Friday, January 16, 2009

SouthernCare Settles

'Tis the season for settlements, it appears. The Birmingham (Alabama, USA) News reported,

SouthernCare is paying the federal government $24.7 million to settle claims that the Birmingham-based hospice company fraudulently enrolled elderly people in hospice and charged Medicare for services when the patients were not dying, according to the U.S. Department of Justice.

The lawsuits alleged that SouthernCare purposefully enrolled ineligible patients for hospice care, which is restricted to patients who have six months or less to live.

One of the whistle-blowers said a patient who had successful heart bypass surgery and yet stayed on hospice through SouthernCare for four years ultimately apologized for not dying.

[Whistle-blowers Tonja] Rice and [Nancy] Romeo said many of SouthernCare's patients didn't need or didn't get hospice care because they were not terminally ill, but the federal government was billed as though they were. Some patients were receiving aggressive curative treatment at the time from other doctors, and other patients barely needed home health care.

Rice said the company mined Birmingham-area nursing homes and doctors' offices for patients they could dupe. Romeo said employees risked losing their jobs if they didn't meet a quota of enrolling 21 patients each per month, no matter whether they qualified for hospice. At times, employees from outside Alabama came into the state to help 'slam' more patients into the program, the whistle-blowers said.

The whistle-blowers' lawyers said SouthernCare had a marketing strategy of going into churches and other places, telling patients they could get Medicare to pay for services not normally covered.

'A lot of these people, when they were approached, thought they were getting home health care,' said Stephen Heninger, Rice's attorney. 'They were just elderly and didn't need hospice.'

SouthernCare, founded in 1995, touts itself as one of the nation's largest hospice providers. The company said in a statement that it admitted no liability through the settlement and that the allegations did not involve the quality of the hospice care provided.


Well, here we go again. Yet another large US health care corporation pays a multi-million dollar settlement of charges alleging unethical, perhaps illegal business practices. The amount, although large, is not big enough to seriously impact the corporations's profits. Although the corporation pays money, the impact is apparently spread amongst stock-holders (here, private owners) and employees. The people responsible for directing the questionable activities are not identified, and apparently pay no penalty.

As we have said before, settlements like this just slightly add to the "cost of business," and are unlikely to deter bad behavior. Until the people who make the decisions that lead to the bad behavior face negative incentives, bad behavior is likely to continue.

Particularly worthy of challenge is the company's statement that this settlement had nothing to do with the quality of its care. If a corporation's leaders are willing to fool vulnerable, elderly patients about their Medicare coverage, why should we trust them to deliver pristine health care? If a corporation's leaders push their employees with recruitment quotas so ambitious as to require duping patients to fulfill them, why should we trust them not to otherwise intimidate and demoralize their employees, making the care they deliver all the more suspect?

Regrettably, the contempt with which many businesspeople who lead health care organizations treat patients, employees, and health care professionals alike explains much of what is wrong with health care today.

See related comments about for-profit hospices in this post by Maggie Mahar in the Health Beat blog.

What, Me Worry? Lilly Fined Over Zyprexa, Should Be Fined For eRecruitment Inanity As Well?

In a story of a type all too familiar to HC Renewal readers, Eli Lilly & Co. on Thursday reached a deal to pay $1.4 billion and plead guilty to a federal misdemeanor charge over promoting an antipsychotic drug to treat dementia when it wasn't approved to do so. This involved promotion for use in the elderly including nursing home patients. "5 at 5" (for "5 mg at 5 PM to keep the sundowning at bay") was the sales pitch.

Lilly will take a reputational hit as a result, although like the Ford Pinto (a.k.a. "the barbecue that seats four") this minor cost of doing business (and the patient harm done) is, in the calculus of modern business, outweighed by the margins they attained for this activity.

Zyprexa's brought in more than $37 billion in sales for Eli Lilly since its U.S. approval in 1996, according to calculations made by The Wall Street Journal.


Here's my take on this from an entirely different angle. Perhaps the following email helps explain why the company lacked people on board who might have prevented this debacle.

In just about the most bizarre and inane recruiting email I think I've ever received, this unsolicited gem came in to my professional email account. This is at least the second time I received this identical message in the past few weeks:

To: (MedInformaticsMD)
From: Candidate Care [candidatecare@rightthinginc.com]
Date: 01/16/2009 06:34AM
Subject: Job Opportunity - Lilly

Dear MD,

I am a member of the Staffing Team at Lilly and I am writing to express my interest in your background and skills in regards to a position with our company.

