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Joe Hage
🔥 Find me at MedicalDevicesGroup.net 🔥
February 2012
Humor: Insurance Company Frustrated By Another Cancer Patient
24 min reading time

There is a humorous article, “Insurance Company Frustrated By Another Cancer Patient” on “The Onion,” a satirical fake news site.

(Warning: The article contains profane language at .)

An excerpt: Frustrated executives from the Blue Cross Blue Shield Association announced Friday that they are getting “frustrated” by Allentown, PA resident Matthew Greison, a 57-year-old man suffering from an advanced form of Hodgkin’s lymphoma.

Stressing that this is not the first issue they have had with such patients, company sources expressed their outrage to reporters over Greison’s “totally unfair” comprehensive health care benefits and claimed the skyrocketing costs of his cancer treatment have gotten out of hand.

“We got the first bill and just couldn’t believe how expensive it was,” said Blue Cross Blue Shield CEO Scott Serota, adding that at first, he thought the invoice was a mistake. “Every visit to the oncologist ran about $140, not to mention the thousands of dollars for every MRI and CT scan, and then the chemotherapy and cancer drugs were more than $10,000 per month. And he paid for maybe —maybe— 5 percent of it. The rest was dumped on us.”

Is it funny because it is true?

We talk a lot about how “unsustainable” healthcare costs are.

According to The World Bank, 18 percent of America’s Gross Domestic Product is spent on healthcare. (What is it in your country?)

And Forbes reports an average wage-earning male will receive $180,000 from Medicare over his lifetime, having paid in only $61,000. Because she will live longer, a female will receive $207,000.

If “it can’t go on this way,” practically speaking, what do you think will be done? (Be constructive, please.)

What is our responsibility as medical device manufacturers to curb healthcare spending? What is the impact on our industry?

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Next week I’m hosting a webinar on contemporary online medical device marketing strategies.

If you’re not satisfied with the quality or quantity of your leads, listen in.

It’s free for Medical Devices Group members at http://medgroup.biz/meddev-mktg-strategies and I’ll send you a link to the replay if you can’t make the live presentation.

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Visit http://medgroup.biz/subgroups to discover our 60+ subgroups. There you can network with professionals in your specialty and geography.

Here are the Top 12:
Design & Development (4,961 members) http://linkedin.com/groups?gid=2070969
Orthopaedics (4,676 members) http://linkedin.com/groups?gid=2070954
Surgical & MIS (4,565 members) http://linkedin.com/groups?gid=2526855
Hospital and Health Care (3,471 members) at http://linkd.in/HHCare
QA / RA (3,001 members) http://linkedin.com/groups?gid=2070960
Cardiovascular (2,556 members) http://linkedin.com/groups?gid=2526833
Careers (2,485 members) http://linkedin.com/groups?gid=4241076
Dental (1,953 members) http://linkedin.com/groups?gid=2093814
Marketing & Sales (1,610 members) http://linkedin.com/groups?gid=4372308
Entrepreneurs (1,471 members) http://linkedin.com/groups?gid=2070965
Manufacturers (1,001 members) http://linkedin.com/groups?gid=4242664
Israel (1,000 members) http://linkedin.com/groups?gid=4348309

If you have something to share with group or subgroup members, contact our Group Ambassador Gary Welch at GWelch@MedicalDevicesGroup.net with details.

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Make it a great week.

Joe Hage
Medical Devices Group Leader

P.S. Do you need medical device distribution? http://medgroup.biz/hida


Bogdan Baudis
Prinicipal Software Engineer at Cambridge Consultants
Plain and simple: healthcare system cannot be be based on for-profit model because markets cannot manage it. The reason: health is not a merchandise which price behaves according to the demand-supply laws, people will pay/do anything for it (or they die) and there is no limit how much of it they would like to have .. Health Is Not A Product so the market approaches will NOT work.

Jerrold Shapiro
President and CEO, Fem-Medical LLC
Steve, a minor point. I know several 93-year-olds who are mentally sharp, physically fit and contributing as designers, consultants, etc. So let’s not use age alone as the deciding factor as to whether to withhold treatment.

Steve Birch
Product Management | Marketing Leadership| Innovating for Medical and Healthcare Technologies
Agreed! Educated healthcare consumers will hopefully make better choices and this will lead to better health and lower costs.

But, going back to Joe’s original question, what role can medical device manufacturers play in this. We can help educate people through our websites and other vehicles of consumer education. We can also shift some of our R&D into home monitoring and treament modalities. The challenge will be finding out how to maintain or preferably grow our revenues and profitability as we change the nature of our business’.

Burrell (Bo) Clawson
I research patents & design products to get a patented competitive position: Over 30 patents.
We’ve hashed over medicine from many viewpoints.

There will be no “feasible answer” to a “great healthcare system.” Economics make it impossible as you can’t tax the entire country to do this without causing a collapse.

With good education, which is certainly lacking in the US, early choice of habits, choice of home testing, personal choices in end of life care and better, less invasive and corrective medical procedures, I think we can start to lower the health problems in society.

My view is education comes first. The U.S. established the first universal public education system in the world because industries and the US congress agreed you couldn’t run factories unless people could read, write, calculate and converse in one language. It was a MONUMENTAL decision, that is not generally recognized as to how significant it was and how within a generation it supercharged manufacturing.

Honest, accurate and even personalized medical education is just as important as other forms of education. Boring “Health Education classes are NOT the way to go. Turn the classes into health data analysis, home testing and monitoring experiments, measurements, and statistics of testing such that students can actually start testing themselves and their family and passing on what they learn.

Steve Birch
Product Management | Marketing Leadership| Innovating for Medical and Healthcare Technologies
Certainly quality of life is a factor. The question is,who gets to access quality? I have no doubt that when a 90 yo patient shows up with good insurance there will tests and procedures ordered that may do nothing to improve quality of life and may even reduce it. This is not to say that these tests and procedures are generally inappropriate, but in a 90 yo they may very well be. This is where this end of life planning comes in.

I do believe that this is a part of the puzzle, but it will not fix all of our healthcare woes.

Jonas Moses, PhD PA
Consulting Translational Research Professional: Sciences and Technology Innovation, Tech Transfer and Acceleration
Dr. Ena, I have to agree with Mr. Holman, here. I do not know what is your particular medical (and/or scientific) discipline; however, there is little to no value in prolonging a state of physical “life,” in the absence of some quality of existing. My concern, here, is that you may be (“may,” because you failed to differentiate) confusing “having a pulse” for having a real Human experience. Merely “existing” (having a pulse) speaks nothing to the cruelty of being “alive,” without actually living a life.

As a former clinician, sometime medical missionary and lifelong Humanist, I can find no merit in prolonging the pulse, instead of promoting the quality.

Tom, your point is close to home, having watched members of my own family – once brilliant, vibrant and incredibly engaged human beings – become living shells, albeit surrounded by loving family and friends. However, other than having the distinction of being a living reminder (placeholder) for the people we knew, there ceased to be any self-substance, self-awareness or passion for life.

How is this “human existence,” Dr. Ena? Tom never said he was not also interested in seeking cures…for the “living.”

Respectfully,

Dr. Jonas Moses

Tom Holman
Research Consultant
You are right – I certainly place less emphasis on ‘existence’ than quality of life. The medical profession has, generally, misplaced effort by prolonging life inappropriately and thereby increasing the stress and suffering a individuals, family and carers. Look at the farce associated with Nelson Mandela. It is hard to argue that this is enhancing his life or those of others.

Dr. Ena Onikoyi
Clinical Researcher at Lagos State University Teaching Hospital
Dr. Ena Onikoyi, M.D. (Anesthesiologist)

What is the value you place on human existence????
Place more interest in researching for cures!

Tom Holman
Research Consultant
Actually, the problem is simple. Better End of life Planning (which involves shared discussions and decisions about treatments), more POCT and in home care and greater acceptance of death and disability. It’s a simple social issue – but I did not say it is easy!

John Abbott
Consultant, Medical Devices & Regulatory Affairs
Oooo. Lighten up. Many of us have had cancer, are fighting it now or have close relatives in the same boat. It does not make the irony of the article any less funny.

Steve Birch
Product Management | Marketing Leadership| Innovating for Medical and Healthcare Technologies
Burrell, I’ve been in the industry for over 25 years and that has been the trend over that entire period.

Burrell (Bo) Clawson
I research patents & design products to get a patented competitive position: Over 30 patents.
Steve, I remember the top sales guy for Fuji Medical saying their endoscopic equipment was being supplied “free” to Kaiser in return for Fuji doing all maintenance and repair and then selling the disposables associated for use with the hardware.

But as always, the net effect has to be better product for less overall cost.

Steve Birch
Product Management | Marketing Leadership| Innovating for Medical and Healthcare Technologies
Lillian, I don’t foresee exclusive partnerships, but I do see hospitals doing something like leasing most, if not all of their medical devices. This frees up capital, allows them to only have what they need on hand and also addresses the technological obsolescence matters. This does present challenges to innovative start-ups as leasing companies or the like are reluctant to take on something until there is a demand. I had expected that we would already be seeing more leasing or requests for some sort of cooperative deals with hospitals, but perhaps healthcare reform and HIT issues are keeping them busy.

