November 24, 2008

IN THIS ISSUE

Editor's Column: A Prescription For Drug Companies
Medicare Advantage Plans Increase Cost and Complexity
MSMS Establishes Nation's First Statewide Physician Network
Dr. Palmer Appointed To Newly Created Position At WSUSOM
Chair Of Otolaryngology Appointed At HFHS
Dr. Schenk Elected To Cancer Society Board
DMC-Affiliated Emery King Video Library Wins Award
No Way To Know If Hospitals Are Prepared For Disaster


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A Prescription For Drug Companies

By JOSEPH WEISS, MD
A front-page article in the Oct. 22 New York Times announced that the American pharmaceutical industry was experiencing a drop in prescriptions, an event never heard of in the industry in the 60 years of tracking such information.

The headline comes as no surprise to physicians. Probably, any physician seeing patients regularly over the last 12 months can cite repeated experiences of patients saying: “If what you want to give me doesn’t come generic, I can’t afford it.” If at that time, economic forecasters had the foresight to interview physicians about the state of the economy, we could have told them long before the other indicators, that something was amiss and that the nation was headed for hard times.

Of course, physicians were wisely keeping to themselves. The pay –for-performance advocates were happily noting the drop in prescription drugs and rise in generic prescribing and giving pay for performance incentives the credit. Physicians were not about to give up the bonuses the pay-for-performance advocates were handing out. The truth was that generic drug use increased and brand prescriptions dropped because patients were letting us know their concerns and financial problems. That one-to-one relationship establishes reality better than the railing of critics or the strategy of bonuses administrators take from their MBA courses.

Any other industry faced with a loss of sales, lowers the price for example, the auto industry, the gas and oil producers and the stock market. In contrast to attempting sensible pricing in face of a changing marketplace, the pharmaceutical houses uniformly raise the price of their drugs 10-12 percent a year, every year. These companies lament the decline in sales, but none have come forward with decreases in prices of their products.

We should ignore the blandishments, promises, proposals, and assists the drug companies offer us as long as the pharmaceutical industry continues to ignore the needs of the public. With the money saved from wooing the medical community, the pharmaceutical industry should lower the price of their goods so that patients could, at the least, afford their co-pays.

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Medicare Advantage Plans Increase Cost, Complexity

Private Medicare Advantage Plans Increase Cost, Complexity of Program Without Evidence of Improving Care, Studies Find
[Nov 24, 2008]

Private Medicare Advantage plans are increasing costs for Medicare but not necessarily improving care, according to two studies published on Monday in the journal Health Affairs, the New York Times reports. Nearly 25 percent of all Medicare beneficiaries, or about 10.1 million people, currently are enrolled in private plans, the Times reports.

In the first study, Marsha Gold, a senior fellow at Mathematica Policy Research, wrote that private MA plans "are now widely available nationwide," including in rural areas, since a 2003 overhaul of the program. However, the study noted that 48 percent of the new enrollees are covered under private fee-for-service plans, which mimic traditional Medicare plans and do not adequately coordinate care. Enrollment in private fee-for-service plans has increased from 26,000 in December 2003 to 2.3 million, the Times reports.

In the second study, Medicare Payment Advisory Commission analysts Carlos Zarabozo and Scott Harrison found that increased enrollment in the private plans had, in turn, raised costs because the federal payment rate to private plans on average is 13 percent higher than what it would be for the same beneficiaries in traditional Medicare. Zarabozo and Harrison wrote, "The higher payment rates have financed what is essentially a Medicare benefit expansion for Medicare Advantage enrollees, without producing any overall savings for the Medicare program, and with increased costs borne by all beneficiaries and taxpayers."

Zarabozo and Harrison added that "[p]ayment increases have been so large that plans no longer need to be efficient to offer extra benefits." HMOs on average were paid 12% more than what would have been paid for traditional Medicare beneficiaries, while payments to private fee-for-service plans were 17% higher, the authors found.

President-elect Barack Obama has called for eliminating the higher payments to MA plans. In a debate on Oct. 15, Obama said the higher payments to MA plans are "just a giveaway" to private insurers. In addition, former Sen. Tom Daschle (D-S.D.), whom Obama reportedly has chosen as secretary of HHS, has expressed similar views. In a book published this year, Daschle wrote, "Medicare's solvency is now threatened by overpayments to private insurers." MedPAC has recommended that payments to MA plans be reduced to the level of traditional Medicare.

Defense of Private Plans
Acting CMS Administrator Kerry Weems said, "Medicare Advantage plans are offering an average of over $1,100 in additional annual value to enrollees in terms of cost savings and added benefits." Karen Ignagni, president of America's Health Insurance Plans, said that HMOs and PPOs offered recognizable benefits by coordinating care, which has facilitated early detection of diseases and fewer patient visits to hospital emergency departments.

However, HMOs and PPOs "are not the types of plans that have been growing most rapidly," Gold wrote, adding that private fee-for-service plans continue to grow in popularity though they "are not set up to coordinate care" (Pear, New York Times, 11/24).

