One Patient, 34 Days in the Hospital,
$7,000 Syringes and a $5.2 Million Bill
By RON WINSLOW
Staff Reporter of THE WALL STREET JOURNAL
DURHAM, N.C. --
Stephen Dedrick, chief of pharmacy at Duke University Medical Center, returned
an urgent beeper message from his office one Friday morning to hear a startling
report: His department had just ordered $250,000 worth of one drug, for delivery
overnight from California. It was for a single patient. And it would last only
through the weekend.
Even by the
standards of the country's high-tech, high-cost health-care system, what
followed was an extraordinary episode in American medicine. Over 34 days of
treatment, the patient ran up a bill of $5.2 million. More than 95% of it was
for drugs.
The patient,
69-year-old retired prison guard Slim Watson, had developed a rare disorder
much like hemophilia. The only remedy was a complex regimen of blood proteins
and other drugs that doctors hoped would halt his internal bleeding and restore
his blood's ability to clot. Within days of his admission to Duke's 16-bed
intensive-care unit, Mr. Watson was going through IV bags of clotting factor at
a rate of $30,000 every four hours. The staff started calling him the
million-dollar man.
Just getting
the drugs to his bedside became a huge logistical challenge, involving pig
farms in England, a biotech plant in Denmark and midnight trips to the local
airport, where Duke staffers met planes flying in fresh shipments of medicine.
Doctors, pharmacists and nurses went to great lengths coordinating Mr. Watson's
care to make sure the highly perishable drugs were used with maximum effect and
minimal waste. "This was like a transfer of gold from Fort Knox,"
says Peter Kussin, one of the intensive-care doctors.
Their treatment
decisions had implications well beyond the fate of their patient. His extreme
use of blood factors exacerbated a global shortage of one medicine, posing a
risk that others needing it would be denied. And the case wreaked budgetary
havoc as Duke Medical Center was in the midst of a cost-saving initiative.
There was
little likelihood that reimbursement from Medicare and a private plan would
cover all of the hospital's costs. "It was clear this was going to have an
impact on our profitability," says William J. Fulkerson Jr., Duke's chief
medical officer, who kept senior administrators abreast of the case as it
progressed. "At the same time," he adds, "it was clear we were
going to do what was best for the patient."
An Odd
Symptom
Mr. Watson,
after a 31-year career in the Pennsylvania prison system, had retired and
returned with his wife to their home state of North Carolina. They settled in a
modest single-story brick home, where Mr. Watson started a garden growing Swiss
chard and other vegetables. An Army veteran, he joined his local American
Legion unit, serving for a time as its commander. Though bothered by diabetes,
heart problems and psoriasis, he had no reason to foresee a medical crisis late
last summer when he noticed some curious dark circles on his skin.
After a local
hospital's tests showed he was anemic and bleeding internally, Mr. Watson was
admitted to Duke Medical Center on Oct. 10. There, doctors diagnosed a
condition called acquired factor VIII inhibitor. Antibodies produced by his
immune system had begun attacking his factor VIII, a protein critical to blood
clotting. Most hemophiliacs lack this blood factor congenitally. But each year,
about 250 Americans with no previous clotting problems suddenly develop a
factor VIII disorder, for reasons that are mostly a mystery.
Sometimes it is
associated with cancer, but doctors found no sign of that in Mr. Watson. They
couldn't figure out what caused his condition. But they determined he was
bleeding somewhere in his gastrointestinal tract. And they told him early on
that if they couldn't stop it, he wouldn't survive.
Still, the
doctors were optimistic. Medicines developed over the past two decades have
transformed treatment of bleeding disorders. About 75% of people with acquired
factor VIII inhibitors are treated successfully, in most cases within a few
days. "Usually you can get the bleeding stopped," says Thomas Ortel,
a Duke hematologist. "Then you can treat the underlying cause of the
antibody and the patient will frequently do fine."
One medicine is
Hyate:C, a form of factor VIII derived from the blood of pigs. Made in Britain
by Ipsen Biopharm Ltd., a unit of Paris-based Beaufour Ipsen Group, it has been
available in the U.S. since 1986. But supplies have been crimped in the past
five years by a virus infecting pigs throughout the world.
To avoid viral
contamination, the company says it discards up to 90% of harvested pig blood in
the initial stage of manufacturing. As a result, the blood of more than 20 pigs
is needed to make one small vial of powder-like crystals. That is one reason
Hyate:C's wholesale price is about $1,000 a vial.
A typical
patient needs 15 to 24 vials just for the initial dose, Ipsen Biopharm says,
with full treatment usually taking about 100 vials. "Whenever we get a
[Hyate:C] patient, we know we're in for some big bucks," says John
Kessler, Duke's deputy director of pharmacy.