At Lilly , we are looking for candidates who meet a specific and unique skill set. I feel that you may be this type of candidate and would like to discuss this opportunity with you further, and I encourage you to visit our website at https://jobs.lilly.com/index.cfm for more information. Lilly offers very competitive salary and benefit packages, commensurate with skills and experience.

Once you are at this website please select the category and what type of work you might be interested in. You can then select the position of interest and review the specific information about your potential new career

Applying online for this position would be a great first step. Shortly after you apply, someone from our staffing team will contact you to discuss next steps and provide you with more information.

Thank you for your time. I will monitor our database for your submittal and ensure you are contacted soon after.

Sincerely,

Lilly , Talent Acquisition Team

Please do not reply to this email


Problems I see:

1. Dear "MD"

Dear MD? How so very personalized and suggestive that this company values people. Perhaps, as in the recent U.S presidential election, it could simply address potential candidates as "that one?"

2. "I am a member of the Staffing Team at Lilly and I am writing to express my interest in your background and skills in regards to a position with our company"

"I" am a member? Who are you? What is your name? Are you with RightThingInc.Com (apparently some sort of eRecruitment outsourcing company -ed.) or Lilly? What do you mean by "A position?"

I'm listening, but ...

3. "At Lilly , we are looking for candidates who meet a specific and unique skill set. I feel that you may be this type of candidate and would like to discuss this opportunity with you further."

What specific and unique skill set? What "opportunity?" The link that was sent seems to be some sort of tracked hyperlink that merely sends me to Lilly's general eRecruiting site and search tools. If you mouse over the deceptive "https://jobs.lilly.com/index.cfm" hyperlink in the email it appears to contain some type of unmentioned, embedded tracking data for purposes unknown:

http://www.netrecruit.net/cgi-bin/CloakTrkr.pl?_siteGuid=spartner
&_smhid=2000961039010&_isa=Recruiter&_isaID=69481630
&oemID=RTI_1084&_redirencoded=https%3A%2F%2Fjobs.lilly.com
%2Findex.cfm&_txt=https%3A%2F%2Fjobs.lilly.com%2Findex.cfm


4. "Once you are at this website please select the category and what type of work you might be interested in. You can then select the position of interest and review the specific information about your potential new career."

Select "the" position of interest? The position of interest to whom? Them, or me? Is this a guessing game of some type? Find the hidden treasure? What the hell are they talking about? Did the person who wrote this speak English? Did they have a brain?

5. "Applying online for this position would be a great first step. Shortly after you apply, someone from our staffing team will contact you to discuss next steps ..."

Oh, really? How about if I apply for CEO? For Janitor? (or, how about Chief Corporate Honesty Officer?)

6. "Thank you for your time. I will monitor our database for your submittal and ensure you are contacted soon after." -- Lilly, Talent Acquisition Team

And who, exactly, are you, Mr. or Ms. T. A. Team? Perhaps your name is "HAL?"

7. "Please do not reply to this email"

Consider this post my reply.

HAL, will I also have to take some moronic online personality assessment test? And by the way, could you please open the pod bay doors?

Seriously, I've been involved in recruitment and hiring in both industry (hospital, pharma) and academia. This Lilly email has truly hit a new low for inanity, misuse of information technology, and more seriously the utter destruction of my ability to take a company that would issue such a message, or hire a contractor who did so, seriously.

I'm sure many smart and competent people of integrity would feel likewise.

It's likely hard to get good talent to prevent debacles over drugs when you present your company to the world in this manner.


What, me worry? Zyprexa is good for 'dem gorked out old fogies!


Additional thought: speaking of talent management, was anyone dismissed over the push to market Zyprexa for off-label use in dementia? If not, why not?

-- SS

Thursday, January 15, 2009

I Ask Again: Should The U.S. Call A Moratorium On Ambitious National Electronic Health Records Plans?

In Nov. 2008 I wrote a post "Should The U.S. Call A Moratorium On Ambitious National Electronic Health Records Plans?"

The question was raised based on reports of serious difficulty experienced by the UK in their national program for electronic health records, Connecting for Health.

I commented on how the world financial crisis of 2008-09, combined with chronic project difficulties and mismanagement and profound clinician resistance was creating such high levels of doubt about the UK's Connecting for Health (CfH) national program for electronic health records (EHR's), that the program was under consideration for actual cancellation.

From the British press:

Bank bailout puts £12.7bn NHS computer project in jeopardy

Christine Connelly, the Department of Health's recently appointed head of informatics, is understood to be reviewing whether the programme is a cost-effective way of improving the quality and safety of patient care.

