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

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<v Speaker 1>Global business news twenty four hours a day at Bloomberg

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<v Speaker 1>This is a Bloomberg Business Flash call Bloomberg World Headquarters.

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<v Speaker 1>I'm Charlie Holt Stocks Laurel. Let's head right over to

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<v Speaker 1>Here he is Bill Maloney. Good afternoon, Charlie. US stocks

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<v Speaker 1>are under pressure today, with the DAL currently down a

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<v Speaker 1>hundred and ten points, SUPs drop ten and as that

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<v Speaker 1>falls eleven, the small cap six hundreds down three points.

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<v Speaker 1>In the US ten yield at one point five seven percent.

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<v Speaker 1>Nine out of tennesseev sectors are lower, led by losses

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<v Speaker 1>and energy industrials and telecom Fractional games for consumer discretionary

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<v Speaker 1>down transports fall seventy seven, nazerbotechs outperformed Game fourteen, utilities

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<v Speaker 1>drop three, and the vix is higher by eleven percent.

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<v Speaker 1>Down Leaders of the downside included Chevron, x On Mobile,

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<v Speaker 1>and Apple, while Nike, Walmart, and DuPont led to the upside.

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<v Speaker 1>Ro protect Alogy stall as much as eight point one

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<v Speaker 1>percent after its earnings. Well shares of Buffalo Wild Wings

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<v Speaker 1>seerves as much as seven percentage today after an activist

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<v Speaker 1>investor acquired a five point one percent steak. Find me

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<v Speaker 1>someone names such report after the belts to night include Gilead,

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<v Speaker 1>Las Vegas, Sands, Express Scripts, and Texas Instruments. Live on

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<v Speaker 1>the first and breaking newsdask on Bill Maloney, cho all right,

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<v Speaker 1>thank you very much, Bill Maloney. To hear live breaking

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<v Speaker 1>news over your Bloomberg time squaw caaskuu a w K

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<v Speaker 1>on your terminal. I'm Charlie pellout. Dan's a Bloomberg business

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<v Speaker 1>flash now on Bluebird Radio. We take stock of healthcare.

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<v Speaker 1>We call it k B for sure. It's a major

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<v Speaker 1>source of healthcare expenditures. The issue of drug pricing has

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<v Speaker 1>been at the forefront, certainly in the political ground for

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<v Speaker 1>the last few months. I think we're living in a

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<v Speaker 1>very special time in the history of the pharmaceutical industry.

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<v Speaker 1>Before we start any pharmaceutical discovery, we want to understand

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<v Speaker 1>the patient biology for three percent of all pilot next

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<v Speaker 1>to start actually get a drug of food. It's a

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<v Speaker 1>very hard thing to do. Bloomberg takings to healthcare and

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<v Speaker 1>focus on Bloomberg radios, the price the cost of healthcare

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<v Speaker 1>in focus. Joining us now Susan Devour, President chief executive

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<v Speaker 1>of Premiere. Premiere, of course one of the leading provider

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<v Speaker 1>driven healthcare performance improvement companies. Susan joins us now. Susan,

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<v Speaker 1>thanks very much for being with us. Thank you tell

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<v Speaker 1>us a little bit about a Premiere and the quest too,

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<v Speaker 1>as you describe it in many of your your articles,

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<v Speaker 1>the prescription to fixed healthcare. How does Premiere fit in? So,

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<v Speaker 1>Premiere is an alliance of healthcare systems. We work with

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<v Speaker 1>secent of the hospitals and health healthcare systems around the

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<v Speaker 1>country trying to drive quality improvement, cost reduction, safety improvement,

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<v Speaker 1>and really help healthcare systems transform the way they're taking

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<v Speaker 1>care of the millions of patients in this country. And

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<v Speaker 1>of course a big part of that is UH drug prices.

