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Entries in Consumers (82)

Thursday
May212015

Not One Penny More

By Kim Bellard, May 21, 2015

If you've been to a doctor's office or seen some other health care provider, chances are you've had to sign a patient consent form that, among other things, makes you promise that whatever they end up doing to you, and however much they choose to charge you for it, you're responsible for paying.  If your health plan happens to get you a negotiated rate and perhaps covers some of the expenses, that's great, but the provider is still looking to you for payment.

Maybe you shouldn't be so quick to sign.

I don't know which is worse: that providers don't think they should tell you in advance what they plan to do to you, or that they don't want to admit how much they will try to charge for it.  Honestly, why do we keep falling for this?

I thought about this when reading Kaiser Health News' Radical Approach to Huge Hospital Bills: Set Your Own Price.  It profiles benefits consulting company ELAP Services, which goes beyond traditional services like benefits design, direct contracting, and medical bill reviews by also vowing to go to court if necessary to support their customers in disputes over medical bills.

The KHN article cited the example where an employee of one of ELAP's clients had back surgery and was billed $600,000 by the hospital.  ELAP analyzed the hospital's Medicare's cost reports, and advised the client to pay a much lower amount.  "We wrote a check to the hospital for $28,900 and we never heard from them again," said the client's CFO.

ELAP CEO Steve Kelly says "overwhelmingly, the providers just accept the payment."  ELAP has clients write their process for determining reimbursements into benefit plan documents to give greater legal weight.  They already have a federal court ruling in support of their process.  The contract requires them to defend patients from any collections efforts, in return for a percentage of the savings.

Most health plans base their out-of-network payments on "reasonable charges," which is how most health insurance plans worked prior to the advent of network plans like PPOs, when negotiated payment rates became the norm.  

Whether it has worked as intended is not entirely clear, but what is clear is that providers can come after patients for amounts not paid out-of-network by the health plans, all the way up to billed charges, not just to the "reasonable charges."

What I want to know is, if health plans truly believe their limits on charges are reasonable, why don't more of them act like ELAP when providers' charges exceed them?   ELAP makes it clear whose side they are on; health plans, not so much.

I view the charge structure of most providers as a pernicious symptom of much of what is wrong with our health care system.  They rarely have much to do with either actual costs or market forces, and they reflect an arrogant attitude that consumers are there to be gouged as much as possible.  Or, more charitably, if not arrogance, then a certain benign neglect to patients' financial well-being.  

I'd love to see a health plan whose EOBs not only detailed how much they were paying and how much of the remaining balance the consumer had to pay, but also said, "by the way, we think $X is the most your provider should charge you for this service, and we don't think you should pay a penny more.  If they try to charge you more, let us know and we'll help you fight it."

Now that would be a health plan that consumers would think more of, one that is truly on their side.

This post is an abridged version of the posting in Kim Bellard’s blogsite. Click here to read the full posting

Friday
Apr242015

Does Patient Satisfaction Matter? 

By Kim Bellard, April 24, 2015 

In a provocative article for The Atlantic, Alexandra Robbins posits that we may have a "problem with satisfied patients."  Ah, only in health care...

Ms. Robbins fears that hospitals may be focusing too much on making patients happier, rather than on making them well.  She cites how hospitals are rushing to provide "extra amenities such as valet parking, live music, custom-order room-service meals, and flat-screen televisions," which may help patients have a better experience but which mean resources not going directly to patient care.

She may have a point.

Ms. Robbins' analysis found that hospitals that do poorly on three or more categories of patient outcome measures actually score above average on patient satisfaction.  In her words: "Many hospitals seem to be highly focused on pixie-dusted sleight of hand because they believe they can trick patients into thinking they got better care."

Ouch.

Ms. Robbins cited a 
2012 study by Fenton, et. alia, that further quantified the patient satisfaction "problem."   According to their research, patients with the highest satisfaction also have higher odds of inpatient admissions, greater prescription drug expenditures, higher overall expenditures, and higher mortality.

Patient satisfaction is clearly in vogue, as evidenced by
CMS unveiling its star ratings on Hospital Compare last week, based on HCAHPS results, and by Medicare's increased focus on value-based payments.  The 2015 HIMSS Leadership Survey found that 87% of respondents listed patient satisfaction as their organization's top priority, higher than even sustaining financial viability (85%).

AHA's official response to the CMS ratings was cautionary: "There's a risk to oversimplifying the complexity of quality care or misinterpreting what is important to a particular patient, especially since patients seek care for many different reasons."

OK, fair enough...so what does AHA propose instead?

Another study on patient satisfaction,
by Vanguard Communications, looked at patient reviews of physicians, and also found some unexpected results: "Ironically, the analysis indicates that generally as a doctor’s level of education and training increases, patient satisfaction actually decreases."

I didn't see that one coming.

Vanguard believes that the ratings reflect more about customer service than clinical quality.  Ron Harmon King, Vanguard's CEO, says:  "Does that mean more highly trained specialists deliver poorer customer service? We can’t say with any certainty, although we found a correlation."

The Physicians Foundation 2014 survey found that 42% of respondents did, indeed, list a customer-service related reason for why they were satisfied with their family physician, way ahead of actual treatment related reasons (26%).  

 
Ms. Robbins is thus not alone in being skeptical about patient satisfaction scores.  She backed up her skepticism with a quote from nurse Amy Bozeman: "The patient is NOT always right. They just don’t have the knowledge and training."  

I hate to break it to either of them, but even with all our health care professionals' knowledge and training, our health system's record on quality is 
pretty dismal.

Look, patient satisfaction is not a perfect measure, nor should it ever be the only measure used, but it has to be an important measure.  I can see patients being initially swayed by amenities or even simple courtesy, neither of which have typically been in abundance in our health system.  But we can't afford to forgo the burgeoning effort to focus on improving patient satisfaction.  At some point we have to trust that patients will see through smiles and nicer waiting rooms, and judge quality based on whether they are actually getting better.

And, in fact,
research from Johns Hopkins suggests that patients may not fall for "pixie dusted sleight-of-hand" tricks after all.  The study concluded that:

"Patients responded positively to pleasing surroundings and comfort, but were able to discriminate their experiences with the hospital environment from those with physicians and nurses...Hospital administrators should not use outdated facilities as an excuse for suboptimal provider satisfaction scores."   

As Abraham Lincoln famously said: "You can fool all of the people some of the time, and some of the people all the time, but you cannot fool all the people all of the time."

This post is an abridged version of the posting in Kim Bellard’s blogsite. Click here to read the full posting

Friday
Oct102014

Study on Health Plan Shopping – Reluctants, Premiums and Defaulters

By Clive Riddle, October 10, 2014

Vitals – who provide a consumer health information platform including doctor ratings and reviews, has released a study on health plan shoppers in open enrollment season, and lumping many of the shoppers into three categories: (1) The Reluctant; (2) The Premium; and (3) The Defaulter. Vitals study was based on their August online survey of 1,000 adults.

The big takeaways from their survey?

  • 80 percent of respondents said they were not planning to switch their insurance this year.
  • More than 1 in 5 are dissatisfied with their plan.
  • Nearly one-third said they were unhappy with the value for cost of their plan.
  • 27 percent were unhappy with customer support services
  • 9 percent were unhappy with the lack of quality network doctors and hospitals

So what the heck are Vitals’ trio of Reluctants, Premiums and Defaulters?

Vitals classifies Reluctants as age 30-44 with no dependents and household income under $25k, who are satisfied with their plan provider network but not the plan value. Vitals says “the Reluctant doesn’t want to buy insurance and isn’t satisfied with their plan – if they even have one. They’re more likely to have an HMO to keep costs down, but still say they’re not getting a good value for cost. Over 1 in 4 will switch their health plan during open enrollment this year. Their main gripe: Cost. They index higher for cost increases over the past year and report being surprised more by health care costs this year, compared to last year.”

Vitals classifies Premiums as age 45-60 with dependents and household income over $100k, who also are happiest with the network and unhappiest with plan value. Vitals tells us “the Premium is most likely to have Cadillac-like coverage for their health care. They index higher for employer-provided health care and PPO-type plans, which offer the most flexibility. Premium shoppers are most likely to say they’re happy with their health insurance – only 5 percent will switch during open enrollment! And they uniformly agree they have adequate access to medical care.”

Finally, Vitals classifies Defaulters as any age adult (but often age 60+) with no dependents and household income of $50 - $99k. They define the Defaulter as someone “on cruise control and typically doesn’t review or change their plan from year to year.”

Wednesday
Aug272014

What Is Amazon Up To? 

By Kim Bellard, August 27, 2014

Back in April, PwC and HRI issued a report that asked what new entrants might be healthcare's Amazon.com.  Now it appears that it might just be Amazon itself.

