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DAB Draws Fence Around Categorical vs R&N Decisions and Appeals Processes

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Medicare ALJs are allowed to review LCDs for validity, and prior decisions have held this is true even if the LCD is couched in other formats such as an "article."   DAB has ruled that in some cases the articles are de facto LCDs and therefore they reach legal review channels as LCDs.

However, not every published adverse coverage decision gets to ALJ review under this concept of the broad category of LCD and de facto LCD.

In case 2782 in April 2017, the Department Appeals Board rules that a decision that CGMs are considered "precautionary and non covered under the DME benefit" could not be reviewed as if it were an LCD. 

Link here.
https://www.hhs.gov/sites/default/files/board-dab-2782.pdf

The risk, of course, is that MACs could be wily and couch non coverage decisions by saying that XYZ, whatever XYZ is, is "precautionary or screening and therefore not a benefit," rather than stating that it is not reasonable and necessary.




AHA vs CMS: No standing to sue CMS on 340B; case not ripe

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In November 2017, CMS finalized rulemaking to lower the payments from CMS Parts A/B to hospitals where the drugs in question had been purchased under hefty 340B discounts.  AHA sued to stop the implementation.   Court rules that AHA has no standing to sue, as it has not exhausted remedies with the agency regarding specific claims.

The case is of interest as it documents the high barriers to getting a payment grievance into federal court, without exhausting other adminstrative remedies.

Case (Civil Action 17-2447) AHA vs HARGAN, online here.

CMS OPPS APPENDIX D

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CMS outpatient claims policy is driven by a document, revised quarterly, called "APPENDIX B" which has a column for "status indicators."  However, Status Indicators are only defined in a DIFFERENT document called APPNENDIX D1 which is issued in a zip file with final annual rulemaking. 

Cloud copy HERE.

I've also web-clipped the Appendix D for CY2018 below.

