IndustryHealthNewsFiles PDF

INDUSTRY/HEALTH SUBSCRIBER
FEEDBACK LOOP #1, JANUARY 1999

1) The Strange State of PMPM Rates for CAM Services
2) Controlled Studies, Milliman & Robertson and CAM Guidelines
A Service for the INDUSTRY/HEALTH Subscriber
THE INTEGRATOR
for the Business of Alternative Medicine
Integration Strategies for Natural Healthcare 1999
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HELLO FRIENDS & COLLEAGUES. This e-mailing is a little different than those youve yet
received. In the first part, in particular, Im look for your feedback or insight. I expect Ill use what I
learn here in a future INTEGRATOR. I will definitely digest and re-submit to I/H subscribers what
I learn, for your future use and mulling. So, please observe the interactive rule below:
I/H INTERACTIVE RULE: With these e-mailing, I/H reverses the usual media approach
regarding being on the record. With usual media, you must assume you are on the record unless
you are specifically off (and you trust the reporter!). HERE, if you have any response or
feedback, I will assume that it is NOT for attribution UNLESS you specifically let me know that
you are ON THE RECORD with your comments.
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1) THE STRANGE STATE OF PMPM RATES FOR CAM SERVICES: WHAT EXPLAINS IT?
A surprising array of PMPM rates for diverse CAM services have come to me over time. I am
looking for your feedback and insights into what is going on here. Also, any additional information
you might be willing to share about rates you offer, or about which you are aware.
CASE 1: A network offers a broad-based CAM affinity product (not a covered benefit), with
diverse CAM providers (licensed, plus yoga, etc.) via directory, also natural products, fitness, etc.,
which contracts with a significant employer for its network. The PMPM rate? $2.00 -- $2.75
range.
CASE 2: Alternare of Washington in early contracts with major health plans credentialed
massage practitioners, acupuncturists and naturopathic physicians, set payments rates, and
managed billing and payment of covered services in a PPO-type set up. In a June Capitation
Management Report, Alternare shared the following PMPM rate: $0.08.
CASE 3: A CAM network goes AT RISK on a chiropractic and/or acupuncture benefit. The
characteristics: direct access (no gatekeeper); 10-15 total visits/yr of one or the other; $10-$15
co-pay. Network does all credentialing, billing, management, etc. The PMPM rate? $1.00 -- $1.50
range.
Your thoughts, insights, reactions, questions are welcome.
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2) CONTROLLED STUDIES, MILLIMAN & ROBERTSON AND CAM GUIDELINES
One of the core questions in integration regards the polarization of sceince -- in particular the
relative status of controlled studies in clinical decision making in the mainstream vs CAM. I treat
this subject at some length in Section 5 of the NIH paper on Operational Issues weve sent out to
each of you. (Let us know if you havent received one and well get one off.) An excellent recent
contribution in this conversation is Larry Dosseys two page column from the November (Vol 4,
No 6) Alternative Therapies in Health and Medicine. The article is called: On Double-Blinds and
Double Standards: A Response to the Recent New England Journal Editorial (pages 18-19).
Dosseys is a good, balanced rejoinder to the NEJM claim that there is a double standard which
favors CAM. (Alternative Medicine -- The Risks of Untested and Unregulated Remedies by
Marcia Angell, MD, and Jerome P. Kassirer, MD. New England Journal of Medicine, 1998;
339:839-841; 9/17/98.)
Below is an additional contribution on the topic, with tongue partly in cheek. This piece is from
my column, Charting the Mainstream, published in the Townsend Letter for Doctors & Patients.
A number of readers have enjoyed it and contacted me about it. Some have asked how to get
the Milliman & Robertson (M&R) materials which are cited. I have included contact information
for M&R at the end, should you be interested in obtaining a copy of their brochure. The column is
in an abstract-comment format. Enjoy -- I hope you find it useful!
******
M&R Guidelines on Healthcare Management: IN WHICH MOSES CLARIFIES THE ORIGIN
OF THE COMMANDMENTS
Milliman & Robertson (M&R), a national healthcare consulting firm which developed widely
utilized healthcare management guidelines has published a bulletin to clarify usage. The
brochure provides insight into the process for development of these tools which assist health care
systems in both clinical and economic management of care. M&Rs guidelines are in seven
substantial volumes, focusing on topics which range from Inpatient & Surgical Care (Vol. 1) to
Ambulatory, Primary and Pharmaceutical Care (Vol. 5). The goal is quality care (the
attainment of the desired health status, with patient satisfaction) and efficient care (the
production of the desired outcome without wasting resources, effort, or expense). The firm
believes that efficiency and quality converge. With these twin goals, the M&R guidelines are
developed by teams of both clinicians and actuaries.
M&R clarifies that their guidelines are based on best observed practices throughout the country
and on published research. The brochure notes that some authoritative estimates put the
proportion of current healthcare practices supported by controlled scientific studies at about
15%. Again: While our guidelines are not all based on controlled scientific studies, neither are
the vast majority of current clinical practices. The reason for the brochure appears to, in part, be
a protection against liability for any clinical decision made based on M&R recommendations. The
document boldly states that using the guidelines alone as a basis for denying authorization for
treatment is using them inappropriately.
COMMENT: Practice guidelines for optimal complementary and alternative medicine (CAM)
integration represent one of the focal points of the current CAM integration exploration. CAM
providers are frequently, to use the poet T.S. Eliots graphic phrase from The Lovesong of J.
Alfred Prufrock, pinned and wriggling on the wall by mainstream medical managers when asked
to supply the scientific evidence base for their CAM practice decisions.
So it is pleasing here to have M&R down from the mountain, as though Moses were asked to
explain the true origin of the 10 commandments at a town meeting. M&R shocks the crowd by
revealing that God (controlled scientific evidence) is conclusively present only 15% of the time.
This low appearance rate would have left the Old Testament God, of course, in an equivocal
relationship with 8.5 of the 10 commandments. The remaining guidelines are products of the wellknown biases built into the human-all-too-human process of expert panels. This ungodlike
situation represents serious failure to perform even -- as a batting average.
However, this shortcoming of conventional medicine may be cause for the CAM provider to take
the pin of science by which he or she was unceremoniously impaled on the wall, out of his or her
eye and, remaining in the Old Testament for a moment, take out the eye (for an eye) of the
conventional medical manager. In a more forgiving mode, the CAM provider may simply offer to
pull together a panel of experts (leaders at CAM schools, CAM researchers, etc.) who will
assemble the best evidence on CAM practices, a human-all-too-human process of their own.
Together the M&R panel of human experts and the CAM panel of human experts may then get
together and pray, as follows: Trust in us, as we have been asked to trust in you. It is not
science but prejudice which is the greater barrier to appropriate CAM integration. The lead
therapeutic modality needed to remedy this is humility, by all parties.
Milliman & Robertsons Healthcare Management Guidelines: Questions and Answers. 12 page
glossy, April 1998. From M & R. The number is 888-558-4010 for the San Diego office.
QUERY: I am told that the 15% is from outcomes guru, David Eddy, MD. Do any of you have the
citation? If so, please pass it to me, and I will forward it.
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End
INDUSTRY/HEALTH FEEDBACK LOOP #1, January 1999.
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FEEDBACK LOOP #2, FEBRUARY 1999
1) Toward Industry Cooperation on ADD-ON VERSUS REPLACEMENT (AOVR)
2) Identification of AOVR explorations and models presently under way
3) Your availability for possible I/H Meeting on AOVR at NMHCC in Atlanta
THE INTEGRATOR
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HELLO FRIENDS & COLLEAGUES. This is the first I/H mailing on a cooperative agenda issue:
ADD-ON VS REPLACEMENT (AOVR). I have, through phone interviews, already located
significant interest from some substantial CAM networks. PLEASE RESPOND TO THE
QUESTIONS BY 2/20. I will then report to you the parties who are interested and we can move
toward setting an agenda.
Please RESPOND BY LIFTING THE QUESTIONS into your e-mail response. This will make life
easy for me. Send to pihcp@aol.com (my direct e-mail address).
This is an exciting prospect. As always, please observe the I/H INTERACTIVE RULE at the end
of this mailing.
John Weeks
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1
TOWARD INDUSTRY COOPERATION ON ADD-ON VS REPLACEMENT (AOVR)
The AOVR question is the central question in CAM coverage. All else being equal (which of
course it isnt), AOVR determines whether a given CAM treatment should be core benefit or rider.
AOVR also determines whether a service should be proactively recommended (as more costeffective care) or merely passively allowed (discounted access).
From an industry standpoint, the opening of the market -- the expansion of the pie -- rests on
AOVR data. With clear evidence of offsets, the case for proactive use of CAM services gains a a
foundation in evidence, rather than assertion.
Yet it has become clear that little work is presently under way to answer this core question. This
INDUSTRY HEALTH FEEDBACK LOOP evaluates your interest in exploring and creating
strategies for collaboration in answering these questions.
BACKDROP: 10 BOTANICAL FIRMS UNITE IN RESEARCH AGENDA
While thinking of this I/H cooperative agenda, news hit the e-mail that 10 leading firms in the
botanical industry -- competitors -- have come together for research at Harvard. We have calls
in to colleagues involved in this consortium. We will report back their model.
Why not approach AOVR as a similar consortium of interests?
THE CASE: ALL OUR BEST AOVR DATA IS FROM OUR OWN INDUSTRY
It struck me while writing the viewpoint in the 12/98 INTEGRATOR on AOVR that all of the data
was from CAM network funded surveys: Landmark Healthcare (1997), Alternare Health Services
(1997) and American Specialty Health Plans-Stanford (1998). As you may recall, the data is
intriguing:
*** 30% to 65% of consumers believe there are cost offsets
*** there appears to be a dose-response relationship in consumer perception: the greater the
intervention, the higher likelihood of perceived offset.
This albeit limited evidence base suggests that the momentum -- the INTEREST -- in getting at
the bottom of this rests with the pro-active industry. Notably, a significant subset of the clinics in
THE INTEGRATOR Integrative Clinic Benchmarking Survey is also planning to explore AOVR. I
know that the I/H academic centers and CAM professions are interested.
WHY HEALTH PLANS ARE NOT ASKING THE AOVR QUESTION
While I gather that some plans are beginning to think about looking at AOVR, few if any have
done anything significant. In my experience, most medical directors: 1) believe that patients
overstate the cost-offsets, and have a bias to do so; 2) think that survey data from CAM
consumers is worth little to nothing unless backed up by analysis of claims data over a long
period of time; 3) dont have the time or money to ask the question; and perhaps most important,
4) are too swamped with other issues to even begin to approach this proactively, much less to
approach it creatively.
SOME INITIAL THOUGHTS ON HOW COOPERATION MIGHT WORK
Initial conversations with I/H subscribers have netted the following types of potential value in
cooperation:
*** sharing initiatives currently underway
*** sharing strategies on working with health plans or purchasers
*** creating survey or research templates as tools for those exploring AOVR
*** creating agreement on templates for use by diverse CAM businesses with diverse partners
and populations, to make outcomes more robust.
In short, we make AOVR a squeaky wheel in our busy lives -- and start getting some real work
done on this core issue.
RESPONSE QUESTIONS
As usual, if you consider anything proprietary at this time, just leave it blank.
Name ________________________________ Firm _________________________________
1)
Are you interesting in I/H collaboration on AOVR? Y ______ N ______
If YES, would you be interested in a meeting at NMHCC-Atlanta? Y ______ N ______

