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Pricewaterhouse Coopers looks into healthcare crystal ball for 2009 December 30, 2008

Posted by gonzalezloumiet in Health Care, HIT, Obama, Technology.
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12/29/08
 
The Internet and social networking, pay-for-performance, the economic crisis and conversion from ICD-9 to ICD-10 disease code sets are among the top issues facing healthcare in 2009, according to PricewaterhouseCoopers Health Industries Group.
In its annual review of the top concerns for health executives and policymakers released earlier this month, global research and consulting firm PwC says the healthcare industry will face many challenges in the year ahead, including how to deal with more underinsured and fund new cures in a capital-starved market.

The adoption and use of healthcare IT is implicit in several categories, including pay-for-performance and the conversion to a new coding system.

“The coming year will be a watershed for healthcare in the United States,” said David Chin, MD, PricewaterhouseCoopers‘ Health Research Institute Leader.”Severe economic conditions are placing pressure on hospitals, insurers, employers and patients alike. President-elect Obama has called for significant reform for healthcare and will have a Democratic Congress supporting him. The convergence of market and political forces will drive the greatest change in healthcare in a generation, changes that could benefit patients and make the health system stronger.”

The report is an annual review of the most pressing issues for health executives and policy makers. PwC identified nine top issues for 2009:

1. The Economic Downturn Will Hit Healthcare

Although the health industry historically has been less vulnerable to economic downturns than other industries, the disrupted economy will hit healthcare in 2009. Hospitals and other providers, from family physicians to dentists, will experience an increase in bad debt and a drop in elective procedures. Investment portfolios for all health organizations have been affected. The payer mix is shifting away from relatively lucrative commercial insurers and seeing a drop in enrollment and premium revenue – a trend that will likely continue if employment drops further. Charitable donations and investment income are down, and improvement projects involving capital outlays for IT, facilities and equipment, have been put on hold. Pharmaceutical and biotech companies have seen their valuations drop, which could further affect access to additional capital. Health organizations that need to find new sources of capital will have to demonstrate that they’re improving their core businesses, improving efficiencies and delivering value.

2. The Underinsured Will Surpass the Uninsured as Healthcare’s Biggest Headache

The uninsured draw most of the attention, but the number of underinsured is growing even faster – an estimated 25 million adults qualify as underinsured, an increase of 60 percent since 2003. With some but not enough health insurance, the underinsured often can’t or won’t pay the high deductibles and co-pays for the services they need. In 2009, the nation could see more bad debts for hospitals, more cost-shifting to commercial plans and more patients delaying or foregoing care.

With growing unemployment, self-pay is becoming a major part of providers’ revenue cycle processes. Many hospitals have begun to pre-qualify patients. Some are using credit card-like swipe machines to verify eligibility and estimate insurance coverage. Others are using credit cards and extending their own lines of credit. Not-for-profit hospitals must tread carefully, as they don’t want to further complicate the credit for uninsured and low-income patients. Business operations will likely look to technology and processes from the retail, banking and credit industries to manage self-pay patients and the underinsured.

 3. Big Pharma turns to M&A to build the drug pipeline

With revenue from existing pharmaceuticals slowing and a decrease in approved new drugs in the pipeline, Big Pharma is focusing on acquisitions of smaller biotech firms to re-energize the drug pipeline. Cash-rich pharmaceutical companies may be able to find bargains in the mergers and acquisition market as the financial markets continue to hit turbulence.

4. From Vaccines to Regulation, Prevention Is on the Rise

Prevention will get a boost from drug makers, regulators and nonprofit benefactors, making vaccines one of the few bright spots for pharma sales. In addition, more state and local governments are regulating health-related behaviors, such as banning smoking in public areas and trans-fats in foods. Next up for consideration: nutritional posting requirements for fast-food restaurants, limits on where cigarettes may be sold and fees for sugary sodas.

5. Genetic Testing Reaching a Price Point for the Masses

The direct-to-consumer market for genetic testing may take off in the year ahead as costs drop, enabling people to purchase a complete map of their DNA to identify markers for specific diseases such as Alzheimer’s. A federal ban on discriminating against the use of genetic data could accelerate the use of these tests by the public. Research will focus on how genetics can affect pharmaceuticals and enable personalized medicine. The marketing of these tests bypasses traditional clinicians, raising questions about how the information will affect diagnosis and treatment. Regulations regarding genetics at a state and federal level will continue to develop.

6. The Internet and Social Networking Is a Powerful Health Extended

Technology will empower patients in new ways during 2009. The increased information and growing patient-to-patient interaction over social networking platforms and Web sites such as patientslikeme.com and americanwell.com are changing how healthcare is navigated and experienced by consumers, especially as electronic health records become more common.

