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Friday
Jul272018

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition

By Claire Thayer

Every business day, MCOL posts feature stories making news on the business of health care. Here are five we think are particularly important for this week:

Trump administration to push forward on Medicaid work requirements after court loss

The Trump administration on Thursday said it would continue approving Medicaid work requirement requests from states, despite a district court ruling last month that blocked such requirements in Kentucky.

The Hill

Thursday, July 26, 2018

House delays Obamacare health insurance tax, expands Health Savings Accounts

The House has passed healthcare bills to delay the health insurance tax in Obamacare and to expand the use of Health Savings Accounts ahead of its summer recess.

Washington Examiner

Thursday, July 26, 2018

House votes to repeal ObamaCare medical device tax

The House on Tuesday voted to repeal ObamaCare’s medical device tax, a provision that members of both parties have criticized as harming innovation.

The Hill

Wednesday, July 25, 2018

As Health-Care IPO Boom Continues, Wall Street Tells Investors to Buy

Health-care companies are going public at a startling rate and analysts are as bullish as ever as they kick off initiations of five companies today. The companies range from one developing so-called “off the shelf” immunotherapies to a commercial-stage medical device maker with a non-invasive treatment for depression.

Bloomberg

Tuesday, July 24, 2018

Health care industry branches into fresh meals, rides to gym

That hot lunch delivered to your door? Your health insurer might pick up the tab. The cleaning crew that fixed up your apartment while you recovered from a stroke? The hospital staff helped set that up.

AP News

Tuesday, July 24, 2018

These and more weekly news items on the business of healthcare are featured in the MCOL Weekend edition, along with the MCOL Tidbits, and more, for MCOL Premium level members.

Wednesday
Jul252018

The Sounds of Silence

By Kim Bellard, July 25, 2018

Listen closely, healthcare organizations and professionals: those sounds you are not hearing are the voices of people not speaking up, including patients. And that’s a problem.

Let’s start with the elephant in the room: a new study found that even when physicians actually asked patients why they were there, on average they only listened to the patient’s explanation for eleven — that’s 11 — seconds before interrupting them.

Think about that, and then think back to a doctor’s visit you had about something that was worrying you: could you have explained it in eleven seconds?

Believe it or not, that’s not the worst of it. Only 36% of the time did patients even get a chance to explain why they were there. Even then, two-thirds of them were interrupted before they had finished.

Primary care doctors did better, allowing 49% of patients to explain their agenda for being there, versus only 20% for specialists. Hurray for the primary care physicians…

The researchers say there are many reasons why physicians aren’t listening better, including time constraints, burnout, and lack of communications training. But still…11 seconds? For the minority that even get the chance to talk?

As Bruce Y. Lee said in Forbes, “A doctor’s visit shouldn’t feel like a Shark Tank pitch.”

As bad as this is, it is not the only area where not feeling able to speak up is a problem in healthcare. For example, a study in BMJ Quality and Safety found that 50% to 70% of family members with a loved one in the ICU were hesitant to speak about common care situations with safety implications.

It’s not just patients who are silenced. One study found that 90% of nurses don’t speak up to a physician even when they know a patient’s safety is at risk. Another survey, of medical students in their final year of school, found that 42% had experienced harassment and 84% had experienced belittlement.

A couple of years ago ProPublicalooked at why physicians stay silent about other physicians they know commit medical errors, including ones who do so repeatedly. One physician, speaking about his hospital, told them:

There’s not a culture where people care about feedback. You figure that if you make them mad they’ll come after you in peer review and quality assurance. They’ll figure out a way to get back at you.

It’s about power: who has it, or at least who we think has it. We trust our doctors (although not as much as our nurses!). We assume that more experienced doctors have more knowledge than newer doctors, that doctors know more than nurses, and that healthcare professionals know more than we do. We’re at the bottom of the knowledge tree.

But that may not be true. Dave deBronkart — e-patient Dave — likes to cite Warner Slack’s great quote: “Patients are the most underused resource.”

But healthcare professionals must be willing to listen, and they must ensure that they ask. And we must take the initiative to speak up.

Our values are wrong if we allow reimbursement considerations to squeeze our time with physicians to the point we’re not talking and they’re not listening. Our values are wrong if we’re conditioned to think our opinions and concerns do not matter. Our values are wrong if everyone is not only empowered but also expected to speak up, especially when we see or experience something we think is a problem.

Anybody listening?

This post is an abridged version of the posting in Kim Bellard’s blogsite. Click here to read the full posting

Friday
Jul202018

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition

By Claire Thayer, July 20, 2018

Every business day, MCOL posts feature stories making news on the business of health care. Here are five we think are particularly important for this week:

Top News From the Past Week as reported from key news services, and compiled by MCOL

Doctors Raise Alarm About Shortages Of Pain Medications

In hospitals across the country, anesthesiologists and other doctors are facing significant shortages of injectable opioids.

NPR

Friday, July 20, 2018

Merck joins the list of drug makers agreeing to freeze or lower some prices

As political pressure on the pharmaceutical industry builds, Merck has become the latest big drug maker to commit to halting price hikes.

Stat News

Thursday, July 19, 2018

CMS plots path forward for Kentucky work requirements after court setback

The Trump administration is redoubling efforts to allow Kentucky to impose controversial Medicaid work requirements after a federal court halted its attempt to overhaul the safety-net program three weeks ago.

Politico

Wednesday, July 18, 2018

Walmart Names Humana Veteran to Run Its Health and Wellness Unit

Walmart Inc. has hired a former senior executive at insurer Humana Inc. to run its health-care business, a move that could reignite speculation that the two companies will forge a closer partnership.

Bloomberg

Tuesday, July 17, 2018

Health Insurers Are Vacuuming Up Details About You — And It Could Raise Your Rates

To an outsider, the fancy booths at a June health insurance industry gathering in San Diego, Calif., aren't very compelling: a handful of companies pitching "lifestyle" data and salespeople touting jargony phrases like "social determinants of health."

NPR

Tuesday, July 17, 2018

These and more weekly news items on the business of healthcare are featured in the MCOL Weekend edition, along with the MCOL Tidbits, and more, for MCOL Premium level members.