Burrell (Bo) Clawson
I research patents & design products to get a patented competitive position: Over 30 patents.
Lillian, there will always be alignments, but then along come innovative Tatka Enterprises with a new smaller more efficient device and it starts to take market share.

That is the way we get improvements and advances.

Lillian Tatka
Developing Medical Technologies to Improve Healthcare
I definitely foresee more Big-Tech Co. and Hospital exclusive partnerships in the future in order to offer more affordable devices and care. This seems like the most logical solution, however, I have some concerns about health care monopolies. For example, if all hospitals become exclusively partnered with big companies, how will new devices from start-ups permeate the market?

Burrell (Bo) Clawson
I research patents & design products to get a patented competitive position: Over 30 patents.
Ted, when you look at all the references in the bill to “Secretary of HHS will decide/implement…” and then “Section…….of the Federal Register”, plus Medicare, plus FDA all affecting Healthcare, the total number of pages is almost beyond belief.

Not one single person could ever understand it all.

Paul Wismer
International Business Development
Hi Joe, hi everyone. As an answer to the question about GDP, having lived in Germany for 20 years now, I can say quite a lot about our public/private health insurance system.
Per capita, 11.3 % of GDP is spent on health care. The lion’s share of the 3590 Euros (per capita) were laid out by the public insurance companies. Now it’s not exactly an apples to apples comparison. Here some facts: In the US (according to Joe’s post) it’s 18%(?)
The US also spends a lot more on defence (% wise and actual, naturally), playing the World-police. That leaves a lot less money for education, infrastructure (roads and railways, etc). Plus the US runs a tremendous deficit. Japan used to “own” America, now it is the Chinese. When will the US be owned by US citizens again?
I think one of the reasons (and looking at the posts above there are obvioulsy many), is the malpractice insurance every doctor/ hospital etc has to pay. As my dear old Dad said in his day “the lawyers run this country”. Due to the possibility of law suits, hospitals etc tend to run many many tests to be absolutely positively 1000% sure of a diagnosis. It’s great if you can afford it, but I guess you can’t. Here in Germany, unfortunately, the other extreme persists. One of the cases often cited was a man who was to be amputated (I think because of diabetes, but whatever). The OP went great. Until they realised later they cut off the good leg !! Sue the hospital? Sure, you can do that here. Result? 10,000 Euros ($13,000), plus of course they operated for free to amputate the bad leg. In the US I guess you would get $10 million (with the lawyer taking 30%). The US and Germany are full of such examples of extremes where we need to meet somewhere in the middle (certainly not millions of dollars for spilling hot coffee on YOURSELF and suing the restaurant for serving hot coffee !!), but I diverge…

Sacha Marcroft
VP Motion Group and Territory Manager
Entertaining post…I’m glad I’m no the only one. Unimaginable how bad the fraud will get when a government worker will have the power to decide who gets a transplant and who doesn’t. Not mention the bloated gov overhead costs related to the million new committees appointed to oversee the overseers. If I wasn’t a US citizen I might actully be entertained by what might happen. God help us

Burrell (Bo) Clawson
I research patents & design products to get a patented competitive position: Over 30 patents.
The amount of fraud is obviously debatable and I said “ostensibly”. What is obvious to me is that Medicare does not have just a 2% overhead on society. Otherwise we would not have the unfunded liability.

Because Medicare sets prices below market rates (as evidenced by doctors unable to pay their bills on Medicare reimbursements and thus go out of business if that is there only source of funds) then Medicare has a HUGE OVERHEAD.

Knowing what everyone knows, Obama still will not go along with the elimination of medical malpractice claims. By the way is withholding of medical treatment “malpractice”. Someone will litigate it.

I don’t have a belief that a system with 30,000 pages of documents can ever succeed. Anything with 30,000 pages of “plans” for how to make it work is literally non-understandable by any mortal. Any 30,000 page operating plan is designed to employ vast numbers of people in the bureaucracy and, in my belief, eventually force all insurance companies out of business. Pres. Barak Obama said he wanted to do this before being elected President; on video tape. That is why there is this ACA monster and why there is no effort by the Democrat party to make the ACA efficient.

30,000 pages to control an entire population and take over their lives by requiring the government to know everything, meaning they can control everyone, because they can then use the IRS & healthcare to virtually enslave the average individual. Unfortunately as time goes on the regulations and the cost will escalate, particularly when the elderly population mushrooms as we know it will and we will have a fiscal crisis the world has never seen. The number tossed around now is $160-170 trillion in unfunded “promises” to pay mainly seniors.

I have seen and unfortunately worked with, occasionally, government workers and they are not the type of people I could ever hire for my business and for the very few that were good, they were mostly highly motivated ex-military who knew how to drive to execute relentlessly.

The young people in this country do not yet understand that the ACA is going to decimate their take home pay in order to feed it to the older retiree population. Democrat plans did this exactly so that Democrats would get retiree votes because of the average poverty most retirees live in. When the young people wake up, I think they are going to revolt and turn on the Democrat party with a vengence that Obama never expected, though he will likely be out of office by then.

But Barak’s name is forever going to be linked to what he did with the term Obamination, and it is not going to be a good reflection on the man.

Ted Lazakis
CEO and CTO of Alpha Tekniko
The 20% Medicare fraud declaration you reference above has been disproven as misleading Faux News propagated by Senator Tom Coburn R- Okla.. The facts remain that insurance companies are a leading cause of out of control healthcare costs and the ACA is a small step in the right direction. The vehemence of the opposition to it demonstrates to me that it is doing exactly what is needed.

“Total Medicare outlays were $431 billion in 2007, or 19 percent of total national health care expenditures. If one assumes that fraud is equally prevalent in Medicare and other types of health care, that would make the Medicare share of the NHCAA’s $68 billion fraud estimate $13 billion. And $13 billion in fraud divided by $431 billion in total Medicare outlays would be 3 percent of total Medicare expenditures — a far cry from Coburn’s 20 percent. (A rate of 20 percent is “possible, but I don’t think it’s very plausible,” Saccoccio said.)

Skeptical that Medicare is only being defrauded at rates equal to the private sector? Let’s triple that number to $39 billion in fraud. If you do that, it still comes out to 9 percent — less than half of what Coburn asserted it was.

In the meantime, Coburn’s dollar figure — $80 billion in fraud — would be no more accurate if the NHCAA is right. The group says there’s $68 billion in fraud in all health care expenditures — but Coburn’s figure for Medicare alone is bigger than that.”

http://www.politifact.com/truth-o-meter/statements/2009/aug/27/tom-coburn/coburn-says-20-percent-every-medicare-dollar-goes-/%7Cleo://plh/http%3A*3*3www.politifact.com*3truth-o-meter*3statements*32009*3aug*327*3tom-coburn*3coburn-says-20-percent-every-medicare-dollar-goes-*3/lO8M?_t=tracking_disc]

Burrell (Bo) Clawson
I research patents & design products to get a patented competitive position: Over 30 patents.
Ted, last time I heard we had about 20% fraud in Medicare, so by Medicare only having a 2% overhead by your numbers, that virtually admits they can’t run their system efficiently.

This is my objection to government trying to run complex business efficiently.

Ted Lazakis
CEO and CTO of Alpha Tekniko
The cost of delivering the requisite care and medical devices is by far not the biggest problem. And prices will always be imperfect if they are based on individual procedures even if activity based costing and fixed profit margins are used.

As long as we rely on profit motivated insurance corporations to allocate the money and make decisions about care we will need to pay them for it and dearly. All of the rest of the industrialized world have figured this out and have better outcomes with lower costs. Follow the money…

“Insurance companies have balked at the ACA’s requiring them to spend at least 80-85 percent of their revenue on delivery of health care. (In contrast, more than 98 percent of Medicare’s expenditures are clinical [16].) Estimates vary, but one-quarter to one-third of our current costs are driven by insurance company overhead, profits, and the administrative costs embedded in clinical settings. Roughly half of these costs would be recovered under single-payer and could be reallocated to the delivery of meaningful health care services [17, 18].”

http://virtualmentor.ama-assn.org/2012/11/oped1-1211.html%7Cleo://plh/http%3A*3*3virtualmentor.ama-assn.org*32012*311*3oped1-1211.html/oJKd?_t=tracking_disc]

Steve Birch
Product Management | Marketing Leadership| Innovating for Medical and Healthcare Technologies
Burrell, Many or the countries that use the single payor approach don’t charge for specific services. They are given budgets and plan accordingly. In some, as I’ve seen in Canada, when the money starts running out a lot of the services stop being provided.

Burrell (Bo) Clawson
I research patents & design products to get a patented competitive position: Over 30 patents.
Ted there are things governments need to do. But things that are optional should not cause huge rises in costs as in most cases government is very very inefficient at delivering services. We don’t have to go far to see the CBO, Grace report and others over the last 4 decades document this.

Medicare has always priced things below market value as far as I remember and we have since then seen continual rises in the relative cost of healthcare.

Burrell (Bo) Clawson
I research patents & design products to get a patented competitive position: Over 30 patents.
Ted; do these other country’s single payer set the price they will pay for virtually everything?