She will have to find compelling arguments to stop the Treasury earmarking health service IT as a candidate for cuts to compensate for the billions spent on the bailout of the banks. However, the high cost of cancelling contracts with IT suppliers may be a factor saving the programme from cancellation.

It is simply stunning that the UK might be "locked in" to a potential disaster by IT vendors. (How is this allowed to happen?)

I'd also commented on how the lack of true Medical Informatics education and expertise in the new UK CfH "head of informatics" (and predecessors, for that matter) was a symptom of a much larger disease in healthcare IT.

The disease is a paradoxical (especially for medicine) and turned-on-its-head leadership structure where "amateurs" reign. Amateurs, in the sense that my significant telecommunications experience and even licensure as a radio amateur (ham) extra class, a hobby, would not qualify me to, say, lead a national telecommunications projects for the British Armed Forces due to lack of professional telecommunications training and credentials.


Read my Nov. 2008
"Moratorium" post for details on the UK problems.

Since that time, there have been two remarkable events in the United States (when I wrote the above posting, I had no idea whatsoever that the following would occur):

In Dec. 2008, the Joint Commission (the organization that accredits healthcare organizations here) issued a Sentinel Event Alert on HIT recommending that significantly more caution be taken in its design and implementation due to risks posed by the technology. In "Joint Commission Sentinel Event Alert On Healthcare IT" I commended the JC for taking such a step, likely to be viewed with disdain by the business sector and those infatuated with HIT as a "magic bullet" panacea for healthcare.

Then, in Jan. 2009, the highest scientific authority in the U.S., the National Research Council (NRC) of the National Academies issued their report after a several-year study of HIT entitled "Computational Technology for Effective Health Care: Immediate Steps and Strategic Directions," a rather innocuous sounding title for a potentially explosive report.

The National Academies perform an unparalleled public service by bringing together committees of experts in all areas of scientific and technological endeavor. These experts serve pro bono to address critical national issues and give advice to the federal government and the public.

Four organizations comprise the Academies: the National Academy of Sciences, the National Academy of Engineering, the Institute of Medicine and the National Research Council.


I believe the title of the Press Release about the NRC report summarizes the report more accurately than its native title. The Press Release title is: "National Research Council: Current Approaches to Health IT Insufficient."

I presented the release at the post "Current Approaches to Health IT Insufficient ... and Other Master of the Obvious News."

While I do not know if my work had any influence on this report, its conclusions parallel those of myself and a relatively small number of colleagues who've stuck to unpopular (with the industry, that is) contrarian views on the unquestioned goodness of HIT. It is likely a number of the authors of this report were aware of my work over the years, as a frequent poster in the American Medical Informatics Association listservs and frequent writer and speaker on these issues, including some outspoken comments made at AMIA when some of the authors were in attendance. I believe the report can be better summarized by the following quote:

"Healthcare IT, dominated by non-medical IT personnel who views these tools as IT systems that happen to involve clinicians, rather than clinical tools that happen to involve computers, have mismanaged HIT through their false assumptions, lack of knowledge and lack of insight for at least several decades." - Silverstein

The NRC report found that current efforts aimed at the nationwide deployment of health care IT are not sufficient to achieve medical leaders' vision of health care in the 21st century and may even set back the cause. This conclusion was reached based partially upon site visits to eight U.S. medical centers considered leaders in the field of health care IT.

It concluded that greater emphasis should be placed on information technology that provides health care workers and patients with cognitive support, such as assistance in decision-making and problem-solving , as opposed to its current "medicine as a business" paradigm providing clinicians with, essentially, an inventory system based on 19th century accounting theorem (the major critique of IT, in fact, by Peter Drucker in his latter years). As I observed in 1999:

Management expert Peter F. Drucker, one of the most respected names in modern management thinking, offers some highly relevant insights about information issues in his book "Management Challenges for the 21st Century" (HarperBusiness, 1999). These insights amplify the importance of medical information specialists (medical informaticists) taking leadership roles in healthcare organizations, and the problems with allowing MIS to predominate on medical information issues and clinical information tool development and evaluation.

Drucker writes that "the information revolution...is not happening in IT or MIS, and is not led by CIO's...what has triggered the [real] information revolutions and is driving them is the failure of the 'information industry' - the IT people, the MIS people, the CIO's - to provide information. For 50 years, information technology has centered on data...and technology [not useful information]."

He continues, "The data available in business enterprises are still largely based on early 19th century accounting theorem. MIS has taken the data based on this theorem and computerized it. They are the data of the traditional accounting system. IT...collected the [accounting system's] data, manipulated them, analyzed them and presented them. On this rested, in large measure, the tremendous impact the new technology had on what cost accounting data were designed for: operations. But it also explains IT's near-zero impact on the management of business itself."

