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Archive for August, 2009
Headline Commentary Aug 24-30
- Posted August 30th 2009
- Comments (0)
- by Janice
Excellent article that emphasizes that providing information to stakeholders (esp. patients and doctors) is the best approach to assuring optimal decisionmaking.
ER MD writes about loss of relationships between doctors & patients & how increased use of hospitalists may have contributed.
Market forecast for medical device segment in France.
Good article that describe recent instances of data center projects by providers.
More examples of how Pharma is using social media.
Good news for PE companies.
New book forthcoming from Sage Publications, Encylopedia of Medical Decision Making. Seems like an obvious good online reference work.
John Hussman, founder of Hussman Econometric Advisors, pledges $20M to U. Miami for genetic research. Genetics center has been renames John P. Hussman Institute for Human Genomics.
Profile of Gawande from Harvard Magazine.
Dana Blankenhorn on how Fast Forward (a medical foundation) uses SaaS computing.
James Murdoch lambasts publishing industry for resisting change.
Site with info on generic drug programs of various pharmacies.
A little counterpoint to all of the pharma industry bashing that’s been in the news recently. IMO, some incentives should be shifted to encourage development of needed drugs & not just me-too drugs.
Vendors of EHR systems for large hospitals are now targeting smaller providers, since 95% of large hospitals have already chosen EHR vendor. Cerner, Epic, Eclipsys, and Siemens are 4 big vendors singled out.
Deloitte’s whitepaper on how pharma could make use of data from EHRs to improve their research, clinical trials, and post-market surveillance processes.
Links to reports by Berkman Center on copyright policies at private foundations.
Heart monitor that detects, analyzes & stores info about patient’s heart. AngelMed Guardian. Smart devices are a growth segment.
Good evidence that healthcare analytics companies are well-positioned, with or without health reform. Private sector will increasingly study effectiveness of treatments using outcomes data & comparing them to costs.
WSJ points to Business Week article on biggest R&D spenders. Merck led the pharma cos, but much of their R&D expenses went to licensing, not internal drug discovery.
Editor & Publisher on ebooks and newspapers. To read.
Minnesota provides website with price info on primary care services, labs, etc for over 100 providers.
Good article on the placebo effect.
Interesting case where patient’s wife suggested experimental treatment that eventually was accepted. She wants $300M plus % of profits.
PharmaTimes reports that NEJM editor, Dr. Jeffrey Drazen and BMJ editor, Dr. Fiona Godlee, will argue next month at Oxford Union that clinical trials should not be conducted by the pharma companies that are developing the drugs due to conflict of interest.
United Health promotes compliance with Rx drugs with discount off next Rx. Negotiated lower prices with pharma companies, which will also benefit from long-term compliance.
American heatlh Care Association reports on letter sent by 31 state attys general to HHS sec’y Sebelius to critique CMS Nursing Home Five Star Rating System, which was put in place at the end of the last administration.
Experiment to charge minimal fee vs. free shows that far more will accept free than fee. But, isn’t segmenting the audience the right path?
Description of how Intuit’s QuickHeatlh helps consumers interpret medical expenses; esp. useful for high deductible plans with HSAs.
Hope Leman reviews the book Internet Cool Tools for Physicians, which I have been planning to read since it came out. Thanks Hope, I’ll do my best to remember to order it the next time I’m on Amazon.
Gary Price summarizes program for 8/28 conference at UC Berkeley about Google Books Settlement.
Free whitepaper from Manhattan Research on Pharma use of digital marketing.
iAtros introduces eRoentgen, an iPhone app that helps in choosing best imaging test.
Article includes comments from Susannah Fox of Pew & ePatient Dave (deBronkart) about finding experimental medicine and specialist doctors to combat fatal diagnoses.
More reason to combat obesity: the research shows it leads to shrinkage of the brain, esp. areas used for decisionmaking.
U. Washington dept that studies global healthcare, funded by Bill & Melinda Gates Foundation.
Cedars-Sinai Medical Center finds that “universal floor” where multiple patient types are grouped and care is coordinated by nurses. Sounds like the old model with a twist.
Dr. Vince Kuraitis describes the foundations of a “network economy” and asks if healthcare industry fits the bill.
EPub versions of 1 million books now available on Google. EPub offers some advantages over PDF versions.
Study attempts to measure level of empathy (or lack of empathy) in medical students. Thesis and conclusions are rather scary.
Long and quite detailed critique of WebMD the Magazine. Author criticizes the “woman’s magazine” nature of WebMD’s mag (and I would extend the comment to much of what is on the website for consumers). In efforts to make the information entertaining, author says that WebMD crosses the line by not providing scientific basis and important related information for much of the editorial info in the publication. Author also criticizes the acceptance of advertising by questionnable vendors. IMO, it is unfortunate that too much of the info provided on so-called consumer health portals is similar to the info that Dr. Atwood criticizes in this article. There’s a big gap between the scientific literature and the material produced for consumer audiences. Far too little info is published for intelligent motivated consumer/patients.
Interesting & worthwhile read about the future of scholarly publishing. Author posits that old model of journals publishing will be replaced by open model with actual usage metrics replacing journal impact factors.
From Medical Connectivity, brief article on how doctors are using Twitter to communicate with patients. Best for mass communication, such as public health alerts and distributing info on clinical trials.
Program for AHRQ’s upcoming conference (Sept. 13-16). Registration is closed; it’s a sellout.
MIT lab turns toys into med devices. Good use of design expertise.
US Bank offers HSA with access to WebMD Coverage Advisor, which helps consumers manage out of pocket costs.
manage out of pocket costs.
Some research on effectiveness of free text (fulltext) search v. search via taxonomies like MeSH in Medline. Results indicate that fulltext performs as well. My comment: combination is likely the most effective!
Hospitals are finding that reporting medical errors and making the info easily available helps reduce the number of malpractice lawsuits. Transparency helps!
BI lays off pharma sales reps and more layoffs are purportedly planned.
Important issues about how doctors communicate to patients risks & tradeoffs using statistics described in this paper.