7. Hospitals Must Perform to Get Paid

Medicare, Medicaid and insurance companies are basing reimbursements to hospitals on performance and, despite resistance, pay-for-performance isn’t going away. In 2009, healthcare providers will have to get serious about not only improving performance but also documenting it. The Centers for Medicare & Medicaid Services (CMS) has proposed adding a new index: the total performance score. It’s part of Medicare‘s move to value-based purchasing. If Congress approves, CMS would replace the current quality reporting system with one in which Medicare withholds between 2 percent and 5 percent of its reimbursements to hospitals. They will need to focus on process improvements to improve safety and avoid unreimbursed medical errors, known as “never events.”

 8. Payers and Employers to Give Incentives for Wellness Programs

More employers will give incentives to encourage responsible health behaviors and participation in wellness and disease management programs. Wellness programs don’t work if employees don’t participate, and most of them don’t, according to research by PricewaterhouseCoopersHealth Research Institute, which found that less than 15 percent of eligible individuals enrolled in wellness programs actually participate. However, they found that workers are two to four times more likely to enroll in wellness programs if they receive gift cards or other incentives. In 2009, health plans will begin to play a more active role in wellness program design, tools and support.

9. ICD-10 Will Require a Major Resource Investment

The conversion in 2009 to a new International Classification of Disease code sets, known as ICD-10, will be a painful and costly process. The federal government has proposed an accelerated timetable for increasing the number of code sets used for billing and clinical classifications from 17,000 to 150,000. In addition to clinical process changes, the entire healthcare system – from quality of care to medical records to incentive salary systems to reimbursement – will have to be adapted. The good news: When it’s done, providers and payers will have far more data on which to document diagnosis, decisions and reimbursement.

Health Care That Puts a Computer on the Team December 27, 2008

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The New York Times


December 27, 2008
The Evidence Gap

MARSHFIELD, Wis. — Joseph Calderaro, 67, is one of health care’s quiet success stories. Over the last four years, he has carefully managed his diabetes by lowering his blood sugar, blood pressure and cholesterol with diet, exercise and medication.

To keep on track, Mr. Calderaro visits his doctor, attends meetings for diabetes patients and gets frequent calls from a health counselor. It is a team effort, orchestrated by the Marshfield Clinic here. And it is animated by technology, starting with Mr. Calderaro’s computerized patient record — a continuously updated document that includes his health history, medications, lab tests, treatment guidelines and doctors’ and nurses’ notes.

To visit the Marshfield Clinic, a longtime innovator in health information technology, is to glimpse medicine’s digital future. Across the national spectrum of health care politics there is broad agreement that moving patient records into the computer age, the way Marshfield and some other health systems have already done, is essential to improving care and curbing costs.

A paper record is a passive, historical document. An electronic health record can be a vibrant tool that reminds and advises doctors. It can hold information on a patient’s visits, treatments and conditions, going back years, even decades. It can be summoned with a mouse click, not hidden in a file drawer in a remote location and thus useless in medical emergencies.

Modern computerized systems have links to online information on best practices, treatment recommendations and harmful drug interactions. The potential benefits include fewer unnecessary tests, reduced medical errors and better care so patients are less likely to require costly treatment in hospitals.

The widespread adoption of electronic health records might also greatly increase evidence-based medicine. Each patient’s records add to a real-time, ever-growing database of evidence showing what works and what does not. The goal is to harness health information from individuals and populations, share it across networks, sift it and analyze it to make the practice of medicine more of a science and less an art.

The Bush administration has left it mainly to advocacy and the private sector to introduce digital medicine. But President-elect Barack Obama apparently plans to make a sizable government commitment. During the campaign, Mr. Obama vowed to spend $50 billion over five years to spur the adoption of electronic health records and said recently that a program to accelerate their use would be part of his stimulus package.

The Marshfield Clinic, a large doctors’ group in Wisconsin, shows that computerized records can indeed improve the quality and efficiency of medicine. Yet the Marshfield experience suggests that the digital record becomes truly useful only when patient information is mined to find patterns and answer questions: What treatments work best for particular categories of patients? What practices or procedures yield the best outcome?

The Marshfield Clinic “understands that it’s a system of improvement that technology makes possible that really matters, and the electronic health record itself is no silver bullet,” said Dr. Carolyn M. Clancy, director of the federal Agency for Healthcare Research and Quality.

