Author: Team
DOES AUSTRALIA’S PRIVATE HEALTH SYSTEM NEED EMERGENCY TREATMENT?
[vc_row][vc_column][vc_column_text]The Government has introduced a range of measures to increase affordability including the $1.1bn cuts to medical devices, providing discounts to under 30-year old’s and forthcoming classification of policies into gold, silver, bronze and basic.
Meanwhile Labor has promised a wide-ranging Productivity Commission review, the first in 20 years, during which it committed to capping annual premium increases to 2% for two years.
Australia has a fantastic health care system that delivers great patient outcomes for the money we spend. Health expenditure should not be a cost but an investment in our community by maintaining a healthy population.
The reality is, surgical volume growth is slowing, a sign that private health insurance (PHI) customers are either electing to delay procedures or go onto the public waiting list. And why might they be doing this? Cost.
Last week the ACCC released its annual report into the private health insurance industry, which called for the industry to make its products more consumer friendly by providing reliable and transparent information about product features and changes to private health insurance policies.
Dissatisfaction with PHI has reached that point that complaints to the Private Health Insurance Ombudsman (PHIO) have increased by 30%, continuing a trend of increasing complaints, which have risen for the fourth consecutive year.
The evidence of increasing profits and retained capital reserves by private health insurers would indicate scope for them to do more on their end.
The Medical Technology Association of Australia’s (MTAA) CEO, Ian Burgess, has pointed to the Prostheses List Agreement, co-signed with the Government, which has resulted in $1.1 billion in cuts, over four years, to assist with the affordability of private health insurance.
“More and more Australians are turning away from Private Health Insurance (PHI) because it is increasingly costly while covering less and less due to exclusions” Mr Burgess said.
“Just last week PHI was claiming a 2% cap on premium increases would lead to eight insurers operating at a loss in the first year and put three on the brink of insolvency in the second. This is an industry that receives $6 billion in taxpayer subsidies every year.
“The public would be right to seriously question the fundamentals of the PHI industry, if it can’t deal with a 2% cap,” he said.
The increase in out-of-pocket costs is seeing patients not opting for elective surgery in private hospitals and instead going on our public waiting list.
According to a Credit Suisse analyst “utilisation in the short term as long as affordability pressures continue to shift patients into the public system and the government displays low appetite to produce meaningful reforms to reverse this trend.”
Australia’s largest private hospital provider Ramsay Health Care, revealed this problem recently.
“We are facing more challenging conditions in Australia with lower growth in procedural work and inpatient admissions, which has adversely impacted casemix in our Australian hospitals,” Ramsay’s managing director, Craig McNally, said.
“Given the current climate around private health insurance and affordability, we expect this trend will continue into 2019.”
The problem is exacerbated for the private hospitals who over recent years have aggressively increased the number of beds and brownfield sites, leaving them with a quagmire of less patients and more beds.
The Weekend Australian revealed that internal government documents had warned the Health Minister reforms were needed to prevent a decade-long decline in the sector.
The Office of Best Practice Regulation wrote that “Without a discussion of how consumers might take advantage of reforms to change their level of private health insurance, or how the take-up by younger people might be affected, it is difficult to see how the reform option as a package is intended to result in a net benefit for consumers, private health insurers and the community.”
Many across the healthcare sector have raised concerns that nothing in the next 12 months will see PHI increase its value proposition to consumers and ever increasing profits will only fuel the rage.[/vc_column_text][/vc_column][/vc_row]
MEDTECH INDUSTRY RESPONDS TO VOLUME DISCOUNT DEBATE
[vc_row][vc_column][vc_column_text]The segment focused on medical technology companies providing volume discounts to private hospitals when they choose to use the devices they make, such as pacemakers, for their patients. The 7.30 Report alleged, as a result of the volume discounts, that private hospitals were receiving between 5-50% off the value of the medical devices as either a repayment or in-kind.
To support the allegations, 7.30 Report spoke with a legal expert who said he believed the rebates provided to hospitals were, in his opinion, equivalent to “kickbacks”, and accused medtech innovators of being anti-competitive.
However, PulseLine understands the practice of rebates was considered by the Australian Competition and Consumer Commission (ACCC) in 2003, with the regulator being of the opinion that the conduct would not raise concerns under competition law.
The Medical Technology Association of Australia’s (MTAA) members abide by a Code of Practice which states that it “…ensures companies in the medtech industry conduct their arrangements with healthcare professionals in a transparent manner so decision-making on selection and use of products by doctors, or hospital purchasing departments, is based solely on the quality and suitability of the product, not on inducements (perceived or otherwise) paid to the doctor or any other decision-maker.”
