Divergent Paths to Reduce Deficit in Minnesota Characterizes Early Attempts at Health Reform

[This article posted on March 16, 2011. It is posted within the following categories: CMS, Healthcare Policy & The Media, Politics & The Law, via Michael Douglas, MD, MBA.]

Here’s a developing Minnesota health policy item: governor lauds donation from major provider of indigent care to reduce state deficit — all the while, GOP lawmakers push for bill to make cuts to funds earmarked for the state’s Department of Human Services in an effort to reduce same budget deficit.

Democratic Gov. Mark Dayton announced the donation from UCare, which provides coverage for patients on state and federal programs including MinnesotaCare, Medicaid and Medicare.

While this move is a great one, I can’t help but anticipate what the GOP-led legislature has up its sleeve in creating cost-control measures for the critical delivery of care to Minnesota’s Medicaid and dually-eligible population of patients — given that cuts to institutionalized long term care and mental healthcare services are not on the table. | LINK

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Budget Busting Measures Place Some States at Risk in Delivery of Mental Health Services

[This article posted on March 14, 2011. It is posted within the following categories: CMS, via Michael Douglas, MD, MBA.]

So-called austerity measures, a strategy in many Republican-dominated state legislatures to control spending, are getting increased attention nationally, spurred by the international news story that is Wisconsin’s budget battle. Within the scope of healthcare-related legislation, budget-specific priorities can come in many flavors. While modifying entitlements (like Medicaid) probably constitutes the best known example for balancing state budgets with respect to health policy, slashing funding for state-employed healthcare organizations and care delivery is increasingly being seen as an easy target for many state governments, many with the potential for significantly negative consequences.

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CMS Chief’s Remarks at Recent Media Confab

[This article posted on March 2, 2011. It is posted within the following categories: CMS, Corporate, Healthcare Policy & The Media, via Michael Douglas, MD, MBA.]

Via National Journal, the current CMS chief Don Berwick, MD, and others discuss the effect of healthcare associated infections on delivery and cost of care. Among the topics discussed in the Q&A are (jump ahead to the times listed to see): political infighting in the healthcare policy arena and role of the public and its perception of health policy @ 34:30; Berwick’s views on “systemic” improvements in care delivery based upon organizational leadership and governance @ 42:00 — and most importantly, his thoughts on the iPod and iPad @ 56:00.

Obama’s FY 2012 Budget Proposals Regarding Medicare/Medicaid Extremely Byzantine

[This article posted on February 15, 2011. It is posted within the following categories: CMS, Healthcare Policy & The Media, Pharma & Devices, Politics & The Law, via Michael Douglas, MD, MBA.]

Amid all the fanfare of, say, Super Bowl-like proportions, the Obama administration’s 2012 Budget [PDF] made its debut and, almost as immediately, was roundly criticized by both Democrats and Republicans before the first shipping box was even pried opened at the offices of the Senate Budget Committee. Predictably, the acknowledgement to Medicare funding was expected: in order to fund the so-called recurrent Doc Fixes[1] the budget plan will begin to attack the effects of fraud, waste, and abuse on taxpayer financed healthcare delivery. It would also decrease fed spending on Medicaid. In order to make this happen, Obama has proposed provisions in the budget totalling approximately $54B.

The immediate effect of this is a siphoning off of matching funds states could use to deliver services covered by Medicaid. Obama’s plan would cut $18.4 billion in federal Medicaid funding by reducing the amount that states could levy on providers to help finance Medicaid. The budget also proposes an increased use of generic pharmaceuticals as a way of decreasing utilization in Part D programs, for example. PhRMA, of course, quickly criticized this action — expressing concerns on its effect on innovation in pharma R&D.

Also, perhaps out of necessity in saving face amid all of this criticism over the budget, Obama has backtracked somewhat on his commitment to full compliance of the electronic health record among Medicare and Medicaid providers by funneling some of those fees (meant to penalize providers which do not convert to full EHR) to cover Part B services under Medicare. All in all, a pretty messy and convoluted scenario to the problem of guaranteeing care for all under reform while cutting Medicare/Medicaid spending and ensuring proper reimbursement for physicians who continue to live out the threat of ongoing SGR inertia-induced cuts in payouts.

  1. A provision that would extend current Medicare provider payment rates through December 31, 2011.  Doctors were scheduled to receive a 25 percent reduction in their reimbursement rates on January 1, 2011, owing to rates as determined by the SGR. It requires congressional approval. []

States Look for Ways to Combat Imminent Medicaid Costs at Dawn of Reform

[This article posted on February 10, 2011. It is posted within the following categories: CMS, Healthcare Policy & The Media, Knowledge & Medicine, Pharma & Devices, Politics & The Law, via Michael Douglas, MD, MBA.]

Some states are using the issue as a campaign 2012 boilerplate. Others are using it to highlight agenda-driven pleas to bring down the cost of taxpayer-funded healthcare delivery. Still, many governors cannot deny that the expansion of Medicaid dollars to states as part of the reform law. Here in Minnesota, the new Democrat (the first Dem governor in 20 years) chief executive Mark Dayton, wasted no time in signing the executive order to expand funds to cover nearly 100,000 Minnesotans and create or save another 20,000 jobs in the process. Unsurprisingly, the move was met with predictable criticism from his GOP detractors (a continued drain on federal matching funds) but unwavering support from safety nets (participating hospitals breathing a sigh of relief in avoiding charity care).