For the Obama presidency and the administrations that follow it, the challenge will be to somehow link electronic medical islands into a network that begins to approach on a national scale what organizations like Marshfield have achieved regionally. Ideally, a lone physician in a rural community could tap into the national health information network and be as well informed on treatments and research for patients with certain conditions as a specialist at Marshfield.

Some experts caution that such a broad capacity for record-sharing could take decades to achieve — if it is even possible in the decentralized American marketplace of medical competitors.

Marshfield Clinic, a nonprofit organization founded in 1916, has a long history of using information technology to further research and improve care. In the 1960s, the clinic bought the digital breakthrough of its day — a mainframe computer — and used punched cards to feed it information on diagnoses and procedures. In 1985, the clinic introduced its first basic electronic health records, kept refining them and by 1994 mandated that its doctors all use them. In 2003, it introduced wireless tablet computers, whose screen can written on like digital paper or flipped up, exposing a keyboard, and used as a conventional laptop PC.

Today, Marshfield’s 790 doctors and their support staff at 43 locations in Wisconsin all use the tablet PCs. At the end of last year, the group eliminated paper charts for the more than 365,000 patients its doctors see each year, freeing up storage space the size of a football field at the main clinic in Marshfield. At each step toward a fully digital system, physicians were consulted and involved in the design process.

“It’s been a fabulous journey from physicians being reluctant to now being unable to live without this technology,” observed Dr. Karl J. Ulrich, the clinic’s chief executive. Marshfield is one of a few dozen medical groups across the country that are aggressively embracing information technology. The organizations tend to be big — ranging from providers with thousands of physicians like Kaiser Permanente and the Department of Veterans Affairs to ones with hundreds like Marshfield and Geisinger Health Systems in central Pennsylvania. They are typically responsible for most or all aspects of a patient’s care. They are often insurers, as well.

Those groups, in other words, have the scale and economic incentives to invest in information technology to capture the gains from improved quality and efficiency. In that regard, they lie outside the mainstream of America’s health care economy, a fee-for-service system in which providers are typically paid for doing more, not necessarily doing better. It is a system that encourages more doctor visits, more tests, more surgical procedures, more pills.

For most doctors, who work in small practices, an investment in electronic health records looks simply like a cost for which they will not be reimbursed. That is why policy experts say any government financial incentives to use electronic records — matching grants or other subsidies — should be focused on practices with 10 or fewer doctors, which still account for three-fourths of all doctors in this country. Only about 17 percent of the nation’s physicians are using computerized patient records, according to a government-sponsored survey published in The New England Journal of Medicine.

Even for the large doctor groups, there is no crisp, conclusive cost-benefit arithmetic. Marshfield can point to various measurable savings, but has scant proof they outweigh the millions spent in the past and the $50 million-a-year technology budget.

“People ask about return on investment, but that’s the wrong question,” said Dr. John W. Melski, the medical director of clinical informatics at Marshfield. “This requires the usual leap of faith that knowledge will yield good things — better care, doing things smarter and, yes, saving money in the long run.”

Aided by their growing database, Marshfield’s physician-researchers are working on ambitious projects in personalized medicine that use genetic markers to tailor drug dosages. For example, the clinic recently began a clinical test on 250 patients that uses three gene markers to personalize their doses of Coumadin, or warfarin as the generic drug is known. The blood-thinning drug is widely prescribed for heart patients. But it is often difficult to calibrate the right dose for individuals, and the consequences of internal bleeding or blood clots can be life-threatening. In this case, the electronic health record is the starting point for research, feeding information into the database from which the clinic’s scientists appropriate patients. The digital record holds the patient-specific information used in the Coumadin calculation of tailored doses for individuals.

Marshfield is also researching “predictive” medicine that combines genetics, family histories and lab tests to warn patients about looming health risks. It has a voluntary DNA database on nearly 20,000 people, whose health care information goes back 30 years on average — and the electronic record is the vehicle for collecting and conveying that information. The researchers are looking for patterns in family history, lifestyle, environmental factors, lab test results and selected genetic markers that might predict the onset of conditions like diabetes and Alzheimer’s disease years in advance.

“Better health information technology is needed every step of the way,” said Catherine A. McCarty, director of Marshfield’s center for human genetics and principal investigator for its personalized medicine research project. “We could not do this without the electronic health record.”

The more immediate target, though, is harnessing the digital technology to help manage chronic illnesses like diabetes, heart disease, cancer and asthma. Seventy-five percent of America’s health care spending goes to people with one or more chronic conditions. And as the population ages that percentage is rising.