High profile case where quality of life v. cost could be debated. Not everyone can afford the treatment Ted Kennedy received, nor will everyone want it.
Suggested reading from RWJF.
A group of predictions for the future; some health oriented, some not.
Interesting comparative study of using 3 different medical search platforms: Dialog (ProQuest), OVID (WK) and EBSCOhost. Same search gave different results, with Dialog returning more than twice as many results as others.
Embedded IT trainers to help with transition to Eclipsys was key.
Wired UK highlights how doctors & hospitals are using Twitter in UK & US.
Information Week lays out basics of enterprise business management that should be applied to health care IT.
Article provides good context for current activity in managing hospital supply chains. Several stories in past week about purchasing cooperatives to reduce cost of supplies.
Sec’y Health in MA writes about Rand report that provides analysis of 12 possible interventions with highest likelihood of reducing costs. Link to full report included.
Survey of medical students by Epocrates shows high usage of health IT, low confidence in info provided by pharma detailers.
Amer Assoc Family Physicians (AAFP) has launced Delta-Exchange, a social networking site for primary care physicians.
AMA uses Impelsys’ iPublishCentral s/w to publish frequently updated versions of its books in ebook format.
Forbes appears to be pro-public utility for healthcare info exchange in this article. Patrick Soon-Shiong describes reducing the gap between medical research and clinical use (translational medicine), a topic that I just noted in the post about the Army & Navy project at Walter Reed.
Army & Navy doctors collaborate real-time with medical researchers on wound care for injured soldiers–bridging the time gap in tradtional “translational medicine”.
Kodak partners with MMR (MyMedicalRecords.com) to resell Kodak scanning technology for digitizing and importing paper records into EHRs.
NaviNet, a Cambridge, MA claims clearinghouse vendor (RCM) (formerly known as NaviMedix), is promoting its clearninghouse services as preliminary health info exchange (HIE). Currently, EDI is limited to certain payment-related data types, but NaviNet suggests that scope could be increased. Their argument: Why recreate the EDI wheel if the basic network is already in place?
Article in chicago Sun Times says 28% of those seeking health insurance will look online to find providers. eHealthInsurance is profiled.
Informatics Corp. of America (ICA) partners with Mark Logic to offer OEM version of Mark Logic server to allow users to search across structured and unstructured data in EHR systems.
Wikimedia is testing a new policy that will insert an editorial review step before articles about living people are published or modified.
iMedX, a US-based EHR/ medical transcription outsourcing company, acquires Worldtech, Inc., a competing health IT/med transcription company that serves over 800 small physician practices in US and has global medical language specialists. Worldtech will become a division of iMedX.
Rx Ohio Collaborative (RxOC), a coop for group purchasing of Rx drugs, expands to include all Ohio public sector entities & now has about 12 participants. RxOC replaces independent PBMs and is expended to yield greater savings.
P&G to sell prescription drug businesses to Warner Chilcott for $3.1 B. Warner Chilcott, an Irish company that specializes in drugs for women’s health, has annual rev. of $938M. Deal will increase size of WC by huge percentage. P&G’s strategy is to sell off slower-growing units to focus on growth.
Aon survey shows that cost of claims paid in 2010 will increase 10.5% over 2009. Many employers say they won’t pass higher costs onto employees (and some employers won’t have higher premiums due to composition of their insured base) since employees have already taken so many hits in pay freezes & increased co-pays. I like this quote: “Employer contributions are not gifts, they’re part of total compensation. And if you end up having a more expensive health benefit that your employer pays most of, that means that your wages aren’t going up as fast as they would have” (Joseph Antos, AEI).
Healthland, a health IT solutions provider to small rural hospitals, acquires American Healthnet, an Omaha based health IT company to expand its customer base. Last year, Healthland acquired Advanced Professional Software.
Brief article on Microsoft’s increasing activity in health/biotech space.
Scary to read that many doctors don’t know when they are prescribing for off-label uses. David Williams suggests pharma detailing/marketing is cause.
Change:healthcare, a Health Content08 Innovator, is selected by Keystone Insititute for Translational Medicine as partner in consortium to help bridge gap between scientific discoveries in medicine and clinical practice. Congratulations Chris Parks, CEO, change:healthcare!
Good piece about using patient-generated data in medical research. Although not as controlled as clinical trials, certainly better reporting mechanisms can be created to increase the usefulness of real-world health conditions and outcomes data.
To read: article on Drupal, a popular open source CMS for Web publishers. Talks about their business model.
Excellent article that describes how iPhone and other wireless apps are being used by nurses in clinical settings.
NaturalNews.com has launched NaturalPedia.com, a wiki with contributions from hundreds of individual authors on topics related to natural health, wellness, and disease. Note, minimal testing of NaturalPedia indicates that it is primarily a shopping site with content used to refer readers to books and other content for sale. The wiki format is clever and the site seems very steeped in contextual advertising. Natural Health is headed by Mike Adams.
Headline Commentary Aug 18-Aug23
- Posted August 23rd 2009
- Comments (0)
- by Janice
David E. Williams blasts medical journal publishers for perpetuating the ghost-writing practice where Pharma pays academic physicians to put their name as lead author on research articles.
Morningstar on health reform’s impact on public companies in pharma & managed care industries.
Silverlink, a Boston area company, provides s/w that helps providers send phone msgs to patients w/ alerts about health coverage & appt. reminders.
Nice comparative analysis of drug info on Wikipedia v. Medscape Drug Reference. I think the conclusion applies to almost anything on Wikipedia relative to authoritative sources that have been carefully produced with editorial guidelines: “Wikipedia has a more narrow scope, is less complete, and has more errors of omission than the comparator database. Wikipedia may be a useful point of engagement for consumers, but is not authoritative and should only be a supplemental source of drug info.”
NPR now offers archival transcripts for no charge. Makes good sense, esp. if they can gain addt’l advertising/sponsorship rev. as result.
Big Pharma is increasingly outsourcing CRO and manufacturing to India.
Actually, the article is about the initial ARRA spending on health IT, which will go toward regional training and HIEs.