Minnesota begins its coverage rolls on March 1. Other states hoping to turn short term budgetary disadvantages to affordable care delivery in the long term are understandably nervous about how to proceed. President Obama appears to be offering a helping hand — in the form of informational dispatches from the HHS secretary to answer that fundamental question: how to effect savings without cutting into beneficiary eligibility. States like the woefully underwater California are getting crash courses in prescription medication costs, dual eligibility changes under reform, optional benefit delivery systems, and a host of other issues which may provide clues on where states can cut.

Medicaid financing, already labyrinthine in complexity — is about to become more so. And it’s not even 2014. | LINK to text of relief letter sent by HHS Sec’y Kathleen Sebelius

One Month in, Multiple Parties Already Reporting Problems with Medicare Bidding Program

[This article posted on February 4, 2011. It is posted within the following categories: CMS, Corporate, Healthcare Policy & The Media, Knowledge & Medicine, Pharma & Devices, Politics & The Law, via Michael Douglas, MD, MBA.]

Just over a month into the Medicare competitive bidding program, and patients, their advocates, economists, and just about anyone with a stake in the process has nothing good to say about it. The program, implemented by the government to cut Medicare costs and find the least expensive options for services (like DME), requires that a sealed bid, given to an issuer by an underwriter, come with a prospective price and terms for a contract. At the close date of bidding, the issuer picks the best offer. However, CMS has sharply restricted the numbers of suppliers which can take part in the competitive bidding process.

Patients are complaining that they are not receiving certain goods and services as prescribed by their providers. Poorer quality delivery of services by home care agencies, longer lengths of stays of beneficiaries in acute hospitals due to affected discharge planning, and fewer overall choices for patients for certain DME services — have all contributed to the angst surrounding this process. Critics do not seem to be blasting the process in a strict sense, but they’re concerned that the program’s design undermines transparency, subsists on inaccurate information supplied by Medicare, and increases the potential for fraud and abuse by third parties, as a result.

Overview of the Medicare competitive bidding program | LINK

American Association for Homecare concerns & resources for affected patients and other parties | LINK

Discussions on Medicaid Funding and Sustainability on the Increase among States

[This article posted on January 29, 2011. It is posted within the following categories: CMS, Corporate, Healthcare Policy & The Media, Knowledge & Medicine, Politics & The Law, via Michael Douglas, MD, MBA.]

Medicaid has long been regarded as Medicare’s (ugly) stepchild, primarily because of the essentially fifty different ways the program is sustained nationwide and the myriad federal ins-and-outs of a long complicated relationship with managed care and federal financing. Not surprisingly, many states are taking the opportunity exploit the concerns of very real budgetary deficits to propose streamlining plans to cut many of its services many lawmakers — both Republican and Democrat — say are wasteful.

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Physicians Tackle So-Called ‘Heavy Utilizers’ to Control Acute Care Costs

[This article posted on January 27, 2011. It is posted within the following categories: Corporate, Healthcare Policy & The Media, Knowledge & Medicine, Politics & The Law, via Michael Douglas, MD, MBA.]

A pretty interesting piece on the role some hospitals are playing in actively going after acute care costs. Focusing on the repeat patient whose social maladies complicate cost-effective chronic care measures with poorly handled acute care treatments — usually in the emergency department — the article notes a couple of enterprising physicians who are working with third parties outside of their overburdened health systems to meet the revolving-door patients head-on.

One of them is Brenner, the Camden doctor who subsequently started the Camden Coalition, with the help of some funds from the Robert Wood Johnson Foundation, to hire nurses and social workers to manage patients in their homes and keep them out of the hospital.

The other is Rushika Fernandopulle, a Harvard-educated internist in Atlantic City, who runs a labor union clinic with a dedicated focus just on 1,200 employees of the casino and the hospital, AtlantiCare Medical Center, that rack up the most medical bills.

Dr. Brenner’s program, sort of a mobile medical home, was able to achieve a near 40 percent reduction in ED visits for acute “exacerbations” of social program/community program lapses. Pretty cool — hospitals’ efforts to go beyond merely hiring ancillaries to provide sound patient follow up after discharge are admirable lessons for controlling acute care costs…even if forced to make such decisions in trying economic times. | LINK

A Medical Student’s Take on the Health of the Primary Care Model

[This article posted on January 13, 2011. It is posted within the following categories: Diversions, Healthcare Policy & The Media, Knowledge & Medicine, Science & Research, via Michael Douglas, MD, MBA.]

A great piece by a journalist-med student in her senior year at Harvard Med detailing her experiences not only in providing ambulatory medical care on the path toward a career in primary care, but also in working with other non-traditional bedfellows as part of the care team. Collaborations with MD/MBA medical student candidates, undergraduate pre-medical students, supervising physicians, and others simulating roles in the mold of the primary care medical home are integral to the author’s perceptions of primary care evolving to a sound 21st century post-healthcare reform specialty.

