For the most current ABL Healthcare Online 
and access to ABL.org, go to
 
http://www.abl.org/new/html/resources_news_hc.asp

 
JANUARY 25, 2007 ISSUE:
 

 -- Click on Titles Below to Go to News Item --

"PAYING FOR Rx MIRACLES" -- NEXT ABL EVENT
February 8, 8-11 a.m., San Francisco
 
WELCOME NEW MEMBER!
Patrick Soon-Shiong, MD, Abraxis BioScience Inc.
 
MEMBER NEWS

Hythiam to Acquire CompCare
Aperio Teams with Nikon in Europe
AARP Joins Partnership to Spur Action on Healthcare
CalOptima Touts 85% of OC Physician Award Winners
CMS Grants $ for Alternatives to Institutional Care
Kopp Named Interim COO
GSK Awarded $63 Million HHS Contract for Flu Rx
OneLegacy Sets National Record in 2006
Vocera's Brent Lang Named Acting CEO; Julie Shimer Becomes CEO of Welch Allyn
DWT Invites ABL Members to Employment Law Seminar   

 

HEALTHCARE & GOVERNMENT

Bush Proposes Health Insurance Tax Change
Meanwhile, California Groups Criticize President's Plan
Coalition Proposes Health Insurance Expansion
Meanwhile, States & Legislators Tackle the Issue Too
House Passes Bill to Require Drug Benefit Negotiations

 

HEALTHCARE TRENDS

Premiums Grow Twice as Fast as Wages, Inflation
Coalition Offers Free Electronic Prescribing Program
Doctor Group Wants Fundamental Change in Patient Care
Providers, Companies Offer Medical Credit Cards
L.A. Program Discourages Use of EDs for Non-Urgent Care
Too Few Americans Receive Screenings, Counsel

 
UPCOMING ROUND TABLES & EVENTS

 

 

"Paying for Rx Miracles" Next ABL Round Table Event

February 8, 8-11 a.m., San Francisco:  As expected, the new leadership of the 110th Congress has made negotiating lower prices for drugs a primary objective. And why not?  After allthe VA has a formulary, and so do most health plans. Why shouldn't the government pay rock-bottom prices for its beneficiaries' drugs? These and lots of other questions will be posed and thoroughly discussed when our panel of "miracle workers" from Big Pharma and Biotech interact with the "Big Payers" at our next Round Table Event. We'll open with each panelist sharing their seasoned perspective. Then you and our other Members will take the floor to query, probe and dialogue on how Pharma's "miracle machine" can solve our healthcare crisis ... as long as we can pay for it. Our expert panelists will be:
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Arlene Kirsch, PhD, Area VP, GlaxoSmithKline - "The Miracle Machine & Following the Rx Dollar"
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Patrick Soon-Shiong, MD, CEO, Abraxis BioScience Inc. - "Bioinformatics and Personalized Medicine: the Key to Solving Our Healthcare Crisis"
Art Small, MD, Director, Value Based Healthcare - Genentech, Inc. - "Both Sides Now"
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Jeff Flick, Regional Administrator, CMS - "The Government's Role as the Largest Medication Purchaser"
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Sharon Levine, MD, Associate Executive Director, The Permanente Medical Group, Inc. - "Determining Kaiser's Formulary: Maximizing Value"

WELCOME NEW MEMBER!


Patrick Soon-Shiong, MD, Abraxis BioScience Inc.
Patrick Soon-Shiong, MD, is Chairman and CEO of Abraxis BioScience, a global biopharmaceutical company that develops, manufactures and markets a broad portfolio of injectable products and leverages revolutionary technology, such as its nab™ platform, to discover and deliver breakthrough therapeutics that transform the treatment of cancer and other life-threatening diseases. The first FDA-approved product to use this nab platform, ABRAXANE, was approved in January 2005 by the FDA for treatment of advanced-stage metastatic breast cancer and is being developed for adjuvant breast, lung, ovarian, prostate, melanoma and head and neck cancers. Patrick assumed his current position in April 2006, following the $4.1 billion purchase of American BioScience by Abraxis BioScience. This acquisition enabled him to regain operational control of the two entities he founded in June 1994: Abraxis Pharmaceutical Products and American BioScience, Inc. From June 1994 to June 1998, he was also CEO and Chairman of VivoRx, Inc., a biotechnology company. Patrick has joined the Los Angeles Round Table.