As expected (at least by me), Twitter will introduce premium commercial accounts that include additional features (and probably better security).
HealthLeaders writes on new regs that require patient notification of security breaches.
AHA’s AHA Solutions arm has endorsed the EXTENSION HealthID system of smart cards for personal health info. System includes reading appliance and smart cards and integrates with PMS systems in hospitals & clinics. Smartcards are widely used in US, but have gained popularity in UK.
AHRQ will hold a free webcast on Sept 24 on the clinical & group CAHPS (Consumer Assessment of Healthcare Providers and Systems), with two case studies presented by clinics who implemented the clinical CAHPS.
FDA has proposed mandatory digital reporting of postmarket adverse effects of drugs & devices. Pilot program has been in effect for years.
Dan Roam provides an entertaining slideshow to explain healthcare policy reform options under debate. Interesting for 2 reasons: 1) does a good of explaining the issues clearly; 2) demonstrates how good simple storytelling using basic graphics and data can provide entertaining content. Publishers take note!
KevinMD asks how useful it is to share full lab reports with patients, since data are not presented in user-friendly format that could be easily understood by most patients. 2 points: 1) some patients will want the full reports–there will always be a distribution of preferences among the full patient population; 2) there is clearly an opportunity for a publisher to provide a tool that helps patients understand the lab test results and record them over time in a PHR or other data tracking tool.
Nice entry by CMIO (chief medical info officer) at Phoenix Childrens detailing the key success factors of their implementation of EHRs. InfoWeek is providing some very useful coverage of health IT.
Amazon, MSFT, & Yahoo plan to join the Internet Archive in the Open Book Alliance to oppose the Google Book Settlement. What took them so long?
Interesting event planned by Mayo Clinic in Sept to discuss innovation in health care.
Cool dashboard of Pharma companies’ tweets created by Ignite Labs.
Some good arguments, but overall Felstein’s points make a case for a public option to sit alongside private insurance. The rich can afford the costly innovative treatments, which if proven successful, will become more widely available at lower prices.
David Weinberger explains why transparency is so important in today’s info economy.
Kru Research has prepared a brief video that defines the participatory class of epatients. Their conference in October “Epatient Connections2009″ will focus on what this emerging segments means to healthcare vendors and information providers. Health Content Advisors is on the program speaking about publishing information for ePatients.
RWJF’s research and links to the proposed Prometheus Payment Model, which attempts to pay for quality.
Short article by Steven Spear reinforces my recent blog “Health Content is Rapidly Becoming a Commodity”.
Interview w/ Dr. Bhan, founder of Ozmosis. Have to go back and read in full.
To be released next year: attachment for Wii that measures pulse.
Excellent article that details total costs of implementing EHR systems at variety of provider institutions. Costs include training time, learning curve (including learning to type for some MDs), lost revenue through fewer patients seen during transition periods that can last >6 months, and worst cases where revenue is lost through malfunctions in s/w that cause billing problems. Not a pretty picture for very expensive systems. Bright side, effective implementation leads to improved patient outcomes (but not cost efficiencies for doctors).
Overview of eprescribing role in Health IT & reform.
Commentary about recent ASAE (Am Society Assoc Execs) meeting. Author emphasizes that associations do not exist to faciliate “associating”, rather to further the interests of the group they represent. Comments apply more heavily to industry trade associations than scholarly societies. However, some of the insights apply to both.
More detail on “medical ghostwriting”, which is in fact quite common. I don’t think the whole category of medical communications agencies that write on behalf of research organizations needs to be overturned, but more transparency is definitely needed. And, more guidelines on under what conditions doctors in academia can lend their name to research articles.
Good to see NIH funding research on intestinal microbes & the effect of antibiotics on upsetting the balance.
Ascend Media sells Allied Healthcare to Anthem Media Group and Practice Builders to undisclosed buyer. Allied provides traditional trade pubs in 10 healthcare specialities; Practice Builders provides consulting to help medical practices with business issues, including selecting and managing IT services for practice mgmt.
Shwen Gee’s slides from recent session on Pharma use of social media. Excellent overview & intro to Twitter.
Gina Kolata reveals the lack of transparency in health care costs. Explains why shifting the burden to consumers via HSAs won’t help keep costs down.
Good article that describes why biologics are attractive to big pharma — and why that is leading to acq. of biotech companies by pharma.
Managing expenses helps hospitals improve their financial results in Q1 2009, according to Thomson Reuters study. Link to study included.
Susannah Fox of Pew Research summarizes her notes from CDC’s Health Communications conference. Like her comment about using mobile devices (esp. phones) for exchanging health data & info.
I got to say that I find Gartner’s Hype Cycle out of touch with reality. The basic curve and phases along the curve make sense, but their taxonomy and placement of technologies along the curve seem less helpful than throwing darts. I’m sure there’s some sensible analysis in the whitepaper, but I don’t find their visual models useful.
Recent focus on some practices in medical scholarly publishing is likely to lead to new regulations. Using medical communications companies to write articles authored in name only by academics has been common, but recent attention on this practice is almost definitely going to lead to more transparency and changes in the practice.
NPR doing a series on the role of Free in digital content. Increasingly, Chris Anderson’s thesis resembles the traditional B2B trade publishing model. “Plus ca change…”
Prof. Uwe Reinhardt clearly lays out a key element of the health care reform debate that has not received enough attention: rising health care costs come out of workers wages/salaries in the form of lower wages and higher layoffs.
Datatrak, an electronic data capture (EDC) company, improves its performance. Was delisted from Nasdaq. Compare to Medidata that went public recently.
WSJ puts spotlight on pharmacy benefit management (PBM) companies, which act as intermediaries to manage prescription sales for health insurance providers. Some of the health reform proposals call for PBMs to make available the prices they negotiate with pharma companies. In an “interesting” argument, the PBM association says that “transparency” will hurt competition. The more likely concern: transparency will expose the share of negotiated cost savings on drugs that the PBMs keep for themselves.
another story about changes in medical school curricula & teaching methods.
Siemens talks EHRs, partnerships, and interoperability.
