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Speaker 1: This is a Bloomberg Business Flash call Bloomberg World Headquarters.
Speaker 1: I'm Charlie Holt Stocks Laurel. Let's head right over to
Speaker 1: the first Word breaking news desk for today's afternoon call.
Speaker 1: Here he is Bill Maloney. Good afternoon, Charlie. US stocks
Speaker 1: are under pressure today, with the DAL currently down a
Speaker 1: hundred and ten points, SUPs drop ten and as that
Speaker 1: falls eleven, the small cap six hundreds down three points.
Speaker 1: In the US ten yield at one point five seven percent.
Speaker 1: Nine out of tennesseev sectors are lower, led by losses
Speaker 1: and energy industrials and telecom Fractional games for consumer discretionary
Speaker 1: down transports fall seventy seven, nazerbotechs outperformed Game fourteen, utilities
Speaker 1: drop three, and the vix is higher by eleven percent.
Speaker 1: Down Leaders of the downside included Chevron, x On Mobile,
Speaker 1: and Apple, while Nike, Walmart, and DuPont led to the upside.
Speaker 1: Ro protect Alogy stall as much as eight point one
Speaker 1: percent after its earnings. Well shares of Buffalo Wild Wings
Speaker 1: seerves as much as seven percentage today after an activist
Speaker 1: investor acquired a five point one percent steak. Find me
Speaker 1: someone names such report after the belts to night include Gilead,
Speaker 1: Las Vegas, Sands, Express Scripts, and Texas Instruments. Live on
Speaker 1: the first and breaking newsdask on Bill Maloney, cho all right,
Speaker 1: thank you very much, Bill Maloney. To hear live breaking
Speaker 1: news over your Bloomberg time squaw caaskuu a w K
Speaker 1: on your terminal. I'm Charlie pellout. Dan's a Bloomberg business
Speaker 1: flash now on Bluebird Radio. We take stock of healthcare.
Speaker 1: We call it k B for sure. It's a major
Speaker 1: source of healthcare expenditures. The issue of drug pricing has
Speaker 1: been at the forefront, certainly in the political ground for
Speaker 1: the last few months. I think we're living in a
Speaker 1: very special time in the history of the pharmaceutical industry.
Speaker 1: Before we start any pharmaceutical discovery, we want to understand
Speaker 1: the patient biology for three percent of all pilot next
Speaker 1: to start actually get a drug of food. It's a
Speaker 1: very hard thing to do. Bloomberg takings to healthcare and
Speaker 1: focus on Bloomberg radios, the price the cost of healthcare
Speaker 1: in focus. Joining us now Susan Devour, President chief executive
Speaker 1: of Premiere. Premiere, of course one of the leading provider
Speaker 1: driven healthcare performance improvement companies. Susan joins us now. Susan,
Speaker 1: thanks very much for being with us. Thank you tell
Speaker 1: us a little bit about a Premiere and the quest too,
Speaker 1: as you describe it in many of your your articles,
Speaker 1: the prescription to fixed healthcare. How does Premiere fit in? So,
Speaker 1: Premiere is an alliance of healthcare systems. We work with
Speaker 1: secent of the hospitals and health healthcare systems around the
Speaker 1: country trying to drive quality improvement, cost reduction, safety improvement,
Speaker 1: and really help healthcare systems transform the way they're taking
Speaker 1: care of the millions of patients in this country. And
Speaker 1: of course a big part of that is UH drug prices.