Ted Lazakis
CEO and CTO of Alpha Tekniko
Burell, The empirical data clearly suggest otherwise. Countries with a true government sponsored “single payer” healthcare system do not have the same problems we do with excessive use of services. Perhaps the profit motive inherant to our corporate insurance controlled system is to blame?

Many services provided by our government have no competition because that is the most fair way to deliver them. We did once try private fire departments for example and the businesses’ profit motives made them behave in ways that were not beneficial to society.

Where life and death are in the balance I would prefer to have a government bureocrat directly and indirectly accountable through the ballot box in charge rather than a financially driven corporate minion accountable to his managers and investors. This includes protecting our clean air and water, publicly held lands and resources, public education, courts, military defense, border control and police, and most certainly our healthcare.

Burrell (Bo) Clawson
I research patents & design products to get a patented competitive position: Over 30 patents.
I think psychologists and their researchers could likely answer what it would take to lower health care costs.

I doubt the US Congress or POTUS would listen. POLs #1 goal in WDC is to get reelected, and what better way to get reelected by limited education voters than to promise to give the populace goodies.

Much of healthcare costs, estimated at various numbers between 40-50% of healthcare expenditures are due to personal choices or what might be called “human nature.”

The US Govt. spends all the time & money exhorting their value to voters for “giving them free healthcare”. They send the wrong psychological signal to the uninformed and ill-educated people in society.

Whenever something is viewed as “free”, people overuse it. It is pure human nature. It is also human nature to put off “doing the right thing” if there are no immediate consequences.

We see this avoidance with people who develop lung or liver cancer and then suddenly decide to quit smoking and drinking (an educated friend right now is in her last days with liver cancer.)

When the government controlled nationwide school system is controlled by a union devoted to supporting one party and wants only that party in power so the union also gets bennies from that party, they modify their school instruction to promote the idea that government “programs to help the poor” are good for the country, you wind up with kids who grow up believing government has all the solutions for them.

In other words, government programs are just another disincentive for people to do what they should to support themselves.

Another 500 posts here on “fixing healthcare” can not accomplish anything if the US government doesn’t remove itself from control of the healthcare system, except to keep a level playing field that promotes competition.

Competition is at the heart of every advancing product or industry. Medicare as a give-away has no competition. Medicare bastardizes the payment system in the U.S.

Just my beliefs.

Steve Birch
Product Management | Marketing Leadership| Innovating for Medical and Healthcare Technologies
Jerold, the “sin taxes” have been bantered around for a while and while I like the idea there is a lot of resistance. Perhaps under the ACA taxes of this sort (sort of like the medical device tax) could be routed to treating the resulting diseases. So the benefit is two-fold, one to provide money to manage the resulting diseases and secondly as a disincentive to use these products. Another way that this is being addressed is that people that are users of such things pay higher premiums. Smokers do, although maybe not enough. And there are positive incentives to engage in healthy activities such as exercise, weight management and stress control, although they are just getting started and may not be all that effective in their current forms.

Jonas Moses, PhD PA
Consulting Translational Research Professional: Sciences and Technology Innovation, Tech Transfer and Acceleration
Jerrold, thank you for echoing the point I made, early in this commentary chain, regarding “upping the ante.” Increasing the purchase price of “unhealthy product”(s) – to the point where it becomes prohibitive for teens to purchase same and is (at the very least) a strong disincentive to adult consumers, as well, appeals to me as sensible, welcome, and long-overdue, policy. Individual States, as well as the Federal Government, ought to be taxing such products at ten times the current amount, at least, to (as you opined) address “the full cost of remedying the damage.”

Respectfully, Dr. Jonas Moses

Jerrold Shapiro
President and CEO, Fem-Medical LLC
We are all focusing on minutia, and not on fundamentals. First, to me, health care implies that someone is taking care of the patient, and that patients may not have to take care of themselves by following the many guidelines listed above for healthy eating, exercising, avoidance of toxic substances, etc. Second, those who make money from products that cause harm are not held responsible for repairing the damage they cause.

For example, the restaurant that serves large portions of high calorie food laden with fat and salt does not bear the cost of the morbid obesity which results from consumption of their product. The “Smoke Shop” that sells not only toxic inhalants but also many means for converting carcinogens into smoke does not bear the cost of treating the resulting cancers in many sites in their customers, nor for providing revenue to the family who survives the death of that customer if that customer is the primary revenue provider of that family. States that impose a very high tax on tobacco products have seen some reduction in teenage smoking because teens can’t afford to buy the cigarettes.

Perhaps if the purchase price of an unhealthy product included the full cost of remedying the damage it causes, the free market system would encourage consumers to make healthy choices.

Steve Birch
Product Management | Marketing Leadership| Innovating for Medical and Healthcare Technologies
The crushing weight of our system is evident in these discussions. This crushing weight will make change difficult, but it is partially because of this that we must change. There are plenty of things that we can do that are preventative and supported by medical evidence such as a change to the Mediteranean diet, there is also a lot of evidence that managing weight and getting good quality sleep can reduce the likelihood of diabetes, metabolic disorder and more. And these are the ones that are already being used as new ways to manage patients. But, now our system is so costly that many people wait until they’re very sick and head to the ED instead of going earlier to a lower acuity facility or better yet trying to avoid illness in the first place, which I know is not easy particularly with some many peopleliving unhealthy lifestyles and unaware of the damage that they’re causing. We must change the system or it will collapse and take our country with it!

Francis Roosevelt Gilliam
Electrophysiologist Palmetto Health USC Medical Group
Excluding the low life criminals who cheat the system (and their patient’s trust), I am cursed with the belief of what I do helps my patients. I would welcome a review of each procedure that I do but that is already done. It is nice to suppose we would do less to “properly” manage sick patients or that we can prevent them from getting sick in the first place. Where are the studies that show this is possible.

I am in favor to reduce unnecessary interventions, but aside from words that proclaim dropping fee for service will immediately lead to savings, where is the data any of this is true? The magnitude of savings would need to be huge and the magnitude of abuse also huge. probably not the scale needed.

I agree with Steve above, we can do it better but much of our baggage is the crushing weight of the system we are forced to work. We should plan to treat our patients better and eliminate the non essential trappings which only add to costs and no benefit.

How much overhead can we eliminate?? Are we willing to really CHANGE the system?

Steve Birch
Product Management | Marketing Leadership| Innovating for Medical and Healthcare Technologies
The UK is incredibly generous with it’s healthcare. Very sick people from around the world have paid for flights to London so that when they got off they would get free healthcare. I spoke to a nurse at the Royal London who was moving to the US because she just couldn’t take seeing this play out anymore. As good as healthcare may be in the UK or elsewhere in Europe I still think that the US can do better. We just need to refocus. As I’ve seen it healthcare in the UK and in Europe is still about treating sick people and not about prevention.
Healthcare reform will be a challenge for manufacturers as we will have to manage through a huge transition in healthcare. But I think that there are huge opportunities out there and I’m sure that we’d all like to do what we can to keep people from suffering in sickness.

Russ Alberts
Senior Research Fellow at University of Southampton
Returning to the original question, In states like New York, California and Oregon that are going ahead with heath insurance exchanges insurance premiums are dropping drastically see

http://www.nytimes.com/2013/07/17/health/health-plan-cost-for-new-yorkers-set-to-fall-50.html?pagewanted=2&_r=1|leo://plh/http%3A*3*3www%2Enytimes%2Ecom*32013*307*317*3health*3health-plan-cost-for-new-yorkers-set-to-fall-50%2Ehtml%3Fpagewanted%3D2%26_r%3D1/T4UH?_t=tracking_disc]

For medical device manufacturers this should be very good, more people who need medical devices will be able to afford them.

I also have a story about a man who had cancer. I am an American working at the University of Southampton in England. There is a man I met at the Farmer’s Market here that told me his main home is in Utah where he has a large family. He is a dual US/UK citizen. He developed pancreatic cancer some years ago and could not afford treatment in the US. So he returned to England to be treated by the NHS (National Health Insurance) system. He was cured of the disease at no charge (very lucky guy!). Had he stayed in the US he probably would have died.

Other countries do do it better. The US is far and away the largest per person spender on health care, but our vital outcome statistics put us in the bottom of the heap compared with other industrialized countries. I don not believe that the UK has the best system. The Western European countries that have a much different mix of private and public involvement generally do better on the outcome measures.

In terms of medical devices, the manufacturers still do a thriving busines in the UK, in Europe and in Japan. Responsible health care reform should not be the end of the world for manufacturers.

Todd Staples, MBA
Account Representative, GYN at Medtronic
I don’t think any of us have all the answers here, but I do believe our healthcare system is flawed in the sense that the incentives are placed on the wrong things and rewards are given that drive provider business models focused on driving patient volume rather than patient wellness. The entire paradigm needs to shift for the business models to follow suite.