What we "know" is that unnamed "Amazon leadership" met in late July with Howard Sklamberg, FDA's deputy chief for global regulatory operations and policy, and other unnamed "various FDA leadership."

That's it; everything else is speculation.  Not much of a story perhaps, but, hey, without speculation there would be no point of blogs, and then I'd have to spend my time doing something else.

Still, the speculation is interesting, especially with a company like Amazon that has repeatedly demonstrated its ability to disrupt markets.

They already outsource their cloud services (Amazon Web Services, or AWS), their distribution capabilities, and their payment systems, the latter now being expanded to in-store payments, going up against the likes of Visa and Mastercard.  In a smartphone world dominated by Apple, Samsung and other established manufacturers, they fearlessly have introduced their own version, the Fire.  I could go on in various other spheres, but the point is clear -- they're not afraid of anyone.

So now health care?

Here are three ways that I would love to see if Amazon could add value to health care:

Reviews: OK, all you Amazon shoppers -- and there are a lot of us -- how many of you buy a product (even if not on Amazon) without first checking out the Amazon reviews?

Their reviews already cover various medical supplies/devices sold on Amazon, but wouldn't you love it if those reviews applied to, say, physicians or hospitals?

Recommendations: Amazon is noted for their personalized shopping recommendations, based on user's shopping and purchase history on the site and a lot of Big Data collaborative filtering.  Whether it is a recommended item, the "also viewed" products, or the "frequently bought together" combo suggestions, the recommendations are pretty effective in helping boost Amazon's sales.

Imagine if Amazon applied this to health care products, services, and even providers, recommending ones that they believe might best fit you, and possibly helping map out the various steps of a treatment plan (as they are "frequently bought together").

Medical tourism:  No, I don't mean the out-of-country packages of lower-cost health care services often thought of as medical tourism (although I'm not excluding them).  I mean more broadly making services or packages of something that consumers actively shop for, and breaking the traditional pick-the-closest doctor/hospital mindset that most consumers have gotten used to.

It's fun to speculate what Amazon might do, but the real benefit of them coming into health care in a bigger way would be that they might do something truly unexpected and unique, without health care industry blinders limiting their creativity.

They haven't asked for my advice -- and please feel free to get word to them that they should -- but what I'd urge Amazon

  • Keep it retail: Amazon made its reputation as a retail company, and yet health care has stubbornly resisted being truly retail -- Remember your roots!
  • Make people mad: I hope the AMA, AHA, and the state medical boards are furious, that individual health systems and health care professionals are scared to death, and there generally is a lot of arm-waving and teeth gnashing.

If everyone is applauding, Amazon didn't go far enough.

If all Amazon wants to do in health care is to make it easier for us to buy even more of the things we already buy too much of, and pay too much for, I wouldn't be surprised, but I will be disappointed.  We have plenty of companies who can help us tinker around the edges of the status quo, but all too few companies

This post is an abridged version of the posting in Kim Bellard’s blogsite. Click here to read the full posting

Monday
Jul282014

Stopping on Green - Part 2

By Laurie Gelb, July 28, 2014

(Read the first installmant of this part post at Stopping on Green

 They Don’t Need No Satisfaction

If/as we rethink the adherence doctrine, with its emphasis on following bottom-up, and begin to consider supporting patients as largely self-informed deciders rather than passive consumers, to what corollaries does that lead?

Imperative 1: Consign “patient satisfaction” to the worm bin, and focus on beliefs and behaviors that drive optimal outcomes.  These are not the same thing. The latter arise from knowledge, experience and culture.  Patients aren’t satisfied, and can’t be, with a product that they hate, fear and continually shy from, unless they seek it out obsessively. They can be content with a single or series of encounters that turn out well, or “the best they could,” but we don’t want them to repeat the experience unless/until they have to, and indeed most of them [the worried well notwithstanding] don’t.  In what other category do we worry about who likes Dr. Smith how much while telling all and sundry that only 10% of the solution rests with Dr. Smith? And speaking of that 90%…

Imperative 2: Disease management that constrains high utilizers’ cost curves while optimizing the outcomes for which we all pay.  As we tell patients continually, but fail to support, we are actually not in charge of managing _their_ disease. To manage disease, we have to support patient, clinician and caregiver choices that avoid duplication, optimize coordination and keep health, not health care, as the laser focus. 

Imperative 3: An an e-health platform that supports all of the above.

E-health is only as good as the health part. It can’t be acceptable to cede EMR design to bureaucrats, process refinement to the business office and online functionality to Webmasters and programmers. 

Baby, I Don't Have a Car

Are we so focused on “consumer-driven care” that we have forgotten to provide consumers with a vehicle to drive toward optimal outcomes? 

We can’t decide to educate simply if/how/when to deviate from our bibles. It doesn’t pay enough for a layperson to learn our bibles. We have to educate in a different way — not simply about vocabulary and labels (the much-touted health literacy, which means about as much as knowing how to read an electrical schematic out loud). 

We can, as any educational program, provide healthcare intelligence. A consumer knows how to change a light bulb and if/how she can rewire a socket. In short, she knows what she doesn’t know. When we preach “follow,” many patients are honestly unsure as to the decisions they have the capacity to make. Then, when they call the overloaded provider’s office to ask about their current concern, we fail to address the underlying uncertainty about the parameters that prompted the question in the first place. Definitions of terms are not a substitute, since knowing what wiring is doesn’t mean I’m off to the junction box.  

The Long and Winding Road

I know that on some freeways, I can exceed the speed limit, but that still doesn’t mean I can drive 100 mph [an action whose commitment time is obviously greater, given braking distances, than if I were driving 70]. I also know that speed can mean death [stakes]. We know that we must never pour a drop of water into a gas tank, to take one example. Or that we should never pour gasoline onto a flame. We are not going to deviate “just a little” to see what happens. How did we internalize, abstract the rationale for these absolutes? We learned something from someone and/or tried it once, depending on our respective backgrounds.

Even when disease management prides itself on counseling small, incremental changes (bring an apple to work!), we are prescribing without insight on either side. If I hate apples, I’m left wondering if it’s comparable to bring a red plum, which I do like. Think about how long that simple question would take to answer via the Internet, and you have a glimpse of the muddy information overload around fruit. And everything else that might be healthy. 

Few of us eat eight servings of fruit and veggies daily (or know how many we ate). We can’t. When as content providers we offer these lofty outcome measures as “information,” consumers roll their eyes, laugh, sigh, blink, snort, tune out and move on. We want and expect them to deviate if/as necessary. In wellness, we encourage them to “do the exercise you like” and eat the greens they like, etc. We don’t say, eat a carrot salad every day because we know they wouldn’t, however good an idea it might be. Yet our most common copy point in command voice is, “Eat [insert official content here].” That implies a literal meaning, for something that we don’t mean. This language is worse than gibberish; it spawns opposition because it rings so far from the truth of daily living. 

Moreover, to apply information, you have to know something about evaluating information quality, relevance and how literally you need to take it.  How are we imparting a health care “street sense?” 

Teach Your Patients Well

If we put on a can of peas the bland, cover-the-bases “content” that populates the major health information sites, human knowledge of peas would come from experience and the “word on the street,” just as it does for other areas in which the “official voice” is seldom heard because it is too opaque. How much of what you know about street drugs comes from officialdom? Amazon can recommend, sales associates can counsel, but for health care, with far greater stakes, there’s canned risk assessments (scripted encounters, waiting room brochures, package inserts, click here for a percentage you’ll need the footnotes to understand). For the obese, the dyslipidemic, the diabetic, the hypertensive, the smokers, we’ve made a better path the ultimate cliché. 

For decades, we’ve said, “We need to teach people the principles of weight management,” while forgetting the public health 101 concept of self-efficacy. If they don’t believe they can’t do it, they won’t even try. Weight management and all the rest of the “good ideas” require a series of choices that many people don’t believe they have the wherewithal to undertake, particularly in the face of an increasingly contradictory evidence base that our nagging letters usually fail to acknowledge at all. We’re not having conversations, as occur whenever you chat with your mechanic; we’re lecturing, pretentiously, and everyone’s falling asleep, only to wake up when the EOB appears.

And then we have the “act as if” faction in our ranks. “Big change is the only way it happens!” Yes, big change can happen if/when someone is scared, cornered, bored, self-impatient, angry, sorrowful. But we’re being paid on outcomes. Can we bank on emotion to inspire often short-lived change? And change from what? Our baseline measurement system is hopelessly flawed. Surveys reveal “the right answer.” Focus groups are pay for-a-play. Claims data reflect reimbursement, less often reality. Medical charts reflect adversarial legal incentives and a shortage of time. Even “real dialogues” during outpatient visits vamp to the camera, and social media monitoring finds the outliers with lightning speed. The best evidence of the real you have at your disposal any time is looking at you in the mirror.