Duke has had
several patients with Mr. Watson's diagnosis in the past year. They all
responded more quickly than Mr. Watson, one leaving the hospital in just 72
hours. Charges for these patients ran between $50,000 and $200,000.
Mr. Watson's
case called for a second drug, a genetically engineered version of another
blood factor, VIIa. Novo Nordisk of Denmark sells it under the name NovoSeven.
In part because of the biotech drug's complex manufacturing requirements,
NovoSeven costs $6,800 wholesale for one small vial.
Doctors also
gave Mr. Watson steroids and a cancer drug. They frequently put him through a
dialysis-like procedure called plasma pheresis, to try to filter out the
culprit antibodies and allow his own factor VIII to revive. He needed repeated
blood transfusions. And throughout his stay, he underwent numerous other tests
and procedures aimed at finding out precisely where he was bleeding, in hopes that
doctors could cauterize the area and stop it.
These tests
were unavailing. When doctors inspected his colon, they found pooled blood but
no lesions. High-tech X-ray and nuclear-scanning searches were inconclusive.
The doctors,
nurses and pharmacists delivered all this care at a frenetic pace, and
coordinating it became a daunting challenge. Once, a pheresis team gave Mr.
Watson his blood-filtering treatment right after a nurse had given him a new IV
bag of Hyate:C. Thousands of dollars worth of medicine was cleansed from his
system and wasted.
Pharmacy
officials, growing concerned about the intense use of expensive blood factors,
brought the case to the attention of Duke's senior administrators. Like most
nonprofit academic hospitals, Duke constantly wrestles with how to make ends
meet while handling its various missions: care for both paying and indigent
patients, plus ambitious programs of teaching and research. Squeezed by managed
care and tight Medicare reimbursement, Duke's health system would have been in
the red in fiscal 2000 but for investment income. On an operating basis, it
lost $11 million on revenue of $1.11 billion in the year ended June 30, 2000.
Duke had just
launched an initiative that sought to cut its projected fiscal 2001 drug
spending by $4 million. As the Watson case grew more complex, one effect was
quickly apparent: "It would take that initiative and throw it out the
window," says Michael Burke, chief financial officer of the Duke health
system.
Although Duke's
top administrators rarely get involved in individual cases, this time they
intervened. Mr. Burke asked for a special effort to document all decisions
about care and account for every drop of blood factor, to put Duke in the best
position for insurance reimbursement. Dr. Fulkerson asked his top specialist on
blood disorders, Dr. Ortel, to oversee the use of blood factors. Staff members
say none of the senior officials questioned the decision to treat Mr. Watson
aggressively.
Decision to
Operate
Despite the
Hyate:C and his other treatments, Mr. Watson's bleeding continued after his
first week at Duke. Doctors grew increasingly concerned that if they didn't
stop it soon, he would turn irretrievably for the worse. Even though surgery
could be fatal to a patient with bleeding problems, the doctors decided their
best option was to remove the portion of his colon considered the most likely
source of the bleeding.
Dr. Ortel's
first major task was to order mega-doses of Hyate:C for Mr. Watson's postsurgical
treatment. For several days after surgery, he went through it at a retail rate
of more than $250,000 a day.
In the mixing
room, where pharmacists and technicians prepare 2,000 custom doses of drugs a
day, pressure was intense. Just 15 of the daily doses were for Mr. Watson. But
each Hyate:C dose required as many as 30 vials, and fresh doses were needed
every four hours.
As pharmacists
reconstituted the powdered Hyate:C with sterile water, they had to take special
care to prevent the mixture from frothing, which would reduce its potency. Just
preparing Mr. Watson's medicines took up to four hours of staff time a day.
The pharmacy
storeroom was busy, too. Duke keeps little Hyate:C and NovoSeven on hand. They
are too costly and needed too seldom, and unused vials usually can't be
returned. So throughout Mr. Watson's stay, the pharmacy had to get new
shipments of at least one of the blood factors several times a week.
Hyate:C, which
must be kept frozen until shortly before it is used, posed special problems: It
had to be flown to Durham from Ipsen's distribution center in California packed
in dry ice. Hospital staffers regularly made the 20-minute drive to meet planes
at Raleigh-Durham airport, often in the middle of the night.
The task of
coordinating much of this effort fell to Joanne "Bo" Latour, a
clinical pharmacist who has spent her entire 15 year-career at Duke working
with patients in the ICU. She attended the morning rounds at Mr. Watson's
bedside, where Dr. Ortel and intensive-care-unit doctors reviewed his status
and determined what tests, procedures and transfusions he needed that day. Dr.
