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Morning Headlines 11/10/17

November 9, 2017 Headlines 5 Comments

Judge rules protestor couldn’t compete for Vista replacement

A VA source tells FCW that the upcoming Cerner contract will be signed sometime in November, and will cost the VA a total of $10 billion.

If Gov. Greitens is so committed to fighting opioid abuse, where’s his program?

In Missouri, a local paper questions the integrity of local public officials who will not confirm or deny whether the state has launched its cobbled-together PDMP.

HHS Names Patient Matching Algorithm Challenge Winners

ONC announces Vynca as the winner of its Patient Matching Algorithm Challenge, selecting the winning submission from over 140 competing teams.

AnMed Health Medical Center laying off workers in Anderson

AnMed Health (SC) lays off 94 employees and eliminates another 65 open positions to reduce costs following lower patient volumes, reduced revenue, and costs associated with its Epic implementation.

News 11/10/17

November 9, 2017 News 4 Comments

Top News

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An FCW source says Cerner and the VA have agreed on a rough price of $10 billion for implementing Cerner, with the contract still on track to be signed sometime this month. The price is lower than previously suggested. VA Secretary David Shulkin is reportedly lining up Congressional funding this week.

The initial VA launch, planned for mid-2019, will take place at sites in Oregon, Washington, Idaho, and Alaska.

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A federal judge who previously dismissed CliniComp’s lawsuit in which the company claimed it was unfairly eliminated from consideration to replace VistA claims in newly unsealed documents that CliniComp would not have been a credible bidder because it lacks experience with projects of the VA’s scope. CliniComp says it will appeal while seeking an injunction to stop the project.

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The judged also noted that she sees no evidence to support the VA’s no-bid choice of Cerner. Other bidders can protest once the Cerner-VA contract is signed.


Reader Comments

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From Nordic Employee: “Re: Nordic. Laid off over 10 percent of the home office staff yesterday.” Unverified. Another reader reports that around 15-17 employees were escorted out. I asked Nordic and received this response from CEO Bruce Cerullo:

On Tuesday, Nordic initiated its 2018 growth plan, which includes the further expansion of our Managed Services division, a formal move into non-Epic legacy support, a further investment in our revenue cycle and data and analytics capabilities, and the launch of an ERP practice. As part of this plan, we took the difficult step of restructuring our home office. This included the displacement or redeployment of 17 employees. We recently posted 20 new positions and plan to add up to 150 new employees over the next nine months.

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From SoCal Girl: “Re: UC Irvine Medical Center. Went live on Epic on 11/4. Possibly the first site to run out of another’s data center (UCSD) and using a lot of their build. UCI started with TDS in 1983 and stayed through the incarnations (Alltel, Eclipsys, Allscripts) with their own data center until now. Haven’t heard how it’s going.”

From Skippy Trip: “Re: photos. Why do some items in the ‘People’ section not include photos?” I’m always surprised in this day and age how many photo faux pas I see every day when scouting the Internet for headshots since you would think people would want to make it easy to get exposure. Some executives don’t have any Internet-discoverable photos, making me wonder if they have appearance issues or fears of being judged (which they will be anyway, as in, “what’s with the lack of a photo?”) What I sometimes find when I look for headshots:

  • People who don’t have a LinkedIn profile, which is inexcusable.
  • LinkedIn profiles that don’t include a photo, which is bizarre for someone who works in a people-facing role (you must be a crappy salesperson if your LinkedIn doesn’t include a photo so people can find acknowledge that it’s you).
  • Poorly resized LinkedIn photos that are low-resolution or too small, making the pixelated mess unusable even at a small size. LinkedIn shrinks to thumbnails, so there’s no need to downsize the original to their displayed image size.
  • Trying to repurpose a vacation photo or family picture in which the grainy subject is surrounded by the shoulders of cropped-out others; is so far from the camera as to be unrecognizable; is wearing a tuxedo, Santa suit, or a bike helmet; or is proudly displaying something alcoholic.

HIStalk Announcements and Requests

I’ve noticed that Twitterers who were dull, clueless, or eye-rollingly self-promoting in their allotted 140 characters are now four times more so with the limit doubled to 280.

This week on HIStalk Practice: Georgia Partnership for Telehealth achieves school-based milestone. Family Christian Health Center selects Visualutions billing software. State-based physician health programs help addicted doctors recover – successfully. Consumers still prefer phone-based appointment scheduling. The Federation of State Medical Boards tests blockchain for the medical licensure process. Alpine Investors takes over behavioral health EHR vendor. Physician pirate Jay Saux, MD brings healing and whimsy to cancer care. Navicure’s Kermit Randa offers practical steps for practices looking to offer digital payment options.

Listening: new from Chicago throwback indie band Twin Peaks. Then it was off to very Canadian jangle rockers Alvvays with the amazing singer-songwriter Molly Rankin (who kind of looks like Veronica Mars), the best thing I’ve heard lately, with extra points for the bass player rocking a Hofner violin end everybody seeming to be delightfully nerdy. I can’t take my eyes or ears off them. “Archie, Marry Me” is one of the best pop songs ever and their live version is flawless (warning: I couldn’t get it out of my head and have listened to it 25 times today).


Webinars

November 15 (Wednesday) 1:00 ET. “How Hospitals and Practices Can Respond to Consumerism by Better Engaging Patients Through Price Transparency and Payment Options.” Sponsored by: Change Healthcare. Presenters: Kathy Moore, president, Moore Martini Medical; Linda Glidewell, VP of business development, consumer payment solutions, Change Healthcare. Healthcare consumerism and high-deductible health plans require providers to offer upfront estimates and payment options throughout all points of service. In his webinar, we’ll discuss consumerism as a critical area of opportunity in revenue cycle management and review numerous areas across the revenue cycle where your staff interacts with patients and leaves lasting impressions. From your first interaction with patients on the phone to discuss financial responsibility; to collecting payments at all points of service; to offering payment plans and various payment options — these are all areas that can be game-changing. With the right approach to consumerism, you can improve patient collections and optimize revenue from the start while also improving the overall patient experience.

November 30 (Thursday) 1:00 ET. “Making Clinical Communications Work in Your Complex Environment.” Sponsored by: PatientSafe Solutions. Presenters: Steve Shirley, VP/CIO, Parkview Medical Center; Richard Cruthirds, CIO, Peterson Health. Selecting, implementing, and managing a mobile clinical communications platform is a complex and sometimes painful undertaking. With multiple technologies, stakeholders, and disciplines involved, a comprehensive approach is required to ensure success. Hear two hospital CIOs share their first-hand experience, lessons learned, and demonstrated results from deploying an enterprise-wide mobile clinical communications solution.

December 5 (Tuesday) 2:00 ET. “Cornerstones of Order Set Optimization: Trusted Evidence.” Sponsored by: Wolters Kluwer. Updating order sets with new medical evidence is crucial to improving outcomes, but coordinating maintenance for hundreds of order sets with dozens of stakeholders is a huge logistical challenge. For most hospitals, managing order set content is labor intensive and the internal processes supporting it are far too inefficient. Evidence-based order sets are only as good as their content, which is why regular review and updates are essential. This webinar explores the relationship between clinical content and patient care with an eye toward building trust among the clinical staff. Plus, we will demonstrate a new evidence alignment tool that can easily incorporate the most current medical content into your order sets, regardless of format, including Cerner Power Plans and Epic SmartSets.

Previous webinars are on our YouTube channel. Contact Lorre for information.

Here’s the recording of this week’s webinar titled “How Clinically Integrated Networks Can Overcome the Technical Challenges to Data-Sharing.”


Acquisitions, Funding, Business, and Stock

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Investors that include heavyweights like Goldman Sachs and Google sue waiting room advertising company Outcome Health, claiming that the company committed fraud in obtaining $500 million in funding by providing false information. The lawsuit was driven by a Wall Street Journal investigation from last month that concluded that the company was inflating the number of video screens it had installed in practices, allowing it to overcharge drug companies, its primary advertisers. Outcome Health calls the lawsuit “irresponsible” and a “money grab,” which is an interesting approach to investor relations.


Sales

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Goshen Health (IN) chooses CloudWave’s OpSus Live infrastructure-as-a-service to host its Meditech 6.16 system.

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The board of Ector County Hospital (TX) approves implementation of IllumiCare’s EHR-agnostic Smart Ribbon to encourage the appropriate use of tests and drugs. 

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WellStar Health System (GA) chooses Agfa HealthCare Enterprise Imaging.


Announcements and Implementations

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A small study finds that hospitals that use Glytec’s Hospital-to-Home discharge insulin program for poorly-controlled diabetics had zero diabetes-related readmissions or urgent care/ED visits within the first 30 days after discharge.

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Marshall Medical Center (CA) goes live on Epic via a Community Connect agreement with UC Davis Health. The local paper’s article notes that all area health systems use Epic other than Cerner customer Dignity Health.

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Humana sponsors an innovation challenge to make the digital health records of Medicare recipients more useful to those patients, their caregivers, and their doctors. California-based individuals and early-stage startups will assemble Humana-provided complex data sets (claims data, hospital records, and health program participation information) into a solution that targets either providers or patients in improving quality or reducing cost. The winner gets $10,000.

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A West survey finds that more than half of Americans delay paying their medical bills, with the top reason being high insurance deductibles. Other reasons include forgetting to pay, confusion about what charges insurance will cover, and receiving bills for services they don’t think they should have to pay for. Three-quarters of respondents say high deductibles affect how often they see their provider or seek care. Less than 25 percent of providers discuss affordability in advance, send payment reminders, or provide messages explaining what portion of their bill is covered by insurance.

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An Anthem study finds that total joint replacement patients enrolled in HealthLoop’s guidance and monitoring platform cost $656 less and had about half the rate of 90-day surgical complications and readmissions.


Government and Politics

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The federal government awards Apprio a contract to transition the DoD’s MHS Genesis system to the Defense Health Agency’s long-term sustainment office.

An editorial in the St. Louis paper rips into the state’s government for refusing to confirm that its cobbled-together prescription drug monitoring program is actually running. Missouri – the only state without a PDMP – created an odd version of its own that relies on claims data to allow government officials to identify “pill mills” but without allowing prescribers to see individual patient data. The governor said in July that the program would be operational in weeks, but the state hasn’t even signed a contract to create it.

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HHS announces advance care planning technology vendor Vynca as winner of its Patient Matching Algorithm Challenge, with data integration vendor Pic-Sure earning second place along with wins in the “Best Recall” and “Best Precision” categories.

President Trump’s “Putting Our Veterans First” announcement includes technology references:

  • Criminal investigations of the VA’s previous manipulation of wait time data.
  • Expansion of the VA’s telemedicine program to span geographic areas.
  • Greater adoption of VA Video Connect mobile app.
  • Rollout of the VA’s Online Scheduling Tool.
  • The move to Cerner for both the VA and DoD.
  • Launch of an online wait time tool.

Other

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A former employee of Kansas City, MO-based Healthy Plus LLC – run by two locally prominent sports figures – says employees went weeks without pay as the company issued bad checks and closed its accounts. One of those executives previously ran VC Medical, which is the subject of a lawsuit over an unpaid loan. The company is a pilot member of Athenahealth’s More Disruption Please program, offering solutions for chronic care management and Medicare Annual Wellness Visit reminders. A Healthy Plus press release says the business was launched in April 2017.

