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GLG News by General and Acute Care Hospital Economic Experts

Glen McDaniel, MS, MBA, President and Chief Executive Officer
Glen McDaniel, MS, MBA, President and Chief Executive Officer
GM Global
Analysis of: New York non-profit hospitals in the red (www.fiercehealthcare.com)
• Closer scrutiny of non-profits by regulatory agencies including the IRS• Non-profits might assume a more political stance and join advocacy groups, support PACs (as legally possible) • Better (more accurate, realistic) accounting• Deliberate attempt to attract sharp CEOs focused...
Glen McDaniel, MS, MBA, President and Chief Executive Officer
Glen McDaniel, MS, MBA, President and Chief Executive Officer
GM Global
Analysis of: Pfizer to Cut Its U.S. Sales Force by 20% (www.nytimes.com)
Possible implications of these cuts are:-  Other pharmaceutical companies following suit-  No effect on drug prices in the short term-  Better trained, more well rounded pharmaceutical reps-  Larger profits for the pharmaceutical companies
Glen McDaniel, MS, MBA, President and Chief Executive Officer
Glen McDaniel, MS, MBA, President and Chief Executive Officer
GM Global
November 27, 2006
P4P: Opportunities Abound
Analysis of: Pay-for-Performance Plans Now Common Among HMOs (www.nlm.nih.gov)
1. CMS and HMOs started P4P, initially, as experimental projects, but the concept is no longer novel and will be more widely adopted in the near future 2. P4P is here to stay so providers should seek a way to be involved in framing the program rather than fighting it, as some are currently...
Glen McDaniel, MS, MBA, President and Chief Executive Officer
Glen McDaniel, MS, MBA, President and Chief Executive Officer
GM Global
November 24, 2006
As HCA goes, so goes....
Analysis of: HCA being sold in $33B deal (www.bizjournals.com)
HCA in its various forms has been known to reinvent itself over the years, sometimes in not totally expected ways. What happens after this buyout will be predictive of what could happen in the rest of the industry.Look for:Further buyouts of other hospital companiesWays in which HCA deal with flat admissions...
Glen McDaniel, MS, MBA, President and Chief Executive Officer
Glen McDaniel, MS, MBA, President and Chief Executive Officer
GM Global
Analysis of: Wal-Mart Expands Generic Drug Program (www.newsinferno.com)
Critics claim1. This is just a PR stunt2. The drugs affected are limited in number3. Cash prescriptions amount for a small proportion of prescriptions so the total effect will be minimal from consumers' perspectiveWell, to place these claims in perspective:1. The expansion to 38 states and addition...
Glen McDaniel, MS, MBA, President and Chief Executive Officer
Glen McDaniel, MS, MBA, President and Chief Executive Officer
GM Global
Analysis of: Merck to Outsource Some Work to India (www.chron.com)
1. Drugs could get to market faster.2. Because of labor and other cost efficiencies resulting from outsourcing, savings could be passed on to the consumer.3. The manufacturer with the most efficient operation could capture significant market share.4. It's not all about cost savings-consider the test...
Glen McDaniel, MS, MBA, President and Chief Executive Officer
Glen McDaniel, MS, MBA, President and Chief Executive Officer
GM Global
Analysis of: Community-Associated Clostridium difficile Increasing, Often Not Linked to Antimicrobial Use (www.medscape.com)
The fact that the incidence of community associated C diff infection is increasing and that many of these cases are not associated with antibiotic use or recent hospitalization is of concern epidemiologically. Continued infection is important to all of society because it will affect labor productivity,...
Glen McDaniel, MS, MBA, President and Chief Executive Officer
Glen McDaniel, MS, MBA, President and Chief Executive Officer
GM Global
Analysis of: Roche Diagnostics Announces Nationwide Recall on Medical Device Used to Determine Blood Clotting Time (www.fda.gov)
The recall by Roche could have far reaching effects. 1. Patients who ignore the recall could undermedicate themselves with anticoagulant meds and end up developing life endangering clots2. Patients might medicate themselves without testing their clotting time at all- this could cause undermedication...
Glen McDaniel, MS, MBA, President and Chief Executive Officer
Glen McDaniel, MS, MBA, President and Chief Executive Officer
GM Global
Analysis of: FDA Approves New Treatment for Diabetes First in a New Class of Diabetes Drugs (www.fda.gov)
Junevia offers real hope in the treatment of diabetes for several reasons:-  the method of action is different from current meds-  the side effects are minimal compared to medications of similar efficacy-  it offers a choice of meds since it can be used in combination-  it should be...
Glen McDaniel, MS, MBA, President and Chief Executive Officer
Glen McDaniel, MS, MBA, President and Chief Executive Officer
GM Global
October 27, 2006
P4P makes sense
Analysis of: MEDICARE ADDS PERFORMANCE-BASED PAYMENTS FOR PHYSICIANS (www.cms.hhs.gov)
The major implication is that providers should be paid based on the quality of service they provide. Initially providers will not be penalized for inferior or mediocre service, but as P4P becomes more popular providers will have to practice more in line with evidence based medicine.

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