(The NMHCC is 3/28-4/1)
If YES, what dates are you in Atlanta: Arrival date ________ Time _______
Departure date ________ Time __________
2)
Are you currently involved in an AOVR research?
Y ______ N ______
If YES, do you have any institutional partners: Y ______ N ______
If YES, with whom? _____________________________
If YES, would you share your strategy/templates? Y ______ N ______
If YES, who is the key contact in your organization on AOVR:
Name ______________________
Title _______________________ Phone ____________
UNLESS YOU TELL US OTHERWISE, we will assume all that is above is share-able information.
3) Comments or suggestions on how to proceed. Please include any additional comments
below. Observe the I/H rule on sourcing your comments.
We look forward to your responses.
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I/H INTERACTIVE RULE: With these e-mailing, I/H reverses the usual media approach
regarding being on the record. With usual media, you must assume you are on the record unless
you are specifically off (and you trust the reporter!). HERE, if you have any response or
feedback, I will assume that it is NOT for attribution UNLESS you specifically let me know that
you are ON THE RECORD with your comments.
_____________________________
NEWS FILE #2, JANUARY 1999

1) Conferences
2) Business Developments
THE INTEGRATOR
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AN I/H/ INTERACTIVE RULE: If you have any response or feedback, we will assume that your
name as the source is not attached to it UNLESS you specifically say that you would like to be
identified as the source.
__________________
NOTE TO I/H SUBSCRIBERS: We are gaining a sense of this process of information creation,
and etc. Starting this week, we plan to send off an e-mailing of some kind at close of work on
Fridays so you will have it there when you arrive on Monday. The reasons: 1) This will make our
missives more timely; and 2) you will not be sent so much at once (as below). The following is
early delivery of material which will be in your next INTEGRATOR.
As always, your feedback is welcome.
-- John Weeks, Publisher-Editor
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1
Integration Conferences Update
Note: A more thorough conference listing for the spring was printed in the December 1998 issue.
Developments
Eisenberg to headline NMHCC track. David Eisenberg, MD, will deliver the kick-off
presentation at the National Managed Health Care Congress track. INTEGRATOR publisher-editor
John Weeks, the track chair, who was originally scheduled to give the presentation explains
simply: We want to draw people into the CAM conversation and David Eisenberg has been a
giant in this movement. Weeks remains involved as a moderator throughout the seven session
meeting. Funding for the change came available when San Diego-based American Specialty
Health Plans came aboard to sponsor the track. ASHP has sponsored numerous CAM events in
the past two years, including the Casa Colina WholeHealth Forum, the annual meeting by the
publishers of Employee Benefits News, and the Healthcare Forum meeting scheduled for
Honolulu in early February. The NMHCC has also scheduled a CAM debate, which pits National
Council Against Health Frauds John Renner, MD, against James Dillard, MD, medical director
for Oxford Health Plans. March 29-April 1: 888-882-2500
A two-day event in San Francisco in June on integrative clinic skills training, developed by
Cambridge Health Resources (CHR) together with Linda Bedell Logans Solutions in
Integrative Medicine has been firmed up. However, the broader In Health conference which
CHR was paired has been canceled for lack of major sponsorship, according to Marcy
Robinson. Robinson heads up planning and sponsor relations for CHR. Robinson recently
announced that the five speakers include: Bedell-Logan (sessions on practice management),
Lynn Budlong, of Budlong, Glassanos and Company (sessions on business development -Budlong has worked in this arena for the Harvard team assembled by Eisenberg), Russell
Greenfield, MD, a resident at the University of Arizona Center for Integrative Medicine
(clinical integration), and author-expert on CAM legal issues, Michael Cohen, Esq. (legal issues).
John Weeks, INTEGRATOR publisher-editor will provide an overview on the state of CAM
integration early on the first day. 617-630-1330
The HealthEast Office of Medical Education is sponsoring its 3rd Annual Conference on
Integrative Medicine. This one is entitled: A Scientific Session on Complementary and Alternative
Tools in Primary Care. INTEGRATOR advisor Chris Foley, MD, has the lead in the day-long
meeting scheduled for April 24. Prom Banquet Center, Woodbury, Minnesota. 612-232-5225
Bruce Takatas ambitious International Conference on Integrative Medicine, which seeks to draw
over 3000 CAM professionals, administrators and executives to Seattle for an April 30-May 2
session has finalized its program. The Bastyr University integrative medicine track, developed
by CAM consultant David Matteson, Pam Snider, ND, and others at Bastyr will include Andy
Fallat, CEO of Evergreen Hospital, Bastyrs neighbor; clinicians with the Cancer Treatment
Centers of America integrative MD/ND/LAc programs; and clinical leaders with the publicly
funded, King County Natural Medicine Clinic; and CAM leaders among elected officials
Deborah Senn, Washington State Insurance Commissioner, and County Councilmember Kent
Pullen, the lead back of the natural medicine clinic.
On the Horizon
The medical schools at Stanford and Harvard are planning a fall conference, scheduled for
October 15-17, at the Sheraton Palace in San Francisco. While materials are not yet available,
INTEGRATOR advisor Kenneth R. Pelletier, PhD, MD (hc), at Stanford, says faculty will be drawn
almost entirely from the CAM teams at the two schools. Pelletier says the focus is expected to be
on practical applications and evaluations of CAM in large corporations, MCOs, HMOs, hospitals
and clinics. Preliminary program is expected in mid-February. 650-725-7257
In early January, AIC Worldwide put out initial feelers to prospective speakers on a June 14-16
integration conference planned for Alexandria, Virginia. Early materials on the proposed two day
event ($1200-$1500) suggest that AIC is cookie-cutting the executive briefing formula initiated by
Institute for International Research in December of 1995. AICs first such offering was in
November of 1996.
The CAM Professions section of this issue includes information on places and dates for 1999
conferences of the leading CAM professional organizations. See page 11.
On June 17-18 Gaining Corporate Interest in Integrative Medicine: Update on Major Firms will
be offered by Hermann Health Care System, Houston, TX. According to Mary Helen Morosko,
Manager for Special Events, the line-up is to include Kenneth R. Pelletier, PhD, Leland Kaiser,
PhD, James Gordon, MD and Mary Ann Richardson, PhD. (713) 744-2062
Conference Wrap: Turnout
The September 1998 two-day how-to conference on integration sponsored by AIC Conferences
(NYC) and chaired by INTEGRATOR editorial board member Lee Launer ($1200) reportedly drew
about 75 attendees ... Turnout at the October 1998 Congress on Alternative Therapies in
Arlington, VA, sponsored by Larchmont, NY-based publisher Mary Ann Liebert (MAL) through
MALs conference subsidiary, BioConferences International, was very low. Conference
organizer, Michael Hurley, is no longer with BioConferences and the firm has not yet decided
whether to sponsor their annual meeting in 1999... In January, the Leland Kaiser Institutes
Fellowship in Integrative Medicine successfully kicked off its first week-long gathering for its
1999 $20,000 Fellows program. See Colorado in Business Developments section, this issue ...
The day-long CAM session at the Los Angeles meeting of National Managed Health Care
Congress (November 18, 1998) drew roughly 70 individuals to the kick-off session, viewed
positively by conference organizers given a disappointing turnout for the overall conference.
Among CAM exhibitors at the four-day NMHCC event were Alignis, AlternativeLink, American
Specialty Health Plans, American Chiropractic Network/American Complementary Care
Network, and HealthNotes. NMHCC initiated an Alternative Medicine Pavilion for CAM-related
exhibitors, which it plans to expand in Atlanta ... Organizers of the November WorldMed
conference in LosAngeles similarly report a quality turnout, but lower than planned ...
2
BUSINESS DEVELOPMENTS
Pennsylvania The Inner Harmony Wellness Center is serving diverse CAM services to a
conservative central Pennsylvania setting. The clinic, founded by Peter Amato and directed by
Barbara Cohen, has a strong wellness orientation. Amato is a member of the new foundation
supporting Andrew Weils program in integrative medicine. The two are involved in discussions
with area health systems on possible partnerships. The location is Northeast Pennsylvania, in a
stand alone home-like, rural atmosphere, with relatively low overhead. Cohen and Amato have
made available to THE INTEGRATOR the clinics fee schedule for their diverse CAM services. No
MD/DO services are presently offered. 717-585-4040
Acupuncture/
Herbology
Naturopathic
Physician
Homeopathy
Chiropractic
Iridology
Holistic
Psychotherapy
Nutrition
Analysis and
Consult
Multi-Week
Classes
Stress
Management
Spiritual
Counseling
Aromatherapy
Massage,
Reiki, Touch,
Reflexology,
$70 initial; $50