ADDENDUM D1. OPPS PAYMENT STATUS INDICATORS FOR CY 2018
Status IndicatorItem/Code/ServiceOPPS Payment Status
AServices furnished to a hospital outpatient that are paid under a fee schedule or payment system other than OPPS,* for example:Not paid under OPPS.  Paid by MACs under a fee schedule or payment system other than OPPS.
Services are subject to deductible or coinsurance unless indicated otherwise. 
●  Ambulance Services
●  Separately Payable Clinical Diagnostic Laboratory ServicesNot subject to deductible or coinsurance.
 Separately Payable Non-Implantable Prosthetics and Orthotics
●  Physical, Occupational, and Speech Therapy
●  Diagnostic Mammography
●  Screening MammographyNot subject to deductible or coinsurance.
BCodes that are not recognized by OPPS when submitted on an outpatient hospital Part B bill type (12x and 13x).Not paid under OPPS.
●  May be paid by MACs when submitted on a different bill type, for example, 75x (CORF), but not paid under OPPS.
●  An alternate code that is recognized by OPPS when submitted on an outpatient hospital Part B bill type (12x and 13x) may be available.
CInpatient ProceduresNot paid under OPPS.  Admit patient.  Bill as inpatient.
DDiscontinued CodesNot paid under OPPS or anyother Medicare payment system.
E1Items and Services:Not paid by Medicare when submitted on outpatient claims (any outpatient bill type).
●  Not covered by any Medicare outpatient benefit category
●  Statutorily excluded by Medicare    
●  Not reasonable and necessary 
E2 Items and Services:Not paid by Medicare when submitted on outpatient claims (any outpatient bill type).
for which pricing information and claims data are not available
FCorneal Tissue Acquisition; Certain CRNA Services and Hepatitis B VaccinesNot paid under OPPS.  Paid at reasonable cost.
GPass-Through Drugs and Biologicals  Paid under OPPS; separate APC payment.
HPass-Through Device CategoriesSeparate cost-based pass‑through payment; not subject to copayment.
J1Hospital Part B services paid through a comprehensive APCPaid under OPPS; all covered Part B services on the claim are packaged with the primary "J1" service for the claim, except services with OPPS SI=F,G, H, L and U; ambulance services; diagnostic and screening mammography; all preventive services; and certain Part B inpatient services.
J2Hospital Part B Services That May Be Paid Through a Comprehensive APCPaid under OPPS; Addendum B displays APC assignments when services are separately payable.
(1)  Comprehensive APC payment based on OPPS comprehensive-specific payment criteria.  Payment for all covered Part B services on the claim is packaged into a single payment for specific combinations of services, except services with OPPS SI=F,G, H, L and U; ambulance services; diagnostic and screening mammography; all preventive services; and certain Part B inpatient services.
(2)  Packaged APC payment if billed on the same claim as a HCPCS code assigned status indicator “J1.”
(3)  In other circumstances, payment is made through a separate APC payment or packaged into payment for other services.
KNonpass-Through Drugs and Nonimplantable Biologicals, Including Therapeutic RadiopharmaceuticalsPaid under OPPS; separate APC payment.
LInfluenza Vaccine; Pneumococcal Pneumonia VaccineNot paid under OPPS.  Paid at reasonable cost; not subject to deductible or coinsurance.
MItems and Services Not Billable to the MACNot paid under OPPS.
NItems and Services Packaged into APC RatesPaid under OPPS; payment is packaged into payment for other services.  Therefore, there is no separate APC payment.
PPartial HospitalizationPaid under OPPS; per diem APC payment.
Q1STV-Packaged Codes Paid under OPPS; Addendum B displays APC assignments when services are separately payable.
(1)  Packaged APC payment if billed on the same claim as a HCPCS code assigned status indicator “S,” “T,” or“V.”
(2) Composite APC payment if billed with specific combinations of services based on OPPS composite-specific payment criteria. Payment is packaged into a single payment for specific combinations of services.
(3) In other circumstances, payment is made through a separate APC payment.
Q2T-Packaged Codes Paid under OPPS; Addendum B displays APC assignments when services are separately payable.
(1)  Packaged APC payment if billed on the same claim as a HCPCS code assigned status indicator “T.”
(2)  In other circumstances, payment is made through a separate APC payment.
Q3Codes That May Be Paid Through a Composite APCPaid under OPPS; Addendum B displays APC assignments when services are separately payable.
Addendum M displays composite APC assignments when codes are paid through a composite APC. 
(1)  Composite APC payment based on OPPS composite-specific payment criteria.  Payment is packaged into a single payment for specific combinations of services.
(2)  In other circumstances, payment is made through a separate APC payment or packaged into payment for other services.
Q4Conditionally packaged laboratory testsPaid under OPPS or CLFS.
(1)  Packaged APC payment if billed on the same claim as a HCPCS code assigned published status indicator “J1,” “J2,” “S,” “T,” “V,” “Q1,” “Q2,” or “Q3.”
(2)  In other circumstances, laboratory tests should have an SI=A and payment is made under the CLFS.
RBlood and Blood Products Paid under OPPS; separate APC payment.
SProcedure or Service, Not Discounted When Multiple Paid under OPPS; separate APC payment.
TProcedure or Service, Multiple ProcedureReduction AppliesPaid under OPPS; separate APC payment.
UBrachytherapy Sources Paid under OPPS; separate APC payment.
VClinic or Emergency Department VisitPaid under OPPS; separate APC payment.
YNon-Implantable Durable Medical EquipmentNot paid under OPPS.  All institutional providers other than home health agencies bill to a DME MAC.
* Note -- Payments "under a fee schedule or payment system other than OPPS" may be contractor priced.

Informally Summarizing the FMI CDX Concordance Studies

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The FDA homepage for NGS PMA tests is here, product code PQP.  The FMI F1 CDX large panel test is P170019, here.

This is a very brief, freehand, and informal summary of some key S&E FDA review information. 

On page 36, the test has coverage of 702-793X in exomes.  Sequencing error rate was below the requirement of .01, specifically, about .003 (about 30% of the requirement).

Specimens passing all QC ranged from 96-100.   Four tissue types had <90% adequacy rates: pancreatic (83%), appendix (88%), pericardium (79%), prostate (84%).   

Longevity of paraffin block specimens was directly tested to 6 months with further tests underway.  However, two of the concordance studies used clinical samples with much older blocks.

Concordance studies were broken in seven groups:

  1. EGFR Exon 19 DEL & L858R, cobas V2.
    1. These two errors are about 85% of EGFR mutations.
  2. EGFR T790M, cobas V2. 
    1. This is a resistance mutation so only seen after treatment.  It is about 50% of resistance mutations.
  3. ALK rearrangements  Ventana and Vysis
  4. KRAS   Therascreen
  5. ERBB2/HER2   Dako FISH
  6. BRAF V600    Cobas V600 ThXID
  7. BRCA 1-2    FMI Prior Art / FoundationFocus CDx BRCA

click to enlarge
Generally, concordance was based on Noninferiority of Li et al. (2016).   