Tell Me Why

Our risk assessment tools don’t allow the patient to contribute the facts that s/he knows best. Clinicians use heuristics to document and chart. Most charted histories omit at least one potentially relevant condition, event or genetic predisposition; it was not on a form, and/or it was not discussed. Many patients also reveal “medical history fatigue” which constrains the completeness of any particular history, and patients who have seen their chart notes are also aware that not all the information they provide is captured, apart from the form itself.  

 Since our brains are small, our days short and we’re only human, just as we have to use heuristics (decision shortcuts) to make everyday decisions about which route to take to work or what to order for lunch, we use heuristics to prioritize, consider, make, avoid, deny, delay and simply tune out myriad health issues and choices.  We’ve failed miserably to convey stakes and commitment times in health care, a lack of knowledge that can only constrain optimal decision-making. If an alien from another planet watched TV or went online for a few minutes, who could blame him for thinking that allergies or erectile dysfunction must be the world’s worst plague? 

It's All in the Game

In short, instead of focusing on an illusory “healthy mindset” whose stock doctrines are breathtakingly obvious (don’t touch the hot stove, stop smoking and cut back on Twinkies), we can more productively allocate all the money spent on bland DM pap to upgrading to the decision support available for silk blouses and video games. 

This week’s stiff-upper-lip letter from a major network, syndicated by a major vendor: …”We understand that there are many reasons why you may not want to take your medication…if you have any questions or concerns, we encourage you to contact your doctor or local pharmacy.”  Talk about “information” that will never be [read or] used! Each two-page letter contains two sentences about the particular drug’s rationale and consequences for not taking it; the rest is unadulterated condescension. How recently was any of your communication…interactive? Inquisitive? Conversational? Brief? 

Direct education in decision-making requires not just doling out information, but encouraging its acquisition through other channels, preaching that it is best leveraged in combination and in understanding, not rote. And then, it falls to MCOs, agencies, clinicians, jurisdictions…anyone with skin in the game, to kick our cheerleaders off the field and start playing full contact football. Our opponents include disease, ignorance, fear, denial, poverty, hunger, addiction and crime. And they've got a large lead. 

Monday
Jun092014

Stopping on Green 

By Laurie Gelb, June 9, 2014

The intersection greets you with a green light, but an accident blocks your lane. You brake instinctively, disregarding an official signal to proceed. Contradictory stimuli define our lives. 

Cut to health care’s adherence doctrine. “Ask your doctor. Take your medication as prescribed.” In what other subject area is it optimal for end-users to follow instructions without having internalized a rationale and therefore knowing when and how to ignore them? If you’re repairing something and the instructions say “use an inch of duck tape” and it takes two, do you stop working or use more tape?  You make a split-second decision in the moment. 

We expect to kludge. Every day, most people take action that is unprecedented for them, slightly different, under new circumstances or seen in a new light. When a wall-mounted sink falls off, most of us can imagine that we should use the main water shutoff even if we’ve never used it before. And if we came to a screeching halt at every choice about food, drink, OTC, rx, exercise, surgery, medical equipment, caregiving, parenting, safety, environmental controls, etc., we couldn’t function. Certainly, some health decisions merit more than a second for consideration, but that doesn’t mean they get it, whereas some receive more consideration than they deserve.

You might ask, why is understanding the rationale for and exceptions to instructions so important, considering that patients can consult a clinician that knows both well? But you know the answer: seldom is the clinician or the network next to patients as they make critical choices to act, avoid, deny, even everyday re-evaluation of instructions about meds, diet, exercise, procedures, lifestyle, rehab.The vast majority of decisions that drive health outcomes are unknown, unseen and uninfluenced by content and service providers. And our constituents, knowing their own context better than anyone while facing their own toppled sinks, must often take what is for them unprecedented action. 

As the green light illustrates, we haven’t abstracted information until we can act optimally when things go wrong, or when conditions differ from a perfect world. The necessity of lifelong learning applies to health care in spades, while the evidence base for preaching “follow” (along with paternalistic clinicians and arsenic cosmetics) reeks of mold.

Memorizing that 2x2=4 doesn’t mean that you understand arithmetic. When a toddler repeats words, she hasn’t yet learned the language. We should want health care choices made by reason, not rote. Since any ongoing regimen, including observation, should be re-evaluated periodically, the notion of “set it and forget it” doesn’t apply. 

Few life choices entail a greater emotional investment than your own and loved ones’ health, while typical messaging dispassionately informs you that following the rules offers the best odds.  Yet the “exceptions” are so ubiquitous as to be cliché. Long-distance runners drop dead of early MIs as grizzled sun-worshippers light up into their 80s.  The “what you get is what you follow” thesis merits growing skepticism as truisms (fats block arteries, calcium strengthens bones, exercise prolongs life) emerge as increasingly complex and non-curvilinear propositions. Moreover, today’s patients face competing risks and lifestyle choices that their ancestors never knew. 

Instead of preaching reliance on catechisms that may or may not apply to a given situation, how about skill-building in decision-making directly, including the rationale for caring at all, transcending health calculators and guidelines. Economic studies show lower costs for the “engaged.” It can’t be an innate urge to obsess about health care that engages them, since hypochondriacs entails higher costs. The truly engaged understand enough to add value to their care.

Let’s not seek “informed consumers” a la the cereal aisle, who can only consume the information and care we provide, but informed patients, caregivers, clinicians, administrators and payors, who can collectively lift all boats. Clinicians can ask better questions to optimize outcomes, while EHR designers find better ways to incorporate the answers. Payors can better align provider and patient incentives. Patients and caregivers can ask better questions as well, while acting optimally on the stimuli life presents. 

Our “best” patients are not necessarily the most compliant with our every word. Instead, they ask realistic questions and probe for the best kludges so they can best apply what they know to what they don’t. Indeed, exploring disease information on one’s own has been associated with greater adherence in the traditional sense, time and again. Our “best customers” and the caregivers that support them understand that intention is not action, there is no free ride in health care and sometimes they must preserve their own health and even lives by stopping on green. 

Last week’s Modern Healthcare piece on the Cleveland Clinic illustrates, hardly for the first time, that even marquee institutions mislay part of the achievable.  By the same token, the lives we can save or improve by helping decision-makers to do their best work are incremental to the followers who leave more to chance.

Next installment: what are quick wins for patient satisfaction [sic], disease management and e-health if/as we rethink the adherence doctrine?

Thursday
May222014

The Myth of the Sovereign Consumer 

By Kim Bellard, May 22, 2014

The title of this post comes from a provocative article by Bruce Vladeck in a recent Health Affairs Web First edition focused on provider consolidation.  I'll get back to Dr. Vladeck, but anyone who has been following my posts knows that provider consolidation has been a source of much concern to me, so the four articles in this HA edition were of much interest.

Paul Ginsburg and Gregory Pawlson's
article takes it as a given that providers have been consolidating, are going to consolidate, and that, left unchecked, this would tend to raise prices.  They outline a fairly comprehensive list of potential strategies to deal with this impact. 

Another
article, from economist Martin Gaynor, reviews the issue of consolidation, some of the research on it, and the various ways that competition is regulated. 

A third article, from MD/JD Professor William Sage, suggests that the problem is not so much provider consolidation as it is "getting the product right."  He argues that much of our health care system isn't as competitive as it could be because a "..long history of regulation and subsidy has distorted prices, quality, and innovation." 

The fourth, and most fun, article was from Dr. Vladeck.  He doesn't seem as worried about either provider consolidation or the ultimate need for government rate setting (although he acknowledges it is not politically likely).  He views the Sage and Ginsburg/Pawlson articles as being based too much on what he calls a "fundamentally obsolete conceptual model": the myth of the sovereign consumer. 

Dr. Vladeck seems skeptical of Sage's proposals to redefine the product, and sees consumers as being clearly worse off than twenty years ago, especially since:

...consumers are regularly inundated with self-serving or downright erroneous information from health insurers, providers, and entrepreneurs alike about health care services and their use that carries the implicit message that any illness or financial difficulty is essentially the fault of the consumer.

Huh?

Dr. Vladeck concludes that large payors, including the government, may be the best bet to control prices, but concludes that "instead of continuing to try to impose axiomatic and solipsistic theories on a reality to which they increasingly fail to apply, we need to figure out what kind of health care system we really want and how much we are prepared to pay for it."

I don't disagree with his conclusion, just most of what preceded it.

Chip Kahn, President of the Federation of American Hospitals, used the HA edition to
post his thoughts on consolidation.  Not surprisingly, he's all for it, citing what he sees as the more ominous consolidation on the health plan side. 