return
$125 initial (90 min);
$60 return
$125 initial (90 min);
$60 return
$30/visit
$50 for 45 minutes
$65 (60 min)
$50 (60 min)
Average $12 for
series; $15 single
$75 (60 min)
$75 (60 min)
$50 (60 min)
$50 (60 min)
Maryland
Calvert Memorial Hospital a small, community based hospital in Prince Frederick,
MD, has engaged an integrative medicine process. An integrative center is expected to open in
early 1999. The 100-150 bed hospital also includes a new wellness wing, under construction.
Jan Nicholson, EdD, director of integrative medicine for Calvert, told The Integrator that the
services will primary be those which go along with psychotherapy such as massage,
acupuncture and biofeedback. The hospital has a rehabilitation contract with a national firm. The
CAM services are expected to be primarily in outpatient. The center is developing a medical
advisory board. 410-414-4507
North Carolina The note on Alternative Healthcare Options in the December INTEGRATOR
inadvertently placed the firm in Georgia. The CAM network, founded by Richard Dunn, was
written up in the January 15 Charlotte Observer. Dunn noted that his first product will be a
discount card, offered at $49.95, which he plans to sell to employers. The article quoted a
skeptical Charolotte employee benefits consultant Eric Coates as saying: Im not seeing any
clear evidence of interest in it from our clientele. The skeptical Coates suggested, before
recommending purchase, hed want his clients to be fully apprised of what the cost implications
are initially, and what they were down the road. However, the news account noted that Blue
Cross and Blue Shield of North Carolina, the states largest insurer, covers chiropractic care,
biofeedback, hypnosis and massage therapy under certain conditions. The article added that the
BCBS firm is presently exploring additional benefits.
Georgia
Alignis, the Atlanta-based CAM services organization, has announced that Hassan
Rifaat, MD, the developer/manager of the Oxford Health Plan alternative medicine program, is
joining the firm as COO. Rifaat, who began at Oxford in mid-1995, is a non-practicing MD with a
background as an entrepreneur. Alignis vice president for long range planning, Dan Hollis, told
THE INTEGRATOR that Rifaat is becoming a senior member of the management team. Rifaat is
the firms first employed medical doctor. Alignis is also in the process of creating a national
provider advisory board. 800-863-2932
Wisconsin/Georgia
American WholeHealth Network (AWHN) and Comprehensive Health
Group (CHG) agreed in December to share the resources of their two CAM networks. A release
from the two firms stated that, together, they will have 12,000 chiropractors nationwide. AWHN
CEO Jay Mason told THE INTEGRATOR that the firms have struck a deal on several different
levels. AWHNs chiropractors will become part of CHGs chiropractic network for CHGs
discount cards and affinity products. Second, following re-credentialing, some of CHGs
providers will have access to AWHNs managed chiropractic business. Mason expects roughly
half of CHGs 10,000 to come aboard. Third, the two firms are jointly marketing each others
networks. The announcement focused more in chiropractic services than the other CAM
providers in the CHG (see November 1998) and AWHN (December 1998) networks. For CHG:
800-669-8682; for AWHN: 800-274-7526
Minnesota/WA/NY/DC
Michael Zdychnec, Director of Marketing for American Chiropractic
Network and its CAM subsidiary, American Complementary Care Network (ACCN), recently
told THE INTEGRATOR that the national firms have signed four significant new CAM services
agreements in separate jurisdictions. In Washington state, ACCN will service the Choice and
Choice Plus contracts for United Healthcare. ACN is also working with Kaiser Mid-Atlantic
and its CAM services director, Lydia Segal, MD, on a new chiropractic benefit which will serve
that staff model HMO. In ACNs homestate of Minnesota, the firm recently purchased the staff
clinics which provide chiropractic care to HMO HealthPartners, a move which brings 700,000
lives toward ACNs providers. Finally, in early fall, ACN inked a deal for chiropractic services with
Aetna New York. These diverse contracts will investigated in the next INTEGRATOR. 800-8734575
Kansas
Family Chiropractic America, founded in 1996 to manage chiropractic care, has
formed new CAM sibling firms, Family Health America and Family Wellness America. According
to president Beth Snyder, the group of firms together include: 24,000 at risk managed
chiropractic lives, all in Kansas; 150,000 chiropractic PPO lives with which they directly contract;
several million PPO lives through relationships with roughly a dozen other PPOs in and outside
the state; and several million direct access, affinity product lives. The new CAM dimensions
grew out of Snyders personal interest as well as because in the last year or so our clients have
asked us if we have other CAM providers. The firm has assembled a 1300 CAM providers -mainly acupuncturists and massage practitioners -- to go with their 3,000 chiropractors. Like
many businesses with this range of business, site visits are only a required part of credentialing
when the firm is assuming risk. Snyder reveals that the first contracts with the broader CAM
network, Family health America, is with two discount card clients. These are Care Entre, issued
by the Capella Group, and Body Guard Card, issued by Edward Price Co. The firms other
principal is Laura Moore. 800-819-9571
Louisiana
American LifeCare, the New Orleans-based PPO, has agreements on its first
beta sites for its new CAM services product. Ansley Zehnder, who heads up the CAM product
development, told THE INTEGRATOR that Smoothie King, The Neill Corporation (an Aveda
products distributor), and WYES, a public TV station are testing the program to work out its
kinks. Zehnder says that the American LifeCare has stimulated a lot of interest since making
their CAM interest known publicly. She notes that one purchaser which has shown special
interest is union groups. 504-561-0600
Colorado THE INTEGRATOR has learned that East-West H alth Centers may soon expand to
new Denver locations. The present clinic, founded in March 1997 and run by H. Phil Herre, a
former hospital administrator, is in a 7500 foot facility which includes 3 MD, 1 NP, 2 DC, 2 LAc, 1
ND-homeopath, 5 LMP, 2 Rolfers and 3 psychotherapists. Herre stated that the business model
is to first have experience with one or two more clinics in order to make sure (the firms model)
is replicable. The business may then decided to promote a more expansive clinic network
enterprise. 303-694-5757
Colorado
The Leland Kaiser Institutes Program in Integrative Medicine successfully
kicked off its first week-long gathering of it 1999 Fellows program. Over 30 individuals signed up
for the $20,000 plus program. An end-product of the distinctive program is creation of a business
plan for the institution with which each individual is involved. Among the core faculty are: Leanne
Kaiser Carlson, who heads up the CAM effort for the Kaiser family; Phyllis Biedess, formerly
CEO with American Centers for Health and Medicine(ACHM) and Nancy Boyer, formerly with
Consensus Health. (For information on these two professionals, see November 1997 and April
1997 issues, respectively.) Additional faculty for the first session were INTEGRATOR advisor
Chris Foley, MD, Howard Silverman, MD (current medical director, ACHM) and Steven
Markus, MD. Each of these physicians represent distinct business and clinical integration
experiences. Carol Freshley, also formerly with ACHM, took the lead in developing the program.
Those interested can visit the Kaiser website. www.kaiser.net 303-659-8814
Judi Farmer, CEO of Boulder, Colorado-based VitalityAccess has reported to THE
INTEGRATOR that her firm has inked affinity deals with a number of new corporations and public
Colorado
agencies in its region. The 650 employee Douglas County workforce, which Farmer notes are
the employees of the fastest growing county in the country, recently signed. The public agency
has purchased the firms affinity program (see June 1998 INTEGRATOR for details) for all
employees. Other new clients are National Museum of Health and Fisher Imaging
Corporation. Farmer announced that Vitality has also affiliated with San Francisco-based
WellCall, the CAM-oriented call center and health promotion firm. 888-578-9896
Arizona Arizona for Health and Medicine, the two clinic venture which was originally to be
part of a national CAM venture, is about to be put out of operation all together. The clinics were,
until last year, the anchor sites of what was to be a national initiative developed by Catholic
Healthcare West (CHW) which would support integrative clinic development throughout the
CHW system. In April of last year, word hit the street that CHW had pulling its backing.
However, the two clinics were to continue indefinitely in operation, under the medical direction of
Howard Silverman, MD. But in January of this year, the system made known its intention to pull
the plug on the two clinics. THE INTEGRATOR plans a detailed post-mortem in the February
issue.
California Beach Cities Health District, a publicly supported district in Redondo Beach, has
approved a business plan which includes development of an integrative medicine clinic.
Associate director Karen Ledebur who is heading up the exploration process told THE
INTEGRATOR that the clinic will be a for-profit subsidiary of the agency, which continues to receive
limited tax support. The facility will be housed in now vacant space in a former medical center
owned by the district. The space was recently used by Tenet Healthcare, which is vacating.
Beach Cities also runs a fitness center. The integrative model is under development. The district
is presently in the market for a director and welcomes inquiries. 310-374-3426
Oregon PacifiCare of Oregon announced on January 20 an expanded, three year agreement
with Portland-based Complementary Healthcare Plans (CHP) to expand its use of CHPs
network from just chiropractors to include acupuncturists and naturopathic physicians. Deborah
Origer, president and CEO of the HMO noted CHPs provider stability in explaining the move.
She stated that CHP has 98% provider retention in its network, since 1989. Another factor noted
in a joint release on the benefit is the open access model use by CHP, which is based on an
elaborate credentialing process through which CHP gains the confidence to not require pretreatment authorization. PacifiCare has 155,000 Oregon members. The CHP network will be
used for a rider offering, with an expected $10-$15 co-pay. For PacifiCare: 503-603-7155; for
CHP: 503-203-8333.
Washington
On January 5, the King County Council approved naturopathic physician Jane
Guiltinan, ND as a member of the Harborview Hospital Board of Trustees on a 9-4 vote. The
entire Republican caucus was joined by two Democrats, including sponsor Maggi Fimia, to
garner the winning margin. The appointment was opposed by some Harborview physicians (see
December issuer) as well as University of Washington physicians who viewed Guiltinans
employment at a competing institution, Bastyr University as a conflict of interest. The states
attorney general gave an opinion that no formal conflict existed. One councilmember who
supported the position suggested that perhaps they would be better off looking at this as an
opportunity for two highly respected institutions, in their own fields, to partner. 206-296-1613
End
INDUSTRY/HEALTH News File #2, January 1999
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NEWS FILE #2, FEBRUARY 1999
1) Business Developments
2) Government Affairs Briefs
3) Conferences
THE INTEGRATOR
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NOTE TO I/H SUBSCRIBERS ON THIS ISSUE::
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ASHP INITIATES BUYHEALTH.COM ONLINE PROGRAM

