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ORA Reporter


Profits or Patients: The New Centocor Program
by Cody Wasner, MD

Last month rheumatologists received an offer from Centocor to participate in a new purchase program for Remicade. Essentially, this is a price increase but the brochure spins this as a price stabilization program (read: "Corporate Profit Stabilization"). Even if you don't do in-office infusions, that program may have consequences for your patients. For those doing in-office infusions, the difficulties are challenging. The accompanying cover article explains some details of the program as it was proposed and the favorable changes that the ACR negotiated to protect the solo and small group practices. Thanks to the ACR for its efforts.  

     Centocor has a history of supporting patient and physician advocacy, so this new program is especially puzzling in several respects.

  • Because the margin for infusing Remicade has gone down with the ASP reform and because commercial carriers have also dropped reimbursement, it is already difficult to make in-office Remicade cost-effective. As this program is essentially a price increase, it will make this treatment method less available in-office.
  • Some patients will be shifted to hospital infusion units that are more expensive. The costs for patients and insurance companies will increase unnecessarily.  
  • Because many patients are disabled, making two trips (one to the hospital and one to the doctor's office) is an unnecessary hardship.
  • Patient safety may be affected. In-office infusions always have a rheumatologist in attendance but hospital units often do not have similar supervision. (They use the ER physician as back-up and they usually have little infliximab experience).
  • Unlike most business, the contract discourages negotiations.   The price change occurred within a few weeks of the announcement and the contract says, "any modification, no matter how small, will need to be reviewed and approved by Centocor, and will impact your ability to purchase REMICADE at the new initial contract price in a timely manner." One lawyer described this provision as unusually onerous and lacking the good faith of most business negotiations.
  • Because a substantial proportion of rheumatologists are solo or in small groups, this puts the major burden of the price increase on the shoulders of those who can least afford it.
  • Some physicians negotiate multiple drugs and supplies in a package or bundle. Negotiation power may be lost because of the restrictive nature of the Centocor contract.

     With more than 750,000 patients infusing Remicade and a substantial profit margin already in place (VA price is usually considered the "at-cost price" and for Remicade is $368.70 per vial), this contract will make little change in the Centocor coffers but a major difference to the struggling solo practitioner, where in-office infusions are barely breaking even.

     Fortunately, other new infusibles are reaching the market and physicians will have new options for treatment. This seems to make the timing of Centocor's program especially bad.   Many questions remain:

  • Why increase the price now?
  • Why penalize the solo and small groups?
  • Why the heavy-handed contract ?
  • How much goodwill has Centocor lost with physicians and patients? And of course, most importantly
  • Which is more important, profits or patients?

 

"Evidence-Based Medicine" Redefined
by H. Walter Emori, MD

Some years ago here in Medford the administrator of the Medford Providence Medical Center called together all of the rheumatologists in the Rogue Valley for a special meeting. With some anticipation we arrived at her office and were astounded to hear her ask all of us to give up our rheumatology practices and become hospital-employed primary care providers.  

Rheumatologists take great pride in training as medical scientists and revel in understanding diseases and clinical manifestations. We are frustrated by non-scientists telling us we need to practice with "evidence-based medicine" when our training tells us that "mechanism-based medicine" is more scientific and reasonable in our patients. We treat the most fragile of our society, most of whom are older and less able to care for themselves. With our training we eagerly anticipate and use innovative treatments for patients who depend upon us for their care.  

Health care today promises so many exciting new treatments. In addition to their incredible effectiveness and greater safety, these new treatments are almost always more expensive. Hospital administrators competing for the health care dollars, insurance companies trying to keep down premium cost by restricting expensive treatments, government agencies mandated to monitor or pay for these treatments all try to limit our use. The intense frustration in health care is not diagnosis and treatment. Rather, it is the apparently endless bureaucracy trying to keep us from using treatments we feel are best for our fragile patients.

It is in this context that the Oregon Rheumatology Alliance was founded and is the reason we have flourished. Indeed, ORA has become a model for similar advocacy groups across the nation as rheumatologists fight for their patients. When we can make available better, safer treatment, we feel vindicated by our efforts.   When we can reduce the paperwork, we can provide care to more patients while at the same time feel less anger and frustration with the "system."   

The future of ORA is assured as long as there are patients who need our specialized care, as long as there is a bureaucracy that tries to tell us how we need to change our diagnostic and treatment methods because health care is too expensive. Each of our patients has confounding, unique factors that limit the usefulness of "evidence-based" treatments. The cost of health care is everyone's business. Can we make a difference in making care more available by reducing costs? Yes, but our mandate is not to provide the cheapest care but rather the most effective and scientific care.  

In a society that expects government to provide health care, we as physicians have become agents of the government and those who pay the bills. Our mandate as patient advocates takes a clear determination that we will keep the patient's health benefit clearly in view and that although we will try to influence payers, we will recognize the effort and stress advocacy demands. In a strictly monetary sense, health care is too expensive. If we as a society limit spending, we can bring down financial costs but will most likely increase the human costs in disease, suffering and death. We should be involved in questions related to who pays the health care bills because without restraints, the costs will bankrupt our society or will further harm and disenfranchise vulnerable groups. Our task ahead is not an easy one but is a task with great importance for our patients and our society.  

 
 
 
 
 
 
 
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