Kaiser CEO testimony today, before Congress — George C. Halvorson. . . .

July 17, 2008 · Leave a Comment


The entire PDF is well-worth reading, but here are some highlights:

. . . .I am sad to say that health care in America is a disorganized, weakly coordinated, inadequately linked, $2.3 trillion care infrastructure that is currently our country’s fastest growing industry. . . .

It is an industry that will not be reformed without intervention by public policymakers and purchasers. . . .

. . . .Major studies show huge inconsistencies in care delivery across this country. For example, diabetics consume over 32 percent of the total costs of Medicare, and reliable studies show that the U.S. health care infrastructure provides the right care for diabetics less than 10 percent of the time. . . .

We are missing critical linkages among clinicians and we are missing systematic, patient-focused care. One key element of the solution is to have vertically linked clinicians functioning in teams to deliver care, supported by a secure electronic medical record (EMR) that gives each clinician the relevant information about each patient in real time at the point of care. . . .

Another key element of the solution is to have special computer systems –- care registries –- that analyze data from the electronic medical record and give doctors and other clinicians reminders and prompts to recommend what the best scientific evidence and expert opinion would agree is necessary and optimal care for each patient. . . . Only a few places in this country will be able to achieve the full electronic medical record supported by an up-to-date care registry in the immediate future. . . .

What Kaiser Permanente and other multi-specialty groups such as Group Health Cooperative, Intermountain Healthcare and Geisinger can accomplish is to set the gold standard with a sophisticated electronic medical record and a fully integrated system. But the rest of the health care system is not vertically integrated and does not have appropriately aligned financial incentives. However, as a country, we can decide to move towards virtual integration and to create payment structures that reward good care, rather than the quantity of services delivered.

Most American patients will need another pathway to computer supported care. That second pathway is possible. We don’t need algorithms for hundreds of diseases in order to transform care. We do need algorithms and support systems for the five chronic conditions (congestive heart failure, asthma, diabetes, coronary artery disease, and depression) and for the five percent of the total population who drive 50 percent of the care costs in this country. . . .

If we want care to get better for those patients, we need to insist that all chronic care patients with serious co-morbidities have their care supported by electronic care registries –- and that clinicians who choose not to interact with those registries should be financially affected by their decision.

What happens when care is fully supported by electronic panel support tools? The outcome improvements can be huge. We should set a national goal to decrease hospitalization for asthma patients by 50 percent. We should also reduce congestive heart failure crisis by 50 percent. We should reduce kidney failure by 50 percent.

The electronic medical record alone does not do the work. EMR is a great thing, but an EMR all by itself is not enough. The EMR must be supported by panel management tools that scan the data and give advice to clinicians about needed care. . . .

My advice for you today is this: Our nation’s current non-system – depending on siloed and separate paper medical records and providing perverse financial incentives that directly reward sub-optimal care and discourage efficiency –- will never reform itself. It will also never magically become a “system.”

We need to focus on the areas of the greatest potential – and we need to put computerized support systems in place as soon as that work can be done. . . .

[Emphasis supplied.]

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June 2008 IMS scrips — Bottom line: Vytorin/Zetia STILL losing share — in a "shrinking" US Market. . . .

July 17, 2008 · Leave a Comment

These are moderate declines, compared to two motnhs ago (still, close to a 5 percent, month-over-month sequential decline), but it is an especially ominous sign that the overall “cholesterol market” in the U.S. is “shrinking” — in this economy, that might well-mean that the under-, and un-insured have stopped taking their meds, altogether.

Or, it could mean that people are being counseled to adopt healthier lifestyles before trying any drug — statin or other — at all.

Overall, a 26.6 percent decline since the start of the year. Wow. [Click to enlarge.]

This is not good news. Meanwhile, 1.09 million shares traded — essentially flat, after-hours — on the NASDAQ, thus far.

Categories: Vytorin Zetia Scrips June 2008 26.6 percent decline shr

Kaiser CEO testimony today, before Congress — George C. Halvorson. . . .

July 17, 2008 · Leave a Comment

The entire PDF is well-worth reading, but here are some highlights:

. . . .I am sad to say that health care in America is a disorganized, weakly coordinated, inadequately linked, $2.3 trillion care infrastructure that is currently our country’s fastest growing industry. . . .