The American Specialty Health and Wellness (ASHW) affiliate of American Specialty Health
Plans (ASHP) introduced an online catalog of 250 products in early February. Products include
books, tapes, vitamins, herbs and etc. The online presentation allows shoppers to listen to or
view sections of tapes and read section of books. The products are priced at PPO-type rates of
15%-35% off retail. A release on the new offering focuses on ASHPs efforts to guarantee quality
from the firms whose products are offered. ASHP has chosen to work with a limited group of
manufacturers, including Mariposa Botanicals, Eclectic Institute, Sun-Ten Laboratories , Carlson
and ASWHs private label, Botanical Sciences. www.buyhealth.com, 888-buy-healthy.
AMERINET & TYLER ENCAPSULATIONS IN PRODUCT DEAL
St. Louis-MO based AmeriNet, which calls itself the nations largest membership-based group
purchasing organization (GPO) announced on January 20 an agreement to work with Portland,
Ore.-based Tyler Encapsulations to provide the GPOs members with nutraceuticals. Sue Ellen
Turner, a contract manager in AmeriNets pharmacy division states that the new contract with
Tyler offers AmeriNet members the opportunity to access premium line of ethical dietary
supplements with significant cost savings ion the newly emerging nutraceutical industry.
Comments from Tylers COO Michael D. Levin note his firms excitement in providing our
scientifically-based nutritional products to their members via a network of drug wholesalers. Joel
Glucroft of J. Glucroft and Associates is heading the initiative for Tyler. AmeriNet represents
8200 members facilities in 50 states, operates through three shareholder health organizations,
Hospital Shared Services, Intermountain Health Care and Vector. Membership represents
353,500 health care beds. 314-542-1930 for AmeriNet (www.amerinet-gpo.com),
BEDELL-LOGAN FIRMS BECOME SOLUTIONS IN INTEGRATIVE MEDICINE
The two firms organized by Linda Bedell-Logan, Bedell-Logan Billing Systems and Consulting
Services fro Medical Alternatives are finalizing their purchase by a new Maine C Corp., Solutions
in Integrative Medicine (SIM). The director of the new firm is Christopher Tuttle, a former aide to
Harvards David Eisenberg. Bedell-Logan is President/CEO. The business will focus in the
following areas; integrative medicine service, collections/patient advocacy, integrative medicine
consulting and educational programs. SIM has inked a deal with Cambridge Health Resources
for first program, scheduled for early June in San Francisco. The announcement supersedes an
earlier business plan in which Darrell Stewart, formerly president of Alternare of Washington, was
to have been involved. (See October 1998 issue.). 207-294-3280
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GOVERNMENT AFFAIRS BRIEFS
1) House Committee on Government Reform chair Dan Burton is initiating a series of hearings
involving patient access to complementary and alternative therapies. The first hearing will
feature Jane Seymour, actress, on February 24. The formal title of the exploration is: Opening
the Mainstream to Complementary and Alternative Medicine: How Much Integration is Really
Taking Place? An Inquiry into Access to Complementary and Alternative Medicine in
Government Funded Programs. Beth Clay is the staffer heading up the CAM work of the
committee. Contact is Will Dwyer: 202-225-5074
2) Institute for Alternative Futures, led by futurist Clement Bezold, PhD, an INTEGRATOR
advisor, held one of IAFs regular Foresight Seminars for Congressional staffers in the Rayburn
House Office Building on February 9. The meeting was entitled Complementary and Alternative
Approaches: Implications for Health Policy. Roughly 70 staffers and agency CAM leaders
attended the briefing which featured a panel of Bezold, Brian Berman, MD, CAM leader at the
University of Maryland whose group is the most prolific CAM research team; Lou Sportelli, DC,
president of National Chiropractic Mutual Insurance Company (NCMIC), and John Weeks,
INTEGRATOR publisher. NCMIC joined IAF as sponsor of the meeting.
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3
CONFERENCES
STANFORD-HARVARD CONFERENCE FIRMS UP

