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That Britain’s NHS will undergo an historic change (Britain Plans to Decentralize National Health Care”) is significant, sobering but not surprising. It’s an experience with valuable lessons for us over here on the other side of the pond. 

 

Lessons about the inefficiencies of centralized government healthcare. There’s no value in calling it “socialist” when you can just say, “see, it doesn’t work.”  As the man said, “attention must be paid.”

 

Lessons about what happens when your system is based on a cost-centric rather than a patient-focused philosophy of healthcare.  Yes – we really need to put the 800-pound gorilla on the operating room table.  Who needs “death panels” when you have “deny panels.”

 

And, finally, lessons about money.  It really isn’t all about the amount of money you spend – if you don’t spend it in the right places.  And that’s Lesson #1.

From the pages of the New York Times.  Draw your own conclusions.

Britain Plans to Decentralize National Health Care

LONDON — Perhaps the only consistent thing about Britain’s socialized health care system is that it is in a perpetual state of flux, its structure constantly changing as governments search for the elusive formula that will deliver the best care for the cheapest price while costs and demand escalate.

Even as the new coalition government said it would make enormous cuts in the public sector, it initially promised to leave health care alone. But in one of its most surprising moves so far, it has done the opposite, proposing what would be the most radical reorganization of the National Health Service, as the system is called, since its inception in 1948.

Practical details of the plan are still sketchy. But its aim is clear: to shift control of England’s $160 billion annual health budget from a centralized bureaucracy to doctors at the local level. Under the plan, $100 billion to $125 billion a year would be meted out to general practitioners, who would use the money to buy services from hospitals and other health care providers.

The plan would also shrink the bureaucratic apparatus, in keeping with the government’s goal to effect $30 billion in “efficiency savings” in the health budget by 2014 and to reduce administrative costs by 45 percent. Tens of thousands of jobs would be lost because layers of bureaucracy would be abolished.

In a document, or white paper, outlining the plan, the government admitted that the changes would “cause significant disruption and loss of jobs.” But it said: “The current architecture of the health system has developed piecemeal, involves duplication and is unwieldy. Liberating the N.H.S., and putting power in the hands of patients and clinicians, means we will be able to effect a radical simplification, and remove layers of management.”

The health secretary, Andrew Lansley, also promised to put more power in the hands of patients. Currently, how and where patients are treated, and by whom, is largely determined by decisions made by 150 entities known as primary care trusts — all of which would be abolished under the plan, with some of those choices going to patients. It would also abolish many current government-set targets, like limits on how long patients have to wait for treatment.

The plan, with many elements that need legislative approval to be enacted, applies only to England; other parts of Britain have separate systems.

The government announced the proposals this month. Reactions to them range from pleased to highly skeptical.

Many critics say that the plans are far too ambitious, particularly in the short period of time allotted, and they doubt that general practitioners are the right people to decide how the health care budget should be spent. Currently, the 150 primary care trusts make most of those decisions. Under the proposals, general practitioners would band together in regional consortia to buy services from hospitals and other providers.

It is likely that many such groups would have to spend money to hire outside managers to manage their budgets and negotiate with the providers, thus canceling out some of the savings.

David Furness, head of strategic development at the Social Market Foundation, a study group, said that under the plan, every general practitioner in London would, in effect, be responsible for a $3.4 million budget.

“It’s like getting your waiter to manage a restaurant,” Mr. Furness said. “The government is saying that G.P.’s know what the patient wants, just the way a waiter knows what you want to eat. But a waiter isn’t necessarily any good at ordering stock, managing the premises, talking to the chef — why would they be? They’re waiters.”

But advocacy groups for general practitioners welcomed the proposals.

“One of the great attractions of this is that it will be able to focus on what local people need,” said Prof. Steve Field, chairman of the Royal College of General Practitioners, which represents about 40,000 of the 50,000 general practitioners in the country. “This is about clinicians taking responsibility for making these decisions.”

Dr. Richard Vautrey, deputy chairman of the general practitioner committee at the British Medical Association, said general practitioners had long felt there were “far too many bureaucratic hurdles to leap” in the system, impeding communication. “In many places, the communication between G.P.’s and consultants in hospitals has become fragmented and distant,” he said.