It is an industry that will not be reformed without intervention by public policymakers and purchasers. . . .

. . . .Major studies show huge inconsistencies in care delivery across this country. For example, diabetics consume over 32 percent of the total costs of Medicare, and reliable studies show that the U.S. health care infrastructure provides the right care for diabetics less than 10 percent of the time. . . .

We are missing critical linkages among clinicians and we are missing systematic, patient-focused care. One key element of the solution is to have vertically linked clinicians functioning in teams to deliver care, supported by a secure electronic medical record (EMR) that gives each clinician the relevant information about each patient in real time at the point of care. . . .

Another key element of the solution is to have special computer systems –- care registries –- that analyze data from the electronic medical record and give doctors and other clinicians reminders and prompts to recommend what the best scientific evidence and expert opinion would agree is necessary and optimal care for each patient. . . . Only a few places in this country will be able to achieve the full electronic medical record supported by an up-to-date care registry in the immediate future. . . .

What Kaiser Permanente and other multi-specialty groups such as Group Health Cooperative, Intermountain Healthcare and Geisinger can accomplish is to set the gold standard with a sophisticated electronic medical record and a fully integrated system. But the rest of the health care system is not vertically integrated and does not have appropriately aligned financial incentives. However, as a country, we can decide to move towards virtual integration and to create payment structures that reward good care, rather than the quantity of services delivered.

Most American patients will need another pathway to computer supported care. That second pathway is possible. We don’t need algorithms for hundreds of diseases in order to transform care. We do need algorithms and support systems for the five chronic conditions (congestive heart failure, asthma, diabetes, coronary artery disease, and depression) and for the five percent of the total population who drive 50 percent of the care costs in this country. . . .

If we want care to get better for those patients, we need to insist that all chronic care patients with serious co-morbidities have their care supported by electronic care registries –- and that clinicians who choose not to interact with those registries should be financially affected by their decision.

What happens when care is fully supported by electronic panel support tools? The outcome improvements can be huge. We should set a national goal to decrease hospitalization for asthma patients by 50 percent. We should also reduce congestive heart failure crisis by 50 percent. We should reduce kidney failure by 50 percent.

The electronic medical record alone does not do the work. EMR is a great thing, but an EMR all by itself is not enough. The EMR must be supported by panel management tools that scan the data and give advice to clinicians about needed care. . . .

My advice for you today is this: Our nation’s current non-system – depending on siloed and separate paper medical records and providing perverse financial incentives that directly reward sub-optimal care and discourage efficiency –- will never reform itself. It will also never magically become a “system.”

We need to focus on the areas of the greatest potential – and we need to put computerized support systems in place as soon as that work can be done. . . .

[Emphasis supplied.]

Categories: Kaiser CEO Testimony George C. Halvorson Senate Finance

LIVE VIDEO! — July 17, 2008 — Yet Another Health-Care Reform-themed Hearing — Senate Finance Committee

July 17, 2008 · Leave a Comment

~~~~~~~~~~~~
FLOATED: 07.17.08 AM
EACH WITNESS’ STATEMENT
IS NOW LINKED TO HIS OR
HER NAME, BELOW. . . .

[Originally posted: 07.15.08 PM]
~~~~~~~~~~~~

I’ll have a archived live, streaming video feed in an embedded window, here, of the entire hearing — the feed will go “live” at about 9:50 AM EDT, on Thursday July 17, 2008. Be sure to check back at this space, then. Here are the hearing particulars:

The Right Care at the Right Time:
Leveraging Innovation to Improve
Health Care Quality for All Americans

July 17, 2008, at 10:00 a.m.,
in 215 Dirksen Senate Office Building

Member Statements:

Max Baucus, MT

Charles Grassley, IA

Witness Statements:

Peter Orszag, Director, Congressional Budget Office, Washington, DC

Richard Hillestad, Ph.D., Principal Researcher; Professor, RAND Graduate School, Santa Monica, CA

George C. Halvorson, Chairman and CEO, Kaiser Foundation Health Plan, Inc., Oakland, CA

Gail R. Wilensky, Ph.D., Senior Fellow, Project Hope, Bethesda, MD

I’ll also have links to all testimony, anchored to the witnesses’ names, above, a few days after the hearing (most-likely as PDF files).