Controls were CCD1 and CCD2 (duplicates of the control, which provides variance of the prior art PMA assay).  

Only two of the examples were based on clinical trial blocks (EGFR T790M, ALK), and these had more problems with missing samples or poor performance of CCD2 (possibly due to age).  Generally, about 200-300 blocks were used and samples were weighted to be about balanced positive and negative (based on CCD1).   Data was presented also as corrected for expected real world prevalence, which as FDA notes gives data somewhat lower than the lab data on the artificial prevalences.

In those two cases where clinical trial blocks were used, the data assessment is based on analytical validity (analytical concordance).   Also note that while FMI reports full sequence analysis, the FDA PMA evaluations can be based on much simpler point-mutation concordance.

EGFR EXON 19 DEL & L858R

Samples were convenience samples pre screened to give positives and negatives.   406 samples were tested.  84 were duplicates.  267 samples were available for final testing after discarding various process failures.

As in other "pure external concordance" cases, agreement was quite high.  There were 112 positives and 170 negatives.   Of the few mismatches a few were explainable by unusual mutations.  However, when corrected for real world prevalence, % agreement was slightly lower.  

Nearly all the % agreement were >97%.  

T790M

Blocks were based on AURA trials for osimertinib.  However, of 354 samples, 227 had full comparison data.   There were 145 positives, 167 negatives.  CCD2 had more common mismatches (e.g. 27 CCD2 negative out of 145 CCD1 positive).  This could be due to block age.

Most of the % agreement were anywhere from 72% to 95%.

HER2

317 retrospective convenience samples were available.   There were 125 positive, 192 negative.  CCD2 had some mismatches, e.g. 12 of 125 and 9 of 192.   Of 113 CCD double positives, 12 were F1 negative.

Most of the % agreement were from 80% to 96%. 

ALK

175 samples were from Roche ALEX alectinib vs crizotinib study (including screen failures to provide negatives).   Repeat Ventana IHC was not available, Retro VYSIS data was used as a surrogate.   Of 487 samples, 172 had insufficient slides.  Total positives 134, negatives 139.   Final samples were 175 after excluding missing data.  

For example, of 103 CCD double positives, 6 were F1 negative.  Of 134 CCD1 positives, 11 were CCD2 negative.  A smaller sample analysis was also presented (Table 41, 140 samples).  

% agreement ranged from 65% to 98%.   

KRAS

343 retrospective convenience samples.  As with other convenience samples, correlations were very high.   There were 177 positive and 165 negative.  

% agreement mostly >98%.

BRAF

305 retrospective convenience samples from advanced melanoma.   167 positive and 138 negative.  Concordance was nearly perfect.

% agreement was mostly > 98%.


BRCA

The two tests use the same reagents, equipment, and procedures except for lower DNA input for library construction and "enhancements in the analysis pipeline" which "have no impact" on the assay. See PMA P160018.







Procalcitonin in Antibiotic Stewardship Programs: 8 Links

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Stover KR, Kenney RM, King ST, Gross AE.
Pharmacotherapy. 2018 Feb;38(2):271-283. doi: 10.1002/phar.2069. Epub 2018 Jan 16. Review.
2.
Broyles MR.
Open Forum Infect Dis. 2017 Oct 3;4(4):ofx213. doi: 10.1093/ofid/ofx213. eCollection 2017 Fall.
3.
Fung AWS, Beriault D, Diamandis EP, Burnham CD, Dorman T, Downing M, Hayden J, Langford BJ.
Clin Chem. 2017 Sep;63(9):1436-1441. doi: 10.1373/clinchem.2017.272294. Epub 2017 Jun 20. No abstract available.
4.
Ammar AA, Lam SW, Duggal A, Neuner EA, Bass SN, Guzman JA, Wang XF, Han X, Bauer SR.
Pharmacotherapy. 2017 Feb;37(2):177-186. doi: 10.1002/phar.1887. Epub 2017 Feb 3.
5.
Salahuddin N, Amer L, Joseph M, El Hazmi A, Hawa H, Maghrabi K.
Crit Care Res Pract. 2016;2016:6794861. doi: 10.1155/2016/6794861. Epub 2016 Jul 14.
6.
Cai Y, Ee J, Liew YX, Lee W, Chlebicki MP, Goh YC, Kwa AL.
J Infect. 2014 Oct;69(4):412-5. doi: 10.1016/j.jinf.2014.06.008. Epub 2014 Jun 23. No abstract available.
7.
Liew YX, Chlebicki MP, Lee W, Hsu LY, Kwa AL.
Eur J Clin Microbiol Infect Dis. 2011 Jul;30(7):853-5. doi: 10.1007/s10096-011-1165-6. Epub 2011 Jan 29.
8.
Harbarth S, Albrich WC, Müller B.
Crit Care. 2009;13(4):165. doi: 10.1186/cc7935. Epub 2009 Jul 13.