Friday
Jul202018

Consumers and Digital Technology: What’s the Deal With Healthcare?

by Clive Riddle, July 20, 2018 

The Deloitte Center for Health Solutions has just released some preliminary findings from their 2018 Survey of U.S. Health Care Consumers, which will be published in August, on the heels of their recently released Deloitte 2018 Survey of U.S. Physicians. Deloitte shares that “consumers and physicians typically agree that virtual health care holds great promise for transforming care delivery. Yet many physicians remain reluctant to embrace the technologies, worried about reimbursement, privacy and other issues.”

Thus Deloitte found consumers are well ahead of providers on the technology acceptance curve, and many providers are dragging their feet in meeting rising consumer demand in this arena. Dr. Ken Abrams, managing director, Deloitte Consulting tells us "Changes in health care reimbursement models, combined with growing consumer demand, are driving health systems to embrace virtual care, but they are struggling to get physicians on board."

The Deloitte surveys found:

  • 64% of consumers and 66% physicians “cite improved patient access as the top benefit of virtual care.”
  • “About half of physicians surveyed agree that virtual care supports the goals of patient-centricity, including improved patient satisfaction (52% agree) and staying connected with patients and their caregivers (45%  agree)
  • “While 57% of consumers favor video-based visits, only 14% of physicians surveyed have the capability today, and just 18% of the remainder plan to add this capability.”
  • “Clinicians worry about medical errors (36%) and data security and privacy (33%) associated with virtual care.”
  • “Email/patient portal consultations are the most prevalent virtual care technology used by responding physicians (38%), followed by physician-to-physician consultations (17%) and virtual/video visits (14%).”

Moving beyond just virtual care, and examining the healthcare digital experience as a whole, the global brand and marketing consultancy Prophet has just released a two part report: Making the Shift, Part I Healthcare’s Transformation to Consumer-Centricity (25 pages) and Part II  A Culture Change Playbook for Healthcare Transformation (also 25 pages.) They found that “ healthcare providers, payers and pharma companies are not making significant strides toward consumer centricity despite increasing demands and competition for healthcare dollars.”

Jeff Gourdji, a partner at Prophet, tells us  “consumers want to be treated as powerful participants in their own health.  Increasingly healthcare organizations’ own bottom lines require meeting consumers halfway or more. So, it is increasingly in everyone’s best interests to make sure consumers are empowered, engaged, equipped and enabled so they become what we call the ‘e-consumer.’”

Prophet paints the picture at the start of their report like this: “With the rise of digital technology, consumers have unprecedented power. Consumers expect business categories like retail and consumer goods to provide individual experiences across both the physical and digital worlds. While other businesses are shifting their focus toward delivering meaningful and valuable consumer experiences, healthcare has largely stayed the same. And, until recently, it hasn’t had the imperative to change. However, pressures from governments and employers to lower costs and pressures from consumers to meet ever rising expectations means that driving consumer engagement and redefining how healthcare organizations interact with people is no longer a luxury, but a necessity. While healthcare organizations are feeling pressure to upgrade their consumer experience, with a focus on how to engage and empower consumers, the path to accomplishing this is unclear.”

Immediately below this intro, the next section header asks “What’s the Deal with Healthcare?” They share survey results that “81 percent of consumers are dissatisfied with their healthcare experiences, and the happiest are those who interact with the system the least.”

Some of Prophet's other survey findings include:       

  • “Fewer than 10% of all healthcare organizations say they are “most willing” to partner with digital companies     
  • Only 21% of respondents believe that ‘practical and important innovation is coming from digital startups’ compared to over 50% of respondents who believe this innovation is coming from providers and medical device companies         
  • "Only about a quarter (27%) of surveyed companies measure relationship metrics like Net Promoter Score despite evidence that consumer metrics are critical to driving a commitment to consumer centricity.”
  • "Only 15% of respondents reported a willingness to consider adding leadership from outside the industry, even when those leaders would be supported by a healthcare-savvy team.

Prophet goes on to share on elaborate on “five shifts that organizations must prioritize to reshape into more consumer-centric businesses:

  1. Moving from tactical fixes to a holistic experience strategy
  2. Moving from fragmented care to connected ecosystems
  3. Moving from population-centric to person-centered
  4. Moving from incremental improvements to extensive innovation
  5. Moving from insights as a department to a culture of consumer obsession
Friday
Jul132018

The Physician’s Role in Today’s Healthcare Costs

By Clive Riddle, July 13, 2018

Influencing consumer behavior to reduce healthcare costs via cost sharing and engagement strategies, and purchaser cost containment strategies of all stripes have seemingly dominated discussions of regarding the cost of healthcare. So how to physicians feel about their role in the cost equation today?

A new seven page NEJM Catalyst Buzz Survey report sponsored by University of Utah Health has just been released: Cost of Care and Physician Responsibility.   The report presents findings from the University’s survey examining how clinicians view health care costs. They “found that while clinicians feel a great sense of responsibility around keeping costs affordable for patients, they don’t feel they have the tools to know, the time to discuss, or the ability to impact how much things costs,” and furthermore “the survey results show a disconnect: Physicians feel responsible for the cost of care to a patient, but not accountable for it,”

99% of surveyed physicians said that out of pocket costs are important to patients – 62% said extremely important, 32% said very important and 5% said important.  Physicians were asked “Do the following aspects of cost enter into clinical decisions at your organization?” 76% said yes to Cost to practice/system; 72% said yes to Out-of-pocket cost for patients; 68% said yes to Total cost of care; and 36% said yes to Contribution to overall national health costs.

How much impact does each of the following stakeholders have on the cost of health care? The percentage of physicians saying each stakeholders had a strong impact were:

  •           Pharmaceutical/biotech companies  - 87%
  •           Health plans/HMOs/insurers – 81%
  •           Hospitals/health systems/physician organizations – 75%
  •           Government/regulators – 67%
  •           Individual clinicians – 60%
  •           Employers – 28%
  •           Patients – 26%
  •           Medical device manufacturers – 23%

The percentage of physicians agreeing with the following statements were as follows:

  •           Health care costs are too confusing with current payer mix – 90%
  •           Physicians aren’t trained to discuss the cost of care – 86%
  •           The tools necessary to estimate costs to the patient are not available – 78%
  •           Tools necessary to estimate costs to health care delivery system, not available –77%
  •           There isn’t enough time in clinic to discuss cost of treatments with patients – 64%
  •           Physicians should make the best treatment decisions irrespective of cost – 57%
  •           Physicians should be held accountable for the cost of care to a patient – 28%
  •           It’s not the physician’s responsibility to educate patients about costs – 18%

Current strategies involving physicians are focused at the organizational level, such as with value based care and accountable care arrangements. When you get at the individual level, these survey results indicate that it would seem there is a reason current cost strategies emphasize purchaser and consumer solutions.