The Stanford-Harvard program for October 15-17 at Stanford, entitled Complementary and
Alternative Medicine: Practical Medicine and Evaluations, has firmed up. Billed as a first annual
conference, the headliners are Harvards David Eisenberg, MD, and Stanfords CAM duo of
INTEGRATOR advisor Kenneth R. Pelletier, PhD and William Haskell, MD. Interesting features
include a keynote by author-academic Regina Hertzlinger, recently fired JAMA editor George
Lundberg, MD, and assistant surgeon general Marilyn Gaston,. MD; presentations from various
corporate models (American Airlines, Ford, ARCO and IBM); and spokespeople for some major
health plans. INTEGRATOR advisors Andrew Weil, MD, Lee Launder (Price Waterhouse
Coopers), Laura Patton, MD (Group Health Cooperative of Puget Sounds) and Linda Bedell
Logan (Solutions in Integrative Medicine) are also among those expected to be presenting.
SOUTH BRONX PIONEER IN GROUP-DELIVERED SERVICES AT HEALTH CARE FORUM
Michael Smith, MD, known as a pioneer in acupuncture treatment of addiction and psychiatric
disorders, from his base at Lincoln Hospital in the South Bronx, was among the presenters at the
Healthcare Forum meeting. The following are some of his comments on patient empowerment
and the value of group-delivered vs one-on-one patient-provider services:
1) The first step to empowering patients is to have more of them in the room than practitioners.
In private -- one on one -- its never equal. The physician or other provider always has the
power.
2) In a group setting, trust comes more easily. People get to see how you treat others before
you treat them. If you treat them well, theyll share more.
3) Dont use the term wellness. For most people, it implies something they cant get. The
essence of low self-esteem is, the better you know me, the less youll like me. Instead of
wellness, we need to talk about comforting people. In chronic illness, the first issue is protection
and safety. The group is the quickest way to create this.
4) The group approach get you over the issue of transference between patient and provider.
5) Dont start with so much assessment on day one. Day one -- the day youre writing
everything down -- is the day when patients are least likely to tell you the truth.
Smith noted that one of the benefits of working with the very poor in the South Bronx is that
nobody care much what we did and so he had an ability to explore strategies in diverse ways.
End
INDUSTRY/HEALTH News File #3, February 1999
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NEWS FILE #4, FEBRUARY 1999
1
2
3
4
Business Developments (Blues/Alternare, Marino Center)

CAM Professions (APMA Access bill)
Conferences (HC Forum attendance, new IM conference)
Miscellaneous (Weil-Relman debate, USP Dietary Sup division, CAM features)
THE INTEGRATOR
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NOTE TO I/H SUBSCRIBERS ON THIS ISSUE
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CHANGE IN BLUES CONSORTIUM WITH ALTERNARE

Industry sources have told THE INTEGRATOR that the reported deal between Anthem Blue
Cross-Blue Shield and a handful of other Blues plans and Alternare Health Services is unraveling.
Cliff Waldman, MD, reached by THE INTEGRATOR, noted that the Anthem deal with Alternare is
still under discussion but is unsigned. Candace Sellers Cappelli from Alternare confirmed: We
are still moving forward with Anthem -- they were out here for a site visit last month. Waldman
clarified that what has come apart is an effort to have between 7 and 10 Blues plans participate
as a group in a joint process to review vendors and that now its up to the individual plans.
Anthem, with its four state reach (OH, IN, KY, CT) is continuing to operate on CAM as a unit.
MARINO CENTER RE-STRUCTURED AS NOT-FOR-PROFIT
The Marino Center in the greater Boston area, a 12,000 square foot integrative medicine clinic
founded in 1994, has entered a new phase in its development, according to administrator Carmen
Pascarella. Pascarella told THE INTEGRATOR that the Center added new primary care
providers to its staff, to make the model fully integrative. Roughly 30%-40% of the Centers
revenue base from 25,000 annual patient visits is now conventional primary care. The Centers
long process toward profitability is expected to be achieved within 6 months, according to
Pascarella. The clinic has 45 employees, including 2 chiropractors, 3 licensed acupuncturists, 2
massage therapists, and an assortment of MDs and NPs with specific CAM skills. The center has
an ongoing relationship with the Massachusetts College of Pharmacy which has both educational
and research components. Marinos medical director, Donald Levy, MD, is a 15 year faculty
member at Harvard Medical School. Pascarella notes that the clinic is beginning to develop a
provider network which it is expecting to take national. The Center is presently developing a
national board of directors. 617-661-6225
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2
CAM PROFESSIONS & ORGANIZATIONS
APMA TO RE-INTRODUCE ACCESS TO MEDICAL TREATMENT ACT
Candace Campbell, executive director of the American Preventive Medicine Association (APMA)
is in the final stages of reviewing and gaining external endorsements for the 1999 version of the
Access to Medical Treatment Act. The federal legislation would protect from action by licensing
authorities providers who explore therapies which have evidence of safety by which are not
approved by the FDA, as long as this status is disclosed to the patients. APMA, led by
Campbell, is the most significant practitioner-oriented CAM lobbying force in Washington, DC.
703-759-0662
WHOOPS! ON AANP CONFERENCE LOCATION
The annual conference of the American Association of Naturopathic Physicians will be in Coeur d
Alene, Idaho, at the world class Coeur d Alene Resort. It is not Sandpoint, as previously
reported. The conference is Nov. 3-7, 1999. 206-298-0126.
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3
CONFERENCES
HEALTHCARE FORUM: CONTENT HIGH -ATTENDANCE LOW

The Health Forum Best Practices conference in Honolulu (February 10-13) was very well
received but by a small group of just 120 participants. Forum sources attribute some of the turnout problems to a marketing plan which was hampered by the internal restructuring required
following the merger of the Healthcare Forum into the American Hospital Association in the
middle of 1998.
(ANOTHER) INTERNATIONAL CONFERENCE ON INTEGRATIVE HEALTH MEDICINE
Green Herron Conferences, Inc., in Brooklyn, New York has issued a call for papers for a two day
International Conference on Integrative Health Medicine which is planned for the New York
Marriott Marquis. September 18-19, 1999. Phone: 718.768.4436. www.greenherron.com
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4
MEDIA & MISCELLANEOUS
US PHARMACOPOEIA IN NEW DIETARY SUPPLEMENT DIVISION

A restructure of the quasi-governmental US Pharmacopoeia has been completed under which a
new Division of Dietary Supplements was established. Heading up the division is V. Srini
Srinivasan, PhD, who has followed these issues for the USP for many years, most recently a
senior scientist in the USPs Division of Standards Development. The division is charged with
exploring the field of dietary supplements as well as related developments in the professions
which use such agents. 301-816-8334.
WEIL-RELMAN DEBATE PLANNED
Andrew Weil, MD, and Arnold Relman, MD, editor emeritus of the New England Journal of
Medicine, will debate CAM on April 9, 1999. The decision to debate grew out of a lengthy article
on Weil which Relman wrote for the Atlantic Monthly in which many of Weils positions were
challenged as falling far outside the mainstream of acceptable medical thinking. The exact place
and time was not yet known when this information was made available to THE INTEGRATOR.
TWO CAM FEATURES
A) NUTRITION BUSINESS JOURNAL
The January 1999 issue of the Nutrition Business Journal (Strategic Information for Decision
Makers in the Nutrition Industry), widely regarded as the best source of data on the burgeoning
nutraceutical industry has a cover story on alternative medicine integration. This is the second
annual issue to focus on alternative medicine. Those interviewed for the piece include Bob Mayo,
president of Cancer Treatment Centers of America, Alan Trachtenberg, MD, former acting
director of the NIH OAM and INTEGRATOR publisher-editor John Weeks. 619-295-7685
B) NY TIMES: AMERICANS GAMBLE ON HERBS AS MEDICINE
February 9, 1999. Jane Brody filed this piece. General overview of an exploding industry ($839
million in 1991 to $4-billion in 1998), and problems of regulation. Some interesting points: Peggy
Brevoort with East Earth Herb and an authority on the industry notes that demand is exceeding
supply with St. Johns Wort and Kava, introducing the danger of adulteration by unscrupulous
dealers; a few medical and pharmacology schools (none named) have recently introduced
courses in phytomedicine; and the two leading publications, German Commission E (American
Botanical Council/.Integrative Medicine Communications) and PDR for Herbal Medicines (Medical
Economics) are significantly featured.
CHALLENGES IN DEVELOPING CAM SKILLS IN THE INSURED CONTEXT
An interview for the upcoming February 1999 INTEGRATOR feature on the shut-down of the
Arizona Centers for Health and Medicine yielded the following astute comments from a long-time
practitioner of natural medicine: In the traditional cash-based CAM practice, with a high-degree
of self-selection among the patients, the practitioner has much more room to explore. The patient
and practitioner enter into this together and try and find the best way to go forward clinically. But
inside a health system and covered benefit there can be a dual filter against this exploration. The
practitioner is much more concerned with medical necessity and therefore whether there is a
JAMA article to back (a given strategy) and so is more conservative. And the patient is likely to
be more conservative also. The expectation of the population has a huge influence on the
practitioners ability to perfect their art. If a population, or payer, wont risk the cash cost, the
practitioners learning curve is less steep.
Comments, responses?
End
INDUSTRY/HEALTH News File #4, February 1999
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NEWS FILE #5, MARCH 1999
1
2
3
Integrative Clinic Developments (INTEGRATOR Report #2, ACHM)

