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Summer/Fall 2006 E-Update
Healthcare’s Tripartite and the Will to
The best example of an imbalance is the case against HMOs in which providers were paid (capitated) to ration care as a means to control overall health care costs. In order for providers and purchasers to win, care had to be restricted . Medical costs were contained; however, patients became the losers when needed care was withheld in the name of cost control. This imbalance spurred the Patients Bill of Rights, which led to the demise of capitated HMOs as a cost containment tool.
If you use this tripartite balancing test against pay-for-performance programs that only reward providers, it is apparent that we run the risk of recreating the imbalance that caused the demise of HMOs. In our examination of other cost containment strategies such as consumer-driven health care or disease management, the conclusions predict something less than success.
Unlike any other cost containment solution, what makes the MedEncentive Program work is the fact that it achieves the perfect balance between patients, doctors and purchasers. In the Program, purchasers compensate doctors and patients for each encounter in which they voluntarily access MedEncentive’s web-based applications to declare adherence to evidence-based care and then confirm the other’s declaration. This “declare and confirm” feature adds the key incentive that forms a delicate balance between the patient and the doctor. In the process, information therapy is prescribed by the doctor to the patient so the patient can learn how to better self-manage his or her health. Thus, patients win and doctors win.
So, what about the purchaser? Multiple studies have established that evidence-based medicine (EBM) and information therapy (Ix) improve clinical outcomes and lower costs. Based on these studies and the economics, we knew that if the purchaser invested strategically in financial rewards to doctors and patients to interactively adopt EBM and Ix, there was more than ample opportunity for the purchaser to realize a substantial return on this investment.
On Sept. 25th, the study entitled: Pay-for-Performance Success Using Doctor-Patient Interactive Rewards was released. It proves the concept works. Now the proposition is simple: If a health care purchaser wants a proven method to control health care costs that simultaneously makes employees/subscribers healthier and happier, then they need to simply bolt-on MedEncentive.
In the two years since we launched our solution, we learned great lessons about how to balance healthcare’s tripartite in a simple and effective manner. And now we can share the secret with others. It’s all about a common sense approach and having the will to win…win…win…Do you have the will?
Encentive's Duncan Study is Released at Annual Ix Conference
MedEncentive’s Duncan Study is Released at Annual Ix Conference - On Sept. 25, at the 5th Annual Information Therapy Conference in Park City, Utah, we released the Duncan study entitled: Pay-for-Performance Success Using Doctor-Patient Interactive Rewards. You may access the study and the press release announcement through the links provided in this e-Update or through our website at http://www.medencentive.com/. Jeff Greene presented the study at the conference. The response has been very favorable. Matthew Holt of The Health Care Blog was in attendance and wrote the attached article.
Duncan’s Second Year Better than the First - The final version of the study contains a Postscript that describes how the City of Duncan installation has progressed in its second year. A number of enhancements described in this e-Update were implemented, as were adjustments in the patient and doctor reward structures. The bottom-line, through ten months of year two, doctor and patient participation levels are significantly higher and non-catastrophic costs are significantly lower than the first year, further confirming the study’s findings.
City of Yukon Adopts MedEncentive – In September, the City of Yukon, Oklahoma signed an agreement to adopt the MedEncentive Program. The current implementation date is set for Nov. 1, 2006. During the presentation to the City Council, one council member kept repeating the cost-benefit analysis and concluded that the Council’s decision was a “no-brainer.” Jim Dempster concurred by noting this is the case for all employers.
Healthwise and MedEncentive Announce Relationship – Healthwise, Inc. and MedEncentive have partnered to provide patients with information therapy (Ix®) as part of their health care. Healthwise has been helping people make better health decisions since 1975. Nearly 75 million times a year, people turn to Healthwise information for help in making health decisions. Healthwise works with hospitals, employers, clinics, and health plans to provide decision-support and self-management information to the people they serve. Healthwise coined the term information therapy (Ix). Like MedEncentive, Healthwise is leading a major change in health care to prescribe information therapy to patients as part of every health care encounter.
“Healthwise is excited about the MedEncentive approach,” said Don Kemper, Healthwise founder and CEO. “Nowhere have I seen a more powerful alignment of patient and physician incentives than in the MedEncentive plan. This system demonstrates the true power of information therapy.”
Wichita Clinic and MedEncentive Sign a Letter of Intent – In September, the Wichita Clinic and MedEncentive signed a letter of intent to execute a provider license agreement. We anticipate executing the license agreement in October for the purpose of jointly developing the Wichita market.
MedEncentive Proposes to the Commonwealth of Virginia – In August, we met with the Virginia’s Secretary of Technology, Aneesh Chopra, and other state officials about conducting a demonstration project in the Commonwealth. A proposal was submitted in September. We are currently in the process of refining this proposal with assistance of state officials.
As a result of Dr. Bachelder’s interest in our Program, we will be return to Columbus to make a presentation to the Ohio Medicaid agency.
Patient First Champions - To recognize excellence in the practice of the MedEncentive Program, we designated 29 physicians as the initial "Physician First Champions." Each physician received a certificate that read; "For demonstrating a commitment to Evidence-based Medicine and Information Therapy in the care of patients." These physicians will also be highlighted in our provider directory. The response to this honor by the recipients was very gratifying.
News Articles, Press Releases and Broadcasts – There have been a number of news articles, press releases and broadcast over the last few months that indicate a growing interest in MedEncentive. These include:
Growing Interest in the Market – In order to provide physicians some advance notice of employers and insurers’ interested in adopting the program, we have asked prospective customers to execute letters of intent and/or confidentiality agreements. The number of parties that have executed these types of agreements is growing and include several noteworthy employers such as Dollar-Thrifty Automotive Group of Tulsa and the Oklahoma Blood Institute. We also executed a non-disclosure agreement with Revolution Health of Washington D.C.
• Drs. Susan Chambers and David Parke, MedEncentive co-founders
• Greg Main, Tom Francis, Daniel Mercer, and company with i2E
• Mike Joseph, Mike LaBrie, Bill Hall, Jennifer Wheeler and company with McAfee and Taft law firm
• Dick Rush and company with the Oklahoma State Chamber of Commerce
• Chuck Rahill with Wedel Rahill and Associations
• Renzi Stone and company with Saxum Strategic Communications
• Cindy Mitas, Business Development Marketing Director, Francis Tuttle
• Lloyd Hildebrand, M.D., special advisor and Chief Medical Officer
• Ken Schuerman, special advisor
• Stan Hupfeld, CEO and Chairman, INTEGRIS Health
• Mike Anderson, PhD, President, Presbyterian Health Foundation
• Steve Prescott, M.D., President, Oklahoma Medical Research Foundation
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