Monday, 13 July 2009

USA - Hospitals to Contribute US$155 billion to Healthcare Reform

Three major hospital associations have agreed to contribute US$155 billion over ten years to the healthcare reform, it was announced on 8th July 2009.

Vice President Joe Biden did not provide specific details, but said the savings would come from delivery system reforms and trimming the annual inflationary adjustments to hospital reimbursement payments from two government health programmes.


It is expected that around US$100 billion will come from lower Medicare and Medicaid payments to hospitals, while a further US$40 billion will be saved by reducing the subsidies paid to hospitals to care for the uninsured.

The three hospital associations participating in the deal are the American Hospital Association, the Hospital Corporation of America and the Catholic Health Association of the United States.

The deal is similar to the agreement made with the pharmaceutical industry in June 2009, under which drug companies agreed to contribute US$80 billion over ten years towards the costs of the healthcare reform. However, both deals are contingent on the healthcare reform legislation being passed.

Further reading - An in-depth review of the US medical device market, including some background information on the healthcare system, is available from Espicom: The Medical Device Market: USA (published March 2009)

Friday, 3 July 2009

UK - Brown Promises New Rights for NHS Patients

Prime Minister Gordon Brown promised new rights for NHS patients in June 2009, under the draft legislative programme, Building Britain’s Future, which includes many other public reforms.

In a statement to the Commons, Mr Brown pledged that NHS patients would have “enforceable rights to high standards of care” including hospital treatment within 18 weeks, access to a cancer specialist within two weeks, and free health checks on the NHS for people aged 40-74. Mr Brown also said they would look into the possibility of new rights regarding NHS dentistry, extended access to GPs, individual health budgets for patients with long-term illnesses and the right to choose to die at home.

Mr Brown also pledged that Health Secretary Andy Burnham would bring forward proposals to strengthen the NHS’ focus on disease prevention and early intervention, to extend patient choice, and to reform early years and maternity services.

In addition, Mr Brown said ministers would consult on “far-reaching proposals for how we need to modernise our health and social care systems so that our country can meet the challenge of an ageing society”.

However, the British Medical Association claims the changes will have little impact, with the “vast majority” of patients referred to a cancer specialist already seeing one within two weeks and claiming that “further improvements will depend on an expansion in numbers of consultants”.

Further reading - An in-depth analysis of the UK medical device market, including some background information on the healthcare system and health policies, is available from Espicom: The Medical Device Market: United Kingdom (published March 2009)

UK - Cervical Cancer Screening Age Will Not Be Lowered

The Department of Health will not lower the age for cervical cancer screening, following a review by the independent Advisory Committee on Cervical Screening (ACCS) in June 2009. The ACCS cited evidence that shows earlier screening can lead to more harm than good, with too many false positives and an increase in the risk of premature births in some women.

However, at the British Medical Association’s annual conference on 2nd July 2009, doctors voted three to one that women should be screened from the age of 20.

Cervical cancer screening takes place from the age of 20 in Scotland, Wales and Northern Ireland, but was raised to 25 in England in 2003.

It was also noted that the number of women attending smear tests has fallen by 10 per cent over the past 10 years, and the poorest attendees - around 72 per cent - are those in the younger age group.

However, part of the review by the ACCS also recommended expanding work to increase screening uptake in women aged 25 to 34.

Further reading - An in-depth analysis of the UK Medical Device Market, including some background information on health policies and cancer statistics, is available from Espicom: The Medical Device Market: United Kingdom (published March 2009)

UK - Elderly Cancer Deaths on the Rise

Around 15,000 cancer patients aged 75 years and over may be dying unnecessarily every year in the UK, according to research from the North West Cancer Intelligence Unit. The findings show that the number of under-75 year olds dying from cancer has fallen, but that little progress has been made in the over 75 years category. Every year 75,000 people aged over 75 years die of cancer.

The researchers blamed the findings on delays in diagnosis and poor treatment. According to the lead researcher, Dr Tony Moran, elderly cancer patients are not benefiting from cancer care improvements made in the past 10 years. He stated that if the UK was performing as well as Western Europe in the 75-84 year olds age group, and as well as the US in the over 85 year old group, there would be 15,000 fewer cancer deaths in the elderly each year.

The study also showed that UK cancer deaths in people aged over 85 years increased by two per cent in eight years, while in Europe they fell by 16 per cent.

Further reading - An in-depth analysis of the UK Medical Device Market, including some background information on UK cancer statistics, is available from Espicom: The Medical Device Market: United Kingdom (published March 2009)

Wednesday, 24 June 2009

UK - NHS Dentists to Be Paid According to Number of Patients

There will be a shift in NHS dentistry to focus on preventative care, following an independent review into NHS dental services in England, published in June 2009. The review, led by Professor Jimmy Steele, made recommendations that dentists be paid according to the number of patients on their books and the quality of care they provide, rather than the amount of treatment carried out.