I'd also observed at that time that Medical Informatics and its teachings can thus be seen as a means to an end: the creation and dissemination of useful information that advances the practice, science and management of healthcare, not just facets of its operations.

In 2008 I wrote that:

... I believe the unimaginative, process over results, tightfisted control, bureacratic "data-processing" culture of the business IT (management information systems) world to be the lineal descendant of IBM's patchcord plug-panel programmed, card tabulating machines from which IBM made a large portion of their profit in the days before the electronic computer. You perhaps required such a culture when you were running huge businesses from stacks of tens of thousands of punched cards. However, such a model does not work well in meeting the information needs of clinical medicine.

... Medical informatics, a pioneering field, in many ways saw the electronic computer not as a card-based data processing machine but as a canvas for development of creative works to serve the needs of clinical medicine and its practitioners.

The National Research Council report in fact incarnates my contention that HIT is not a subspecies of MIS or management information system (i.e., business IT). I maintain that only the assumption that it is, combined with leadership by non clinicians, could result in outcomes such as this:

The report describes difficulties with data sharing and integration, deployment of new IT capabilities, and large-scale data management. Most importantly, current health care IT systems offer little cognitive support; clinicians spend a great deal of time sifting through large amounts of raw data (such as lab and other test results) and integrating it with their medical knowledge to form a whole picture of the patient. Many care providers told the committee that data entered into their IT systems was used mainly to comply with regulations or to defend against lawsuits, rather than to improve care. As a result, valuable time and energy is spent managing data as opposed to understanding the patient.

Provision of cognitive support for clinicians is perhaps an alien concept to those mired in data processing paradigms.

It seems critical that the National Research Council's recommendations for

"interdisciplinary research in biomedical informatics, computer science, social science, and health care engineering"

occur, in order to change current thinking and practices in HIT design, implementation and lifecycle. Further, this research must occur, and in a manner unbiased by industry interests, before more tens or hundreds of billions of dollars are sunk into yet more HIT systems that miss the mark.

Even the vaunted VistA system of the Veterans Administration has some problems:

Software hiccups cause drug, treatment errors at VA
Associated Press
Posted: January 14, 2009 - 5:59 am EDT

Patients at Veterans Affairs health centers around the country were given incorrect doses of drugs, had needed treatments delayed and may have been exposed to other medical errors because of software glitches that showed faulty displays of their electronic health records.

The glitches, which began in August 2008 and lingered until last month, were not disclosed by the Veterans Affairs Department to patients even though they sometimes involved prolonged infusions of drugs such as heparin, which in excessive doses can be life-threatening, according to internal documents obtained by the Associated Press under the Freedom of Information Act.

There is no evidence that any patients were harmed, even as the VA says it continues to review the situation. But the issue is more pressing as the federal government begins promoting universal use of EHRs. President-elect Barack Obama has made it a part of an additional $50 billion a year in spending for health IT programs that he has proposed.

The VA's recent glitches involved medical data—vital signs, laboratory results and active medications—that sometimes popped up under another patient's name on the computer screen. Records also failed to clearly display a doctor's stop order for a treatment, leading to reported cases of unnecessary doses of intravenous drugs such as blood-thinning heparin.

In a statement, the VA said there were nine reported cases where patients at the VA medical centers in Milwaukee, Durham, N.C., and Marion, Ind., were given incorrect doses—six of them involving heparin drips that were given for up to 11 hours longer than necessary. The other cases involved infusions of either sodium chloride or dextrose mixtures that were prolonged for up to 15 hours past the doctor's prescribed deadline.

This is a rather major "glitch", even more unnerving in that it was sporadic and geographically dispersed.

With these issues in mind, I again ask the question, backed up not just by my own relatively unknown and trivial work but by the national accrediting agency for healthcare in the U.S., and the highest scientific body here as well:

Should The U.S. Call A Moratorium On Ambitious National Electronic Health Records Plans?

$50 billion a year is big money that might be better spent elsewhere - such as providing care for the poor and for disadvantaged children - until we know how to get HIT right.

I suggest it may be best not to go all-out for HIT under the current paradigm. It is my belief, in fact, based on the above issues plus a chronic influx of HIT difficulty and mismanagement stories I hear from colleagues, ex-colleagues, recruiters, etc., that healthcare organizations not contractually obligated should consider a postponement of plans to purchase clinical IT (i.e., systems for direct use by clinicians such as EHR's).

