Volume 3 – Issue 6
January 2009

spacer

Dear Friends,

History will certainly be made next week in Washington and the world will be watching. Pundits and strategists are jumping on the bandwagon with their company's message for change, and our industry is no exception. In this issue, let's explore the real changes that may be afoot with the healthcare modernization movement. I welcome your feedback on the expected impact it may have on those of us working in the industry.

Gene Guselli, President & CEO, InfoMedics Inc.

spacer spacer
spacer
"The Convergence of Circumstance and Agenda…"

President-Elect Barack Obama's quote, recently made on NBC's Meet the Press, is illuminating in relation to healthcare modernization.

Rahm Emanuel, chief of staff, puts it another way. "Where there is crisis, there is opportunity."

Clearly, this new administration will come to Washington with an aggressive healthcare reform agenda and a "window of opportunity" attitude, created by current economic circumstances.

In all likelihood, this healthcare reform movement will produce significant change throughout the healthcare landscape. All stakeholders will be affected. All aspects of healthcare financing, reimbursement, insurance, pricing and delivery models will be impacted.

Many of the details, of course, remain uncertain. The aim of this issue of FUSE is to make some assumptions regarding the impact that healthcare modernization may have on the current delivery model, with a focus on primary care. We will then briefly examine how the pharmaceutical industry could possibly better align with these trends.

The case for reform seems pretty clear. The U.S. is the only developed country without health coverage for all of its citizens. 15.3 percent of the population lacked health insurance in 2007.1 Perhaps as significant, are the additional 25 million Americans who are under-insured. According to a recent Commonwealth Trust Study, 79 million Americans are unable to pay their medical bills2 and more than half of those people were insured.

The justification for healthcare modernization extends well beyond coverage and access. By 2017, healthcare expenditures are expected to consume nearly 20% of GDP or $4.3 trillion annually. Despite these spiraling costs, Americans aren't realizing the benefits of these extraordinary per capital expenditures. The US ranks last out of 19 industrialized countries in unnecessary deaths3 and 29th out of 37 countries in infant mortality.4

I guess some facts just need repeating before they stick.

Currently in the pharma and general health industries there is a tremendous amount of attention and resources being directed and invested in attempting to get closer to the patient. In fact, I've even heard the term "owning the patient relationship" as a priority for many pharma companies. In general, pharma's focus on building stronger relationships with patients is undeniably a good thing. Whether or not the industry has the necessary resources, data, expertise, delivery model relationships, and leverage to truly provide value added services to patients and effect positive outcomes remains to be seen. If, in the end, only more drugs get sold, then once again the industry will be vulnerable to criticism, particularly in this era of reform.

During the last decade, managed care organizations have invested substantial resources in patient/physician-centric solutions targeting chronic care management. These interventions are very comprehensive but have proven to be only marginally successful. By comparison, MCOs are capable of deploying far more significant resources, expertise and leverage over stakeholders than the pharma industry's drug-centric methodologies. Having said that, I would not advise the pharma industry to abandon its quest to get closer to patients, but rather, I would suggest that approaches and expectations of these endeavors be realistically calculated and communicated.

First, let's establish some assumptions regarding likely trends in the US healthcare delivery model during the next three years:

Let's assume that strengthening the role of primary care and chronic care management would be the cornerstones of innovation in the delivery model. And, for good reasons: Currently, 45 percent of the population has a chronic medical condition (half of which are polymorbid).5 Among the Medicare population, 83 percent of individuals has at least one chronic condition and almost a quarter have at least five co-morbidities.6 The US has 87 primary care physicians/100,000 lives, but this ratio has been trending down as primary care residency positions go unfilled and current PCPs leave medicine.7 In Massachusetts, 42 percent of internists surveyed in a recent study have closed their practices to new patients. Average waits for routine appointments with PCPs in Massachusetts increased by over 50 percent since 2006.

blue line

This combination of the demand for chronic care management and the decline in PCP availability is at the core of our nation's healthcare delivery crises. This situation will only be exacerbated by any healthcare reform initiative which would flood the delivery system with new insured patient populations. All stakeholders in the US healthcare system need to recognize and address this fundamental imbalance in the system.

blue line

PCPs (family medicine, general internal medicine, general pediatrics, nurse practitioners, and physician assistants) will be at the hub of this emerging, patient-centered approach to care, in the broad context of the total medical care delivery system. This patient-centered approach is not about Web 2.0, DTC, DTP or CRM. Rather, it's an expanded concept in which each patient will have an ongoing relationship with a personal physician, who will lead a team of providers at the practice level to manage the continuous care of the patient. In this medical home8 model, the PCP will act as the first-line interface for all healthcare related issues and take responsibility for and coordinate all aspects of a patient's care. In this model, patients are active participants in their health and healthcare. The practice has a patient-centered, relationship oriented culture that emphasizes the importance of meeting patients' needs.

Most patients want a strong relationship with a primary doctor.9 More specifically, patients want three things from their general practitioner:

  • First is communication - bi-directional, as frequent as necessary and not necessarily always in person.

  • Second, they want to feel like they're in a partnership with their doctors, and that their beliefs and feelings are being listened to, taken seriously, and acted upon.

  • Third, patients want personalized health promotion and support from their doctors. These would include sound advice, helpful information and education oriented materials and guidance on how to maintain good health.


spacer
In This Issue
spacer
spacer
Hot Off
the Presses
spacer

Adherence Update - the stakes have never been higher and the information more timely! Access the newly released Adherence Survey results -- Get insights and first-hand data from the eyeforpharma Patient Adherence & Persistence Summit attendees, as well as an independent Zoomerang survey, “The Patient Perspective.”

spacer

About Us

spacer

InfoMedics creates an interactive, real-time means for helping patients and physicians better communicate about a diagnosed condition or prescribed treatment.

