Archive for the ‘healthcare’ Category

President Obama: “We Must Address the Crushing Cost of Health Care.”

Tuesday, February 24th, 2009

Text from President Obama’s Address to Congress:

…We must also address the crushing cost of health care.

This is a cost that now causes a bankruptcy in America every thirty seconds. By the end of the year, it could cause 1.5 million Americans to lose their homes. In the last eight years, premiums have grown four times faster than wages. And in each of these years, one million more Americans have lost their health insurance. It is one of the major reasons why small businesses close their doors and corporations ship jobs overseas. And it’s one of the largest and fastest-growing parts of our budget.

Given these facts, we can no longer afford to put health care reform on hold.

Already, we have done more to advance the cause of health care reform in the last thirty days than we have in the last decade. When it was days old, this Congress passed a law to provide and protect health insurance for eleven million American children whose parents work full-time. Our recovery plan will invest in electronic health records and new technology that will reduce errors, bring down costs, ensure privacy, and save lives. It will launch a new effort to conquer a disease that has touched the life of nearly every American by seeking a cure for cancer in our time. And it makes the largest investment ever in preventive care, because that is one of the best ways to keep our people healthy and our costs under control.

This budget builds on these reforms. It includes an historic commitment to comprehensive health care reform – a down-payment on the principle that we must have quality, affordable health care for every American. It’s a commitment that’s paid for in part by efficiencies in our system that are long overdue. And it’s a step we must take if we hope to bring down our deficit in the years to come.

Now, there will be many different opinions and ideas about how to achieve reform, and that is why I’m bringing together businesses and workers, doctors and health care providers, Democrats and Republicans to begin work on this issue next week.

I suffer no illusions that this will be an easy process. It will be hard. But I also know that nearly a century after Teddy Roosevelt first called for reform, the cost of our health care has weighed down our economy and the conscience of our nation long enough. So let there be no doubt: health care reform cannot wait, it must not wait, and it will not wait another year.

Why Smart, Ticked Off Computer Guys Are Looking to Destroy Your Hospital

Monday, December 1st, 2008

Having gone through my venture capital financing hazing in the late nineties, one of the features I’ve noticed about businesses that get funded are those which have a “disruptive” model to them.   VCs enjoy the idea that their investments will not only create value for their own businesses but, in the words of a (very successful) VC firm, First Round Capital:

We love investing in technologies and business models that are able to shrink existing markets. If your company can take $5 of revenue from a competitor for every $1 you earn – let’s talk!

Now, there are some solid economic reasons for this objective in a start-up.  If you can shrink existing markets and remain profitable, you’re more efficient and the free market will reward you as the eventual winner.  It works great for discretionary spending, like a new ATV or cell phone gadgets or weight loss creme, but it does not work well for healthcare.

You see, dear readers, if you work at a hospital, that market is you.

You will notice a variety of entrants into this space who are all fired about how bad healthcare is and, sure enough, they’re right.  Healthcare is broken.  As I said on my last post, we can all agree on that.   The question is why, and what can be done about it.

One answer is that we need to give the individual patients the access to the “best” doctors, regardless of location or cost and empower them with the “best” knowledge for how they can navigate the arcane healthcare system.  That way, we can cause a consumer revolution!  Because, you know, consumerism is the best!  Rah, rah, yeah!

I understand that our American education is insufficient when it comes to fundamental economic knowledge, nevermind the essentials of game theory, but I wonder, have these people ever seen A Beautiful Mind?

If so, they might grasp the fundamentals of at least John Nash’s work on competition and scarcity: an individual striving for their own gain cost without regard for others costs the group as a whole more than if the group conspired together to allocate resources collaboratively.   (A vast over-simplification, for which I apologize, Mr. Nash.)

In other words: there is nothing to suggest a purely individualistic, consumer-driven healthcare strategy will produce any more “efficiency” than our current system and much to suggest it will create considerably less.   As some get much, much better care (and pay for it), others will necessarily get much, much worse care.

Healthcare is not a pure commodity because it is a social good and the same rules don’t apply.

This is why, although I share the sentiments of many of these companies, at MedTouch, we choose to work with hospitals.  When hospitals stay healthy, they can continue to serve the communities in which they are located.  That’s a (socially) good thing.

I’m all for efficiency, but efficiency at the cost of disrupting the healthcare delivery mechanism for the poorest members of our society is not just a bad idea, it’s un-American.

WWDD — What Will Tom Daschle Do?

Monday, November 24th, 2008

The former Senator Tom Daschle has been picked for the HHS top spot, and there’s been some excellent speculation — I mean, coverage about what Daschle might do once in office.   I think we often miss the forest for the trees when we talk in these grand policy terms.  Sure, the healthcare system is broken.  I think you’d be hard pressed to find anyone who disagrees on that point, but it’s very difficult to agree on how it’s broken.