This postponement should last at least until the issues that lead to ineffective and counterproductive HIT can be better understood and corrections initiated in the industry.

-- SS

Out of the RUC - the American College of Physicians Initiates an Open Discussion

We and the other bloggers have been trying to provoke an open discussion of the secretive, unrepresentative, unaccountable process which the US Center for Medicare and Medicaid Services (CMS) uses to fix payments to physicians. That process may largely be responsible for the implosion of primary care in this country, and substantially responsible for how we manage to pay so much for health care, yet have worsening problems with access and quality.

See our previous discussions of the process, and the central role of the RBRVS Update Committee (RUC), most recently here, and in earlier posts (here, here, here, here, and here) and important articles by Bodenheimer et al,(1) and Goodson.(2)

The ACP Advocate blog, the apparently official voice of the American College of Physician on its advocacy efforts, took up the issue in this post authored by Robert B Doherty, ACP Senior Vice President for Governmental Affairs and Policy.

Doherty summarized some of the points made on Health Care Renewal and on DB's Medical Rants. He appeared not unsympathetic to some of the criticisms of the RUC and the process that Medicare uses to fix physician payments.

I will summarize some of the points he made in his responses below, and interpolate my replies. I have also submitted the same material as a comment to his post.

- The RUC just provides advice.

The RUC provides [just] recommendations to the Centers for Medicare and Medicaid Services (CMS) on the physician work relative value units (RVUs) under the resource-based relative value scale.

++ My comments: The RUC may say that all it provides is advice, but that advice is almost always uncritically accepted by CMS. Per the also excellent article by Goodson(2), the AMA itself claims that CMS follows more than 90% of the RUC's "recommendations." ++

- The RUC did propose some increases to payments to primary care physicians. (Regarding this point, he quoted from a letter written by the Chair of the RUC:


The RUC recommended significant increases to E&M (evaluation and management) services, which were implemented by the CMS on 1 January 2007. These permanent increases result in an additional $4.5 billion in E&M services payments each year! To imply that they are small and insignificant is preposterous. Family physicians may see their overall Medicare payment increase by 5% or more.

++ My comments: The RUC did very belatedly recommend some increases in evaluation and management codes, but these hardly made up for its years of neglect of primary care (to use polite terms), and this increase, as Dr Larson pointed out, benefited all physicians, not just primary care, or cognitive specialties, to the extent it was not nullified by across the board cuts necessitated by the SGR. ++

- The RUC is helping promote the concept of the medical home.

The RUC deserves credit for the evaluation and management increases, and more recently, for estimating the physician work involved in care coordination for the Medicare medical home demonstration project.


++ My comments: How well the RUC did in the case of the proposed medical home is unclear. See this post and its links to a serious critique of this work. ++

- The RUC ought to be reformed, but not abolished.


But the RUC does need to look at its own composition and processes. It needs to be more representative of primary care and more transparent in its deliberations. The new Obama administration and Congress would be well-advised to insist that the processes Medicare uses to determine the values of physician services be as transparent as possible, and include sufficient and appropriate representation and expertise from primary care. They should also require a better process for identifying overvalued services.

But making the RUC the main villain in a system created and run by the government misses the mark. We have to remember that it is Congress and CMS, not the RUC, who makes the rules. As long as the Medicare payment system pays based on volume instead of rewarding prevention and care coordination, primary care physicians' incomes will lag behind specialties that can generate more volume, because primary care doctors can only increase volume by cramming more patients into an already over-scheduled day. This would be true even if the RUC were reconstituted to include more primary care doctors.

And, we need to ask if the RUC were to disappear, who should recommend the work involved in physician services? Economists and physicians hired by the federal government?


++ My comments: I surely agree that the RUC ought to be more representative of primary care and more transparent. As noted in Dr Goodson's article, primary care has had a very small representation on the RUC. There is not a single designated seat for general internal medicine, but orthopedics effectively has two (one for orthopedics, one for spine surgery, which has a separate society).

Note further that many of the specialty societies that support RUC members are supported heavily by industry, that is, by pharmaceutical, biotechnology, and device companies. Such corporations benefit from irrational exuberance about procedures, since they sell the drugs, devices and supplies that are used in procedures. See posts
here and here, for example, on some of the industry sponsorship of the AAOS, which sponsors an "orthopedic" seat on the RUC.
Such institutional conflicts of interest affecting the RUC have never been publicly
discussed.