HealthWorx Staff Post

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https://www.disabledperson.com/jobs/12259923-program-innovation-development-program-director

Program Innovation & Development Program Director at CareFirst BlueCross BlueShield

Please apply before: 1/13/2017


PURPOSE: 

CareFirst is a leader in the health care industry serving approximately 3.2 million members. The Medical Affairs Division is responsible for all aspects of provider contracting, network management, pharmacy policy, quality of care and care management as well as the Primary Care Medical Home (PCMH) Field Operations and the Total Care and Cost Improvement (TCCI) program.

Reporting to the Chief Medical Officer, this individual will lead a team that will apply an analytic approach to identify new clinical opportunities and develop programs to pursue these opportunities. Examples of new opportunities may include new payment models for specialists, new TCCI programs and clinical/service partnerships, and partnerships with early stage companies to bring new technologies or services that can improve the health of CareFirst members to market.

PRINCIPAL ACCOUNTABILITIES:
Reporting to the Chief Medical Officer, the duties of this position include:

Identify new clinical opportunities; Lead the development of new programs

Independently drives the development of new clinical programs. This includes:

* Leading a data-driven approach to identify new clinical opportunities;
* Understanding the national landscape for clinical innovation and conducting market research to identify and evaluate potential vendors/partners; 
* Supporting the Medical Affairs leadership team in discussions/negotiations with new potential clinical partners; 
* Working closely and collaboratively with front-line operational partners in the Medical Affairs Division to stand-up new programs.
* Working with TCCI program managers to shape the ongoing development and evolution of programs after their inception 

Leads proactive problem solving including: problem identification, definition, analysis and recommendation as an individual producer and as a catalyst in small group settings.

Deliverables include: verbal reports and detailed point papers designed to monitor and encourage delivery against milestones contained in Divisional Plan.

Responsible for coordinating operations and leading special projects across all aspects of the medical affairs division and will operates as a shared resource for the Medical Affairs Division.

Provide expertise in the design principles of health care payment models, innovation in health care services and technology and will track developments in this field to ensure that CareFirst leads the industry in developing best practices.

Manage the development of new clinical partnerships

Works closely with the VP for Quality, Performance Measurement and Improvement, SVP/Chief Medical Officer and EVP for Medical Affairs to identify and develop key strategic clinical partners, including vendors, health care services and technology companies and specialist providers. Initial areas of focus will include new specialist payment and service delivery pilots, home based monitoring, and new technology and services that enable both CareFirst and its network providers to better manage members with multiple chronic diseases. This includes but is not limited to:

* Serving as a point of first contact and management for the creation of new, innovative partnerships;
* Convening and working with key stakeholders within CareFirst to analyze and vet potential new partners;
* Working with Medical Affairs senior leadership to develop programmatic material, terms and, eventually, service level agreements for new partnerships.

Form partnerships with early stage companies to bring new technologies or services that can improve the health of CareFirst members to market; Develop and manage HealthWorx portfolio of companies.

Helps to create and launch HealthWorx, a CareFirst incubator that will work with early stage companies to bring new technologies and services to market. This includes: 
* Maintaining a robust pipeline of potential portfolio companies through relationships with venture capital firms, industry and other seed-stage incubators; 
* Vetting and conducting research on potential partner companies; 
* Working with the Chief Medical Officer to select and prepare companies for presentation to CareFirst senior leadership; 
* Working with Medical Affairs leadership and colleagues in legal and finance to negotiate, draft and execute agreements with selected companies; 
* Managing the tracking the overall HealthWorx portfolio of companies; 
* Providing operational support to HealthWorx portfolio companies

QUALIFICATION REQUIREMENTS:

Required Education/Experience:
* An advanced degree in a health care related field (PhD, JD, MBA or MPH, with a concentration in health care or health economics) or equivalent work experience. Understanding of managed care concepts and operations. A minimum of 3-5 years experience with progressively increasing responsibility in health care environment, health insurance payer environment, or related industry.