Neither Mr. Kahn nor Dr. Vladeck seem to credit a slowdown in the rate of increases to the last recession, or to changing consumer behavior due to increased cost-sharing and less confidence in their economic prospects. 

Which leads back to Dr. Vladeck's "myth of the sovereign consumer."  Yeah, I'd have to agree that the record is pretty poor about consumers taking good care of their own health.  I'd also have to agree that the full impact of increased cost-sharing is, as yet, unclear. 

At the end of the day, though, given a choice between having responsibility for my health or abdicating it to someone else, I'd rather have it, and I think most people would agree.  It's not that the "sovereign consumer" is a myth, it's that we haven't ever really tried it. 

Frankly, in many ways, it is pointless to decry provider consolidation, because it is going to happen, just as it is happening in virtually every other sector of the economy.  

The Commonwealth Fund is "searching for the
next breakthrough in health care, by which they mean "an idea, a paradigm, a strategy that positively and profoundly disrupts the status quo."  Finding ways to truly empower consumers -- not just paying lip service to it -- may just be such an idea.

This post is an abridged version of the posting in Kim Bellard’s blogsite. Click here to read the full posting

Friday
Mar282014

March Brings Three Different Slices of Health Plan Consumer Experience Ratings

by Clive Riddle, March 28, 2014

This month, three annual proprietary consumer experience studies have yielded separate slices of the health plan consumer experience. J.D. Power, Temkin Group and Saatmetrix have all weighed in, and each shed favorable light on Kaiser Permanente, among other plans.

J.D. Power released results from their eighth annual Member Health Plan Study, in which they provide member satisfaction index rankings by region. Their 2014 Member Health Plan Study is based on responses from more than 34,000 members of 136 commercial health plans across 18 regions in the United States. The study was fielded in December 2013 and January 2014.  

J.D. Power ranks satisfaction on a 1,000 point scale. Satisfaction is highest among health plan members in the California and Michigan regions (in a tie); the Indiana-Illinois and Mid-Atlantic regions (in a tie); and the East South Central and South Atlantic regions (in a tie). Satisfaction is lowest in the New England, New York-New Jersey and Southwest regions. 

Top ranked plans by region, according to the J.D. Power study, were compiled in healthsprocket, in these regional lists:

J.D. Power 2014 Member Health Plan Study: Top Plan Scores - Southern United Stated

  • Kaiser Foundation Health Plan (784) ranks highest among health plan members in the South Atlantic region (which includes Georgia, North Carolina and South Carolina) for a fifth consecutive year
  • AvMed Health Plans and Humana (in a tie at 690 each) rank highest among health plan members in the Florida region, AvMed ranks highest in the Florida region for a third consecutive year
  • Cigna (689) ranks highest among health plan members in the East South Central region (which includes Alabama, Kentucky, Louisiana, Mississippi and Tennessee)
  • Aetna (677) ranks highest among health plan members in the Texas region

J.D. Power 2014 Member Health Plan Study: Top Plan Scores - Eastern US

  • Kaiser Foundation Health Plan (732) ranks highest among health plan members in the Mid-Atlantic region (which includes Maryland, Virginia and Washington, D.C.)
  • Capital District Physicians Health Plan (727) ranks highest among health plan members in the New York-New Jersey region
  • Geisinger Health Plan (705) ranks highest among health plan members in the Pennsylvania region for a third consecutive year
  • Tufts Associated Health Plans (681) ranks highest among health plan members in the New England region (which includes Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont)

J.D. Power 2014 Member Health Plan Study: Top Plan Scores - Midwestern US

  • Health Alliance Plan of Michigan (711) ranks highest among health plan members in the Michigan region for a seventh consecutive year
  • Dean Health Plan (703) ranks highest among health plan members in the Minnesota-Wisconsin region
  • Medical Mutual of Ohio (697) ranks highest among health plan members in the Ohio region
  • Health Alliance Medical Plans (692) ranks highest among health plan members in the Indiana-Illinois region
  • Wellmark Blue Cross Blue Shield of Iowa (680) ranks highest among health plan members in the Heartland region (which includes Arkansas, Iowa, Kansas, Missouri, Nebraska and Oklahoma)

J.D. Power 2014 Member Health Plan Study: Top Plan Scores - Western US

  • Kaiser Foundation Health Plan ranks highest among health plan members in the California region for a seventh consecutive year, with a score of 756
  • Kaiser Foundation Health Plan (732) ranks highest among health plan members in the Northwest region region (which includes Oregon and Washington)
  • Kaiser Foundation Health Plan (703) ranks highest among health plan members in the Colorado region for a seventh consecutive year
  • SelectHealth (698) ranks highest among health plan members in the Mountain region (which includes Idaho, Montana, Utah and Wyoming) for a fifth consecutive year
  • Blue Cross Blue Shield of Arizona (675) ranks highest among health plan members in the Southwest region (which includes Arizona, New Mexico and Nevada

Temkin Group pronounced the health plan industry “mediocre” and bestowed the highest customer experience rankings to Kaiser Permanente and Humana respectively, in releasing results from their fourth annual ranking of companies based on a study of 10,000 U.S. consumers that “examines the quality of the customer experience delivered by 268 organizations across 19 industries: airlines, appliance makers, auto dealers, banks, car rental agencies, computer makers, credit card issuers, fast food chains, grocery chains, health plans, hotel chains, insurance carriers, Internet service providers, investment firms, parcel delivery services, retailers, software firms, TV service providers, and wireless carriers.”

Bruce Temkin, managing partner of Temkin Group, tells us "consumers give pretty bad ratings to most health plans, as this entire industry needs a customer experience makeover.  Overall, the health plan industry averaged a 56% rating in their study and tied for 17th place out of 19 industries.

Temkin ratings by plans included in the survey were:

  1. Kaiser Permanente (68%)
  2. Humana (63%)
  3. Medicare (62%)
  4. TriCare (62%)
  5. United Healthcare (59%)
  6. Blue Shield of California (58%)
  7. Aetna (57%)
  8. Health Net (55%)
  9. CIGNA (54%)
  10. Anthem (BCBS) (53%)
  11. CareFirst (BCBS) (48%)
  12. Medicaid (45%)
  13. Highmark (BCBS) (44%)
  14. Empire (BCBS) (42%)
  15. Coventry Health Care (41%).

Temkin noted that Humana (+12 points), Blue Shield of California (+7 points), and United Healthcare (+5 points) improved the most between 2013 and 2014. Coventry Healthcare (BCBS) (-18 points), TriCare (-9 points), Empire (BCBS) (-7 points), and Highmark (BCBS) (-6 points) declined the most since 2013. Kaiser Permanente with their 68% rating, was in 109th place overall out of 268 organizations across 19 industries. Humana, with a rating of 63% placed 160th overall. Coventry Health Care (BCBS) was in last place across all 268 companies in the ratings with their score of 41%.

Satmetrix Systems released results for their 2014 Satmetrix® Net Promoter® Benchmarks which measure and rank customer loyalty more than 219 brands across 22 U.S. industry sectors, including financial services, insurance, technology, online services, retail stores, electronics, travel and hospitality, and telecommunications. The Satmetrix Net Promoter Benchmark rankings are based on survey responses from more than 24,000 U.S. consumers nationwide who indicated they had significant experience with a company's products or services in the previous 12 months. A company's Net Promoter Score is based on customers' likelihood to recommend the company's product or service. The score is the percentage of customers who are promoters, rating the company 9 or 10 on a 0 to 10 point scale, minus the percentage who are detractors, rating 6 or lower.

The Satmetrix study for the health insurance sector followed these nine companies:

  • Aetna
  • Anthem
  • BlueCross BlueShield of Florida
  • BlueCross BlueShield of California
  • Cigna
  • Humana
  • Kaiser
  • Medicare
  • United Healthcare

Like J.D. Power and Temkin, Satmetrix found Kaiser Permanente to be a dominant force, leading the health insurance category for the fourth consecutive year  and “improving to an all-time high [Net Promoter Score] score of 40 points. The provider rated highest on a number of important key loyalty drivers, as patients appreciated its service features, company reputation and the feeling that Kaiser Permanente acts in their personal best interest.” Kaiser’s score was 23 points higher than the industry average. Like Temkin, Satmetrix ranked Human in second place: “with a score of 32 points, Humana saw significant improvement from 2013, moving up 14 points to beat out last year's second place finisher, Medicare (27 points).”