As part of greater revenue cycle management (RCM) efforts, hospitals now rate patients on ability to pay and use risk calculations in estimating their revenue.
Good list of people to follow to monitor Pharma social media.
Large percentage (82%) of drug ads on Yahoo! lead to illegitimate pharma sites. (Bold thought: there is clearly a demand for a different way to buy pharmaceuticals; our existing system in the US isn’t serving needs of consumers. We need a change.)
Nice to see CenterWatch’s partnering with TrialX to make it easier for patients to find relevant clinical trials.
Good point about lack of CMS director.
Focuses on role of employers–the key beneficiaries of maintaining healthy workers–in providing incentives for healthy behavior.
John Moore of Chilmark will moderate panel on PHRs at upcoming AHRQ event.
Boston area Caritas Christi Health Care to sell laboratory business to Quest Diagnostics, the leading medical testing company. Caritas will maintain its in-hospital testing facilites. Deal with Quest provides greater interoperability of test results with EMRs.
Advice for redesigning Rx drug labels to make them less likely to be confused by patients; and for label inserts to have greater relevance & usability for patients.
Michael Wolff offers his commentary on Mark Cuban’s suggestion that news publishers adopt the cable TV bundling model and have the ISP (or other utility) bill for content. In Wolff’s opinion, news content will always need advertising support. I agree with him for broad-based general news, although sponsorship by vendors of broad-based consumer goods/services is a valid model, too.
Paul Levy, CEO BIDMC, writes of Consumer health Quality Council, founded by Health Care for All, which is seeking stories from patients or caregivers about their experiences with hospitals-esp. experiences that involve avoidable errors.
Good post on applications for Google Wave.
NPR does story on Patient Central, a site from Consumers’ Checkbook. At first glance, yet another site that offers patients a chance to rate doctors. Most aren’t very good. What I like about this one: they get lists of doctors & patients from insurance companies and sent surveys to patients, which gives them a good base and higher # ratings per doctor.
WSJ blog refers to piece in WaPo today about asking one’s doctor if he/she gets $$ from pharma companies. Checking online prior to visits is best method, IMO. Much of scientific publishing is still behind firewall, but tools like DeepDyve and Google Scholar help find citations, if not full articles.
InfoWeek reports on Vanguard Health’s joining the Dossia consortium and writes on the role of employers in providing PHR info to employees. Seems to me that role of employers has been underreported by other media in the helath reform debate.
Author of Caring for our Parents commentary on why it’s so hard for Americans to talk about end-of-life care and related issues.
Headline Commentary Aug 14-Aug17
- Posted August 17th 2009
- Comments (0)
- by Janice
Innocentive, a Boston-area company that offers online communities to help solve scientific problems, gets 2nd round funding. Pharma represents major client base.
Duke plans for new medical school that incorporates learning through practicing on high-tech simulation rather than just limited hands-on practice of the past.
Good article that 1)makes it clear that lots of research and CME material are funded by Pharma and 2) offers some tips on uncovering the funding behind research & cme programs.
Ex. of innovative solutions to health & wellness care: a health club where the dues include unlimited access to nurse practitioner (NP).
MDEverywhere, an RCM vendor to physicians, teams with DoctorsManagement to market provider credentiallying services, coding audits and seminars, insurance contract negotiations, and group purchasing services.
Another voice chimes in to question why Google doesn’t put more resources in Google Health.
Healthport, a health IT provider in Alpharetta, Georgia, files S1 for IPO. Hopes to raise $100 million. Healthport is owned by ABRY Partners. Thanks to PEHub for notification.
Discusses need to provide assessment tools for evidence based practices, which currently only exist for medical students.
One Equity invests $75M in ArthroCare Corp, a producer of minimally-invasive surgical devices.
Jay Parkinson, founder of Hello Health, offers a provocative prescription for US health system: scrap what we have and rebuild from ground up.
A site devoted to Twitter usage by pharma.
Article stresses how important digital strategies are to tradtional book publishers and how totally inept the publishers have been at adopting digital strategies and adapting to the digital world. Focus on UK, but applies equally well in the US.
Full art. avail only to subsribers. Covers effect of recent restrictions banning gifts from vendors to doctors, including meals.
A UK perspective on patient input.
Hospitals earn bonuses from CMS for meeting quality benchmarks, but as article points out, they lose other reimbursement money from CMS due to fewer admissions.
Nice round-up of recent chat on social media use for patients.
Anil Dash names the Exec. branch as most interesting start-up for its .gov online data initiatives. Data.gov, recovery.gov. ITspending.gov. Good post.
Plans for adding a rating system for Twitter users are apparently underway. Makes sense as # of users on Twitter rise quickly and sorting through all the possibilities is becoming more complex.
Interesting piece on how our brains seeks out more info to support what we “know” rather than info that contradicts what we “know”.
Sara Paretsky recounts her story of dealing with French bureaucracy when having to take her husband to the ER outside of Tours. Bureaucracy, yes, but no worse than in the US. The bill: $220.
Rational decisons about the ethics of costs for advanced medical technology aren’t sufficiently discussed, according to medial ethicist Callahan.
NY Times provides some broad-brush advice on how to find a doctor. As article points out, it is still very difficult to find sufficient info ahead of time to choose primary care doctor that suits your neds. Mentions HealthGrades, DocFinder,Consumers’ Checkbook and Angie’s List.
Verizon offers some health apps for some Verizon phones, but the costs start at $5.99/mo.
Senate looking into group purchasing organizations used by hospitals for conflicts of interest that lead to excessive costs for supplies.
Vitality, a Boston area company, creates “GlowCaps” for medicine bottle caps, which are connected to the Internet and blink and play a tune when it’s time to take medications. We noted this company before, but the GlowCaps just went on sale via Amazon (exclusively) yesterday (8/13/09). Vitality thinks payers (and possibly Pharma) will subsidize cost in future; for now, patients pay.
Brief article on Cengage’s new plan to rent textbooks to students. Books can be returned at end of course/year or purchased.
