12.02.2005

Well, in some sense, this was a slow week for hospital-related news. Though I could easily "fill up" this post with the usual 8-10 pieces of the most relevant news of the week, I think I would be wasting my breathe. Nonetheless, let me mention a few worthy things that happened this week:

Consumer-Driven Healthcare takes another step with the completion of the HCAHPS survey. Healthcare leaders were pleased to see the new HCAHPS Survey - a standardized, nationalized survey that polls patients' perception of care. At some point in the future, a sampling of patients from every hospital in the country will answer these 27 questions about their experience. I don't know about you, but I am dying to get my hands on these 27 questions. Using those questions as a guide, are we ready to start looking at our hospital operations/service from the patient's point of view? If you haven't already, check Press Ganey and NRCPicker for more info on this. Of course, the results of all this info will be made public on CMS's HospitalCompare website - it'll be sorta a Zagat's for hospitals. (FYI: I believe these questions will become public domain in about 5 weeks.)

6.6% profit margin for small hospitals in 2005. Relatively speaking, it has been a great year for hospitals. According to S&P, Small hospitals had a median profit margin of 6.6% and median operating margins of 4.7% in 2005, up from 2.3% and -0.5%, respectively, in 2003. Large hospitals also improved their margins from 2004. Why/How? I can't say for sure, but if you look at all the publicly traded hospital companies, they've been mentioning bad debt management and increased volume. How did your hospital do this year?

Trend or Fad? That's the question for these three new interesting developments.

Face Transplants - The world's first face transplant was performed in France.

Online 2nd Opinions - The WP reported on Cleveland Clinic's "MyConsult" (www.eclevelandclinic.org</a>). For $565, you, too, can get a 2nd opinion on any one of 600 "life-threatening or life-altering conditions."

Take 2 placebo and call me in the morning. Is this the end of pharmaceuticals as we know it? No way. Nonetheless, some studies have been completed that offer evidence that the "placebo effect" is real. One study showed that a proven painkiller didn't work as well once Alzheimer's disease took away people's ability to expect the painkiller to work. Another study had scientists causing some pain in healthy young men. As soon as the men were told they were getting a pain killer, their brain released endorphins (natural painkiller). Will this spawn a new industry that will serve the anti-pharma, all-natural, I'm-gonna-will-myself-better crowd?

In all 3 of these developments, not surprisingly, I think they will neither trends nor fads. I think most would agree that each will find their niche and their market, but never become a dominant force.