Ted Lazakis
CEO and CTO of Alpha Tekniko
Not sure if I missed it but the “elephant in the room” is GPOs. They have had the effect of reducing competition and raising prices of medical devices. They should lose their preferential anti-trust exemption. The experiment has failed. Lets try something else…

http://www.medicaldevices.org/sites/default/files/GPO_pricing_litan_singer_distribution_oct%202010.pdf%7Cleo://plh/http%3A*3*3www.medicaldevices.org*3sites*3default*3files*3GPO_pricing_litan_singer_distribution_oct%25202010.pdf/V2eu?_t=tracking_disc]
http://www.google.com/url?sa=t&rct=j&q=percentage%20of%20medical%20devices%20sold%20through%20gpos&source=web&cd=2&ved=0CDUQFjAB&url=http%3A%2F%2Fwww.medicaldevices.org%2Fsystem%2Ffiles%2FSinger%2520Report.pdf%3Fdownload%3D1&ei=-QrnUaiBFMnrygHb_4DYDw&usg=AFQjCNFMQ9BpkpRIqBNqm8ShBvZK6Lpo8g|leo://plh/http%3A*3*3www%2Egoogle%2Ecom*3url%3Fsa%3Dt%26rct%3Dj%26q%3Dpercentage%2520of%2520medical%2520devices%2520sold%2520through%2520gpos%26source%3Dweb%26cd%3D2%26ved%3D0CDUQFjAB%26url%3Dhttp%253A%252F%252Fwww%2Emedicaldevices%2Eorg%252Fsystem%252Ffiles%252FSinger%252520Report%2Epdf%253Fdownload%253D1%26ei%3D-QrnUaiBFMnrygHb_4DYDw%26usg%3DAFQjCNFMQ9BpkpRIqBNqm8ShBvZK6Lpo8g/xsJB?_t=tracking_disc]

Steve Birch
Product Management | Marketing Leadership| Innovating for Medical and Healthcare Technologies
First to Jeff’s comment. Pushing the Medicare age up only shifts more of the burden to the private sector which already happens by cost shifting when Medicare doesn’t pay enough to cover costs. The heathcare cost as a percent GDP is the issue and moving it from one payor to another has no impact.

Regarding Todd’s comments, I agree that we’re off track on the discussion and that further there is a lot of finger pointing as to who’s to blame and who can do what to fix this broken system. I agree that a system involving ACOs will help. I’m not sure about them sharing in the surplus as I don’t know how we’d define that. How would you calculate the surplus. Certainly not based on current levels of revenue, but if not what level. I think that ACOs will help close the health-sickness loop and incentivize healthcare providers to keep people healthy. I was recently told by a colleague of mine from Korea that is Korea and China that a person under the care of an acupuncturist becomes sick the acupuncturist stops billing them. The driving belief being that if acupuncturist had been doing everything correctly the person would not have become sick. So I think that closing this loop will go a long way to reducing costs.

The medical device industry needs to look for way to reduce costs, although this has been a common theme since DRGs care in being. However, most of this deals with reducing the costs of caring for someone already in the hospital or at least under care for a sickness. This is important and we should do even more of this, but the real savings and improvement in satisfaction come in avoiding the sickness in the first place. The medical device industry should start looking for R&D opportunities in parallel modalities that would help to manage health instead of sickness. There won’t always be direct parallels and it’s likely that the new technologies will cost less. Some disease like heart and lung disease can be impacted by smoking cessation, exercise and proper diet which won’t require much in the way of new technology, but some specific heart and lung diseases will still arise do to genetic or environmental factors that we haven’t identified or can’t yet manage and for these we can develop technologies to avoid the onset of severe illness. A lot of this new technology will be monitoring technology as early detection can mean easier management and better outcomes. Already some of this is happening with mobile health devices. I think that this is the future of our industry. Now we just need to figure out how to get there without going broke.

Todd Staples, MBA
Account Representative, GYN at Medtronic
It is interesting that in scanning through all of these comments I haven’t seen anyone address the opening of this discussion and the prime intent (as I read it) of the topic – How does this affect the medical device industry as a whole and how can we contribute towards sustainable healthcare (lowering costs)?

It’s my belief that as manufacturers and developers of devices our mission has always been to drive increasing levels of consumption of our products because increasing revenues is obviously how businesses thrive. I think what we are seeing now is like a wildfire though burning through the dry brush. As long as physician, surgeons and hospitals are reimbursed per procedure they perform, they will continue to also be volume driven. Why diagnose a patient using telemedicine? I don’t get reimbursed for that – make them come into the clinic. How many treatment options are offered these days that DON’T involve either referring a patient to another provider, prescribing a drug, or performing more procedures that are all reimbursed. The practice of medicine is more a business than ever before, and as an industry, we generally support that “consumption” mindset.

I firmly believe that when and if our reimbursement system is converted to a patient management system of some sort where ACOs share in the surplus revenues when a patient is maintained in good health, only this type of system will ensure people actually GET treatments they need, rather than the procedures providers need to deliver in order to keep their revenue streams elevated. So if wellness is a goal for our systems, and they profit by our wellness, not the procedures they perform and the patients they treat, then we have a model that will cut costs and reduce waste.

As for our industry, the impact would be immediate – reducing pain and suffering, enabling patients to live fuller more productive lives, and getting the sick back to their lives quickly will things that are mandatory to create value. Commodities sold cheap with the hope of making profit on volume would have to compete on levels of quality and competence that they aren’t accustomed to, and the vetting process to new technology would ensure only the best products came to market, reducing the burden on providers to swim through crowded catalogs of similar products.

I think we are a long way from this reality however, but it is still a good question to ask yourself – if my customers were suddenly paid by maintaining health, would that be good or bad for my business?

Jeff Archer
Process Engineer at johnson Matthey Noble metals group
All observations make sense and I don’t want to argue about what will work because we really have a complex problem. What I would like to address is that comment that maybe having people work longer before they can benefit from medicare or social security for that matter. It would only work if the attitude toward aging workers changes. We don’t hear about successful suits against companies for age discrimination not because it does not happen, but because it is a discrimination so easily covered up by viable reasons, layoffs, downsizing, department elimination or job position elimination takes the onus of the company. But the result is the same, aging workers are jobless and have little expectation that they will find another company willing to rehire them. Unless you are willing and able to go into business for yourself, you will find lean years and staying in the workforce without seeking social security only reduces what you will get when you finally take that step. I went through this and found opportunities very scarce.

Joe Hage
🔥 Find me at MedicalDevicesGroup.net 🔥
Jim, that’s an interesting observation. Unfortunately, our dollars are not being invested for 35 years. Instead, they are being spent today for those who qualify.

In 35 years, we’ll need money from those paying into the system at that time. And when there are more users than payers, things devolve quickly.

I hate to say it, but maybe this problem is just too big to solve. By anyone.

Jim Bemman, PMP
Project Engineer at Kentucky Trailer
If an average wage-earning male contributes $61,000 to medicare during his lifetime, lets assume that’s 35 years, lets assume that’s a yearly $2000.00 contribution for 35 years.

And why we are at it, lets assume this contribution makes 5% yearly compounded interest for 35 years. The fund would have a total of $189,672.65 total after the 35 years.

If we are being taxed, why can’t we assume the government can use our money and give us interest for letting them use our money?

Burrell (Bo) Clawson
I research patents & design products to get a patented competitive position: Over 30 patents.
Guy Hibbins is dead-on right.

Demographics will doom the economics of healthcare in the US as set up by US Congress.

I’ve been reading articles about this since about 1980 by demographers who started the discussion of government Ponzi schemes.

Some people, including me, think that the Democrat Party recognized back then that if they didn’t do “giveaway programs” (not actuarially sustainable) to citizens, that the aging & increasingly conservative baby boomers would make for a permanent Republican control of WDC government for many generations.
David Pennington, PE
Senior Project Manager at Commissioning Agents, Inc | CAI Consulting
Having scanned through the discussion to date, I see evidence of good wrestling with the multitude of issues. I have nothing to contribute that has not been said.

There is one matter of fact, however, which I believe was incorrectly presented. It “common knowledge” that smokers, as a group, are a major drain on the healthcare system. This was the premise of the lawsuit a number of years back, in which states sued tobacco producers and won a rather hefty settlement.

The truth is just the opposite: smokers–again, as a group–are not a major drain on the healthcare system, precisely because they tend to die younger, and after shorter illnesses, than do non-smokers. They’re a special boon to Medicare, because their deaths still tend to occur in retirement.

The very premise of the lawsuit was bogus, but the defendants did not want to have the truth become public knowledge, any more than did those who brought the suit.

Guy Hibbins
Medical Officer
The economics of the retiring baby boomer generation in the US basically means that overall demand will fall while at the same time there will not be enough younger people to pay for their healthcare and pensions. Unfunded accrued US government liabilities in relation to healthcare and pensions to 2050 are estimated at around $66trillion, which is clearly not sustainable.
Members might be interested to hear what economists like Harry Dent see http://www.youtube.com/watch?v=77xI4QGMGYM|leo://plh/http%3A*3*3www%2Eyoutube%2Ecom*3watch%3Fv%3D77xI4QGMGYM/H8XV?_t=tracking_disc] have to say.
These are serious generational issues. Some European economies are in an even worse position, but some countries have managed to avoid this situation through better economic governance. Australia, for example has not run deficits over most of the past half century and is not predicted to run deficits over the next half century.