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An Axios article questions UPMC’s plan to spend $2 billion to build three specialty hospitals without adding new bed count, noting from experts that:

  • Non-profit hospitals spend big money to erect impressive buildings that entrench their market position, often using tax-exempt debt for buildings on which no property tax is paid.
  • The kind of new treatments UPMC aims to discover are revenue-maximizing.
  • UPMC is investing in inpatient bricks and mortar instead of what the market is demanding: community-based care, primary care, and home care.
  • Pittsburgh residents and federal taxpayers will foot the bill in the form of higher premiums for private insurance, Medicare, and Medicaid.
  • Moving patients into a specialty-specific hospital ignores their other conditions and impedes care coordination.

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This is a great graphic from Gartner that shows the level of analytic maturity.

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AnMed Health (SC) lays off 94 employees and eliminates 65 open positions, citing losses due to lower payments, reduced volumes, and the cost of its $85 million Epic implementation.

Here’s rare video snippet of Epic’s Judy Faulkner speaking, this time at a Geisinger symposium. The moderator didn’t ask great questions or press her for deeper answers, eliciting basically that she likes AI and telehealth. Hopefully the conversation was better than this excerpt.

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Pope Francis expresses frustration with people who screw around with their phones when he is celebrating Mass, suggesting they life their hearts instead of their devices. He wrote in 2015, “When media and the digital world become omnipresent, their influence can stop people from learning how to live wisely, to think deeply, and to love generously. In this context, the great sages of the past run the risk of going unheard amid the noise and distractions of an information overload.”


Sponsor Updates

  • MModal supports the migration of FHN (IL) to Meditech’s Web EHR with its Fluency Direct speech recognition solution.
  • MedData’s Pulse intranet wins the EHealthcare Internet Award for Best Intranet.
  • Meditech will present at the Value-Based Care Summit November 16-17 in Boston.
  • Medicomp Systems releases a new e-book, “Clinical Conundrum: Too much data, not enough meaning.”
  • The Metro Atlanta Chamber of Commerce honors Navicure with its Phoenix Award for Emerging Company of the Year.
  • Nordic’s 800 employees and 200 customers are poised for significant growth in 2018.
  • Consulting Magazine names Impact Advisors to its list of fastest-growing firms.
  • Clinical Computer Systems, developer of the Obix Perinatal Data System, will exhibit at the Northwest AHEC conference November 14-15 in Hickory, NC.
  • Experian Health will exhibit at HFMA Southern IL November 16-17 in O’Fallon.
  • Vocera earns Authority to Operate from the DoD.
  • The Tech Tribune includes PatientSafe Solutions in its top 10 list of best tech startups in San Diego.

Blog Posts


Contacts

Mr. H, Lorre, Jenn, Dr. Jayne, Lt. Dan.
Get HIStalk updates. Send news or rumors.
Contact us.

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EPtalk by Dr. Jayne 11/9/17

November 9, 2017 Dr. Jayne Comments Off on EPtalk by Dr. Jayne 11/9/17

I’ve been trying to digest the recently-released CMS final rules. Overall, much of the flexibility we expected for the Quality Payment Program is now final, including the ability for providers to use 2014 Edition or 2015 Edition Certified Electronic Health Record Technology (CEHRT) for the Advancing Care Information category. Although many organizations are breathing a sigh of relief over this, there is a bonus for using only 2015 CEHRT and those organizations that kept the pedal to the floor may get at least a little reward for their efforts.

Additional items in the Final Rule include relief for providers impacted by Hurricanes Harvey, Irma, and Maria by automatically weighting the Quality, Advancing Care Information, and Improvement Activities performance categories at 0 percent of the MIPS final score. Small practices can get five bonus points to the MIPS final score, as can those practices that treat complex patients.

Although CMS continues to crow about their success related to the “goals of regulatory relief, program simplification, and state and local flexibility in the creation of innovative approaches to healthcare delivery” I know there are a lot of us that think any rule that requires 1,600+ pages to explain cannot possibly be simple. I’d personally like to see the “QPP for Dummies” edition to make sure I fully understand everything that’s in there. Even the Executive Summary is 21 pages long.

Last Monday CMS administrator Seema Verma also announced the “Meaningful Measures” initiative which CMS claims will help streamline quality measures that providers are trying to meet. Although this sounds like a welcome change, this isn’t the first time we’re heard about proposed program simplification. Although some payers follow the lead of CMS on quality measures, others put their own little twists on the measures clinicians need to report, requiring them to create custom reporting that mimics CMS requirements in a “missed it by that much” manner. If payers can’t agree on the most meaningful measures for patient outcomes, that doesn’t give those of us in the trenches confidence.

For many of us, the constant changing of measures and requirements just seems to highlight the idea that we’re all part of some uncontrolled experiment with no defined endpoint. The sheer number of hours spent by organizations on regulatory compliance is staggering. At least a couple of times a year, I have conversations with medical students who are questioning their career choices and who are trying to figure out if they want to go to business school, law school, or residency. I know it’s anecdotal, but I feel like we’re having a lot more of these conversations than we did in the era before Meaningful Use.

I haven’t had admitting privileges at my hospital for a long time, but I’ve been able to keep an adjunct status that lets me participate in continuing education sessions, attend Grand Rounds, and hang out in the physician lounge, which gives me a place to meet with students and residents to talk about career planning or mentoring. It’s been worth the small fee I pay every year to have a central place to have those conversations, since my “office” is in my house and sometimes meeting at a restaurant or coffee shop can be noisy.

We have a new hospital administrator who spoke at a recent medical staff gathering. I was struck by a several things. First by his youthful exuberance but relative lack of experience and second by his amazingly full command of what I can only describe as an executive word salad. Seriously, if he told me how much we were going to synergize around results-oriented outcomes one more time, I was going to burst out laughing. I am going to have to break out the Buzzword Bingo cards if I ever go to an event where he will be speaking again. I miss the camaraderie of the hospital, and the hilarity of the whole thing made me glad I took the time to attend.

While I was chatting with some of my colleagues, I heard some complaining about changes to how the AMA is calculating the need for licensing for CPT codes. Rather than counting actual end users, AMA is moving to a “User Proxy Method” that approximates the number of CPT code users in an ambulatory billing or clinical system based on the number of full-time equivalent providers in the practice. These counts are multiplied by industry data. In the case of an ambulatory clinical system with or without a billing system, the multiplier is four. The discussion at the hospital included overall unhappiness with AMA’s monopoly on coding, with one provider questioning whether the RICO act should be used to counter its grip on providers. In researching the issue, I noticed AMA still uses the “EMR” verbiage, which highlights how behind the times they are.

When I returned home from the hospital, I was glad to find an email from the last of my friends in Puerto Rico that I have been waiting to hear from. He and his family are safe, but were without power for more than a month and are still having difficulty obtaining supplies. Although stores are restocking, his community has returned to a cash economy. It sounds like there continue to be many health system challenges that won’t be resolved anytime soon.

AMIA2017 has been in full swing this week, with National Library of Medicine Director Patti Brennan presenting at Monday’s Sunrise Session and National Coordinator Don Rucker presenting on Tuesday. I didn’t make it this year because of a conflict, but hopefully next year’s calendar will be more forgiving. Looking at a schedule of available conferences for the next year, I’m going to have to choose carefully, especially since I need to fit in a board review course to prepare for recertification. Since I haven’t practiced traditional primary care in a number of years, I’m dreading the exam but given our need to comply with Board Certification in order to be credentialed by payers, I don’t have much of a choice. Not to mention, we have to maintain a primary board certification to keep our clinical informatics certifications, so letting mine lapse would be a double-whammy.

Have any good board exam prep tips? Email me.

Email Dr. Jayne.

Comments Off on EPtalk by Dr. Jayne 11/9/17

Morning Headlines 11/9/17

November 8, 2017 Headlines Comments Off on Morning Headlines 11/9/17

Repealing the Individual Health Insurance Mandate: An Updated Estimate

The CBO estimates that if the GOP repeals the ACA individual mandate as part of its planned tax overhaul, it would lower the federal deficit by $338 billion over the next ten years, making room for tax cuts in other areas. Eliminating the mandate is expected to increase the uninsured rate by four million people in 2019 and 13 million in 2027.

America’s Hospitals: Improving Quality and Safety

In its annual report on quality, The Joint Commission notes that in 470 hospitals submitted eCQM data in 2017, up from 34 in 2016. The report predicts that more than 2,000 hospitals will submit eCQM data in 2018.

Major investors sue Outcome Health, alleging firm committed fraud to secure $487.5M investment

Chicago-based healthcare unicorn Outcome Health is sued by a group of early investors, including the investment arms of Goldman Sachs and Google, over allegations of fraud. The company and its founders are being accused of falsifying its financial performance data during its most recent fundraising round.

Cleveland Clinic plots $20 million children’s center

The Cleveland Clinic will spend $20 million remodeling its four-story Taussig Cancer Center into a 120,000-square-foot children’s center. The new center is expected to be completed by fall 2018.

Comments Off on Morning Headlines 11/9/17

Morning Headlines 11/8/17

November 7, 2017 Headlines Comments Off on Morning Headlines 11/8/17

Saint Anthony Hospital sues ratings agency Leapfrog, said knowingly used incorrect info to lower grade

Saint Anthony Hospital (IL) sues the Leapfrog Group, claiming defamation after the Leapfrog Group lowered the hospital’s patient safety score in recently published report.

Surescripts Transforms Prescription Decision Process Between Physicians and Patients

Surescripts announces that it will work with Allscripts, Aprima, Cerner, Epic, GE Healthcare, and Practice Fusion to present patient-specific prescription drug authorization and pricing information to providers in real-time at the point of care.

CVS adds next-day prescription delivery as threat of Amazon competition looms

In response to a perceived threat from Amazon, CVS announces next-day delivery for prescription drugs.

Regulators hear arguments for new medical records system

Officials from the University of Vermont Health Network (VT) is requesting $150 million in state funding to implement Epic across its four hospitals and all of its outpatient practices.

 

Comments Off on Morning Headlines 11/8/17

News 11/8/17

November 7, 2017 News 1 Comment

Top News

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Saint Anthony Hospital (IL) sues The Leapfrog Group for defamation after the quality rating organization lowers the hospital’s patient safety score from its previous A grade to a C.

The hospital says Leapfrog gave it a low score for underusing electronic prescribing even though the information it submitted showed that doctors order medications electronically 95 percent of the time.

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Saint Anthony is demanding a temporary restraining order to keep Leapfrog from publishing its score. Leapfrog’s fall 2017 report that was released October 31 does not include the hospital.


Reader Comments

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From CIO Reader: “Re: Citrix maintenance price hikes. I don’t have the details, but our maintenance fees will increase nearly 30 percent.” My rule of thumb for companies selling to hospitals has always been that you shouldn’t raise your prices beyond the average Medicare reimbursement increase, although bigger, richer non-profit health systems spending millions and billions to erect monuments to themselves has converted me to being OK with vendors sticking it to them just like any other business. Hospitals will always find a way to increase volume or reimbursement to cover their ever-swelling expenses.

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From Grammar Guru: “Re: the HIMSS-owned rag. Needs some help with plural vs. possessive.” Apparently the Healthcare IT New’s editor’s have problem’s with apostrophe’s gone astray.

From Bruce Brandes: “Re: Graysky’s comments about Lucro’s ownership interest and my Readers Write articles. Our company is owned by Martin Ventures, HCA, and Heritage Group. The first priority of the health systems in our network is to reduce costs and inefficiencies to find, evaluate, and choose solutions. While our investors are excited for their portfolio companies to leverage Lucro as a targeted, effective alternative to traditional sales and marketing tactics, their companies have no greater advantage over any other company in Lucro beyond the merits of their own value proposition. There is no cost for any vendor or health system to engage in Lucro and premium services are optional.  Our goal is to level the playing field by democratizing access to relevant buying decisions and there is no Lucro-sponsored opinion or recommendation of one company over any other. We provide a platform for the market to make those assessments on their own, with private support from their invited network of trusted peers. Of the 1,200+ vendors currently engaged with Lucro, about 20 are backed by our investors.”

