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Saturday, January 11, 2020

Princeton economists: Physicians are ‘taking money away from the rest of us’

Princeton University economists and Nobel Prize winners Anne Case, PhD, and Angus Deaton, PhD, have some choice words about physicians and their contribution to the healthcare cost problem in the U.S.
The duo spoke at the American Economic Association’s annual meeting on Jan. 4 about the unnecessarily high cost of healthcare in the U.S., according to The Washington PostThey noted that the cost is so high that American households currently pay $8,000 more each year for healthcare than the Swiss, who have the second most expensive healthcare system in the world.
Drs. Case and Deaton hold all healthcare stakeholders responsible for this cost differential but are “especially critical” of physicians and their income levels.
“We have half as many physicians per head as most European countries, yet they get paid two times as much, on average,” Dr. Deaton said, according to The Washington Post. “Physicians are a giant rent-seeking conspiracy that’s taking money away from the rest of us, and yet everybody loves physicians. You can’t touch them.”
Read more here.

N.Y. governor looks to shift Medicaid burden onto New York City and counties

Gov. Andrew Cuomo says he’s sick of paying New York City’s medical bills.
In his State of the State address, the governor signaled he hoped to sooth the state’s swollen $6 billion budget deficit by making City Hall and other local governments swallow $4 billion in Medicaid costs. New York’s enlarged and politically sensitive low-income insurance program accounts for the majority of the shortfall projected for the coming fiscal year.
Cuomo indicated that the state could save $2 billion just by no longer covering New York City’s local share of Medicaid cost increases—reversing a policy he put in place six years ago.
“We must correct for cost increases incurred when local governments were held harmless by the state for Medicaid increases,” Cuomo said.
But, despite the state absorbing the year-over-year increases, expert analyses find that local governments in New York pay more toward the Medicaid program than counties in other states. In 2018, New York City kicked in $5.3 billion toward its budget.
Cuomo seemed to ignore this fact in his speech, insinuating that the state’s largesse had turned irresponsible municipalities into wild spendthrifts.
“It’s too easy to write a check when you don’t sign it,” the governor asserted. “The situation is unsustainable.”
The governor vowed to “restructure” the program this year and to increase local “accountability.” However, details were lacking both in his address and in his budget, leading Mayor Bill de Blasio to decline to remark directly on the proposal in his press conference after the speech.
“I don’t know what the specific proposal is, because we haven’t seen any details yet,” he said, although he noted the state Legislature had shielded the city from Medicaid cuts in 2016. “I am concerned for sure, but I will reserve judgment until I know more.

Program meant to curb repeat hospital stays fails big test

Researchers thought they had a way to keep hard-to-treat patients from constantly returning to the hospital and racking up big medical bills. Health workers visited homes, went along to doctor appointments, made sure medicines were available and tackled social problems including homelessness, addiction and mental health issues.
Readmissions seemed to drop. The program looked so promising that the federal government and the MacArthur Foundation gave big bucks to expand it beyond Camden, New Jersey, where it started.
But a more robust study released Wednesday revealed it was a stunning failure on its main goal: Readmission rates did decline, but by the same amount as for a comparison group of similar patients not in the costly program.
“There’s real concern that the response to this would be to just throw up our arms” and say nothing can be done to help these so-called frequent fliers of the medical system, said study leader Amy Finkelstein.
Instead, researchers need to seek better solutions and test them as rigorously as new drugs, said Finkelstein, of the Massachusetts Institute of Technology and the National Bureau of Economic Research.
Federal grants and research groups at MIT paid for the study, which was published in the New England Journal of Medicine.
Just 5% of the U.S. population accounts for half of healthcare spending, and hospitalization is a big part.
A decade ago, Dr. Jeff Brenner started working with hospitals in Camden, a city with high poverty and crime rates, to identify people who go to hospitals frequently and target them with special services. He won a MacArthur genius grant for the work, and federal grants expanded the program to Aurora, Colorado; Kansas City, Missouri; Allentown, Pennsylvania; and San Diego. The government also paid for a study to see if it truly worked.
The study enrolled 800 hospitalized Camden patients with at least two other admissions in the previous six months and at least two of these conditions: homelessness, drug use, a mental health problem, trouble accessing services, lack of social support or use of five or more medicines.
Half were given usual care when they left the hospital. The rest were enrolled in Brenner’s program with nurses, social workers and others coordinating their care for three months. Patients received seven to eight home visits and nine phone calls on average. The effort cost about $5,000 per patient.
Six months later, the readmission rate was 62% in both groups, and there was no difference in total healthcare spending.
Researchers don’t know what usual care was for the comparison group. If that suddenly improved, it could explain why the program failed to prove better.
However, two key goals of the program — a home visit and a trip to a health provider within a week of leaving the hospital — were met for only 28% of participants. Homelessness and lack of a telephone were big reasons, and the program more recently has worked harder to get people into stable housing.
“If you’re in a shelter or on the streets, it’s just not easy to help and that sometimes leads to more hospitalizations,” said the Camden project’s leader, Kathleen Noonan.
Three months of help also wasn’t enough, and there weren’t enough places to get help for mental health or substance abuse problems, she added.
“We’ve evolved a lot” since the program began, said Brenner, who now is an executive working on similar programs at the insurance company UnitedHealthcare.
“The system is good at delivering care if you’re an average patient on an average day,” but not for, say, a homeless person in a wheelchair who is disoriented, Brenner said. “These patients have complex problems. If you don’t meet their needs, they’ll keep going to the hospital.”
The program was “clearly done with the best of intentions” and still may have provided useful care to the people who received it even though it didn’t reduce readmissions, said Dr. Aaron Kesselheim, a Harvard Medical School health policy expert who had no role in the work. Problems like readmission are much more complicated than they appear to be, he said.