The plan would also require all National Health Service hospitals to become “foundation trusts,” enterprises that are independent of health service control and accountable to an independent regulator (some hospitals currently operate in this fashion). This would result in a further loss of jobs, health care unions say, and also open the door to further privatization of the service.

The government has promised that the new plan will not affect patient care and that the health care budget will not be cut. But some experts say those assertions are misleading. The previous government, controlled by the Labour Party, poured money into the health service — the budget is now about three times what it was when Labour took over, in 1997 — but the increases have stopped. The government has said the budget will continue to rise in real terms for the next five years, but it is unlikely that the increases will keep up with the rising costs of care and the demands of an aging population.

“The real mistake that is being made by the health secretary is to drive through an ideologically determined program of reorganization which is motivated by the principle of efficiency savings,” said Robin Durie, a senior lecturer in politics at the University of Exeter. “History shows clearly that quality will suffer as a consequence.”

Dr. Durie added, “The gulf between the rhetoric of the white paper and the technicalities of what is involved in the various elements of the overall reorganization being proposed is just extraordinary.”

For example, he asked, how will the government make good on its promise to give patients more choice — a promise that seems to require a degree of administrative oversight — while cutting so many managers from the system?

“How will the delivery of all this choice be funded?” Dr. Durie asked. “And how will the management of the delivery of choice be funded?”

Dr. Vautrey said the country needed to have a “mature debate about what the N.H.S. can and cannot afford.”

He said: “It is a sign of the mixed messages that government sends out. They talk about choice and competition and increased patient expectations at the same time as they tell the service they need to cut costs and refer less and prescribe less. People need to understand that while the needs of everyone may be met, their wants will be limited.”

As they prepare for the change, many doctors are wondering whether it will be permanent this time around.

“Many of our colleagues have seen this cycle of change repeatedly,” Dr. Vautrey said. “Many would look at previous reorganizations and compare it to this one and wonder how long the current change will last before the next one comes along.”

I think this post says it all about show trial and tabloid character of the 'investigation' into direct to consumer genetic testing.  The attack was beside the point and failed to address substantive policy questions such as: how should FDA regulate genetic testing?   
 
I have my doubts about the clinical value of such tests absent the involvement of a physician.  And to be sure knowing whether or not you have the risk of such an illness is not as important as knowing just how much of a risk it is.  Still, if people voluntarily submit their DNA to a company for testing and use that information in a voluntary fashion (as people did at Scripps) such behavior can be monitored and evaluated to see if it causes "panic" as some less than thoughtful members of Congress claimed DTC genetic testing would.  (Trial lawyers, here's your cue..)  And the FDA might be interested in the clinical validity of tests and the claims companies are making about what they predict.  But these are serious questions that neither Congress nor the GAO cared to address.  Rather, they wanted to engage in 'gotcha' gutter politics.  They succeeded.  I hope they showered after it was done. 

And you know who you are ...

WASHINGTON—The Food and Drug Administration approved the first generic version of the big-selling blood thinner Lovenox, in a victory for a unit of Novartis AG.

The Novartis unit, Sandoz, and partner Momenta Pharmaceuticals Inc. have been in a tug of war for years with a California-based company, Amphastar Pharmaceuticals Inc., to win FDA approval for generic versions of Lovenox.

Amphastar has accused the FDA and its drug-division leaders of favoritism in the past year, noting that Momenta worked closely with the FDA on safety issues and investigations in recent years. Momenta has said its relationship with the FDA is appropriate.

Sanofi has fought to protect Lovenox from generic competition, saying that the drug is too complex to be completely copied safely. Researchers with ties to Sanofi recently filed citizens' petitions to the FDA asking the agency not to approve any company's enoxaparin.

The good news:  FDA Social Media Guidance. The bad news:  FDA Social Media Guidance.

Here’s how my interview with emarketer begins:

eMarketer: The FDA is expected to issue guidance on the use of social media this year. What do you think it will look like?

Peter Pitts:

There are a lot of ifs. The first if is, is this really a good thing? A lot of times when you ask for regulation and you get it, you may not be happy with it. If marketers are waiting for FDA guidance with the assumption that it’s going to make their jobs easier, that’s very much open to question.