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From Broadcom Insider: “Re: Broadcom’s $130 billion offer to acquire Qualcomm. Last week Broadcom’s CEO promised Trump he would move its headquarters from Singapore to the US. This is an easy way to accomplish that – San Diego, here we come! I wonder what will happen with Qualcomm’s Capsule Tech? Will Broadcom want to get into the healthcare market or remain narrowly focused on semiconductors and chip sets? Attached is a teardown of the new Apple Watch, which contains mostly Broadcom and Qualcomm chips. Clearly the deal makes a great deal of sense.” Experts say the biggest challenge with the blockbuster deal will come from China, which, like the US, looks closely at proposed deals that could shift technology sales offshore. It’s always interesting when a smaller company (Broadcom, $18 billion in annual sales) bids on a larger one (Qualcomm with $22 billion). Qualcomm Life includes Capsule medical device integration (acquired in September 2015 for an undisclosed price) and 2net remote monitoring. Qualcomm Life previously acquired HealthyCircles for data sharing, but that seems to have been either killed off or rolled into 2net. If the acquisition goes through, it would seem both easy and advisable for Broadcom to sell the Qualcomm Life business to a company more focused on healthcare, perhaps Philips or even Nokia.


HIStalk Announcements and Requests

Lorre is running her year-end special for new HIStalk sponsors – avoid the pre-HIMSS rush, sign up now, and get the rest of this year free. She’ll also offer a deal to wayward former sponsors who want to return to the fold.

Listening: new from Kesha, who has matured individually as a singer-songwriter at 30 (even removing the “$” in her name) and, more importantly, musically, with less Auto-Tuned dance pop and more pure rock in her first release since 2013. Her latest album features tracks with Eagles of Death Metal, the horn section of the Dap-Kings, and Dolly Parton, which is a pretty eclectic group.


Webinars

November 8 (Wednesday) 1:00 ET. “How Clinically Integrated Networks Can Overcome the Technical Challenges to Data-Sharing.” Sponsored by: Liaison Technologies. Presenters: Dominick Mack, MD, executive medical director, Georgia Health Information Technology Extension Center and Georgia Health Connect, director, National Center for Primary Care, and associate professor, Morehouse School of Medicine;  Gary Palgon, VP of  healthcare and life sciences solutions, Liaison Technologies. This webinar will describe how Georgia Heath Connect connects clinically integrated networks to hospitals and small and rural practices, helping providers in medically underserved communities meet MACRA requirements by providing technology, technology support, and education that accelerates regulatory compliance and improves outcomes.

November 15 (Wednesday) 1:00 ET. “How Hospitals and Practices Can Respond to Consumerism by Better Engaging Patients Through Price Transparency and Payment Options.” Sponsored by: Change Healthcare. Presenters: Kathy Moore, president, Moore Martini Medical; Linda Glidewell, VP of business development, consumer payment solutions, Change Healthcare. Healthcare consumerism and high-deductible health plans require providers to offer upfront estimates and payment options throughout all points of service. In his webinar, we’ll discuss consumerism as a critical area of opportunity in revenue cycle management and review numerous areas across the revenue cycle where your staff interacts with patients and leaves lasting impressions. From your first interaction with patients on the phone to discuss financial responsibility; to collecting payments at all points of service; to offering payment plans and various payment options — these are all areas that can be game-changing. With the right approach to consumerism, you can improve patient collections and optimize revenue from the start while also improving the overall patient experience.

Previous webinars are on our YouTube channel. Contact Lorre for information.


Acquisitions, Funding, Business, and Stock

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Clinical Architecture will expand its 52-employee Carmel, IN headquarters, more than doubling its square footage and adding 40 jobs by 2021.

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CoverMyMeds will hire “hundreds” of support team employees immediately for its Columbus and Cleveland offices. The 500-employee company, which has annual revenue of more than $100 million, was acquired by McKesson in January for $1.1 billion.

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Salesforce and Google will integrate Google’s analytics and office software with Saleforce’s platform and Salesforce will use Google’s cloud infrastructure for some of its new services. 

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Cardinal Health fires CEO George Barrett after a poor quarterly report due to lower generic drug prices and the Amazon threat, promoting the CFO to the top chair.

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CVS Health, fearing competition from Amazon, announces plans to offer free, next-day prescription delivery nationwide next year, with same-day service available in some urban areas.

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Roman, which offers online diagnosis and treatment of erectile dysfunction, raises $3.1 million in a seed funding round. Customers choose their preferred drug if desired, pay $15 for a five-minute online visit, then receive home delivery of their med. The company serves men in California, Florida, New York, and Pennsylvania. Drug prices range from $2 for a 20 mg generic Viagra tablet to $63 per tablet for brand-name Viagra.

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Kaiser Health News profiles Comprehensive Pain Specialists, a 54-clinic pain treatment practice headquartered in Tennessee that raked in $11 million from Medicare alone in 2014 for urine drug screening. The article notes that Medicare pays tens of millions of dollars for tests that detect drugs that have minimal abuse potential and for screening street drugs that are rarely found in the urine of pain patients. Analysis found that 31 pain practitioners earned 80 percent or more of their Medicare payments just from urine testing, which the government sees as a red flag that perhaps testing is overused, especially as labs increased revenue by moving testing to more expensive machines that earned higher CMS payments. It notes a company that was exposed in a 2011 whistleblower lawsuit as earning $166 million from Medicare for urine screening in a single year, with reps earning up to $700,000 to convince doctors that “drug testing is not about medicine, but about making money.”


Sales

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In Australia, publicly funded health service Gippsland Health Alliance chooses Allscripts Sunrise.

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In the UK, Princess Alexandra Hospital selects Agfa HealthCare’s enterprise imaging platform.

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Amita Health (IL) will implement PerfectServe’s enterprise clinical communication and collaboration system.

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Non-profit health plan AlohaCare (HI) chooses Health Catalyst for population health, accountable care, financial decision support, and operational performance improvement.


People

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Erik Smith (UnitedHealth Group) joins Stanson Health as RVP of sales.

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Former Rent-A-Center CIO Angela Yochem joins Novant Health (NC) in the newly created position of chief digital officer, where she will report to the president and CEO.

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Huntzinger Management Group hires David Tucker (ESD) as VP of business development.

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Richard Walsh (Continuum Health) joins HealthHusk as managing partner.

BetterDoctor hires John Steinhouse (Box) as VP.


Announcements and Implementations

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Surescripts will offer real-time, patient-specific prescription pricing and benefit information to users of EHRs from Allscripts, Aprima, Cerner, Epic, GE Healthcare, and Practice Fusion for patients whose prescription benefits are managed by CVS Health or Express Scripts. Prescribers will also receive therapeutic alternative suggestions within their EHR workflow and can complete any needed prior authorization during the patient’s visit. Surescripts got its start in 2001 as RxHub, formed by three pharmacy benefits managers (Caremark, Express Scripts, and Medco Health) that ended up as CVS and Express Scripts.

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The Tiger Institute Health Alliance HIE (MO) joins the Sequoia Project EHealth Exchange, allowing University of Missouri Health Care to exchange information with St. Louis-based SSM Health. 

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A Kyruus survey finds interesting facts about consumer provider preference:

  • While most consumers search for providers on the Internet, they would rather schedule appointments by telephone.
  • 90 percent of people look up providers to whom they have been referred before scheduling their appointment, most of them preferring to use generic Internet searches rather than checking health system websites.
  • Among the most important factors in choosing a provider are insurance accepted, clinical expertise, and appointment availability.
  • Over 60 percent of consumers will choose a different provider if they can’t get a timely appointment with their first choice.
  • 40 percent of people say they trust online reviews.
  • Millennials are most willing to choose a different provider because of availability and to schedule their appointments online.

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AMIA announces its unspecified collaboration with the OpenNotes initiative.


Government and Politics

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University of Vermont Health Network (VT) files a state certificate of need to spend $150 million to implement Epic. The health system says it would save money because Epic would replace systems that would cost $200 million to maintain over several years. CIO Adam Buckley, MD, MBA says Epic is a good choice because it is widely installed and it completes its projects on-time and on-budget 87 percent of the time, while the health system’s choice of project management firm, Cumberland Consulting Group, has a 100 percent success rate.

The VA retools its provider inbox to strip out low-value clinical alerts and trains its doctors to process their messages optimally, with the changes saving clinicians 90 minutes per week.

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CMS Administrator Seema Verma says the federal government will “reset the federal-state relationship” in proposing Medicaid reforms that allow states to set some rules of their own and to waive the requirement that states report the health outcomes of such changes. The statement’s wording suggests that CMS is happy to consider state-mandated employment, drug testing, and lifetime coverage limits for recipients. Verma said in her prepared remarks that Medicaid consumes 29 percent of state budgets at a cost of $558 billion; that one-third of doctors won’t see Medicaid patients; and that ACA expensively moved many less-vulnerable people – some of them able-bodied and working – into the program, leading to problems with access and quality, adding that “we shouldn’t just celebrate an increase in rolls or more Medicaid cards handed out.” She said the days of a “tragic example of the soft bigotry of low expectations” are over. Verma used the term “able-bodied” four times in her remarks. 

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The owner of a Florida compounding pharmacy pleads guilty to earning $100 million by fraudulently billing insurers $633 million, mostly for pain and scar creams prescribed by doctors who were given kickbacks. The government recovered $7.6 million by seizing the owner’s antique car collection and a 50-foot racing boat. The FBI arrested eight Florida residents in mid-2016 for their role in the scheme.

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NIH buys 10,000 Fitbits — hopefully at a significant quantity discount — for participants in its All of Us project that will gather anonymous health information from up to 1 million Americans.


Other

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The South Australian government spends $38 million to upgrade its Allscripts-powered EPAS system, raising the total cost of the project to $361 million vs. the originally budgeted $312 million.

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IBM proposes that the government of British Columbia use a blockchain system to protect consumers by monitoring the legal distribution of cannabis from seed to sale.

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The American Psychological Association’s “Stress in America” survey finds that more than half of respondents – even those who remember World War II, the Vietnam War, and the September 11 terrorist attacks – say the US is at “the lowest point in our nation’s history.” The #1 stressor by a considerable margin is healthcare. APA says a key problem is that people check news sites and social media nearly constantly even though they don’t trust the media and aren’t encouraged by what they see. Perhaps this directly contradicts the “broadband as a social determinant of health” technology fanboys.

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A JAMA report creates a healthcare “Affordability Index” that divides the mean cost of an employer-provided family insurance plan by the median household income, which finds that families spend nearly one-third of their income just to pay health insurance premiums. The situation is likely far worse since the income used in the index appears to be pre-tax, high deductibles mean that total healthcare expense is a lot higher, the index looks only at people who buy employer-sponsored insurance, and many people don’t even bother buying insurance since they can’t afford the premiums or deductibles. I remember doing a similar calculation in predicting that the housing bubble had to burst – more homes were being sold (mostly on speculation, as it turned out) than there were people to live in them and the average cost was many multiples of the average household income in the areas that were experiencing the biggest construction boom, strongly suggesting that the music would eventually stop and somebody would be left holding the bill (taxpayers, as it nearly always turns out).

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Several hospitals in drug-ravaged West Virginia file a class action lawsuit against the Joint Commission, claiming that its “fifth vital sign” pain management standards downplayed addiction risk and were biased because opioid-selling drug companies helped create them and also supported the Joint Commission financially.