While MTAA Code of Practice isn’t legislated, it has been used by the industry as a best practice guide for all medical technology companies to follow and has issued fines for breaches of the Code.
MTAA’s CEO, Ian Burgess, was interviewed by 7.30 Report, and said the industry opposed any action to constrain surgeon choice, whether it was being done by a private hospital or private health insurer.
“There should be one, and only one, consideration when deciding on which medical device to use and that is: which is in the best interest of the patient,” Mr Burgess said.
“MTAA rejects the characterisations made on the 7.30 Report of rebates being anti-competitive. The practice of providing rebates are in line with normal commercial arrangements that can apply across a number of markets in our economy”.
Mr Burgess confirmed MTAA does not have access to specific information about how suppliers and hospitals negotiate the supply of devices, and said he did not believe the association should be involved in individual discussions with medtech companies regarding their commercial arrangements.
The 7.30 Report story comes as public scrutiny continues over the rise in private health insurance premiums. In recent years the medtech industry has found itself the target of other special interest groups looking to shift the public’s focus away from their own practices as it relates to health insurance premium rises.
Just last year the medtech industry co-signed an Agreement with the Commonwealth Government that saw medtech innovators agree to cut their own prices by $1.1 billion, over four years, in order to have those cuts passed on as savings to Australians signed up for private health insurance.
PulseLine understands those cuts have already been credited with delivering the lowest premium increases for Australians in 17 years.[/vc_column_text][/vc_column][/vc_row]
3D PRINTING MEDTECH
[vc_row][vc_column][vc_column_text]Implantcast’s vast manufacturing and clinical knowledge base now joins LifeHealthcare’s already comprehensive One At A TimeTM portfolio. A key addition is the inclusion of the only TGA approved silver coating for joint replacements. Silver coatings have been shown to mitigate the risk of infection induced implant loosening and more severe complications that can lead to revision surgery or in the worst case, amputation.
The One At A TimeTM process has been in operation now for almost three years and has demonstrated significant clinical history and has been used in cranial, complex orthopaedic and spine cases. The process utilises X-ray and CT data for implant design and surgical approach optimisation to potentially reduce surgical complications such as reoperation, implant migration, subsidence or delayed fusion, and total procedural cost.
Whilst the design and production of a PSI from request to implantation has many ‘behind the scene’ stages, the surgeon’s inputs are relatively concise.
The process starts with scans and surgeon prescription that outlines the patient’s pathology. The scan data is uploaded and then converted into a 3D virtual model in preparation for a design planning session.
The design planning session is where the surgical plan and implant requirements are defined in detail. Utilising specialised software, implants and instruments can be designed in real time. This allows the surgeon to manipulate the PSI design on the fly to optimise their surgical plan and outcome.
Following the design planning session, a report is produced that outlines the surgical plan and implant design for the surgeon to approve. In addition to surgeon design approval, a PSI requires financial approval to proceed to manufacture.
LifeHealthcare has dedicated internal resources focused on the regulatory and reimbursement process for PSIs that aid in streamlining approval.
LifeHealthcare also understand the challenges of treating patients with complex needs, and work with payers on healthcare economics to ensure the most appropriate treatment.
Once design and financial approval is received, the part goes into production. Production involves raw manufacturing, finishing, cleaning and quality assurance.
A team of highly-trained and specialised employees are required for each element of this process. Much of the work undertaken in the finishing department is done manually as machinery does not always achieve the best result, this is especially true when it comes to polishing of joint articulation surfaces. Once ready, the PSI is then shipped to LifeHealthcare.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_video link=”https://vimeo.com/268913934″][/vc_column][/vc_row]
DA VINCI ROBOTS ENTER HOSPITALS
Distributed by Healthcare Company Device Technologies, the purchase will be a huge win for Victoria’s hospital system, expanding the existing Epworth fleet of three third generation platforms to six fourth generation systems across four hospitals. This will be the second upgrade and expansion of Epworth’s da Vinci Surgery program since 2003, when they purchased the first da Vinci Standard system in Australia.
Robotic technology is becoming an increasingly common site in Epworth hospitals, ranging from surgical da Vinci robots in operating theatres to TUG transport robots reducing manual handling across the hospital.
The da Vinci Surgical systems are sophisticated technology platforms, designed to enhance minimally invasive operations. Their design allows surgeons, through 3D vision and wristed instrumentation with intuitive, sensitive motion controls, to reach difficult areas in the human body and carry out complex procedures through minor incisions.
