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Turbulence Ahead

The Hospitalist. 2011 January;2011(01):

Amid a “firestorm of ideas” on how to further cut Medicare and Medicaid spending, ideas once deemed radical could gain more traction. Some legislators have tossed around the idea of shutting down the government, if need be. “There’s nothing on the radar scope but static and fuzz,” Vaughan says. “It is totally unclear what is going to happen.”

Dearth of Drugs

Another trend generating both uncertainty and headaches in the nation’s hospitals is an unprecedented prescription drug shortage that could last well into the New Year, based on the number of medicines now in scarce supply across the country. In mid-November, for example, the American Society of Clinical Oncology announced “severe and worsening shortages of many critical therapies,” including doxorubicin, leucovorin, etoposide, nitrogen mustard, vincristine, propofol, and morphine.

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Valerie Jensen, associate director of the FDA’s drug shortage program, told the Associated Press that her agency was seeing a record number of drug shortfalls in 2010. In mid-November, the FDA’s Current Drug Shortages list (www.fda.gov/Drugs/DrugSafety/DrugShortages/ucm050792.htm) included multiple formulations of 50 different medicines. Why so many? Jensen blamed the scarcity, in part, on the fact that many older drugs are not as profitable as newer ones. Manufacturing issues or delays and increased demand were the two biggest official reasons, though the FDA reported that at least eight formulations had been pulled or held from the market.

Vaughan says he’s heard plenty of buzz about the problem showing up quickly and unexpectedly in hospitals. Drug companies are supposed to give the FDA six months’ notice if they stop producing a drug, he says, but there’s no penalty if they don’t. “It’s amazing the number of people who are starting to worry about it,” he says. TH

Bryn Nelson is a freelance medical writer based in Seattle.

Health Reform Timeline

Some key dates tied to the Affordable Care Act; a more comprehensive timeline can be found at https://healthreform.kff.org/timeline.aspx.

  • March 23, 2010

    Patient Protection and Affordable Care Act signed by President Obama.

  • June 2010

    Senior citizens begin receiving $250 rebate to reduce size of “doughnut hole” gap in Medicare prescription drug coverage.

  • July 1, 2010

    Enrollment begins for patients uninsured for six months due to a pre-existing condition, under the Pre-Existing Condition Insurance Program run by states and federal government.

  • Sept. 23, 2010

    Dependents up to age 26 can be included on parents’ health insurance. Lifetime benefit limit ban is lifted. Children with pre-existing conditions no longer excluded from insurance plans. (In response, some major insurers announce they will no longer sell child-only policies; others announce premium hikes due to new provisions.)

  • Nov. 16, 2010

    Center for Medicare and Medicaid Innovation established, with a goal of testing new methods for coordinating, delivering, and paying for healthcare.

  • Jan. 1, 2011

    Medicare begins paying 10% bonus for primary care.

  • Jan. 3, 2011

    112th Congress seated, signaling official start of new political battles over multiple provisions in healthcare act.

  • Early 2011

    Community-Based Care Transitions pilot program will begin accepting grant proposals from hospital-community organization collaborations.

  • March 23, 2011

    First grants for state-run health insurance exchanges to be awarded (patient enrollment slated to begin Jan. 1, 2014).

  • Oct. 1, 2011

    Funding available for a 15-member Independent Payment Advisory Board, which will begin determinations in 2013 on whether Medicare expenditures are exceeding target rate of growth, the first step toward potential payment reductions.

  • Jan. 1, 2012

    ACOs that voluntarily meet quality metrics will be allowed to share in Medicare cost savings.

  • Oct. 1, 2012

    A hospital value-based purchasing program (payment adjustments based on performance measures) begins covering new hospital discharges. Also, hospitals with excessive readmission rates will begin receiving decreased Medicare payments.

  • Jan. 1, 2013

    Voluntary national pilot on bundling Medicare payments for 10 conditions set to begin.

Source: Kaiser Family Foundation