Three Public-Private CAM Coalitions (New England, Minnesota, WA)
CAM Professions/Organizations (Comparative Size/Budgets, plus)
THE INTEGRATOR
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As always, your feedback, additions or corrections -- of perspective or fact -- are welcome.
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1
INTEGRATIVE CLINIC DEVELOPMENTS
SPECIAL TO I/H SUBSCRIBERS: INTEGRATOR BENCHMARKING REPORT #2

INDUSTRY/HEALTH Subscribers may request prior-to-publication copies of THE INTEGRATOR
Integrative Clinic Benchmarking Survey, Report #2. A special combined February-March issue
includes a four page chart of data on 8 new clinics: 5 inside systems -- California Pacific
Medical Center, Hennepin Medical Center (MN), University of Arizonas University Physicians,
UCSF/Stanford and Harvard Vanguard Medical Associations -- and 3 private ventures: Institute
of Complementary Medicine (WA), East-West (CO) and Inner Harmony (PA). The report includes
a three page analysis of trends and observation from the entire set of 14 clinics presented in the
two reports. Contact Cheryl Robinson at isnh@quidnunc.net , or 206-933-7983, if you want an
advance copy. The special two-month 16 page issue of the INTEGRATOR is expected to be
mailed mid-March.
KEY FACTORS IN AzCHM/ACHM FAILURE
The next issue of THE INTEGRATOR also explores the failure of the Arizona Centers for Health
and Medicine/American Centers for Health and Medicine, backed by Catholic Healthcare West.
Here are the key findings, based on interviews with the principals.
1
Managed Care/PCP Strategy
** The initial position of the clinic was as part of a broader MERCY INTEGRATED HEALTH
(MIH) system strategy -- a part of the CATHOLIC HEALTHCARE WEST consortium, in primary
care clinics and the clinic had no separate identity until three years out (1997); disengagement
was slow and complex
** Should never have taken conventional PCP contracts; HMO-first strategy should have been
abandoned
** Significant problems in creating the data which would build the case for higher managed care
compensation and support clinic management
** If CAM services are available through a healthplan, wealthy people in the market (who could
pay cash for CAM) will expect CAM as covered benefits
** Staff was entrenched in a dont pay now, well bill insurance culture
** Working with CAM providers on appropriate record keeping is very difficult
** Managed care should only be contracted on an integrative clinics own terms
2
Clinic Size, Design and Location
** Should have started smaller -- 4,000-5,000 sq ft vs 10,000 sq ft -- instead of building a big
box
** Some design features were too pricey
** The location was too expensive, and should have been in Scottsdale, not Phoenix
** The building -- a former Savings & Loan -- was expensive to convert and had lousy
parkinglot
3
Physician Payment & Incentives
** Should have kept incentives rather than offer a MDs/DOs straight salary
** Performance standards for integrative medicine productivity had to be developed
** Benefits were rich, but to get an MD/DO with these CAM skill sets, you cant squeeze the
compensation package too much
4
Instability
** AzCHM/ACHM had 3 different leaders with 3 distinct styles in 6 years; energy was consumed
in repeatedly starting anew
** The clinic/venture also had 3 phases of ownership
** The ACHM venture side was tied to the clinic and not given enough time to generate its own
revenue streams and products
** The special, covered integrative benefits negotiated were not allowed the time to mature as
benefits
5
Marketing
** Should have moved more rapidly toward the self-pay market and enhanced advertising
** Never enough money spent to position the clinic in the local market; most well-kept secret in
Phoenix
6
System Relationship
** MIHs attention was fixed on the losses associated with the purchases of PCP clinics, rather
than on the unique CAM venture; AzCHM should have been moved out of MIH more rapidly
** We had isolated support from key leaders but it was in a context of opposition
** System leaders were wonderfully supportive, they just had their hands full with other pressing
things.
** Some leaders were embarrassed by AzCHM/ACHM; they okayed it but squeezed it
There was significant agreement on most of this, among the succession of leaders at the clinics
(INTEGRATOR advisor Sam Benjamin, MD, Phyllis Biedess and Howard Silverman, MD). There
were areas where perspectives differed, such as the failure to successfully promote the natural
pharmacy as a revenue source, and the role of leadership.
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2
THREE PUBLIC-PRIVATE COALITIONS
One intriguing development in some communities is public-private CAM exploration. Below are
three such endeavors: one in, New England, in exploration; a second, in Minnesota, in start-u;
and a third, in Washington, borne out of three separate public-private ventures under way in the
past 3-4 years.
NEW ENGLAND HOSPITAL CONSORTIUM
The NORTHERN NEW ENGLAND COMPLEMENTARY CARE CONSORTIUM is continuing to
explore collaborative CAM initiatives. The premise of the group, according to ROGER
WELLINGTON, the groups chief organizer, is that all large health care deliverers will need a
CAM strategy in the next 2-3 years. The Consortium believes each will face the same four
tasks: 1) reviewing the research to determine which services to offer; 2) writing reasonable
clinical guidelines that can be implemented; 3) developing credentialing procedures, and 4)
setting up reimbursement mechanisms. We contend, states Wellington, that it makes more
sense to do this in a coordinated fashion. The consortium seeks a combined funding source of
member "dues" and grant funding. The Consortium is working in conjunction with the NEW
HAMPSHIRE HOSPITAL ASSOCIATION and plans to have a detailed proposal written by the
end o February. For Wellington: 603-673-6576
WASHINGTON STATES KING COUNTRY INTEGRATIVE MEDICINE 2010

In Washington State, KING COUNTY COUNCIL members MAGGI FIMIA (D) and KENT PULLEN
(R) have commenced a process to create a blue-print for King County Integrative Medicine 2010.
Pullen championed the pioneering KING COUNTY NATURAL MEDICINE CLINIC (9/96, 1/98)
and Fimias naturopathic physician appointee was recently elected to the HARBORVIEW
MEDICAL CENTER Board of Trustees, believe the region will be served by a coordinated
process which reviews recent advances in integration and sets a course for the near future. Fimia
explains that the initiative is an opportunity for all of those working on integration to share what
they have done with each other and the public, then map out what we can accomplish -- a
coordinated plan on which we can agree. Fimia says the focus will be on the local, but relevant
state and federal policy issues are necessarily also being addressed. The initial planning team
includes individuals who were involved with the regions three leading, multi-disciplinary,
mainstream/CAM integration initiatives: the Natural Medicine Clinic, the Clinician Workgroup on
the Integration of CAM, and Building Bridges. The former was led by the county, the second by
the states OFFICE OF THE INSURANCE COMMISSIONER and the later by REGION X US
HEALTH & HUMAN SERVICES/RICHARD LYONS, MD and BASTYR UNIVERSITY/PAMELA
SNIDER, ND. The goal is a consensus document which will be completed by late 1999. 206296-1001
MINNESOTA COALITION: CONSUMER SAFETY ON NUTRACEUTICALS
An unusual coalition involving major health systems, the University of Minnesota College of
Pharmacy, consumer associations (Minnesota Stroke Association, Parkinson Association of
Minnesota) and the American Nutraceutical Association (ANA) has announced a new campaign
to educate consumers on all aspects of quality in the use of vitamins and herbs. INTEGRATOR
advisor Chris Foley, MD, editor of the ANA Journal, is a leader in the effort, as is Jodi Chafin, an
herbal resource pharmacist at HMO HealthPartners. The coalition, called Consumers First, is
backed by an unrestricted educational grant from Upsher-Smith Laboratories. 2/16/99 AOL News
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3
CAM PROFESSIONS & ASSOCIATIONS
AANP WEBSITE REPORT