Required Skills and Abilities:
* Proven project/program management skills, working collaboratively and effectively to drive complex deliverables in a matrixed environment.
* Proven experience with developing innovative health care delivery and payment models
* Demonstrated ability to effectively analyze and present data
* Excellent presentation skills
* Must be able to work independently with minimum oversight and demonstrate attention to detail, accuracy and quality awareness
* Proven analytical and problem solving skills
* Proven effective written and interpersonal communication skills, well organized, ability to multi-task and work independently, promote flexibility and teamwork
* Strong PC skills, Microsoft Word, Microsoft Outlook, Excel, database applications and fluency in statistical analysis (SAS, Stata, R or other statistical software)
* Strong understanding of the health care industry, with a specific focus on early stage health care companies and innovation in health care technology and services.
* Demonstrated leadership skills including the ability to: 1) train and motivate the performance of team members in a matrixed environment; 2) positively impact the performance of close colleagues as a trusted consultant.

Must be able to effectively work in a fast paced environment with frequently changing priorities, deadlines, and workloads that can be variable for long periods of time. Must be able to meet established deadlines and handle multiple customer service demands from internal and external customers, within set expectations for service excellence. Must be able to effectively communicate and provide positive customer service to every internal and external customer, including customers who may be demanding or otherwise challenging.

Preferred:
* Experience with vendor selection and management including RFPs, contract negotiation, service level agreements, etc.

-------------------------

Department: SVP & Chief Medical Officer

Medicare Trivia Corner: Owner Compensation Profiling

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A recent article in LA Times reported that a California Medicaid plan allegedly overpaid its leadership.   Here.  Remark that MediCal (California Medicaid) didn't have clear guidelines.

Medicare has some very intricate guidelines on payments for owners of business that CMS pays by cost based methods.  These include physician owners.  I stumbled on a July 21, 2017 11 page update document on this process.  It's in the "Provider Reimbursement Manual, Part 1, Chapter 9, Compensation of Owners," and categorized as Transmittal 474.   Here.

It's pretty lengthy but one feature is a table for "physician owner compensation," clipped below.  See the link for the full text and context.

click to enlarge


February 21, 2018 West Health Cost Innovation Summit in DC

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Missed this til after the fact - West Health foundation held a Cost Innovation Summit in DC on 2/21/2018.

Website is here.

In case website goes down, some key webpages in a zip file here.


Tidbit.
Around 2010 I worked at Foley Hoag simultaneously with Rodger Currie, who soon became head of the Washington policy center for West Health.  In 2014 he moved to the American Psychiatric Association.  In 2016 he moved to PHRMA.

Simpler Medical Student Physician Documentation Rules (2018/02)

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In early February 2018 there were several articles that the Trump Administration had simplified physician documentation rules in cases where medical students write notes.  Here, here.

The CMS documentation of the reduced documentation is here and here.

click to enlarge

I don't think this is Dr Ronald Hirsch....

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I don't think this is Dr Ronald Hirsch....



Pulling threads together: GAO Report on Medicaid Demos Triggers Thoughts about CMMI and CMS CED

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CMMI is allowed and required to do demos that aim to reduce cost and improve quality.  However, of numerous demos conducted, very few have been able to meet this dual metric.  In part, it's hard to have the data, outcomes, comparisons, and statistics.  Comparisons to historical control groups based on administrative records can be dicey for obvious reasons.  (For disease management, see Al Lewis's book (and blogs) "Why Nobody Believes the Numbers.")   CMMI has published huge collections of project summaries without having much hard data on results.   In a video interview, I once heard former CMMI director Patrick Conway say that CMMI staff were stumped by the hurdles of designing and reporting that would meet the CMS Actuary's accounting standards for cost estimates.  My point.  Maybe a missing link was enough in-service learning sessions between CMMI design staff and CMS Actuary staff to write the rulebook for outcomes and evaluations before starting the $1B a year investments.

A Health Affairs article on innovation acceleration focused on CMMI largely sidestepped the problems in February 2018.  See Perla et al., but wear your happy-hat.  Here.