Ortel mapped out the blood-factor dosing plan, and then Ms. Latour worked with
ICU nurses on timing of blood tests to make sure the results would be valid.
She scheduled the pheresis team's procedures to avoid a repeat of the
factor-cleansing mixup. She checked with the storeroom to make sure enough
blood factor was on hand.
"This case
tested our limits of being able to devote so much for one patient, without doing
it at the expense of 700 other patients," says Mr. Dedrick, the pharmacy
chief.
It was also a
test for Mrs. Watson, 67, a tall, reserved woman who had worked as a clerical
supervisor in a clinic. She visited her husband on the unit every day, often
spending nights in the ICU waiting room. "It seemed like they were always
doing something to him," she says. She was grateful for the care and
particularly comforted that nurses were always attending to him.
She gave little
thought to how much it all cost. "I was just hoping it would save his
life," she says.
Shortly after
Mr. Watson emerged from surgery, on his ninth day at Duke, the effort started
to pay off. His blood count stabilized. His internal bleeding finally seemed to
have stopped. For the first time since his admission, doctors, nurses and
pharmacists began to think their patient had turned the corner.
Getting to
Know Him
To the staff on
the 8200 unit, as Duke's ICU is known, Mr. Watson's progress was welcome news.
The unit's 16 high-tech beds are nearly always full, mostly with desperately
ill patients who have tubes in their throats and are unconscious or sedated.
Doctors and nurses have few opportunities to get to know them.
Mr. Watson was
different. Though seriously ill, "he was sitting up in bed talking to all
of his health-care team," says Mr. Kessler, the deputy director of
pharmacy. "He was not moribund with tubes and ventilators and at Death's
door."
Despite all the
procedures and discomfort, Mr. Watson rarely complained. When staffers passed
near his room, he waved hello. He called one doctor "Smiley." He
nicknamed a nurse "Sarge" after she took away a cracker he wanted to
eat. He told Dr. Ortel he shouldn't have to come to work on a Saturday.
Though never
told how expensive his care was, he knew of his "million-dollar man"
nickname. More than once, he told his doctors he thought they should be
spending the money on someone younger.
"He was
very charming," says Loretta Que, the attending physician in the ICU
during the early part of the case. "He appreciated what you were doing and
he told you so." On weekends, Mr. Watson had a steady stream of guests,
friends from his church and the American Legion in addition to family members,
many in from out of state.
Staying
comfortable was difficult. He used a trapeze-like bar attached to his bed to
pull himself up and adjust his long frame. He was frustrated that he couldn't
get out of bed. "That didn't suit him," Mrs. Watson says. "But
he always stayed in a good frame of mind."
After the
surgery, Mr. Watson's condition held steady for about five days. But on the
sixth day, the beginning of his third week at Duke, he suffered a setback. His
stomach hurt and his blood count dropped. The internal bleeding resumed.
Dr. Ortel
determined that Mr. Watson was becoming resistant to the factor VIII from pigs,
a common occurrence with extended use of the drug. He switched Mr. Watson to
NovoSeven, the bioengineered blood factor from Denmark.
This one didn't
pose the same delivery problems, but it had to be prepared more frequently. Mr.
Watson continued to need transfusions, tests and procedures aimed at finding
the bleeding source, all requiring intricate coordination. Once, Ms. Latour saw
a technician from the mixing room deliver a $7,000 syringe of NovoSeven to the
unit, but when a nurse went to use it, it was nowhere to be seen. After a
nerve-racking search, Ms. Latour was about to order a remake when the syringe
turned up, folded in the pages of the medical chart.
As costs
mounted far beyond anything encountered before, even in other cases of acquired
factor VIII inhibitor, Duke's pharmacists consulted colleagues at other
institutions and scoured medical studies to see how any similar case might have
been handled. "We found nothing that we could look to and say, at this
level of cost, here are the guidelines," says Mr. Kessler.
On Nov. 1, Mr.
Watson's 21st day at Duke, Dr. Kussin took charge of the ICU as part of a
regular rotation among intensive-care specialists. Like others, he was
immediately impressed with Mr. Watson's good-natured stoicism.
But within a
couple of days, Dr. Kussin began to lose the enthusiasm shared by other members
of the team for their patient's prospects. Mr. Watson hadn't regained bowel
function after the surgery and he was being fed intravenously because he
couldn't eat or drink through his mouth -- two critical indicators that he
wasn't getting better. Doctors ruled out a second surgical effort to stop the
bleeding. Even if surgeons could find the source, there was little confidence
now that they could keep him from bleeding to death in the operating room.