The award-winning website of the AMERICAN ASSOCIATION OF NATUROPATHIC
PHYSICIANS is presently generating over 4500 hits per day, according to webmaster RICK
KIRSCHNER, ND. The associations message board has over 19,000 hits in its first year of
operation. During the week of the report, the visitors included surfers from the UK, Australia,
Singapore, South Africa, Israel, Sweden, Japan, Italy, Brazil, Malaysia, Mexico, New Zealand
and France. Kirschner notes that the AANPs database of articles is the most popular feature,
along with info on finding an ND. Contact: Rick Kirschner, ND http://naturopathic.org
MASSAGE ASSOCIATION JOB NETWORK ONLINE
The American Massage Therapy Association launched on February 24 a Job Network where its
members can post resumes and be linked to potential employers. The service is available at
www.amtamassage.org
ACAM SETTLES FALSE ADVERTISING ON CHELATION
The AMERICAN COLLEGE FOR THE ADVANCEMENT OF MEDICINE (ACAM), an
organizations of physicians, many of which practice chelation therapy, has agreed to settle a suit
of false advertising brought by the FEDERAL TRADE COMMISSION (FTC). The FTC argued that
ACAM had made unsupported claims that the therapys effectiveness in treating atherosclerosis
was supported by scientific studies.
CAM PROFESSIONS: REPORT ON FINANCIAL CLOUT AND BUDGETS
One of the obstacles to the rapid advancement of CAM integration is the combination of
significant demands on CAM professions combined with limited resources. Health plans and
health systems may view certain activities as best provided by professional associations. These
may include developing practice guidelines, standards of practice, creating a research
infrastructure, or educating providers to be skilled participants in a managed or integrated
environments.
In addition, changes in federal statute require significant lobbying. Securing outside funding for
research from government and foundations tends also to be built on long-term relationship
building.
Yet these may take a back seat to more immediate issues -- the push for expanding licensing for
instance (current activity is listed in the 1/99 issue) remains a priority for acupuncturists,
naturopathic physicians and massage practitioners. Indeed, licensing is a core credentialing
criterion for many managed care organizations and health systems. After these sometimes
protracted state efforts, few dollars are left for other initiatives.
Table 4 was created to orient INTEGRATOR readers to the current financial status of the CAM
professional organizations. .The total national budgets of the combined acupuncture and
naturopathic medical professions is less than $1.5 million. Add massage, and annual
expenditures reach about $10-million, or 4% of the annual budget of the American Medical
Association. If chiropractic, the limbo profession, is included, the combined CAM budget is still
a fraction of the AMAs nearly quarter-billion in annual revenues. Note that the AMAs $228
million does not include the revenues of the AMAs recognized specialty societies.
In short, the dis-equillibrium in economic clout between professional advocates of natural
healthcare and those of conventional treatments -- absent a significant change within the AMA
-- can be expected to continue for the foreseeable future. Put differently, the CAM professions,
as they are presently funded, cannot be expected to provide significant public policy advocacy for
CAM.
Table 4: Comparative Budgets of CAM Professional Organizations and the AMA
CATEGORIES:
Profession
Professional Members
Due Per Year
1998 Budget
Budget designated for managed care or insurance work
American Association of Medical Acupuncture
1550
$110 to $285
$650,000
No separate line
American Association of Naturopathic Physicians
650
$395
$760,000
$7500, plus share of executive directors time
American Massage Therapy Association
22,000
$235(1)
$8,400,000
No separate line item
American Association of Oriental Medicine
687
$220
$198,000
Volunteer committee, staff support, part of director time
National Acupuncture Alliance
450-500
$170
$175,000
No dedicated funds; some of executive directors time
American Chiropractic Association
19,000
$600
$7,500,000
$440,000
American Medical Association (2)
295,000
$420
$228,034,000
Not clear
The total national budgets of these combined CAM professions is about $10-million, or 4% of that
of the American Medical Association. If chiropractic, the limbo profession, is included, the CAM
budget swells but is still a fraction of the AMAs nearly quarter-billion in annual revenues. The
latter does not include the revenues of the AMAs recognized specialty societies. The disequillibrium in economic clout between professional advocates of natural healthcare and those of
conventional treatments can be expected to continue for the foreseeable future.
This INTEGRATOR mini-survey data underlines a case made in the Viewpoint of the upcoming
INTEGRATOR: Short of a significant turnabout in AMA agenda (not likely given the firing of
George Lundberg), we must view natural healthcare as a special kind of stewardship -- a
Natural Healthcare Commons. This Commons must have a primary relationship to
collective/government support if natural healthcare is ever to be on any where near a balanced
economic footing with conventional treatment. More in the Feb-March viewpoint.
Your comments are welcome.
End
INDUSTRY/HEALTH News File #5, March 1999
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1.
2.
3.
4.
Business Developments (WellCall, Integrated Health Plan, CHP)

Conferences (Harvard, U Arizona/Columbia, etc.)
Publications and Media (Massage laws, Aspen, AHC)
FEEDBACK LOOP: American Centers
THE INTEGRATOR
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WELLCALL OFFERS PREVENTIVE HEALTH SPENDING ACCOUNT
WellCall, Inc., the San Francisco-based CAM services organization has initiated a new product
which it calls a Preventive Health Spending Account (PHSA) The product fills in the missing
needs in a SECTION 125, but can also be offer as a stand-alone by the employer. The Section
125 program allows employers to offer employees a chance to have a certain monthly deduction
from their wages to create a pool of un-taxed funds money which can be used to take care of
medically necessary health care expenses which are not in the benefit plan. Often these are
used for eyecare, orthodontia, and etc., but are increasingly also used for chiropractic and
acupuncture. The IRS, however, only allows these funds to be spent for medically necessary
services, and specifically forbids their use for smoking cessation of for weightloss programs.
Massage, for instance, is another gray area.
ARLENE SINGER with WellCall says the PHSA is handled, at year end, as an addition to actual
compensation. The employer decides the amount of contribution ($100, $250, $500, etc.), the
level of co-pay (0 to 50%, generally) and the range of covered services. Singer says employers
like the flexibility. Three of WellCalls clients demonstrate the flexibility:
1) AAA WEST CENTRAL NEW JERSEY (300-400 employees) offers a straight match (50%) of
up to $100 per person on smoking cessation or weight management, for the employee or a family
member.
2) PACIFICARE HEALTH SYSTEMS (8000 its employees -- NOT offered to its HMO members)
offers up to $250 per employee, with an employee match, on anything on which they submit our
referral plus ax receipt, according to Singer. WellCares referrals can be to a wide range of
wellness and CAM programs.
3) FINOVA CAPITAL (2500 employees) $300 straight payment to employees and up to $600
total fro a family, diverse services.
Singer says the downside for the employer, compared to the Section 125, is that the employer
has to pay the benefit, and for its administration. But the upside is that you can choose whats
in it and push employees to take better care of themselves. WellCalls distinctive services include
relationships with LANDMARK HEALTHCARE and VITALITY ACCESS. 415-621-1606.
COMPLEMENTARY HEALTHCARE PLANS
The Spring 1999 newsletter from Portland, OR, based Complementary Healthcare Plans
(ChiroNet, AcuMedNet, NaturNet) shows the firms capitation membership growing from just
10,000 covered lives in 1994 to its present dominance in the Oregon market of 170,000 lives.
The firm notes that its new combined (acupuncture, chiropractic, naturopathic), direct access,
self-referred product which it began selling in 1998 is showing good start-up growth, with a 650%
enrollment increase over initial year figures. 800-449-9479
INTEGRATED HEALTH PLAN, INC. OFFERING PROVIDER CONTRACTS
Some providers in WASHINGTON STATE began receiving applications to contract with St.
Petersburg, Fl-based IHP, Inc, on an Alternative Care Provider Network the firm has in
development. Marketing materials include claims that the firm services 1,100 payers,
representing 8-million members nationwide and $2-billion in annual claims. The firm charges a
$95 credentialing/application fee to join its managed care network, and requires providers to take
rate of 75% of billed charges. 727-345-8614
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CONFERENCES
The HARVARD UNIVERSITY SCHOOL OF MEDICINE CAM conference chaired by David
Eisenberg was once again a success, drawing roughly 650 paid. According to a show of hands,
50% were physicians, and about 25% of the total number had some administrative or business
function. The conference, for the first time, included a breakout session offering on the practical
delivery of services: Billing, Reimbursement and Network Strategies, offered by INTEGRATOR
advisor LINDA BEDELL LOGAN and publisher JOHN WEEKS. This business breakout -- one
of eight or 10 concurrent offerings each offered 4 times -- was among the most attended,
according to the organizers, with roughly 120-175 individuals in the business sessions. Among
the sponsors of the conference were NATIONAL CHIROPRACTIC MUTUAL INSURANCE
COMPANY, INTEGRATIVE MEDICINE COMMUNICATIONS, INTEGRATIVE MEDICAL ARTS

