REGULATORY & HEALTHCARE NEWS

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of disease management programmes, and the movement of patients from the inpatient to the outpatient setting. Mr Holmer adds that the increase in managed-care premiums has been 'quite modest'. Drug prices not to blame for rising US health costs. MarketJetter 25: 13. \0 Aug 1998 _02

Direct-to-employer DM programmes pose unique challenges Large us self-insured employers are increasingly

purchasing disease management (DM) programmes for their employees directly, posing unique challenges for DM vendors. Employers tend to have a lower level of medical knowledge than managed-care organisations (MCOs), and the small sizes of some employers can make DM programmes prohibitively expensive and risky for vendors. On the other hand, direct-to-employer initiatives could prove lucrative for those vendors who customise programmes to meet the specific company culture and needs of the employer. This is because employers take a longer-term approach to disease management than MCOs as they are assured of retaining many of their employees for years rather than months. Also, the drive to reduce work absenteeism and disability costs over time tends to attract employers to DM programmes. In contrast, a rapid reduction in medical and drug costs is often the incentive for some MCOs. Employers increasingly purchase OM programs direct. Disease Management News 3: 1&6. \0 Aug 1998

PharmacoEconomics &

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