MEMBER NEWS

Hythiam to Acquire CompCare
Hythiam, Inc., where Rick Anderson is Senior Executive VP, is acquiring Comprehensive Care Corporation (CompCare), the eighth largest risk-based managed behavioral health organization servicing Medicaid, Medicare and commercial third-party payers. Of the ~1.1 million member lives CompCare manages, approximately 1 million are on a cost-risk basis. The acquisition should allow Hythiam increased access to a network of 8,000 CompCare providers that will increase the potential referral base and availability of PROMETA at treatment sites. The combined company will also have the initial infrastructure in place to provide substance abuse disease management to accommodate nationwide third party reimbursement. >>

Aperio Teams with Nikon in Europe
Aperio Technologies, Inc., where Dirk Soenksen is CEO, announced that Nikon Instruments Europe will be the official distributor of the full line of Aperio’s award-winning ScanScope slide scanning systems and Spectrum digital pathology information management software to the clinical market, including hospitals and academic medical centers, within Europe.
>>

AARP Joins Partnership to Spur Action on Healthcare
AARP, where Jennie Chin Hansen is President Elect, Business Roundtable and SEIU have partnered to form Divided We Fail, and will use the influence of their over 50 million combined memberships to amplify the message that attaining healthcare and long-term financial security is vital for all Americans. Through grassroots work, advertising and online activities, the partnership will strive to engage the public, business and elected officials in the debate, encouraging public leaders to offer solutions.
>> 

CalOptima Touts 85% of OC Physician Award Winners
CalOptima, where Richard Chambers is CEO, has announced that it has 160 of the 186 "Physicians of Excellence" award winners in its medical networks. For the second year in a row, CalOptima-contracted physicians make up 85+% of the total number of award winners.
>>

CMS Grants $ for Alternatives to Institutional Care
CMS, where Jeff Flick and David Sayen are Regional Senior Executives, has awarded 17 states [including California] more than $23 million in grants for FY07 and up to $900 million over five years for demonstration programs that will help build Medicaid long-term care programs. This is the first round of grants that will total $1.75 billion over five years (2007-2011) to help states shift Medicaid’s traditional emphasis on institutional care to a system offering greater choices for individuals and a full range of home- and community-based services.
>>

Walter Kopp Named Interim COO
Walter Kopp has been appointed the Interim COO of The Physicians Foundation at CPMC, effective immediately. The 80-physician specialty doctors' group is a Sutter affiliate.

GSK Awarded $63 Million HHS Contract for Flu Rx
GlaxoSmithKline, where Arlene Kirsch is a senior executive, has been awarded a contract, with a value of at least $63.3 million, from the U.S. Department of Health and Human Services for the development of pre-pandemic and pandemic flu vaccines. The five-year deal also gives the U.S. government the option to fund an additional $44 million of future clinical development programs. Meanwhile, GSK has begun shipping up to 15.5 million treatment courses of its antiviral Relenza, part of its agreement with the Federal government announced last year for building flu pandemic stockpiles.
>>

OneLegacy Sets National Record in 2006
OneLegacy, where Tom Mone is CEO, announced its seventh consecutive record-breaking year and national records in donors and lives saved by a single organ recovery organization. Working in concert with more than 200 hospital partners, OneLegacy coordinated 433 organ donors -- a 16% increase, and the transplantation of 1,338 recovered organs -- a 9% increase over the previous year.
>> 

Vocera's Brent Lang Named Acting CEO; Julie Shimer Becomes CEO of Welch Allyn
Julie Shimer has been named President and CEO of Welch Allyn, an international manufacturer of medical diagnostic and therapeutic devices, cardiac defibrillators, patient monitoring systems, and miniature precision lamps, with 2,300+ employees. Julie, former CEO of Vocera Communications and a 2002 ABBY Award Winner, has been a member of Welch Allyn’s board of directors since 2002.
>>  Meanwhile, Brent Lang, who participated in Julie's Round Table presentation earlier this month, has stepped in as Acting CEO of Vocera and into ABL's Northern California Round Table. Brent, an early member of Vocera, has led development of the company’s marketing and product strategies, and been directly involved in its venture capital fund raising. >>

DWT Invites ABL Members to Employment Law Seminar
Davis Wright Tremaine, where Gerry Hinkley is a Partner, is presenting a "California Employment Law Update" seminar, on January 30th in San Francisco and February 1st in Los Angeles. ABL Members and/or their HR executives are invited to attend at no charge. Click here for the Seminar Agenda and to Register Online (insert "Comp" opposite Total):
>> 

 