Tuesday
Jan212014

Health Engagement and MLK

By Cyndy Nayer, January 21, 2014

It’s Martin Luther King Day 2014. The sun is shining and the quotes are flowing on the media.  Each year I seek one of his quotes to guide my efforts:

Human progress is neither automatic nor inevitable... Every step toward the goal of justice requires sacrifice, suffering, and struggle; the tireless exertions and passionate concern of dedicated individuals.[1]

I continue to seek the comfort of his timeless words because rest does not come easy to an innovator, a “change agent,” just as it does not come easy to a country in need of predictability and trust. The trial-and-error distress of health care transformation feels like a weight on the US business and health care delivery systems.  In an era of uncertainty, the goal of health improvement has been a sidebar.  The Affordable Care Act suffers from a tiresome rollout on a dysfunctional website, but the real malaise is the weariness of those who see promise in the accessibility of care by all. At these moments, Dr. King’s words inspire the courage to persevere.

In order to create predicable, sustainable business growth in the health care sector AND the general business community, we must aim for engagement of all the health care users and providers in order to achieve better health.  Better health care is a tool, just as better jobs, better education, and better roads are tools towards economic security.  These goals are not held solely in the health care delivery sector nor the US or state governments.  The power of better health lives in all of us.

We need health engagement across all of the stakeholders. Consumer-driven must not be “consumer choice” without consumer input.  Patient-centered cannot be decided around the patient without the patient and/or patient-family input.  Provider reimbursement must not fall only on the physicians and hospital networks, but to all of us to create the economic justice that will support the long-term change.

From packaging data and purchasing services, from bundling payments to building centers of excellence to increasing jobs, each strategy must address the question, “will this build better health?”  If we are to build this vision of health, which, by definition demands the alignment of goals for all of those that touch “health care,” then we must define the alignment needed and disconnects that exist.  Some of the most obvious are:

  1. In an era of high-deductible health plans, asking the patient/consumer to adhere to a treatment regimen that is unaffordable;
  2. Ignoring depression or anxiety in the treatment of a chronic condition, which can derail the success of a patient to get to optimal health;
  3. Changes in evidence and safety recommendations that take years to get to the primary care physician and his/her staff;
  4. Misaligned payments, such as fee-for-service in primary care when the goals are adherence to lifestyle and treatment regimens—this misalignment drives up total costs without regard to patient or provider commitment;
  5. Purchasing health services, devices, communication, and treatments without holding the vendors accountable for outcomes, and most especially accountable for improved engagement and adherence in high-cost condition management.

These obvious disconnects are the rationale for recasting the Health Value Continuum as an engagement framework with defined goals, from waste reduction (paying for readmissions, paying for emergency care with no emergency, and paying for risk appraisals with low participation) to organizational performance, and ultimately to community sustainability (wherein there is measurable improvement in health and economic risk). 

In short, getting to health, wealth and performance demands engagement and accountability for our own health and wealth.  Our personal commitments must be mirrored in the organizational accountability from the providers, systems and payers.  These personal and system commitments should reflect in the policy improvements that will support interoperable technology, innovation, and reduction of food deserts, among other lofty goals.  Can we get there?  We can, with the faith that we are on the road to better lives, as Dr. King envisioned.  Our faith and courage will take us to the health quality and efficiencies that every community in the US needs and deserves.


[1] http://www.brainyquote.com/quotes/authors/m/martin_luther_king_jr.html

Friday
Jan102014

The Locked-Up Potential of Healthcare Consumers

By Clive Riddle, January 10, 2014

It’s become a common theme in healthcare surveys – the consumer has all this potential in our era of health reform, and much is riding on the consumer in the healthcare reform equation, but to-date that potential remains largely locked up.

Altarum Institute’s Center for Consumer Choice in Health Care  has just released findings from their latest semi-annual Altarum Institute Survey of Consumer Health Care Opinions.  Let’s listen to what what Wendy Lynch, Director of Altarum’s Center author of their study has to say about that: “It’s a positive sign that people are open to asking their doctors about costs and involving themselves in their health care decisions. But overall, the study shows that people still have their head in the sand when it comes to what they think they can control. They have more power than they realize just by asking questions; now they just need to use it. Consumers still believe that problems in health care are the fault of insurance companies or government and underestimate what they can do themselves.”

Well said, Wendy Lynch.

Here’s some of Altarum’s findings from their eighteen-page report on the study:

“One-third would like to make a shared decision with their doctor, and 43% want to make the final decision with some professional input. Fewer than 10% of consumers prefer the doctor to have the final say in decision making… There appears to be a recent decline in the percent of consumers who want to be completely in charge of their decisions, from more than 30% in fall 2011 to 16% in fall 2013.”

“35% [of  consumers] sometimes forget to take their medicine, and 28% did not take their medication within the past 2 weeks. When examining rates by age, younger respondents were more likely to forget or skip medications.” [46% of ages 25-34 sometimes forget, and 35% of this group skipped in past two weeks]

“63% of consumers reported that a doctor has ever invited them to choose among different medications or treatments. A larger share (83%) reported that they have received a doctor’s recommendation for a specific course of action.”

“Four out of five consumers (79%) use input from friends and relatives to guide them in their health care provider choices. More consumers tapped into online sources compared to prior years, nearly one-third (32%) reported that they use online ratings of a doctor’s bedside manner or waiting time, and 27% use online quality ratings. Only 16% indicated that they look at cost information to assist them in selecting a doctor, and use of advertisements remains low at 7%.”

“The majority of consumers indicated that they would be comfortable approaching their doctor about the cost of health care services. Four out of five are either somewhat or very comfortable asking about price. Only 15% and 4% are somewhat and very uncomfortable, respectively. Despite these high comfort levels, fewer than half (46%) of all respondents reported that they have ever asked how much a visit would cost before going to the doctor.”

“Only 6% felt very confident and 29% were somewhat confident that they could take steps to find less expensive care. Nearly half (47%) were uncertain and 18% were not at all confident that they could reduce costs. They appeared to be slightly more convinced that they could shop for better doctors, if not better prices. Just a little more than half (52%) felt that they could compare information to select a more qualified health care provider, while 39% were uncertain and 9% were not at all confident.”

“20% of individuals who strongly agreed with the statement “There is nothing I can do to affect the cost of health care” also reported that they are overweight, they use tobacco, or they do not exercise. Only 13% of patients who reported none of those unhealthy behaviors agreed with the same statement.”

“Three out of five (44%) reported that they sometimes choose to go without health care due to financial concerns. Additionally, 27% respondents reported that the main reason why they are currently employed is to receive health insurance benefits. In general, cost seemed to be more prohibitive for younger respondents.”

“Only 5% of consumers are certain that they will have the recommended savings needed to cover health expenses after they retire. On the other hand, more than 80% are either unsure or unlikely to have enough money set aside for health care post-retirement.”

 

Friday
Jan032014

Can the Consumer Choose Wisely in 2014?

By Clive Riddle, January 3, 2014

The just released January 2014 issue of Medical Home News includes a profile of Paul Keckley, PhD, in which he is asked this question: “Looking back on your years as a health care analyst, what has been this country’s major achievement and what has been its greatest disappointment in terms of health care delivery?” His answer: “Greatest disappointment: the consumer is ignorant about the health system, even after all the fuss for and against health reform. Greatest positive: data-driven healthcare!!”

In August 2013, Kaiser Family Foundation released new survey results that the Wall Street Journal summarized as:  Consumers Remain Baffled By Health Law, Poll Shows. At the end of the year, things got no better. Consider findings from a December 2013 Consumer Reports survey of consumers regarding the Affordable Care Act which found:

  • 38% of respondents indicated they felt LESS informed over the course of the past month.
  • 48% thought the ACA established a government-run health plan
  • 36% thought the new law allowed the government to control their selection of doctors
  • 30% believed the law set up government panels that would dictate decisions about end-of-life care
  • One-quarter or less of respondents correctly identified the above as false statements.

But Paul Keckley’s point wasn’t just that consumers are confused about reform – rather that they are confused about the entire system, in spite of reform. And there a plethora of survey results previously cited in mcolblog postings to back that up.

George Van Antwerp, in blogging his 2014 healthcare predictions, posts that “consumer engagement in healthcare will continue to be the elusive Holy Grail.”

It is difficult to engage someone who is confused, and ignorant about the system. The consumer might feel as if they are in the scene at the end of Indiana Jones and the Last Crusade, confronted with a hundred different goblets, with only one being the true Holy Grail, as they try to navigate their health choices, and fear that the Guardian of the Holy Grail won’t be telling them that they “have chosen wisely.”

Friday
Oct252013

Survey on Consumer Engagement and Health Tracking

By Clive Riddle, October 25, 2013

Partners Healthcare’s Center for Connected Health, commissioned Harris Interactive to survey 2,000+ consumers on health engagement and tech driven tools to monitor health and wellness, in conjunction with the launch of the Center’s new Wellocracy program.  They found that almost half of respondents (48%) say they have trouble staying motivated to live a healthy life, and less than a fourth (22%) are very confident that they can keep track of their own health.