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A digital health report reviews the “evidence and impact” of digital health tools, but looks at questionable metrics such as the number of available apps, app store ratings, and the number of downloads. More relevantly, it notes that 571 studies have proved some degree of clinical evidence, 860 clinical trials that use digital health tools are underway, and emphasis is shifting to chronic condition management. It attempts some faith-leaping extrapolation in throwing out a potential $46 billion US cost savings figure if apps were used more widely. The study’s publisher is IQVia, the newly renamed (as of Monday) QuintilesIMS. 

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Ambulatory EHR vendor DrChrono enables its app to use the iPhone X’s Face ID facial recognition technology for user log-on.


Sponsor Updates

  • AdvancedMD will exhibit at the American Academy of Ophthalmology conference November 11-14 in New Orleans.
  • Arcadia Healthcare Solutions will exhibit at the Millennium Alliance Summit November 13-14 in Dallas.
  • Besler Consulting releases a new podcast, “Enterprise risk management during healthcare change.”
  • Hyland Healthcare — fresh off its acquisition of Lexmark’s Perceptive VNA, content management, and imaging business — will demonstrate its PACS, VNA, diagnostic imaging viewer, and unstructured data viewer at RSNA.
  • CoverMyMeds will exhibit at the NG Healthcare Summit November 8-10 in Braselton, GA.
  • Forward Health Group founder and CEO Michael Barbouche will present “What Technology means to the BioHealth and Healthcare Industry in Wisconsin and Beyond”at the HHS SMIR/STTR conference in Milwaukee, WI on November 9.
  • Visage Imaging will demonstrate its enterprise imaging platform at RSNA.
  • Dimensional Insight will exhibit at the HIMSS NE Northern Maine Day Conference November 9 in Brewer.
  • Elsevier Clinical Solutions nursing executive Tiffany Mccauley, RN discusses the role of technology in the patient experience during the US News Healthcare of Tomorrow conference in Washington, DC.
  • EClinicalWorks will exhibit at the Kentucky Primary Care Association Conference November 8-10 in Lexington.
  • The HCI Group becomes a CHIME Global Partner.
  • HealthCast will exhibit at the Idaho Chapter HIMSS Conference November 13 in Boise.
  • Madison Magazine recognizes Healthfinch as a trailblazer in the field of healthcare innovation.
  • InterSystems will exhibit at the Millenium Healthcare Providers Transformation conference November 13-14 in Dallas.
  • ConnectiveRx publishes a new white paper, “Optimizing brand access strategies with wrap-around prescriber messaging.”

Blog Posts


Contacts

Mr. H, Lorre, Jenn, Dr. Jayne, Lt. Dan.
Get HIStalk updates. Send news or rumors.
Contact us.

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Morning Headlines 11/7/17

November 6, 2017 Headlines Comments Off on Morning Headlines 11/7/17

NHS now lets you talk to a doctor through a video call

The NHS launches GP at Hand, a telehealth service offering UK citizens remote access to an NHS physician within two hours, rather than waiting three weeks for an in person appointment. GP at Hand is available 24 hours a day, and providers are authorized to write prescriptions and schedule follow up appointments within the NHS as needed.

Top 10 Health Technology Hazards for 2018

Ransomware and other cybersecurity threats tops ECRI Institute’s list of top 10 health technology hazards for 2018.

Adding device codes to insurance claims could save lives and billions in taxpayer dollars

In an op-ed published in The Hill, leaders from the Pew Charitable Trust offer support for mandating unique device identifiers for medical devices.

More hospitals earning Medicare bonuses under value-based purchasing

New ACO data released by CMS Friday shows that the percent of hospitals that have earned a performance bonus in 2018 climbed to 57 percent, up from 55 percent last year. The total number of ACO participants declined from 2,955 in 2017 to 2,808 in 2018.

Comments Off on Morning Headlines 11/7/17

Curbside Consult with Dr. Jayne 11/6/17

November 6, 2017 Dr. Jayne Comments Off on Curbside Consult with Dr. Jayne 11/6/17

I did some work earlier this year with a small hospital that was having trouble recruiting and retaining physicians. Smaller facilities can have challenges, depending on geography and community demographics. This particular organization is a little over an hour drive from a major metropolitan area that has plenty of universities, professional sports, and cultural attractions. Depending on your willingness to commute, it would be entirely possible to live in the city or its suburbs and drive to work. There is also plenty of desirable housing in the growing semi-rural community, so the hospital leadership has been somewhat stumped at why they are having so much difficulty with recruiting and retention. I was initially brought in to do an analysis of their physician compensation strategy.

Looking at the physician salary piece is fairly straightforward. There’s good data available from practice management organizations along with specialty societies and various independent analysts. They were paying a little less than I would have expected, with some student loan repayments being offered that are largely irrelevant to mid-career physicians. Their benefits were a little below average, with relocation allowances and healthcare benefits on the less-generous end of the spectrum. They did offer a couple of more unusual benefits such as pet insurance, and disability coverage was solid. In presenting my findings, I asked if they had done any exit interviews with departing physicians and was surprised to learn that they had not. I offered to broaden my work with them to dig into this and they agreed.

I’ve not done many exit interviews as such. In my past life, our human resources department handled them and simply presented data and summaries to the hiring manager when an employee departed. However, I’ve done many stakeholder analysis projects and decided to use that approach when reaching out to physicians and other providers who had departed over the last year.

For those readers who may not be familiar with a stakeholder analysis, it’s in the realm of qualitative research. Participants are interviewed using a standard set of questions, with their narrative responses recorded and analyzed. Since everyone is asked about the same issues in the same way, response trends can be used to identify areas where an organization may have some work to do. Although some consultants will have a second observer attend the interview and assist with analysis of the responses to reduce potential bias, I’m usually a one-consultant show, so I record the interviews with permission. The results are transcribed and then I can more easily perform the analysis and group parallel responses to create the final anonymized summary.

Several interviewees referenced concerns about the commute after deciding to live closer to the metropolitan area for access to what they felt were better schools. Others wanted to live closer to the city to be closer to religious institutions that weren’t present in the community around the hospital. There were some common themes around the hospital not seeming to value diversity and physicians having difficulty fitting in, with several respondents referring to an “old boys’ network.” As people are interviewed, they tend to be more reserved with their responses, then become a little more free as they begin to trust the interviewer. These interviews kept that pattern, with people becoming less guarded as we chatted. I was glad that I was recording the discussions because some of them were pretty entertaining.

One leader was specifically cited multiple times as being a challenge to work with, largely because of what interviewees described as an obsessive focus on sports. It seems most of his conversations contained sports analogies that may not have been fully understood by colleagues who were not of a semi-rural American background. Attempts to gain market share were discussed as playing offense and defense, with plenty of stories about his time coaching his children’s various sports teams. There were also some perceived sexist remarks, with stories about fathers helping coach the teams and mothers being there to bring the Popsicles.

Others described a culture where medical staff meetings felt like a Three Stooges movie, with slapstick antics and inside jokes. Another described departmental meetings which habitually started late, with the pre-meeting downtime being filled by stories of colleagues going together on hunting and fishing trips, which was not only boorish behavior towards those who weren’t part of the trips, but also offensive to those who had religious or personal beliefs around those pastimes. A few alluded to some potentially offensive remarks around ethnic or racial backgrounds, but weren’t comfortable providing specifics because of concerns they might be individually identified.

As the interviewer, you have to stay objective and not indicate that you’ve heard those comments before. It would have been great to be able to say, “No worries, this is about the tenth time I’ve heard this, so you’re not going to be identified,” but you can’t. Stakeholder analysis is challenging, because when you hear about a specific individual multiple times, it’s hard not to start developing a mental picture of that person that can impact future interactions. Sometimes people start to sound like someone you’d want to sit and have a drink with, where others begin to feel like someone you’d never want to be stuck next to at a meeting.

After the interviews were done and I sat reviewing the transcripts, I couldn’t help but reflecting on some of the common themes. Unfortunately, they weren’t unique to this hospital or part of the country, but are things I see more often than I’d like during my travels. I have a habit of capturing some of the more bizarre things I hear in meetings, using a specific phrase in my notes to make them searchable. I looked back at some calls I’ve been on over the last year and found many of the same concepts cited by my exit interview participants. In addition, there were analogies about gambling in general, betting on horse races, and the Vietnam War, which I’m sure weren’t well received by their respective audiences. (Pro tip: probably not a great idea to use gambling analogies when you’re speaking to a group at a faith-based health system that isn’t on board with it.) Other stories in my files included a rambling speech from an executive who took more than a month off to follow a European sports competition, which probably didn’t resonate well with the hourly employees he was speaking to who will never have that luxury.

As I prepared my report, I did some serious thinking about how much to summarize the results vs. how many specifics to include. It’s hard to make meaningful change when you don’t have specific examples to use when coaching people and over-generalizations aren’t helpful. But I had a genuine sense that the people who were the most inappropriate during some of these physician interactions weren’t intentionally trying to offend, but that they didn’t seem to know better ways to interact with their colleagues or that they were creating a culture where people felt unwelcome. As leaders in the organization, I knew they woul’d receive my report and would see themselves, which would be difficult. They would also face challenges in trying to understand how much the cultural factors cited in the stakeholder interviews could be modified given the current state of the organization and its leadership.

I delivered the executive summary of the report in person, then walked through it in detail for a core group of leaders. Fortunately, they received the report in the intended spirit, which was to help identify factors that could impact physician retention and recruiting. There was some good-natured ribbing during the discussion, as leaders identified themselves and their hobbies from the report. They seemed willing to want to understand how to better work with colleagues from different backgrounds along with strategies to reduce misunderstandings when using personal stories and analogies in conversations. I referred them to a colleague who is much more adept at that kind of work and hope that the individuals most cited in the interviews can learn more about themselves and how they interact with others. I also made some recommendations on salary and benefits that I hope make a difference.

One of the reasons I enjoy working in healthcare IT is the great diversity of people with whom I interact. We have an increasingly mobile workforce and it’s a tremendous opportunity to learn about cultural practices from across the country and around the world. It’s also a challenge to think about ways that we can be more inclusive in how we conduct ourselves and in working with colleagues from different backgrounds. It’s also an opportunity for organizations to empower their members to speak up when inappropriate remarks or behavior occur. This organization not only lost some great physicians, but the turnover they experienced had a negative financial impact as they re-recruited for the same positions multiple times.

During the executive briefing, one of the physician leaders asked me about guidelines to determine when someone is crossing the line. I told them my general rule of thinking whether they’d want to say the same thing in front of their supervisor, spouse / partner, or their mother. If it doesn’t pass those tests, it’s probably better left unsaid or for a non-business conversation. I also put in a plug for effective meetings, because when you have an agenda, start on time, and stick to published topics, you’re less likely to go astray.

I recently ran into the leadership and cultural competency consultant that I had recommended to them and was pleased to hear that they’ve been working together for some time. It sounds like they’re progressing and have not only made some strides with a more welcoming environment, but also have seen a decline in physician turnover. It’s hard to know whether those elements are related, but I was glad to hear that the organization is doing well.

What strategies does your organization use to embrace diversity? Leave a comment or email me.

Email Dr. Jayne.

Comments Off on Curbside Consult with Dr. Jayne 11/6/17

Morning Headlines 11/6/17

November 5, 2017 Headlines Comments Off on Morning Headlines 11/6/17

UPMC says $2B project to build 3 hospitals will put it in ‘a class virtually onto itself’

Pittsburgh-based UPMC will spend $2 billion to build three new technology-focused specialty hospitals that it hopes will position it to become the “Amazon of health care.”

Allscripts Healthcare Solutions (MDRX) Q3 2017 Results – Earnings Call Transcript

On its Q3 earnings call, Allscripts President Richard Poulton notes that the company has passed $2 billion in annual revenue, making it the second largest public health IT vendor.

