Commentary from Dave DurenbergerJanuary 17, 2008 |
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| NATIONAL HEALTH POLICY | ||
HEALTH POLICY PROGRESS - 2007 The rise in value-based health decision-making reflected in expansion of retail clinics, the sudden talks of value-based insurance benefits, reduction in use of radiology and related diagnostics and payer/provider focus on efficiency and productivity. Accountability is the new goal of more policy changes. More insurance plans, including CMS, are refusing to pay for hospital errors and limiting payment for hospital re-admissions. Hospital charges and the unfairness of overcharge plus the continued efforts at all levels to define and demand community benefit from non-profits. The FDA is doing its best to hold drug and device companies accountable by raising the bar on clinical research and on effectiveness of new products. From drug/device company payments to physicians and surgeons to corporate governance compensation, medical and corporate ethics and morality is alive and receiving well-deserved attention. If not yet as much change as needed. A comparative effectiveness public/private institute for technology and procedures proposal began the year, and Dr. Atul Gawande ended it with an incisive New Yorker piece on the simplicity and life-saving/money saving character of clinical intensive care check lists. HOSPITAL CHECKLIST Minnesota hospitals were the first to voluntarily report events that should never occur in hospitals (to say nothing of mistakes and inefficiencies). Yesterday our Health Department reported hospital "never events" dropped in 2007 from 154 to 125. Deaths from patient falls dropped from 12 to 4, four died from misused or faulty medical devices, two from mismanaged blood sugar. Cases in which surgical items were left in patients dropped from 42 to 27. Unfortunately (if the previous isn't bad enough for those involved), the number of patients who received the wrong surgery doubled from 5 to 10. So what? The Minnesota Hospital Association deserves praise for members' commitments to change, and to the embarrassment of public reporting as a learning tool. But it has been proven to be possible to get much closer to zero defects in every hospital. That's what we deserve. Because hospitals are 24/7/365 operations it isn't easy to shut down, install a zero-defect production system, and then start it up. Pronovost and others have demonstrated that it must be done and it can be done without shutting down and starting over six months later. An endorsement of systemic change as the key to Six Sigma medical production from every hospital and hospital association as a condition to pay increases from large public and private payers is a good place to start. PHYSICIAN CHECKLIST MEDICARE PART D DRUGS A FINANCIAL HOMERUN Stock prices for the corporate intermediaries - health insurance plans and pharmacy benefit management companies went up last year from 55% for Humana to 120% for Express Scripts. On the other hand, research shows Medicare pays about 12% more on average for prescription drugs for seniors it covers than the state Medicaid programs paid before MMA. Medicare spending increased 18.1% in 2006, twice the increase in 2005. Hospital costs were a record $648.3 billion. COMMUNITY BENEFIT
Modern Healthcare's "poster child" for the implied pain of disclosure is our own Mayo Clinic, whose revenue is in the $6-7 billion a year category. Cover girl is Minnesotan Christie Lohkamp, the clinic tax director, who says she'll have to hire a full-time assistant to comply with new 35 to 60 page report forms at each Mayo location. Like many systems, Mayo claims charity care, underpayment for Medicare and Medicaid, as community benefit. It also reports $266 million in 501(c)(3) qualified contributions to the Mayo Clinic Foundation in 2006, an amount which appears to exceed its charity care and "losses" from caring for Medicare and Medicaid patients. How do communities know what they are getting for the tax subsidy, unless you prove it to them with year after year of reliable, consistent performance against stated mission goals? It seems this is the message that the Catholic Health Association has been striving to get across. Putting the messengers to the test of practicing what they preach is likely to be the next step in the process even before the IRS starts translating their new information into legislative policy in 2009-10. MEDPAC STARS DEPART CHANGING THE BEHAVIOR By then we will be equally invested in Iran, Afghanistan and Pakistan and maybe Bangladesh as well. All of this because President Bush chose to fight the "War on Terror" launched subsequent to 9-11-01 in both Afghanistan and Iraq. By consequence of that decision and others that flowed from it, and of the way we fought that war, we are now committed to land presence in a large number of Islamic countries from the Middle East across central to south Asia. Monday four terrorists walked into the Kabul Serena Hotel - one of my favorite chains - and blew themselves up in the lobby. |
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| POLITICS | ||
PRESIDENTIAL LEGACY PRESIDENT BUSH GOES ON THE ROAD Pundits will have a field day comparing what the President says in his last year in office with what he actually did in his first seven years. There are clear inconsistencies. The one that is most troubling for future Presidents is the muddle he has made of "democracy" and "freedom" and "national security." The Middle East trip just ended makes this very clear. With the exception of the oily emirates (Kuwait, UAE, Bahrain) most countries are substantially less well off and all are much less secure. Israel, Lebanon and Jordan are close to basket cases. No one knows what to expect of the United States when its "vital national interests" are perceived to be threatened. See Pakistan.
