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Articles

People

January 24, 2014

Jim Terwilliger, president of Indiana University Health’s Methodist and University hospitals, will step down March 1. He had led IU Health’s two flagship hospitals since July 2012, when longtime executive Sam Odle retired. Dennis Murphy, whom IU Health hired to fill Odle's other job of chief operating officer, decided to replace Terwilliger. Dr. Jeff Sperring, CEO of IU Health’s Riley Hospital for Children, will serve as interim president of Methodist and University hospitals, while IU Health conducts a search for a permanent replacement.

Indianapolis-based WellPoint Inc. named Amy Cheslock vice president of payment innovation for provider engagement and contracting within the company’s commercial and specialty business division. She previously was vice president of provider engagement and contracting for WellPoint’s central region markets and enterprise cost-of-care initiatives. Cheslock succeeds Jill Rubin Hummel who, last month, was named president of WellPoint’s affiliated health plan in Connecticut.

HETRICK: You say you want a reputation? Don’t do it this way

January 23, 2014

We can now measure the dollar value of a good reputation. Unfortunately, Indiana is doing a lot to hurt its.

LATZ, VANAGS, DAVIS: Trade is crucial to Indianapolis’ future

January 23, 2014

Over the past two decades, Indianapolis has become a vibrant metropolitan area, powering growth throughout Indiana. The next phase for the Indy region requires not just statewide progress, but global integration.

Reorganization leaves Methodist Hospital prez without job

January 23, 2014

Jim Terwilliger had led IU Health’s two flagship hospitals since July 2012, when longtime executive Sam Odle retired. The CEO of Riley Hospital for Children will replace him temporarily.

Hopelessly divided Congress agrees on one thing: Cutting payments to providers

January 20, 2014

Congress’ recent willingness to play hardball with providers is driving providers to cautiously embrace concepts—like pay-for-performance and keeping patients out of the hospitals—they have long resisted.

Company news

January 20, 2014

The folks at Lumosity, the San Francisco company that tries to improve human brain cognition, must have cheered when they saw this study partly led by a researcher at the Indiana University School of Medicine. The study, published this month by the Journal of the American Geriatrics Society, found that seniors who underwent exercises meant to boost mental sharpness still showed benefits up to a decade later. The study involved 2,800 seniors living independently in Indianapolis and six other regions. Lumosity, which makes a smartphone app to exercise your brain, is one of numerous programs, both online and offline, that are meant to boost mental sharpness in older adults.

Over-the-counter medications for common colds and allergies, such as DayQuil, could become harder to obtain under an Indiana House bill introduced this month. According to the Associated Press, HB-1106, authored by Rep. Rebecca Kubacki, R-Syracuse, would make medication containing ephedrine and pseudoephedrine a schedule III drug, which means it couldn’t be purchased without a doctor’s visit and prescription. An existing law puts a limit on how much ephedrine and pseudoephedrine can be purchased in a day, month or year. But, Kubacki said she doesn’t think the law goes far enough. However, Dr. Richard Feldman, chairman of legislation for the Indiana Academy of Family Physicians, said the medical community prefers the existing legislation to Kubacki’s new bill. “We think it’s adequate; we don’t want any more restrictions,” Feldman said. He added, “The last thing that the doctors I talked to want is to be overrun with patient visits for an over-the-counter drug that should remain over-the-counter, rather than seeing patients who deserve their attention.”

WellPoint Inc.’s core operations turned out more profit than the company predicted, the Indianapolis-based health insurer disclosed in a Jan. 13 securities filing. WellPoint raised its 2013 profit forecast to $8.52 per share, up 12 cents from a previous forecast of $8.40 per share. The company has yet to close its books on 2013. It will reveal its actual 2013 financial results Jan. 29. The new forecast roughly matches what Wall Street analysts were expecting. A survey of 23 analysts by Thomson Reuters found an average 2013 profit forecast of $8.51 per share, even before the disclosure. Both WellPoint’s and analyst forecasts exclude a variety of special charges, such as investment gains, the early extinguishment of debt, a favorable tax ruling and a charge related to WellPoint’s sale of its 1-800-Contacts subsidiary. When those items are included, WellPoint’s 2013 profit would total $8.20 per share, according to Monday’s disclosure. In October, WellPoint predicted full-year profit would total $8.45 per share. But that was before the 54-cent-per-share charge for the 1-800-Contacts sale was announced.

