The Fed’s plan for 2020? Bring long-awaited innovation to kidney disease

As 2020 gets underway, the federal government has set its sights on bringing innovation to an area of health that affects one in seven Americans and costs the government more than NASA and the Department of Commerce combined, yet hasn’t seen major innovation since the 1970s.
That area is kidney disease. Both HHS Chief Technology Officer Ed Simcox and HHS Deputy Secretary Eric Hargan addressed the topic at separate events in San Francisco this week, and neither minced words when describing the enormity of the problem — or the lack of real movement on it.

Kidney disease: A $35 billion innovation black hole

“If you brought a patient on dialysis from 1978 forward in time 40 years, how different would that experience be?” Hargan asked a crowd of innovators at the Health 2.0 VentureConnect event on Monday night. “Not very different at all, in fact. There’d be a flat screen TV to watch. There’d be an iPhone to read instead of a pile of magazines. Probably you’d have a better Lay-Z-Boy to sit in. But there would probably be nothing fundamentally different about the experience.”
In 2019, as in 1972 when Richard Nixon signed the End-Stage Renal Disease Bill, kidney disease therapy mostly means two things: dialysis, an expensive, time-intensive and often lifelong in-patient procedure; and, for a lucky few, transplantation of a donated kidney. And thanks to Nixon’s signature, CMS remains obligated to pay for the former, to the tune of $35 billion a year.
“It was literally a two-paragraph, three-paragraph section in the Medicare Act that basically said we'll take care of people with dialysis and transplantation, all people forever,” Dr. John Sedor, chair of the KidneyX steering committee, told MobiHealthNews in an interview late last year. “And I think Congress at the time thought it was going to be 15,000 people and $100 million. Now it’s 600,000 people and $35 billion.”

There has been some innovation over the years, but it has been incremental rather than disruptive — a stark contrast to areas like cancer care or HIV, where treatment looks dramatically different than it did in 1978.

“Dialysis was a miracle therapy for its time, but it hasn’t changed in 60 years,” Simcox said, speaking onstage at the Startup Health Festival alongside Sara Holoubek, whose consultancy firm Luminary Labs is working with HHS on kidney innovation. “The technology is exactly the same. We’ve made the machines smaller, we’ve added filtration technology, but to get back to your question, why is it that we don’t hear more about kidney disease when it’s the ninth leading cause of death in the U.S.?”--> READ MORE

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