HEALTHCARE & GOVERNMENT

Bush Proposes Health Insurance Tax Change
President Bush has proposed to offer a federal tax deduction of $7,500 for individuals and $15,000 for families who obtain health insurance on their own or through an employer. This would for the first time levy a tax on the value of employer-sponsored health insurance in some cases. Currently, most employees are not taxed on the value of their employer-sponsored health insurance. Under the proposal, individuals and families with employer-sponsored health insurance plans worth more than the proposed allowable deductions would pay taxes on the difference. The deduction would be available to all who purchase health insurance, regardless of the value of their policies or whether they itemize deductions on their tax returns. For U.S. residents who receive employer-based health insurance, the deduction would be offset by the cost of their coverage. The proposal would pose no net cost to the government over 10 years. Bush said that a family of four with an annual income of $60,000 who purchases its own health insurance would save $4,500 in taxes annually under the proposal.

Also, Bush has proposed redirecting portions of existing federal healthcare funding to "help the states that are coming up with innovative ways to cover the uninsured." The proposal would redirect about $30 billion in federal Medicare and Medicaid funding currently designated for disproportionate share hospitals. (NY Times, 1/24; California Healthline, 1/23; CQ Healthbeat, 1/23/07)

Meanwhile, California Groups Criticize President's Plan
Some California healthcare advocates and hospital officials said Bush's healthcare reform proposal would not benefit uninsured and low-income individuals. John Capitman, Executive Director of the Central Valley Health Policy Institute and Professor of Public Health at CSU Fresno, said most health plans in California do not fall within the proposed deduction limits. The average employer-sponsored plan costs about $700 to $800 monthly for an individual and $1,500 for a family, he said. However, a Governor Schwarzenegger spokesman said Bush's tax deductions likely would complement his proposal if both plans were enacted. Hospital officials criticized the part of Bush's plan that would redirect federal Medicaid funding from hospitals to states to subsidize insurance coverage, estimating it would result in $700 million in lost funds to California hospitals annually. (Fresno Bee & Sacramento Bee, 1/24/07)

Coalition Proposes Health Insurance Expansion
Health Coverage Coalition for the Uninsured* has announced a proposal to provide health coverage to more than half of the nation's 47 million uninsured, initially calling for increased funding for an expansion of SCHIP programs and tax credits for families to purchase private insurance for children. Uninsured children would be automatically enrolled in SCHIP when they enroll in other means-tested programs such as discount school lunches and food stamps. Expanding coverage for children would cost an estimated $45 billion over five years, and the coalition envisions that it would be covered by the federal government. A second phase of the coalition's plan recommends giving states the flexibility and funding to expand Medicaid to make all adults at or below the federal poverty level eligible for coverage. The coalition didn't estimate a cost. It also would offer tax credits for adults with incomes between 100% and 300% of the federal poverty level to help them purchase private insurance. (NY Times & USA Today, 1/19; AP/Houston Chronicle, CongressDaily, CQ Today & HCCU release, 1/18/07)
*Members include U.S. Chamber of Commerce, AHIP, AMA, AHA, Catholic Health Association, AARP, United Health Foundation, BCBS Association, Kaiser Permanente, Pfizer, American Academy of Family Physicians, American Public Health Association, Families USA, Federation of American Hospitals, Healthcare Leadership Council, and Johnson & Johnson.

Meanwhile, States & Legislators Tackle the Issue Too
In recent weeks, California Gov. Schwarzenegger and Pennsylvania Gov. Rendell announced proposals, based on a Massachusetts law enacted last year, that would require all state residents to obtain health insurance. Governors in Colorado, Illinois and Kansas have called for universal health insurance for residents, and governors in Arizona, Indiana, New Mexico and New York have called for expanded coverage. A bipartisan group of lawmakers introduced legislation that would provide grants to states to test healthcare reform proposals. And Sens. Wyden (D-Ore) and Kennedy (D-Mass) and Rep. Dingell (D-Mich) have said they will seek to pass legislation that would extend Medicare to all residents and allow them to select from health plans offered to federal lawmakers. Sen. Clinton (D-NY) said she plans to introduce legislation that would extend and expand SCHIP to cover children whose families earn up to 375% of the federal poverty level and allow any family, as well as employers, to buy insurance through the program. Rep. Dingell plans to introduce a similar bill in the House. (AP/Arizona Daily Star, 1/21; Washington Post, Long Island Newsday, 1/22 & NY Times, 1/22/07)