Joseph Walsh
Senior Firmware Engineer at Milwaukee Tool -ONEKEY
Like anything else, government mandates, regulation of costs, etc. will have no effect. Everyone has the mentality, sure I want it, if it’s free. Of course I want that MRI that has a <2% chance of finding anything, it doesn't cost ME $1500, I pay $25. It's our nature. It is the reason everyone should pay SOME taxes, so they would notice when more money is suddenly coming out of their pocket, and the reason people need to pay a larger percentage of their medical costs. If it costs ME, say $150, or even $300 in the above $1500 example. Maybe I choose to go with the lower cost blood screenings for a while until we see a significant change. Or look around for a lower cost, mobile MRI for say $700, lowering my costs significantly. The HDP with HSA type plans need to be expanded, not reigned in. Let people save MORE for health care costs, tax free. And if they are fortunate enough to not need it, let them spend it, or give it to their heirs. Encourage people to plan for it, and reward them, not punish them, if they actually have. Put control back in peoples own hands. Larry Lart
Mapping the Universe
I think there should be no coverage nor levies or any additional taxes for all these cases – smoking, induced obesity .. whatever careless life style. As if you choose to live wild .. well then that’s your price to pay and if you cannot afford that’s it.
Why should an innocent child for example not benefit all care and education he/she need because of that?

However, care should be taken as alienating in a form of exclusion or other wont make the problem go away it will only make it worst … for everybody.
Especially that in many of these cases there is a psychological variable they will need all the support they can get for a fair price.

And then again, this “insurance deal””, it’s an abstraction layer which pretty much blinds both sides and gives the illusion of a comfort zone.
I am not really a fan of this big magic hat where all the cash goes in and we can take as much as you want out without caring took much if that reflects the reality.
Abstraction might give some less head aches but that comes at the cost … and in many ways headaches are easier to fix then obesity for example. Keeping people connected to the realities and real cost of living I fairly certain will make them more responsible.

In any case, I doubt that either smoking or obesity is responsible for the high price tab of a CT/MRI scan or chemotherapy and cancer drugs. If anything a high demand should bring the prices down right? Presumably a lot of drug cost is in the research so then with more patients for return of investment should price it lower.

I am still struggling to understand why these costs ?

Larry

Mark McCarty
Regulatory Editor at Clarivate Analytics
There is one little problem we haven’t addressed, and it’s that for everyone we save from heart disease and/or cancer, we have a new patient with Alzheimer’s. Save that patient and what do you have? A population suffering from genetic degradation, and suddenly that’s a disease (I guarantee you sooner or later someone will call age-related DNA decay a disease) requiring some sort of synthetic telomerase.

I don’t pretend to have an answer, but medical care just does not feed back into a GDP loop in a way that makes up for what it takes out. The whole retirement ethic is only about 50 years old and it’s already obsolete. We simply have to stay on the job longer. I see no other option.

Nobody in Washington is saying it, but the age of eligibility for Medicare and Social Security will simply have to go up. That won’t save our bacon all by itself, but I can’t see how we can avoid capsizing the economy without it. And Washington might not have the nerve to do that until Generation X has numerically overtaken the Baby Boom generation in Congress. I’m not sure we can afford to wait that long.

Jonas Moses, PhD PA
Consulting Translational Research Professional: Sciences and Technology Innovation, Tech Transfer and Acceleration
Patient education is essential, and this is certainly where you and I are in complete agreement. However, I never suggested that you ought to be responsible for punishing your patients. This is no more the responsibility of the individual healthcare professional than is it the responsibility (or right) of individual law enforcement officers to mete out legal justice. When an individual citizen is apprehended for unlawfulness, those officers present may (at most) only secure the law-breaker and conduct him/her to the appropriate organization, for processing. There is no (legal) instant justice or punishment vehicle for law enforcement. You know this…please do not be ridiculous, stick with the facts and with the intent of my comments.

Where medical practitioners could and must certainly be involved, were we to adopt a similar legal code for self-abusers, is in the identification and reporting (conducting) of such individuals to the proper orgs, for the processing and punishment (fines, restrictions, mandatory public service) of said persons.

I would encourage you to rethink your sentiments concerning the impact that individual medical professionals can make. The members of MoveOn (an incredibly successful, grassroots civic organization) would beg to differ. Here is a highly visible organization whose very existence was based upon the principal that a single voice DOES make a powerful difference! And, as a US Army Veteran, I will posit that if you ask any military leader (including the Commander-in-Chief of our Armed Forces), she/he will tell you that “every single soldier is critical to the success of the mission.”

Pointless to say more…you will either get it, or you won’t. At least we can agree to disagree, I suppose.

Peacefully, Dr. Jonas Moses

Francis Roosevelt Gilliam
Electrophysiologist Palmetto Health USC Medical Group
Dr. Jonas Moses
Upon reading your comments, I will agree that we are in disagreement. I am well aware of the training and the idealism you speak. I simply state we are delusional if we as individuals believe we impact significantly the global problems we are now addressing. We are indeed the firemen of the health world. The ER physician is clearly a fireman but let’s be honest, practicing physicians rarely prevent significant medical problems that impact cost before there is a problem to address. Example: Medicare #1 cost is CHF hospitalizations. Is there any PROVEN treatment to prevent CHF??? We can all recite exercise, eat right, take care of HTN , DM, but have we any evidence of prevention, I don’t think so. We are deluding ourselves if we believe any of the programs you mention are effectively making statistical differences by physicians. We fail to face the reality of what individual physicians truly accomplish.

Speaking of recent changes in medicine. What of the primary physician? You know the one who is aware of the patients’ medical history that will insure appropriate interventions based on potentially years of patient knowledge. But at the patients time of most need a hospitalist who have never seen the patient will be making those decisions. “Primary” doctors do not go to hospital.

We do not hold patients accountable for their actions in regards to healthcare. If an insurer were to charge more for risky lifestyles then yes that is “accountability” But in the end, no matter how reckless for example the drug addict may be, when brought to a facility in need we will ALWAYS treat to the limit of our ability again and again.
I do expect patients to engage in healthy behaviors but our country is a statement that good health habits do not occur in general.

I do counsel each and every patient I see as to what would be healthy lifestyles as well as what may address their special problem. I only see a small fraction of my overall community. Statistically, I make no impact. The individuals that I see are improved but statistically insignificant when compared with the overall community.. We should be strong advocates for individual as well as public policies which will impact medicine. But we should be honest and aware of our position in the greater community. Much of what we need to address is best addressed from the legislature as well as from programs that can reach people before they become patients.

When were you last able to in regard to any patient (your words) ” punish them (by limiting freedoms, assessing fines and levying mandatory civil service, for example) – it is as logical and rational as punishing citizens for engaging in criminal activity. ”
While logical, I have not ever ticketed anyone for reckless eating.

I do agree that we should advocate better behaviors, but let us not delude ourselves that we have been successful.

Jonas Moses, PhD PA
Consulting Translational Research Professional: Sciences and Technology Innovation, Tech Transfer and Acceleration
Dr. Gilliam, I find that we are in grave disagreement, regarding the role of physicians, since you opine that the physicians’ role is disease manager, rather than wellness adviser.

“We are the firemen of the health world,” is really only accurately the role of the ER physician.

“Care of the masses is public health, something most physicians are NOT trained or equipped to perform,” can only have been stated by someone who was trained more than 25 years ago. At the very least, you were trained before the development of the Standardized Patient/Clinical Simulations programming in the US, and are remarkably uninformed about these Medical Education developments.

As an intermittent member of the SP/ClinSim community (and advocate for same) over the course of the past twenty years, I can state with certainty that the vast majority of student doctors are, in fact, being trained to address global public health issues, are being trained in wellness protocols and are being trained to actively engage patients about healthy behaviors, as preventive medicine and not merely once their patients are diagnosed with a disease.

You would do well to investigate the SP/ClinSim program affiliated with your nearest medical school campus. These programs are exceptionally robust, well-respected and rapidly expanding/improving. The approval ratings among medical students, regarding the inclusion of SP/ClinSim during the first two years of medical school, are quite high.
Such programs are now being incorporated into medical education for nurses, PAs and various other para-professional healthcare students.

“We could mandate forced exercise, and even force obese people into programs that will lead to weight loss.” An excellent idea! (see below)

“BUT we live in a free society and people are free to make their own choices.”

No…this is not an accurate statement. This is perception, a fantasy (wishful thinking?) but not fact, at least if you are referring to those actions that impact the lives of others.

“We as a society do not allow individuals to suffer the consequences of poor choices.”

Yes…yes we do. Indeed, if citizens make poor choices that result in the commitment of a criminal act (or a criminally negligent act), they are subject to be punished with incarceration, monetary penalty, mandatory (and unpaid) civil service and even death.
Why, then, would we not also apply similar consequential standards regarding citizens knowingly and willfully making poor choices about their health?

“If I choose not to pay for coverage (and I have means) then if I were to require care I cannot afford… TOO BAD! we do not have that policy. I am not advocating that policy, but it is equally unreasonable to think people will not engage in unhealthy behavior.”

Again, I have to disagree, Dr. Gilliam. It is not only reasonable to expect and mandate that people engage in healthy behaviors – and to punish them (by limiting freedoms, assessing fines and levying mandatory civil service, for example) – it is as logical and rational as punishing citizens for engaging in criminal activity.