If this one really starts rockin’, I may live blog it, below:

See you Thursday, bright and early!

Categories: Grassley Baucus Hearing Senate Finance Committee Health

Dechert LLP’s latest — in the Sales Practices consolidated suit — comes up “a day late, and [more than a] dollar short”. . . .

July 17, 2008 · Leave a Comment


Overnight, Dechert LLP, on behalf of Schering-Plough, filed a letter in MDL 1938, the Vytorin/Zetia Marketing, Sales Practices, and Products Liability consolidated litigation, arguing essentially that no discovery should occur in that case, until the motions to dismiss now pending in the securities action, and any other related action (could that possibly mean the Organon Qui Tam action?), are decided.

[This all becomes very interesting since Arent Fox has effectively given all these various bunches of plaintiffs an avenue to take early discovery in the Organon Qui Tam case -- as I earlier noted -- a week or so before Lowenstein, Sandler replaced Arent, Fox as Schering's counsel of record in the Organon matter.]

In doing so, Dechert quotes cases interpreting the Private Securities Litigation Reform Act for the proposition that ERISA case discovery may be stayed while a pending securities law motion to dismiss is pending — as well as any discovery based on a state law claim or theory, in order to effectuate the intent of Congress in enacting the PSLRA, and the subsequent amendments to it. Take a look at this, from Dechert’s letter, at Page 5 (click to enlarge):

Now, what Dechert LLP wholly-fails to mention, in its letter to United States Magistrate Mark Falk, is that the express language of the PSLRA, at 15 U.S.C. § 78z-1(b)(1), provides that “in any private action arising under this subchapter, all discovery and other proceedings shall be stayed during the pendency of any motion to dismiss, unless the court finds, upon the motion of any party, that particularized discovery is necessary to preserve evidence or to prevent undue prejudice to that party. . . .

In short, unless Dechert demonstrates that the current litigation was filed to thwart the stay provisions of the PSLRA, discovery in the MDL Case No. 1938 may well move forward.

ANOTHER fact Dechert fails to mention is that Cain v. Hassan, et al. is pending. It is a purported shareholders’ derivative suit, and the express terms of PSLRA, at 15 U.S.C. § 15 U.S.C. § 77p(f)(2)(B) specifically exempt shareholders’ derivative actions from these automatic stay provisions.

So, it would seem that, in order to “preserve evidence” — chiefly, the now-fading memories of the involved officers, directors and underwriters — the Magistrate Falk, or the court itself — in the person of Judge Cavanaugh — ought to find Dechert’s letter unpersuasive. But don’t trust me — read the cases, and you’ll agree. Quoting from Romero v. Career Education Corporation, Civil Action No. 793-N (Delware 2005), a memorandum opinion, now:

. . . .At the motion to dismiss stage where all inferences must be drawn in plaintiff’s favor, I am not convinced that [plaintiff]’s purpose is to circumvent the PSLRA’s proscriptions. The purposes identified in support of [plaintiff]’s May 26 Demand, for example, include investigating whether the [defendant] Board or officers breached their fiduciary duties by “actively participating in, or failing to make a good faith effort to detect, investigate, prevent and correct, violations of the Ethics Codes.” It is certainly conceivable that any resulting claim for violation of fiduciary duties under Delaware law would be entirely different from the pending federal claims against [defendant] or its agents. . . .

~~~~~~~~~~~~

Footnote 16: 15 U.S.C. § 77p(f)(2)(B); City of Austin Police Ret. Sys. v. ITT Educ. Serv., Inc., 2005 WL 280345, slip op. at *10 & n.2 (S.D. Ind. Feb. 2, 2005) (“[T]he PSLRA and SLUSA were not intended to protect corporate management from shareholder derivative claims. Those are left to state law.”). . . .

So, the-above letter, from Dechert seems to have earned the sharholders. . . nothing, inasmuch as all the money Schering-Plough spent to have it researched, and drafted will lead no effect whatsoever.

And as I said yesterday — that is also a waste of scarce judicial resources. Unfortunate.

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