In late December 2013, the Health Foundation of Greater Indianapolis gave $440,376 to three organizations that will help Hoosiers navigate the Obamacare health insurance exchange. A grant of $270,000 was awarded to Indiana 2-1-1, a call-in service for obtaining information about social assistance, to maintain detailed information about the exchange navigators and application counselors that have been approved by the government to help exchange customers. A sample conducted in May 2013 showed that 38 percent of callers to Indiana 2-1-1 have at least one person in the household without health insurance. The Indiana Primary Health Care Association will receive $70,376 to train 26 certified Navigators to provide continuing education to at least 126 state-certified Navigators in state-funded and federally qualified health centers. Because of the cost of the federal certification process, many state-funded health centers, especially in rural areas, have been unable to certify their enrollment staff. Also, $100,000 was granted to Eskenazi Health to extend its media and outreach campaign through the end of the first open enrollment period in March 2014. The campaign promotes Eskenazi Health’s toll-free Navigator Call Center (1-855-202-1053), which answers consumer questions and provides assistance in obtaining health insurance through the Obamacare exchanges.

ALTOM: Don’t expect Amazon’s drones anytime soon

January 16, 2014

The retail giant’s futuristic delivery plan has some monumental obstacles to overcome.

WESTERHAUS-RENFROW: Diversity still has bad rap in Indiana

January 14, 2014

What “D” word is used most sparingly or avoided altogether by Hoosier political, business and civic leaders when sharing how to position Indiana for growth and success? a) debt, b) deflation, or c) diversity?

KETZENBERGER: With religion, to welcome one is to welcome all

January 14, 2014

I read recently that a proposed statue of a goat-headed figure of Satan, known as Baphomet, is a bad idea on the grounds of Oklahoma’s Capitol.

BOHANON: Cautious concerning government initiatives

January 14, 2014

Free-market economists are skeptical of government programs designed to promote economic development.

SHELLA: Stars might align for old deals to happen

January 14, 2014

Dwayne Sawyer just set a new world record for quickest rise and fall of an Indiana statewide elected official. His tenure as auditor fell just short of four months.

LANOSGA: Got a warrant for my cell phone information?

January 14, 2014

I’ve written a fair bit in these pages about the pitfalls of official secrecy—the often unjustified withholding of information by public agencies at all levels of government.

Lilly needs more R&D successes to counter declining ROI on new drugs

January 13, 2014

Eli Lilly and Co.’s success at moving an experimental migraine medicine forward by using outside companies and capital is good news for this reason: The fundamental business of Big Pharma drug development is in bad shape.

Company news

January 13, 2014

Positive results from a Phase 2 trial in patients convinced Indianapolis-based Eli Lilly and Co. to reacquire an experimental migraine medicine, which goes by the name LY2951742. Lilly aims to conduct a Phase 3 trial, the last stage of testing before it can submit the drug for market approval. The drug was licensed from Lilly in 2011 by Massachusetts-based Arteaus Therapeutics, a company formed at the same time by venture capital firms OrbiMed and Atlas Venture. Lilly did not disclose the financial terms of its deal with Arteaus. However, Lilly will record a fourth-quarter charge of $57.1 million to reflect the reacquisition costs and Lilly’s assumption of ongoing development expenses of the drug. The drug is one of nine experimental drugs Lilly has licensed to outside firms as a way to share the risk of research and development costs. Lilly calls the risk-sharing arrangement with venture capital firms its Capital Funds Portfolio. The migraine medicine is the first one Lilly has reacquired from a participating venture-backed company.

Eli Lilly and Co. needs new drugs to patch a larger-than-expected hole in its revenue. On Jan. 7, the Indianapolis-based drugmaker revised its 2014 revenue forecast. Instead of its longstanding prediction of $20 billion in revenue, Lilly now expects to bring in between $19.2 billion and $19.8 billion. Wall Street analysts expected $19.6 billion, according to 17 estimates compiled by Bloomberg News. Revenue is falling at Lilly after its U.S. patents on antidepressant Cymbalta expired in December. Cymbalta generated $4.99 billion in 2012, but analysts expect its sales to plummet to $1.43 billion this year, according to Bloomberg. Also in March, Lilly will lose patent protection on its osteoporosis drug Evista. Analysts expect Evista sales to drop to $498.6 million this year from nearly $1 billion annually before. Lilly expects its 2014 profit to range between $2.77 and $2.85 per share. Analysts anticipated $2.78.

WellPoint Inc. plans to unwind one of the deals Angela Braly made late in her troubled tenure as CEO of the Indianapolis-based health insurer. WellPoint agreed to sell online contact lens retailer 1-800-Contacts to Boston-based private equity firm Thomas H. Lee Partners LP. WellPoint will also sell Glasses.com, a subsidiary of 1-800-Contacts, to Milan-based Luxottica Group SpA. WellPoint’s new CEO, Joe Swedish, said he wants to focus on its core insurance business. “As we prepare for the coming changes to the health-care system, we are focused on our core growth opportunities across both our commercial and government business segments,” Swedish said in the statement. “Proceeds from this transaction will support our continued capital deployment strategies.” WellPoint bought 1-800 Contacts from private equity firm Fenway Partners in June 2012 for about $900 million. The purchase added to investor anger against Braly. She left the company two months later.

