Critical Directions Being Set for China’s Health Care

Beijing, China — This is a very active time for setting directions in China’s health care development. A number of official government pronouncements have focused on key health care issues, and taken together, they seem to signal a renewed determination to build on the current system of state-sponsored health care as well as remain open to new private endeavors. For example, two weeks ago China’s State Council announced a new 5 year plan to develop the country’s public health system. And last week the government established a medical insurance research agency, which will serve as a “think tank” for the development of the country’s medical services. There are also repeated calls for private efforts to help solve some of China’s pressing health challenges. The intent, according to Vice-Health Minister Chen Xiaohong, is “to set up a government-led market system of health care, in which both government and private sector entities work together to provide better service.”

A unique opportunity is forming here for dialogue that will have an impact on China’s health care system for a long time to come. Those in private sector health care who have something to offer should come to the table now and begin to engage China’s thinkers and policy makers. A serious effort is afoot, laying the groundwork for equally serious outcomes.

Of Mice and Machines

Narita Airport, Japan — Just flying through on the way to Beijing for a week. Scanning the papers here, the big health story is about mice with Alzheimer’s disease. Apparently Japanese scientists with the National Institute of Longevity Sciences in Aichi Prefecture have met with some success in developing an oral vaccine that helped mice genetically modified to develop Alzheimer’s recover functions close to previous levels. Scientists are now preparing for a small-scale clinical trial with humans possibly this year. Seems they are on an expedited time line with this research.

Other aspects of Japan’s medical industry are not always as fast. Tucked away in the business briefs was a report by the U.S. International Trade Commission complaining that about the time it takes for Japan authorities to approved American medical devices for the Japanese market. The U.S. says it takes up to 3 years to get approvals for devices that have 18 month life cycles. Essentially the devices are outdated by the time they’re allowed on the market. The complaint is part of a long-standing call for improvements in Japan’s approval process.

And finally a controversy is still simmering over remarks by a member of Japan’s scandal-prone government. Prime Minister Shinzo Abe’s health minister, Hakuo Yanagisawa, outraged many in the country by calling women “baby-giving machines” in a speech made in January on the country’s low birth rate.

Pretty lively here in the land of the Rising Sun.

Health Care Growing as Campaign Issue

The Kaiser Family Foundation has issued a new series of tracking polls to measure the salience of health care as an issue in the presidential campaign. While Iraq continues to top the list of public issues (44%), health care is now second on the list (29%) as one of the important problems government needs to address.

And health care may be increasing in importance as it starts to rise from its former tied position with the economy (13%) in the public mind. Half those polled (52%) want to see the candidates proposing major new health reform in their campaigns. Despite this public call for more action, many people (45%) can’t name a candidate, or say there is no candidate (21%), who is placing placing a big emphasis on health care. One in five do name Hillary Clinton. So the American public wants a reform plan — at least for now — but none seems to have hit the radar screen yet.

Remember this poll was taken before March 13th, so we have yet to see if an “Elizabeth Effect” will stimulate more public awareness of health care issues.

The Not So Invincibles

In New York magazine, David Amsden chronicles the plight of New York’s young uninsured (The Young Invincibles). Conducting over 50 interviews with friends, and friends of friends, he tries to get at how being uninsured has affected their lives. He writes, that “If there was a dominant theme to these conversations, it was that being uninsured has a distinct way of tweaking one’s perception of the city: New York becomes a kind of phobia-forming obstacle course, one navigated with the goal of keeping doctors at bay.” Many follow elaborately obsessive routines to avoid even minor risks of injury or illness.

But the writer comes to find out that keeping the doctors at bay is not an easy job. He learns that “even the youngest, healthiest, most resilient bodies can malfunction in mysterious ways. One morning you wake up with a minor stomachache, and before you know it, you’re in the hospital, delirious with pain, waiting to see the doctor. “

Amsden discovers something else about being uninsured. It’s not only the cost of care that’s worrisome; you are also afraid that the care you do get will be substandard because you don’t have insurance.

So some friends resort to unusual ruses. One admits, for example, to carrying an expired Blue Cross card in his wallet. “You never know, maybe they’ll think I have insurance and I’ll get better care.”

But being uninsured in New York is not without its ironies. One friend said “I would never live without my cell phone, but I won’t consider buying health insurance. It sounds ridiculous to say that out loud, but the fact is insurance is just too expensive. If it was the same price as my phone I’d buy it in a second.”

Illness, Image and Politics

Salon’s Walter Shapiro writes:

“Presidential races are often about more than control of the levers of power and the policy direction of the nation. Prior campaigns forced the nation to confront questions about religion, divorce and career-minded first ladies. This time around, especially for the Democrats, everything is on the table: race (Barack Obama), gender (Hillary Clinton), Hispanic heritage (Bill Richardson) and now cancer (the Edwardses).”

