Posts Tagged healthcare value
The Value is Falling!!!!!
Posted by John Morrow in For Consumers on November 23rd, 2009
The Value is Falling!!!!!
It’s been recently reported in the NYTimes and by the AARP that drug prices have suddenly increased by as much as 9% on average since the beginning of the year. The increase is such a turnaround in trends that the pharmaceutical industry’s largest market surveillance organization had to re-issue its guidance for the year. This is while more and more drugs are being ADDED to the generic formularies, and retailers are implementing competing programs to WalMart’s $4.00 generic extravaganza. I was pleased to find my local Hannaford Brothers Pharmacy not only with a cheap generic program, but offering a list of oral antibiotics that are now FREE! We know that nothing is free so I dug further.
And, I wasn’t surprised when I randomly took one family member’s prescription to the test to see what I could find in pharmaceutical value. The news may not be surprising to to the NYTimes, but let me just confirm for all of you value-conscious shoppers, it is becoming a “shell game”…even with the alleged transparency on pricing. Where is the value going?
The sample prescription is Accutane, a popular brand medicine for the treatment of acne. Anyone with a teenager might know this one. It comes in several generics, and is typically expensive they tell me because of the safety and compliance rules surrounding its use. The patient must agree to monthly blood tests, take a monthly on-line pledge screening and show their special membership card to prove they remain in compliance. Only then can the patient get the prescription. I’ll pay for that safety, because it is part of the value of what I get. But what has changed recently to influence the price of that?
The retail price in the last 4 months has gone from $294.99 to $650.01 for a typical 30-day supply and the generic has gone from $222.78 to $412.21 for the same. That’s a whopping 200% increase!!! Wow!
I asked the pharmacists what was going on and they said that “prices were now changing daily, faster than they had ever seen”. So much so I found that Web sites that once posted prices, now have the typical insurance company disclaimer that “prices are valid only at the time of dispensing, and subject to change”. One pharmacy chain is having so many people question the prices in their Healthy Saver Plus program that they won’t tell you the price until the drug is dispensed! Are we going backwards with pharmaceutical transparency and value?
I checked my trusty Canadian pharmacy and the Accutane brand was one half the US price and the generic was 40% of the US cost. Same products, same manufacturers delivered to my door via the U.S. Postal Service, now that is value!
I am not the only one who thought it was curious that the Pharmaceutical lobby was so quite on the new pharmaceutical industry tax imposed as part of the legislation moving through the House. I also thought it was interesting that the conditions the pharmaceutical industry would be placed under for price negotiations under health reform were also surprisingly without discord. So, the Secretary in her infinite wisdom is going to get the best price from the pharmaceutical industry? Right!
The pharmaceutical industry is shooting itself in the foot with this kind of behavior. It has recently echoed around Washington that “there are few statesmen when it comes to health reform”, and this is just one more example of how value is falling in healthcare. Shame on the pharmaceutical industry for being so callous, you are anything but statesmen, maybe our only real hope is WalMart.
John Morrow
2009-2010 Hospital Value Index™ – Release 3 Big Cities Low Value
Posted by Editor in For Consumers, Value-Based Purchasing on September 8th, 2009
HOSPITALS IN LARGEST U.S. CITIES OFFER THE LEAST VALUE
Study Finds Markets Such as Los Angeles and San Francisco Score Particularly Low, while Charlotte, Rochester and Pittsburgh Score Highest
2009-2010 Hospital Value Index™ – Release 3 Big Cities Low Value
Nashville, TN – According to the most recent Hospital Value Index™ results, a study that analyzed data from more than 4,500 hospitals across the United States, hospitals in the largest U.S. cities generally offer a low value of patient care compared to elsewhere in the country.
“Our findings conclude that these urban areas offer less affordable and less efficient care, which affected the overall performance of the market,” .
“Ironically, we found that the hospitals with which the White House and its advisers are most intimately familiar deliver low healthcare value against every benchmark ‐ city, state, CMS Region, and the U.S.”
For example, the Chicago market ranked 88th out of the 100 largest markets, just one spot behind McAllen, Texas and one spot ahead of Honolulu. Other than Fort Myers and Las Vegas, the lowest‐ranking large markets were all in California. The top five states in delivering value were North Dakota, Iowa, Montana, South Dakota, and Maine. The bottom five states were New Mexico, Arkansas, California, Hawaii, and Nevada.
