News

Morning Read: Pharma needs to adopt IBM model to avoid patent train wreck

According to Dave Chase at TechCrunch, the pharmaceutical industry should shift away from the railroad philosophy of business and copy IBM’s strategy from the 80’s. It was a painful transition for IBM when Lou Gerstner changed the company’s focus from selling hardware to selling services. Pharmaceutical companies need to make a similar transformation and start […]

According to Dave Chase at TechCrunch, the pharmaceutical industry should shift away from the railroad philosophy of business and copy IBM’s strategy from the 80’s.
It was a painful transition for IBM when Lou Gerstner changed the company’s focus from selling hardware to selling services.
Pharmaceutical companies need to make a similar transformation and start selling packages of services instead of just pills. If their focus remains on capsules and injectables, the patent cliffs  will destroy them, just as the automobile derailed the train.

Researchers at Johns Hopkins tested Google Flu Trends against hospital admissions for the flu and found that the predictor was quite accurate. Google launched the tool four years ago to estimate flu outbreaks based on how many people were typing “flu” or “flu medication” into a search box. The team at Johns Hopkins compared Google searches done in Baltimore with the number of patients who showed up with flu-like symptoms at a local emergency room. They found a high correlation between the two numbers.
In other flu news, GlaxoSmithKline is spending $12 million to support a Canadian project tracking the use and effectiveness of flu vaccines.

Now that hospitals, doctors, and other health organizations have had time to review requirements for Stage 2 of the meaningful use program, reactions are rolling in.
The five groups polled in this article–from doctors to patient advocates–show cautious optimism. Hospital Review lists 39 things to know about the new rules, focusing on core objectives and menu objectives for EPs, eligible hospitals and CAHs as well as changes from Stage 1. Sen. Mark Warner seems to think the new rules aren’t tough enough. A new study from Deloitte suggests that many doctors aren’t even ready to meet the requirements of Stage 1.

Congress is unhappy with the early ROI for a computer system designed to stop Medicare fraud.
The $77 million software program was supposed to analyze large groups of claims to spot potential problems. In the first six months, the system identified only one suspicious payment worth $7,591.
Medicare administrators say that the system has many ways to stop fraudulent payments and that suspending payments is only one of them.
Ted Doolittle, deputy director of Medicare’s anti-fraud program, said the system has generated some 2,500 leads and identified 600 suspicious cases, some which may turn into major investigations. Medicare officials said the analytical tools are now being used to evaluate all Medicare inpatient, outpatient and medical-equipment claims before payment.

Before moving their patient files to the cloud, doctors need to do a careful assessment of vendors to ensure long-term viability and security of patient records. Cloud-based electronic medical records are an option for smaller practices moving to electronic medical records because the only initial technical requirement is an Internet connection. Physicians should compare vendors and put them through a thorough interview to make sure this key working relationship will endure.

 [Photo from flickr user RCStanley]

 

Topics