Joseph C. Kvedar, MD, the founder and director of the Center for Connected Health tells us, "there are dozens of activity and health trackers on the market today, and literally thousands of health apps available for consumers. Yet, instead of getting people moving towards a healthy lifestyle, most feel paralyzed by all these choices and the technology can be dizzying. "We know that if we give people -- young and old -- insights into their health and help them understand how lifestyle choices impact quality of life, they feel more accountable, engaged and live a healthier, more active life. Integrating 'self-health' tools like activity and nutrition trackers and sleep monitors into our daily lives, we can learn from our own behaviors and make positive changes to take charge of our health. We're taking these devices and apps, personalizing the experience and helping people figure out the right health technologies, the right strategy and the right inspiration to get on the right track to health and wellness."

Here’s finding the Center has shared from the survey results:

  • 68% of consumers agree that encouragement from friends and family is important for them to achieve health goals
  • 65% of consumers believe that using a health tracking device, website or app would be beneficial,
  • 32% felt these tools would help them stay motivated to meet health and fitness goals
  • 31% believe the tools would provide accountability
  • 27% felt the tools would help them stay in control of their health
  • 86% believe that feeling informed about their own health is empowering
  • 59% of women and 56% of men aged 35-44 reported that it is hard to stay motivated to live a healthy life
  • 52% and 51%, respectively of women and men aged 35-44 wished they could make better use of technology to keep track of their health
  • 55% of women and 49% of men aged 18-44 believe that easy tracking  is essential to achieving health-related goals
  • 48% of women and 42% of men aged 18-34 reported that encouragement from family and friends is essential
  • 42% of women and only 20% of men aged 45-54 reported that support and tools from their healthcare provider is essential
  • 19% of women and 17% of men aged 35-44 are very confident in their ability to keep track of their own health
  • 25% of women and 21% of men aged 55 and over are very confident in their ability to keep track of their own health
  • 56% of all consumers  have never used any type of health tracking device, app or website
  • Adults aged 18-34, were most likely to use diet (23%) or fitness apps (26%) on their phones
  • 7% of adults aged 55 and over reported ever using a diet app and only 3% have used a fitness app on their phone
  • 35-44 year olds were the age group reporting the highest use of digital activity pedometers (19%)
  • 5% of adults aged 18 and over reported ever using a sleep tracker

While these results are encouraging for engagement initiatives, we need to remember that they survey indicates more than half of consumers have never used any such tool – even a website.

Friday
Oct112013

Health Insurance Marketplace Opening Week Enrollment

By Clive Riddle, October 11, 2013

The opening bell sounded, and public exchanges were open for business on October 1st amidst much noise about startup glitches. Health Insurance Marketplace News, in its current issue, provided the following infographic providing opening week enrollment and volume statistics for selected exchanges:


The newsletter also provided these links to releases from these exchanges with further details about their opening week activity, and the length of time the infographic data represented for each exchange:

Press Release, Covered California

Data through October 5, 2013

Press Release, Connect for Health Colorado

Data for October 1st and 2nd 2013

Press Release, Access Health CT-stats 10/8

Data through October 8, 2013

Press Release, Hawai'i Health Connector 10/2

Data through October 2, 2013

Press Release, New York Health Benefit Exchange 10/8

Data Through October 8, 2013

Press Release, Washington Healthplanfinder 10/7

Data through October 7, 2013

Taking a deeper  look at Covered California for example, we compiled the following additional statistics from their release:

  • Average wait time: 15:08 *
  • Average handling time: 16:48
  • % Applications only partially completed: 62.6%
  • Number of Californians determined eligible for coverage: 28,699
  • Small Business Health Options Program businesses registered as of 10/8/2013: 430
  • *Average wait time was reduced to less than four minutes by Friday, 10/4/2013

It will be quite interesting to see what data becomes available for the full month of October, after month end.

Friday
Oct042013

Consumer Surveys: Finding a Doctor, and Finding Out About Electronic Medical Records

By Clive Riddle, October 4, 2013

Two studies released this week examine aspects of consumer-physician relationships.  The American Osteopathic Association conducted a survey on consumer physician selection. AOA found that “word of mouth” is still the reigning tool for physician selection even in this digital age. Once consumers have selected a doctor, their physician’s may not be doing all that much to communicate with them or educate them about digital health records, Xerox concluded in their fourth annual study on electronic medical records.

The AOA survey found the top five resources adults utilize when selecting a physician for themselves or a loved one  to be:

  • Word of mouth, i.e. family, friends, coworkers (65.9%)
  • Insurance provider directory (51.9%)
  • Physician rating websites, i.e. Vitals, Healthgrades (22.8%)
  • Hospital website (10.8%)
  • Consumer review websites, i.e. Yelp (10.5%)

Here’s an interesting finding  about younger adults that embrace the digital age more than they order counterparts:  “when selecting a physician for themselves, younger adults are much more likely to use “word of mouth” than older adults (77.1% among 18-29 year olds, 64.6% among 30-49 year olds and 59.8% among 50-79 year olds).”

Regardless of the tools used, the AOA survey found the most important factors in the selection decision to be:

  • Acceptance of insurance plan (83.3%)
  • Bedside manner/empathy (60.5%)
  • Proximity of office to home, work or school (57.4%) 
  • Convenient office hours (42.9%)
  • Medical specialty (37.5%)

The AOA survey also addressed de-selection, with the top reasons for leaving a doctor being:

  • moved out of the area (34.7%)
  • didn’t feel physician was a good fit (33.9%) 
  • changed insurance provider (21.2%)
  • physician retired or moved (19%)

Meanwhile, Xerox found that “only 29 percent of those who have a doctor have been informed their medical records will be converted to digital format. While this shows a 13-point improvement from four years ago, the survey results continued to show that the majority of Americans (83 percent) have concerns, such as security, about EHRs and less than one-third (32 percent) want their medical records to be digital (compared to 82 percent and 26 percent in 2010, respectively).”

Here’s the infographic Xerox released with the survey results:

Tuesday
Aug132013

Gorillas in Our Midst

By Kim Bellard, August 13, 2013

There’s a well-known psychology experiment in which participants were asked to keep track of how many times a basketball was being passed in front of them, only to have a (fake) gorilla stroll in front of them.  Surprisingly, about half of the participants were so focused on their task that they were totally oblivious to the gorilla’s presence.  Researchers call this “inattentional blindness,” and we now have some evidence that it happens even to trained health care professionals as well.

Researcher Trafton Drew recently published results of a study in which he and his colleagues placed an image of a gorilla – I swear, I am not making this up! -- in one of a series of slides radiologists were reviewing for cancer nodules.  Amazingly, 83% of the radiologists failed to detect the image, even though it was 48 times larger than the typical nodule they were looking for and eye tracking indicated the radiologists had looked directly at the image.  They weren’t looking for gorillas and, as a result, did not see them. 

“Inattentional blindness” seems to me an apt description of how those of us in the health care field tend to look at health care.  It’s the old “if the only tool you have is a hammer, then everything looks like a nail” syndrome and it may help account for why our health system is so dysfunctional.  Health care has a lot of hammers and we sure do like to use them.

Take health insurance.  Health insurers are notoriously low rated when it comes to consumer trust, and it’s no wonder: consumers don’t understand their product.  Recent research by George Lowenstein of CMU indicate that only 14% of consumers understand four basic terms – deductible, copay, coinsurance, and out-of-pocket maximum – and only 11% could estimate their cost for a hospital stay given all the applicable data. 

I worked a long time in the health insurance industry and like to think I’d do well on Dr. Lowenstein’s tests, but when it comes down to reading all the fine print from different companies I suspect I’d not know how to evaluate them either.  We’ve simply made coverage too complicated, and if anyone thinks the new health insurance marketplaces will solve this problem, then I suggest they think again. 

It’s all well and good that ACA dictates which preventive services are covered at 100%, what “essential benefits” are, and how much different levels of plans must pay out, but none of that is making health insurance understandable to the average consumer.  We’re so busy debating things like high deductible plans versus first dollar plans, single payor versus competing private plans that we ignore the real problem: not only don’t consumers understand the product but, even worse, the product fails to help them be healthy.

Or take hospitals.  Let’s say you were very sick but had no idea what a hospital was.  Your friend tells you they are where sick people go to get better.  As a result, they’re full of sick people; in fact, it’s more likely than not that you’ll have to share a room with some sick stranger.  All those sick people means lots of germs; the official statistic is that one in 20 patients will pick up an infection during their stay (which is almost certainly understated) and that about 100,000 will die from those each year (which hopefully is overstated).  Part of the problem is that hospitals can’t even do a good job of getting their employees to do simple hygiene tasks like washing their hands. 