A Question
Is Raised
With a fresh
perspective on a case that others had been living with for three weeks, Dr.
Kussin began asking the medical team during morning rounds how they felt about
continuing the regimen of costly blood factors for Mr. Watson. Such questions
are routine at the ICU, where 20% of patients die and many others are
discharged to nursing homes where they won't recover from their illnesses. ICU
staffers are often confronted with terminally ill patients hooked up to
high-tech medical gear that isn't likely to do much good.
"There's a
lot of waste," Ms. Latour says. "We talk about it a lot."
There are
successes, too. During Mr. Watson's stay, Yvonne Spurney, nurse manager of the
ICU, was herself a patient there, after aggressive treatment for cancer. She
recovered and is back on the job. "We're not a glamorous unit," she
says, "but we are people's hope."
When Dr. Kussin
first posed his question about Mr. Watson, no one raised any doubts about
continuing treatment. Though Mr. Watson wasn't getting better, he wasn't
getting much worse, either. Kay Wellemeyer, a nurse on the unit, says she
struggles with the ethics of high-cost care provided to comatose patients whose
prospects appear dim. "I never felt that about him," she says.
Dr. Ortel also
favored staying the course. Mr. Watson's heart, kidneys and other organs seemed
to be holding up. Unlike some patients with coagulation problems, he wasn't
bleeding from his nose or gums or even from the skin punctures for IV lines and
blood draws. If they could just stop the internal source, Dr. Ortel reasoned,
Mr. Watson would be in the clear.
Dr. Kussin deferred
to Dr. Ortel and the others. As the attending physician, he says, he finds it's
important "to let the rest of the team get comfortable that they've done
everything they can."
NovoSeven, like
the other blood factor, seemed to help, but not fully take hold for Mr. Watson.
"There were times when he seemed to stabilize, and then he would start
oozing again," Dr. Ortel says. "Just when we thought, 'OK, we've
turned a bend here,' the next lab result would be lower."
Then, on Nov.
9, Mr. Watson's 30th day at Duke, his condition suddenly worsened. His stomach
and lower body swelled with blood. He became short of breath. His kidneys began
to fail. After one last attempt to find a bleeding site, the medical team
discussed the situation among themselves and with Mr. Watson's family.
"At that
point, I think everybody agreed that we had tried everything we could,"
Dr. Ortel says.
Mr. Watson
seemed to have had enough as well. "He said he got his spiritual side
together and got his soul right with God," recalls Mrs. Watson, his wife
of 46 years, tears welling. Over the next couple of days, his two daughters,
his son, his two brothers and Mrs. Watson spent time with him one by one.
"We told him if he wanted to go, he could," Mrs. Watson says.
The
blood-factor treatment was stopped, and Mr. Watson was put on sedatives to ease
his discomfort. On the afternoon of Nov. 13, with several of his family members
at his side, he smiled and blinked. "Finally, he just closed his
eyes," Mrs. Watson says.
In the end,
what made the case so costly was the persistent uncertainty of its outcome. If
Mr. Watson had been dying of another disease, use of blood factors probably
would have been much more limited, his doctors say. If he had responded
quickly, as often happens, he wouldn't have needed so much of them. For most of
his stay, he was neither dying nor getting better. "Fifty-fifty cases are
the toughest and most expensive to be in," Dr. Kussin says.
"As a
business decision," treating Mr. Watson "wasn't a great one,"
Dr. Kussin concedes. He notes that "our hospital has always told us to
spend what we need to take care of people." But as a physician who has
also served as a senior administrator, he says, "This amount of money has
never been put on the table before for one patient. When does a hospital have
the right to say, 'Time out'?"
Duke's
insurance reimbursement from Medicare, plus a private plan, was $2.5 million.
Hospitals have to accept this as payment in full. The family wasn't billed. In
the end, owing to the complex way Duke bills for overhead and other expenses,
it says it took a loss of $800,000 on the case.
The charges on
the bill included $1.9 million for NovoSeven and $2.9 million for Hyate:C, the
factor made from pigs' blood. Ipsen says it sold U.S. hospitals 10 million units
of Hyate:C last year for 163 patients. More than 980,000 of those units, nearly
10%, were given to Mr. Watson alone.
Duke's final
bill ran to 45 pages. The column where the charge for each item appeared wasn't
wide enough for numbers higher than five figures and two decimal points. Daily
six-figure charges for blood factors ran over into an adjacent column.
On the last
page, the total reads: $214,333.50. The "5," as in $5 million,
doesn't appear. The format couldn't handle a number that large.