And here’s how it ends:

Peter Pitts:

The concept of being incomplaunce vs. doing the right thig for the
public health cannot be contradictory to each other and right now they are. The issue is to step up to the plate and do what's right instead of what is legally conservative.

For everything in the middle, see here.

CMPI recently sat down with Congressman John Boozman (R-AR) to discuss the health care law.
 
Prior to being elected to Congress, Boozman was a volunteer optometrist for a clinic that provided medical services to low-income families. This year he is running against incumbent Senator Blanche Lincoln in the Arkansas U.S. Senate race.
 
By the looks of it, health care is going to play a pivotal role in the election.
 
During the Democratic primary this year, Senator Lincoln ran an ad with the following statement:
 
“I grew up in an Arkansas family where we were taught to solve problems, not through hate and anger, but by coming together and getting something done. That's why I cast the deciding vote to pass health care reform.”
 
But after winning the primary and a runoff, Senator Lincoln immediately began backpedaling on her role in the passage of the law.
 
She told the Democrat-Gazette in Arkansas, “I wasn't the deciding vote. I was among a handful of five Democrats that worked on getting consensus.”
 
Senator Lincoln is running away from her healthcare vote. And who can really blame her?
 
The health care law is deeply unpopular in Arkansas.
 
In our interview with Congressman Boozman, we discussed President Obama’s choice of Dr. Donald Berwick to head CMS, physician opposition to the health care law, and the impact of the law on his home state of Arkansas.
 
To watch our interview with Congressman Boozman, click here:

Congressman John Boozman (R,AR) from CMPI on Vimeo.


 

With each passing day, we seem to discover another harmful provision in the health care law.
 
The business community and some lawmakers are now calling for the repeal of a provision in the law that imposes a mandate on small businesses requiring them to file a 1099 form for every company transaction exceeding $600.
 
More on this at Politico:
 
Momentum is swinging toward altering the so-called 1099 provision in the reform law, which requires small businesses to file a 1099 form for every company from which they buy more than $600 in good and services. The Treasury department is aware of the business community's concerns that the provision is potentially burdensome and recently asked for formal comments on how to limit it. Four Democratic senators have asked Treasury to look into the problem and several Republicans have signed on to an amendment from Sen. Johanns to repeal the whole provision.

Drafters had hoped the provision would generate $17 billion to help pay for reform. But James Gelfand, director of health policy at the U.S. Chamber of Commerce, says he's rarely seen an issue on which members are so strongly united in opposition, calling them "apoplectic" over the provision. An administration source tells Pulse that the comments from the business community are "obviously something we take seriously" and that there's been significant outreach to them. Treasury has already made one change: Transactions on credit and debit cards won't have to reported on a 1099.
 
Please note that the US Chamber is holding an event on Monday, July 26th on the health care law’s impact on small business. Senator Mike Johanns (R-NE) and Doug Holtz-Eakin are two of the featured speakers. More on this event here.
 
CMPI recently interviewed James Gelfand, the Health Policy Director at the U.S. Chamber of Commerce.
 
Mr. Gelfand addressed this and other provisions in the bill the US Chamber considers harmful to the business community.
 
To watch CMPI’s interview with James Gelfand, click here:

James Gelfand Director of Health Policy, US Chamber of Commerce from CMPI on Vimeo.


 
 

I urge you to read this document, produced by Berwick and funded by health plans on how to reduce healthcare spending... Berwick's model of what health system does the best of reducing costs by improving health outcomes.  Once again the NHS.   Particularly disturbing is Berwick's belief that improving the patient 'experience' somehow makes up for ceding control of payment decisions on access to technology, particularly those who suffer from chronic illness. 



FOB Security

  • 07.20.2010

According to Craig Kessler, professor of medicine and pathology at Georgetown/Lombardi, the absence of mandatory clinical trials for biosimilar drugs could compromise their safety and effectiveness.

He said that the difference in manufacturing processes between companies can alter the drugs "in ways that technology can't detect.”

The healthcare reform law outlined a pathway for FDA to approve next-generation biopharmaceuticals modeled on original breakthrough drugs. But the legislation leaves the agency with a great deal of leeway -- including the flexibility to decide whether clinical trials are necessary at all.