Friday
Jul132018

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition

By Claire Thayer, July 13, 2018

Every business day, MCOL posts feature stories making news on the business of health care. Here are five we think are particularly important for this week:

CMS promises to ‘restore the doctor-patient relationship’ with 2019 proposed rule

The Centers for Medicare & Medicaid Services (CMS) issued a proposed rule on Thursday making what officials called “historic changes” to the Medicare program aimed at restoring the doctor-patient relationship.

FierceHealthcare

Friday, July 13, 2018

A Simple Emergency Room Intervention Can Help Cut Suicide Risk

Many people who attempt suicide end up in an emergency room for immediate treatment. But few of those suicide survivors get the follow-up care they need at a time when they are especially likely to attempt suicide again.

NPR

Thursday, July 12, 2018

Amazon Has Global Aspirations for Medical-Supplies Marketplace

Amazon.com Inc. has global aspirations for its medical-supplies marketplace, according to a job listing posted on its website, highlighting the e-commerce giant’s sweeping ambitions to disrupt health care by selling products to hospitals, doctors and dentists and offering prescription drugs.

Bloomberg

Thursday, July 12, 2018

Insurers Urge a Quick Fix After Obamacare Payment Suspension

Insurance-industry groups are pushing the Trump administration to resolve a legal dispute that led to the suspension of billions of dollars of payments that help stabilize Obamacare’s markets.

Bloomberg

Wednesday, July 11, 2018

Judge blocks Kentucky’s Medicaid work requirement

A federal judge has blocked Kentucky from instituting the first-ever Medicaid work requirements, potentially dealing a major blow to the Trump administration's efforts to scale back the health care program for the poor.

Politico

Monday, July 9, 2018

These and more weekly news items on the business of healthcare are featured in the MCOL Weekend edition, along with the MCOL Tidbits, and more, for MCOL Premium level members.

Friday
Jul062018

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition

By Claire Thayer, July 6, 2018

Every business day, MCOL posts feature stories making news on the business of health care. Here are five we think are particularly important for this week:

CMS Postpones Deadlines for New Bundled Payments Model

Bundled Payments for Care Improvement (BPCI) Advanced applicants now have until Aug. 8 to submit signed participation agreements and select care episodes.

RevCycleIntelligence

Friday, July 6, 2018

Dems Want to Focus High Court Fight on Abortion, Health Care

In the budding battle royale over the Supreme Court vacancy, what's the Democratic sweet spot between satisfying liberal activists' demands for an all-out fight against President Donald Trump's pick and protecting senators facing tight re-election races in deeply red states?

The Associated Press

Friday, July 6, 2018

Drugmakers try evasion, tougher negotiations to fight new U.S. insurer tactic

In the escalating battle over U.S. prescription drug prices, major pharmaceutical companies are scrambling to limit the economic damage from a new U.S. insurer tactic that coaxes patients away from expensive drugs.

Reuters

Thursday, July 5, 2018

Despite U.S. Court’s Ruling, Medicaid Work Requirements Advance In Other States

The fallout from Friday’s federal court ruling that struck down the Medicaid work requirement in Kentucky was swift.

Kaiser Health News

Monday, July 2, 2018

More Americans pay for ACA health plans, despite Trump administration moves to undercut law

The number of Americans who bought and began to pay for Affordable Care Act health plans grew slightly this year, despite repeated efforts by the Trump administration to undermine the insurance marketplaces created under the law, new federal figures show.

NY Times

Monday, July 2, 2018

These and more weekly news items on the business of healthcare are featured in the MCOL Weekend edition, along with the MCOL Tidbits, and more, for MCOL Premium level members.

Friday
Jun292018

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition

By Claire Thayer, June 29, 2018

Every business day, MCOL posts feature stories making news on the business of health care. Here are five we think are particularly important for this week:

Amazon Makes $1 Billion Splash in Health Care, Buying PillPack

Amazon.com Inc. is buying its way into the heart of the U.S. health-care system, instantly shaking up a prescription-drug industry already in the midst of a broader transformation.

Bloomberg

Thursday, June 28, 2018

The High Toll of High-Deductible Health Care Plans

Bloomberg looks at an important trend in health care coverage: the rise of employer-based high-deductible plans that mean many patients and families simply can’t afford to get sick.

Fiscal Times

Wednesday, June 27, 2018

Gawande’s Goal Is Providing The ‘Right’ Health Care In New Venture By 3 Firms

Dr. Atul Gawande, the famed surgeon-writer-researcher chosen to lead a joint health venture by three prominent employers to bring down health costs, said his biggest goal is to help professionals “make it simpler to do the right thing” in delivering care to patients.

Kaiser Health News

Tuesday, June 26, 2018

House overwhelmingly passes final opioid package

The House on Friday overwhelmingly passed sweeping bipartisan opioid legislation, concluding the chamber’s two-week voteathon on dozens of bills to address the drug abuse epidemic.

Politico

Monday, June 25, 2018

Reversal of Fortune: Obamacare Rate Hikes Pose Headache for Republicans

Obamacare premiums are once again poised to spike by double digits in 2019, causing heartburn for politicians as voters will head to the polls within days of learning about the looming hit to their pocketbooks.

Politico

Sunday, June 24, 2018

These and more weekly news items on the business of healthcare are featured in the MCOL Weekend edition, along with the MCOL Tidbits, and more, for MCOL Premium level members.

Thursday
Jun282018

Five Questions for Kelly Proctor, Physical Environment Sector Lead, DNV GL Healthcare: Post-Webinar Interview

By Claire Thayer, June 28, 2018

Recently, Kelly Proctor, Physical Environment Sector Lead, DNV GL Healthcare, participated in a Healthcare Web Summit webinar discussion on Workplace Violence, Security Vulnerability Analysis, and Ensuring Sound Security Management. If you missed this informative webinar presentation, watch the On-Demand version here. After the webinar, we interviewed Patrick on five key takeaways from the webinar:

 1. What is ISO 9001?

Kelly Proctor: ISO 9001 is a Quality Management System that ensures risk based thinking and continual improvement.