Respectfully, Dr. Jonas Moses

Steve Birch
Product Management | Marketing Leadership| Innovating for Medical and Healthcare Technologies
Francis,
I agree that there is no magic formula and also appreciate that by the time a patient reaches a specialist it is likely too late for perventative measures, at least for the situation at hand. Looking at those countries with similar standards of living, but much lower heathcare costs they seem to have cultural or societal behaviors that promote health such as avoiding a sedentary lifestyle, unhealthy food choices and the list goes on. Not a magic formula and certainly not something that will happen overnight, but it does seem to be a rational direction.

Francis Roosevelt Gilliam
Electrophysiologist Palmetto Health USC Medical Group
Steve
I find we are in violent agreement. We as responsible physicians have an obligation to inform our patients of wise choices. We also try to persuade them to adopt these choices. I feel you gave us as cardiologists more credit than we deserve. My lament is the continuing dialogue that if physicians would prevent preventable diseases, our costs would be much less. I for one, do not have the magic formula to ward off illnesses. I rarely see anyone BEFORE their event and once you have damaged your heart… a patient for life

Steve Birch
Product Management | Marketing Leadership| Innovating for Medical and Healthcare Technologies
Francis I understand that you’re not prepared to perform a public health function, but many physicians inform their patients of problems relating to their obesity, smoking, cholesterol levels, etc. and at least suggest changes in behavior. It’s a matter of getting this out to more (if not all) people and finding a means to encourage change.

It’s been an interesting observation that cardiologists tend to be more succesful in getting compliance after someone has had an MI than a pulmonologist in getting a COPD patient to stop smoking after a pneumonia. Perhaps if people are better able to appreciate the consequences of their choices they would be compelled to make changes. While everyone understands that in many cases a heart attack means death they don’t know what years of suffering with reduced lung capacity, diminsihed exercise capacity and a chronic cough mean in terms of quality of life. If they really knew what lay in store for them I can’t imagine make choices that would lead to this kind of life and that is without regard to the financial impact. Maybe I’m just naive, but I prefer to make what I think are better choices.

Burrell (Bo) Clawson
I research patents & design products to get a patented competitive position: Over 30 patents.
Steven Birch noted “Additionally, we’ll be able to commit resources to develop low cost diagnostics for other diseases so that we can catch them at an earlier stage and manage them more effectively.”

Interestingly, we are already on that road and accelerating with the implementation of Accountable Care Organizations that recognize the mandatory need for home testing and monitoring for both healthy and ill people.

In catching “disease” early, we must wind up considering a lot of tests or indicators that don’t diagnose anything. Surprised? Thermometers and Blood Pressure meters are examples of tests which merely indicate whether an ‘indicator’ is within normal range.

Early on, many diseases have few recognized symptoms by a person, but may have changes of a nature that can give a warning of a potential disease.

That is what I am doing with my latest medical IVD test, a hospital grade FDA OTC cleared fecal occult blood test (FOBT) to detect hidden small extra blood released into the digestive tract. In fact there are about 200 conditions which cause internal bleeding, plus after about age 45, people have 100-200 times the number of gastrointestinal problems as younger people. Existing FOBTs are not OTC cleared, nor are they properly packed in foil pouches to meet modern quality standards.

By making a FOBT kit available for home use, people can take a test now and then for less than the price of a fancy cappuchino @ Starbucks. There are about 90-100 million people on blood thinners or regular aspirin with chronic disease who are at extra risk of GI bleeds, so it is not an uncommon event. Finding early indicators can potentially allow a doctor and patient to be able to eliminate a problem BEFORE it becomes a chronic problem.

That is the sort of home testing & consumer awareness we need to be able to minimize health costs. Will it happen quickly? From what I’ve heard, ACOs and the likes of Blue Shield are already pushing physicians to “require” home testing-monitoring to catch conditions early to limit health care costs. From the patient side, such things may lead to a better quality of life.

Francis Roosevelt Gilliam
Electrophysiologist Palmetto Health USC Medical Group
What diseases are preventable? We may argue that patients should exercise, not smoke, and diet. We may say that we can prevent problems but we mostly encourage healthy people to stay healthy (they rarely need encouragement). If cost is the metric we must accept this is not a medical intervention issue, it is a public health challenge. While it may be unpopular to say this , as physicians, we do manage diseases rather than health. We are the firemen of the health world, Care of the masses is public health, something most physicians are NOT trained or equipped to perform.

We could mandate forced exercise, and even force obese people into programs that will lead to weight loss. BUT we live in a free society and people are free to make their own choices. We as a society do not allow individuals to suffer the consequences of poor choices. Look at the loss of the individual mandate. If I choose not to pay for coverage (and I have means) then if I were to require care I cannot afford… TOO BAD! we do not have that policy. I am not advocating that policy, but it is equally unreasonable to think people will not engage in unhealthy behavior.

Jonas Moses, PhD PA
Consulting Translational Research Professional: Sciences and Technology Innovation, Tech Transfer and Acceleration
Respectfully, John, you and I are not force-feeding those who have become obese on fast food, bonbons and sugary sodas. Nor do we force people to smoke tobacco. Please, don’t sidestep the obvious: these are choices.

Obesity may or may not constitute a disease…however, stuffing one’s face with crap is not. The Catholic Church called it “gluttony.” Gluttony may be a “sin” (according to them), but it is not a disease.

So, how do we address those who are already ailing from self-abuse? Well…first, restrict payment of care to those who continue to self-abuse, once they are in treatment.

Second, oblige all who seek to receive disease treatment to completely abstain from the self-abuses that resulted in illness (no more smoking, drinking, drugs, fast food,…).
At the same time, require that all such patients receive appropriate mental health counseling, so as to address potential underlying self-destructive psychological pathology.

And, for the rest? For those who are not already disease-laden, secondary to self-abusive behaviors, set some new precedents. Make it clear to Americans that “from now on, those who willfully engage in self-abusive activities will be responsible for paying their own way, when it comes to future illness, secondary to elective self-abuses.”

While it may not be appropriate to refuse payment of care to all who have already entered the ranks of the patient population via self-abusive behaviors, admonishing those who may choose – in future – to engage in such behaviors that there will be consequences beyond illness – both monetary and legal – may prove a real and viable inducement to behave. Consider this: since the US began major advertising campaigns admonishing that the penalties for drinking and driving (legal/monetary consequences) are severe, both DUIs and alcohol-related traffic fatalities have decreased.

Just my two cents…still, when the consequences are made clear, are appropriately strict and are uniformly enforced, there are positive (measurable) results. Developing such a strategy for addressing self-abusers can and will result in lower costs to all.

I just read another comment, regarding “healthcare” versus “sickcare.” (paraphrase)
I completely agree with this. The US, especially, is still lagging behind other nations in focusing on wellness and prevention. I would argue that the strategies I have outlined, as above, are (in fact) wellness/prevention-oriented, and represent a linchpin paradigm shift away from chasing diseases, toward preventing them.

Respectfully, Dr. Jonas Moses

Steve Birch
Product Management | Marketing Leadership| Innovating for Medical and Healthcare Technologies
Oh, it’s broken! It’s just that some of us can still afford the premiums. For those who can’t it’s broken and they either get saddled with huge bills or dump their bills into the system and those still paying premiums pay for them too.

I think that it likely will take a generation to change the way that people look at health and take responsibility for their own health. At that point there will be much lower rates of the preventable diseases and this will bring the costs back into line. Additionally, we’ll be able to commit resources to develop low cost diagnostics for other diseases so that we can catch them at an earlier stage and manage them more effectively. Had that Hodgkins patient have been caught earlier he could have been managed more cost effectively and had a better outcome. I’m sure we can get there, but not if everyone, patients and providers alike want to keep doing the same thing.

Sandro Pires Gomes
Communication-Hr-Coach
Joe,
I wish that situations like this wouldn’t be humorous but Joe this is ironically funny! I’ll tell you why later on.
Portugal spends 9,5% PIB on healthcare, 15.828 millions.
Since a given country can’t provide healthcare to person besides through insurance paid systems, private clinics and hospitals, etc, raises the costs so they can benefit from insurance private providers money, because the “system” managing are looking for the same thing…money.
It’s not that much Joe, the $140 for every ran when compared to Portugal, here is almost the same but in € and considering our minimum wage is 485€ (€636)… so we can all imagine how is general healthcare on other parts of the globe.
We as medical devices providers should have a mission to provide better and better devices and equipment so professionals and patients can benefit from them, raising the health and care levels.
Matthew Greison, I wish well and keep fighting cancer.
MG was insured so he is entitled to all and best treatment there is…if “Blue Cross…” (another irony!!) wishes that their clients don’t get sick them it’s better to change their market to healthy people and provide insurance only for them “You’re a healthy person pay us” 🙂
There is no such thing as a “Bad Client” on Healthcare for God sake!
Yes, but bills are getting higher and higher…I suggest governmental/federal auditing on healthcare for stopping damaging lobby on healthcare.
We came blame people for not having good habits but we cannot blame them for being insured! We can blame Education (prevention) off course, but we also must blame Publicity that creates needs and industry that answers…needs.

Thanks Joe for a great theme!
Thanks to all for their expertise and sharing experience,

Sincerely,

Sandro Selmo Gomes.