For John and Elizabeth Edwards, cancer (and by extension, health care) is much more than an “issue” to be twisted and spun for political convenience. They are now in the clutches of something deep and extremely personal. And how could it be otherwise? As I’ve said before, serious illness can sometimes be a transforming experience. And from what we’ve seen, I suspect they’ve already crossed an important emotional bridge in their decision to open up their private struggle to the rest of us.

So what of the campaign? Their affliction may well impact every aspect of their presidential bid. We are now hearing about the profound “Elizabeth Effect” on Edwards’ campaign and how he it being perceived. Will the campaign attempt to “manage” that perception? In presidential politics–how could it be otherwise? Campaigns are often about the skillful manipulation of people’s attachments to images and stories. Even if the Edwardses are not complicit in this image-manipulation, their surrogates and others will be on their behalf.

It will be a serious challenge to see the truth of their battle with cancer through the distorted lens of a presidential race. But this truth will do more to advance health care reform in America than any speech or policy platform ever could.

Health Care Polls and Misleading Headlines

A poll was released on the feelings of consumers about the privacy of their health care information. The headline on the AHIP Smartbrief (Free Subscription) warned “Poll: Many concerned about health record privacy”. A click on that headline took you to a Health Data Management website“Survey: Medical Data Privacy a Concern”. The Health Data Management article referenced the originating Harris poll. Yet when you looked at that report you wondered whether you were reading the same story. That head read — “Many Adults are Satisfied with the Use of Their Personal Health Information.” The same poll was the subject of all three mentions.

So the media comes to a news source with their own narrative in mind, and builds the story off of that. As the saying goes, “show me the assumptions on which you base your facts.”

But shouldn’t we have a slightly higher expectations when it comes to specialized health news in what we euphemistically call the “professional press”? While you should expect some hawking of special interests or products, these articles were just too misleading to go without mention. That’s because many readers will only digest the headlines to form an opinion (or simply reinforce their bias) and quickly move on.

So I quote from the Harris poll report itself and you make the judgment which headline reflects the real content.

  • Seven in 10 (70%) U.S. adults agree that they are generally satisfied with the way doctors and hospitals handle personal health information in terms of protecting its confidentiality and security. One in five (20%) strongly agree with this, 50 percent somewhat agree and another 19 percent disagree. The remaining 11 percent are not sure;
  • By 63 to 25 percent, a majority agrees that increased use of computers to record and share patient medical records can be accomplished without jeopardizing proper patient privacy rights. One quarter (23%) strongly agrees with this;
  • A majority (60% to 27%) feels that existing federal and state health privacy protection laws provide a reasonable level of privacy for their health information;
  • A similar 63 to 27 percent of U.S. adults also agrees that they would consent to have their medical records used for medical research as long as there were guarantees that no personally-identifying information would be released.

Based on these attitudes, it would seem that about six to seven in 10 adults seem to be fairly comfortable with the use of their personal health information today. However, about one quarter of adults do have significant concerns.

Glitch Raises Questions about Number of U.S. Uninsured

Reports are out indicating that, for the past 12 years, the numbers of uninsured coming from the U.S. Census Bureau have been wrong. Not by much, mind you, but still wrong. Revised estimates reported 44.8 million people were uninsured in 2005 rather than 46.6.

The Bureau says the impact is small and historical trends remain unchanged. Yet Representative Carolyn Maloney, who serves on the House subcommittee that oversees the Census Bureau, says, “For an agency that specializes in statistics, 1.8 million is not a minor error. It’s a major error.” But why the surprise? The U.S. Government Accountability Office warned about the quality of Bureau data back in 2004.

Sure, it was a computer glitch. A “minor hitch or technical problem.” And it was a relatively small glitch at that. But as this incident shows, small glitches can make for big problems. With health care being front and center in Washington this year — especially on the plight of the uninsured — trust in the numbers becomes a critical factor in combating the “politics of denial” that often hinder real debate. It will be important that the Bureau repair its image through an open dialogue on its problems. More important, however, Congress must take its head out of the sand and restore public confidence in the Bureau through more effective oversight.

Globalizing Local Health Care

The Economist reported last week (subscription required) that the U.S.’s soaring health care costs are driving aging boomers to use cheaper foreign private hospitals in Thailand, Singapore and India. One estimate has it that some 150,000 Americans had their non-emergency surgeries done abroad last year at a fraction of the cost. That number is predicted to doubled this year.

Many of these patients are wealthy and pay their own way. But the new twist is that Asian hospitals are now starting to court U.S. insurers and employers who are looking to cut health care costs.

What we are seeing here is an emerging new front in the global flattening of health care. The head of one Bangkok hospital thinks it will only be a year or two until American insurers routinely offer lower premiums if patients are willing to travel to an accredited foreign hospital for their surgery. He may be overly optimistic, but the fact is these hospitals fully intend to expand their patient base from the few who are rich to the many who are middle class by turning on the health insurance financial faucet.

A recent study in Health Affairs (alas, subscription also required) foreshadows these increases in non-emergency surgeries abroad. But the authors indicate that it will take major financial incentives to overcome the strong bias for local health care that most consumers seem to have.