Long thoughtful post on Elsevier’s article of the future experiment. I don’t agree with everything author says, although I need more context to understand his comment about explaining content of scientific papers for lay people’s not being justifiied by scholarly publishers.
Short piece on how doctors are using online interactions, including Twitter, to communicate with patients. Linds to recent Thomson Reuters survey on doctors’ use of Internet for research & patient communication
“Health insurance plans have begun using digital games to improve health.” Esp. with children (but I’ve read other cases where Wii games are used with seniors). Humana’s chief of consumer innovation says they “want to encourage healthy behavior…and show people how to have fun doing what is good for them”.
CBO director on quality initiatives at the Veterans Health Administration (VHA). Link to full study.
Usage of Google’s Knol has drifted down and it seems likely that it won’t last much beyond 2 years.
Advice to and from doctors about using Facebook & other social media.
Quest Diagnostics, mostly known for their lab testing, also has eprescribing s/w, Care360 app, for medical practices.
Sales of ebooks grow rapidly, but not exponentially
Emdeon Delivers RCM Efficiency and Gathers Intelligence
- Posted August 13th 2009
- Comment (1)
- by Janice
The healthcare debate tends to focus on, well, healthcare—interactions between doctors and patients. Obama has recently tried to reposition healthcare reform as “health insurance reform”. But, given the realities of where the biggest inefficiencies exist, perhaps the focus should be on health insurance payment processing reform. Emdeon, which went public Wednesday, August 12, estimates that about 17% of our total healthcare expenditures in 2008, or $360 billion, is spent on administrative costs. Further, they estimate that $150 billion of the $360 billion is spent by payers and providers on billing and insurance claims processing. This segment is referred to as revenue cycle management or RCM. Core RCM services involve:
o Verifying eligibility ahead of time
o Submitting claims to clearinghouse according to each payer’s requirements
o Tracking claims in process and fixing denied claims
o Handling payment from payer to provider
o Sending explanation of benefits (EOB) to patients
o Submitting secondary claims if appropriate.
With many providers still using outdated paper processing and limited-functionality automated processes, there is much room for improvement and cost savings in this market.
Emdeon provides services to help medical providers, payers and pharmacy benefits managers (PBMs). Their largest segment is medical providers (hospitals and medical practices), where they supply revenue cycle management (RCM) services and patient billing statement services and had 2008 revenues of $444.8 million in this segment, of which $144.9 derived from RCM and $266.2 from patient statement production and mailing (total 2008 Emdeon revenue: $853.6 million). Emdeon processed over 4 billion health-related transactions in the US in 2008 and accounts for almost ½ of all such transactions. As the largest provider of RCM services, Emdeon’s stock price represents to a large degree the overall market’s sentiment of this segment. Emdeon priced its IPO at the top of the planned range at $15.50 and the stock (NYSE: EM) is up 11.3% as of late-afternoon today (Thursday) at $17.25. A good, if not great, reception.
In its registration statement (Form 424B4) Emdeon describes the fragmented provider landscape (see p. 84) that it says has “historically under-invested in administrative and clinical systems”, in part because of the 560,000 office-based doctors, approximately 74% of which are in small practices with six or fewer physicians. Even these small practices may have relationships with over 50 individual payers. These small to mid-sized practices need RCM solutions that don’t require substantial investment in IT knowledge or equipment.
The market for RCM solutions is fragmented, too. Emdeon has the largest share and there are a handful of other smaller RCM vendors with comparable (or better) claims processing features. But there is also a large group of small billing management companies that either specialize in a type of provider (e.g., emergency care - see recent story about HRA) or focus on a region.
The RCM segment of healthcare has been receiving substantial attention from investors, large consulting companies, and big health IT vendors that recognize the opportunities that exist to improve efficiency in medical billing and related administrative functions. We anticipate accelerated activity in this segment, with both horizontal and vertical consolidation’s occurring. We’ll continue to post updates and commentary about the RCM segment and adjacent segments on this blog.
And for those who think that we’re veering away from health content with this post, let me leave you with this outtake from Emdeon’s Prospectus:
“Our access to vast amounts of healthcare data positions us to develop business intelligence solutions that provide our customers with valuable information, reporting capabilities and related data analytics to support our customers’ core business decision making.”
Health data analytics reside at the pinnacle of our definition of health content!
Follow me on Twitter @janicemccallum
Headline Commentary Aug 9-Aug 13
- Posted August 13th 2009
- Comments (0)
- by Janice
Sales of ebooks grow rapidly, but not exponentially.
Esther Dyson speculates on how Internet could radically change the way patients are involved in their healthcare. Like the way she stresses the important role of information and info tools in changing behavior.
Sony will adopt ePub format, an open standard developed by group that includes some large publishers (Random House, HarperCollins) and use Adobe anti-piracy s/w for their Reader, which allows limited sharing & copying, dropping their own proprietary closed systems with very restricted anticopying s/w.
David Rothman gives a brief overview of TrialX, a clinical trials search tool for patients that can incorporate diagnosis and demographic info from Google Health and Microsoft HealthVault.
FDA clarifies rules for providing access to investigational drugs for patients. Some could be available as early as end of Phase I. Link to FDA rules in article.
BMJ article abstract highlights methods for reducing number of unnecessary (and expensive” interventions. Pts out that evidence is often not applied in deciding how to treat.
Article calls for comparative effectiveness info to be put on drug inserts.
Quotes David Brailer who says it’s important to consumers to have more control. Currently, hospitals are in the driver’s seat. Author suggests that protecting against fraud will be most important.
Rodale’s Prevention magazine’s annual survey of over 1,000 consumers indicates that consumers who are likely to respond to DTC ad by asking their physician about a drug is down >5% in 2009. Rodale analysts assumes economics and lower level of DTC print ads are the cause.
Articles describes several employer plans that offer $$ incentives to employees to practice healthy behavior (stop smoking, lose weight, go to the gym, etc). Mentions Tangerine Wellness, RedBrick Health, and quotes Yale economist Dean Karlan.