An abstract of the first study is available online.

An abstract of the second study also is available online.

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MSMS Establishes Nation's First Statewide Physician Network

MSMS is establishing a statewide physician-sponsored electronic portal called MSMS Connect. The basic portal is a free benefit to MSMS members that securely connects physicians to patient data and to key resources-all through a convenient, single sign-on portal. 

It will use Compuware's Covisint subsidiary technology, securely connecting physicians to patient information and to each other for referrals and consultations--as well as to labs, patient registries and other resources. It will expand to connect to insurance companies, state agencies, other medical practice management resources and to other networks. 

MSMS Connect is an important, tangible benefit that introduces or enhances technology within the medical practice. It delivers an excellent value, since it would be financially impractical for individual physicians to contract with programmers to design and develop a similar portal utility for their offices. 

MSMS Connect is compatible with more than 270 existing Practice Management Systems (PMS), and can be connected when you purchase enhancements to the basic MSMS Connect portal. When your PMS is connected, patient data will be available to you (and only to you) in the MSMS Connect portal. This will give you access to your patient schedule, and will eliminate the need to re-enter patient data for other services such as e-prescribing.

If you belong to a physician organization (PO), you may wish to explore whether your PO provides further discounts on existing portal services.

For more information, contact Janet Foreman at 800-688-1895 or jforeman@msms.org.

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Dr. Palmer Appointed To Newly Created Position At WSUSOM

The Office of Faculty Affairs is taking a new and innovative approach to diversifying academic medicine and the ranks of future practicing physicians and professionals by expanding its scope to also focus on leadership and professional development within the School of Medicine.

Dr. Kenneth Palmer has been appointed to be the first vice dean for Faculty Affairs, Human Resources and Professional Development effective January 1, 2009. In this expanded role, Dr. Palmer will devote his full-time energies to serving as an advocate for the diverse School of Medicine faculty. He will be responsible for interpretation, implementation, monitoring, evaluation and reporting of institutional policies and procedures. These procedures include the development and implementation of expanded resources for professional development and human resource administrative support services.

Dr. Palmer has been with the School of Medicine for 28 years. For ten of those years he served as dean for Research and Graduate Programs. He served five years as director of Preclinical Curriculum and has chaired the Committee on Public Health Sciences, which led to the establishment of the new Department of Family Medicine and Public Health Sciences and Master of Public Health program. Most recently, Dr. Palmer served as interim chair of Pathology, where he was fully engaged in faculty development and the promotion and tenure processes leading to successful clinical faculty promotions. He successfully recruited nine new clinical faculty members and a new director of Pathology Education while overseeing thriving GME, UME and graduate biomedical education programs.

A National Institutes of Health-supported basic science principal investigator for 12 years, Dr. Palmer has served as program director for the first 18 years of our successful Pathology Graduate Program, and as director for the last 27 years of our highly regarded Year 2 medical Pathophysiology course. He has directed several graduate courses, including leading a systemic pathophysiology course for biomedical students for 14 years.

Dr. Palmer was recruited from Boston University School of Medicine and the Mallory Institute of Pathology. A Massachusetts native, Dr. Palmer received his M.S. in development biology from Villanova University, in Villanova, Pennsylvania, and his PhD in pathology from Boston University.

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Chair Of Otolaryngology Appointed At HFHS

Kathleen Yaremchuk, MD, has been appointed chair of the Department of Otolaryngology, Head and Neck Surgery at Henry Ford Hospital. She had been Interim Chair of the department for nearly a year.

With the appointment, Dr. Yaremchuk becomes one of two female chairs of Otolaryngology-head and neck surgery in the country, reported HFHS.

Dr. Yaremchuk is a national expert in quality and managed care. She is a surveyor for the National Committee for Quality Assurance of Health Care Organizations and sits on its Review Oversight Committee. She has led the medical groups in national and regional pay-for-performance initiatives and organized the group's efforts in HMO contracting and performance management.

On Jan. 1, 2007, Dr. Yaremchuk implemented five new policies to eliminate the conflict of interest created by relationships between vendors and the health care industry, to support patient privacy compliance, and to improve quality and safety.

In addition to policies to reduce and control supplier presence in patient care areas, to ensure that suppliers meet with patient care givers only with their approval, and to make sure that decisions are always made in the best interest of the patient without undue influence from suppliers, Dr. Yaremchuk implemented the first vendor certification program in the nation.

Henry Ford's vendor policy has been adopted by many organizations nationally, the health system reported.

In her surgical specialty, she has achieved subspecialty certification in Sleep Medicine and has been awarded leadership roles in national professional societies and journal editorial boards.

She will continue to serve in her current position of vice president of Clinical Practice Performance for the Henry Ford Medical Group, the 1,000 member medical group that staffs Henry Ford Hospital and 26 medical centers throughout southeast Michigan.