2. Why introduce ISO 9001 to hospitals and tie this to the accreditation process?

Kelly Proctor: ISO 9001 when implemented properly will ensure that the hospital considers all risks both internally and externally while building an effective Quality Management System. The Quality management system will be the infrastructure for all the other standards and requirements for the organization as well as serve as the quality improvement program forcing the hospital to consider risks, both internally and externally. A strong ISO 9001 program will improve processes and sustainability.

3. Your webinar focused on Security Management and specifically NFPA 99 2012 Chapter 13.  Can you define this for our audience?

Kelly Proctor: All CMS reimbursed hospitals are required to follow the National Fire Protection Agency (NFPA) 99 2012 Edition and NFPA 101 2012 Edition standards. CMS allows hospitals to exclude Chapters 7, 8, 12 and 13 of the NFPA 99 2012 standards however DNV-GL does not allow its client hospitals to exclude chapters 12 (Emergency Management) and Chapter 13 (Security Management). Chapter 13, has a focus on the security of the hospital and requires the hospital to identify its security risks, areas to be secured, abduction risks and security measures, Work Place Violence and more.

4. In your discussion on the value of conducting a thorough Security Vulnerability Analysis (SVA), you've indicated that this should be considered as living document.  Can you tell us more?

Kelly Proctor: The SVA should be considered a living document because as your security risks change so should your SAV. NFPA 99 requires an annual review of the SVA however if there are changes in the hospital risks the SVA should be adjusted to reflect these changes.

5. What are the 7 building blocks for developing an effective workplace violence prevention program?

Kelly Proctor: These 7 building blocks can be found in the NIAHO standards Revision 18 under the interpretive guidelines. They are as follows:

• Establishment of a Threat Assessment Team

• Hazard Assessments

• Workplace Hazard Control and Prevention

• Training and Education

• Incident Reporting, Investigation, Follow-up and Evaluation

• Recordkeeping

Wednesday
Jun272018

My Care. Your Rights

by Kim Bellard, June 27, 2018

I have, it seems, been laboring under a misconception. All these years I liked to believe that the healthcare system was about the patient. That was naive. I knew that a few people in healthcare were too focused on the money part of things, but what I was not paying enough attention to was that, for some healthcare professionals, what they do is about their beliefs, not my care.

The case in point was the recent situation in Peoria, Arizona, where a young woman was denied service by her pharmacist. Nicole Arteaga was nine weeks pregnant when her doctor told her the baby’s development had ceased. The doctor gave her an option for a surgical procedure or for a prescription drug that was likely to cause her to miscarry, and she choose the latter.

The pharmacist understood what the drug did, questioned why she was taking it, and refused to refill it due to “ethical reasons” — which is permissible under Arizona law (and in several other states). As she detailed in a Facebook post:

Ms. Arteaga ultimately was able to fill her prescription at another pharmacy — across town . What if there hadn’t been another pharmacy in town, or another pharmacist who didn’t have a “moral objection” to filling her prescription? What if, for medical reasons, there hadn’t been time to investigate other options?

Example number two: the Supreme Court just overturned a California law that required “crisis pregnancy centers” to tell pregnant women about the availability of abortion services. These centers typically oppose abortion on religious grounds. Justice Kennedy concurred with the majority, claiming: “Governments must not be allowed to force persons to express a message contrary to their deepest convictions.”

Governments have, of course, for years had no qualms about requiring abortion providers provide a number of messages that are contrary to their deepest convictions — some states require that they require pregnant women to get medically unnecessary ultrasounds before obtaining an abortion! — but apparently it matters whether you agree with the message or not.

None of this should, in 21st century America, be a surprise. We now have a “Conscience and Religious Freedom Center” within HHS, aimed at protecting “health care providers who refuse to perform, accommodate, or assist with certain health care services on religious or moral grounds.”

But it is not just federal law and it is not just about abortions. In Texas, for example, pharmacists have “exclusive authority” about whether to dispense a drug. They can choose when they do not wish to, and they don’t have to explain why then they opt not to.

Where does the line get drawn? What about a healthcare professional refusing to treat gay patients? What about one refusing to treat minority patients? What about male healthcare professional refusing to treat a female patient?.

You see, it’s not supposed to be about their religious or moral beliefs. They have every right to have them, and to express them. But when someone becomes a healthcare professional, it’s not supposed to be about them or their beliefs. It is supposed to be about what is best for the patient. It is about using their medical knowledge and training to help the patient as best they can, to the utmost of their abilities.

Our healthcare professionals don’t have to be like us. They don’t even have to like us, and they certainly don’t have to agree with us. But when we can’t depend on them doing what is best for us, then we’ve got a real problem.

This post is an abridged version of the posting in Kim Bellard’s blogsite. Click here to read the full posting

Friday
Jun222018

A Visit to Planet Gawande

By Clive Riddle, June 22, 2018

We still don’t know much at all about what the heck the Amazon-Berkshire-JPMorgan healthcare triumvirate will be doing. But we do now know who will be running it. The renowned Dr. Atul Gawande has been appointed its Chief Executive Officer, effective July 9th.

https://upload.wikimedia.org/wikipedia/commons/thumb/5/56/Atul-Gawande_%28cropped%29.jpg/220px-Atul-Gawande_%28cropped%29.jpg

 The announcement quotes Atul: “I’m thrilled to be named CEO of this healthcare initiative. I have devoted my public health career to building scalable solutions for better healthcare delivery that are saving lives, reducing suffering, and eliminating wasteful spending both in the US and across the world. Now I have the backing of these remarkable organizations to pursue this mission with even greater impact for more than a million people, and in doing so incubate better models of care for all. This work will take time but must be done. The system is broken, and better is possible.”

Amazon’s Jeff Bezos says “we said at the outset that the degree of difficulty is high and success is going to require an expert’s knowledge, a beginner’s mind, and a long-term orientation. Atul embodies all three, and we’re starting strong as we move forward in this challenging and worthwhile endeavor.”

For those who don’t already know all there is to know about Atul Gawande, let’s take a quick visit to Planet Gawande and check out the man who will be commanding the mystery ship Amazon-Berkshire-JPMorgan.

Atul’s website homepage succinctly provides this description: Atul Gawande is a staff writer for The New Yorker, and author of four books; (2) Atul Gawande practices general and endocrine surgery at Brigham and Women’s Hospital; and (3) Atul Gawande is Executive Director of Ariadne Labs, a joint center for health systems innovation. Of course, item #3 will require editing. As the already updated Ariadne Labs website announces “Atul Gawande transitions to Chairman and becomes CEO of new health care organization.”