Father Bush talked during and after "Desert Storm" in 1991 about "a new world order". Son Bush in Abu Dhabi said "this new era is founded on the equality of all people before God (and) is being built with the understanding that power is a trust that must be exercised with the consent of the governed - and must deliver equal justice under the law." Tell that to the 95% percent of the UAE people who are not part of the ruling family. Or to the Dubai's ruler who says "we believe that helping build a strong regional economy is our best opportunity for lasting stability in the Middle East." Then in one of the least democratic of the countries, Bush salutes Egypt's President for life (or until is son takes over) Hosni Mubarak for "Your long and proud tradition of a vibrant civil society." I'll always remember August 29, 1990 in President Mubarak's palace in Alexandria hearing him inform a large delegation of U.S. Senate and House members for the first time that his friend President Bush had forgiven $6 billion in loans in exchange for Egypt's participation in war against Iraq and, in exchange for Mubarak's help with that war by starting a spreading the rumor that the invasion of Kuwait was a grand design by the monarchs of Jordan, Yemen, and Iraq. LOOK OUT AFRICA I know what many of the third world African countries are like. And I know the IFC and its medical enterprise. I once introduced IFC/medical to a Nepalese businessman whose "Karma" was building medical education and hospitals in the remote areas of Nepal. He already built a medical school and had plans for a teaching hospital with 500 beds which would cost $50 million. IFC in Washington referred us to IFC Delhi which said it couldn't be done. They had invested $500 million in a 500 bed hospital in Thailand and insisted that was the price. What I found out was they used their friends in the consulting/architectural construction/medical education business for both estimating and implementing. Last Friday the World Bank, IFC parent, reported at length on fraud in use of their loans in India, including health facilities. IOWA WITHOUT NEW HAMPSHIRE MAKES NO SENSE TAKE YOUR PHONES ON BOARD DOONESBURY FROGS IN BOILING WATER BILL MCGUIRE IN LIMBO In San Francisco this week, U.S. District Court Judge Charles Breyer sentenced Greg Reyes, former CEO of Brocade Communications Systems to 21 months in prison and a $15 million fine for backdating. The case is different from the United case in that Reyes was accused of defrauding investors by making Brocade appear to be more profitable than it was thus making it appear more profitable which allegedly duped investors into pushing up the value of its stock and of Reyes' stock options. But Breyer's comment is telling: "This offense is about honesty." It was about "lying." I guess a good lawyer can distinguish lying to investors from withholding information from directors and investors about the base on which compensation is determined. Judge Breyer will appear at the University of St. Thomas Holloran Center April 2 in a program on ethics in the professions with Watergate felons John Dean and Egil "Bud" Krogh. Breyer's brother Stephen is on the U.S. Supreme Court. |
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| THE NEWS FROM LAKE WOBEGON | ||
Our hero Garrison Keillor and his wife Jennie Lind Nillsen are suing their next door neighbors in St. Paul to keep them from adding a three-stall, two-story garage to their home. Garrison is of the opinion the addition would "impair an adequate supply of light and air" to his 5200 sq. ft home in St. Paul. The neighbors are Paul Olson, former CEO of Blandin Foundation in Grand Rapids, MN, and his fiancé who is one of the many Lori Andersons in Lake Wobegon. They are now in negotiations via third parties at a judge's request. Sarah-Maud Weyerhauser Sivertsen, the last surviving granddaughter of MN lumber magnate Frederick Weyerhauser, died at 100 in her St. Paul home last Saturday. Sarah-Maud and her second husband, Robert Sivertsen, were most instrumental in financing the start-up of the St. John's University radio station's early network which Bill Kling and others, including Garrison Keillor and his Prairie Home Companion, built into Minnesota Public Radio and many related enterprises. Fred Weyerhauser, who in 1998 was declared the eighth richest American of all time, would have been proud of his grand-daughter's foresight. Elsewhere in Lake Wobegon, there was Republican delight and Democratic disappointment with a Federal Transportation Safety Board finding that 40-year old structural design failure was a cause, not necessarily the proximate cause, of the 1-35W bridge collapse last August. Supposedly that lets our MNDOT and Governor off the hook because they weren't around in the 1960s. But accountability demands that those of us who use these public transportation facilities must be able to rely on whoever owns and maintains I-35W - and thousands of other bridges in MN - to assure our safety.