Ambulatory sector buoys healthcare job growth amid skilled-nursing downsizing

The ambulatory sector fueled healthcare job growth in December, accounting for two-thirds of the expansion.
The ambulatory sector grew by 23,100 jobs while hospitals added 8,800 positions and senior care facilities brought on 2,600 employees, according to preliminary data from the U.S. Bureau of Labor Statistics’ most recent jobs report. But skilled-nursing facilities continued to downsize, shedding 6,700 jobs as the sector adjusts to a new payment model. Thousands of therapists have been laid off over the past year.
Overall, the healthcare industry expanded by 28,100 jobs in December, down from 45,200 in November.
Outpatient care centers added 7,300 jobs, doctor’s offices added 5,400, other health practitioners added 4,900 and home health added 3,900. Employment at dentist’s offices, labs, residential mental health facilities, other residential care facilities and other ambulatory services held relatively steady.
In 2019, the healthcare industry added 399,000 jobs, up 14% from 2018.
The unemployment rate remained at 3.5% in December. Across all sectors, average hourly earnings only increased by 2.9% in 2019 as inflation hovers around 2%.

CVS, Mayo, Tenet among healthcare companies to watch at #JPM20

J.P. Morgan will kick off its 38th annual healthcare conference in San Francisco on Monday, attracting some of the biggest names in healthcare across payers, providers, tech and biopharma.
It’s one of the most influential conferences of the year, bringing together a who’s who of healthcare executives, investors and regulators for three days. As many as 9,000 attendees across 450 public and private companies are expected to make an appearance, according to the investment bank.
This year is poised to bring its own set of political and legal risks as the country creeps closer to the presidential election and the legal threat to kill the ACA looms, potentially by the Supreme Court. Democratic challengers to President Donald Trump have made promises to overhaul the healthcare system to varying degrees, many of which would represent substantial upheaval for the industry.
Here are Healthcare Dive’s top companies to watch at #JPM20.
CVS Health: CVS has made big waves over the past year as the retail behemoth worked to integrate new payer asset Aetna, brought its wellness-focused HealthHUB locations into a handful of new markets and expanded its focus in prescription drug delivery and chronic care management.
The conglomerate continues to look for ways to capitalize on the overlap between Aetna and CVS’ retail hubs, which could guide it toward providing primary care. CEO Larry Marlo has said the company prefers to act as a “complement” to physicians. But analysts warn not to rule out such a move amid potential disruption from the likes of Amazon. And with CVS’ heft, raking in $63 billion in revenue in the third quarter of last year alone, there are few arenas out of its reach.
Intermountain Healthcare: Last year, the Utah-based health system made good on its promise to deliver generic drugs in low supply to hospitals through the country through its Civica Rx venture. Fed up with the high cost of drugs, Intermountain joined forces with other health systems to provide more predictable pricing and access to drugs for its member hospitals.
Civica Rx says 18 medications are now in production. With a willingness to disrupt the status quo, the question now becomes, what’s next for the venture and Intermountain?
Tenet Healthcare: The for-profit hospital operator has continued to trim its hospital portfolio and make key investments in specific service lines and outpatient services. Despite industry headwinds, Tenet reported admission gains for three consecutive quarters (a feat other for-profit operators logged, too).
During a call with investors in November, CEO Ron Rittenmeyer hinted the next move on strategy would likely be discussed at the JPM conference, noting his board had just finished a two-day strategy session.
Advocate Aurora Health and Bon Secours Mercy Health: The two nonprofit systems are on the heels of closing megamergers that created super regional systems. The deals come as evidence that mergers don’t increase quality or lower costs continues to mount. It will be interesting to hear whether these two talk about how they have benefited from the mergers and what’s next for them in terms of strategy and possible further consolidation.