What are Atul’s roots? He was born in 1965 in “Brooklyn, New York, to Indian immigrants to the United States, both doctors. His family soon moved to Athens, Ohio, where he and his sister grew up, and he graduated from Athens High School in 1983.”

As an undergraduate and in medical school, he dived into the worlds of politics and healthcare policy. He volunteered for Gary Hart's and Al Gore's presidential campaigns. He served a health-care researcher for Rep. Jim Cooper (D-TN). He became Bill Clinton's healthcare lieutenant during the 1992 campaign. He served as senior HHS advisor after Clinton's inauguration and directed one a committee in the Clinton Health Care Task Force, before returning to medical school, re3ceiving his MD in 1995.

During his residency his career as a writer launched with Slate, and soon he was writing essays for the New Yorker. His June 2009 New Yorker essay, The Cost Conundrum was widely read and influential,  in which he compared the health care of two towns in Texas to show why health care was more expensive in one town compared to the other.. He continues to occasional whip out New Yorker Essays, with these being the titles of his works during the past 18 months:

  • Curiosity and What Equality Really Means, The New Yorker, Jun 2, 2018
  • Is Health Care a Right?, The New Yorker, Oct 2, 2017
  • How the Senate’s Health-Care Bill Threatens the Nation’s Health, The New Yorker, Jun 26, 2017
  • Trumpcare vs. Obamacare, The New Yorker, Mar 6, 2017
  • Trumpcare, The New Yorker, Feb 27, 2017
  • The Heroism of Incremental Care, The New Yorker, Jan 23, 2017

He has also written more technical papers and studies in journals including the New England Journal of Medicine and has authored four books:

Of Gawande’s most recent book, Malcolm Gladwell wrote, “American medicine, Being Mortal reminds us, has prepared itself for life but not for death. This is Atul Gawande’s most powerful – and moving – book.”

Of course, the platforms from which Gawande has drawn the experiences and perspectives that he writes about is from being a clinician, researcher and academian. He practices general and endocrine surgery at Brigham and Women's Hospital in Boston, Massachusetts. He is a professor in the Department of Health Policy and Management at the Harvard T.H. Chan School of Public Health and the Samuel O. Thier Professor of Surgery at Harvard Medical School.

His outside affiliations have included Ariadne Labs where he has been Executive Director, Lifebox, Safesurg.org, WHO Safe Surgery Saves Lives initiative and the Center for Surgery and Public Health.

Ariadne Labs might be the most instructive, in regard to the approaches Guwande might take in his new gig. Ariadne Labs is a joint center between Brigham and Women’s Hospital and the Harvard T.H. Chan School of Public Health, founded in 2012 by Gawande and others.

Here’s more about Ariadne Labs direct from their website – which says their mission is “to find solutions to some of the most complex problems in health care, including life-threatening errors in surgery, maternal and neonatal mortality, failures in end-of-life care, and fragmented and ineffective primary health care systems. Leveraging a network of expertise across the Harvard-Brigham system, Ariadne Labs’ designs, tests, and spreads simple solutions to address failures in health care delivery worldwide.”

Here’s what Ariadne Labs lists as its more prominent innovations:

  • The Surgical Safety Checklist, developed in collaboration with the World Health Organization, shown to reduce post-surgical deaths and complications by 47 percent worldwide.
  • OR Crisis Checklists, a compendium of 12 checklists to guide surgical teams through critical lifesaving steps when sudden emergencies occur in the OR. In simulation testing, Ariadne Labs demonstrated that when the checklists are not used, clinical teams completed only 77 percent of lifesaving steps in an emergency. When the teams used the checklists, they completed nearly 100 percent of lifesaving steps.
  • The Safe Childbirth Checklist, developed with the World Health Organization to address the major causes of maternal and neonatal mortality. Implemented with Ariadne Labs BetterBirth Program of peer-to-peer coaching, the intervention has demonstrated significant improvement in the quality of care during labor and delivery in low-resource settings.
  • The Delivery Decisions Team Birth Project, a solution package aimed at reducing C-section rates in the U.S. by improving communication between clinicians and laboring women, defining the basic care women in labor should receive and prioritizing women’s preferences for care. The project is being tested with tens of thousands of patients across the United States.
  • The Serious Illness Conversation Guide, a structured tool to help clinicians and patients have meaningful conversations about what matters most to patients. The guide is the centerpiece of the Serious lllness Care Program, a systems-level intervention to ensure that all patients with serious illness receive care that aligns with their goals and values.
  • The Primary Health Care Vital Signs, a global data resource for measuring and monitoring the strength of primary care systems in countries around the world, developed with the World Bank, WHO, and the Bill and Melinda Gates Foundation as part of the global Primary Health Care Performance Initiative.

We’ll all stay tuned to see what happens next on Planet Gawande.

 

Friday
Jun152018

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition

Every business day, MCOL posts feature stories making news on the business of health care. Here are five we think are particularly important for this week:

Court rules insurers not entitled to ObamaCare payments

A federal appeals court on Thursday ruled that insurers are not entitled to collect billions of dollars they claim the federal government owes as part of an ObamaCare program.
The Hill
Thursday, June 14, 2018

How America Got Hooked On A Deadly Drug

An inside look at how Purdue Pharma pushed OxyContin despite risks of addiction and fatalities. Purdue Pharma left almost nothing to chance in its whirlwind marketing of its new painkiller OxyContin.
Kaiser Health News
Wednesday, June 13, 2018

An unlikely winner from the AT&T-Time Warner decision — CVS Health

Shares of drugstore CVS Health jumped Wednesday, a day after a federal judge decided to permit AT&T's bid for Time Warner in what many on Wall Street are considering a tacit go-ahead for other so-called vertical mergers.
CNBC
Wednesday, June 13, 2018

Fed Up With Rising Costs, Big U.S. Firms Dig Into Healthcare

At its Silicon Valley headquarters, network gear maker Cisco Systems Inc is going to unusual lengths to take control of the relentless increase in its U.S. healthcare costs.
Reuters
Monday, June 11, 2018

How early retail health clinics set the stage for today’s mega-mergers

Fifteen years ago, we launched Take Care Health Systems, a pioneering company in retail health clinics. Little did we know that our clinics, and similar ones that followed, would become an important component of the current merger and acquisition and partnership activity currently reshaping health care.
Stat News
Monday, June 11, 2018

These and more weekly news items on the business of healthcare are featured in the MCOL Weekend edition, along with the MCOL Tidbits, and more, for MCOL Premium level members.