Marshfield’s progress in recent years with its more than 18,000 diabetes patients, including Mr. Calderaro, points to the potential. The gains are a byproduct of being able to constantly measure and manage health outcomes, a process of efficiently gathering and monitoring patient information that is made possible by the electronic health record. Besides the doctor visits, group meetings and monthly calls from a diabetes counselor, Mr. Calderaro has used all the information to take responsibility for controlling his diabetes. He not only monitors his blood sugar and blood pressure readings, but he could recite the carbohydrate grams in each of the foods he ate one day recently. A three-mile walk is often part of his daily regimen. He was never really heavy, but he has a sister with diabetes and had a maternal grandmother who suffered from the disease.

“If I had known when I was 40 years old what I know now, I would have done things differently,” Mr. Calderaro said.

From mid-2004 through the third quarter of this year, the percentage of the clinic’s diabetic patients with blood cholesterol at or below the recommended level rose to 61 percent, from 40 percent earlier. The percentage with satisfactory blood pressure increased to 52 percent, up from 32 percent.

Over the same span, hospital admissions among Marshfield’s diabetic population fell — to 311 per 1,000 patients a year, from 360. Because a hospital stay for a diabetes patient ranges from $8,000 to $22,500, according to national statistics, Marshfield’s results translate into an annual cost saving of $7.3 million to $20.5 million.

More important may be the suffering avoided. Complications from diabetes include kidney failure, blindness and amputations. “Those are the things that really scare you,” Mr. Calderaro, the patient, said. “But it doesn’t have to be. You can manage it.”

Marshfield is striving to help more of its diabetes patients to do as well as Mr. Calderaro, and the federal Medicare agency has recognized Marshfield’s progress.

In a continuing pilot project, Medicare has selected the clinic and nine other large doctor groups and arranged to pay them for the quality of care they deliver. Last year, on the basis of how well diabetes patients had fared, by various measures, Marshfield was one of only two groups that did well enough to earn bonus payments.

The Medicare pilot prompted Marshfield to take a fresh look at how it cares for various chronic conditions, including heart disease and hypertension. That led to a new software tool, called the iList, which has proved a big help, said Dr. Theodore A. Praxel, Marshfield’s medical director of quality improvement and care management.

The iList (for “intervention list”) culls the patient records of a primary care physician, and ranks and flags patients by conditions not met, including uncontrolled blood pressure and cholesterol, overdue lab tests and vaccinations missed. Nurses and medical assistants then “work the iList,” calling patients with reminders and scheduling them for exams and lab work.

In medicine, the computer is to memory what the X-ray machine is to vision — a technology that vastly surpasses human limitations. The benefits of a computer-helper, doctors say, become quickly evident in everyday practice.

When a doctor electronically prescribes a new drug, for example, an on-screen warning appears if the medication is on the patient’s allergy list or could cause a potentially dangerous interaction with another drug the person is taking. In the New England Journal of Medicine survey, 71 percent of physicians using electronic health records with that feature said they had received a computer alert that helped them avoid a harmful prescription mistake.

“It absolutely happens,” said Dr. Edna O. DeVries, a pediatrician at Marshfield. “You’re distracted and talking to the parents. You’re on autopilot.”

Dr. DeVries, who joined the clinic in 1989, was the medical director nearly a decade ago on a database, created by Marshfield, to track early childhood immunizations in central Wisconsin. Over the next two years, the immunization rates for children in the area rose to 93 percent, from 67 percent, as a result of the tracking and follow-up reminders.

“The quality of care goes up dramatically just by having information instantly,” Dr. DeVries said. Yet, as her colleague and veteran of computer medicine Dr. Melski notes, there is no payoff to technology alone — only in people using technology wisely.

“We have to restructure our medical culture,” he said. “We have to promote a culture that believes in the evidence and is trained in analyzing the evidence. It’s the only long-run answer to the challenges we face in health care — evidence-based medicine.”

INDUSTRY WANTS BLANK CHECK FOR HEALTH IT IN ECONOMIC STIMULUS PACKAGE December 25, 2008

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General Press Releases December 24th, 2008

 

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Washington, DC – Despite the strong commitment by Congress and the President-elect to protect consumers over special interests, a “Confidentiality Coalition” boldly asks Congress to ensure that NO privacy or consumer protections are part of the health IT provisions in the economic stimulus package (see their letter to congress).

Who does the Confidentiality Coalition represent? “Health plans, pharmaceutical companies, vendors, employers, health product distributors, and pharmacy benefit managers”, among others. In reaction to this coalition’s recent letter to Congress, Deborah C. Peel, MD, the founder of Patient Privacy Rights noted, “notably absent from this coalition are patients and doctors, those who stand to lose the most when they lose all control over personal health information and such information is used in ways other than promoting health.”

