especially in light of a recently released study by the The Center for Studying Health System Change which found a discouragingly low rate of EMR adoption among physicians. The new study, released last month, reported that only 29 percent of the hospitals surveyed were actively supporting physician acquisition of EMRs through financial or technical support. This number was disappointing in light of the current government initiative that has relaxed federal rules on physician self-referral and made available hundreds of millions of dollars in various subsidies for EMR adoption by physicians.

Many health policy experts believed that “if you subsidize it, they will come.” While that approach has worked in persuading people to take mass transit, it hasn’t lured many physicians into using EMRs.

Why the reluctance? One reason is cost. On September 25, 2008, the Certification Commission for Healthcare Information Technology (CCHIT) issued a report that reviewed 90 EMR incentive programs (state, federal, private) with a total funding of $700 million available.

Subliminal health education

Oct 10, 2008• 3

By Jen McCabe Gorman

You’ve heard of subliminal advertising, but what about subliminal educating for health?

But who’s tried selling health to us where we live, work, and play? What about using ‘mainstream’ TV shows as a public health education tool?

Kaiser Family Foundation’s seeding of Grey’s Anatomy produced some surprising results.

Kaiser worked with the show’s Director of Medical Research to pick health topics based on 3 criteria:

Appropriate for the show
Not well understood by the American public
Topic where learning could be "measured in a straightforward way" in a survey

Tracking media coverage of health care

Oct 9, 2008• 4

By Christopher Weaver

You probably haven’t seen a lot of campaign coverage from the health beat these last few week, unless The Health Care Blog is your exclusive source.

The "Financial Crisis," and its predecessor, the troubled "Economy," have obscured the issue that many voters said should be near the top of the agenda back when Hillary Clinton and Mitt Romney were serious contenders and the stock market was inching onward. Look back to the October 2007 Kaiser tracking poll for a recap.

A new tool from LexisNexis Analytics
puts health care media coverage in perspective; based on the charts, media attention hasn’t reflected the public’s call for reform – still the number 3 issue according to over-all voters. The Kaiser polls show 26 percent of independents marking health care as a top issue, up from only 13 percent in August

The Lexis analysis also suggests media scrutiny has focused on McCain’s campaign, which has been the brunt of Obama ads attacking the efficacy of the tax credit strategy. Health care was particularly unpopular with Republican’s last month, reaching "a new low" of 11 percent, Kaiser noted.

Health care stocks falling, too

Oct 9, 2008• 2

By Don Johnson

Health care stocks are proving that they’re not recession proof as I and others predicted back in April.

Look at these charts
for 10 prominent health care stocks. Every one of them has declined so
much in recent weeks that in terms of relative strength, compared with
the market, they’re oversold. All are down significantly from their
52-week highs and several are making new lows.

Schering Plough (SGP), Novartis (NVS) and Quest Diagnostics (DGX) are still trading slightly above their April lows.

Mylan Labs (MYL), Wellpoint (WLP), Humana (HUM), United Health Group
(UNH), Aetna (AET), Universal Health (UHS) and LifePoint (LPNT) are all
trading below their April lows, if not at their lows for the year. (FD: I own none of these stocks.)

Around the Web in 60 Seconds (Or Less)

Oct 9, 2008• 1

By THCB Staff

The Seattle Post-Intelligencer’s reader blog has a great entry by a college-educated working individual who wonders how people making twice the minimum wage can afford health benefits for the entire family — even if the employer foots part of the bill.

Politico assesses the brain power behind McCain and Obama’s health plans.

Senators discussed this week draft legislation that would encourage more disclosure of health care costs to workers. "As long as people are insulated from the cost and just think someone
else is paying for it, then it’s easy to overlook expenses," Sen. Grassley
said. "But once they realize they themselves are paying for it, it
should spark a genuine conversation about what to do."

Health Partners published on its Website the prices for 83 procedures at its network primary care and radiology facilities in Minnesota’s seven-county metro area.

A British woman is fighting in the courts to use the sperm of her husband who died unexpectedly in the hospital last year following a routine operation. The law currently says sperm can only be used with consent for the donor. (They have laws for this stuff? Wow.)

Millenson on McCain’s Radical Health Care Plan

Oct 8, 2008• 9

By Brian Klepper

Over at the Huffington Post, Michael Millenson walks us through McCain’s plan to end employer sponsored coverage, noting that it would apply faith-based economics to one seventh of the US economy, and pointing out that its as radical a ploy to foist on the innocent bystander American people as any bomb-thrower ever cooked up.

It’s vintage Millenson: erudite, an airtight argument, gleefully presented, and making no apologies for its partisanship. A fun and informative read.

See also: An analysis of the about-face the McCain camp made suddenly regarding funding for his health plan. He’ll now keep the payroll exemption and cut $1.3 trillion from Medicare and Medicaid to pay for his tax subsidies.

Tell us what you think

Oct 8, 2008• 3

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