House Passes Bill to Require Drug Benefit Negotiations
The House voted 255-170 to approve a bill (HR 4) that would require the HHS secretary to negotiate prices directly with pharmaceutical companies under the Medicare prescription drug benefit and report to Congress in six months. The bill would allow insurers that sponsor Medicare drug plans to negotiate lower prices than those obtained by the government. However, White House Press Secretary Tony Snow said, "If this bill is presented to the president, he will veto it." (Washington Post & McClatchy/Miami Herald, 1/13/07)

 

HEALTHCARE TRENDS

Premiums Grow Twice as Fast as Wages, Inflation
Health insurance premiums paid by employers for their employees rose an average 7.7% in 2006, twice as fast as workers wages and inflation, according to the 2006 Employer Health Benefits Survey by the Kaiser Family Foundation and the Health Research and Educational Trust. The increase is less than 9.2% recorded in 2005 and the recent peak of 13.9% in 2003. Premiums have increased 87% over the past six years. (Managed Care Weekly Watch, 1/16/07)


Coalition Offers Free Electronic Prescribing Program
The National E-Prescribing Safety Initiative, a coalition of technology and healthcare companies, has launched an Internet-based electronic prescribing program that physicians can access at no cost. The software, called eRx NOW, is available free to any healthcare provider with legal authority to prescribe medication, and requires no download, no new hardware and minimal training. Physicians and staff learn to use the software through an online tutorial that can be completed in 15 to 20 minutes. (CongressDaily, 1/17; CQ HealthBeat, 1/16/07)

Doctor Group Wants Fundamental Change in Patient Care
The American College of Physicians have suggested putting internists and family doctors at the center of patient care, paying them to coordinate prescriptions and specialists to help prevent disease and avoid unnecessary treatments. Specialists who generate many procedures are reimbursed more by private insurers and Medicare, and there are few incentives to keep patients healthy, said ACP. If ACP’s recommendations are accepted, Medicare would no longer pay physicians based solely on how many procedures or visits are billed. Instead, physicians would be paid for taking responsibility for coordinating the care of the whole patient. For instance, doctors would be paid if they help a diabetic control blood sugar and thus avoid a foot amputation later. (Reuters, 1/22/07)

Providers, Companies Offer Medical Credit Cards
Healthcare providers in some states are pairing with financial institutions to offer medical credit cards to patients to pay their medical bills. Citibank's Citi Health Card is offered to patients through participating healthcare providers. The card offers monthly payments as low as $10 and includes a no-interest option for patients who pay down their medical debt quickly through higher monthly payments. Patients who do not meet the terms of that plan pay more than 20% in annual interest on their balance. Tenet, in partnership with UnitedHealth Group, has implemented a pilot program in Texas that offers a line of credit to employees to help address their escalating medical debts. Under the program, workers' copayments for healthcare services are paid through automatic payroll deductions. (Boston Globe, 1/22/07)

L.A. Program Discourages Use of EDs for Non-Urgent Care
Los Angeles County-USC Hospital is working with a private not-for-profit organization on a three-year pilot program that is intended to encourage frequent users of hospital ERs to seek treatment at private health clinics. LAC-USC and COPE will teach such patients about other options for medical attention, including private clinics where most program participants can be treated more regularly and at a lower cost than in an ED. Program participants receive care at no cost at the private clinics and are assigned a health coach to help them learn about healthcare options and manage their care. COPE officials estimated that the cost of care for one program participant decreased by about half over the seven months he has been enrolled. About 100 people are enrolled in the program, to which $250,000 has been committed. (LA Times, 1/22/07)


Too Few Americans Receive Screenings, Counsel
Providers are missing important chances to help Americans avoid disease or serious complications, according to two annual reports from HHS’s Agency for Healthcare Research and Quality, which found that the use of proven prevention strategies lags significantly behind other gains in healthcare. Only about 52% of adults reported receiving recommended colorectal cancer screenings. Fewer than half of obese adults reported being counseled about diet by a healthcare professional. Only 49% of people with asthma said they were told how to change their environment, and 28% reported receiving an asthma management plan. Only 48% of adults with diabetes received all three recommended screenings — blood sugar tests, foot exams and eye exams — to prevent disease complications. (Healthcare Daily Data Byte, 1/18/07)

 

UPCOMING ROUND TABLES & EVENTS

2/7 - Orange County Round Table
2/8 - Northern California Round Table: "Paying for Rx Miracles" Event
2/16 - Los Angeles Round Table
2/21 - Life Sciences Round Table   

 

For the most current ABL Healthcare Online and access to ABL.org, go to
 
http://www.abl.org/new/html/resources_news_hc.asp