Category Archives: Uncategorized

Multiple Insuers Without Regulation = Higher Practice Overhead

There is extreme waste for practitioners in our non-standardized way of filing for payment from multiple insurers.

Medical practices in the U.S. spend nearly four times as many hours a week dealing with insurers than do practices in Canada, at nearly four times the cost, researchers found.

And:

The researchers estimated that physician practices in Canada spend $22,205 per physician per year interacting with Canada’s single-payer agency. By contrast, U.S. physicians are spending $82,975 per doctor per year.

Medicynical note: The health care reform so reviled by republicans will correct this problem, not by going single payer, but simply by requiring insurers to use a standardized form. 

Pervasive conflicts of interest in Medical Journal Reports

More on conflicts of interest: and here too:

Economic ties that could bias drug trials and patient care might remain hidden due to tangled disclosure rules at medical journals, a new study reveals.

Researchers found that of 131 cancer journals, only 112 had policies requiring researchers to state conflicts of interest, such as drugmaker stock ownership or speaker fees. And among journals that did have such policies, the rules were all over the map.

“Journals can’t even agree on what a conflict of interest means,” said Dr. Aaron S. Kesselheim of the Harvard Medical School in Boston. “It is certainly confusing to authors and to readers.”

Scores of studies have shown that when researchers have a financial stake in their work, their reports are more likely to promote drugs and downplay side effects.

Medicynical note: It’s hard not to be a little cynical. There’s nothing new here. We’ve the perfect system to make money not to deliver effective health care. In our country big money trumps reason.

ASCO 2011: Cost Effectiveness Abstracts Pancreatic Cancer, Chronic Myelogenous Leukemia, Follicular Lymphoma

These are the last of the very few chemotherapy drug cost-effectiveness studies at ASCO 2011. As noted in previous posts, there very few such studies.

1. Cost effectiveness of systemic therapies for Pancreatic Cancer: (abstract 6114) This study is an incremental cost study comparing the costs of gemcytibine(G), gemcytibine + capecitibine (G+C), gemcytibine + erlotinib (G+E), and FOLFIRINOX (FFX 5-FU, leucovorin, irinotecan and oxaliplatin).

The incremental cost-effectiveness ratios of G+C, G+E and FFX when compared to G were $82,982/QALY, $204,952/QALY and $154,323/QALY, respectively.

The cost of treatment in Canadian dollars was $29,5650 for G, $34,100 for G+C, $46,900 for G+E and $66,000 for FFX. Life expectance was .677 years for G, .76 years for G+C, .79 years for G+E and 1.005 years for FFX.

Medicynical Note: The limited benefit and significant toxicity of the additional treatments highlight our lack of an effective intervention for this diagnosis.

2. Comparison of costs of nilotinib and imatinib in chronic myelogenous leukemia (Abstract 6572) This is a drug company sponsored comparative efficacy study and concludes that the nilotinib is a cost effective alternative to imatinib.

Medicynical Note: The drug costs cited in this study appear to be 3/4 to 1/2 that experienced in the U.S. for example $602,605 over 17.3 years= $34,832/year. In the US costs are cited as between $48,000 and $98,000/year.

3. Cost effectiveness of cetuximab bevacizumab and panitumumab in metastatic colorectal cancer in patients with KRAS (wt) tumors: This is another incremental cost effectiveness analysis sponsored by a drug company. It found that cetuximab was more cost effective than the others in addition to FOLFIRI in patients with KRAS tumors.

Medicynical note: Increment cost effective studies do not add the base costs of FOLFIRI to the analysis. It’s uncertain what the total cost per QALY is compared with other regimens but the study does affirm that cetuximab adds close to $50,000 (conversion from £30,000) to the cost of a QALY.

4. Economic impact of rituximab as maintenance therapy in untreated follicular lymphoma: This drug company sponsored study based on a Markov model found that use of rituximab was cost effective. The cost of a QALY was between $17,000 and $35,000 depending on the relative risk reduction in time to progression.

Medicynical note: I don’t trust drug company studies that do not actually measure costs or outcomes. Using a “model” affords too much room to fiddle with results. Most follicular lymphoma patient do well with watchful waiting rather than immediate therapy. It’s doubtful, in my view, that this is a cost effective intervention.

See here for more discussion of the concept and the fact that other studies of maintenance rituximab show no survival benefit.