When you arrive, you’ll have to fill out lots of forms, giving them information that you no doubt have already given to other health care professionals.  The hospital will expect you to wear a flimsy gown that affords no dignity, and stick a wristband on you like you are a piece of merchandise, which is supposed to lessen the chance that they’ll, say, remove one of your limbs or a kidney by mistake.  An array of different hospital personnel will keep interrupting you for a variety of tests, procedures, and other tasks, virtually none of which you’ll have much advance warning of when to expect and which will make sleeping or resting very difficult.  You’ll spend most of your time in the hospital waiting around, but don’t expect much in the way of good distractions: the food is bland at best and terrible at worst, and the entertainment options on the television might have been state-of-the-art for 1970’s cable. 

Don’t bother trying to find out what anything is going to cost; no one can tell you until long after the fact, and then you’ll be shocked at how expensive everything is – at prices that would make even the most hardened Pentagon procurement officer blanch.  Oh, and there’s a one in five chance that you’ll have to be readmitted within 30 days, either because you didn’t really get better during your stay or because something else bad happened to you when you were there. 

If you learned all this for the first time, you might think twice about being admitted.

Hospitals have been around in some form for centuries, but they didn’t really start turning into these impersonal behemoths until federal money started pouring in after World War II, first with Hill-Burton funds and then with the introduction of Medicare and Medicaid.  The trend has accelerated in recent years.  Hospital buildings have often grown very complex due to repeated expansion and renovation, to the point that visitors need color coded maps just to try to get around.  The equipment in the hospitals, down to the beds themselves, has grown equally complex – and expensive.   Hospitals can certainly help patients in ways that would have been unimaginable even twenty or thirty years ago, but I doubt there are many people who could assert that the hospital experience has improved.

It’s not that smart people aren’t thinking about this.  Take, for example, Patient Room 2020, led by design firm NXT Health in conjunction with Clemson’s Healthcare + Architecture Program, and funded by the Department of Defense.  They’re reimagining what patient rooms should look like and work, and have come up with some cool design changes (see, for example, more pictures in Wired’s article).  As Wired said, it’s like the Apple Store meets Tron (although I think I’d have chosen a better sci-fi movie – or at least one that had a medical facility in it). 

The trouble is, they’re not seeing the metaphorical gorilla.  It’s the concept of the hospital that we’re not seeing properly.  It’s sort of like Windows 8 – some impressive engineering that provides expanded capabilities, but at the end of the day still a kludge trying to maintain an approach that is quickly becoming bypassed by newer ones. 

To carry the analogy further, hospitals and health insurers would surely be the mainframes of the health system, with outpatient clinics and surgical centers perhaps the desktops.  Physician offices and perhaps physical therapy offices might be considered the laptops.  In this analogy – where are the equivalents of tablets and smartphones, and where are the “apps” that make using the system easier?  Again, I mean these as an analogy, not literally, to illustrate that we’re just not doing a good job of rethinking the system.

Just look at all the artificial distinctions that have ossified in our health system: allopathic versus osteopathic (or chiropractic); “Western” versus alternative medicine; primary care versus specialty versus subspecialty; dental versus vision versus medical; workers compensation health coverage versus “commercial” health insurance; state by state licensing of health care professionals and insurance.  I could go on and on, but it’s clear that there are a lot of gorillas that we’re missing with our inattentional blindness. 

For example, a recent study found that one in ten Americans now take an antidepressant.  The problem is, nearly two-thirds of them don’t meet the criteria for depression and probably shouldn’t be taking the prescription.  Both the patients and the prescribing physicians are guilty of going for the medication fix because that’s what they’ve been conditioned to look for.

We need to go back to first principles.  What are the structures we need to encourage and incent consumers to focus more on good health?  What are the types of professionals and support systems that can assist them in that ongoing journey?  How do we better identify when health issues turn into medical problems, and apply the “least necessary” resources to them?  How do we keep the patient in the center even as care becomes more complex?  How much should consumers be expected to pay towards their own health, and how do we want to finance those costs?  Answering these questions from first principles would be monumentally hard, but right now there are not many people even trying.

We’re so busy seeing tests/procedures/pills/payment that we’re missing, not the gorilla, but the patient.

Friday
Aug092013

Ten things to know about 2013 Health Savings Account Data

By Clive Riddle, August 9, 2013

Devenir has just released their 2013 HSA Research report. The survey data was collected in July 2013 and primarily consisted of the top 50 HSA providers in the health savings account market, with all data being collected for the June 30th, 2013 period.  The six page executive summary provides some great, concise data, which includes these ten takeaways:

  1. The total number of HSA accounts rose to more than 9.1 million with assets totaling nearly $18.1 billion.
  2. This represents a year over year increase of 29% for both accounts and assets for the period of June 30th, 2012 to June 30th, 2013.
  3. The average account balance halfway through 2013 grew to $1,981 from $1,879 at the end 2012, over a 5% increase.
  4. When you eliminate identified zero balance accounts that average rises to $2,228, an almost 3% year over year increase.
  5. Current average account balances by the year the account was opened range from $5,117 for accounts opened in 2005 to $1,192 for accounts opened in 2012 (and $775 for accounts opened this year to date).
  6. Total contributions to HSA accounts from June 2012 to June 2013 are estimated to have reached $16.7 billion, with accountholders retaining about 23% of those contributions.
  7. Debit cards represent 74% of all withdrawal transactions, with an average of 5.1 annual debit card withdrawals per account for an average $124.48 per transaction.
  8. Currently 14% of HSA assets are comprised of investments .
  9. HSA investment assets reached an estimated $2 billion in June, up 14% from the end of 2012 and 26% year over year. The average investment account holder has a $10,484 average total balance (deposit and investment account).
  10. Devenir projects that year-end 2013 assets will total $20 billion, and 2015 HSA assets will reach $29.3 B, comprised of $4.2B in investments, and $25.2B in deposits.

I only wish our family’s HSA account balance was followed by a capital “B” as well.

Monday
Jul012013

Study finds fewer office visits, prescriptions with CDHPs | Home Channel News

By Cyndy Nayer, July 1, 2013

There are more studies being translated for consumer sites and broader business reach.  Small and large businesses alike know that up to 20 cents of every revenue dollar goes toward health care.  Understanding what works, what appears to work, and what really isn’t hitting the mark is crucial for business success.

This article echoes the findings of studies from Employee Benefit Research Institute (EBRI),  Kaiser Family Foundation, and others.   When folks have to choose between paying out of pocket for appropriate care and paying the rent, the care falls behind.  Study after study have shown that, over the past 5 years, fewer prescriptions have been filled, more prescriptions have been subject to non-compliance (pill splitting, etc.), fewer follow up physician visits and tests/labs have been performed, all of which hinder outcomes.

AHIP recently published an infographic showing the increase in CDHP plans.  These increases appear to dovetail with the lower adherence to protocols that could prevent rescue treatments and avoidable inpatient days.  

The opportunity in value-based design is to follow the high-value protocol and treatments.  These can be place on special designs that encourage the appropriate behaviors.  Further, direct contracts with providers, urgent care centers, and pharmacist coaches can help to manage high-cost chronic care, even within account-based consumer-directed plans.

Let’s spread the word:  consumer-directed can work, but the insurance plan design and contractual arrangements for appropriate, outcomes-based quality providers, are essential.

Monday
Apr012013

Getting Healthy

By Cyndy Nayer, April 1, 2013

In January 2013, US News published a report on why Americans aren’t healthier and gave us the concept of a health lag.  In fact, the gap between America’s health status and that of other industrialized nations is a 30-year trajectory of lower outcomes.

Last week, Modern Healthcare published a review of Kaiser Family Foundation findings in which the highest hospital readmissions were directly correlated to the unhealthiest counties in the US.

On the same day as the MH-KFF release, I was privileged to receive a tweet on patient engagement that highlighted the blog of Gilles Frydman  on PatientDriven.org, which highlights the real engagement and outcomes of patients who seek to understand their conditions and treatment by conversing with others.  The point here is in the definition of engagement, per the blog, “An engaged patient is someone deeply involved in the scientific understanding of their disease, fully aware at all times of the entire spectrum of available therapeutic options. It requires a set of learning, cognitive and psycho-social tools that can only be acquired by conversing often with a real network of peers who are similarly involved in this complex endeavor. 

This, says the author, is exactly opposite of the current definition of patient engagement as used by HIT, care professionals, benefits personnel, and service providers:  “the engagement flows from the various professional stakeholders of the health care system to the patients. It is a direct extension of the concept of consumer engagement.”