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<v Speaker 1>Drug costs represent about four percent of the United States

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<v Speaker 1>three trillion dollar annual health expenditure. They're growing rapidly, total

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<v Speaker 1>drug spending up twelve point two percent last year. As

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<v Speaker 1>you point out in a recent analysis, you are have

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<v Speaker 1>a lot of insight and suggestions here. I'm particularly interested

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<v Speaker 1>in how generic drug price increases are contributing to the

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<v Speaker 1>growth in drug spending. So thank you for the question,

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<v Speaker 1>and at Premiere we're focused every day on on the

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<v Speaker 1>cost of not only drugs, but medical devices and the

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<v Speaker 1>overall cost of care. And when you look at drugs spending,

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<v Speaker 1>as you said, UM, it's at at one of the

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<v Speaker 1>highest levels it's been at in decades. And we really

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<v Speaker 1>think it Premiere the opportunity to bring competitive friction UH

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<v Speaker 1>to the drug marketplace. UM. Pushing along faster FDA approval,

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<v Speaker 1>getting faster adoption, of continuing adoption of in erics, and

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<v Speaker 1>also of biosimilar drugs, bringing transparency to the industry, all

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<v Speaker 1>of those things we think will be helpful in bringing

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<v Speaker 1>drug prices down over time. Do you think that the

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<v Speaker 1>federal government should be able to negotiate drug prices? You know,

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<v Speaker 1>at Premiere, we don't think price controls work. We think

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<v Speaker 1>it's very hard for government to make those clinical decisions

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<v Speaker 1>or intervene in those clinical decisions. We also don't think

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<v Speaker 1>that they can work rapidly enough to keep up with

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<v Speaker 1>what it takes to bring new drugs to market and

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<v Speaker 1>to evaluate the clinical effectiveness of them. So we don't

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<v Speaker 1>think price controls work, and a Premiere, we don't think

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<v Speaker 1>reimportation works. What we think works is bringing competitive friction

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<v Speaker 1>speeding up the approval process, educating consumers and educating providers

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<v Speaker 1>on the effectiveness of these generics and biosimilars, and we

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<v Speaker 1>think those things work. You know, you've also been appounding

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<v Speaker 1>the table about how the Affordable Care Act has affected hospitals,

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<v Speaker 1>and you want to reset the button on pay for

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<v Speaker 1>quality programs, how they're implemented for hospitals, What are they

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<v Speaker 1>and why are they contributing to costs? So, actually, at Premiere,

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<v Speaker 1>we think that there's a lot of bipartisans support, and

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<v Speaker 1>in an election year that's important for these forward looking

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<v Speaker 1>forms of paying for health care. So the idea that

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<v Speaker 1>you as a consumer would have UM your providers have accountability,

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<v Speaker 1>your doctors, your hospitals, your nursing homes, have connected and

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<v Speaker 1>coordinated accountability for the overall clinical efficacy and cost of

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<v Speaker 1>your care, we think has broad bipartisan support. And so

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<v Speaker 1>all these new models that are being rolled out by

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<v Speaker 1>the centers for Medicare and Medicaid, whether it's bundling payments together,

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<v Speaker 1>whether it's something called an accountable care organization, these are

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<v Speaker 1>all designed to try to bring coordination and interoperability of

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<v Speaker 1>technology systems and actually um patient involvement in the overall

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<v Speaker 1>coordination of care delivery. I want if you could talk

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<v Speaker 1>a little bit about prescription drugs, because prescription drugs are

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<v Speaker 1>the most expensive in the United States there twice as

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<v Speaker 1>high as prescription drug prices in the United Kingdom, Australia

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<v Speaker 1>or Canada. Well, I do think and at Premiere we

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<v Speaker 1>see because we do um GPO contracts and we try

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<v Speaker 1>to bring competitive friction to the contracting with pharmaceutical companies.

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<v Speaker 1>But we do see um that the United States funds

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<v Speaker 1>a lot of the innovation and a lot of the

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<v Speaker 1>cost of research and development to bring drugs to market

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<v Speaker 1>UM and we do see that with competition and with

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<v Speaker 1>the use of generics and biosimilars, you can see very

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<v Speaker 1>significant reductions in the price. So if we can get

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<v Speaker 1>generics to the market faster, very often they have an

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<v Speaker 1>eight or nine reduction in the price of the drug.

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<v Speaker 1>If we can get these biosimilars to market like they've

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<v Speaker 1>gotten them to market in Europe, uh, you'll see a

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<v Speaker 1>thirty reduction in the price of those drugs. So again

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<v Speaker 1>we think it's having clinical data on how these equivalent

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<v Speaker 1>drugs work. Speeding up the f d A. R f

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<v Speaker 1>d A is a very long process and cycle time,

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<v Speaker 1>so so we think there are a lot of things

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<v Speaker 1>that can be done to improve this Sits DeVore, President

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<v Speaker 1>CEO of Premiere on the front lines of dealing with

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<v Speaker 1>the health care system, and Kathie Hayes along with PM Fox,

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