Northwest Airlines was founded in St. Paul in 1927 and has been THE economic powerhouse in this community ever since. Locals have paid to keep the airline here through fees, through taxes, through subsidized loans, and through 21 to 40% higher average fares out of MSP. This includes $380 million in a federal tax subsidy which is money NWA owed the IRS and dumped in bankruptcy. So the news that NWA is talking to its former CEO Richard Anderson at Delta about a merger is a little unsettling. Folks I know who travel a lot much prefer a merger with Continental because of route structure, relationships, and deep commitment to its customers. Good news from Lake Wobegon is that UMN Gopher men's basketball coach Tubby Smith is about to win his 400th basketball game. Other good news is that the St. Paul Minnesota Wild hockey team is playing its 300th straight sold-out NHL hockey game - a tribute to Senator (former Mayor) Norm Coleman, owner Bob Naegele, and GM Doug Risebrough who said it would happen when so many others in the area said it couldn't. They sell 16,000 season tickets in an 18,000 - seat Excel Energy Center and have 7,000 on the waiting list. Naegele this week sold his interest in the Wild to Craig Leipold, a hockey fanatic from Racine, Wi who married an heir to Johnson wax and invested in the Nashville Predators before joining the Wild. Bad news from Lake Wobegon is that we are in a recession. So says Minnesota's chief economist Tom Stinson. He has the facts to prove it and they aren't pretty. No one expects the President of the U.S. to admit to a national recession, so the fact that Stinson will do it makes us wonder why. And what can we do about it if anything. |
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| OTHER NEWS OF NOTE | ||
2007 BOOKS THAT MAKE A DIFFERENCE For those who wonder why change, vision, leadership, experience and all these character traits take precedence over programs and plans in the primary elections, I recommend Ron Brownstein's Second Civil War. A Pulitzer finalist in 1996 and 2004 for his election coverage from the LA Times, Brownstein is a likely winner this year for this penetrating analysis. If I am right about the economy driving public opinion this year and policy-making next year, Supercapitalism, by former Clinton Labor Secretary and current Berkeley professor Robert Reich explains, in a way traditional liberals cannot, what's gone wrong with capitalism and democracy and what can be done to strengthen both. No less an authority than David Leonhardt of the New York Times says that New America Foundation's Shannon Brownlee may have written the best "must read" book on the American healthcare "system." Overtreated: Why too much medicine is making us sicker and poorer and its author is apparently playing to packed houses at it did at the UST Opus College of Business in November.
In 2008 those of us into health policy reform should expect to read former Senate Leader Tom Daschle's Critical: What We Can Do about the Health Care Crisis; former cabinet secretary (in more administrations than anyone) George Schultz will publish Putting Our House in Order: A Guide to Social Security and Health Care Reform, his first effort at health policy reform, in April; Harvard's Clayton Christianson, whose academic specialty has become "disruptive technology," will apply his expertise to the health care system in what is likely to be the "must read/must hear/must pay" book of the year. |
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| QUOTES | ||
"When the tide goes out, you find out who was swimming naked and who dumped garbage on the beach." "People are looking for a presidential candidate who reminds them more of the guy they work with rather than the guy that laid them off." "You have a woman running to break the highest and hardest glass ceiling. I don't think either of us wants to inject race or gender in this campaign. We're running as individuals." "The interesting split (between Clinton and Obama) is not between the feminist and civil rights Old Bulls, its between the establishments of both movements, who emphasize top-down change, and the younger dissenters who don't. This dispute is going to be settled by the rising, and so far ignored, minority group. For all the current fighting, it'll be Latinos who end up determining who gets the nomination. At last, a bridge to the 21st century." "For the last six years, the economy has been growing at a pretty healthy clip. The problem now isn't the level of growth, but how little of it is filtering down to the middle class. In today's economy, middle-class incomes have almost no margin for error. For much of the last 35 years, the incomes of most workers have been growing far more slowly than they once did. In the current expansion, which started in 2001, the median weekly paycheck of workers actually fell 1 percent, once inflation is taken into account, according to the Labor Department. Keep in mind that middle class families have received not only modest raises in recent years; they have also received smaller reductions in their overall federal tax rates than high-income families have." Tick, Tock - Tick, Tock I said, 'June 21.' 'Nope...the day before Christmas!' And so the holiday associated with the winter solstice, the shortest day, becomes the longest. It's that way with time, isn't it? The hands of the clock tell us very little about our experience of time, except that it continues to fly and that for us, time is not in infinite supply. Yet even when time seems to drag, the time of our lives is moving swiftly. Let us, therefore, pour ourselves into our time even as Christ emptied himself into time, the outset of which event we celebrate at Christmas. May the ongoing relevance of that event in time mark every day of our lives." - By the Rev. Donald Meisel, D.D., Ph.D., Seeing Through The Cross "Her response to happenings and circumstances is always so wonderfully apt...Of course, she enjoys the inestimable advantage of never looking at TV, listening to radio, or reading the newspapers, and so can have a clear notion of what is really going on in the world; the siren- voice of consensus does not reach her." |
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| © 2008 National Institute of Health Policy |