Friday
Jun152018

Healthcare Organization Mobile Device Use: Check That Pager

By Clive Riddle, June 15, 2018

The list of benefits derived from mobile device use by clinicians and staff at healthcare organizations is a long one. But the challenges exacted comprise a worrisome list topped by privacy and cybersecurity concerns. Organizations who promote or allow BYOD (Bring your own device) of course have significantly enhanced concerns.

So in this context its worthwhile to take a gander at the eighth annual Spok survey report: Mobile Strategies in Healthcare Results Revealed. The good news is that 57% of healthcare organizations surveyed have developed a documented mobile device strategy. The bad news is 43% have not.

They respondents say these are the challenges they are facing

  • Wifi coverage – 51%
  • Cellular coverage – 40%
  • Data security – 34%
  • Compliance with BYOD policies – 34%
  • IT support – 29%
  • Mobile adoption rates – 28%

For those with a strategy, here’s the top seven components included:

  1. Mobile management and security - 56%
  2. Mobile device selection - 51%
  3. Integration with the EHR - 48%
  4. Infrastructure assessment (wireless and mobile) - 45%
  5. Clinical workflow evaluation - 43%
  6. Device ownership strategy (such as BYOD) - 34%
  7. Mobile app strategy (in-house, third-party, hybrid) - 29%

How well are these policies enforced? 39% said extremely well, 33% said well. 24% weren’t sure and an honest 4% said poorly. With respect to validating compliance, 48% use education, 42% gather data from the devices, 37% seek feedback from the end user, 23% take surveys, and an honest 21% said they aren’t doing any validation.

With respect to devices they organization supports, 74% said smart phones, 69% wifi phones, 56% onsite pagers, 54% tablets, 45% wide area pagers, 22% encrypted pagers, 12% voice badges and 6% wearables.  

Perhaps the biggest surprise I found in the report was this passage: “Pagers are still a mainstay in healthcare. Despite the growth of other communication tools, they remain at a relatively high level of use as other mobile devices complement them (without necessarily replacing them altogether). In fact, onsite pagers are the most popular communication option for non-clinical care team members such as housekeepers, transport techs, and phlebotomists.” For non-clinical staff 54% listed some type of pager as their primary communication device (onsite 40%, wide area 10% or encrypted 4%/) Wifi phones came in at 15% and smartphones at 14%.

Friday
Jun082018

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition
 

Every business day, MCOL posts feature stories making news on the business of health care. Here are five we think are particularly important for this week:

 

Justice Department takes aim at heart of health law

The Trump administration said in a court filing late Thursday that it will no longer defend key parts of the Affordable Care Act, including the requirement that people have health insurance and provisions that guarantee access to health insurance regardless of any medical conditions.

The Associated Press

Friday, June 8, 2018

CDC: Suicide rates on the rise in almost every state

Suicide rates are on the rise in almost every state, according to a new analysis released Thursday by the Centers for Disease Control and Prevention (CDC).

The Hill

Thursday, June 7, 2018

Medicare Financial Outlook Worsens

Medicare’s financial condition has taken a turn for the worse because of predicted higher hospital spending and lower tax revenues that fund the program, the federal government reported Tuesday.

Kaiser Health News

Tuesday, June 5, 2018

Judge orders Maine to implement voter-approved Medicaid expansion

A Maine court has ordered the state to move ahead with Medicaid expansion, which was approved by voters last year but blocked by Republican Gov. Paul LePage.

The Hill

Monday, June 4, 2018

Medicare drug prices up 77% despite decrease in prescriptions, OIG finds

Despite an overall decrease in prescriptions, prices for Medicare Part D brand-name drugs are rising — and so are beneficiaries' out-of-pocket expenses, according to a report from the Office of the Inspector General.

Becker's Hospital Review

Monday, June 4, 2018

 

 

These and more weekly news items on the business of healthcare are featured in the MCOL Weekend edition, along with the MCOL Tidbits, and more, for MCOL Premium level members.

 
Thursday
Jun072018

The 260 Page 2018 Annual Medicare Trustees Report and the Part D Rx Share of the Pie

By Clive Riddle, June 7, 2018

 

This week CMS released the 2018 Annual Medicare Trustees Report, which provides a financial/actuarial analysis of the current state of the Medicare Fund, and projections regarding the Fund solvency going into the future.  The big takeaway always emphasized from the report is at what year in the future will the Fund become insolvent, but there really is a lot of historical information in the report worth a gander.

 

In regard to when the Fund is projected down, we are told the “Trust Fund will be able to pay full benefits until 2026, which is three years earlier than last year’s projections, attributable to adverse changes in program income. The Trustees project that total Medicare costs (including both HI and SMI expenditures) will grow from approximately 3.7 percent of GDP in 2017 to 5.8 percent of GDP by 2038, and then increase gradually thereafter to about 6.2 percent of GDP by 2092.”

 

But in addition to the voluminous portion of the report dedicated to projections taking us to near the end of the century, there’s plenty of history and present tense buried in the 260 page report as well. Here’s a snapshot from the report of Medicare in 2017:

It’s interesting to look out what portion of the expenditures are from Part D. On a gross basis, $100.1 Billion in Prescription Drug expenditures out of $702.1 Billion in benefits represents 14.3% of benefit expenditures.

 

But not all beneficiaries have Part D coverage, so that’s not an apples to apples percentage.

Looking at 2017 benefits for Part A, Part B, Part C and Part D combined, total benefits were $702.1 Billion, of which 29.9% ($209.7 Billion) was spent through Part C, the Medicare Advantage program. Given the analysis doesn’t break down the benefit expenditure categories for the contracting Part C Medicare Advantage plans, here’s a breakdown of the Regular Medicare expenditures including Part D (backing out Part C):

  • Hospital:  43.6% ($197.9 Billion)
  • SNF: 6.2% ($28.3 Billion)
  • Home Health Care: 4.1% ($18.4 Billion )
  • Physician Fees: 15.2% ($69.1 Billion)
  • Prescription Drugs (gross adjusted): 13.5% ($61.6 Billion)
  • Other: 17.4% ($78.8 Billion)

Regarding the Gross Prescription Drugs adjustment: You will note the above Prescription Drugs total $61.6 instead of the $100.1 Billion in the above snapshot. That’s because the Medicare Advantage Part C enrollees with Part D enrollment were backed out, given that the other benefit expenditure categories didn’t include a breakdown from Part C. So the Part C enrollment in Part D plans, as a percentage of total Part D enrollment – taken from the December 2017 Medicare Advantage/Part D Contract and Enrollment Data Summary Report - was extrapolated (61.5% of Part D Enrollees are not enrolled in Part C; 61.5% of $100.1 Billion in total Prescription Drugs expenditures = $61.6 Billion.)