Survey by Medical Group Management Assoc. of CO reports that implementing an EHR was the 3rd highest challenge for physician group practices (62% consider selecting and implement EHR a major challenge). Note, revenue management or RCM rated 1st with 73% rating operating costs that are rising faster than rev. as a considerable or extreme challenge. Link to summary report included in article.
Article predicts that 85% of doctors will be employed by hospitals w/in next 10 year. Goes on to explain why (primarily reimbursement practices that favor hospitals). Worth a read.
Emdeon’s IPO raises $365.7 M, with shares priced at top of range & 10% more offered than originally planned. Sign of positive outlook for health IT providers, especially in the RCM/cost containment space.
Information Week covers range of doctors’ attitudes toward using social media to communicate with patients.
In response to the high-priced TEDMED event ($4,000), some folks created a sister conference called BIL:PIL. The BIL:PIL event will focus on innovations in social media and med technology. Oct. 30-31, San Diego State.
Article points out how little transparency or rationality there is in current health care pricing and reimbursement systems. AHIP apparently provided data to shore up support for their case, but the article doesn’t portray them in a very positive light. If insurance plans were so good, why would we have so many insured patients receiving outrageous bills?
Long article that describes slow progression toward cloud computing for healthcare providers. Some good examples and quotes.
Canopy Financial, the provider of the platform for the HSA system used by many of the top banks, announces that its statistics show that health savings account (HSA) balances increased in Q109.
Premier healthcare alliance, a consortium of 2,200 not-for-profit hospitals, will use 1SYNC for its standardized product identification network. Using 1SYNC will help standarized identification of all items purchased by healthcare proviers and improve efficiency of information exchange between supply-chain partners.
Article describes how doctors/surgeons have to make judgements about appropriate devices and treatment for infants (and other groups that weren’t part of the initial clinical trial study), since there often is no established evidence on which to base decisions.
Interesting app on Wolfram Alpha that helps patients understand medical lab tests/results.
Good brief article that describes 4 search engines that offer features and content that differ from Google or Bing. DeepDyve, which we’ve followed because of its excellent coverage of scholarly research and medical journals content, is one of the 4 mentioned in the article.
More activity in the “revenue cycle management” (RCM) aka claims processing segment of health IT. Intermedix (Ft. Lauderdale), which provides IT services to emergency providers has acquired HRA Medical Management (San Diego). HRA provides emergency physician and hospitalist billing services in Calif. and Nevada.
CNN lists top inefficiencies in US healthcare system. For example, they quote up to $210B wasted in inefficient medical claims processing that could be remedied through better systems and a simplification (rationalization) of claims used by different insurance companies.
More focus from NY Times on use of de-identified patient data–and in this case–identified patient data used for marketing. In this case, Rx data is the focus.
Emdeon, which processes nearly half of all medical payment claims in the US, to debut on NYSE Wednesday (Aug 12, 2009). Expects to raise as much as $333M. “Emdeon has picked a perfect time to test the public equity market. The entire health-care system in the US is in the state of flux, and advancement of health-care IT” is a strong focal point now, according to Alex morozov, Morningstar associate director in a recent research note.
Vince Kuraitis adds his voice to the MSFT HealthVault v. GoogleHealth comparison.
Merge Healthcare, a Wisconsin company, made its 2nd acquisition in past 2 months by acquiring Confirma, a Seattle-based copmuer assisted detection technology company, which specializes in CAD imaging tech for breast, liver, and prostate imaging.
Thomson Reuters Healthcare releases its latest (Aug 10, 2009) Top 100 Hospitals list. Fmly Solucient, which TR acq.
Datamonitor Group, part of Informa, to consolidate its IT research brands under the Ovum name. Datamonitor healthcare & pharma remains separate (as does energy, fin’l svcs, automotive, and consumer). New organization would make it easier to spin off the IT group.
Related to Dr. Seibel’s use of music in patient education, I found this home page from NIH for patient education for kids. Good uses of games, music, riddles, humor, art, etc. to engage kids.
Intriguing idea to use music as part of patient education. I’m a firm believer in using whatever medium is “appropriate” or useful. If music [and poetry] helps people remember key information, then I’m all for it. “The hip bone’s connected to the…”
Headline Commentary Aug 3-Aug 9
- Posted August 9th 2009
- Comments (0)
- by Janice
Good article on how some doctors and hospitals are using Twitter for marketing and education purposes. I like the quote: Dr. Young believes it should be the goal of every physician to educate the masses — and Twitter is a good tool. “One method of providing health education is through electronic media, which can multiply, if used properly, a single individual’s efforts to promote healthy life choices,” he said.
Medical billing advocate: a new field spurred by the complexity in figuring out and appealing medical bills. Article also describes the high incidence of errors in medical bills. There’s an opportunity here for a “TurboTax” for medical bills for patients (and Intuit has already created Quicken Health).
Richard Thaler on efficient markets.
Very interesting: Elsevier’s Gold Standard introduces drug info toolkits for consumers. Will be distributed via pharmacists and health info web sites. Developed from Gold Standard, the ELS-owned drug-info resource for health professionals. Good to see publishers of professional healthcare resources adapting the high quality content for a consumer audience.
David Cutler, PhD, Econ professor at Harvard, predicts that hospital M&A activity will be brisk in response to changes in payment policies and the economic environment. Cutler also predicts that the resulting large institutions will have incentive to change health care in their communities for the better.
Good article that describes organizational changes that are needed in provider and practitioner environments in order to adapt to outcomes-based performance models. Biggest change: aligning physicians objectives with hospital/providers’ objectives. Seems like a good idea to me! But, there are other subtle changes related to autonomy of physicians’ decisionmaking that are not as obviously beneficial, depending on one’s point of view.
Scott Shreeve questions why Google hasn’t put more resources into the health vertical. Scott includes a comparison table of MSFT v. Google in terms of resources devoted to health. MSFT dwarfs Goog. I’ve wondered the same thing. I have theories: EHRs, PHRs and healthIT & medical search in general require more hands-on intervention than Google usually provides in its offerings. Plus, it’s a very regulated industry. They may have decided to wait until more EHR issues have been sorted out before committing further. Still, what they have committed is very limited. Agreed, they’ve got smart people, too!