WWDD?  Let Americans pay for healthcare, regardless of job status, and create a healthcare Federal Reserve to oversee the policies and power of the Federal Healthcare program. 

The conversations we need to have from a policy side are precisely around what kind of healthcare Americans want in this country: the best for all, the best for some, or the most efficient for all?  The solutions look much different for each scenario.

Also from WSJ:  Five Health Myths Busted. 

#2 is a joy for me.  It perfectly represents our natural ability to misjudge trade-offs, but I would temper Mr. Hensley’s position by the simple fact that, at the end of your life, you prefer a few extra years to a Corvette you might have preferred along the way.  (Assuming they’ll still be making those next year, but I digress.) 

And I’m not so sure that’s a bad thing.

The Impact on the Global Financial Crisis, Part II

Tuesday, October 21st, 2008


MedTouch Webinar: The Impact of the Global Financial Crisis on Healthcare, Part II from MedTouch on Vimeo.

The news about the financial sector meltdown is everywhere, but how will it impact healthcare?

In this second part of a special webinar, Paul Griffiths, the CEO of MedTouch, will walk through how the sub-prime crisis led into Wall St. failures, which has spilled over into the bond market, threatening usual routes of funding for healthcare, muncipalities, and non-profits.

We’ll review what hard decisions providers will have to make over the coming year, and talk through some possible short and long term results from the financial bailout.

The Impact of the Global Financial Crisis on Healthcare

What you’ll learn:

* Why the financial crisis started
* Why the crisis will make it harder for hospitals to stay in the black
* Which healthcare providers should do today

The Impact of the Global Financial Crisis on Healthcare, Part I

Tuesday, October 21st, 2008


The Impact of the Global Financial Crisis on Healthcare, Part I from MedTouch on Vimeo.

The Global Financial Crisis and Healthcare: A Special Webinar

Monday, October 13th, 2008

If, like me, you’ve been watching the global financial crisis with awe and dismay, you’ve probably started wondering how all of this will impact healthcare.

In brief, there are three main financial instruments that have kept many hospitals open in the last few years — bonds, investments, and charitable giving — and each of these is at risk given the current market situation.    

To explain these issues, we’re giving a special webinar this Weds, October 15th at 2pm EDT, 1pm CST, Noon MST, and 11am PST.

We’ll talk about how the crisis happened, why it spread so quickly, and how providers and payors made be impacted by the continued market gyrations, the freeze up in commercial paper, and the financial bailout package approved by Congress.

This webinar is free to attend and will last about 45 minutes.

Why Even Google Can’t Fix Healthcare

Thursday, July 10th, 2008

Of my last post about open source food, Jeff Jarvis commented:

I wasn’t suggesting that the kitchen should be turned over. I’m exploring the ideas of openness even in restaurants. For example, I’d like to know which dishes get ordered more so I can use that in my decision. Or perhaps diners can suggest improvements in recipes. And so on.

Next I’m tackling health. Since that’s your expertise, how do you think Googlethink could come to health care? Could it? Can doctors and health institutions be more transparent? What would we learn from aggregated and open data? Would there be value in a social relationship among patients? And so on. I have some ideas but I’d love to hear your thoughts.

From my point of view, the biggest challenge in healthcare institutions is the institutional thinking that goes on behind the scenes. Many good hospitals are trying to keep it all together, given the unfair hand they’ve been dealt: price-setting from insurance payors, even lower price-setting from the government, and the legal responsibility to treat anyone sick enoug to walk through their ER doors. Add in overall costs of service delivery increasing at a time when the costs of insurance are biting Joe Q. American’s pocketbook and Michael Moore’s Sicko… well, it’s a rough time right now in healthcare.

This leads to institutional thinking: how do we keep this boat together? And the simplest answer is command and control leadership. Don’t take risks, don’t innovate, trim costs wherever possible, etc. That’s not a critique — I’m sympathetic to the challenges here — but it does mean that providing patient access to data inside of a hospital is risky because it opens the hospital up to more risk.  Patient benefits be hanged!

I have been point-blank told, at more than one hospital, how much they’d like to get rid of system X or software Y, but they can’t. Even though it doesn’t work and there are better products available, they just can’t. It would be too costly — politically or capital-wise.

From an infrastructure standpoint, most hospital software is cumbersome, expensive, and (let’s face it) old. The sales cycle for a hospital engagement is often 18-24 months — contrast that to a Google service: free, immediately available, updates whenever you want! As good as the technology is, each hospital technology infrastructure is a jigsaw puzzle that barely fits together as is, never mind inviting a behemoth like Google into the mix.