The old saying that all health care is local may still ring true. Yet competition in health care is spreading its reach wider and wider. If medical centers of excellence, for example, can compete on regional and national levels why not international as well? The argument will be that if the quality measures are comparable or better, why should local restrictions get in the way of consumers getting equivalent care at a much better price? Who knows, maybe the impact of this growing Asian competition will stir up U.S. providers to a new dynamic level of service and quality. Time will tell.

Pin-the-Tail on the Donkey Financing

Washington, D.C. — The AHIP National Policy Forum ended today with some heavy-weight policy folks pushing more talk on “transparency” and “value” — two words that come up in almost every conversation on health care these days. And that’s another word that seems to be making the rounds. We appear to be having “conversations” on everything in health care lately. Not arguments, fights, or debates, but “conversations.” I think its the new code for “let’s stay calm and civil.” Of course at times it does drip with a little sarcasm.

That said, one gets the sense of strange bedfellows coming together to take advantage of the public and congressional mood for action on health care reform. Many stakeholders have found a common language in the value/transparency oeuvre and are hooking their wish lists to it. All feel strongly that the time is now to get the political wheels in motion. For example,

  • Take Congressional action on SCHIP to cover more uninsured kids
  • Support the emerging universal coverage experiments in states like Massachusetts and California
  • Make health care a priority focus of the upcoming presidential election
  • Build consensus for the big decisions to come in 2009 with a new president and congress

Now a few sound bytes from today’s sessions:

“Some states spend more SCHIP money on adults while children go uncovered!”

(Orrin G. Hatch, Second Ranking Minority Member, Finance Committee, The United States Senate on the debate on who’s being covered with SCHIP monies.)

“There is not a consensus in Congress on how to do this.”

(Hatch on how to help the working poor pay for health insurance.)

“We have to make sure we get it right– the right care, at the right time, for the right patient.”

(Carolyn M. Clancy, Director, Agency for Healthcare Research and Quality, U.S. Department of Health and Human Services)

“Good (health care) information has to be impossible to avoid.”

(Clancy on the need for consumers to have good information on quality care.)

“‘Technology is rarely always effective or never effective.”

(Gail R. Wilensky, Senior Fellow, Project HOPE on the difficulty of assessing new medical technology.)

“Medicare –20 years of getting it exactly wrong. Same reimbursement for best in class and worst in class.”

(Wilensky on how Medicare reimbursements to physicians do not promote quality.)

“That’s pin-the-tail on the donkey financing.”

(Uwe E. Reinhardt, Professor of Economics and Public Affairs, Princeton University on government imposing unfunded health care mandates on hospitals.)

Leaving No Ox Un-Gored

Washington,. D.C. — Thought I would share some sound bytes from today’s speakers at the AHIP (America’s Health Insurance Plans) National Policy Forum

“I believe we are on the verge of better health and lower costs for all Americans.”

(Michael O. Leavitt, Secretary, U.S. Department of Health and Human Service, in praise of Bush’s value-driven health care initiative.)

“I don’t know.”

(Leavitt when asked how the implementation of the National Provider Identifier was going.)

“What can you do? You got to find the sweet spot as an agent of change without turning off the status quo.

(Amy Walter, Senior Editor of The Cook Political Report, on how Republican candidates are approaching the upcoming elections.)

“McCain an outsider? Can’t shake that Washington smell after eight years in the Senate.”

(Walter on McCain’s presidential campaign)

“The ideologues want to see it fail.”

(Jon M. Kingsdale, Executive Director, The Commonwealth of Massachusetts Health Connector Authority on Massachusetts’ plan for universal coverage.)

“Pimp my ride health care reform”

(Cindy Inez, Director California’s Department of Managed Heath Care referring to reform that has no substance)

“Arnold’s ‘leave no ox un-gored’ approach”

(Inez on everyone having to contribute to funding health care)

“Why these programs? If you’re looking to reduce costs, you should look at where the costs are.”

(Peter R. Orszag, Director, Congressional Budget Office when asked why he is eying cost reductions in Medicare and Medicaid)

“We don’t know yet what will bend that curve.”

(Orszag, on containing future increasing costs of Medicare and Medicaid)

“Costs are unsustainable and have reached a tipping point.”

(John J. Castellani, President, Business Roundtable on health care costs)

“A Republican and a Democrat walk into a bar to talk about health care. This should not sound like a joke.”

(William D. Novelli, Chief Executive Officer, AARP on working with all political stakeholders for health care reform)

“Each group brings its top priority (on health care) to the table .. everybody’s second favorite choice is the status quo.”

(Ron Pollack, Executive Director, Families USA paraphrasing Stuart Altman on why health care reform typically goes nowhere.)

“There’s probably an inverse relationship between being a front runner (in the presidential campaign) and the specificity of their plans (for health care).”

(Pollack on the political risks for presidential candidates being too specific before stakeholders buy in)

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