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The National Institute

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The Medical Arms Race Syndrome

On July 13, 2006, the National Institute of Health Policy (NIHP) launched its series on The Medical Arms Race Syndrome (MARS).  More than 90 stakeholders representing the healthcare spectrum gathered to share their experience and expertise, and raised important questions surrounding this complex issue.

We invite and challenge you to contribute your expertise now and throughout the upcoming months to help address and answer these questions.  It is only through true community-wide collaboration that improvement can be made. 


The Background of MARS

MARS Events


 

MARS Background
Technology is revolutionizing the way healthcare is delivered in the 21st Century. It is also promising huge financial rewards, not only to inventors but to medical practitioners. In the absence of market mechanisms or rules, the professional line between patient and provider or provider and community interest is not easy to draw.

For decades patients have benefited from cutting edge medical device, pharmaceutical, and biologic innovation - much of which has been generated by creative and talented experts here in the Upper Midwest. Rapid advances occur every day. Unfortunately, health economists attribute much of the increases in U.S. healthcare spending to technology - and have difficulty quantifying off-setting benefits.

Healthcare stakeholders have embraced the power of information technology as well, and hope for a future when the two - medical and information technology - can be seamlessly married to discovery and the clinical data produced by millions of medical events annually to ensure optimal health for all Americans at a price all can afford.

Standing in the way of this needed revolution, however, is the heavy burden of understanding medical investment decisions and defining the role of healthcare payment policy in rising healthcare costs. Increasing utilization, specialization, competition among institutional and individual providers, government payment and purchasing policies, and consumer expectations are just a few of the pressing policy issues.

If we don't understand them, we cannot influence them. As a regional policy collaborative, members of the National Institute of Health Policy (NIHP) believe that only at a community level can we as a society achieve this requisite understanding and the commitment to transformative change.

To better understand The Medical Arms Race Syndrome (MARS)--the interplay between technological innovation, market forces, the role of government, and rising healthcare costs--the NIHP will host a series of dialogues in the coming 24 months. The series will use the NIHP’s neutral, multi-stakeholder forum to highlight the policy barriers and opportunities imbedded in the healthcare technology revolution. It will culminate in a national conference that focuses on the future of the hospital and the promise of technology for changing where and how healthcare is delivered. “Where is My Nearest Healthcare Facility: Optimizing the Healing Power of Innovation.”

The MARS series will include local, regional, and national conversations with national experts in medical and health information technology who will help chart a vision for our community in concert with hospital leaders, public payers, civic leaders, physicians, ancillary health professionals, policy-makers and educators.

The kick-off event for this series – “The Medical Arms Race Syndrome: Defining the Problem” - will take place on July 13, 2006 at the University of St. Thomas Minneapolis Campus. The Citizens League April 2006 report on medical facility expansion in Minnesota provides a useful backdrop for the launch of this series and its authors will be present at the June event.

 

 

Past MARS Sessions

The Medical Arms Race and the Impact of Government Regulation & Payment Systems
featuring Dr. Mark McClellan, former CMS Administrator
October 15, 2008

As part of NIHP's series on the Medical Arms Race Syndrome, Dr. McClellan, former FDA Commissioner and former Administrator of the Centers for Medicare and Medicaid Services, addressed the impact of government regulation and payment systems on the Medical Arms Race.  The NIHP teamed up with the Medical Technology Leadership Forum to host this event, as part of MTLF’s 2007 Fall Forum.

Event Summary (pdf)


Aligning Incentives to Redirect the Medical Arms Race: Value Based Purchasing
featuring Jack Rowe, MD
September 20, 2007
  Event Summary (pdf)
 

MARS: The Business, the Challenges, and the Value of Healthcare

featuring Leonard Schaeffer

June 19, 2007

  Event Summary
  Presentations
 

Cost of New Medical Technology: Can We Afford It?

Medical Technology & Health Care Costs: Can We Change the Relationship? Can We Afford Not to?

Leonard Schaeffer, Founding Chairman & CEO, WellPoint

 

The Medical Arms Race

Ann Robinow, Health Care Consultant

Press

 

Health expert warns of approaching crisis

By David Phelps, Star Tribune, June 19, 2007


MARS: The Value of Innovation

Featuring Uwe Reinhardt, Ph.D.

February 22, 2007

 

 

Event Summary

  Agenda
 

 


MARS: Health System Economics

September 29, 2006

 

 

Event Summary

 
Presentations
 

The New Medical Arms Race 

Steve Parente; Associate Professor of Finance and Academic Director, Medical Industry Leadership Institute, University of Minnesota

 

A Health Economist’s Perspective on the “Medical Arms Race”

Paul Ginsburg; President, Center for Studying Health System Change and lead investigator for the Community Tracking Study

 


MARS: Kick-Off

July 13, 2006

 

 

Kick-off Event Summary

Agenda

  Background Reading
 

Hospital Expansion in Minnesota: Is Growth Worth the Cost?

Developing Informed Decisions: Seeking Market Reforms to Advise Medical Facility Expansion

Competition and New Technology

Health Care Capital Expenditures in Minnesota, 1993 to 2004

Redefining Competition in Health Care

  Presentations
 
Introduction to MARS
  David F. Durenberger; Chair, National Institute of Health Policy
History of Government and Third-party Payer Efforts to Control Health Care Capital Investments
  Michael Scandrett; Health Policy Director, Halleland Health Consulting

Developing Informed Decisions: Seeking Market Reforms to Advise Medical Facility Expansion

 

Duane Benson and Peter Gove; Co-Chairs Citizens League Medical Facilities Committee

Issues Related to Health Care Delivery Capacity in Minnesota
 

Scott Leitz; Director of Health Policy, Minnesota Department of Health

Health Plan Perspectives on Medical Technology

  Michael Morrow; Senior Vice President of Business Development & Network Management, BlueCrossBlueShield of MN

Defining the Medical Arms Race Syndrome

  Kenneth Heithoff, M.D.; Founder, Chairman, & National Medical Director, Center for Diagnostic Imaging
Medical Arms Race
  Allen Horn, M.D.; President, CentraCare Clinic
  Press
 
The 'medical arms race'
  Jeremy Olsen, St. Paul Pioneer Press