Dr. Yaremchuk joined Henry Ford in 1984 and was appointed director of the department of Otolaryngology's Smell and Taste Clinic in 1994. She received her medical degree in 1978 from the University of Michigan medical school. She has a master's degree in health care administration. She is a former president of the Michigan Otolaryngological Society, the first woman elected to the post, HFHS reported.

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Dr. Schenk Elected To Cancer Society Board

Maryjean Schenk, MD, MPH, MS, chair of the Wayne State University School of Medicine Department of Family Medicine and Public Health Sciences, was elected as an at-large member of the national board of directors of the American Cancer Society.

Dr. Schenk was elected to a two-year term as one of six at-large members of the board at the recently held annual ACS meeting in New York.

“This election is testimony to Dr. Schenk's career-long work in cancer-related issues and to her leadership in primary care,” said Richard Wender, MD, past president of the American Cancer Society and the first primary care physician to serve on the board and to become president of the organization. “It also confirms the ACS appreciation of the vital role played by primary care clinicians in the cancer fight. The interests of our discipline, and, it follows, the best interests of public health, will be well served by Dr. Schenk's election.”

Dr. Schenk is only the second primary care physician elected to the ACS board, reports Wayne State.

“Dr. Schenk’s dedication to patient care and to educating those devoting their lives to family medicine exemplify the model of physician and instructor who continues to develop the fine reputation of the School of Medicine,” said Robert M. Mentzer Jr., MD, dean of the Wayne State University School of Medicine and senior advisor to the president on Medical Affairs. “Her boundless energy will no doubt be appreciated by the American Cancer Society, as it is here at the School of Medicine.”

The ACS is the largest health related not-for-profit organization in the world, and the fourth largest charity of any kind. The society is dedicated to eliminating cancer as a major health problem by saving lives, diminishing suffering and preventing cancer through research, education, advocacy and service.

Dr. Schenk oversaw this year the opening of the new Wayne State University Physicians group Family Medicine Center on Crittenton Hospital's campus in Rochester Hills.

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DMC-Affiliated Emery King Video Library Wins Award

For the second year in a row, the Emery King Medical Video Library at DMC.org has taken home a top honor in the eHealthcare Leadership Awards, sponsored by eHealthcare Strategy & Trends. The 208 Gold Award was presented to the DMC in the category of “Best Web 2.0/Rich Media.”

“A growing number of healthcare organizations are clearly embracing the Web and emerging technologies,” says Mark Gothberg, eHealthcare Leadership Awards chairman. Gothberg notes that organizations like DMC have invested in new sites or made significant improvements in existing sites. “Such rich media forms as videos, audio, blogs, and discussion groups are changing the landscape of Web sites,” he says.

The Emery King Medical Video Library houses more than 75 exclusive, custom videos, including sub-libraries created by health and fitness expert Peter Nielsen and Detroit Shock Trainer Laura Ramus. The DMC videos feature breakthrough procedures offered by DMC specialists and experts. Response has been exceptional – patients from as far away as Romania have found DMC specialists via the Library. A recent video featured a patient who sought out a DMC Neurosurgery specialist for his own spinal procedure, after watching that specialist in one of the existing videos.

DMC extends the reach of the health videos by posting them to video sharing sites like YouTube, Google Videos, Yahoo Videos, vimeo.com, icyou.com and digg.com. DMC embraces the use of Web 2.0 social networking with Emery King-focused pages on both MySpace and Facebook.

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No Way To Know If Hospitals Are Prepared For Disaster

The findings of a new study published this month in the American Medical Association’s (AMA) Disaster Medicine and Public Health Preparedness journal found that consistent, evidence-based performance measurements are needed to accurately evaluate hospitals’ ability to manage patient care during a disaster. The study has been released early on the AMA disaster journal Web site and will be published in the journal’s December issue.

“Although health care institutions regularly perform quality assessments of routine clinical services, few metrics are available to evaluate the quality of their emergency management initiatives,” said study lead author Eliot J. Lazar, MD, MBA, vice president of medical affairs and chief medical officer at New York-Presbyterian Healthcare System. “The need for universally accepted, evidence-based performance measures continues to grow, as hospitals must be able to demonstrate their progress or needs for disaster readiness.”

Health care institutions have invested considerable resources in emergency management preparedness, but because major disasters are rare, they continue to be challenged in evaluating the strengths and weaknesses of their emergency programs. Evidence-based preparedness policies are needed that model current health care quality improvement programs. One way to create such models is to evaluate hospital procedures during times that approach disaster levels. Traditional hospital quality measures, like wait times and missed diagnoses, can be applied, and the results can be compared to peer hospitals to determine strengths and weaknesses.

“It is important that performance standards be established for times of disaster to ensure uniformity across institutions systems, and regions,” said Dr. Lazar. “Ultimately, we must advance achievable recommendations in performance measurement to guide resource allocation during emergencies. Hospital emergency management strategies are essential to our nation’s preparedness.”

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