It’s exactly the discussion I am most involved in, most of the time, in which the (choose one) doctor/ IT developer/ hospital administrator/ national thought leader talks about patient engagement as the patient behaving according to the “guidance” he/she is provided.  But what if the guidance reaches the patient at the same time she is dealing with her teenager who had a car accident, or her husband who may lose his job? What if the “guidance” is a follow-up visit or test, but the office isn’t open late when she is off work? What if the “guidance” is the purchase of a pharmaceutical that she either can’t afford or that may cause side effects for her?  What if she simply didn’t understand the instructions or, three months later, is feeling better and stops the medication or falls off her nutrition plan?

Unfortunately, the problem here is that the engagement and persistence (which, by definition is part of engagement) did not occur because people have other parts to their lives than the body parts with issues.  They have financial needs, emotional needs, social needs, even transportation needs that interfere with engagement. While the most-influential people in the patient’s life, according to surveys, is the clinical “face” (doctors, pharmacists, nurses, etc.), these people do not follow the patient everywhere, and others in her sphere of influence take precedence.

Emergency department visits drop when medical practices extend hours. There are examples of patient engagement strategies that work and that translate directly to saved dollars.  In surveying more than 9,500 people with steady sources of care, the Center for Studying Health System Change focused its results on 1,470 individuals who had tried to contact their primary care practices after normal business hours in the past year. The study, published online in Health Affairs on Dec. 12, found that nearly 21% had difficulties reaching their physicians after hours, and those who reported more difficulty accessing after hours had higher rates of emergency department use (37.7%  and higher rates of unmet medical needs (13.7%).

As I’m on my relentless pursuit of solutions that deliver better health outcomes, I have to  emphasize this, re-emphasize it, and then state it many times more.  Those who doubted the power of value-based benefit design or outcomes-based clauses did not fully understand the suite of services and, what I call surround-sound messaging, that is necessary for patient engagement in health.

We cannot be paternalistic, nor maternalistic, in making health the end goal.  We have to meet people where they are and stop treating body parts separately (you know, hypertension over there and depression over here and diabetes…).  We have not only organize in patient-centric efforts but, perhaps more importantly, in patient-driven circles.  This is the success of the senior-citizen breakfasts that promote Medicare health plans, of the breast-health discussions that occur in churches and hair salons, and of the Dr. Oz and Dr. Phils of the world who reach through social media (including TV) to their audiences.

Transparency will only matter if the patient is seeking healthcare.  If, instead, she is seeking a carpool for her kids or the money for rent, then transparency of treatments may not be as meaningful, if it’s on the radar at all.  ”Entitlement programs,” as Medicare and Medicaid are increasing called, cause splits in peer groups and often in the same family, pitting seniors against young working adults in the “subsidy” allotment.

These are not directly related to the delivery of treatment from the health system, but they are distractions to the patient decisions.  If the incentives to the prescriber are different than the incentives to the patient, the patient will more often seek the treatment recommended by the doctor, as this is the trusted relationship.  In survey after survey for many years, the clinician advice trumps the insurance benefit advice, yes, but it also relieves the patient of asking price or quality or convenience questions of the physician.  To this point, in my March 15 2013 I sent out the Health Affairs link to the Kaiser study showing that consumers do not want to be responsible for their healthcare costs, and they don’t want their doctors to be responsible, either.  

If we want to close the health valley that we are in, if we want to use the amazing healthcare resources in our country wisely and widely for all of us, then we have to stop this narrow focus of hospital v doctor v benefit plan v pharmaceutical manager v insurance and get back to the basics:  making healthcare understandable, actionable, and most of all, relevant WITH the patient not TO the patient.  Patient engagement IS the holy grail for healthcare and health improvement.  But it can’t be done around the patient, it must be done with the patient fully present and asking questions and envisioning the future of his or her health.  If he or she can’t see it, he or she can’t achieve it.

Monday
Dec102012

Members from Mars and Their Cars

By Laurie Gelb, December 10, 2012

You wake up one morning and decide gasoline costs are just too high. You want to begin filling your car's gas tank with water, which is, of course, much cheaper. You call your mechanic to find out if this is a good idea. He sadly tells you that it will not work. Chastened, you text your broker to invest in some alternative energy stocks.

What is unlikely about this scenario? Well, first and foremost, you have already internalized the fact that water will not run your car. You don't blame car manufacturers or your mechanic or even the oil producers for this. You don't call them biased and part of the IMF conspiracy. You recognize that what they all say (and consistently) is a fact and you proceed accordingly. In part, this is because you have abstracted at least of the chemical differences between gasoline and water, which will also help you recognize important safety hazards  like not throwing water on certain types of fires.

How much do your members and patients know about the vehicle they occupy 24/7-- their own body?  How much do you know about what they know? How many hopeful or destructive assumptions are they making, seeking information about, and/or simply acting on with no relevant evidence at all? Apart from transactional correspondence like enrollment and EOBs, the common thread within all your health communication can perhaps be described as attempts to drive behavior and choices that safeguard your customers' vehicles, if you will.

Unfortunately, health and disease management are often perceived in terms of being a cheerleader for fresh fruit snacks, when instead patients could most benefit from the calm, factual mechanic who leverages his customer's existing knowledge to improve understanding of the mechanisms that run your car. If you in a moment of extreme forgetfulness or frustration did ever call your mechanic and ask, "Why can't I use water in my gas tank?" he probably wouldn't begin his answer with, "For centuries, cars have been designed to utilize gasoline" or "Are you insane?" He'd probably say, "Carl, I realize it's tempting [empathy] but not only won't it work, it'll destroy your car's engine [clarifying stakes]. If you want to save money, have you thought about buying a car with better mileage or a hybrid? [positive alternatives] What are you driving now, that old Buick? [baselining]" And so on.

The bottom line: any mechanic or service provider...until we get to health care, education and a few other problem areas... that receives frequent customer calls and has a successful practice has likely learned how to communicate reasonably effectively while still driving repeat business and trust. And the auto/energy industries as a whole have largely succeeded in disseminating/reinforcing certain key bits of information on a pre-need basis. So the least sophisticated teenager knows not to pour water into a gasoline-powered engine, complete klutzes like me can put air in a tire or change a light bulb and life goes on.

Yet, with the stakes higher in medicine, people don't always dose analgesics correctly. Why? In part, we have failed to remain calm, neutral information providers in the face of human fear, anger, denial, confusion and vulnerability. Health care is no more the place for cheerleading or fear-mongering than the automotive world. Auto dealers do not post signs saying "Warning! Buying the wrong car could result in a fatal accident!"  even though technically it is true that car integrity/stability/maneuverability varies. Instead, they build a case across media channels, back it up with evidence and build its salience via brands. Which do you think is safer, a Volvo or a Lamborghini?

When a migraine or cerebrovascular event strikes, we want the patient to be responsible with OTC preps and seek care if/as needed. These are both pre-need education stories, but they only get internalized to the extent that they are believable. When they are dogmatic, on the order of "Are you insane?", contradictory, jargon-laden and/or confusing (sound familiar?), they cannot be internalized as early and often fail to drive outcomes.

So before you approve any more educational copy this week, you might ask your mechanic if it makes sense.

Friday
Nov022012

Accenture on Independent MDs in the near future: Fewer of Them; With More Performing Subscription Based Services

By Clive Riddle, November 2, 2012

Accenture has just released a new report: Clinical Transformation: New Business Models for a New Era in Healthcare. They found that  “over the past decade, the number of independent U.S. physicians has dropped dramatically, from 57 percent in 2000 to 39 percent in 2012. By the end of 2013, Accenture predicts this number will likely drop further, to 36 percent.” More interesting, it that “by the end of 2013, Accenture also estimates that one-in-three doctors remaining independent will offer patients with subscription-based services, such as telemedicine or online consultations, for sustaining profit – a trend that is expected to increase three-fold over the next three years.”

Accenture’s Kaveh Safavi, M.D., J.D., tells us “More independent physicians are offering subscription-based services as a way for patients to customize their care experience. Meanwhile, patients appreciate the opportunity to supplement their existing coverage with premium, subscription-based services, such as same-day appointments and online prescription refills.”

While this blends with concierge medicine concepts, but the possibilities for what physicians potentially could develop as supplemental premium services could be quite interesting. Of course, for those doctors under health plan managed care contracts preventing balance billing, chartering into premium service waters might require considerable navigation.

Here are some other findings from the Accenture physician survey:

  • 87 percent of physicians surveyed cited the cost and expense of running a business as a chief concern.
  • 65 percent joining health systems said they expect to make the same or less compensation than in private practice.
  • 61 percent cited business operations as a main reason for seeking hospital employment rather than remaining independent.
  • 53 percent cited electronic medical record requirements as a main reason for leaving private practice.