Lawmakers look to keep close tabs on VA’s health record switch

A bipartisan group of congressman from the House Committee on Veterans Affairs introduces legislation requiring the VA to hand over documentation detailing how it intends to implement its Cerner EHR. Chairman Rep. Phil Roe (R-TN) called the bill “essential legislation that will give Congress additional tools to carry out effective oversight of this challenging undertaking.”

Politically connected cancer mogul faces questions over his genetic tests

Healthcare billionaire Patrick Soon-Shiong, MD falls under suspicion for exaggerating the success of his GPS Cancer genetic test sales on a call with investors.

Comments Off on Morning Headlines 11/6/17

Monday Morning Update 11/6/17

November 5, 2017 News 5 Comments

Top News

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UPMC will spend $2 billion to build three new Pittsburgh specialty hospitals for heart and transplant, cancer, and vision restoration and rehabilitation.

UPMC calls the new facilities “digitally-based specialty hospitals.” Microsoft is also working on the project in an unstated capacity, with a goal of changing “what today is often a disjointed and needlessly complex experience for patients and clinicians.”

UPMC says it will reallocate existing beds to the new facilities. The Pittsburgh market has an excess of inpatient beds.

UPMC declared itself as “the global destination for outstanding healthcare” in its announcement, in which it also states its aspiration to become “the Amazon of healthcare.” The 39-hospital, 80,000-employee UPMC also predicts it will double in size within five years. Its annual revenue is $17 billion.


Reader Comments

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From Jingle Pockets: “Re: the JP Morgan Healthcare Investor Conference in January in SF. What are the best digital health parties?” I’ve never been invited or attended that conference since it’s for JP Morgan clients only as I understand it, so I can’t help. However, I’m sure some readers have been there and might offer suggestions.

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From Skilly Litigator: “Re: Citrix. Do you think most hospitals are aware of the software pieces-parts on which they rely daily or do they believe vendor claims that they wrote everything in-house? Do contracts require the big vendors to disclose the third parties whose solution their products require? Do customers ask for specific details about their rights as a sub-licensee? At least one vendor had their reliance on previously undisclosed third-party components disclosed in a lawsuit relating to sublicensing agreements. What happens if the parties go their separate ways or if a once-removed sublicensor retires their product?” Most clients would be aware of expensive third-party components like Citrix, Cache, or drug databases, but probably less so of free and possibly invisible components. Vendor developers use a lot of tools that could be sunsetted, while products that run on servers (web or otherwise) assume that the components they require will be around forever. Perhaps readers would be interested in a webinar on the topic – I’m open to suggestions. I don’t want to be an alarmist if few problems have cropped up related to third-party software components, but maybe it’s a bigger exposure than I assume. I haven’t received confirmation that Citrix hiked their license fees significantly as one hospital executive reported here previously. 

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From Graysky: “Re: Lucro. Consider asking Bruce to disclose ownership interests to your readers when he’s publishing Readers Write articles. Several of the Nashville hospital operators have direct equity in Lucro, which is nothing more than a way for these hospital operator executives to advertise vendors that they have a personal ownership interest in through Lucro. CHS and Lifepoint contribute to the Heritage Innovation Fund, which provides VC funding to many of the vendors that advertise on Lucro. Lucro has already raised a round of funding with Heritage.”

From Cherokee People: “Re: Columbus Regional Health Physicians (IN). Went live on Epic at most of its affiliated and owned physicians offices Wednesday. The hospital is a Cerner shop and has been for a few years now. I’m not aware of any practices affiliated with or owned by Columbus Regional Health that implemented Cerner’s ambulatory solutions.”


HIStalk Announcements and Requests

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Poll respondents say GE Healthcare has taken the biggest ambulatory EHR fall, although the other vendors listed aren’t far behind.

New poll to your right or here: Have you ever donated money to a hospital or health system without being pressured and without expecting a personal benefit? Those of us with health system management experience know that feeling of dread when the calendar invitation arrives for the upbeat meeting in which we will be collectively pressured to donate to hospital projects or to the United Way, with the clear but carefully unstated hint that our strong-armed magnanimity could affect the “team player” portion of our performance reviews. I would rather flush money down the toilet literally than to give it to hospitals to flush figuratively, but that’s just jaded and cynical me.

Thanks to the following companies that recently supported HIStalk. Click a logo for more information.

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We provided STEM activity kits for Ms. P’s elementary school class in Florida in funding her DonorsChoose teacher grant request. She convenes STEM creation periods 2-3 times per week in which the students choose which materials they want to use, concluding, “The creativity and collaboration going on at this time is priceless. I also love watching how they take each other’s ideas into consideration and work together to make the best end result possible.”


This Week in Health IT History

One year ago:

  • An MD Anderson Cancer Center internal report warns that the organization will lose $450 million in FY17, with the cost of its Epic implementation named as one of the four contributing factors.
  • McKesson lays off 60 employees of its Enterprise Information Solutions business.
  • Walgreens files a $140 million lawsuit against former partner Theranos.
  • Siemens announces that it will take its Healthineers division public.

Five years ago:

  • Hearst acquires Milliman Care Guidelines.
  • Kaiser Permanente promotes President and COO Bernard Tyson to chairman and CEO, replacing George Halvorson.
  • Allscripts CEO Glen Tullman confirms reports that the company is seeking strategic alternatives.

Ten years ago:

  • CCHIT announces the first six inpatient EHRs to earn its permanent or conditional certification: CPSI, Eclipsys, Epic, HMS, Prognosis Health, and Siemens Soarian.
  • A House bill supports independent health record trusts.
  • Cerner says KU hospital let Kansas City down by choosing Epic, leading the hospital CIO to counter that it was happy to pay more for Epic than Cerner because its doctors like it a lot better.
  • Cerner wins a nine-year contract to install PathNet in the VA.

Last Week’s Most Interesting News

  • Allscripts turns in decent quarterly results.
  • Documents filed with the state of Georgia indicate that Athenahealth will close its Atlanta support center and lay off 61 employees the week before Christmas.
  • Meditech announces a big quarterly product revenue jump even as earnings slid 31 percent.
  • Cerner blames its quarterly revenue and earnings expectation shortfall on big deals that didn’t close and less-than-expected performance from its IT outsourcing business.

Webinars

November 8 (Wednesday) 1:00 ET. “How Clinically Integrated Networks Can Overcome the Technical Challenges to Data-Sharing.” Sponsored by: Liaison Technologies. Presenters: Dominick Mack, MD, executive medical director, Georgia Health Information Technology Extension Center and Georgia Health Connect, director, National Center for Primary Care, and associate professor, Morehouse School of Medicine;  Gary Palgon, VP of  healthcare and life sciences solutions, Liaison Technologies. This webinar will describe how Georgia Heath Connect connects clinically integrated networks to hospitals and small and rural practices, helping providers in medically underserved communities meet MACRA requirements by providing technology, technology support, and education that accelerates regulatory compliance and improves outcomes.

November 15 (Wednesday) 1:00 ET. “How Hospitals and Practices Can Respond to Consumerism by Better Engaging Patients Through Price Transparency and Payment Options.” Sponsored by: Change Healthcare. Presenters: Kathy Moore, president, Moore Martini Medical; Linda Glidewell, VP of business development, consumer payment solutions, Change Healthcare. Healthcare consumerism and high-deductible health plans require providers to offer upfront estimates and payment options throughout all points of service. In his webinar, we’ll discuss consumerism as a critical area of opportunity in revenue cycle management and review numerous areas across the revenue cycle where your staff interacts with patients and leaves lasting impressions. From your first interaction with patients on the phone to discuss financial responsibility; to collecting payments at all points of service; to offering payment plans and various payment options — these are all areas that can be game-changing. With the right approach to consumerism, you can improve patient collections and optimize revenue from the start while also improving the overall patient experience.

Previous webinars are on our YouTube channel. Contact Lorre for information.


Acquisitions, Funding, Business, and Stock

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From the Allscripts earnings call:

  • The company says it is approaching $2 billion in annual revenue, making it the second-largest publicly traded pure health IT vendor.
  • Allscripts will continue to support the former McKesson Star and HealthQuest revenue cycle solutions.
  • The company confirmed that it cut headcount among the former McKesson employees almost immediately after the acquisition and did the same within the Allscripts group in Q3. It also shut down an Allscripts office in Atlanta in consolidating employees into the former McKesson office in Alpharetta.
  • Allscripts plans to quickly integrate the former McKesson EIS into its operations, eliminating its separate identity within two quarters.
  • The move of Horizon Clinicals into discontinued operations will be complete by Q1 of next year. As McKesson had previously announced, Horizon support will end in March 2018, although the company suggests that outside companies may provide some level of customer support.
  • The company says it has not yet obtained customer feedback on McKesson’s laboratory information system but is interested in doing that.
  • Allscripts plans to GA its new, cloud-based ambulatory EHR next year, touting its strengths as usability, interoperability, mobility, and inclusion of embedded AI tools.

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Politico reports that Patrick Soon-Shiong publicly bragged to investors about sales of NantHealth’s GPS Cancer genetic test to hospitals without telling them that some of the ordering doctors are or were on his payroll as consultants.


People

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Medical second opinion vendor More Health hires Jeffrey Lasker, MD, MMM (Vision Healthcare Consulting) as chief physician officer.

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Heather Haugen, PhD, MS (Xerox) joins Atos as chief science officer.

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Press Ganey hires Jason Erdell (Change Healthcare) as president and chief client officer.


Announcements and Implementations

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Southeastern Health (NC) will go live on Epic this month under its shared services agreement with Carolinas HealthCare.


Government and Politics

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A former compliance team member of Epic customer WakeMed (NC) files a whistleblower False Claims Act lawsuit claiming that Epic defaults its software to bill both anesthesia base units and procure time in surgical cases, resulting in double billing that totals hundreds of millions of dollars across all Epic clients. Epic says the whistle-blower apparently doesn’t understand how claims software works and notes that the Department of Justice has already declined to get involved.

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Four members of Congress who serve on the House Committee on Veterans Affairs introduce legislation that would compel VA Secretary David Shulkin to provide the committee with documents covering timelines and costs of its planned Cerner implementation.

New FDA guidance tells medical device vendors that it’s OK to share the information that those devices collect directly with the patients using them with seeking additional FDA marketing approval, as long as those manufacturers provide no further interpretation than they already offer to physicians. FDA also acknowledges that some devices don’t collect information in a patient-friendly or shareable format and suggests that manufacturers tell patients to contact their doctors with any questions.  


Other

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Craig Joseph, MD notes the awkward signage required to tout Epic as an AMIA 2017 sponsor despite the absence of a company Twitter account.

Drug overdose deaths jumped 21 percent last year, a bigger increase than that of the previous four years combined. Gun-related deaths also took a turn upward from 9,600 to 11,000, with two-thirds of the total involving suicide. The biggest killers – cancer and heart disease – are on the decline, although drugs and guns more than offset those as the death rate actually increased.

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An apparently intoxicated cardiologist in Russia takes sick leave after being captured on video rambling incoherently and trying unsuccessfully to enter his computer password.


Sponsor Updates

  • QuadraMed, a Harris Healthcare company, will exhibit at HealthAchieve November 6-7 in Toronto.
  • Salesforce will host its annual Dreamforce conference November 6-9 in San Francisco.
  • Surescripts will exhibit at the 2017 NextGen One User Group Meeting November 5-9 in Las Vegas.
  • Huron will exhibit at Salesforce’s Dreamforce event November 6-9 in San Francisco.

Blog Posts


Contacts

Mr. H, Lorre, Jenn, Dr. Jayne, Lt. Dan.
Get HIStalk updates. Send news or rumors.
Contact us.