Similarly, many of the evidence demo projects by the CMS coverage group under "Coverage with Evidence Development" have a mixed history at best.  Here.  And there is NO comprehensive evaluation and lessons learned written about all of them together.

The New GAO Report on Medicaid Demos

In February 2018 GAO released a report that demo follow up was also badly done in Medicaid.  Report here, Dive Healthcare here, MedCityNews here.
  • Author Phil Galewitz at MedCity noted that even a big Indiana Medicaid demo's reports were tardy - and the demo was designed by Seema Verma who now heads CMS.
It seems like whether CMS does innovation demos via CMMI, or Coverage "CED"or Medicaid, it's really really hard to pull off the follow-through and execution, probably in some cases, because the up front planning didn't at CMMI or Medicaid have the potential for a successful story arc.  Designing good trials is hard, whether you're a senior expert at NIH or a senior expert at Harvard, and whether you're on staff at CMMI or a Medicaid plan.


HIMMS pre announced May 17-18 2018 Precision Medicine Summit in DC

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http://www.theprecisionmedicinesummit.com/washington-dc/2018





http://www.himss.org/event/precision-medicine

May 17 8:00am - 18, 2018 4:30pm EDT
Washington, DC

Precision Medicine Is on Fire

In fact, it’s gotten so big that analysts expect the market to skyrocket past $87 billion worldwide by 2023. As more healthcare organizations nationwide put precision medicine into practice, the opportunities it brings for disease treatment and prevention are enormous. But the challenges are also very real.
The HIMSS Precision Medicine Summit provides attendees with the insights and tools they need to address those challenges head on – and take the next steps. Join us for 2 full days of case studies, best practices, panel discussions, and unrivaled networking opportunities.
What you'll get:
  1. Dip deeper than ever into precision medicine barriers with 2 full days of expert keynotes, panels and breakout sessions
  2. Learn emerging technologies, the latest trends, and success strategies around personal genomics, diagnostics, immunotherapy, analytics, infrastructure and more
  3. Network with peers, thought leaders, and precision medicine experts, and get the insights you need to move forward
Stay tuned, registration will be open soon!
OLD NEWS:
http://www.mobihealthnews.com/content/calls-proposals-precision-medicine-summit-big-data-and-healthcare-analytics-forum-and

HIMSS Precision Medicine Summit: Call for Speaking Proposals closes this Friday
There’s still time but the clock is ticking to submit a speaking proposal for the HIMSS Precision Medicine Summit in Washington DC, May 17 and 18. The deadline to submit a proposal is 5 p.m. ET on Friday, February 9. Click here to submit a speaking proposal and for more information.
Over two days, speakers will share their work, discuss industry trends, and, importantly, address what healthcare must do to make precision medicine – and personalized care – an everyday part of primary care.
The event will be attended by 150 healthcare clinical and IT leaders from hospitals, health systems, and other provider, payer, pharmaceutical, government organizations.
If your organization has a precision medicine success story to share, or you have expert insights into what’s required to move precision medicine to the point of care, you’re the perfect speaker for this event.
Topics of interest include: Technology and infrastructure, especially machine learning; big data and precision medicine; genomics; clinical integration; knowledge and expertise; reimbursement; the regulatory landscape; investment; and more.

WSJ: What Medicare Can Learn from Netflix.

The Hidden Auto Transcript Button in YOUTUBE

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I accidentally discovered the Hidden Transcript Button in Youtube. 

If you see the "closed caption" cc symbol (very common) tap the "three button" logo, section "open transcript."  You can copy/paste transcript.  Cool.


For a serious use, lots of CMS and FDA and Hill hearings are archived on Youtube.  I knew about the "closed caption" button [cc] but it's more useful to skim the whole video by seeing the whole text at once. 




Updated Chart on BRCA Payments by Year 2014, 2015, 2016, with Natl, State, and Lab Data

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I've written about the quirky range of BRCA coding and payments in different geographies under Medicare Part B.   It's a big deal; in 2016 it was about $70M payments at anywhere from $900 to $2600 per patient, depending on coding choices and MAC claims processing.   There were about 31,000 patients in CY2016, so the minimum payment would have been 31,000x$900 or about $31M, and the maximum about 31,000x$2600 or about $81M.   For most of these, a median payment would be 81432+81433 or $1400, giving $43M.


click to enlarge


Chart above.  Dollar data sums codes.  Utilization data assumes 81211/81213 or 81432/81433 patients overlap.   Payments are dollars allowed, including deductibles, so they are slightly less than fee schedule pricing.     Overall patient/dollar volume was up about 20% from 2014 to 2015, and up a total of about 70% from 2014 to 2016.