This results in improved health outcomes and consistent increases in prescribing levels for new prescriptions and refills.

spacer
newspaper

Subscribe to FUSE

Previous Issues


infomedics.com

spacer
spacer

Given this set of patient desires, pharma companies need to be asking themselves how their "patient centered" initiatives can support and contribute to these essential patient interests. Rather than try to pull the patient relationship "off-line," it may be best to design and deploy programs which facilitate these patient-physician relationship needs without interfering or creating additional burden on the busy PCP.

These circumstances in primary care medicine have created vast information and relationship vacuums in our healthcare system. These vacuums are being filled by a plethora of healthcare web 2.0 sites with consumer-generated content and CRM based solutions. However, I believe that these are only temporary solutions which, when patients finally get the kind of care coordination from their PCP that they need, will fade away. I do believe that patients will always see value in information exchange (information with patients with similar conditions), however the management of their care will ultimately reside with their personal physician.

In light of the above, I would offer the following guidance to my colleagues in pharma.

  • Don't be so quick to abandon PCPs for the specialty markets. While I understand and appreciate the attractiveness of this move from a labor and product margin point of view, the action in healthcare modernization will center on the PCP. ICD-9 reimbursement will make a substantial shift in favor of the PCP and away from the specialist and procedural medicine. This will be consistent with a renewed focus on the PCP's role in prevention.

  • Expand your thinking regarding the concept of patient-centered healthcare. This term has much more to do with how the broader healthcare system will function vs. today's tendency to view it as what program will help me hit my patient targets. Remember, in this broader context, while the patient will be more empowered, the physician will be the key player.

  • Try to incorporate a managed care perspective in the design and expectation of your patient-centric programs. Realize your limitations as to what you can realistically expect to impact from a behavioral or outcomes point of view. The thinking here has to be expanded beyond selling more drug as the only objective.

  • Try to work with solutions suppliers who have healthcare experience beyond pharma marketing and promotions. The "treatment package" design necessary to deliver value added services to both patients and physicians will require input from organizations with people who have broad backgrounds in healthcare.

Last, but not least, remember that the power to affect lasting influence in the market lies with your ability to connect patients and physicians. This is the blocking and tackling of healthcare. Stick with this fundamental notion and everything that you do will be substantially enhanced. This country is about to put healthcare on the road to modernization. Are you on the same road?

1 US Census Bureau, "Income, Poverty, and Health Insurance Coverage in the United States," 2007.
2 Karen Davis, "Health of the Private Insurance Market," (Testimony before the House Committee on Ways and Means, Subcommittee on
Health, U.S. House of Representatives, September 23, 2008.
3 Ellen Nolte and C. Martin McKee, "Measuring the Health of Nations: Updating an Earlier Analysis," Health Affairs, 27 No. 1, pp. 58-71; 2008.
4 Marian F. MacDorman and T.J. Mathews, "Recent Trends in Infant Mortality in the United States," Center for Disease Control and Prevention, 2008.
5WU, S, Green A. "Projection of Chronic Illness Prevalence and Cost Inflation," Rand Health, Santa Monica, CA, October 2000.
6 Anderson, GF, "Medicare and Chronic Conditions," Sounding Board, New England Journal of Medicine. 32005; 53 (3): 305-9
7 Commonwealth Fund.org/Publications_HTML?/Doc_ID=50808
8 Marian F. MacDorman and T.J. Mathews, "Recent Trends in Infant Mortality in the United States," Center for Disease Control and Prevention, 2008.
9 WU, S, Green A. "Projection of Chronic Illness Prevalence and Cost Inflation," Rand Health, Santa Monica, CA, October 2000.


lighting the fuse

spacer

That Tie May Just Come Back and Be Fashionable Again

Change was the mantra in 2008 and reform is certainly on the lips of politicians and advocates alike in the new year. Particularly in the healthcare industry, we're likely to see some bold initiatives and new ideas introduced. I'm ready to jump on the bandwagon and I support Gene's contention that we approach much needed healthcare modernization with the patient and doctor at the center of our thinking.

However, this patient-centric concept, of course, isn't new. In fact, these are the very principles I was taught in medical school years ago. Which proves the wise-old saying that "If you wait long enough, that tie will come back into fashion."

It's unfortunate that we moved away from these very core principles of healthcare. But control was lifted from the doctor and the patient by a profit-oriented industry and healthcare's tail has wagged its dog for decades.

The good news is that today's pressures have brought us full circle and back to the fundamental truth about caring for health: It can best be delivered by a doctor who listens (old term) or communicates/partners (new terms) with his patient, and provides individual (old term) personalized (new term) care. I'm encouraged to envision the practice of good, old-fashioned medical care supported by some exciting initiatives, improved communication tools, and helpful educational information – but all designed to reconnect, rather than supplant, the relationship between patients and their physicians.

But we are in the age of "change," so let's call it "reform" and "modernization" and promote the idea of "patient-centered healthcare." Whatever it takes to place the doctor and the patient, once again, at the center of caring for health.

blue line

Shameless Self-Promotion

Utilization and optimization of personal data and communication tools are essential to improving patient/physician dialogue, adherence, and better patient outcomes. Learn how to seamlessly include these key elements and heighten your patient adherence success!


spacer
To read our privacy policy visit www.infomedics.com. © 2009 Infomedics, Inc. All rights reserved.
spacer