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Morning Headlines 11/3/17

November 2, 2017 Headlines 3 Comments

Allscripts announces third quarter 2017 results

Allscripts reports Q3 results: revenue increased 15 percent to $449 million, adjusted EPS –$0.16 vs. –$0.06.

Leidos Holdings, Inc. Reports Third Quarter Fiscal Year 2017 Results

Leidos reports Q3 results: revenue up 34 percent to $2.5 billion, adjusted EPS $0.95 vs. $1.25, beating on earnings but missing on revenue.

CPSI Welcomes Back Two Returning Community Hospitals

Seiling Municipal Hospital (OK) and El Campo Memorial Hospital (TX) both announce that they will return to CPSI after contracting with unnamed CPSI competitors. Seiling Municipal Hospital was recently profiled by Athenahealth as strong users of its cloud-based acute care EHR.

Hospitals sue CMS over 340B drug changes

AHA and two other hospital lobbying groups sue CMS after the agency published a final rule that will drastically cut funding for the 340B discount drug program. The program was originally introduced to help underfunded hospitals buy drugs for low-income patients, but hospitals have monetized the program to maximize their profits.

News 11/3/17

November 2, 2017 News 9 Comments

Top News

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Allscripts announces Q3 results: revenue up 15 percent, adjusted EPS $0.16 vs. $0.14, beating revenue expectations and meeting on earnings. Share price was unchanged in early after-hours trading.

The company raised its 2017 financial outlook. It also reiterated its expectation to spend $50 million in severance and transaction costs starting in Q4 related to its acquisition of McKesson’s Enterprise Information Solutions business.


Reader Comments

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From Desperado: “Re: Verity Health (fka Daughters of Charity). As expected and reported on HIStalk, they are implementing Allscripts enterprise-wide. It will be interesting to see how the organization uses consultants, as the new owner Patrick Soon-Shiong is already rapidly cutting consultants.” Unverified. It was obvious that Verity was the client when Allscripts announced a new six-hospital Sunrise sale in August without naming its customer. Verity is rumored to have scrapped a year’s worth of product evaluations in being forced to choose non-frontrunner Allscripts as part of a deal between Soon-Shiong and Allscripts, which lost $150 million from buying since-devalued NantHealth shares as Soon-Shiong took a $100 million position in Allscripts stock that also went down. I’m sure Allscripts is happy to get a new Sunrise sale and the chance to earn back some of the losses that resulted from its ill-advised dealings with Soon-Shiong, but shotgun implementations by financially struggling health systems don’t always go well.

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From Who Is Infoblocking: “Re: Sutter Health’s patient portal. Apparently early adopters of Epic’s portal have taken a big step backward when it comes to the ability of patients to download their health records, making it unreasonable for providers to attest unless the problem is addressed. See the attached error message, which appears nine times out of 10 when trying to download visit summaries. Not clear if this is a generic Epic issue or specific to the Sutter implementation.” Unverified, but odd if it sometimes works and sometimes doesn’t.

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From This One Goes To 11: “Re: Athenahealth. Seems worried about a takeover of the company based on a recently filed 8-K.” Athenahealth’s October 23 change-in-control filing protects its top executives from acquisition-related termination by guaranteeing them a one-year severance, a 100 percent expected bonus payout, 12 to 18 months of continued medical and dental coverage based on position, immediately vested stock options, and a $10,000 outplacement grant.

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From Albacore: “Re: Athenahealth. I’m surprised by its layoffs in Atlanta, which includes closure of its entire client service center, 61 jobs in total. Affected job titles as reported to the state are a far cry from sales and marketing. RazorInsights was headquartered near Atlanta. Wonder how many of these people are supporting the inpatient platform and if this is early recognition of Athena pulling back from the inpatient market?” Unverified. Scheduling a layoff to start one week before Christmas is pretty cold. 


HIStalk Announcements and Requests

I mentioned the excellent book “Misbehaving: The Making of Behavioral Economics” by newly minted Nobel winner Richard Thaler. Here’s an example of a brilliant observation from it. The CEOs of companies nearly universally seek high-risk but potentially high-reward startup acquisition deals, knowing that while most of the companies will fail, one or two will hit a home run and make the process profitable (the same theory venture capitalists apply). However, the decisions of which acquisitions to pursue rests in the hands of VPs, whose perception is that their personal upside to a successful acquisition is minimal (maybe a small bonus or promotion), while their downside risk is getting fired for choosing an unsuccessful one. That means CEOs will never know about deals that would interest them and potentially be in the best interest of the company and its shareholders. Thaler suggests that a single VP be held responsible for the overall performance of a package of acquisitions instead of being personally tied to just one. It is fascinating to me how corporate strategies and execution can be derailed by people whose biggest fear is being fired and who act accordingly. I’ve seen some ugly internal fights even in non-profit health systems, where mid-level executives destructively wage guerilla warfare against each other in trying to increase their influence or future job prospects. Patients were incidental to the infighting, of course. Organizational Behavior was one of my favorite MBA courses.

This week on HIStalk Practice: CMS Administrator Seema Verma announces “Meaningful Measures” effort. Performance Solutions launches orthopedic practice transformation service. Health2047 invests $12 million in new business. AMA President David Barbe, MD shares frustrations with his home state’s lack of a PDMP. Heal expedites house-call access to lactation consultants, PTs. Teladoc creates new executive role, reports on Q3. The Missouri State Medical Association works on members-only HIE. Impact Healthcare implements opioid addiction treatment app.


Webinars

November 8 (Wednesday) 1:00 ET. “How Clinically Integrated Networks Can Overcome the Technical Challenges to Data-Sharing.” Sponsored by: Liaison Technologies. Presenters: Dominick Mack, MD, executive medical director, Georgia Health Information Technology Extension Center and Georgia Health Connect, director, National Center for Primary Care, and associate professor, Morehouse School of Medicine;  Gary Palgon, VP of  healthcare and life sciences solutions, Liaison Technologies. This webinar will describe how Georgia Heath Connect connects clinically integrated networks to hospitals and small and rural practices, helping providers in medically underserved communities meet MACRA requirements by providing technology, technology support, and education that accelerates regulatory compliance and improves outcomes.

November 15 (Wednesday) 1:00 ET. “How Hospitals and Practices Can Respond to Consumerism by Better Engaging Patients Through Price Transparency and Payment Options.” Sponsored by: Change Healthcare. Presenters: Kathy Moore, president, Moore Martini Medical; Linda Glidewell, VP of business development, consumer payment solutions, Change Healthcare. Healthcare consumerism and high-deductible health plans require providers to offer upfront estimates and payment options throughout all points of service. In his webinar, we’ll discuss consumerism as a critical area of opportunity in revenue cycle management and review numerous areas across the revenue cycle where your staff interacts with patients and leaves lasting impressions. From your first interaction with patients on the phone to discuss financial responsibility; to collecting payments at all points of service; to offering payment plans and various payment options — these are all areas that can be game-changing. With the right approach to consumerism, you can improve patient collections and optimize revenue from the start while also improving the overall patient experience.

Previous webinars are on our YouTube channel. Contact Lorre for information.


Acquisitions, Funding, Business, and Stock

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Arrhythmia diagnosis technology vendor IRhythm Technologies reports Q3 results: revenue up 49 percent, EPS –$0.28 vs. –$2.80, beating analyst expectations for both and raising revenue guidance. Shares are up 117 percent in the past year, valuing the company at just over $1 billion.

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LabCorp makes an unspecified equity investment in MC10, which offers wearable sensors for clinical trials participants. The company had previously raised $72 million.

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Leidos announces Q3 results: revenue up 34 percent, adjusted EPS $0.95 vs. $1.25, beating earnings expectations but falling short on revenue.

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Philips predicts that its health technology focus will increase sales 4-6 percent in the next three years.

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Apple reports Q4 results: revenue up 12 percent, adjusted EPS $2.07 vs. $1.67, beating analyst expectations for both with strong contributions from the iPhone 8 and 8 Plus. Shares rose nearly 5 percent in early after-hours trading as Apple closes in on becoming the first $1 trillion market cap company.


Sales

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In Thailand, Bangpakok 9 International Hospital chooses Medicomp’s Quippe Basic for point-of-care electronic documentation. 

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Cayuga Medical Center (NY) chooses Summit Healthcare’s Exchange platform to exchange CCDs, taking advantage of an integrated HISP, API extendibility, and a customization mapper to support future standards-based integration initiatives. 

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Two former CPSI community hospital customers return in choosing Evident’s Thrive EHR – Seiling Municipal Hospital (OK) and El Campo Memorial Hospital (TX). Both hospitals have new operators who reversed previous decisions to move to the systems of unnamed CPSI competitors. Ironically, Athenahealth showcased Seiling in a splashy announcement just two weeks ago, with the hospital’s CEO bragging on how its system helped with the its financial turnaround and criticizing “our previous vendor” that has apparently shed the “previous” part of the title under a new management company.

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In Australia, the Chris O’Brien Lifehouse cancer hospital will implement Meditech 6.x modules for oncology, pharmacy, materials management, and patient portal.

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Edward-Elmhurst Health (IL) selects Outcome Health’s waiting room advertising system.


People

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Clinical documentation system vendor ChartWise Medical Systems names Steven Mason (MedeAnalytics) as president and COO.

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Oncology benefits management company Oncology Analytics hires Rick Dean (UnitedHealth Group) as CEO and board member. He replaces founder Marc Fishman, who will serve as executive chairman.


Announcements and Implementations

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Clinical Computer Systems, Inc. completes integration of its Obix Perinatal Data System with Medhost at Cibola General Hospital (NM).

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Healthwise launches shared decision-making programs orthopedics, cardiology, urology, primary care, and end-of-life, with the patient-expressed preferences saved back to the the patient record via HL7 connectivity.

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Prescription affordability and adherence solutions vendor ConnectiveRx announces that it has worked with analytics vendor EagleForce Health to screen 12 million prescriptions in support of the federal anti-kickback statute, in which government health plan prescriptions are reviewed in real time to make sure that no pharma co-pay cards or patient savings cards are used.

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Washington, DC rolls out PulsePoint Respond, a free phone app that 911 operators can use to notify CPR-trained users of nearby cardiac arrests. The app also displays the location of nearby automatic external defibrillators.

Google’s AI-focused startup incubator announces four companies for its first class, all of them working in health IT. The chosen startups get training, mentorship, equity-free support, and access to hardware and software.

  • Augmedix (Google Glass-power remote scribing)
  • BrainQ (brain wave analysis following neurological disorders)
  • Byteflies (wearable vital sign monitoring)
  • Cytovale (ED sepsis detection)

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University of Miami Health System (FL) goes live on Epic and renames its hospital-based facilities to University of Miami Hospital and Clinics as it transitions to an academic teaching hospital. 


Government and Politics

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The AHA and two other hospital lobbying groups sue CMS in trying to stop reduction in payments under the 340B Medicaid drug rebate program that was originally intended to help underfinanced hospitals procure drugs for indigent patients. Hospitals make a small fortune (and have raised pharma’s ire) since the law doesn’t require them to limit the use of discounted drugs use to indigent patients or to pass along their savings to consumers or insurers, directly boosting their bottom lines but reducing those of drug manufacturers. An earlier analysis found that a single oncologist could boost a hospital’s profits by $1 million in ordering the discounted chemo drugs for patients with commercial insurance.


Innovation and Research

A “liquid biopsy” blood test detects changes in a patient’s BRCA1 or BRCA2 breast cancer genes that require switching chemotherapy drugs, an application of precision medicine that allows tailoring drug therapy as tumors become resistant.

