Life Sciences Role in Delivering Value-based Care

Demonstrate Value

"Demonstrate value" is a familiar request for anyone working in the life sciences industry. Historically new treatments have been evaluated in terms of how safe and efficacious they are compared to the standard of care. With the many changes in the healthcare industry, and expedited through healthcare reform efforts, there is a focus on enhancing patient outcomes and decreasing healthcare costs. The industry is struggling to provide adequate solutions.

A recent study by the management consulting firm Oliver Wyman surveyed 200 physicians in value-based delivery models such as accountable care organizations (ACOs). The goal of the study is to understand physician attitudes toward the role life sciences companies have in helping value-based healthcare providers deliver better care at a lower cost. The results found that…

• 61% of respondents said they agreed or strongly agreed that there is a role for branded drug therapies in reducing the overall cost of patient care when used appropriately
• Only 37% agreed or strongly agreed with the statement, “Pharmaceutical companies have the capabilities to reduce the total cost of care and improve patient outcomes.”

Life sciences companies are struggling to understand their role and how to enhance patient outcomes and reduce costs.

Telehealth solutions are customized based on the patient’s health condition to gather patient vital signs and health symptom interview data. This information can be used to demonstrate the value a treatment has on patient outcomes and in reducing healthcare costs. We recently published a white paper on telehealth solutions, and the benefits life science companies can expect from telehealth solutions.

Download the white paper

As a part of the Oliver Wyman study senior executives from ACOs were interviewed. There was a quote from a former CEO of a Medicare Advantage ACO and he said, “Drugs can cost more, but they have to prove real value to the patient in order for payers to agree to pay more.”

Now is the time to act—bold thinking and brave leadership is needed. The need to demonstrate value is not going to fade away, rather it will intensify. Additionally, there are many tools and solutions available to provide payers and healthcare providers with evidence that a treatment positively impacts patient outcomes and decreases healthcare costs.

Insights into Slowdown in Healthcare Spending

I have an insatiable personal and professional interest in the transformation of healthcare delivery and its impact on our economy and citizens. At the heart of the Affordable Care Act (ACA) are payment reforms that will drive a transformation in how healthcare is delivered. Additionally, rising healthcare costs have immediate effects on the economy as they take a larger proportion of workers’ wages. Recently, economists estimated that growth in healthcare costs would slow due to the recession and the slow recovery. However, healthcare costs have slowed more than estimated raising questions as to the reasons why.

The Kaiser Family Foundation conducted a study to understand how the recession contributed to the slowdown in healthcare spending, and what other factors contributed to the slowdown as well. The study found…

• 77% of the cost slowdown is due to the recession 
• The remaining nearly 23% is due to…
• Continuing changes in the way healthcare is delivered
• Rising levels of patient cost-sharing in private insurance plans that discourage patients from using healthcare services

To further understand the changes in the way healthcare is delivered, Annie Lowrey, of The New York Times published an interview with Drew Altman, president of the Kaiser Family Foundation. Mr. Altman described the nearly 25% reduction in healthcare spending as “the whole ballgame” in holding down costs in the future. He went on to say, “It’s more than just ACA reforms, it’s just the beginning. But in the long run, those are the most important ones, because they have the force of Medicare and national policy behind them.” That’s a powerful and insightful statement, and one I think most early innovators in transforming healthcare delivery share.

As the Kaiser Family Foundation study point out, changes in healthcare delivery are contributing to the decrease in healthcare spending. Accountable care organizations (ACOs) have been forming rapidly and I’m very interested in insights into how they are performing. On Tuesday, April 23, The New York Times published an article on how Advocate Health Care, based in Oak Brook, Illinois, has established an ACO with Blue Cross and Blue Shield of Illinois. The article provides an overview of how they are taking steps to control costs and improve quality.

Under the agreement, Advocate Health Care has seen…

• Hospital admissions drop by 6%
• Days spent in the hospital are down 9%
• The average length of stay has declined, and many other measures show they are providing less care

I hope you find these resources helpful and insightful. I’d love to hear your thoughts on the Kaiser Family Foundation study and articles on Advocate Health Care’s ACO. Please share other resources you’ve run across on transforming healthcare delivery.

Why Now?

Carolyn Buck Luce Shares Thoughts on the Future of Telehealthcare

Carolyn Buck Luce

Carolyn Buck Luce, Managing Director at Imaginal Labs, shared her thoughts on the future of telehealthcare in a recent blog post. Carolyn presented at the Telehealthcare Leaders Forum, held April 17 and 18, 2013, in Newport, Rhode Island, and shared insights on how innovation can address dramatic changes in the healthcare system.

Carolyn’s blog post is insightful and reminds us that disruptive innovations are driven by unmet needs. Several key themes resonated for me as I read Carolyn’s blog post…

• Now is the time to act
•  Healthcare reform efforts by Medicare and Medicaid are fueling changes in how healthcare is delivered and emphasizing the need to improve patient outcomes and decrease costs
• Patients want a more active role in managing their health
• Healthcare providers and payers are incentivized to deliver better care and decrease costs
• Now is the time to innovate
• New technologies and tools are available to deliver health care more efficiently and less expensively
• New business models and strategies are being considered—players across the healthcare industry from providers, health systems, payers, home care agencies, and life sciences companies recognize the need to do business differently and put patients and their outcomes at the center of their business

I’d love to hear your thoughts on Carolyn’s post. Specifically, how are you and your organization using disruptive innovations and technology to enhance patient outcomes and decrease costs?

New Products: Tunstall Vi, Cellular PERS, Tunstall iVi Fall Detection Pendant

New Telehealthcare Products

Tunstall Americas released three new products that improve patient care and enhance outcomes. "These exciting products underscore the value of our telehealthcare specialization and our commitment to innovation," said Brad Waugh, President and CEO, Tunstall Americas. "Capabilities like the Tunstall Vi's second button that support non-emergency services and enhance patient care is a great example of the power of our Integrated Engagement Platform."

These solutions expand on Tunstall's proven telecare/PERS systems, and will be on display at the American Telemedicine Association meeting in Austin, Texas, May 5-7, 2013.

• Tunstall Vi telecare/PERS unit is sleek in design with an attractive non-clinical look and features a 2^nd button that can be customized for non-emergency needs such as nurse triage, medication refills, or appointments. The base console supports push-button and intelligent fall detection pendants. It is compatible with land line, cable, and VoIP phone services and is FDA listed and UL approved. 
  
• Tunstall CEL450, home based cellular PERS, brings safety into homes without traditional telephone or internet phone service. This FDA listed, UL approved system provides families with more choices in home health monitoring solutions.
  
• Tunstall iVi Fall Detection Pendant automatically detects falls. The monitoring center is alerted when a fall is detected. Receiving assistance quickly after a fall ensures better outcomes for patients. The iVi Fall Detection Pendant is compatible with the Tunstall Vi and CEL450 units.

These exciting additions to Tunstall's Integrated Engagement Platform improve care management, decrease costs, and help provide better outcomes. "Tunstall is unique in our depth of experience and dedication to remote patient monitoring, particularly Personal Emergency Response," said Kevin Doyle, Telecare/PERS Solutions Manager. "Since we design and manufacture our own equipment and have over 30 years' experience in emergency contact center services, healthcare entities increasingly view Tunstall as the best long-term partner."