Ortho-McNeil-Janssen Pharmaceuticals offers iPhone app called Blackbag that provides info & tools for docs to stay uptodate on medical news, journals summaries, conference coverage, videos, podcasts related to their areas of interest. Interesting.
TrialX, which already uses Twitter to match trial patients with clinical trials, unviels an iPhone app for doctors to search for appropriate clinical trials.
Gilberrt Guide, founded in 2004, is a leading senior care website that offers a directory of service providers and related resources for seniors, their families and advocates to find providers. Recently, several elder care directory sites have come to my attention. Definitely a growth area, but still fragmented.
Healthcare Management Systems Inc (HMS) introduces an online portal that enables patients to view & pay bills, similar to online bill paying systems.
Salesforce invests about $10 M in Practice Fusion, a SF bay area SaaS EHR vendor which has annual rev of about $1M.
Article shines more light on the medical journals publishing business practices. In particular, writer describes the practice where pharma companies hire medical communications agencies to write articles about their research results and find doctors who sign on as authors, even though their role is not as central as “author” would indicate. This article uses much harsher language than I just did. Reality is that medical communications agencies have played a role in the journals publishing market for some time. Recent focus on their role could lead to changes in the current practice–or at least to more transparency on how they work.
Counter to moves being made by large companies like Safeway and Walmart, financially troubled Boston Globe shuts down its on-site health faciility.
Important change in certification of EHRs. The Office of National Coordinator (ONC) will become the body that determines who can certify EHRs, ending CCHIT’s monopoly. Kibbe and Klebber see this is a critical step away from evaluating EHRs on list of technical features toward a set a criteria that consider “meaningful use” and such requirements as interoperability.
Prevention is important in keeping down high costs of avoidable illnesses, but there remains a question of whether additional focus on prevention will lower costs of our healthcare system. Depending on the incentive structure, providers will find “prevention and wellness” procedures, tests, programs, supplements and devices that will be costly (my opinion).
Why health reform is so hard.
Larry Lessig, Prof. at Stanford, speaks at Berkman Center on topic “Alternative Approaches to Open Digital Libraies in the Shadow of the Google Book Search Settlement” held 7/31/09.
Techcrunch writes on Google’s expansion of its archives. Will check previous bookmarks to confirm Google’s acquisition of newspaper archive company.
Based on HCAHPS survey data, the foundation of the HospitalCompare.gov site, Consumer Reports has created more detailed patient satisfaction ratings for over 3,400 US hospitals. CR incorporates info from the Dartmouth Atlas about intensity of care and correlates with the patient satisfaction data. Results show that more conservative care (which results in shorter stays and lower costs) is correlates with higher satisfaction. The ratings will be available to subscribers of Consumer Reports.
Good article with additional references on how to (and how not to) present risk information about health statistics.
Describes new iPhone health apps, including Chief Medical Officer for Google Health.
Dr. Pauline Chen reviews literature on effectiveness of P4P and finds little research to support it. Results don’t point against effectiveness; it’s just that so little research has been done.
Todd Park, who co-founded Athenahealth with Jonathan Bush 12 years ago, will resign his board seat in order to become CTO of HHS.
Write-up of ContextMedia, a company that creates a TV delivery channel for health information produced by pharma and other vendors for use in doctor’s offices.
Article describes some of the shortcomings in MA health reform, including cutbacks in funding to Boston Medical Center, which treats the city’s poor.
Quicken Health, a s/w app that helps consumers keep track of health care expenses, is rolled to almost 700K consumers. Note, Quicken Health was developed in conjunction with Ingenix, a United Health company.
Step therapy, an approach where patients are started with less-expensive drugs and only given the more expensive Rxs (often the latest drugs) when the first are not effective, is described in this post.
Verisk Health, a Waltham, MA healthcare data analytics company that acquired assets of TierMed Systems, LLS, a leading provider of HEDIS s/w solutions.
Good article on why open data that can be shared and used to build value-added applications is key trend.
Bob Wachter on two stories that help explain escalating health care costs. I added comment about income equality as a driver in cost escalation.
Interesting piece on Wolfram Alpha, which apparently wants to copyright all of the output generated by its “computational knowledge engine”. All output is delivered as GIF image to try to prevent reuse. Article raises some good points about what can be copyrighted and who owns results that sit on SaaS servers.
24 minute interview with Google’s VP search, Marissa Mayer. I like her description of Google Wave (around 13:00minutes), where she says the differentiator of G Wave is that it “treats all data the same way”, so images, video, text, and numeric data can all be included without special requirements.
“Eyeballs are a terrible thing to waste”. Like that line in article that suggests that publishers need to look beyond ads as way to monetize their audiences. In this case, People, will create a gaming site for its female demographic. (When it is presumed that “women” like People, I worry about possible gender-confusion!).
MIT Tech Review article covers the SPEAR technique for evaulating user ratings on websites, based on quality not quantity.
Paul Levy CEO of BIDMC in Boston questions the appropriateness of Obama’s photo opp with a DaVinci surgical robot, mfg’d by Intuitive Surgial. Some good comments on post that drive home the point that ever-more expensive health IT that majority of US consumers cannot afford is driving up the cost of overall healthcare in US. Wealthiest with great health plans may want to fund next-gen health innovation, but our healthcare system subsidizes the wealthy to a greater extent than other segments, which drives up costs.
Interesting case of using iPods to help kids with Asperger’s.
Brief article in Lancet, an Elsevier pub, about why Elsevier should divest its pharma communications group, Excerpta Medica. It should be pointed out that other large medical publishers also provide marketing services to pharma, including WK and Informa.
Good commentary from Consumer Reports on dangers of TV ads for powerful antipsychotic drugs.
MN-based non-profit collaborative that aims to deliver “patient-centered and value-driven” care. Best in country per Kent Bottles.
Top visited pharma brand sites visited by physicians.
