Premier's DeVore on Healthcare: Improve Clinical Data (Audio)

Here he is Bill Maloney. Good afternoon, Charlie. US stocks are under pressure today, with the DAL currently down a hundred and ten points, SUPs drop ten and as that falls eleven, the small cap six hundreds down three points. In the US ten yield at one point five seven percent.

Nine out of tennesseev sectors are lower, led by losses and energy industrials and telecom Fractional games for consumer discretionary down transports fall seventy seven, nazerbotechs outperformed Game fourteen, utilities drop three, and the vix is higher by eleven percent. Down Leaders of the downside included Chevron, x On Mobile, and Apple, while Nike, Walmart, and DuPont led to the upside. Ro protect Alogy stall as much as eight point one

percent after its earnings. Well shares of Buffalo Wild Wings seerves as much as seven percentage today after an activist investor acquired a five point one percent steak. Find me someone names such report after the belts to night include Gilead, Las Vegas, Sands, Express Scripts, and Texas Instruments. Live on the first and breaking newsdask on Bill Maloney, cho all right, thank you very much, Bill Maloney. To hear live breaking news over your Bloomberg time squaw caaskuu a w K

on your terminal. I'm Charlie pellout. Dan's a Bloomberg business flash now on Bluebird Radio. We take stock of healthcare. We call it k B for sure. It's a major source of healthcare expenditures. The issue of drug pricing has been at the forefront, certainly in the political ground for the last few months. I think we're living in a very special time in the history of the pharmaceutical industry.

Before we start any pharmaceutical discovery, we want to understand the patient biology for three percent of all pilot next to start actually get a drug of food. It's a very hard thing to do. Bloomberg takings to healthcare and focus on Bloomberg radios, the price the cost of healthcare in focus. Joining us now Susan Devour, President chief executive of Premiere. Premiere, of course one of the leading provider driven healthcare performance improvement companies. Susan joins us now. Susan,

thanks very much for being with us. Thank you tell us a little bit about a Premiere and the quest too, as you describe it in many of your your articles, the prescription to fixed healthcare. How does Premiere fit in? So, Premiere is an alliance of healthcare systems. We work with secent of the hospitals and health healthcare systems around the country trying to drive quality improvement, cost reduction, safety improvement, and really help healthcare systems transform the way they're taking

care of the millions of patients in this country. And of course a big part of that is UH drug prices. Drug costs represent about four percent of the United States three trillion dollar annual health expenditure. They're growing rapidly, total drug spending up twelve point two percent last year. As you point out in a recent analysis, you are have a lot of insight and suggestions here. I'm particularly interested in how generic drug price increases are contributing to the

growth in drug spending. So thank you for the question, and at Premiere we're focused every day on on the cost of not only drugs, but medical devices and the overall cost of care. And when you look at drugs spending, as you said, UM, it's at at one of the highest levels it's been at in decades. And we really think it Premiere the opportunity to bring competitive friction UH

to the drug marketplace. UM. Pushing along faster FDA approval, getting faster adoption, of continuing adoption of in erics, and also of biosimilar drugs, bringing transparency to the industry, all of those things we think will be helpful in bringing drug prices down over time. Do you think that the federal government should be able to negotiate drug prices? You know, at Premiere, we don't think price controls work. We think it's very hard for government to make those clinical decisions

or intervene in those clinical decisions. We also don't think that they can work rapidly enough to keep up with what it takes to bring new drugs to market and to evaluate the clinical effectiveness of them. So we don't think price controls work, and a Premiere, we don't think reimportation works. What we think works is bringing competitive friction speeding up the approval process, educating consumers and educating providers on the effectiveness of these generics and biosimilars, and we

think those things work. You know, you've also been appounding the table about how the Affordable Care Act has affected hospitals, and you want to reset the button on pay for quality programs, how they're implemented for hospitals, What are they and why are they contributing to costs? So, actually, at Premiere, we think that there's a lot of bipartisans support, and in an election year that's important for these forward looking

forms of paying for health care. So the idea that you as a consumer would have UM your providers have accountability, your doctors, your hospitals, your nursing homes, have connected and coordinated accountability for the overall clinical efficacy and cost of

your care, we think has broad bipartisan support. And so all these new models that are being rolled out by the centers for Medicare and Medicaid, whether it's bundling payments together, whether it's something called an accountable care organization, these are all designed to try to bring coordination and interoperability of technology systems and actually um patient involvement in the overall

coordination of care delivery. I want if you could talk a little bit about prescription drugs, because prescription drugs are the most expensive in the United States there twice as high as prescription drug prices in the United Kingdom, Australia or Canada. Well, I do think and at Premiere we see because we do um GPO contracts and we try to bring competitive friction to the contracting with pharmaceutical companies.

But we do see um that the United States funds a lot of the innovation and a lot of the cost of research and development to bring drugs to market UM and we do see that with competition and with the use of generics and biosimilars, you can see very significant reductions in the price. So if we can get generics to the market faster, very often they have an eight or nine reduction in the price of the drug.

If we can get these biosimilars to market like they've gotten them to market in Europe, uh, you'll see a thirty reduction in the price of those drugs. So again we think it's having clinical data on how these equivalent

drugs work. Speeding up the f d A. R f d A is a very long process and cycle time, so so we think there are a lot of things that can be done to improve this Sits DeVore, President CEO of Premiere on the front lines of dealing with the health care system, and Kathie Hayes along with PM Fox, This is Bloomberg. Bloomberg taking Stock is brought to by Time winner Cable Business Class. If your business relies on the phone company, you may be getting less than you deserve.

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