Lyme Disease Vaccine Could Be Ready In 4 to 5 Years

Lyme disease is one of the fastest growing diseases in the northern hemisphere and this week’s announcement that pop star Justin Beiber had the diagnosis brought the tick-borne illness to the forefront of the news. For now, the main prevention lies in avoiding tick contact but one company, Valneva, is working fervently to develop what they believe will be the world’s first vaccine against Lyme’s disease.
Valneva’s has made a name for itself by developing vaccines for in-demand illnesses and now the biotech company has its eyes set on Lyme disease. Their Lyme disease vaccine prototype, VLA15 is currently in Phase 2 developments and is being tested on more than 800 people to measure both efficacy and safety. Although difficult to predict, Valneva’s CEO, Thomas Lingelbach told Forbes that he expected the vaccine to be completed in the next few years.
“Phase 2 will end in the middle of 2020. We expect this will enable us to enter the last clinical phase in mid-2021,” explained Lingelbach. “Depending on those results, we may be four to four and a half years away from the first potential Lyme disease vaccine.”
When completed, the vaccine will likely be administered in three doses, each a month apart. The initial vaccine is expected to last 6 seasons, referring to the time from spring to late summer when the ticks are active and therefore most likely to transfer the illness to humans. After six seasons, Lingelbach believes that boosters will be required, but will likely be needed to be administered every 2-3 seasons.
While Justin Beiber may have brought Lyme disease to the news this week, he is only one of a growing number of new diagnoses. Lyme disease is spread by ticks carrying the bacteria that cause the illness. The bacteria may pass to humans via a tick bite. For a number of reasons, ticks are spreading the disease to humans at higher rates than those in the past. However, according to Lingelbach, and many experts across the globe, climate change is one of the factors in this shift.
“Climate change has an impact on tick populations and the ticks are the main carrier of Lyme disease,” explained Lingelbach.
Typically Lyme disease peaks from spring to late summer, with most cases contracted during this time period. However, a warmer climate is extending the ticks’ peak period, thus extending the time in which they may pose a threat to human populations.
Lyme disease isn’t the only infectious disease that Valneva has its eye on curing. The biotech company is also in the midst of developing a vaccine for Chikungunya, a virus spread through mosquitoes that is particularly common in Africa, Asia and India, the Center for Disease Control and Prevention reports. There is currently no vaccine for Chikungunya, and Valneva also hopes to be the first to develop this drug as well. It may possibly be finished even sooner than a Lyme disease vaccine, Lingelbach explained.

CES: The Coolest AI

As seen at this week’s CES 2020 mega conference, the buzz for AI continues to be intense. Here are just a few comments from the attendees:
  • Nichole Jordan, who is Grant Thornton’s Central region managing partner: “From AI-powered agriculture equipment to emotion-sensing technology, walking the exhibit floors at CES drives home the fact that artificial intelligence is no longer a vision of the future. It is here today and is clearly going to be more integrated into our world going forward.”
  • Derek Kennedy, the Senior Partner and Global Technology Leader at Boston Consulting Group: “AI is increasingly playing a role in every intelligent product, such as upscaling video signals for an 8K TV as well as every business process, like predicting consumer demand for a new product.”
  • Houman Haghighi, the Business Development Partner at Menlo Ventures: “Voice, natural language and predictive actions are continuing to become the new—and sometimes the only—user interface within the home, automobile, and workplace.”
So what were some of the stand out announcement at CES? Well, given that there were over 4,500 exhibitors, this is a tough question to answer. But here are some innovations that certainly do show the power of AI:
Prosthetics: Using AI along with EMG technology, BrainCo has built a prosthetic arm that learns. In fact, it can allow for people to play a piano or even do calligraphy.
“This is an electronic device that allows you to control the movements of an artificial arm with the power of thought alone,” said Max Babych, who is the CEO of SpdLoad.
Today In: Small Business
The cost for the prosthetic is quite affordable at about $10,000 (this is compared to about $100,000 for alternatives).
SelfieType: One of the nagging frictions of smartphones is the keyboard. But Samsung has a solution: SelfieType. It leverages cameras and AI to create a virtual keyboard on a surface (such as a table) that learns from hand movements.
“This was my favorite and simplest AI use case at CES,” said R. Mordecai, who is the Head of Innovation and Partnerships at INNOCEAN USA. “I wish I had it for the flight home so I could type this on the plane tray.”
Lululab’s Lumine: This is a smart mirror that is for skin care. Lumine uses deep learning to analyze six categories–wrinkles, pigment, redness, pores, sebum and trouble–and then recommends products to help.
Whisk: This is powered by AI to scan the contents of your fridge so as to think up creative dishes to cook (it is based research from over 100 nutritionists, food scientists, engineers and retailers). Not only does this technology allow for a much better experience, but should help reduce food waste. Keep in mind that the average person throws away 238 pounds of food every year.
Wiser: Developed by Schneider Electric, this is a small device that you install in your home’s circuit breaker box. With the use of machine learning, you can get real-time monitoring of usage by appliance, which can lead to money savings and optimization for a solar system.
Vital Signs Monitoring: The Binah.ai app analyzes a person’s face to get medical-grade insights, such as oxygen saturation, respiration rate, heart rate variability and mental stress. The company also plans to add monitoring for hemoglobin levels and blood pressure.
Neon: This is a virtual assistant that looks like a real person, who can engage in intelligent conversation and show emotion. While still in the early stages, the technology is actually kind of scary. The creator of Neon–which is Samsung-backed Star Labs—thinks that it will replace doctors, lawyers and other white collar professionals. No doubt, this appears to be a recipe for wide-scale unemployment, not to mention a way to unleash a torrent of deepfakes!