The review recommends that a “significant chunk” of dentists’ income should be linked to the number of patients registered with them, and this could amount to as much as 50%. The report also recommends that dentists have greater accountability, and should be penalised for faulty work and required to carry out necessary procedures to correct it at no extra cost to the NHS. Dentists should also focus on ensuring patients understand the importance of oral health and diet, as dentistry has become too preoccupied with treatment rather than prevention, according to the review.

The proposed changes see a return to patient registration, which was scrapped in the widely-criticised dental reforms of 2006. It is estimated that a million fewer patients have access to an NHS dentist in England than before the reform came into force three years ago.

The review also proposes a new system of patient charges, replacing the current three-band system with one of between five and 12 bands. This will relate payments more closely to the amount of work being done, as currently it costs the same amount to have one filling, as it does to have ten.

Health Secretary Andy Burnham has accepted all of the recommendations “in principle” and pilot trials of the new system will begin in the autumn.

Further reading - An in-depth review of the UK medical device market, including some background information on dentistry, is available from Espicom: The Medical Device Market: United Kingdom (published March 2009)

Wednesday, 17 June 2009

USA - Public Health Insurance Bill Unveiled, June 2009

President Obama has indicated that he views major reform of the US healthcare system as a priority, arguing in February 2009 that it ‘…cannot wait, it must not wait, and it will not wait another year’. Details are slow in emerging, although a number of basic principles have been laid down:

  • Reduce long-term growth of health care costs for businesses and government
  • Protect families from bankruptcy or debt because of health care costs
  • Guarantee choice of doctors and health plans
  • Invest in prevention and wellness
  • Improve patient safety and quality of care
  • Assure affordable, quality health coverage for all Americans
  • Maintain coverage when you change or lose your job
  • End barriers to coverage for people with pre-existing medical conditions

Reducing the number of uninsured Americans is a key, and contentious, component of this. One element became a little clearer in June 2009, with the introduction into the House of Bill H.R. 2668, the Choice in Health Options Insures Care for Everyone (CHOICE) Act. This is being sponsored by Chris Murphy (D-Conn.), and co-sponsored by Peter Welch (D-Vermont) and Bruce Braley (D-Iowa).

The bill would create a Federal public health insurance plan for the first time in the USA. It would not be compulsory, but would compete with private health plans for members. It was introduced in the House on June 2nd 2009 and referred to the House Committee on Energy and Commerce, which has jurisdiction over healthcare legislation, and also the House Ways and Means Committee. It will probably form part of a wider health reform plan currently being prepared in Congress by the Democrats.

The proposed public plan (the American Trust Health Plan) would be operated by the DHHS and would be self-financing. Anyone eligible to purchase private health insurance would be able to enroll. All healthcare providers providing services under Medicare would be required to participate. Premiums would be set by the DHHS. Regional variations in premiums will be allowed, as will other variations in accordance with existing norms.

The bill’s sponsors hope that the public plan will give private providers an incentive to reduce costs and make health insurance more affordable. Critics see it as a first step on the road to a compulsory public system, similar to that proposed by President Clinton in 1993. That effort failed as a result of a concerted lobbying effort by the healthcare industry. The current bill may face a more benign Congress, but pressure from the private insurance industry and its allies is sure to be strong, and will test the resolve of Democrats to present a united front.

Further reading - An in-depth review of the US medical device market, including some background information on the healthcare system, is available from Espicom: The Medical Device Market: USA (published March 2009)

UK - The NHS Faces £15 billion Budget Shortfall

The UK’s National Health Service (NHS) is facing a cut in funding of up to £15 billion from 2011, as a result of the economic recession and rising healthcare costs. According to the report from the NHS Confederation, released in June 2009, funding could fall by 2.5 to 3.0 per cent per annum from 2011/12, which is equivalent to a cut of between £8 to 10 billion over three years and up to £15 billion over five years.

The report, Dealing with the downturn: the greatest ever leadership challenge for the NHS?, outlines that demand is expected to continue to increase “from long-term trends in ageing, increasing disease burden from improved survival and rising fertility”, in addition to “the negative health effects of recession in areas such as mental health and alcohol use”.

There was a period of huge growth in health spending under the Labour government, which saw the NHS budget almost triple. In 2009, the NHS budget is £98.2 billion, and will rise to £102.3 billion in 2010. However, despite the surplus of around £1.35 billion in the financial year 2008/09, NHS finances will deteriorate considerably after the comprehensive spending review in 2011.

The Health Secretary, Andy Burnham, asserted that concerns over closures and job cuts were “completely premature” and claimed that focusing on prevention through promoting healthier lifestyle choices would lessen the pressure on the NHS. He also claimed that core targets, such as waiting time guarantees, would remain in place as minimum standards.

Unions, such as Unison and the British Medical Association (BMA), are concerned the cuts could lead to increased use of private healthcare providers to meet the growing demands placed on healthcare services.

Further reading - An in-depth review of the UK medical device market, which includes some background information on the healthcare system and the NHS, is available from Espicom: The Medical Device Market: United Kingdom (published March 2009)