The transparency issue is not trivial. The identities of the people who sit on the RUC have been SECRET. A few members have admitted publicly that they are, but the AMA - I'll say it again - keeps the membership roster of the the RUC secret. One wonders what they have to hide. Not only is the membership secret, of course, but the group's deliberations are also secret.

It is the privilege of the AMA, a private group, to keep the membership of the RUC secret. But I would note, that secret is also kept from the general AMA membership, who are presumably paying their dues to support this secret committee.

On the other hand, since the RUC functions as a de facto government agency (note again that CMS seemingly gets input from no other source for its revisions of RBRVS), having such important government decisions, which have nothing to do with national security, made in secret is offensive.

It is true that Congress and CMS made the rules that allowed all this to happen. There are very big questions about why CMS pursued this course. Maybe some investigative reporter, some congressional agency, or in a new administration, CMS itself will investigate how this happened.

But the AMA did not have to go along with it. They could have insisted on an open,
transparent, representative, accountable process, and refused to participate were that not allowed. Instead, they at least went along with a fee setting process that is opaque, unrepresentative, unaccountable, and not obviously subject to any ethical standards.

The RUC should disappear. Medicare should develop an open, transparent, representative, accountable process to negotiate what it pays physicians. The names of the people involved should be public. The people involved should be free of obvious personal conflicts of interest, and should not be sponsored by organizations with obvious institutional conflicts of interest.++


At any event, I salute Mr Doherty for getting this important policy issue more into the light. The RUC seems to be one of those things that it was not considered polite, or politically correct, to talk about, much less criticize. Maybe an open dialog will lead to some measurable reform of a physician payment system that badly needs it.

References
1. Bodenheimer T, Berenson RA, Rudolf P. The primary care-specialty income gap: why it matters. Ann Intern Med 2007; 146: 301-306. Link
here.
2. Goodson JD. Unintended consequences of Resource-Based Relative Value Scale reimbursement. JAMA 2007; 298(19):2308-2310. Link
here.

Wednesday, January 14, 2009

WellPoint Sanctioned

Giant insurance company/ managed care organization WellPoint was just sanctioned by the US government. As reported by the Wall Street Journal,

Federal officials temporarily banned health insurer WellPoint Inc. from marketing or selling Medicare health or drug plans after they said computer problems caused it to deny thousands of seniors coverage for vital medications and cancel their benefits.

The ban, effective late Monday, is one of the toughest penalties levied on a private Medicare plan provider since the introduction of the government program's drug benefit three years ago.

In an unusually terse letter to WellPoint, the government agency that oversees Medicare said the company's 'longstanding and persistent failure to comply with [Medicare] requirements' had begun to pose 'a serious threat to the health and safety' of Medicare beneficiaries.

WellPoint, the country's largest health insurer, is the fourth-largest provider of Medicare drug plans.

The problems at WellPoint stem from computer glitches that began at least six months ago, an issue that Medicare officials had been monitoring and that the company says it had been trying to fix. But the problems surged and became more serious at the start of this year, when WellPoint's systems failed to accurately process some of the new data for its 2009 plans, said the Centers for Medicare and Medicaid or CMS, the agency that runs the health-care program for the elderly.

As a result, thousands of seniors found they couldn't fill or renew prescriptions for drugs to treat chronic heart failure, seizures, asthma and other medications, the agency said. WellPoint also mistakenly dropped coverage for many beneficiaries and overcharged others.

'Furthermore, WellPoint failed to follow through on assurances to CMS that the problem was immediately and fully corrected,' the agency's letter said.

The computer problems are just the latest at WellPoint. Last year, a project to consolidate some claims-processing systems caused it to miscalculate how fast its medical costs rose and to underprice some of its commercial plans, ultimately contributing to a profit warning.

We just posted about how often the antics of the leadership of managed care/ health insurance giant UnitedHealth provide material for Health Care Renewal. Even larger health care insurer/ managed care organization WellPoint has also been a frequent flier on our electronic pages. We most recently posted about financial management issues at WellPoint here, and insurance coverage issues here.

Yet despite evidence of mismanagement and worse leadership problems at large health care organizations, these organizations remain dominant players in our dysfunctional health care system, and the managers and executives who ought to be accountable for these problems continue to blithely collect their tremendous compensation packages.

As we have said until blue in the face, ill-informed, incompetent, conflicted and even corrupt leadership of ever larger and more powerful health care organizations, enabled by opaque, unrepresentative, unaccountable governance not subject to ethical standards, continues as probably the most important cause of health care dysfunction.

