04-December-2008

“It is clear that there is enormous new energy in Washington, particularly related to health care — and there is a real urgency to act in 2009,” Ed Dougherty of B&D; Consulting said in his message at a LifeScience Alley event in Minneapolis, Minn., according to Finance-Commerce.com.

The Obama administration is not only committed to health care reform but is empowered to carry out its agenda, Dougherty said, noting that the 111th Congress will give the president the largest majority that any U.S. executive has enjoyed since 1993-94.

One major change that companies can expect to see, either next year or in early 2010, is being billed as the Comparative Effectiveness Institute, Finance-Commerce.com reported. Historically, when companies came up with a new technology or drug to deliver care, all they had to produce was clinical data to show its efficacy. Now, this new regulatory body will want to evaluate economic data — in other words, how much the new technology would cost Medicare and how much cost savings it would bring over the long term.

“Companies have to do economic analysis to see whether the data will be robust to secure coverage and payment,” Dougherty explained. “This is not required now. This is a biggie.” He cautioned that the cost of collecting such data may prove to be a barrier to entry for small companies and said this issue of economic analysis in general is of concern to the health care industry.

Dougherty noted that the goal of the administration, through such an entity as the Comparative Effectiveness Institute, is to eliminate waste and contain costs. The changes that will be ushered in, he added, will not revolve around big, new programs but rather process improvements.