Since 2003, the technology has grown in its application and is now utilised in Urological Surgery, Cardiothoracic Surgery, General Surgery, Gynaecological Surgery and ENT surgery. It was recently used by Dr Ben Dixon, who performed Australia’s first paediatric robotic surgery on six-year-old Freyja Christiansen earlier this year.
The introduction of six more fourth generation da Vinci systems into the Victorian healthcare system was made possible by donations to the Epworth Medical Foundation.
In addition to increasing access to robotic surgery for patients, they will also turn Victoria into a hub for clinical research and robotic training, which will enable more surgeons to learn how to use these robots and apply their skills beyond the operating theatre.
“We were the first to bring da Vinci to this country, we fell behind a little in recent times and now we want to be back at the forefront in terms of technology, access, research and patient outcomes” Epworth said of the sale announcement.
Both Epworth Group Chief Executive, Dr Lachlan Henderson and Device Technologies General Manager for Robotic Surgery, Heath Priestly, said the landmark purchase was an important step forward for Victorian healthcare.
“Our significant investment in da Vinci Surgical technology is consistent with Epworth’s ongoing commitment to deliver quality innovative healthcare to patients in Victoria,” Dr Henderson said.
“Its 15 years since the first patient was treated for Prostate cancer with a da Vinci system at Epworth Hospital in Richmond. All this time later, and it feels like we are just beginning,” added Mr Priestly.
“These 6 new da Vinci systems, all with 4th generation technology, will open up a world of possibilities for clinicians and their patients.”
PRIVATE HEALTH INSURANCE FRUSTRATIONS CONTINUE
[vc_row][vc_column][vc_column_text]The ACCC’s call comes as the regulator released its annual report into the private health insurance industry. The report outlines the need for the industry to makes its products more consumer friendly by providing reliable and transparent information about product features and changes to private health insurance policies.
The report illustrates consumers’ growing frustration with the complexities of private health insurance policies and expected out-of-pocket costs that are leading to the regulator receiving increased complaints about policies, and signs that more consumers are choosing to abandon their hospital policies.
“Consumers rely on private health funds engaging with them honestly, so they can avoid unexpected out-of-pocket costs and make informed decisions about the policies they choose,” ACCC Acting Chair Delia Rickard said.
“However, we’ve found it’s currently very difficult for consumers to properly compare and choose policies for their needs, meaning many are shocked when presented with expensive bills for medical services and products they thought they were covered for.”
The ACCC also found that rising private health insurance premiums remained a significant issue for consumers. The report showed that, in response to higher prices, consumers were shifting to lower-cost policies with greater exclusions or a higher excess, or simply dropping their cover altogether.
The ACCC’s report comes as the federal government focuses in on reforms to the sector in and effort to make private health insurance simpler and more affordable. As part of the reforms announced at the end of last year, the government will require private health insurance providers to categories their policies into a ‘gold/silver/bronze/basic’ arrangement.
The government’s reforms have already seen Australia’s medical technology (medtech) innovators accept a $1.1 billion cut, over four years, to help reduce the cost of private health insurance for consumers.
Medtech sector leaders were in Canberra last week for meetings with government and opposition decision-makers as part of an ongoing effort to ensure every cent of the $1.1 bullion cut is directly passed through to consumers.
The ACCC has said it will continue to closely consider competition and consumers aspects of any government reforms to the sector.[/vc_column_text][/vc_column][/vc_row]
MEDTRONIC’S OMAR ISHRAK | VALUE-BASED HEALTHCARE
MEDTECH | Creating Local Jobs for a Healthier Australia
IMPACT OF MEDTECH 2018
[vc_row][vc_column][vc_column_text]The event, which has almost become an annual fixture for the industry, saw the who’s-who in Australian medtech rubbing shoulders with policy-makers, staffers, senators and members.
The evening was kicked off by MTAA board chairman, Gavin Fox-Smith, who welcomed more than 100 attendees to the private dining room. Throughout the evening Fox-Smith invited a number of patients and surgeons to the stage to share their amazing stories of how medical technology changed, and in some instances, saved their lives.