Speaker 1: Drug costs represent about four percent of the United States
Speaker 1: three trillion dollar annual health expenditure. They're growing rapidly, total
Speaker 1: drug spending up twelve point two percent last year. As
Speaker 1: you point out in a recent analysis, you are have
Speaker 1: a lot of insight and suggestions here. I'm particularly interested
Speaker 1: in how generic drug price increases are contributing to the
Speaker 1: growth in drug spending. So thank you for the question,
Speaker 1: and at Premiere we're focused every day on on the
Speaker 1: cost of not only drugs, but medical devices and the
Speaker 1: overall cost of care. And when you look at drugs spending,
Speaker 1: as you said, UM, it's at at one of the
Speaker 1: highest levels it's been at in decades. And we really
Speaker 1: think it Premiere the opportunity to bring competitive friction UH
Speaker 1: to the drug marketplace. UM. Pushing along faster FDA approval,
Speaker 1: getting faster adoption, of continuing adoption of in erics, and
Speaker 1: also of biosimilar drugs, bringing transparency to the industry, all
Speaker 1: of those things we think will be helpful in bringing
Speaker 1: drug prices down over time. Do you think that the
Speaker 1: federal government should be able to negotiate drug prices? You know,
Speaker 1: at Premiere, we don't think price controls work. We think
Speaker 1: it's very hard for government to make those clinical decisions
Speaker 1: or intervene in those clinical decisions. We also don't think
Speaker 1: that they can work rapidly enough to keep up with
Speaker 1: what it takes to bring new drugs to market and
Speaker 1: to evaluate the clinical effectiveness of them. So we don't
Speaker 1: think price controls work, and a Premiere, we don't think
Speaker 1: reimportation works. What we think works is bringing competitive friction
Speaker 1: speeding up the approval process, educating consumers and educating providers
Speaker 1: on the effectiveness of these generics and biosimilars, and we
Speaker 1: think those things work. You know, you've also been appounding
Speaker 1: the table about how the Affordable Care Act has affected hospitals,
Speaker 1: and you want to reset the button on pay for
Speaker 1: quality programs, how they're implemented for hospitals, What are they
Speaker 1: and why are they contributing to costs? So, actually, at Premiere,
Speaker 1: we think that there's a lot of bipartisans support, and
Speaker 1: in an election year that's important for these forward looking
Speaker 1: forms of paying for health care. So the idea that
Speaker 1: you as a consumer would have UM your providers have accountability,
Speaker 1: your doctors, your hospitals, your nursing homes, have connected and
Speaker 1: coordinated accountability for the overall clinical efficacy and cost of
Speaker 1: your care, we think has broad bipartisan support. And so
Speaker 1: all these new models that are being rolled out by
Speaker 1: the centers for Medicare and Medicaid, whether it's bundling payments together,
Speaker 1: whether it's something called an accountable care organization, these are
Speaker 1: all designed to try to bring coordination and interoperability of
Speaker 1: technology systems and actually um patient involvement in the overall
Speaker 1: coordination of care delivery. I want if you could talk
Speaker 1: a little bit about prescription drugs, because prescription drugs are
Speaker 1: the most expensive in the United States there twice as
Speaker 1: high as prescription drug prices in the United Kingdom, Australia
Speaker 1: or Canada. Well, I do think and at Premiere we
Speaker 1: see because we do um GPO contracts and we try
Speaker 1: to bring competitive friction to the contracting with pharmaceutical companies.
Speaker 1: But we do see um that the United States funds
Speaker 1: a lot of the innovation and a lot of the
Speaker 1: cost of research and development to bring drugs to market
Speaker 1: UM and we do see that with competition and with
Speaker 1: the use of generics and biosimilars, you can see very
Speaker 1: significant reductions in the price. So if we can get
Speaker 1: generics to the market faster, very often they have an
Speaker 1: eight or nine reduction in the price of the drug.
Speaker 1: If we can get these biosimilars to market like they've
Speaker 1: gotten them to market in Europe, uh, you'll see a
Speaker 1: thirty reduction in the price of those drugs. So again
Speaker 1: we think it's having clinical data on how these equivalent
Speaker 1: drugs work. Speeding up the f d A. R f
Speaker 1: d A is a very long process and cycle time,
Speaker 1: so so we think there are a lot of things
Speaker 1: that can be done to improve this Sits DeVore, President
Speaker 1: CEO of Premiere on the front lines of dealing with
Speaker 1: the health care system, and Kathie Hayes along with PM Fox,
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