Joe Hage
🔥 Find me at MedicalDevicesGroup.net 🔥
We seem to be in violent agreement: It will not change until it breaks.

So let’s fast-forward 10(?) 20(?) years. When it breaks, what will rise from the ashes?

Steve Birch
Product Management | Marketing Leadership| Innovating for Medical and Healthcare Technologies
So it’s very clear, and lots of people are acknowledging this, that this system to healthcare is not sustainable. The underlying problem is that we don’t have a healthcare system, we have a sickness care system. We do very little, relatively speaking to keep people in good health and instead wait until they’re sick and then run lots of expensive tests and prescribe expensive drugs. Sure the Onion case of the Hodgkins patient is not one prevent, yet, but we spend most of our healthcare dollars on preventable diseases and conditions. Countries that spend less than we (the US) do, which are all other countries and have better outcomoes also have cultures that eat healthier than we do and get more exercise and do a host of other things that result on healthier and longer lives. Our healthcare system needs to drive the cultural changes to reduce costs otherwise our system will go broke.

John Abbott
Consultant, Medical Devices & Regulatory Affairs
The concept of charging self-abusers more for their future healthcare is not a new concept. Some insurers charge more for smokers, for example. The problem comes when deciding who pays more, how much and who decides? With obesity now a “disease” do morbidly obese people have to pay more? Same with tobacco. Addiction is a “disease”. Do we charge people that contract cancer more? It is a disease. How about the flu? High cholesterol? The insurance companies have been using the sledgehammer of “pre-existing condition” for decades. Fortunately that is being eliminated. We are talking about a VERY BIG grey area here almost to the point that any line would be almost arbitrary. I am all for making self-abusers pay for the consequences of their abuse. I just don’t want to be the one who draws the line.

Francis Roosevelt Gilliam
Electrophysiologist Palmetto Health USC Medical Group
This is an extremely complex problem with many reasons costs are ridiculously out of line. Name calling and blaming will accomplish little. We must admit we are getting what we buy. If we shop badly at the grocer we can have a lot of stuff but not the right components to make a decent meal. We have placed unrealistic expectations on an imperfect system. We must consider:
1. We pay too many support people. How many administrators does it take to do anything. Think about how many more people who work around our facilities as support compared with the systems in other countries.
2. Any death or complication of a procedure or product potentially ends in litigation. Someone has to pay for all of those late night solicitations for unhappy patients or families to sue for financial reward. We (as a society) do not want to accept that sometimes life is not fair and sometimes it is no ones fault. This attitude change will certainly lower costs. This is real tort reform. Sue only for malfeasance .
3. The practice of medicine needs to return to practitioners that think and not merely follow guidelines. We have to accept that while guidelines may assist in standardizing many approaches in medicine, they may be responsible for accelerating unnecessary procedures. Example: Elevated troponin= cardiology consult. This leads to evaluations, tests etc. that may not be needed if we could simply say it is unlikely this is a problem and never travel down the consult path.
4. Patients have not only to have a realistic expectation as to what medicine can accomplish, but also must accept their habits has impact on their health.
5. The choice to NOT do something is sometimes the best medicine.
6. Get over the fee for service complaints. There are a few unethical practitioners who will do anything for a check, But it is easier to evaluate what and why something was done as opposed to wondering if there were things that needed to be done but were not.
7. While we toss the “evidence based medicine” terms when it means to deny interventions, we are quick to institute unproven interventions because they might be effective. How many DVTs have we prevented with the present mandated program forcing interventions in all hospital patients? What was the evidence to do this? And how much has this mandate cost? Think of how many other procedures that have been instituted in the name of “quality”

This is not intended to be exhaustive listing but when we start mandating EHRs, bar coded pills, reduced resident hours, and other interventions with the promise of cost reduction. I have NO BELIEF that most of these interventions will be anything but MORE expensive.

Jonas Moses, PhD PA
Consulting Translational Research Professional: Sciences and Technology Innovation, Tech Transfer and Acceleration
As someone who has been both a professional healthcare provider and a cancer research scientist, and who is now engaged in developing (and consulting on) practical innovations within the medical, scientific and various allied technologies arenas, I have to agree with multiple assertions, as have been made by other commenters, here (with apologies, we are not “commentators”). Certainly, we — the medical device/implant, medical imaging, medical goods/services, pharmaceutical companies and the hospitals — can do more to curtail costs, and anyone of us who asserts otherwise is, at best, naive. You know who you are…

Notably, though, inferring (from prior comments) that the US, and by corollary our healthcare insurers, it may prove a very wise decision to place a premium on well-documented and intentional self-abuse by citizens engaging in toxic lifestyle activities: drinking, smoking, other drug abuse, over-eating (induced obesity and diabetes), et al. These are choices, not accidents or genetic misadventures.

These choices cost everyone – not just those who abuse their own bodies – a massive burden in taxes, skyrocketing insurance costs, medical care, … All too well do we (collectively) know and appreciate the collateral fallout from such indiscriminate and self-destructive behaviors. Yes…I do think it makes sense; and I do support a cost premium levied against those who willfully abuse themselves and then expect the rest of us to pay for their self-abuse.

I will go further, and state that the taxes levied against tobacco products – for example – are grossly insufficient, and must be radically increased to address the calculus of supporting the monumentally higher healthcare costs of those who choose to smoke.

Of course, we must face the ultimate question: Do we have the right to regulate (control) the choice to self-abuse? The answer is bifurcated and sticky…

If those who are determined to self-abuse then become ill, do they have the right to burden our healthcare system, or must they pay for themselves (or, ultimately, suffer the unchecked/untreated consequences of their self-abuse)?

The tobacco companies, breweries/distilleries/vineyards and junk food purveyors are satisfied to opine that the choice to self-abuse is simply not their problem, “we do not force people to use or abuse our products!” A few companies make a feeble effort to be good corporate citizens, by spending some meager share of their billions in marketing dollars to advertise that people should “drink, responsibly.” Not one of these companies says, “okay…if you cannot control your sugar intake, don’t consume our junk food!”

The Bottom Line… is not the real question: “by continuing to pay for those who choose self-abuse – are we not only enabling them, are we (and not they) ultimately responsible for destroying our economy, by enabling them?”

Respectfully, Dr. Jonas Moses

Larry Lart
Mapping the Universe
Mark, you probably right as a proper treatments in most cases is down to a lot of research and trials which could run expensive. But given the case of early diagnosis even with a low accuracy could save in the long run both the patient and the cost.
And that could be as easy as running an app on you mobile to monitor your habits.

For example, I am having a bad back pain lately mostly because of my position at my desk so I thought maybe I should implement a small app for my phone and keep my phone in my shirt pocket just to alert me every time I am tilting down for a prolonged period of time … to implement that will probably take me couple of days which will be less then what will cost me to go to see a physiotherapist and that just for me.

David, I think that should be a starting point … with relevance here at least for medical devices. Someone here maybe should do some simple math let say for a CT scan or MRI – factory or retail device price add standard maintenance costs, consumables and divide by how many scans will run just to get an idea how much a CT or MRI scan costs as per device no hospital labour involved.

Interesting will be to break down the device factory price as well as in production cost, research cost, government licensing or whatever is required and that will give an even more accurate image as what goes where and how much.

Burrell (Bo) Clawson, sure you can control habits with pricing to an extent and not always successful as despite high taxes on smoking addiction still prevails and all these premiums go to hat and you get rabbits out … I will say it’s not fair for a tax payer of any kind of tax to pay and get almost nothing in return … as in a smoker who runs cancer well there isn’t much to do at that point and for the premiums he paid wont even get a shiny coffin. In the case of the smoker all these taxes might be better invested in habit control therapy something to prevent I don’t know you can make a scheme you pay tax or you do your therapy and try to fix things earlier .. incentives.

Larry

Mark McCarty
Regulatory Editor at Clarivate Analytics
I’m not sure about the diagnostic part, but my guess is it’s not that simple to diagnose. One of the really big problems with treatments for apnea is that they’re either CPAP machines, with some of the poorest compliance in all of medical care, or invasive treatments that don’t work as often as they should.

But if you ask a cardiac electrophysiologist about apnea, he or she would say it’s a huge burden, and if NTSB could measure the number of accidents in which sleeplessness played a role, the percentage might be a lot higher than any of us knows. Not all sleeplessness is due to apnea, that’s true, but a lot of it is.

Burrell (Bo) Clawson
I research patents & design products to get a patented competitive position: Over 30 patents.
Mark, if sleep apnea is indeed a big problem (I suspect it too), and an iPhone can recognize your speech, why couldn’t your iPhone recognize the change in sound with sleep apnea.

It ought to be a trivial application to make for the iPhone.

Mark McCarty
Regulatory Editor at Clarivate Analytics
To Bo Clawson: I agree that personal habits make a huge part of the problem with lower vigor, but I just don’t see penalties as the way to go about it. I also think there’s a lot more to the issue than that, such as poor sleep. My distinct impression is that apnea is a much larger problem than is commonly appreciated and the emphasis on this isn’t even remotely proportionate to the burden on society. I would also urge everyone to consider the vastly disproportionate spending on cancer at NIH versus Alzheimer’s. Cancer is expected to cost half of what Alzheimer’s will over the next three decades, yet it gets four times the money Alzheimer’s does. How in the world does that make sense?