"If you don't have clinical trials to take a look at all of these other off-label uses," Kessler said during a Capitol Hill discussion hosted by the Congressional Health Care Caucus, "then you don't really know what the equivalency in dosing is going to be like, and what the safety — the long-term safety — [issues] will be."

We need to proceed with biosimilars – but with care and caution.

No profit grows where is no pleasure ta’en;

In brief sir, study what you must affect

 "The Taming of the Shrew", Act 1 scene 1

The Approval Gap

  • 07.19.2010
The following (as originally seen in the Huffington Post) by our friend Steve Galson former Director of CDER and Acting Surgeon General:

Close the FDA Approval Gap

The extensive review  by a panel assembled by the Food and Drug Administration of the diabetes drug Avandia highlights the critical importance of government regulation and oversight of the drug industry.

Questions have been raised about the safety of Avandia since 2007, and a process to assess these risks versus patient benefits was undertaken by the objective professionals at FDA. But one important question underscores all such inquiry: What happens when the drug safety cop is taken off the beat?

Even though our system of pharmaceutical review and approval is regarded as the most effective in the world, there exists an incredible -- and potentially deadly -- loophole: unapproved drugs.

Recent news stories regarding the recall of 1,500 lots of Johnson & Johnson's children's and infants' Tylenol, Motrin, Zyrtec and Benadryl due to bacterial contamination, and the subsequent suspension of the their manufacture, reinforce the importance of the US Food and Drug Administration's (FDA) regulatory oversight over drug products--even years after they have been approved for sale. But due in large part to grandfather provisions going back 50 years, unapproved drugs - those that have been marketed prior to the establishment of today's FDA - are actively promoted, prescribed and taken by millions of patients in the U.S. These drugs escape FDA scrutiny otherwise imposed for all approved prescription and over-the-counter medications.

Most alarming is the fact that unapproved drugs account for nearly 72 million prescriptions per year. Unapproved drugs lack the specific quality controls of an FDA-approved drug, including manufacturing oversight that ensures the appropriate amount of active drug in each tablet, the purity of ingredients and consistency from dose-to-dose. And perhaps equally troubling is the fact that - unlike every other medication available for human consumption in the United States - unapproved drugs are not required to be accompanied by dosing information supported by human clinical studies.

The consequences of this approval gap can be tragic. Hundreds of deaths have been linked to the more than 500 unapproved drugs that FDA eventually banned. Yet to this day dozens of unapproved drugs are marketed under the regulatory radar. As recently as this past March, FDA took action against manufacturers of unapproved sublingual nitroglycerin tablets for treating certain heart conditions. FDA stated that it had seen "significant quality and efficacy problems" with unapproved nitroglycerin products and, as a result, recalled them from the market. Meanwhile, an FDA approved version had been available for years right alongside the unapproved, unregulated, and we now know, unsafe versions.

And the front-line gatekeepers of the nation's prescription drug delivery system--America's pharmacists--are themselves largely unaware of this dual standard for safety among the products on their shelves. A 2006 nationwide study of 500 pharmacists found that 91% of them incorrectly assumed that all of the products they dispense are FDA-approved.

They should be approved, of course. That's why in June of 2006, when I was head of the FDA's Center for Drug Evaluation and Research, we launched an initiative to finally address unapproved drugs. The Agency issued a Compliance Policy Guide (CPG) to review the safety and efficacy of unapproved drugs that continue to be available, in an attempt to bring these products into the modern world of drug safety with clinical, regulatory and manufacturing oversight.

Certain medications that have never undergone FDA evaluation should continue to be available for patients--when no substitute exists--so long as there are no known safety concerns. Many patients simply have no alternative treatment. But as soon as an approved version becomes available, FDA needs to act immediately and enforce its policies by withdrawing all unapproved formulations from the market. Regulatory oversight alerted us all to the risks associated with certain products manufactured by J&J. If no one is watching, how can we be sure it will never happen again?

CMPI

Center for Medicine in the Public Interest is a nonprofit, non-partisan organization promoting innovative solutions that advance medical progress, reduce health disparities, extend life and make health care more affordable, preventive and patient-centered. CMPI also provides the public, policymakers and the media a reliable source of independent scientific analysis on issues ranging from personalized medicine, food and drug safety, health care reform and comparative effectiveness.

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