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A study finds that the symptoms and exertion tolerance of non-emergency chest pain patients don’t improve after having a cardiac stent implanted. The study surprisingly involved performing phony stent implants on half the study patients, then compared the outcomes to those who received real stents. It will be interesting to see how this affects the hundreds of thousands of stents implanted each year, given that: (a) providers get paid richly for installing stents; (b) patients are always looking for a quick solution to their problems and have grown used to the idea that stents are a cure-all; and (c) doctors will likely be reluctant to reduce their stent use for fear of being sued for malpractice.


Other

The local paper profiles an Oregon-based union employee of Legacy Health who says her hospital-provided health insurance –issued by an insurer acquired by the health system for a reported $247 million — “hardly covers anything” in her lymphoma care. The paper notes that the hospital is taking the employee to collections even as it booked a $126 million profit last year and paid its CEO $2.3 million.

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A McKinsey report on digitization of the banking industry likely has healthcare implications. New digital competitors like Amazon, Alibaba, and Google are threatening the bottom lines of banks, but those banks that embrace technology and improve their marketing and analytics will reap huge profits through upselling, optimizing their branch formats, enhancing sales productivity through tablet-based digital tools, industrializing operations with automation and artificial intelligence, and adopting APIs to allow working around legacy systems. McKinsey coins the “four horsemen of the e-pocalypse” to describe threats from digital players:

  • Disintermediation, as customers move to other technologies to borrow money, send money, or buy low-cost goods without using a debit card.
  • Unbundling, where non-bank companies like PayPal cherry pick profitable banking services that leave banks running money-losing services such as checking accounts.
  • Commoditization, where undifferentiated banks fail to create brand loyalty.
  • Invisibility, where customers can buy unbranded services without knowing or caring which bank provides them, with banks suffering from a loss in the customer relationship.

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Alex Wubbels — the Salt Lake City hospital nurse who was manhandled by a since-fired city detective for following hospital policy in refusing to allow blood to be drawn from an unconscious patient — will receive a $500,000 payment even though she didn’t file a lawsuit. Salt Lake City and the University of Utah will each pay $250,000. Wubbels says she will use part of the money to help people obtain police body camera footage to prove their claims. She will also donate to the Utah Nurses Association and lead the ANA’s #EndNurseAbuse campaign.


Sponsor Updates

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  • LogicStream Health employees pack food boxes for The Food Group.
  • Medicomp Systems showcases the capabilities of its Quippe Clinical Data Engine on its updated website.
  • Netsmart will work with nursing facility operator Cantex Continuing Care Network to develop a smart referral management solution.
  • LifeImage joins Google Cloud as a technology partner.
  • Imprivata is named Cerner’s 2017 Partner of the Year.
  • Two Meditech-using hospitals in Maryland earn HIMSS EMRAM Stage 7.
  • Sonifi Health will offer evidence-based health education from Healthwise to customers of its interactive patient engagement system.
  • EClinicalWorks will exhibit at the National Conference on Correctional Health Care November 4-8 in Chicago.
  • FormFast, Healthwise, and Kyruus will exhibit at Salesforce’s Dreamforce conference November 6-9 in San Francisco.
  • Imprivata will exhibit at HealthAchieve November 6-9 in Toronto.
  • Intelligent Medical Objects Chairman, Founder, and CEO Frank Naeymi-Rad receives AMIA’s Leadership Award.
  • Healthcare Growth Partners advises Ascend Learning in its acquisition of health simulation vendor Kognito.
  • Liaison Technologies embeds cloud-friendly ECS integration capabilities into its Alloy Edge solution.
  • MedData and Experian Health will exhibit at the HFMA Region 9 Annual Conference November 5-7 in New Orleans.
  • Medecision customer Christiana Care Health System earns the John M. Eisenberg Patient Safety and Quality Award.
  • Navicure will exhibit at the NextGen One Conference November 5-8 in Las Vegas.
  • Netsmart will exhibit at the American Public Health Association Annual Meeting & Expo November 4 in Atlanta.
  • NTT Data Services will present and exhibit at Salesforce’s Dreamforce conference November 6-8 in San Diego.
  • Clinical Computer Systems, developer of the Obix Perinatal Data System, will exhibit at the NOHIMSS Fall Conference November 10 in Cleveland.
  • PatientKeeper will exhibit at HealthAchieve November 6-7 in Toronto.

Blog Posts


Contacts

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EPtalk by Dr. Jayne 11/2/17

November 2, 2017 Dr. Jayne 1 Comment

I’m getting a lot of reminders and updates on things that should be done by the end of the year. CMS sent out a reminder that there are 30 days left to submit an “informal review request” after physicians review their 2016 PQRS Feedback Reports and 2016 Annual Quality and Resource Use Reports. These became available on September 18, 2017 and show physicians whether they will receive the 2018 PQRS downward payment adjustment. You have to love such a fancy way of describing a penalty. I continue to be surprised by the number of physicians who still don’t know what a QRUR is or how to review it to see how they’re doing with what CMS sees as their quality metrics.

Although we’re still waiting for the 2018 Medicare Physician Fee Schedule Final Rule, it’s a safe bet that it will be finalized close to what was presented in the Proposed Rule. Physicians who review their reports and feel their payment adjustment status is inaccurate can request an informal review of the results through December 1. Even if you think your results are accurate, the QRUR provides some good information on how CMS thinks you are doing and can be used to help inform future plans for the transition to value based care.

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The American Medical Informatics Association (AMIA) has launched a new journal, JAMIA OPEN, that is aimed at sharing research with the broader community. All articles will be open access and the online journal will include a focus on innovation and diversity across AMIA’s informatics areas. The format will also include abstracts written in patient-facing language so that non-informatics readers can understand how the research described might be relevant to patient care.

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I don’t have time to attend most vendors’ earnings calls, but I enjoy reading the transcripts. I’m having difficulty reconciling some industry trends with the reality of healthcare in the US. Athena isn’t the only one in this situation, but there was a fair amount of discussion during the earnings call, so they’re top of mind.

The problem is this: the powers that be have decided that we need to move towards value-based care, yet organizations are still aligning themselves around traditionally fee-for-service models. Athena is still hanging its hat on the “visits per provider” metric and blaming decreased visits (partially due to recent hurricanes) on decreasing earnings. I get how the math works, but isn’t decreasing visits one of the key goals of managed care and/or value-based care? We want to keep patients healthier and out of the office, out of the hospital, or if they do have to come in, have them in less frequently.

Whether it’s a natural disaster or natural attrition of business due to healthier patients, having vendors continue to be dependent on encounter volume or charge volume seems like it’s going to be a long-term problem and not just a short-term one related to storms. Other economic factors such as lack of insurance or job loss also negatively impact these numbers, and depending on how things go in 2018, they may become larger factors for subgroups of Americans. People who don’t have insurance and don’t have jobs usually don’t have money and therefore don’t go to the doctor. Then when they do, it can often be a desperate situation ending in write-offs, bad debt, or agency-based collections.

Towards the end of the call, one of the analysts asked about utilization trends, specifically whether an increase in collections later in the year could be linked to high-deductible health plans. He asked whether utilization is increasing as people hit those deductibles and whether it will start to go back down after the beginning of the calendar year. I can’t speak for others, but as someone who has met her deductible for the first time in my life, I can tell you my healthcare utilization did change. What was different this year was having major surgery, which in my situation as a relatively healthy person, is the only way I could possibly have met my deductible. Once I knew I was over that hump, I made sure I completed some previously-recommended preventive services that would otherwise have had large patient-pay components and that I completed them during this calendar year. I’d have had the tests eventually, but meeting my deductible took away any financial excuse for not doing so. Had I not have had surgery, though, I might have been tempted to push those screenings into 2018.

Jonathan Bush responded to the question specifically citing visits per physician as “the biggest needle-mover.” This is where I have trouble wrapping my brain around a vendor who seems to be approaching a conflict of interest with what their physicians need to do to succeed under payment reform. If vendors are incented by patient volume, how dedicated will they be to building features that manage things like prospective payments or capitated-type payments? How interested will they be in helping practices manage problems around the true cost of care? I don’t have a lot of knowledge of how Athena does things specifically, but I know with some of the other vendors I work with, those types of features and that type of support still feel like an afterthought.

There was another question that dealt specifically with value based payments and whether ACOs are impacting volumes. Bush mentions that interoperability should reduce duplicate procedures and testing, but they can’t yet draw conclusions from the data they are seeing. Of course, all of this also begs the question of whether a revenue cycle or practice management system vendor is the right entity to help a practice through these difficult times or whether it’s a bit like the fox guarding the hen house. Maybe practices would be better off receiving information from independent advisors or from regional or specialty medical societies.

Where do you get your information about how to best manage the shift to value based care and how to cope with payment reform? Leave a comment or email me.

Email Dr. Jayne.

Morning Headlines 11/2/17

November 1, 2017 Headlines 3 Comments

CMS Releases Medicare Shared Savings Program 2016 Results

Former National Coordinator for Health IT Farzad Mostashari, MD analyzes the recently released MSSP performance data, concluding that population health-driven savings increase with time, and noting that ACOs appear to consistently outperform fee-for-service organizations on quality measures.

Community Health Systems, Inc. Announces Third Quarter 2017 Results with Net Operating Revenues of $3.666 Billion

Community Health Systems (TN) reports Q3 results: revenue fell 16 percent to $3.7 billion, EPS -$0.96 vs. -$0.69, missing on both. Share prices fell seven percent in after hours trading.

Here are the final recommendations of the White House opioid commission

The White House Opioid Commission publishes its final report on combating the opioid epidemic. The report makes 56 recommendations, including expanded use of block grants to fund state-level initiatives, a mandate that HHS establish prescriber guidelines and educational materials covering the use of opioids in pain management, mandated deployment of state-level PDMPs, bolstered prosecution and criminal penalties, and a media blitz aimed at informing the public of treatment options. The commission also recommends that “CMS remove pain survey questions entirely on patient satisfaction surveys, so that providers are never incentivized for offering opioids.”

Google Is Backing an Eclectic Group of Startups That Use AI in Health Care

Alphabet startup incubatorLaunchpad Studio announces its first class of companies, all of which are startups using AI to tackle healthcare problems.

Readers Write: Detecting Healthcare’s Data Dilemma

November 1, 2017 Readers Write Comments Off on Readers Write: Detecting Healthcare’s Data Dilemma

Detecting Healthcare’s Data Dilemma
By David Lareau

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David Lareau is CEO of Medicomp Systems of Chantilly, VA.

“It is a capital mistake to theorize before one has data.” – Sherlock Holmes, “A Study in Scarlett” (Arthur Conan Doyle).

The great detective Sherlock Holmes understood the important role that data plays in decision-making. Whether you’re sleuthing or delivering patient care, you need data in order to make sense of things.

Not long ago, before EHRs were pervasive across health systems, providers struggled to obtain the data they needed for good clinical decision-making. Today healthcare has an abundance of clinical data, along with a new data dilemma: finding the right data at the right time.

In a recent webinar, our team asked 76 healthcare IT professionals and physicians about their biggest data-related challenges. According to 43 percent of the respondents, the top struggle was not a lack of data, but finding the right data at the right time. An additional 25 percent claimed they did not have access to the data they needed; 9 percent said they did not have enough data; and 6 percent complained of having too much data.

In other words, providers are challenged by the inability to access the data they need when and where they need it.

Consider what happens when a physician sees a patient and lacks ready access to their medical history, problem lists, medications, and test results. If the physician does not have access to the results of a critical test, the provider may re-order the identical test, possibly wasting healthcare resources and creating confusion about the accuracy of the patient’s records.

