Health Reform Blog

Archive for February, 2010

Response to BusinessWeek’s “Take Your Meds, Exercise—and Spend Billions”

Thursday, February 11th, 2010

Several days ago, BusinessWeek’s Chad Terhune and Arlene Weintraub argued in an online article that when it comes to “so-called disease management, [there’s] scant evidence that it works.” I was surprised to read this, as when I spoke to Terhune before he wrote the article, I provided him with a number of examples of widely-regarded published studies, including randomized controlled trials, showing that well-designed disease management programs save money and improve health. Some of these examples included:

  • Transitional care programs—a major part of care management—based on the models developed at the Universities of Pennsylvania and Colorado. Randomized trials have proven these nurse-led care management functions reduce hospital readmissions by about 50%. Geisinger and other health systems have adopted these models producing substantial savings.
  • The YMCA’s structured lifestyle interventions, based on the model for the national Diabetes Prevention Program, which have shown a 58% reduction in the incidence of diabetes and cost savings within two to three years.
  • By investing $30 billion over 10 years in a community health team infrastructure, we could save $100 billion over 10 years due to reductions in hospital admissions, readmissions and improving existing care management protocols.
  • A new Health Affairs study by Baicker, Cutler and Song that found that “medical costs fall by about $3.27 for every dollar spent on wellness programs and that absenteeism costs fall by about $2.73 for every dollar spent.” This is one of several published studies showing similar results.

The bottom line is that Terhune and Weintraub ignored a large body of published data that contradicted their argument. For instance, they focused on shortcomings in GE’s disease management program, but failed to mention Johnson & Johnson’s workplace wellness program, which is one of the longest-running programs in the country.  A 2002 Rand study found that J&J’s disease management and prevention initiatives not only improved employee health, but also saved employees an average of $225 per year because of a reduced need for doctor visits.

Terhune and Weintraub also failed to discuss why disease management and prevention have garnered such popularity, especially among policymakers. Policymakers — on both the left and the right — have rightly recognized that much of the cause of our nation’s poor health lies in a misaligned delivery system in which Americans, insured or otherwise, aren’t getting the right type of care to stay healthy and avoid disease. In the United States today:

  • Patients with chronic disease are estimated to account for 75% of overall health spending and 99% of Medicare spending.
  • More than half of Medicare beneficiaries are treated for five or more chronic conditions yearly.
  • Two in three American adults are obese or overweight, and by 2018, 103 million American adults — or 43 percent of the population — will be considered obese.
  • Obesity is historically linked to about one third of the increase in domestic health spending since the mid-1980s.

Disease management isn’t the sole solution to these problems. However, it’s a necessary part of the solution – and one that is, contrary to the BusinessWeek article, backed by evidence.