[W]hen I spend time at the Crimson Care Collaborative or at the primary care clinic that occupied my Wednesday afternoons for a year, I am reminded of what draws me to this field — patients like the soft-spoken college student who came to see us at CCC because his volatile digestive tract made it hard for him to go to class, let alone work his two side jobs. The diagnosis was potentially life-altering, and it was our job to piece together his story, to explain what we were thinking, and to arrange for him to get the lab tests and the colonoscopy which ultimately showed (thank goodness) that his condition wouldn’t require lengthy hospital stays and could be treated, with close attention, through outpatient visits.

This is what makes primary care interesting — relationships with patients, the intrigue of new diagnoses, and the challenge of coordinating and optimizing care.

Read the entire article. It provides an accurate snapshot of where primary care as a discipline is in the eyes of the current presidential administration and its very important role in the next decade as a force in shaping public and healthcare policy. | LINK

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Will EHR Adoption Result in Better Health Outcomes for the Poor?

[This article posted on January 12, 2011. It is posted within the following categories: Corporate, Healthcare Policy & The Media, Knowledge & Medicine, Science & Research, via Michael Douglas, MD, MBA.]

President Obama’s push for the digitization of the medical (health) record continues its march toward the goal of complete adoption nationwide by mid-decade. The administration’s desire for this goal as a part of reform is as much a laudable task as it is a daunting one. Cost of complete market saturation among healthcare facilities and systems is one issue. The other? Some providers in more rural and urban areas where care is provided are concerned that EHR adoption will not immediately benefit healthcare delivery to the economically disenfranchised.

Call it the “digital divide” as it relates to the electronic record. Sure, cost of adoption is one thing — but the realization that private and government initiatives over the next four or so years will continue to favor larger systems with heftier resources is quite apparent. To be fair, the feds have allocated some $300M in stimulus funds for this problem. But, just how far will funds go not only to ensure access for the poor and uninsured in economically deprived care environments but also to begin to reverse the all too familiar correlation between poorer health outcomes and lower income levels among patients? | LINK

UPDATE & RELATED: A graphic shows the penetration of EMR adoption by state (criterion: any EMR component use as defined by the CDC in 2010). Happy to see Minnesota at the top of that list! | LINK [PDF]

Unionized Physicians and Acute Hospital Reach Agreement

[This article posted on December 17, 2010. It is posted within the following categories: Corporate, Knowledge & Medicine, via Michael Douglas, MD, MBA.]

Physicians employed at a previously public-run NYC hospital affiliated with Columbia University narrowly avoided a strike by ratifying a new contract to continue providing healthcare services there. At issue was the possible truncation and loss of some pension benefits and tuition reimbursements for employed physicians and family members, as the hospital was run by the city.  The city’s public charter ended this year as it begins to explore ways of utilizing private contracts to provide physician services.

Approximately a whopping 75 percent of unionized physicians there voted to strike, if necessary. The move for NYC to turn to private agencies to staff the hospital (joining other city hospitals) is just another sign of the troubled current healthcare delivery system and the costs that can be incurred by municipally-owned acute hospitals as they struggle to save money under the spirit of reform. Apparently, NYC’s fiduciary relationship with Harlem Hospital spanned some 40 years prior to this painful, but apparently necessary, transition. | LINK

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Court: E-Cigarettes Should Be Treated Like Tobacco

[This article posted on December 9, 2010. It is posted within the following categories: Corporate, Pharma & Devices, Politics & The Law, Science & Research, via Michael Douglas, MD, MBA.]

A new way for some to curb the addiction to smoking — electronic cigarettes — is not only gaining popularity among those who use them, but the product is also adding fresh controversy to the debate over the marketing of tobacco and what really constitutes appropriate use of nicotine replacement products as an ostensible way to kick the habit.

An appeals court ruling yesterday decided that the e-cig products should be treated like true tobacco-containing products with respect to oversight by the FDA. What this means is that these products are not seen as therapeutic, in the strictest sense, and must be treated as a drug.

This ruling is exclusive of the e-cig’s increased popularity, a characteristic of the product that some see as a potential slippery slope to unregulated marketing practices to certain vulnerable populations — like children and teenagers. Until under the control of the FDA, the sky’s the limit for promotion of these products, with any hope for rigorous study on their purported benefits dashed for now. | LINK

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Future Healthcare Legislation in Minnesota Owes Much to Election ’10

[This article posted on November 1, 2010. It is posted within the following categories: Healthcare Policy & The Media, Politics & The Law, via Michael Douglas, MD, MBA.]

Just as in every other state with crucial campaigns this midterm election cycle, Minnesota will be experiencing its own special brand of drama. The governor’s race is at the top of that list. For the first time in over a generation, the state could be electing a Democrat chief executive. With respect to healthcare reform in Minnesota, the chances of expanding government to include adequate spending on healthcare has advocates on the edge of their electoral seats. Will it be four more stalemate years of a Democratic controlled legislature and a Republican in the governor’s office, or will there be a Minnesota microcosm of 2008, when Barack Obama was elected to serve alongside a Dem-controlled US Congress?

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