Want to put a dent in the cost of healthcare in decades to come? Spend a bit less on cancer and a bit more on Alzheimer’s. There’s just no way around it. Cancer is over-researched.

Mark McCarty
Regulatory Editor at Clarivate Analytics
I’ve heard the same thing about hospital cost accounting, and I have to wonder why it’s so difficult. I recognize that hospitals don’t have a huge incentive to apply some sort of accounting mechanism that appropriately allocates everything – and I don’t doubt for a second it wouldn’t be easy – but this has been going on for quite a long time. I really think it’s time to fix it.

Burrell (Bo) Clawson
I research patents & design products to get a patented competitive position: Over 30 patents.
Mark, “staying vigorous” implies changing personal habits which is great & would be the biggest relief on the medical system we could ever see if it happened.

About 50% of all hospitalizations are due to self-inflicted problems.

My understanding of hospital costs is that labor costs are the supermajority of expenses, so these 2 points tell us what has to happen to make significant changes.

David Pennington, PE
Senior Project Manager at Commissioning Agents, Inc | CAI Consulting
Back in 1993, when the new administration was railing against the high cost of healthcare, a hospital pressured my employer, Baxter, to discount its prices. In one all-hands meeting, our division president held up a liter bag of sterile water, which we delivered to the hospital for 75 cents, at that time, and which would typically be billed to the patient at $20. His assertion was that even at $20, the hospital’s ability to do cost accounting was so weak, that it did not know whether it made or lost money on the transaction. A Baxter discount of 20 percent would not change that fact. He went on to assert that we could give it to them for free, and they still would not know how they came out on the deal with the patient.

This is not an attempt to lay “blame” on the hospitals, but merely to point out that this is one of the places the headache of healthcare is hurting.

Mark McCarty
Regulatory Editor at Clarivate Analytics
Short of a revolution, we might start emphasizing technologies and therapies that enable people to keep working longer.

If we could delay baby boomer retirement by three years, it would nearly wipe out the Social Security problem. That still leaves Medicare, which is a larger problem and is not particularly affected by keeping people on the job for an additional three years because the really expensive diseases hit in the 70s, but it would eliminate one third of the overall problem, which is nothing to sneeze at.

But I don’t think it does any good to argue that the problem is insurance or to argue for penalties for some habits. That would just drive spending on ways to fool the tests. Penalties rarely have any effect if I’m not mistaken.

So let’s try focusing on something really outlandish, like helping everyone stay vigorous enough to keep their jobs. After all, the job market is going turn upside down over the next 30 years as boomers vanish from the ranks of the employed. We need boomers to stay on the job to keep from bankrupting the economy and to keep the pool of available talent stocked.

Burrell (Bo) Clawson
I research patents & design products to get a patented competitive position: Over 30 patents.
Larry Lart mentioned insurance, which is essentially just as regulated as banking. It has always seemed to be a bit incestuous between governments and carriers.

Now insurance with Obamacare is not really about pricing a policy based on risk, but on a lot of arbitrary rules of Obamacare which go against risk analysis as a basis for insurance.

Overhead of state and federal government offices & all healthcare related companies compliance on all aspects of medical insurance probably consumes a good chunk of the 18% of gDP healthcare costs. My wild guess is probably one third of that 18% is government regulated overhead.

If a patient was 26 years old and buying Obamacare insurance, and he had a choice, $300 a month for a non-smoker and $800 per month for a smoker, what do you think the effect would be on the young person’s habits?

Burrell (Bo) Clawson
I research patents & design products to get a patented competitive position: Over 30 patents.
John Abbott got it right.

The only way this will ever stop is either a revolution (ballot box or otherwise) or a voluntary Congressional passed amendment to the Constitution to require a limit to the % of GDP it can spend and total elimination of Ponzi scheme type projects in the Federal & State governments.

Doubt the Constitutional amendment would ever pass.

Larry Lart
Mapping the Universe
In my humble opinion the root cause of the price inflation in health care is the insurance concept itself and the way these company manage their funds. Same problem we saw recently with the house prices bubble driven by virtual funds made available by banks/speculators – which was not really a reflection of the real purchase power of the consumer itself.

Same here, imagine that there were no insurance companies, and people will have to pay that out of their pocket – my bet will then all these medical costs will be far better aligned with the reality and competition will do even better.
Not when you have billions in insurance funds to charge against as there is very little stimulus to keep to prices low and competitive.

Maybe if insurance companies will do more in-depth analysis on the real cost of lets say a CT scan and have a cap on – in other words make less funds available, then maybe this will drive prices down. However, this will probably has to happen across board so one can say that’s a political issue to solve.

On the other hand, medical devices/technology can slice that price and in a long run it will make a huge difference.

One, for example, can replace a GP with database/application which can cross-correlate symptoms and lab analysis far better then our mind can remember – all the technology and knowledge to implement this. Then you can have lets say a qualified nurse for human interaction part, symptoms input in the system etc. and that should drive the cost down.
I know that in this approach there are some attempts but most people I spoke with will prefer a human over machine to give a diagnostic. Regardless the fact that many textbook diagnoses learned in school are based on statistics generated by a machine and only memorized by the student. Politics again.

Translating these high speed technological advancements in the medical field will be/is way slower given the regulators and politicians – maybe getting them to use more technology to faster evaluate outcomes could speed up the adaption process.

What else medical device manufacturers can do? they could do a better details pricing analysis of the cost from top(insurer) down to factory price.
That could give them a good idea were things could be improved (technologically speaking) and will also spot niches for future products. Perhaps working closer with the insurance companies to drive the overall prices down could help as well.

Larry

John Abbott
Consultant, Medical Devices & Regulatory Affairs
Well, that is the problem with Medicare – it IS a kind of Ponzi scheme… at least in practice if not in intent. If I invest $128/month over 40 years (~$60,000) at an average 5% per year, I end up with over $185,000 at age 65. The problem is that the general fund has been raiding the Medicare bank. From a bookkeeping perspective, the Medicare fund is probably reasonably sound, it is just that there is no money there because someone else has been “borrowing” it without paying it back. Social Security has a similar problem.

For all the complaints about “Big Pharma” and “the Government”, it all comes back to my long standing complaint. We as a society want more than we are willing to pay for. We want education, we want to wage wars, we want big ships & expensive airplanes, we want big fences on the borders, we want to help the needy, we want roads & bridges, we want farm subsidies, we want safe products, we want to lock up millions of people, we want, we want, we want… But no one wants to pay for it. Until we solve this underlying problem, all the big boogeymen we always blame are small players. Our congressmen and senators get in office because WE elect them, not because Big Pharma donates lots of money to them.

Yes, yes… I realize that it is not that simple but in the end it DOES all boil down down to a society that wants more than it is willing to pay for.

Marshall L. Perez
RETIRED CEO | Communications Coach | Life Coach | Mentor | Strategy Sounding Board
See this http://www.urban.org/UploadedPDF/412660-Social-Security-and-Medicare-Taxes-and-Benefits-Over-a-Lifetime.pdf%7Cleo://plh/http%3A*3*3www.urban.org*3UploadedPDF*3412660-Social-Security-and-Medicare-Taxes-and-Benefits-Over-a-Lifetime.pdf/Q3WI?_t=tracking_disc] for the rest of the story. Social security and medicare are Ponzi schemes.

Joe Hage
🔥 Find me at MedicalDevicesGroup.net 🔥
Dominic, I’m fascinated by the video trailer.

Dominic Mastroianni
President/Owner at Custom Precision Solutions
I recommend seeing these movies:

[http://burzynskimovie.com/|leo://plh/http%3A*3*3burzynskimovie%2Ecom*3/bQ0E?_t=tracking_disc]

Part 1 and Part 2.

Not just about cancer but about the entire system of corruption of Big Pharma and the Government.

Heather Thompson
Owner at coffeeandpants.com
Not sure if anyone else heard the Philips story on NPR today. In exchange for unrestricted access, Philips has agreed to supply a Georgia hospital will all their needs for 15 years at a fraction of the normal cost. Philips would get a bonus if health costs for patients go down.
[http://www.npr.org/2013/07/16/202566719/georgia-hospital-system-extends-partnership-with-philips|leo://plh/http%3A*3*3www%2Enpr%2Eorg*32013*307*316*3202566719*3georgia-hospital-system-extends-partnership-with-philips/_m0D?_t=tracking_disc]

Patrick Crawford
Pharmaceuticals Professional
The Atlantic Monthly in September 2009 published an excellent article on the subject titled “How American Health Care Killed My Father,” authored by David Goldhill. I would recommend Googling it and digesting as food for thought.

Burrell (Bo) Clawson
I research patents & design products to get a patented competitive position: Over 30 patents.
Don’t think it is up to medical device makers to “control costs.”

Competition between makers of devices tends to reduce costs.

Demand is what drives health costs up. Demand for consumers who don’t necessarily care whether their alcohol, diet, drugs, random sex, tobacco or other personal choices affect their health because “Medicare … Blue Shield … Obamacare” (take your pick) will cover it.

All device manufacturers can do is make ever better devices and let the market choose which one is best.

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