 

But the only problem with stopping there, is not all regular Medicare beneficiaries are enrolled in Part D. There were 43.2 million PDP enrollees at the end of 2107, while there are 58.5 million total Medicare beneficiaries. Of the 15.3 million 2017 beneficiaries with no Part D, 1.9 million were from Part C, leaving 13.4 million regular(non-part C)  Medicare beneficiaries with no Part D, and 26.2 million with Part D, out of a total 39.6 million regular Medicare beneficiaries. Now if we extrapolate 66% (26.2/39.6 million) for regular Medicare with Part D, from the other benefit expenditure categories (reducing the expenditures by one third for the other categories) we can get an apples to apples look.

 

This will reflect the percentage benefit expenditures extrapolated for Regular Medicare beneficiaries with Part D coverage:        

 

  • Hospital:  40.7% ($130.6 Billion)
  • SNF: 5.8%  ($18.7 Billion)
  • Home Health Care: 3.8% ($12.4 Billion )
  • Physician Fees: 14.2% ($45.6 Billion)
  • Prescription Drugs (net adjusted): 19.2% ($61.6 Billion)
  • Other: 16.2% ($52.0 Billion)

 

19.2% of the Medicare benefit pie for prescription drugs, get us a lot closer to the Milliman analysis just conducted for AHIP in the commercial population, which found Rx representing 23.3% of total costs including administration. If we add in the extrapolated portion (66%) of the $8.2 Medicare administrative expenses from the above snapshot, the regular Medicare prescription drug portion represents 18.9% including administration.

Friday
Jun012018

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition
 

Every business day, MCOL posts feature stories making news on the business of health care. Here are five we think are particularly important for this week:

 

Why the Trump administration made it easier for Virginia Republicans to expand Medicaid

In becoming the first state in nearly two years to open Medicaid to more of its poor residents, Virginia lawmakers found political buffering and momentum in a recent conservative health policy shift in Washington.

The Washington Post, Thursday, May 31, 2018

 

Number of opioid prescriptions falls for fifth year in a row

The number of opioid prescriptions issued nationwide has dropped by 22 percent between 2013 and 2017, which a doctors group touted as progress in fighting the epidemic of opioid addiction.

The Hill, Thursday, May 31, 2018

 

When Scientists Develop Products From Personal Medical Data, Who Gets To Profit?

If you go to the hospital for medical treatment and scientists there decide to use your medical information to create a commercial product, are you owed anything as part of the bargain?

NPR, Thursday, May 31, 2018

 

How drugmakers are facing the entrance of consumer giants into healthcare

The wave of consumer companies deepening their forays into healthcare, coupled with broader health system change and questions about advertising effectiveness, has spawned a bracing set of conditions for drugmakers. On one hand, they're expanding beyond a traditional reliance on pharmaceuticals as a sole value proposition.

MM&M, Tuesday, May 29, 2018

 

What hospitals, payers, and pharma think about buying generic drugs from Intermountain's startup

The overwhelming majority of providers said they'd buy medications from a health-system-led pharma company, and both providers and payers believe other hospitals will follow the lead of Intermountain, SSM Health and Trinity Health in forming their own generic drug companies.

Healthcare Finance News, Tuesday, May 29, 2018

 

 

These and more weekly news items on the business of healthcare are featured in the MCOL Weekend edition, along with the MCOL Tidbits, and more, for MCOL Premium level members.

 
Friday
Jun012018

Anthem, IngenioRx and Taking a Total View of the Prescription Drug Trend

Anthem, IngenioRx and Taking a Total View of the Prescription Drug Trend
 

By Clive Riddle, June 1, 2018

 

In the crossover worlds of national pharmacy chains, PNMs and health plans, we have witnessed the emergence of CVS-Aetna , Cigna-Express Scripts, and the UnitedHealthGroup’s OptumRx fueled by its 2015 acquisition of Catamaran, plus the rumored Walmart Humana pairing. Meanwhile, Anthem took a somewhat different approach, starting their own PBM from scratch instead of acquiring or merging with someone on in the Rx aisle. Thus last October Anthem announced the launch of IngenioRx, which will assume Anthem’s PBM business when its current commitments expire in 2020.

 

IngenioRx, thus sidelined for another year and a half – and looking to improve its visibility while gearing up – just released just released a Drug Trends Report in the same style as other national PBM reports, not letting the fact that it not yet operational serve as a roadblock. Instead, they focused reporting on the current Anthem book of business that they will be serving.

 

With that in mind, here’s what they shared for Anthem’s 2017 commercial population, emphasizing they were examining the total drug trend, including medical benefit and prescription benefit utilization, unlike many reports from others that are only positioned to report on the prescription benefit experience:

·         21% of Anthem’s total drug spend was administered via the medical benefit,, and 79% via the pharmacy benefit. For specialty drugs only, the breakdown was 42% medical benefit and 58% pharmacy benefit.

·         Anthem’s total drug trend was 2.0%, comprised of -4.6% non-specialty drug spend and 9.9% specialty drug trend.

·         Anthem’s 2.0% total drug trend drivers included 5.6% inflation, 1.2% new drugs costs, -0.8% reduction in utilization, and -4.0% decrease in costs due to management approaches. For non-specialty drugs, inflation was 4.9%; for specialty drugs inflation was 6.5%.

 

Carving out the prescription benefit to independent PBMs in the health plan world created three inefficiencies: (1) inability to manage the total drug trend due to some drugs administered through the medical benefit, as IngenioRx points out; (2) doesn’t allow for optimal coordination of care between the prescription and medical treatment components; and (3) creates duplication of administrative resources required in administering eligibility and reporting for the two components.

 

If IngenioRx remained just an in-house PBM for Anthem, taking the total drug trend management view will be easier, But Anthem’s IngenioRx will be a stand-alone PBM, pursuing other business as well, and requiring its own separate administrative systems, making taking a total view for the Anthem book of business a little more challenging.