The Indiana Family and Social Services Administration announced Friday it will add 3,400 people to the Healthy Indiana Plan, a health insurance program for low-income Hoosiers. That’s the number of Hoosiers who had been among the 50,000 on the program’s waiting list who reapplied and were deemed eligible. But state officials said they expect 20,000 Hoosiers to apply for HIP by the end of this year. The program, which had been running at about 40,000 participants, will have its enrollment capped this year at 45,000. Gov. Mike Pence is negotiating with the Obama administration to use HIP to expand coverage to all Hoosiers with incomes up to 138 percent of the federal poverty limit. For now, HIP participants cannot have incomes above the federal poverty limit, which is $11,490 per adult or $23,550 for a family of four.

Looks like both sides are wrong about Medicaid

January 13, 2014

New research shows that expanding Medicaid won’t save money, in spite of the claims of Obamacare supporters, but it will provide modest help to patients’ health and pocketbooks, in spite of conservative critics’ contention to the contrary.

Lilly reacquires migraine medicine after encouraging results

January 13, 2014

Positive results from a Phase 2 trial in patients convinced Lilly to reacquire an experimental migraine medicine. Lilly recorded a charge of $57 million to reflect the purchase price and the costs of further development.

EDITORIAL: Forge ahead with preschool

January 9, 2014

Gov. Mike Pence said last month that he wants to help young children from low-income homes start kindergarten “ready for a life of learning.” We applaud that goal, and ask the governor and General Assembly to craft voucher legislation that encourages the highest-quality preschools.

Company news

January 3, 2014

Encore Health Network, a network of health care providers owned by Community Health Network, Indiana University Health and Deaconess Health, has added St. Vincent Health to its fold. The Indianapolis-based network will offer discounted access to St. Vincent doctors and hospitals in the Anderson, Carmel, Fishers, Indianapolis and Kokomo markets. Insurance companies, third-party administrators and employers contract with Encore and its Encircle network products to obtain discounts on medical services.

Indiana University Health and UnitedHealthcare entered the new year without a contract. That would normally mean UnitedHealthcare’s customers would pay higher prices at IU Health’s hospitals and physician offices. But IU Health has decided to still give patients the same "in network" co-pays and deductibles that UnitedHealthcare had negotiated under the expiring contracts, keeping patients’ costs the same until a new deal is reached. IU Health said in a press release it would apply the "in network" discounts only to the patient portions of its bills, not to the portions paid by UnitedHealthcare. The Minnesota-based health insurer first notified its customers on Dec. 2 that its contracts with IU Health could expire at year end. Such contracts typically shave 30 percent or more off the list prices of a hospital system’s services. The contract dispute could affect the roughly 400,000 Hoosiers that have employer-based or individually purchased insurance with UnitedHealthcare. That represents about 12 percent of the Indiana commercial market, according to data from Tennessee-based market research firm HealthLeaders-InterStudy. IU Health operates 20 hospitals and employs nearly 1,500 physicians around Indiana.

The U.S. Supreme Court has temporarily blocked an Obamacare requirement that religiously affiliated employers provide health insurance that includes birth control. The decision gives temporarily relief to Catholic plaintiffs that said Obamacare’s requirement to provide contraception coverage violated their religious freedom. In a related case, Indiana-based Franciscan Alliance and other Catholic organizations won a temporary injunction from a federal judge in Indiana, to allow the Supreme Court challenge to play out before Franciscan would be required to provide contraception coverage to its workers via its health insurance plan. "We simply asked that the government not impose its values and policies on plaintiffs, in direct violation of our religious beliefs," said Kevin Leahy, CEO of Franciscan Alliance, which operates three hospitals in the Indianapolis area. The Affordable Care Act required all health insurers to cover contraception at no cost to its health plan members and required all employers with 50 or more workers to provide health insurance to their workers. Both provisions were set to take effect Jan. 1.

Crux of Medicaid showdown is how to fight poverty

January 3, 2014

When Gov. Mike Pence tries next month to negotiate a Medicaid expansion deal in a meeting with the Obama administration, it will be a clash of the conservative and liberal approaches to fighting poverty.

MERRITT: Reconsider nuclear energy

January 3, 2014

Renewable or reliable? That is the unavoidable choice when debating energy policy. For Indiana, you can have one, but not the other.

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