“At the heart of the argument is whether we have learned anything from years of letting industry set its own rules. Today we face a wrecked world economy because we let the financial industry steer themselves and ’self-regulate’. We must not repeat the same mistake with the health industry,” says Peel.

“Giving for-profit corporations (that have a duty to their shareholders to make money) a blank check for health IT paves the way to establish a goldmine of information that can be used to increase profits, promote expensive — not necessarily more effective — drugs, devices and treatment; cherry pick; and market directly to consumers. Including privacy protections that ensure accountability, control and transparency up front, is the only way to engender public trust and thereby innovate and improve health care.”

Patient Privacy Rights and the Coalition for Patient Privacy, representing over 50 consumer organizations and 12 million Americans, has been working together with Congress to promote health IT while ensuring that our nation’s health IT system does no put Americans’ jobs, access to health care and credit at risk by dismissing the need for ironclad privacy protections. Trust is essential for the public’s willingness to seek treatment and participate in health IT systems.

Read Patient Privacy Rights’s letter to Congress here. PPR urges Congress to ensure accountability, control and transparency with health IT, including the following minimum protections:

ACCOUNTABILITY — Hold every entity with access to health information accountable.

Those who hold or store personal health information should ensure that the data is accurate, reliable and secure1.

Minimum standards should include requirements for: encrypting data in database storage and in transit, limiting access to specific individuals via informed, facilitating electronic consent, and building in audit trails of all electronic transactions.
Congress should authorize and fund Health & Human Services (HHS) and the Federal Trade Commission (FTC) to increase their oversight of data flow and sharing practices including funds for undertaking random audits of contracts. Require breach notification and whistleblower protections.
CONTROL — Ensure individuals control the use of personal health information.
An individual’s right to control how their personal information is used is fundamental to the Code of Fair Information Practices and most professional codes of ethics; the same code should apply to our most sensitive information, our health records.

Codify a federal right to health information privacy.
All systems should ensure individuals can segment sensitive information so safeguards are built in up front.
Provide incentives for health IT systems to use electronic informed consent and innovative consumer privacy controls.

TRANSPARENCY — Protect consumers from abusive practices.
Personal health information shouldn’t be sold and shared as if it were some other commodity like stocks or mortgages2. Healthinformation is significantly different from other data collected by marketers and data miners; it is especially sensitive and can directly impact jobs, credit, and insurance coverage.

Prohibit direct or indirect remuneration for the sharing, disclosure or use of personal health information with limited exceptions for research and public health. Ensure that corporations cannot obtain exclusive or contractual rights to own or control personal health information3.
Personal health information obtained for one purpose must not be used or made available for other purposes without informed consent4. We strongly support provisions re-defining and limiting the broad category of “Health Care Operations.”

1 Code of Fair information Practices, Principle 5
2 See “Evidence of Disclosure,” http://www.patientprivacyrights.org/site/DocServer/Evidence_of_Disclosure.pdf?docID=4501
3 For example, CVS Caremark’s iScribe electronic prescribing program obtains absolute rights to all data inputted into their system via their service agreement with providers allowing them to sell or share the data with third party partners including drug manufacturers, healthcare clearinghouses and data analysis companies.
4 Code of Fair Information Practices, Principle 3

About Patient Privacy Rights

As the nation’s health privacy watchdog, Patient Privacy Rights works to ensure that we don’t have to choose between privacy and health care or health IT. Patient Privacy Rights is a 501(c)(3) nonprofit headquartered in Austin, Texas with an office in Washington D.C., funded solely by individuals. Founded by a practicing physician, our mission is to ensure Americans control access to their personal health information so that we progress with privacy. When our most intimate information can be sold and shared with the click of a mouse, many may lose opportunities for work, wealth and well being.

Patient Privacy Rights leads the bi-partisan Coaltion for Patient Privacy, representing nearly 12 million Americans and including over 50 consumer organizations and technology corporations such as the ACLU, American Conservative Union, American Association for People with Disabilities, AIDS Action, Family Research Council and Microsoft.

Hot Technology That Could Change Health Care December 25, 2008

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Forbes.com

Entrepreneurs
Maureen Farrell, 08.27.08, 7:00 PM ET

 

 

 

Advances in health care run the gamut from mind-boggling medicines to simple Web solutions that, if adopted, could slice huge slabs of fat from a bloated system.