UnitedHealth (and Ingenix) Settles

UnitedHealth just settled yet another lawsuit. As reported by the New York Times,

In a settlement with one of the nation’s biggest insurers, New York’s attorney general, Andrew M. Cuomo, has ordered an overhaul of the databases the industry uses to determine how much of a medical bill is paid when a patient uses an out-of-network doctor.

A statement from Mr. Cuomo’s office said the industry had engaged in 'a scheme to defraud consumers' by systematically underpaying the nation’s patients by hundreds of millions of dollars over the last decade.

The move, to be announced Tuesday, is part of a settlement with the insurance giant UnitedHealth Group, which operates the industry databases. It results from a yearlong investigation by Mr. Cuomo’s office that concluded the data had understated the true market rates of medical care by up to 28 percent.

The settlement will have a nationwide impact because UnitedHealth, the biggest health insurer in New York, operates the databases used by the entire industry, through its Ingenix business unit. The deal calls for creation of a new independent database, to be run by a university that is still to be selected.

Because insurers typically reimburse patients for only 70 to 80 percent of the 'reasonable and customary' cost of medical services when they visit doctors outside the insurer’s designated network of physicians, the patient can get shortchanged if the insurer understates the prevailing local fees.

According to Mr. Cuomo, the databases consistently understated the local 'reasonable and customary' rates, which Ingenix collects from insurers. The report of the investigation’s findings described the industry calculations as 'created in a well of conflicts' that produced information that was 'unreliable, inadequate and wrong.'

In an interview Monday, Mr. Cuomo said: 'For years this database was treated as credible and authoritative, and consumers were left to accept its rates without question. This is like pulling back the curtain on the wizard of Oz. We have now shown that for years consumers were consistently low-balled to the tune of hundreds of millions of dollars.'


It is amazing how often the antics of UnitedHealth leadership have been grist for the Health Care Renewal mill. As we noted in September...

We have posted quite a bit about leadership problems at one of the US biggest for-profit managed care organizations/ health care insurers, the UnitedHealth Group (UHG), most recently here.

UHG has not always been known for being particularly patient-, employer-, or physician-friendly. For example, as reported by the Hartford Courant, "UnitedHealth Group Inc., the largest U.S. health insurer, will refund $50 million to small businesses that New York state officials said were overcharged in 2006." We have previously discussed how UHG promised its investors it would continue to raise premiums, even if that priced increasing numbers of people out of its policies (see post here); allegations that the UHG acquisition of Pacificare in California lead to a "meltdown" of its claims paying mechanisms (see post here); charges that the UHG acquisition of Sierra Health Services would give it a monopoly in Utah, and that UHG was transferring much of its revenue out of the state of Rhode Island, rather than using it to pay claims (see post here); and numerous violations of Nebraska insurance laws by UHG (see post here).

Such anecdotes conflict with the UHG mission statement, as recently revised. The company pledged to:
* Enhance the performance of the health care system, and improve the overall health and well-being of the people we serve and their communities.
* Work with health care professionals to expand access to high-quality health care so people get the care they need at an affordable price.
* Support the physician/patient relationship and empower people with the information, guidance and tools they need to make personal health choices and decisions.

One hypothesis is that UHG has trouble adhering to its idealistic mission because of the shortcomings of its leadership.The story of the fall of its recent CEO, Dr William McGuire, was strikingly instructive. As we have previously discussed, (see these posts here, here, and here from 2006 with links backward) Dr McGuire received outrageously lavish remuneration, which stood in stark contrast to the previous UHG mission's pledge to "make health care more affordable."Controversy has swirled over the timing of huge stock option grants given to Dr McGuire (see post here), leading to his resignation in October, 2006 (see post here). More recently, McGuire agreed to pay back some of those options, although that would reportedly leave him with more than $800 million worth of options (see post here).

Note that the latest settlement seems to make a mockery of the last point in the UnitedHealth mission statement as listed above. It would appear that information as it appeared in UnitedHealth subsidiary's Ingenix's data-base disempowered people, that is, people other than UnitedHealth leadership.

Nonetheless, despite all this bad behavior, UnitedHealth is still one of the US' largest managed care organizations/ health insurers. That suggests how fundamental problems in leadership of health care organizations are to the ongoing health care crisis.

By the way, note that this recent settlement is about dodgy practices at UnitedHealth's Ingenix subsidiary. Just yesterday, we discussed a report that made the rather bizarre assertion that the US would soon face a shortage of gastroenterologists, members of a quite well recompensed procedurally oriented sub-specialty. But we noted that not only was the report sponsored by a company that manufactures the endoscopes and related equipment used by gastroenterologists, but that it was authored by the Lewin Group, often portrayed as independent and authoritative, but in fact another part of Ingenix. The just announced settlement should suggest even more skepticism about the independence and authoritativeness of this report.