However, there was no significant difference in overall survival among the 3 groups, and 96% of the patients are still alive in each group. Whether overall survival will be improved “is currently unclear,”


Health Care: A Moral Value, A Necessity, An Ethical Dilemma

Fine editorial by a bioethicist James Drane: 

Those opposed to any change in the present U.S. health-care system claim that it is already the best in the world, therefore why change it. In fact, an assessment of all health-care systems by the World Health Organization ranks the U.S. system at 37th in the world, right ahead of Slovenia. Five different performance standards were used to measure health systems.

And:

Although the term public welfare is not used in public discussion of health-care here in the U.S., it does belong, and it is not socialism. Public welfare, in fact, is a term found in the first sentence of the Preamble of the U.S. Constitution, ratified in 1788. “We the people of the United States, in order to form a more perfect union, establish justice, insure domestic tranquillity, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity, do ordain and establish this Constitution for the United States of America.” One purpose of government, stated in the Constitution, is to promote the general welfare. It refers to the goods that all people need to be free and to enjoy prosperity.

And concludes:

In democracies, citizens are responsible for choosing the moral values of their societies. Voters create good societies through good laws and humane policies. When a large percentage of the population lives in abject poverty, when children die unnecessarily, when elderly persons suffer in isolation, when 46 million people have no health care, the common good is not being achieved and the general welfare is not being provided.

Medicynical Note:  Our democracy’ s approach to health care has it’s grotesque aspects;

  • Political parties (and politicians) selling themselves to highest bidder, an action sanctioned by the Supreme Court
  • Sanctioning “free” ER use as an alternative to a health care access for all citizens
  • Actually, over 50 million are uninsured (and rapidly rising)
  • Health Insurers who don’t want to insure those needing health care
  • Pharmaceutical suppliers gouging the sickest and most helpless in our culture

And so on. 

Our health care non-system is already viewed with incredulity in other industrialized nations.  They are amazed that the “leading nation of the world” would tolerate such an abomination.

To Obama’s great credit he’s taken the first faltering steps in leading towards a more rational humane universal health care system.  The question is whether we’ll evolve further into an efficient coherent economical system or de-evolve into a health disaster and a dead end.

Important HIV Transmission Data: Decreased with early treatment

Substantial reduction in transmission of HIV virus with early treatment:

Men and women infected with HIV reduced the risk of transmitting the virus to their sexual partners by taking oral antiretroviral medicines when their immune systems were relatively healthy, according to findings from a large-scale clinical study sponsored by the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health.

Medicynical Note: The study was done in a population that was 97% heterosexual but it is likely the same benefit would accrue in gay couples.


ER Care, the new office visit

A friend of a friend recently had a hip replacement and during her recovery began to feel week and enervated.  She was on coumadin to prevent blood clots, iron and hydrocodone.

She became alarmed with the fatigue and called her surgeon and promptly was referred to the ER.

It turned out her problem was a early urinary infection and moderate dehydration.

Medicynical note:  Our non-system is blithely unaware of cost.  This patient’s issue did not require an ER visit.  It was a simple outpatient problem. 

But her surgeon was not prepared to care for his surgical complication even if it was minor and easily handled (and during office hours).    Instead the patient and her insurer will bear the expense of a new patient evaluation in an ER and whatever expenses that were incurred. Remember ER care is the most expensive and least efficient in our non-system, particularly for non-emergencies.

This is good ole American ingenuity at work.  Efficiency?  Value?  Not our department.  Everyone makes money.

Maybe this will change with Accountable Care Organizations?

The Real Death Tax (Reprinted from 2006)

We’ve talked in the past week about the quality and costs of care in the United States. Our patent (government sanctioned monopoly) system is part of the problem.

Big PHARMA maintains that it is essential to have exclusive patents now up to 20-25 years in length to assure profits that will allow continued research and development of new drugs. As a result of Pharma’s effective congressional lobby, pharmaceuticals are the only uncontrolled, i.e. not open to negotiation and price setting, of the health care expense areas. Hospitalization, doctor’s fees, laboratory costs are all negotiable and discounted by the various health care payers. As a result, the rate of increase of spending on pharmaceuticals far exceeds that of other areas–13% a year since 1980. More on health care costs here and here.

Patent law has been carefully crafted to maximize profits of the drug industry. During the patent protected period drug companies can and do charge whatever they wish for a product. As a result, over the past 30 years drug prices have risen exponentially to unimagined levels and the industry has enjoyed record profitability “one example is that in 2002, the combined profits for the ten drug companies in the Fortune 500 ($35.9 billion) were more than the profits for all the other 490 businesses put together ($33.7 billion).”