Whatever form innovation takes in the coming years, much of it will spring from start-ups, not pharma and tech giants. “Little companies can work on something that’s not proven and that has a higher risk,” says Brenda Gavin, founding partner of Quaker BioVentures in Philadelphia and former director of GlaxoSmithKlein’s venture fund. If they can find enough funding, entrepreneurs “basically can go for the gold.”

But it’s not just the risk of failure that hampers big companies’ search for game-changing breakthroughs. It’s the constant demand to generate revenue in the here and now to cover all the overhead and hit aggressive growth targets.

In Pictures: Seven Technologies That Could Change Health Care

“Small companies are much more nimble, so they can react quickly,” says Jack Lasersohn, a partner in the Vertical Group, a Summit, N.J., venture capital fund that specializes in medical technology and biotechnology. “You take an idea, and a few months later you can have a company.”

Another structural issue: Health care is an extremely splintered industry. Many new areas of research–such as personalized medicine and digital document retrieval–don’t fit neatly into established divisions within big companies, ultimately thwarting capital investment.

“Too many investors have failed to understand what health care is as an industry,” says Ralph Sabin, a managing director at Pacific Venture Group in San Diego. “[It] isn’t like financial services or manufacturing. It’s an area dominated by nurses, physicians, hospitals and insurance companies and all kinds of different constituencies.”

All of that spells huge opportunities for tech-savvy start-ups–and new hope for sick patients in need of better, less expensive care.

Philadelphia-based Hx Technologies wants to unlock the power of computer networks (a very ’90s concept) and suck costs out of the system by making it easier to transport diagnostic images like CT scans. Amazingly, shuttling these images to doctors for second and third opinions is still done the old-fashioned way–by hand. That can lead to duplicative and potentially dangerous testing. (Hence President George Bush’s mandate that a majority of Americans have electronic health records by 2014.)

Launched in 2000, Hx Technologies estimates that it can eliminate extra tests–and save the U.S. medical system $5 billion to $6 billion a year–by storing medical images so they can be accessed in encrypted form over the Internet. Hx collects setup fees and monthly rent from insurance companies to use the system; doctors and hospitals use it for fee. Tommy Thompson, former secretary of the U.S. Department of Health and Human Services, sits on the board.

The challenge: For this technology to truly take off, Hx will have to blanket the entire hospital system–and that may take a bit more than the $5 million it’s managed to raise thus far from investors including the National Institutes of Health, RK Ventures and Next Stage Capital.

Nurses don’t need to schlep bandages and food–robots can do it better and cheaper, figures Aethon, a Pittsburgh-based developer of mobile robots that use radio frequency identification technology to track and fetch medical supplies. Founded in 2002, the company has raised about $22 million from the likes of Draper Triangle Ventures and Pacific Venture Group.

Aethon’s robots, which it leases for between $1,500 and $2,000 a month, now zip throughout the hallways and supply closets of 100 hospitals in the U.S. Among them: “Tug,” a self-navigating, battery-powered bot the size of a small suitcase that attaches directly to hospital carts and can carry up to 800 pounds. Tug can pick up, sort and deliver medical supplies and meals and run blood samples to labs; he can even ride elevators and open doors.

If you think that stuff is straight out of Star Trek, how about “growing” new organs from the very patients that need them? Launched in 2004, Tengion, based in East Norriton, Pa., aims to do just that.

The process: A doctor takes a tissue sample from a diseased organ and sends it to Tengion’s facility. There, the cells responsible for growth of new tissue are reproduced in a biodegradable “scaffold” made in the shape of the diseased portion of the organ. Several weeks later, surgeons implant the new organ/scaffold structure, leaving the patient’s body to absorb the new organ and excrete the scaffold. Unlike those who receive organ transplants, Tengion’s patients, in theory, won’t need to be on a lifetime regimen of anti-rejection medicine.

So far, the company has invented a way of making a “neo-bladder” based on a patient’s own tissue, and has filed for 70 patents covering the entire process. It plans to eventually move into manufacturing other organs and tissues, including kidneys, blood vessels, hearts, livers and nerves.

Tengion has already raised $150 million in total financing from the likes of Bain Capital, Johnson & Johnson Development Corporation (the consumer giant’s VC arm), Oak Investment Partners and Quaker BioVentures. Not that success is right around the corner–the FDA won’t approve the process until early next decade, says Gary Sender, Tengion’s chief financial officer.

Then there’s the whole push toward truly personalized medicine, which could fundamentally alter the way diseases are diagnosed and treated. Until now, doctors have relied on the law of averages: Clinical drug trials yield data on how many people are helped by a particular treatment; if the success rate is high enough, that treatment gets the nod.