Just as the prevalence of conflicts of interest affecting medical researchers and academic medicine should make patients and physicians skeptical of the clinical research they do, the prevalence of conflicts of interest affecting health services and policy researchers and pundits should make people, physicians, and policy makers skeptical of the policy research they do, and the policy recommendations they make.

Tuesday, January 13, 2009

Who Is Warning Us About a Shortage of Gastroenterologists?

We have frequently discussed the worsening shortage of primary care physicians and the current crisis in primary care. Now, in the NY Times is a story of a different kind of physician shortage:



The United States will face a severe shortage of gastroenterologists as the population ages and the demand for colorectal cancer screening increases, a health care consulting firm has projected.

At current rates of cancer screening, the United States will need an additional 1,050 gastroenterologists by 2020, according to the study by The Lewin Group.


Note that this isn't the proclamation of a current shortage, but the forecast of one to come. The Times did not provide a link to the report, nor explain the rationale for its prediction. Given that gastroenterologists are remunerated much better for their time spent doing colonscopies than primary care physicians are spend for their time spent taking care of patients sans procedures (see: Bodenheimer T, Berenson RA, Rudolf P. The primary care-specialty income gap: why it matters. Ann Intern Med 2007; 146: 301-306. Link here. ) , it is a little hard to believe that we will not be able to recruit sufficient gastroenterologists in the future, barring any radical change in how physicians are paid.

However, the NY Times article did note:


The projections were reviewed by outside experts and commissioned by Olympus Corporation of the Americas, which manufactures cameras used to screen for colorectal cancer.

Actually, Olympus manufactures not just the cameras, but the colonoscopes themselves (see their web-site, which states the company manufactures "a full line of diagnostic, therapeutic, slim and adult colonoscopes with the highest resolution available.")

Moreover the study was done by the Lewin Group, which was not further characterized in the NY Times article, but does often seem to be a source of authoritative pronouncements on health care policy. So what is the Lewin Group?

It's web-site says it is "a premier national health care and human services consulting firm." It also claims:

The Lewin Group is committed to independence and integrity in our work. We combine professional expertise with extensive knowledge and a rigorous approach to analyzing and solving problems to deliver value to each of our clients and to the larger community as well.

That's a somewhat self-contradictory assertion. It seems that delivering "value" to specific clients might be hard to do while maintaining "independence."

Who are Lewin's clients? We already know that Olympus, a company that makes more money if it sells more colonoscopes, sponsored this study of demand for colonoscopy. The Lewin Group says its clients include "hospitals, health systems and providers;" "payers / insurers;" and "pharma/bio/device." Furthermore, its explanation of its services to the latter group includes:

We provide analysis and results-focused strategies demonstrating the value of medical products to public and private sectors payers, clinicians, health care facilities, patients, and policymakers. We also provide policy insight and guidance to industry clients on evolving trends and their impacts.


"Results-focused strategies demonstrating the value of medical products" somehow seems more akin to marketing than objective policy analysis.

Finally, who owns the Lewin Group? It is not a not-for-profit, and it is not even an independent for-profit corporation. In fact, per the web-site,


The Lewin Group is an Ingenix company. Ingenix, a wholly-owned subsidiary of UnitedHealth Group, was founded in 1996 to develop, acquire and integrate the world's best-in-class health care information technology capabilities.


So, the Lewin Group is in fact part of UnitedHealth, a corporation that was until recently run by a CEO who became known for the more than a million of apparently back-dated stock options he received (see our post here).

For balance, I must note that the same web-page asserts:


The Lewin Group operates with editorial independence and provides its clients with the very best expert and impartial health care and human services policy research and consulting services.

But again, note that the focus is on making clients happy, not providing the public with unbiased knowledge.

One might further argue that it is not in the interests of UnitedHealth, as a commercial managed care organization, to pay for more and more colonoscopies. However, in the current US health care system, in which there have been more and more procedures, UnitedHealth has prospered, perhaps because it has been easy for it to simply past the costs of these procedures along.

At any rate, once again it's hard to tell who the players are in health care policy without a scorecard. As the health reform debate heats up, expect to see more authoritative proclamations coming from groups with vested interests other than simply providing unbiased expertise. Such groups, of course, have the right to make their views known. But it would be a more honest discussion if everyone were willing to put their vested interests on the table.

Thanks to one of our scouts for a tip on the ownership of the Lewin Group, and hat tip to KevinMD.