One of those asked to speak was Dianne Sloan, whose husband, Brian, suffered a devastating ischaemic stroke in April of this year. Brian’s surgeon said the stroke would normally have either killed him or left him in a vegetative state. But thanks to the Trevo thrombectomy performed by the surgeon, Brian was able to make an excellent recovery, leaving hospital shortly after, and returning to a fulfilling life with his wife and grandchildren.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_single_image image=”2077″ img_size=”full”][vc_separator][/vc_column][/vc_row][vc_row][vc_column width=”1/2″][vc_single_image image=”2076″ img_size=”full”][/vc_column][vc_column width=”1/2″][vc_single_image image=”2078″ img_size=”full”][/vc_column][/vc_row][vc_row][vc_column][vc_separator][vc_column_text]Lining the walls of the parliamentary private dining room were the various MTAA member companies’ displays, which showed off the very latest advancements in medical technology. PulseLine spotted Stryker’s Maurice Ben-Mayor giving a hands-on demonstration Stryker’s assisted surgery tool aka ‘Mako’ to Labor’s Shadow Minister Jason Clare.
After a busy Parliamentary sitting day, Shadow Treasurer Chris Bowen dropped by, and was seen chatting with the MTAA’s Ian Burgess and former NSW Deputy Premier John Watkins. Bowen was later joined by Shadow Communications Minister Michelle Rowland, and newly sworn-in Senator and former NSW Premier Kristina Keneally.
A big hit with MPs and Senator’s was Alcon’s Ophthalmology Surgery Virtual Reality Technology. PulseLine snapped photos of the Member for Bennelong John Alexander and Member for Makin Tony Zappia being guided through the experience by Robyn Chu and her team, as the Member for North Sydney Trent Zimmerman watched on.
The event was topped off with addresses from both Minister for Health Greg Hunt, and Shadow Minister for Health Catherine King.
It’s safe to say that this is definitely an event to put in your calendar for next year.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_single_image image=”2083″ img_size=”large”][/vc_column][/vc_row][vc_row][vc_column][vc_separator][vc_single_image image=”2084″ img_size=”large”][vc_separator][/vc_column][/vc_row]
MEDTECH IN CANBERRA
[vc_row][vc_column][vc_column_text]Walking the corridors of power, medtech leaders, industry innovators and patients were among the majority of faces filling Parliament House. Led by the Medical Technology Association of Australia’s (MTAA) CEO, Ian Burgess, the leading voices of medtech had the chance to be heard en masse by some of the nation’s most influential ministers, shadow ministers and policy-makers.
The pilgrimage was part of the industry’s effort to strengthen ties between medtech and government, as well as to highlight the economic and life-changing benefits medtech delivers to Australians.
On Tuesday, industry leaders met with a number of senators and members, including Senator Kristina Keneally, Senator Amanda Stoker, Shadow Minister Ed Husic MP, and medtech champion John Alexander MP to name a few.
On the agenda were patient implant cards, value-based healthcare, and the Agreement, co-signed by the MTAA and the Federal Government, to help lower Private Health Insurance (PHI) premiums for Australians.[/vc_column_text][vc_row_inner][vc_column_inner][vc_single_image image=”2094″ img_size=”full”][vc_separator][/vc_column_inner][/vc_row_inner][vc_row_inner][vc_column_inner width=”1/2″][vc_single_image image=”2095″ img_size=”full”][/vc_column_inner][vc_column_inner width=”1/2″][vc_single_image image=”2096″ img_size=”full”][/vc_column_inner][/vc_row_inner][vc_separator][vc_row_inner][vc_column_inner][vc_single_image image=”2093″ img_size=”full”][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row][vc_column][vc_separator][vc_column_text]Speaking to PulseLine MTAA’s Ian Burgess said the industry was pleased with the positive response from MPs and Senators during the delegation’s one-on-one meetings.
“These meetings with law-makers were an important opportunity for us to press the need for government regulations to keep pace with technology advancements in order to allow Australians to have access to the latest medical technology at the best value,” Mr Burgess said.
“Unfortunately, the prostheses list has not kept pace with these advances, meaning major health issues like atrial fibrillation, which affects 460,000 Australians, isn’t able to be treated with the latest catheter ablation technology because the prostheses list does not currently provide for the reimbursement of non-implantable devices.”
PulseLine understand the MTAA’s board, led by Johnson & Johnson’s Gavin Fox-Smith, also met for one-on-one discussions with both Minister for Health, Greg Hunt, and Shadow Treasurer, Chris Bowen.
As the government and opposition both move into the election season, the board was determined to ensure the co-signed Agreement between industry and government is implemented in full, and the $1.1 billion in cuts to the industry are passed on to Australian consumers.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_single_image image=”2097″ img_size=”full”][/vc_column][/vc_row]