But as the human genome is better understood, it’s becoming apparent that diseases like cancer can be treated in specific ways, based on a patient’s individual genetic code. “Nothing should cause us to expect that one person’s cancer or arthritis or heart disease is like other patients,” says Brook Byers, partner at the Menlo Park, Calif. venture giant Kleiner Perkins Caulfield & Byers. “Standardized treatments will shift to personalized and tailored ones with better outcomes and lower costs.” Personalized medicine has been Kleiner Perkins’ primary area of investment for its life sciences division.

Take its bet on fellow Menlo Park resident Pacific Biosciences. The company is working on a machine that doesn’t just identify DNA strands, but can understand, based on a few drops of blood, how the strands are manufactured, so that they can be sequenced (copied) faster–dramatically speeding up the race for a host of powerful cures. Sequencing a person’s entire DNA now takes about about three years; Pacific Biosciences thinks it can cut the time to three hours.

“If you could sequence people’s DNA thousands of times faster, you could make disease research a software problem,” says chief executive Hugh Martin.

Perfecting that process may take a while. Pacific doesn’t expect its $300,000 to $500,000 machines to hit the market before 2013–but white-shoe investors, including Kleiner Perkins, MDV-Mohr Davidow Venture, and, more recently, Intel, have ponied up $178 million to make it happen.

In Pictures: Seven Technologies That Could Change Health Care

The Future Of Health Care December 25, 2008

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Forbes.com

Health
Rebecca Ruiz, 12.24.08, 4:00 PM ET

 

 

 

It’s not just automakers, finance firms and state coffers that stand to gain from government loans and stimulus spending. If President-elect Obama is able to pass a stimulus package early next year, rumored to cost $850 billion, it could be a boon for the health care industry as well.

In addition to funding an expansion of state Medicaid and the State Children’s Health Insurance Program, the Washington Post has reported there are plans to allocate upward of $10 billion to implement a nationwide, interoperable electronic medical records (EMR) system. The investment could jump-start a flurry of spending on health information technology (IT).

In Depth: The Future of Health Care

If well funded and adopted widely, many different technologies–from electronic records to algorithms to remote monitoring devices–promise to streamline the health care system, saving money and improving services.

“I think we’ll look back and see the real reflection of change,” says Paul Keckley, executive director of the Deloitte Center for Health Solutions, of these technologies’ potential. “We will not be having the discussion about electronic medical records. [That] will be standard.”

The end result, he says, is a future in which health care is more personalized–and frequently delivered outside of the doctor’s office and hospital.

A Costly Proposition
This sounds ideal, but it’s an expensive proposition. Campaign for America’s Future, a liberal think tank based in Washington, D.C., expects a nationwide electronic medical records system to cost $7.6 billion a year over 15 years.

The high cost is due partly to the fact that few providers currently use health IT. By 2006, only 12% of America’s physicians and 11% of its hospitals had adopted computer applications to help modernize their record keeping, according to the Congressional Budget Office.

But there’s a potential return on the high cost. Last week, the CBO released a study estimating that the implementation of health information technology, including EMRs, could save $7 billion in the first five years.

Cost and savings aside, EMRs have the ability to radically change the way patients interact with health professionals.

Dr. Brian Klepper, principal of Health 2.0 Advisors in San Francisco, says that patients have the ability to fully engage in their health care through an EMR. Klepper also owns WeCare TLC, a small business that provides employers with on-site health care clinics and access to EMRs. The bare-bones interface allows a patient to schedule a visit, get reminders about annual check-ups and special exams or review lab test results–explanation of medical terminology included.

A spokesman for the company says that its clients save 15% to 25% of their annual health care costs by paying a flat yearly fee for clinic services. It currently serves 9,000 individuals and operates four clinics in Florida and Georgia.

By scale, WeCare TLC is a tiny player in an industry that includes Google and Microsoft, both of which have launched their own EMR programs. In fact, the breadth of the market raises the question about how patients will have access to uniform and interoperable EMRs–a question that will likely be resolved through financial incentives to health providers to adopt health IT.

Such incentives, Klepper says, must be paired with new technologies in order to see real savings. Otherwise, the health care system will continue to reward service-based treatment instead of superior performance. Given new technological innovations available in certain markets, the level of performance could reach far greater heights.

Technological Wonders
Algorithms, for example, harness advanced computational power to give physicians information about how best to treat each individual patient.

Predictive modeling, a type of algorithm, can draw on billions of specific health indicators and outcomes culled from clinical and claims data while also taking into consideration an individual patient’s health status. Using the rules of probability, a computer can weigh the data against a patient’s particular needs and determine which treatment option is most likely to work.