When I started my medical oncology practice in the 70′s the cost of anticancer drugs averaged under $100/month. By the 90′s the pricing of new drugs broached the $1000/month, and by 2005 we were in the area of $10,000/month for some new drugs. For more look here.

It’s an unfortunate fact that in cancer therapy pharmaceutical costs have become what is essentially a death tax on the desperately ill. Your give your money or your life is on the line. Consider the number of people each year facing a life threatening illness. Consider also that the cost of many of these new drugs/year exceeds the average and median incomes in the U.S.; exceeds the cost of new automobiles; and over the lifetime of a patient the cost of a single medication can exceed the cost of the home of most americans. (see previous post on imitinib) Instead of a benevolent health care system in which access to care and restoration of health are the goals, we have a system whose main purpose is to maintain the profits of the health care industrial complex. The result is wealth redistribution rather than a fair price.

Pricing of pharmaceuticals is not sustainable and is the equivalent of a market bubble that cries out for correction.

Medicynic:  This post is reprinted from 2006.  The Ryan plan is the same idea.  It formalizes a tax on whatever wealth you may have  from those with limited resources to the one of the wealthiest industries.  It’s rationing of care by wealth–the new American way? 

Drug Pricing, What Kind of Fools Are We?

That we are suckers and fools when it comes to pricing of drugs is evident from the fact that we pay much more for drugs than any other place in the world.  It make no difference  if the drug was researched and developed here or overseas, we pay more, much more.

Check our this from Bloomberg:

In the years since 2007:

The average quarterly earnings growth for drugmakers was 10 percent since the first quarter of 2007.

But there are problems with generics:

Pfizer, Merck & Co. and Bristol Myers Squibb Co. are eliminating jobs, cutting costs and shedding business units to prepare for patent expirations. In 2011, drugmakers face generic rivals to products with $34 billion in yearly sales, a figure 34 percent higher than last year. Sales at risk from patent losses will swell to $147 billion by 2015,

But, price increases have the potential to ease the pain:

Most U.S. revenue growth in the pharmaceutical industry will come from price increases after some drug costs were raised more than 10 percent, Bernstein’s Anderson wrote in an April 12 note. Pricing outside the U.S. probably declined after cost reductions were implemented last year in at least 10 European countries, he said. (Emphasis by medicynic)

Medicynical Note:  What’s impressive is the fact that health reform is already having some effect on pricing and that the industry expects the effect of the reform to be lower prices, and lower profits.  It’s about time.

Overplaying their hand — Abolish Medicare, Close down the Government, is this a game plan?

Our rightist friends giddy with power in one week propose to abolish medicare and then close down the government over piddling budget cuts.  At issue in the closedown is a few billion dollars difference between them and the Democrats.

Meanwhile they, the republicans, added 400 billion dollars/year to our deficits in tax cuts to the wealthiest citizens.

This in what was formerly the leader of the free world.

It IS about the money — drug companies increase prices at 5-10 times inflation

Amazing but true, with the economy in the dumps, unemployment remaining in the 10% range with huge numbers of people uninsured and unable to afford care our pharmaceutical industry raises prices. Their increase is not at the  rate of inflation or even near it,  but rather approaching 5-10 times that rate.  This is the “free market” runing amok.

According to MarketScan, payments for Pfizer Inc’s Lipitor rose 11.4 percent last year, compared with 5 percent annually from 2005 to 2010. That meant the cost of a daily dose of the cholesterol drug rose from $3.17 at the end of 2009 to $3.53 at the end of 2010. Lipitor, which will soon lose patent protection, had 2010 global sales of $10.7 billion.

Drugs with price rises in the mid teens included: cholesterol drug Crestor made by AstraZeneca Inc; blood-clot preventer Plavix sold by Bristol Myers Squibb Co and Sanofi-Aventis; and asthma treatment Singulair, from Merck & Co.

AstraZeneca’s antipsychotic drug Seroquel topped the list with a 16.5 percent price jump, according to MarketScan data, which is particularly telling since it comes from actual payments by insurers, rather than manufacturer list prices.

Medicynical Note:  If the drugs are effective the companies are saying pay us or die.  If these drugs are marginally effective or no better than generics (true of some of the drugs) we are experiencing a scam powered by advertising and collusion with suppliers and providers.

Drug manufacturers claim they need the increases to “develop” new drugs.  In reality they spend more on advertising and marketing than research and have higher profits and profit margins than the great majority of Fortune 500 firms.  Raising prices is gilding their lily.  Efficiency and value, not their department.