“Like every other good and service, price is an essential part of healthcare value,”. “For California, prices are relatively high, even after adjusting for national wage variances. The uninsured, underinsured and health savings account members are disproportionately harmed by the high prices, without receiving superior quality, outcomes or patient experience in exchange.”
“The rules have changed ‐‐ whether because of the economy, health reform or Value‐Based purchasing, and quality alone is not a sustainable strategy for the U.S. hospital industry,” said John Morrow, one of the authors of the study. “These organizations will need to be accountable to their communities for their performance on value and be transparent about doing so. The Hospital Value Index™ is a means toward that end.”
The latest study from the Hospital Value Index™ used the most current and comprehensive set of publicly available data, including Hospital Compare data released by CMS in July 2009, to analyze more than 4,500 U.S. hospitals to discover where patients can find the best value of care in their community. The Hospital Value Index™ researchers analyzed a variety of public data on hospital quality, price, efficiency, and patient satisfaction. The Hospital Value Index™ is updated frequently to reflect the dynamic impact of change occurring in the hospital industry.
Data Advantage will release the complete 2009‐2010 Hospital Value Index™ results on September 15 in Washington, D.C. For more information on the Hospital Value Index™ findings, please visit HospitalValueIndex.com or this site, www.TheHealthcareValueBlog.com.
Healthcare Finance News- Report: BCBS companies hit hard in 2009Blue Cross Blue Shield companies experienced both a decline in underwriting earnings and lower premiums in 2009, according to a report by the credit rating firm A.M. Best. Investment income also declined for BCBS plans because interest rates remained low, the report said. The Oldwick, N.J.-based firm said the turnaround in the financial markets resulted in r […]
- Employers scramble to make changes as health insurance costs increaseA survey of large employers found they are anticipating an 8.9 percent increase in the cost of health insurance next year, up from an average 7 percent this year. As a result, employers said they are planning to make changes to their 2011 healthcare benefit programs. […]
- 40 health systems join Premier's ACO Readiness CollaborativeForty health systems have joined the Premier healthcare alliance's Accountable Care Organization Readiness Collaborative, which will help health systems prepare to become ACOs. "ACOs are a departure from the status quo and will be an ambitious goal for even the most advanced healthcare systems," said Premier President and CEO Susan DeVore. […]
- Study: Magnet hospitals don't offer better working conditions for nursesMagnet hospitals, which are recognized for better patient safety and outcomes, don't provide better working conditions for nurses than non-magnet hospitals, according to a new study by the University of Maryland School of Nursing. […]
- Michigan health system expands hospitalist programAs the demand for hospitalist physicians increases nationwide, Allegiance Health has decided to expand its own program by entering into an agreement with a hospitalist management company. Hospitalists are one of the fastest growing subspecialties in contemporary medicine. These physicians are usually internal medicine specialists who care exclusively for hos […]
- Study: Medical errors cost U.S. economy almost $20 billion in '08A new study estimates that measurable medical errors cost the U.S. economy $19.5 billion in 2008. Commissioned by the Society of Actuaries and completed by Milliman, Inc., the study used claims data to project a measurement of costs for avoidable medical injuries. Of the approximately $80 billion in costs associated with medical injuries, around 25 percent w […]
- Report: BCBS companies hit hard in 2009
- Medicare Spotlight
- Lower Your Costs During the Coverage GapThis page will help you to learn 5 ways to lower your costs during the coverage gap. […]
- Learn More About Plans in Your AreaPart of the Medicare Prescription Drug Plan Finder tool that will help you to identify the plans in your state. […]
- Know What to do about the Flu.Seasonal flu shots are available right now. H1N1 (Swine) flu vaccine is being shipped and will soon be widely available. […]
- Medicare & You 2010Medicare & You contains important information about what's new, health plans, prescription drug plans, and rights and protections to help people with Medicare review their coverage options and prepare to enroll in a new plan if they choose. It is available in both English and Spanish.Each fall, the Centers for Medicare & Medicaid Services mails […]
- MyMedicare.govMyMedicare.gov provides direct Internet access to your Medicare benefits, eligibility, enrollment (including prescription drug plans) and preventive health information - 24 hours a day, 7 days a week. Visit the site, sign up, and Medicare will mail you a password to allow you access to your personal Medicare information. MyMedicare.gov also allows you to vie […]
- Lower Your Costs During the Coverage Gap