Doctors, Drug Executives Say Reform Won't Cure Health Care's Ills
October 07 2009 - 10:49AM
Dow Jones News
An ailing U.S. health-care system might improve if U.S. reform
legislation passes, but few health-industry executives and doctors
gathered at a medical innovation conference believe it will be a
lasting cure.
Many attendees at the Cleveland Clinic's annual summit agreed
that the latest reform proposals would help expand health-insurance
coverage. But they're skeptical that reform, as outlined in
legislation seen as having the best chance of passage, will
directly lead to more efficient delivery of health care or to
controlling soaring costs.
"I'm a little disappointed there's not more to drive the total
bill for health care for the country down," said Toby Cosgrove,
chief executive of the Cleveland Clinic, the medical center whose
cost-containment efforts were singled out by President Barack Obama
this summer as a model for the country.
To help make health-care delivery more efficient, Cosgrove
believes there should be more integration of hospitals with
physician practices and among hospitals. Also, with an "epidemic of
obesity" in the U.S., Cosgrove said there should be better
incentives for individuals to live healthier lifestyles that would
stave off costly disease. The problem of smoking could be tackled
by "taxing tobacco out of existence," he suggested.
Without such measures, Cosgrove thinks health-care costs will
continue to increase, requiring further action within several
years.
The need to encourage healthier lifestyles was a surprisingly
common refrain among health-industry executives in the business of
selling solutions in the form of a pill or device.
AstraZeneca PLC (AZN, AZN.LN) Chief Executive David Brennan said
the current health-care reimbursement system lacks incentives for
disease prevention.
Brennan said some health plans won't pay for gym memberships
that could help people stay in shape but they would pay for
expensive treatments for someone who develops diabetes as the
result of an unhealthy lifestyle. "Somehow we've got to get that
flipped around so people take more responsibility."
Schering-Plough Corp. (SGP) Chief Executive Fred Hassan echoed
that sentiment, arguing in favor of taxes on sugary soft drinks,
and even suggested that people engaged in unhealthy living should
be required to contribute more to the cost of health care than
those with healthier lifestyles.
"I feel if they're adding to the cost of the system, there has
to be a level of responsibility," Hassan said.
The pharmaceutical industry, as a whole, backs health-care
reform; its trade group reached a deal with the Obama
administration to pledge about $80 billion in savings to fund the
cost of the reform, including discounts for prescription drugs for
seniors in Medicare's drug-benefit plan. The deal is seen as having
spared the drug industry from harsher treatment in reform
legislation, such as price controls.
Concern exists that current reform proposals don't do enough to
address health-care costs stemming from medical-malpractice
litigation and so-called "defensive medicine," in which doctors
order unnecessary tests and procedures for fear of later being
sued.
Novartis AG (NVS, NOVN.VX) Chief Executive Daniel Vasella said
spending on malpractice insurance and defensive medicine was "way
too much." He argued for caps on medical-malpractice awards,
something that hasn't been a priority in current reform
proposals.
Drug-company chiefs expect health reform to pass but in a
scaled-down form, which is more attractive for the industry than a
potentially more partisan approach that may include a
government-run health plan.
-By Peter Loftus, Dow Jones Newswires; 215-656-8289;
peter.loftus@dowjones.com