Another algorithm can take a set of rules for how to treat a disease or condition and translate them into an if-then formula. Such algorithms are derived by a peer-reviewed process in which an expert on a particular health concern–diabetes, for example–develops a comprehensive list of treatment options. Using a computer or handheld device, the physician can then use the algorithm to get a treatment plan based on best practices and the patient’s unique needs.

Unfortunately, says Klepper, doctor offices are reluctant to invest in these devices, which cost about $1 per patient, since the technology doesn’t generate income for the physician.

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The Home Cure

Hot Technology That Could Change Health Care

But there are other tools that are more accessible to consumers.

Keckley, of the Deloitte Center for Health Solutions, points to Medtronic and Intel, two companies that create remote monitoring devices designed to cut down on trips to the doctor’s office and hospital. Some of Medtronic’s cardiac devices, for example, can send data about a patient’s vital signs via the Internet to his or her EMR, which is then accessed by a physician–thus saving a trip to the doctor’s office.

Intel’s HealthGuide, a small box-shaped device for at-home use, is equipped with a video camera for two-way calls between you and your doctor. It also can be connected to devices like blood-pressure monitors and glucose meters; the results are sent to your physician automatically.

Diagnostic tools like these can make a substantial difference in providing high-quality health care, but some companies are also developing technology to lessen administrative demands, which can monopolize a considerable amount of a physician’s time.

Dr. Louis Cornacchia, a physician and president of the company Doctations, has created a suite of Web applications that attempt to seamlessly integrate health records, dictation and transcription services, billing information and communication between doctors and patients. To Cornacchia, tech-savvy health care can certainly save money and time. But more important, it might save lives.

“We are developing what I call digital penicillin,” he says.

In Depth: The Future of Health Care

Connecting The Medical Dots December 23, 2008

Posted by gonzalezloumiet in Data Integration, Health Care, HIT, Interoperability, Technology.
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Connecting The Medical Dots


By Mike Leavitt
Monday, December 22, 2008; A21
Washington Post


Congress is considering adding money for health information technology to January’s stimulus package. Doing so could spur a critical mass of the nation’s doctors to finally enter the information age, but unless the funds are tied to standards for the interoperability of health IT systems, the expenditure could do more harm than good.

Before lawmakers act, they need to think: If stimulus money supports a proliferation of systems that can’t exchange information, we will only be replacing paper-based silos of medical information with more expensive, computer-based silos that are barely more useful. Critical information will remain trapped in proprietary systems, unable to get to where it’s needed.

Health IT systems produce value when they are interoperable. When they’re not, doctors who invest in electronic health records cannot share information with each other or add lab results to your file or send electronic prescriptions to your pharmacist. They would have to use handwritten prescriptions and paper files in addition to their electronic files.

That’s not the way 21st-century health care should work. Today, specialists on a patient’s team need to use interoperable systems that share medical records, prescription histories, lab results, imaging and clinical notes. System standards are needed to protect privacy and ensure that content — such as patients’ diagnoses, allergies, medications, lab tests and medical directives — is standard for every patient, every time.

We’re already on the road to a system that is universally accessible and secure. Health information experts, with coordination by the Department of Health and Human Services, have been working on foundational health IT standards and have made substantial progress. Congress has approved our request for higher reimbursement rates for Medicare doctors who e-prescribe. The Institute of Medicine has estimated that more than 1.5 million Americans are injured annually by drug errors. E-prescriptions can greatly reduce that number.

We’ve also established an independent, voluntary, private-sector certifying body, the Certification Commission for Healthcare Information Technology (CCHIT). This body provides “gold standard” certification that electronic health records meet existing interoperability standards. Any stimulus money for electronic health records should go only to those with CCHIT certification.

Likewise, “infrastructure” investments should go only toward supporting exchanges of electronic health information that are compliant with nationally recognized standards. Indeed, supporting health information exchange would be an infrastructure investment that would accelerate public-private cooperation in standards harmonization and certification.

It is important that standards be vendor-neutral. Government should not be in the business of picking winners and losers.

Despite the urgent need to move beyond paper records, simply offering up funds in the stimulus package will not get the results we want. Instead, it may set our efforts back. Systems will be isolated; data indecipherable; health-care quality unimproved.

If we’re going to build a 21st-century health infrastructure, we need to do it strategically, continuing the careful work on harmonized standards that will create one nationwide, interoperable system. That’s the only way to make an investment in health IT produce value for providers and patients and improve the quality of health care overall.


The writer is U.S. secretary of health and human services.

Hello world! December 23, 2008

Posted by gonzalezloumiet in Uncategorized.
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