 
Friday
May252018

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition
 

Every business day, MCOL posts feature stories making news on the business of health care. Here are five we think are particularly important for this week:

 

Insurers, small businesses praise move to delay Obamacare health insurance tax

After logging a victory in Congress to suspend a controversial Obamacare tax beginning in 2019, health insurers and small businesses are now setting their sights on 2020.

Washington Examiner

Thursday, May 24, 2018

 

Pfizer Settles Kickback Case Related To Copay Assistance For $24M

Pfizer will pay the government nearly $24 million as part of a settlement to resolve allegations that it funneled money through a foundation resulting in illegal kickbacks.

Kaiser Health News

Thursday, May 24, 2018

 

Drugmakers Blamed For Blocking Generics Have Jacked Up Prices And Cost U.S. Billions

Makers of brand-name drugs called out by the Trump administration for potentially stalling generic competition have hiked their prices by double-digit percentages since 2012 and cost Medicare and Medicaid nearly $12 billion in 2016, a Kaiser Health News analysis has found.

Kaiser Health News

Wednesday, May 23, 2018

 

Insurance Consolidation May Soon Include Hospitals, Create Powerhouses

The continued market consolidation and efforts to create an “all-in-one” approach to healthcare insurance customers may lead to carriers acquiring large hospital networks, particularly if the CVS-Aetna transaction proves to be successful and profitable, one analyst says.

HealthLeaders Media

Wednesday, May 23, 2018

 

Kaiser Permanente commits $200M to reduce homelessness

Kaiser Permanente is teaming up with mayors of a number of American cities to fight housing insecurity and homelessness. The Oakland, California-based integrated health system said late last week it will invest up to $200 million.

Healthcare Dive

Tuesday, May 22, 2018

 

 

These and more weekly news items on the business of healthcare are featured in the MCOL Weekend edition, along with the MCOL Tidbits, and more, for MCOL Premium level members.

 
Wednesday
May232018

Too Many Poor Excuses

Too Many Poor Excuses
 

By Kim Bellard, May 23, 2018

 

I am so tired of reading yet another story about how we — Americans — cannot afford things. Not luxury item. Increasingly, it seems like too many of us can’t afford what most people would consider basics — food, housing, child care, transportation.

 

And health care, of course.

 

new study by the United Way ALICE Project found that 51 million households can’t afford a basic monthly budget that includes food, housing, health care, child care, and a cell phone. That is 43% of all U.S. households.

 

ALICE stands for Assets Limited, Income Constrained, Employed. Of the 51 million households, two-thirds are ALICE ones. These are working households that, in a prior era, might have been thought of as middle class.

 

Now they are living paycheck to paycheck, and fearing sudden expenses — like an unexpected health care bills. Maybe they can’t afford their insulin, their inhalers, or their epipens anymore. And, of course, God forbid they end up in the emergency room or get out-of-network care.

 

Indeed, a hospital stay may result in a permanent reduction in income, even if you have insurance, according to a study released earlier this year. We shouldn’t be surprised that the Commonwealth Fund recently found that the percentage of Americans who feel confident they can afford the health care they need continues to fall. Only 62% re very or somewhat confident, down from 69% just three years ago. Twenty-four percent reported health care has become harder to afford over the last year.

 

Another new study found that 40% of us skipped a recommended test or treatment due to cost, and 44% skipped seeing a doctor when sick or injured due to concerns about costs. More feared the cost of a serious illness than they did the serious illness itself.

 

That is seriously wrong.

 

And there are no signs of anything improving. The number of uninsured is rising again. Actions by the Trump Administration to undermine the ACA exchange markets are estimated to have drastic increases on health insurance premiums — potentially jumping by 35% to 94% over the next three years. Plus, HHS has proposed rules for so-called short-term health insurance policies that the CMS

 

Actuary says will simply increase costs for everyone else, not to mention that those “covered” under those policies will find that coverage to be skimpy if/when they need it.

 

This all adds up. Kaiser Health News reports that, in addition to bankruptcies due to health care bills, nearly 40% of adults under 65 have had their credit scores lowered due to medical debts. A 2014 Consumer Financial Protection Bureau report found that almost 20% of credit reports had at least one medical collection account listed.

 

The sad truth is that only 39% of Americans say they could handle an unexpected expense of even $1,000 — and 34% had had a major unexpected expense over the past year. Not surprisingly, we are doing a terrible job saving for retirement. Increasingly, we’re both saying we’ll have to rely on Social Security for our retirement income, while lamenting that we’re not very confident it will be there when we need it.

 

These problems are not about our having enough money. We do. They are not just problems for “poor people.” They are problems for the majority of us. These are problems of priorities, and somewhere along the way our have gotten screwed up.

 

We’re making too many poor excuses for not doing more and for not doing better. It’s time to stop.
 
This post is an abridged version of the posting in Kim Bellard’s blogsite. Click here to read the full posting

 
Friday
May182018

Six Things To Know From Deloitte Research on Health Plan Government Business

Six Things To Know From Deloitte Research on Health Plan Government Business
 

By Clive Riddle, May 18, 2018

 

This week, Deloitte Center for Health Solutions’ Andreea Balan-Cohen, Ph.D., and Maulesh Shukla gave a presentation on Medicare Advantage and Medicaid Managed Care Trends: Deloitte Research in a live HealthcareWebSummit event.

 

The basis for their discussion was Deloitte Center for Health Solutions analysis of financial performance trends in the US fully insured health plans market between 2011 and 2016. This research series was divided into three chapters: Chapter 1, published in December 2017, provided summary observations on overarching developments in the market. Chapter 2, published in March 2018, focused on trends in health plan government programs, specifically Medicare Advantage and Medicaid managed care. Chapter 3, forthcoming later this month, will focus on trends in the commercial individual and commercial group lines of business.

 

Here’s six key findings they shared on U.S. health plans’ government business:

1.     Government programs accounted for a large and growing share of health plan revenue and underwriting gains.

2.     The Medicare Advantage business experienced significant top-line growth and bottom-line volatility, including a notable decline in underwriting performance in 2014 and 2015.

3.     In Medicaid managed care, aggregate plan revenue increased steadily between 2011 and 2016, and underwriting performance grew impressively before retrenching in 2016.

4.     The largest Medicare and Medicaid plans by national revenue captured a disproportionate and growing share of industry underwriting gains.

5.     Medicare Advantage performance variation widened beginning in 2014; smaller plans and newer entrants experienced substantial headwinds.

6.     Medicaid managed care markets exhibited widening performance variation at the company and state levels beginning in 2014.