Headline Commentary July 27-Aug2
- Posted August 2nd 2009
- Comments (0)
- by Janice
WK Health’s AdisOnline offers new pricing options. In addition to subscription pricing for access to the complete collections of journals, Adisonline offers pay per view and subscriptions to themed collections of journals/newsletters (such as Diabetes, Urology, Clinical Trial Methodology, Data Mining, Ethics, and Drug Evaluations). New pricing in response to resistance to high price of previous broader subscriptions.
Dan Clancy of Google to discuss GB at Computer Museum in Mt. View on 7/30/09. IWeek offers some addt’l background on Google Books and the GB Settlement terms. Note, the rev. share % of 63% to publishers/copyright holders for Google Books is a net figure, not comparable to Amazon’s gross figure.
Some analysis of performance of EHR vendors and other health IT companies in light of expected ARRA spending. Health IT stocks outperformed S&P 500, no surprise.
HIMSS-sponsored e-seminar on how DoD’s MiCare and VA’s My HealtheVet are forming foundation for public sector health care interoperability.
Medscape unseats epocrates as top app.
Urban Institute analysts provides recommendations on how to gain sufficient savings from health reform to pay for an increase in costs. Shout out to John Holihan and Randy Bovbjerg; I know them from time I worked at UI in early 1980’s!
Op-ed on case managment in hospitals and how they are focused on speeding discharge. Also touches on need for improved patient discharge instructions.
FBI raids net 30 Medicare fraud suspects. Schemes included selling $3-4K “arthritis kits” that inlcudes simple braces and heating pads and many were never delivered. Approx. $371 million in flase Medicare claims have been recovered.
Siemens overal operating profit drops 21% in Q3, more than most analysts expected.
Link to JCAHO’s pdf newsletter.
RE’s profits slide due to downturn in ad markets and mostly b/c of debt from Choicpoint acquisition in 2008. RE planned to sell RBI to pay down debt, but only small pieces have been sold & new CEO wants to retain RBI. RE will issue new stock to raise capital needed to improve “credit metrics and ensure that we are appropriately resourced to invest in the business, capture market opportunities and increase competitive differentiation” (Ian Smith, CEO)
IDEO’s domain director for connected health posts about recent discussion on how to engage consumers in health education activities (IxTherapy). No conclusions, but some interesting ideas borrowed from IDEOs best practices.
HealthLeaders’ article that reviews Premier, Inc’s analysis of which industry segments will likely benefit from changes in health policy and which will likely be hurt.
Not a big surprise. U. Oklahoma researchers measured activity level of kids ages 10-13 and found that newer active video games burn 2-3 times calories that than TV watching.
Article in NEJM that describes total cost of health care for average families. Analysis done on 2006 data; costs have risen since then.
Good summary of likely effects of Google Book Settlement on libraries.
PhRMA’s provides congressional testimony on why industry support ($$) of CME is beneficial.
In opinion piece in WSJ, Clayton Christensen & Jason Hwang, authors of Innovators Prescription, suggest employers circumvent traditional health plans as much as possible by: 1) encouraging employees to use “minute clinic”-type facilites staffed by NPs; 2) partner with integrated health systems like KP; and 3) set up company-run clinics on-site. Christensen & Hwang also suggest employers fight against the fee-for-service system. Pretty drastic changes, considering that not too many Kaiser-type integrated care systems exist right now and establishing on-site/employer managed clinics is a major undertaking. But, pressure certainly needs to be exerted on the existing health insurers to change the way they do business.
JBat sums up Yahoo/Microsoft deal and provides links to other docs.
LibreDigital, an Austin, TX company, raises extra $15M. LibreDigital converts content for multliple platforms, including ebooks and recently did a deal with PlasticLogic.
Nice post about growth in medical information and the effects of electronic publishing on ability to find, digest and put-to-work advances in medical knowledge. In short, there’s still too much info to assimilate!
Daniel Carlat, MD, points to a hearing/webcast by Senator Herb Kohl on 7/29/09 to target the practice of industry sponsorship of continuing medical education (CME). Carlat describes current state of CME as corrupt.
Multi-year contract to implement Epic Systems EMR and financial/admin s/w is valued at >$60million. Kettering Health Network serves Dayton Ohio region and chose to standardize on Epic rather than retain it “best-of-breed” approach used in the past. Presumably to improve interoperability.
Dean has new book on health reform; Palestrant goes on the attack.
Good points raised in this article about how scientific research published in scholarly journals is often misprepresented –or at least not presented well — in popular press. Author points to lack of scientific training for journalists and PR folks who write many of the stories. Lack of context, esp. with respect to statistical significance of findings, is key problem.
KLAS pres Adam Gale addresses issues of selecting appropriate health IT for EHRs.
Author raises concern that ARRA spending on Health IT, mainly earmarked for EHR software, will be spent on overly expensive inadequate IT systems. Worth a read.
Excellent comparative table of journal pricing policies by large number of scholarly publishers.
Site created by NY Law School to aggregate materials about Google Book Settlement, invite comments, and provide a easy interface to the settlement documents.
One analysts lists Cerner, Athenahealth, and HLTH/WebMD as good prospects to benefit from ARRA HEalth IT funding. Note, HLTH & WebMD are merging, and WebMD will be the surviving entity.
Nice illustrated comparison of features of variety of search & reference tools for scientific research. Proves why it is difficult to select tools/vendors: features overlap, but no one does it all.
James, most recently with McKesson, to be named CEO of QuadraMed when Q2 10-Q filed. QuadraMed provides clinical and financial IT to hospitals.
Companies exhibiting include: AirStrip Tech, CardioNet, Corventis, GenerationOne, iMetrikus, MedApps, Medcel, Montage, Proteus, Triage Wireless, and Wound Technologies. Qualcomm has Health & Life Sciences div, too.
Privacy and security of personal health data seems to be the theme today. In this case, the article provides a rundown of issues being debated in the UK related to EHRs and PHRs.
Wow, individual physicians are finding Twitter a good vehicle for pointing patients to reliable health information sources. Isn’t it surprising that other vehicles don’t do the job? A website could be effective, but it’s much more work to post links and distribute content that way.
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