January 23, 2020 | Genetic link between BMI, psych disorders
INDUSTRY NEWS
The administrative costs of running Canada’s single-payer program cost $551 per person each year. The current U.S. health system? $2,497, according to an analysis published in the Annals of Internal Medicine. Administrative costs account for 34% of total health care expenditures in the United States—twice that of Canada. “The gap in health administrative spending between the United States and Canada is large and widening, and it apparently reflects the inefficiencies of the U.S. private insurance-based, multipayer system. The prices that U.S. medical providers charge incorporate a hidden surcharge to cover their costly administrative burden,” the authors conclude. (TIME; AIM)
CVS says it wants to partner with docs, not put them out of business
Doctors tend to feel threatened by CVS Health’s foray into providing health care services, Modern Healthcare reports, but, during the J.P. Morgan’s 2020 health conference the pharmacy giant said it considers itself a partner. In June, the company announced it would open 1,500 so-called HealthHUBs in its stores by the end of 2021. CVS already runs roughly 1,100 MinuteClinic sites, which are focused on low-acuity services like colds and immunizations. (Modern Healthcare)
INNOVATION & TRANSFORMATION
ACA reduced disparity; progress stalled
The ACA has led to historic reductions in racial disparities in coverage and access since 2014: The gap between black and white adult uninsured rates dropped 4.1 percentage points, while the difference between Hispanic and white uninsured rates fell 9.4 points. But progress has stalled and, in some cases, eroded since 2016. (ABC News; Commonwealth Fund)
Basing pricing on Medicare rates: a growing trend
A growing number of self-insured employer groups are steering employees to high-value providers and negotiating prices as a percentage of Medicare payment rates, Modern Healthcare reports. It points to public and private employers in Colorado, Connecticut, Michigan, Montana, Texas and Wisconsin which are adopting that approach. One of the drivers: a RAND report last year that found employer-sponsored health plans paid hospitals an average of 241% of what Medicare would have paid for the same inpatient and outpatient services in 2017. (Modern Healthcare; RAND report)
CONSUMERS & PROVIDERS
EHRs consume 16+ minutes per appointment
Research published this month in the Annals of Internal Medicine finds that physicians spend 16 minutes and 14 seconds on the EHR during each patient visit. Chart review consumed 33% of this time (5 minutes, 22 seconds), followed by documentation at 24% (3 minutes, 51 seconds) and ordering at 17% (2 minutes, 42 seconds). More than 150,000 physicians and 417 health systems were involved; and data was obtained from the Lights On Network (Cerner), from software files logged in during 2018. (Healio Primary Care; Annals)
Docs would trade money for time, survey says
According to a new Medscape report, half of physicians surveyed said they would take a salary reduction of up to $20,000 per year in exchange for working fewer hours and achieving a better work-life balance. Roughly 53% of women said they would take a pay cut, versus 47% of men. Overall, burnout rates have dropped slightly, from 46% in 2015 to 42%. That varied by age: The burnout rate was 48% for Gen X, compared to 38% for millennials and 39% for boomers. (Fierce Healthcare; survey results)
NEW & NOTED
Genetic link between BMI, psych disorders: There appears to be a robust genetic link between body weight and major psychiatric disorders according to researchers. The genetic risk variants for major depression and bipolar disorders were primarily associated with increased weight, but most of the variants for schizophrenia were related to reduced weight. (Medscape; JAMA Psychiatry)
ACO numbers dropping: Just 53 new accountable care organizations joined the Medicare Shared Savings program for the Jan. 1 start date. By comparison, in 2018, 124 new ACOs entered the program and in 2017, 99 new ACOs joined. There are now 517 ACOs in the Medicare program versus the 561 there were in 2018. (Modern Healthcare)
Defining their terms: Democratic candidates have been throwing around all sorts of terms to describe health care policy. NPR offers a glossary of sorts, stating, “The language in this debate is murky, confusing and hugely consequential. So we’re laying out some key terms to help you keep up.” (NPR)
MULTI-MEDIA
The saga continues: Google pushing Into health data
Google has struck deals with health providers that give the company access to millions of personal medical records without notifying patients. Wall Street Journal journalist Rob Copeland explains Google’s plans for the data on this WSJ podcast. (WSJ)
MARKETVOICES...QUOTES WORTH READING
“The difference [in administrative costs] between Canada and the U.S. is enough to not only cover all the uninsured but also to eliminate all the copayments and deductibles, and to amp up home care for the elderly and disabled. And frankly to have money left over.”
—Dr. David Himmelstein, a professor at the CUNY School of Public Health at Hunter College and co-author of an AIM study, in TIME