Interoperability advances are making it easier to share data, but true interoperability continues to be a struggle, thanks to a lack of standards, inconsistent data, and inadequate monetary incentives. We asked our webinar participants about their biggest barriers to achieving interoperability and 42 percent pointed to the challenge of data exchange. An additional 35 percent expressed difficulty applying data and making it actionable, while 20 percent reported difficulties organizing the data they received.

New exchange standards, such as FHIR, are making it easier to send data, but typically the incoming data is highly disorganized and not stored in an easily searchable format that adds value for clinical decision-making. In fact, the flood of incoming, unorganized data is creating new concerns about potential medical liability risks for providers. For example, a physician that inadvertently overlooks a critical abnormal finding that’s hidden within an incoming record could be held accountable for any ensuing patient complications.

Despite new standards and APIs that facilitate the exchange of data, much of the data exists in unstructured formats that are difficult to organize, include too many duplicates, and are not easy to search. In fact, an estimated 80 percent of all health data is stored in unstructured formats, such as free-text or scans.

Many in healthcare are optimistic that new technologies such as natural language processing (NLP) and artificial intelligence (AI) can be leveraged to convert dictated chart notes to free-text, and free-text to data that is in a format that is actionable for clinicians. The reality is that these solutions are still not sufficiently mature for most healthcare applications: the error rates for converting speech to text to data are, at best, between 8 and 10 percent, which is not reliable enough to support clinical decision- making.

Not all data is created equal – and not all data is equally usable for advanced analytics or for clinician use at the point of care. In order to be actionable for providers and usable for AI and analytics applications, data must be structured and organized in a way that facilitates viewing across clinical domains. One way to do this is to leverage technology that intelligently identifies, interprets, and links medical concepts and maps them to standard nomenclature, such as ICD-10, SNOMED, RxNorm, and LOINC.

Once disorganized data is converted to structured, actionable formats, it becomes more accessible to clinicians, allowing them to easily find the information they need during patient encounters and within their normal workflows. The structured data is also properly formatted for input into AI systems that use advanced algorithms to deliver clinical insights.

To ensure the ongoing creation of high-quality, structured data, we need to give clinicians the ability to capture coded clinical data as a byproduct of the documentation process and within their normal workflows. With more usable data, physicians can more readily access actionable information at the point of care. Organizations can more easily exchange quality information, and not just chunks of data that must be manually interpreted and organized. And, health systems are better equipped to harness the power of AI and the advanced analytics that enhance the delivery of patient care.

Detective Holmes understood that he could not optimally perform his job without data. To optimally deliver healthcare, providers need more than just data, which is why the industry must embrace technologies that make it easy to access the right data at the right time.

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Readers Write: How Technology Could Aid Amazon’s Prescription Drug Play

November 1, 2017 Readers Write Comments Off on Readers Write: How Technology Could Aid Amazon’s Prescription Drug Play

How Technology Could Aid Amazon’s Prescription Drug Play
By Thomas Borzilleri

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Thomas Borzilleri is the founder and CEO of InteliSyS Health of San Diego, CA.

Amazon’s plans to enter the healthcare market may not be ready for prime time, but it is high time for the healthcare industry to take Amazon’s threat seriously. A recent report from Goldman Sachs notes that with 2016 prescription spending (net of rebates) topping $400 billion, high repeat purchases, lack of price transparency, and an increasing cost burden on the consumer, it’s no surprise that prescription drugs have attracted the attention of the 800-pound e-commerce gorilla. But the Goldman Sachs report goes on to warn Amazon of the complexity of the drug supply chain and the high barriers to entry for new players.

This is all certainly true. Most patients still buy their drugs the old-fashioned way, at retail pharmacies or through mail order services that reflect negotiated prices between public and private payers and pharmacy benefit managers (PBMs). These relationships will be challenging to break up. But as customers pay more for their prescription drugs, they will increasingly clamor for more price transparency and the ability to shop around, as they are starting to do for other healthcare services. As consumers increasingly drive decisions about their own care, Amazon may well find a path to success. The key is to partner with emerging technologies to bypass prescription drug middlemen and deliver real savings.

Amazon could wade in slowly to the healthcare sector. It could easily sell durable medical equipment online. There is no prescription needed and Amazon could most certainly lower prices if it can capture enough volume. At the very least, the e-tailer could offer free shipping as an incentive to choose Amazon over smaller DME vendors. Amazon could also, reasonably easily, get into the market to sell over-the-counter medicines, as discount clubs like Costco and BJ’s have already done with great success. Again, these purchases do not need to involve insurers or physicians, and Amazon can appeal directly to the consumer.

But this approach only scratches the surface of the opportunity for Amazon. If Amazon wants to go after the big Kahuna—prescription drugs—it will have to meet three essential goals

Inspire Trust

Amazon must inspire trust throughout the healthcare ecosystem, among patients, first and foremost, but also among doctors who agree to write e-prescriptions to a preferred pharmacy. Amazon may also have to inspire trust among insurers if it decides to partner with them to get access to drug coverage, formularies of preferred drugs, and guaranteed patient volume. They must convince all parties that the drugs they will deliver are as safe and effective as those found in retail pharmacies.

Promise Convenience

Amazon must offer added convenience over traditional mail-order pharmacies. The holy grail of two-hour or same-day delivery will require a large number of distribution centers, all of which need to be inspected by the US Food and Drug Administration and will require a high level of security. These demands, including added manpower to run these facilities such as highly-paid pharmacists, will be costly.

Deliver Value

Amazon can only succeed if it can offer a lower price point, and it can only offer better prices if it can capture significant patient volume. If Amazon simply seeks to replace existing pharmacy benefit managers by winning brand-new contracts with insurers, this will be a challenge. Amazon will not, starting out, have the volume-based discounts that PBMs enjoy. Meanwhile it will face a variety of new startup costs. Additionally, Amazon will face a fierce battle from entrenched PBMs.

Amazon must, as it has done in other markets, forge an entirely new path by connecting directly with consumers and offering reliable products conveniently and affordably. Amazon has chosen a fortuitous moment, as the consumerization of healthcare is finally gathering steam. Consumers are paying more out-of-pocket than ever for prescription drugs due to rising deductibles, co-pays, and co-insurance. Meanwhile, most patients have no idea that the price of drugs varies widely and that buying medications retail may be cheaper than their co-pays. This sets up a unique opportunity for Amazon to help lift the veil on drug prices and offer patients lower-priced alternatives.

By operating independently of insurers, Amazon can sidestep a head-on fight with established PBMs. Instead of spending resources trying to pick off patients one insurer at a time, they could choose to woo patients directly, competing on price at the point of care where prescribing decisions are made.

PBMs ostensibly exist to provide volume discounts to insurers on drugs. But in reality, these “discounts” are riddled with padding. Insurers are receiving volume discounts off the manufacturer’s retail price, but PBMs tack on something called “ingredient spread” while also charging a per-transaction fee. Meanwhile, prices vary widely from one pharmacy to the next, even in the same town, and consumers typically have no idea. Consumers who buy their drugs using insurance coverage usually accept the PBM-mediated price at their closest pharmacy because they don’t have the knowledge or the ability to shop around.

Instead of allying with manufacturers and insurers (the supply side of the prescription drug transaction), Amazon would do much better to join forces with the demand side, appealing to consumers and doctors. But how can Amazon get into a doctor’s office? Send sharply dressed salesmen and women like the makers of Lipitor and Viagra? Since the Sunshine Act and other rules regulate interactions between healthcare providers and the pharmaceutical industry, drug sales personnel have less access to providers than ever.

Amazon could instead leverage new technologies that help doctors and patients access real-time drug prices at nearby pharmacies. Amazon’s prices could be listed along those at traditional retail pharmacies to allow patients and doctors to choose the lowest-priced vendor, depending on whether the retail price or the co-pay is a cheaper option. These tools, if accessed seamlessly within the e-prescribing workflow, would integrate Amazon into the existing marketplace of drug retailers and give the e-tailing behemoth a seat right in the exam room alongside the doctor and patient, giving Amazon direct and immediate access to patients across different private health insurers, public payers, and the uninsured/underinsured.

Amazon would still face the challenge of establishing mail order centers and getting them certified by the FDA. But they wouldn’t be seeking to replace one middleman—pharmacy benefit managers—with another. By going straight to the consumer and the provider at the point of care, Amazon would have a unique opportunity to disrupt both the supply chain and the pricing models for prescription drugs. This could potentially have far-reaching benefits for consumers by causing overall downward price pressure and further exposing price-gouging that PBMs engage in, even while promising discounts.

The Goldman Sachs report posits that Amazon’s best chances for success rely on choosing a partner that can help it get into the market, such as an existing PBM. While this approach may be a boon for Amazon, it won’t do much to disrupt drug prices and transparency. If Amazon is serious about remaking the way Americans buy their prescription drugs, the e-commerce behemoth should look to cut out the middlemen—PBMs—and appeal directly to consumers to help tackle the prescription drug affordability crisis in the United States.

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Readers Write: Why Healthcare Organizations Take So Long to Make Buying Decisions and How We Can Fix It (Part 3 of 4)

November 1, 2017 Readers Write 3 Comments

Why Healthcare Organizations Take So Long to Make Buying Decisions and How We Can Fix It (Part 3 of 4)
By Bruce Brandes

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Bruce Brandes is founder and CEO of Lucro of Nashville, TN.

In Part 2 of this series, we discussed the importance of first clearly defining and aligning regarding the problem a buyer seeks to solve before evaluating products. The next key element is to invite trusted colleagues to contribute insights and experience in the context of that problem and possible solutions.

Below we will share more about the type of buying decisions most impacted by a lack of trust and explore how healthcare buyers can gain more confidence in the choices they must make.

There are three buckets of non-labor spend in health systems:

  1. Supply chain — traditionally influenced by group purchasing organizations (GPOs.
  2. Pharma — traditionally influenced by pharmacy benefit management companies (PBMs).
  3. “Everything else,” which falls into a category known as purchased services (traditionally managed less centrally).

Purchased services represent 20-30 percent of a hospital’s expenses and include a wide array of vendors ranging from health IT and digital health to outsourced professional and ancillary support services. Many health systems are seeking to drive standardization, minimize duplication, and realize greater value related to purchased services.

Vendor selections for purchased services are generally complex, collaborative processes. With input required from so many key stakeholders for a purchase commitment of a significant amount, how do risk-averse health systems ever make a buying decision? The challenge is exacerbated by an array of third-party sources of market insight, including consultants, industry associations, purchasing groups, etc., all with their own opinion about the “best” vendor for that area of focus.

If you are responsible for this buying decision, who do you trust? How can you efficiently synthesize so many disparate data points of opinion about the best product in the market to put them all into context to make the right decision for your organization?

Healthcare buyers take many of these outside opinions with a grain of salt, skeptical of the motivations of some. Vendors may compensate the “non-partisan” organizations to endorse their products. Unsolicited information received from cold calls or spam emails can rarely be trusted.

 

When you are making a strategic hire to your team, do you ever expect the personal and professional references given you by the candidate to say anything too negative? More commonly, even before an interview, it is wise to do a quick check of LinkedIn to seek common connections that you know will give you more clear and honest insight (this works in both directions for the candidate and organization).

 

Similarly, buyers want an efficient, private way to tap into trusted colleagues across their professional network,  those who have experience in tackling this same problem in an organization like theirs.

 

The time and cost associated with deciphering vendor claims, vs. hype, vs. reality are untenable for the entire industry. With today’s time and financial pressures, physical site visits and reference calls are (finally) antiquated. Thus, it is critical to gain necessary insights from those you trust to reduce the risk associated with strategic vendor selections.

 

The value of a trusted network is compounded when this collaboration is contextualized with the problem and potential solutions under consideration. As trusted communities come together, the entire industry can benefit.

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