Data sources are:
Data sheet, as shown in figure above, in the cloud, here.

I also charted UTAH STATE VOLUME of dollars and patients over NATIONAL VOLUME of dollars and patients.   Utah percent of total dollar volume and total patient volume appears to drop from 84% to 72% to about 40%.

click to enlarge
My first blog on 2016 state level data, when the data was just newly released, early November 2017, was here.  The charts above are generally a superset that gives a 2014 2015 2016 view at one glance.


NGS Sequencing and Reimbursement: Panel at PMWC 2018 (Feb 2018) Video

HBR Publishes Case Study, Interview about Adaptive Trials

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  • Harvard Business School has published a 26-page case study about Adaptive Trials, download for $9, here.    
  • Read an interview with the author, here.





The interview is from Harvard's business school case study podcast series.   The case is about GBM-AGILE, which starting as an ad hoc working group to make a blueprint for adaptive studies in GBM.   The case study is about converting the blueprint from the drawing board to a real world funded study.

For a different perspective on GBM Agile see these two links:



###

I recently pulled up a few new review articles on umbrella and basket and adaptive trials.

Open Access, see Savoia 2017, Clin Sci 131:2671 [view is general but focus is cardiology], here:

...Not open access, but sound good:

Renfro 2017, Ann Oncol 28:34, Statistical Controversies... [in such trials],  


Simon 2017, Clin Pharm Ther 102:934, Critical review... [of such trial designs], 


##

See also Simon 2017 in Ann Intern Med, 165:270, Adaptive oncology trials...

See also Renfro 2017, Cancer Lett, 387:121, Precision oncology: new era of trials...

See also Renfro 2016, Cancer Treat Rev 43:74, Clinical trial designs incorporating predictive biomarkers...

See also Beckman et al. 2016, Clin Pharm Ther 100:617, Adaptive dsign for confirmatory basket trial...

Modifier 59 and X Modifiers - Saga to 2018

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2014 article on creation of X modifiers
https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/MLNMattersArticles/Downloads/MM8863.pdf
    and
https://www.cms.gov/Regulations-and-Guidance/Guidance/Transmittals/Downloads/R1422OTN.pdf

2015 article on X modifiers
https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/MLNMattersArticles/downloads/SE1503.pdf

2018 Update on X modifiers
https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/MLNMattersArticles/Downloads/SE1418.pdf


Craziness in ADLT Rulemaking re Licenses (June 2016)

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Click to Enlarge

click to enlarge   81 FR 41060  June 23 2016



Pushing Around ADLT Prices through Appeals in Year 1

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Pricing rules for ADLT allow payment at list price in Year 1 (actually for 3 quarters) and then payment at the average price of Year 1 in Year 2.    CMS gets a recoupment when the CMS list payment in Year 1 has proven to be more than 130% higher than the actual observed commercial median payment in Year 1. 
____

I've made a model system where an ADLT has 900 sales to Medicare and 900 sales to commercial in Year 1, and 6,000 sales to medicare and 6000 sales to commercial in Year 2. 

List price is $4000.   Actual commercial payments in all years are 1/3 $1000, 1/3 $2000, 1/3 $3000.   

In Year 1, the lab accepts payment for all its $3000 commercial cases, but appeals all the $1000 or $2000 payments into Year 2.   Thus, its commercial median payment in Year 1 is $3000, which sets its Medicare rate for Year 2.

Since $4000 CMS paid list price in Year 1 is 133% of the later observed commercial median of $3000 in Year 1, CMS recoups 3% x (900*$4000) = 3% x ($3.6M) = $118,800 in Year 2.

Total CMS payments in Year 1 are 900*$4000 = $3.6M, 6000*$3000 = $18M in Year 2, and with the small clawback, this is net of $21,481,200 in the two years for 6900 cases, giving an average CMS payment of $3,113.

Had CMS paid all cases at the actual commercial median for both years, which was always about $2000, CMS would have paid the ADLT lab 6900*$2000 or $13.8M instead of $21.4M.   Thus, despite the clawback rule, which applies only to Year 1, it is fairly easy to get net payments over 2 years that are 150% or more of the actual commercial medians. 

Data

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click to enlarge

Spreadsheet in cloud here.

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