A typical patient experience, from a hospital standpoint, goes as follows:

  1. I’m healthy.
  2. I’m worried I’m sick and go online to get health information.
  3. I see a doctor/RN for diagnosis.
  4. I go to a hospital for treatment.
  5. I am discharged.

Being a patient in a hospital is a terminal experience: it ends in discharge or death! The medical systems were created long before Starbucks convinced every industry that consumer relationships were what mattered (thank you, SB, for getting the stinky breakfast sandwiches out; here’s a to a $30 stock price again.)

Google Health might end up being a great tool for diagnosis but hospitals can’t embrace it… unless so many the physicians demand it for their patients.

The churn and noise about hospital transparency is basically saying, “Here’s proof we don’t kill that many people.” Transparency = quality of outcomes for a hospital. But in 5 years, that won’t matter. Once the measures of quality are open to the public, the payors and Medicaid/Medicare will use it as an excuse to stop paying hospitals with lousy outcomes. So, overall, the healthcare experience should get better. But that doesn’t mean we’ll know any more or less about the process.

I place much more faith in the power of patients to self-organize in a way that wasn’t possible even two years ago. With sites like PatientsLikeMe, patients in recovery — discharged, perhaps from a hospital — are about to connect about their quality of treatment in a real-time, clinic study fashion. Sites that provide disease/condition/treatment communities will be where hospitals can knock it out of the park. Imagine if every cancer patient in your town heard that XYZ Hospital was the best — from the site moderator!

That’s where the openness will come from: empowering patients who had great experiences to market the hospital with a level of authenticity not possible any other way. We just ran a few webinars on this topic — so popular, agencies and competitors showed up in droves to hear what we had to say. That tells me we’re striking a chord.

But, as I always say, the nice thing about talking about the future is that it’s difficult to be proven wrong. :)

I Have a Website, So What? Taking Your Strategy to the Next Level

Friday, March 28th, 2008

Video thumbnail. Click to play
Click to Play

The last in our winter webinar series (and our most popular webinar yet): how to take your strategy to the next level.

What the free market thinks about patients

Thursday, March 27th, 2008

I was fascinated by this article about the challenges of healthcare content startups. No so much about why such companies exist, but in hearing about how the general market views “patients” and “consumers” and what implications that has for healthcare institutions.

After an afternoon discussing the challenges of establishing a health content startup, the final panel at EconHealth got to deals: who’s buying and who’s investing in what. ContentNext publisher Rafat Ali moderated a discussion among a group of dealmakers, from the perspective of investors, bankers and would-be buyers.

Interest areas: Esther Dyson: “The way I divide the market is into the arms merchants and the establishment… what’s been missing: there’s been professional content and there’s user generated content, which may or may not be valuable or reliable… and then the third thing is the content about the users.” It’s the third thing that’s exciting to Dyson, who is an investor in 23andMe, the know-your-own-genes startup. “I think it’s this area that’s so exciting… Microsoft (NSDQ: MSFT) is really, really well positioned, as is Google.” With all these things, there’s a question on whether users are aware of these new tools. Morris R. Levitt, Managing Director-Life Sciences, Desilva+Phillips, noted that the big buyers of these startups are either PE-backed platforms or major consumer media firms, like MSO. The problem: “When I listen to a lot of these specialty things, I find that a very low percentage of things are of interest to these organizations.” Most of them aren’t up to scale. Women are particularly valuable, since in many households, said Levitt: “women are the chief medical officers.”

I know many hospital CMOs who might bristle at the last conclusion, but it underscores a complete lack of thinking about providers in this conversation. Are we the only company in the US who is looking at the issue this way?

Follow the link for more above.

In Praise of Obsolescence

Wednesday, March 26th, 2008

The

An article in the Boston Globe today discusses technology headed for the dustbin. I was surprised to see what fond memories I had of these objects. I’m sentimental about floppy diskettes, having spent hours as a kid installing various applications, games, and operating systems (DOS 6 was a dozen 1.44 disks, remember?). I remember the particular whir of the drive, how it sounded like a make-shift paper broom, quickly sweeping the floor. And whenever one spun for long enough, there came the faintest scent of warm, ionized plastic, as if your computer could double as an easy-bake oven.

It’s truly sentimental, I know, but increasingly people have feelings about their technology and companies are attempting to make the technology experience more tactile than cerebral.

The mainframe is long-dead; so too is the XT I built by hand its younger sister, the AT 286, and the super-fast 386 and the unbelievable 486 and so on. I think one wrinkle to Moore’s Law is that while computing speed doubles every 12-18 months, our ability to integrate it into our lives does not. The iPod has been around for nearly 10 years and finally tipped what, 3 years ago?

And that’s just consumer, personal technology. As a hospital CIO friend said, the healthcare industry is at the technology level manufacturing was in the 70’s.

In other words, floppy.