News Release

Contact(s): Javaid Zafar

Javaid@globalhealthoutcomes.org

Global Health Outcomes, Inc. to Benefit from Public and Private Payers Heavy Investments in Health Outcomes As Part of Comparative Effectiveness Research, Health Outcomes and Value-Based Purchasing Initiatives

The $789 Billion American Recovery and Reinvestment Act (ARRA) of 2009 not only provided the U.S. economy the successful “cash for clunkers” program that netted the unprecedented sales of some 700,000 vehicles in an economic downturn, it also gave a boost to the next wave of healthcare innovation; i.e. “comparative effectiveness research and health outcomes initiatives”.

Although the Agency for Healthcare Research and Quality (AHRQ) – housed at the U.S. Department of Health and Human Services (HHS) – was provided with an infusion of cash ($50 Million) under the $400 Billion Medicare Modernization Act of 2003 (MMA) to launch “comparative effectiveness research” many viewed the MMA provision (Section 1013) as a down-payment – less than 1% of the $1 Trillion spent by federal and state governments on healthcare.

The ARRA (b/k/a Economic Stimulus) substantially changed landscape of CER and health outcomes with the infusion of $1.1 Billion to be spent in next two years, divided amongst AHRQ, the National Institute of Health (NIH), and their parent Department (HHS) via the Federal Coordination Council for Comparative Effectiveness Research (FCCCER).  The law also provided some $1.5 Million to the Institute of Health (IOM) to issue a comprehensive report to Congress – submitted in June 2009 – on the therapeutic areas and research priorities the $1.1 Billion should be invested towards.

According to the NIH’s CER implementation plan, the “overarching goal of this program is to improve health outcomes by providing evidence to enhance medical decisions made by patients and their medical providers.”  HHS defines CER as “[t]he conduct and synthesis of systematic research comparing different interventions and strategies to prevent, diagnose, treat and monitor health conditions. The purpose of this research is to inform patients, providers, and decision-makers, responding to their expressed needs, about which interventions are most effective for which patients under specific circumstances. To provide this information, comparative effectiveness research must assess a comprehensive array of health-related outcomes for diverse patient populations. Defined interventions compared may include medications, procedures, medical and assistive devices and technologies, behavioral change strategies, and delivery system interventions.”

Sensing a tidal wave and growing healthcare costs – estimated to reach $4 Trillion in 10-years – private payers are also moving forward with CER initiatives.  For example, The Lewin Group – part of UnitedHealth Group – recently launched its own Center for Comparative Effectiveness Research.  The Center will work with another UnitedHealth Group subsidiary – Ingenix – a data analytics firm with access to millions of patient’s information to assess patient outcomes based on clinical data. 

It’s too early to quantify total long-term investment on part of the public and private sectors towards CER and patient outcomes initiatives however the NIH CER grant awards – $200 Million, up to $1 Million total costs per grantee for up to two years – are scheduled to be announced during the Fall of 2009.  In addition, AHRQ plans to release its request-for-proposals (RFP) during the fall of 2009 for 2010 awards.  GHO predicts that between Q4/2009 – Q4/2010, the CER and health outcomes sub-segment industry will experience a cash infusion of between $500 Million (public dollars) and $1 Billion; when private sector dollars are factored into equation.  Although a small investment in grand scheme of healthcare expenditures, the Congressional Budget Office estimates savings (unique to federal government) deriving from CER at $6 Billion. In conclusion when assessing the $50 Million invested in CER through the MMA, Global Health Outcomes Inc. (GHO) views increased investments under Economic Stimulus and private sector as a significant and positive trend.

The flurry of activities on CER and health outcomes bode well for GHO on two-fronts: (1) index development to measure health outcomes; and (2) strategic analytics consulting to translate meta-analysis into practical use for healthcare markets, policymakers, providers, and investors.

GHO is currently assisting CER grant applicants and is actively seeking opportunities to apply its proprietary strategy to build health outcomes indices unique to CER initiatives as a reliable gauge to monitor patient outcomes.  For more information on GHO products under development please click on http://www.globalhealthoutcomes.org/.

About Global Health Outcomes Inc.
Global Health Outcomes Inc. is a start-up company that is developing disease-based indices that the complex $2 Trillion healthcare market can rely on to make accurate investment decisions. The privately held company is headquartered in New York, USA with a product development office in Chicago, USA.