(IBIS) and AMERICAN SPECIALTY HEALTH PLANS.
MEMORIAL HERMANN HEALTHCARE SYSTEM is seeking sponsors for the June 17-18
program on CAM integration which it is offering in conjunction with The University of Texas Houston Medical School. Headliners for the program are LEE KAISER, JAMES GORDON, MD,
and INTEGRATOR advisor KENNETH R. PELLETIER, PHD, MD(hc). Sponsors runs from
$50,000 Diamond to a $500 Exhibitor level. The material do not note how many individuals
are targeted. The conference is entitled: Complementary and Alternative Medicine: Modern
Science and Ancient Wisdom. The U of Texas is one of the NIH CAM centers. Contact Mary
Helen Morosko, manager of special projects: 713-744-2062.
U ARIZONA/COLUMBIA are joining again to offer their 4th annual course on BOTANICAL
MEDICINE IN MODERN CLINICAL PRACTICE, May 24-27, 1999, in New York. The sterling
faculty includes INTEGRATOR advisor ANDREW WEIL, MD, ADRIANE FUGH-BERMAN, MD,
VARRO TYLER, PHD, NORMAN FARNSWORTH, PHD, MARK BLUMENTHAL, ROB
MCCALEB, and etc. $1200 for physicians. 212-781-5990
LIEBERT PUBLISHING GROUP is sponsoring its NATURAL PHARMACY WEST conference in
Palm Springs, CA, on June 4-6. $299. 1-800-5-BIOCON.
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PUBLICATIONS & MEDIA
A good overview of the STATUS OF MASSAGE LICENSING LAWS nationwide is in the
March/April issue of MASSAGE MAGAZINE. A list of laws in all regulating states describes: 1)
regulatory contact; 2) title/type of credential; 3) required education/written or practical exam; 4)
whether National Certification Examination for Therapeutic Massage and Bodywork is used; and
5) renewal fees. Another article in the same publication reviews the federal governments review
of the classification of massage into the array of occupations in the United States. The core
question -- also of interest to payers -- is whether massage is a personal service, a health care
procedure or both. The decision on classification is reflected, downstream, in the types of
information which will be entered in US databanks over the next 10 years. For the past 25 years,
the federal government has classified massage as a personal services. Both articles are by
massage politics reporter JACK THOMAS. 1-800-533-4263 for subscriptions.
ASPEN PUBLISHING is advertising a three ring binder resource entitled HOLISTIC HEALTH
PROMOTION AND COMPLEMENTARY THERAPIES: A RESOURCE FOR INTEGRATED
PRACTICE at $139 as a risk-free for 30 days trial. The editorial advisory board includes
INTEGRATOR advisor Eileen Stuart, MS, RN, C and Ann Gill Taylor, RN, EdD, FAAN, with the
CAM center at the University of Virginia. Looks to be a pretty basic overview. 800-638-8437
ALTERNATIVE THERAPIES IN WOMENS HEALTH, a Science-based Information for
Clinicians, is a monthly 8 page newsletter now in its 4th month, published by American Health
Consultants. ADRIANE FUGH-BERMAN, MD, assistant clinical professor of the Department of
Health Care Services, George Washington School of Medicine and Health Sciences, is the
publications editor. Like the publishers ALTERNATIVE MEDICINE ALERT, this newsletter is
accredited for CME for physicians. American Health Consultants is a division of MEDICAL
ECONOMICS. Vol 1, #4, March 1999, was largely written by Dr. Fugh-Berman and included
articles on soybean intake and bone density, chocolate addition, and various clinical abstracts
and book reviews. $189/YR. 1-800-688-2421
__________________
FEEDBACK-LOOP: AMERICAN CENTERS FAILURE

The following is feedback from one I/H subscriber on the reasons for the failure of the ARIZONA
CENTER/AMERICAN CENTERS (see I/H Newsfile #5).
I/H RESPONSE: Everything I read about CAM clinics and integration failures always seems to
have an issue with managed care at its roots. I don't believe that quality CAM services can
survive in a managed care environment. The incentives for managed care are totally backwards
with its emphasis on productivity and short term treatment of symptoms. I don't know the details
about the failure of the Arizona venture other than what you have reported, but the naivet of
clinic managers believing that they can survive a managed care compensation scheme is beyond
reasoning. The data just do not exist to manage risk effectively in a CAM environment alone,
much less in an integrated environment. I believe that CAM needs to track data for years before
any attempt to manage risk is undertaken, and then only if the incentive is to provide long term
health, not cure short term illness.
COMMENT: My sense that the only way CAM can work in a managed care environment is with a
leap of faith that we can think about the "management of care" and the current payment structure
outside of the current manifestation of each. I think the naivet is associated with the naivet
that many of us -- including yours truly and, as I understood, the founders of the Arizona Center - had in 1994 that "health reform" might indeed have something to do with the principles of the
HMO movement (longer term thinking, early intervention, paying a little more now to save a lot
later). What has unfolded -- squeezing the PCP, productivity pressures, continued productivitybased payment -- has created an environment even less open to truly managing care. ACHM
was beginning to develop some interesting special relationships with payers, which will be
described in a future I/H news-filing. Their strategy then -- and the strategy that I believe is
necessary on all this, is partnership, partnership, partnership -- with purchasers optimally,
bringing. -- JW
Your additional feedback is welcome ...
HINDSIGHT VIEW OF A FINANCIAL FORMULA ON INTEGRATIVE CLINICS
In the course of interviewing INTEGRATOR advisor Sam Benjamin, MD, for the February-March
feature on Arizona Centers for Health and Medicine/American Centers for Health and Medicine,
Benjamin, ticked off his formula for financial success in an integrative clinic. Benjamin was the
clinics founder and medical director until spring of 1997.
1) Physician Services (MD/DO) are places where a clinic must break even. His rough
calculation: Salary of $120,000, generates ($1500/day X 4.5 da/wk = $6750 X 40 wk/yr =
$270,000). This covers related overhead.
2) Ancillary Services: PROFIT CENTERS
A) Pay massage practitioner $25,000, generate $60,000; pay acupuncturist $30,000-$40,000,
generate $60,000-$80,000.
B) Herbs/Dispensary: Clinic-related sales, plus direct retailing = 25-40% of gross.
Note, this was not the strategy which AzCHM/ACHM pursued. It is offered merely as fodder for
thought as clinics and related interests wrestle with the issue of profitability in integrative clinics.
End
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Landmark Report II on HMOs

Government Action (Medicare + Choice & CAM, Burtons exploration, etc.)
Business Development (Landmark HMO survey, Landmark senior product)
CAM Professions (Chiro campaign re HCFA, California NDs, AAOM fall conference)
THE INTEGRATOR
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LANDMARK HEALTHCARE REPORTS SECOND HMO SURVEY
On March 10, Landmark Healthcare reported the second of its surveys of key executives of
HMOs relative to CAM. The survey was conducted for Landmark by National Market Measures,
Inc., between November 1998 and January 1999. 114 executives were surveyed. Top findings
include:
*** Types of CAM offered, and % offering: DC/65%, acupuncture/31%, massage/11%, vitamin
therapy/6%, relaxation therapy/5%, herbal therapy/4%, and etc.
*** The survey concluded that the average proportion of membership provided with alternative
care among HMOs offering it was up from 48% to 56% (a 17% increase) in the ensuing 2-3 year
since the first HMO survey.
*** Perceive impact (by these executives) on total health costs: 21% reduces, 30% neutral
and 49% Adds
*** Most important reason for offering: 38% (members, groups wanted), 38% (mandates, 8%
clinically effective, 7% differentiate from competitors
*** 34% believe demand for CAM will be strong, 40% moderate and 34% mild.
Interestingly, 43% of the interviewed executives believe that chiropractic is not alternative.
Lynette LaSalle at 916-569-3326 for more information.
_________________
HCFA, MEDICARE AND CAM: TWO PERSPECTIVES
A growing number of questions are arising relative to Medicare and CAM. The next two shorts
review basic realities.
MEDICARE + CHOICE: SIGNIFICANT CAM OPTIONS, HCFA TELLS INTEGRATOR
Medicare+Choice managed care plans offer a significant opportunity for plans to integrate CAM
services, numerous officials with the HEALTH CARE FINANCING ADMINISTRATION (HCFA) in
Baltimore, Maryland have recently confirmed for THE INTEGRATOR. Explorations of this topic
all of whom wished to speak off the record -- led to the following consensus understanding as
explained by one director-level HCFA official:
1) Plans are paid based on a county-adjusted per member per month (PMPM) rate. Lets
assume that this is $600
2) All plans must offer what we call original Medicare services (Medicare A & B). Plans give
HCFA a line by line accounting of what these services will be and how much these will cost. Lets
assume that this adds up to $550. This leaves a surplus of $50 PMPM.
3) Medicare + Choice law states that the surplus has to go to beneficiaries in the form of
additional benefits. Therefore the plan then has to describe, also line by line. what benefits they
will offer the seniors with the additional $50. This is the + Choice portion.
4) The plan can then choose to offer CAM services as a part of this additional service.
5) CAM services must be offered by a person licensed to operate in the state. When asked
directly if this meant the services of a LICENSED ACUPUNCTURIST, NATUROPATHIC
PHYSICIAN or MASSAGE THERAPIST, the answer was as long as the provider is operating
within a licensed scope of practice.
In short, a context exists for partnering with Medicare + Choice plans to include CAM services.
GRANT BAGLEY, MD, states that such plans, if fact, could choose to cover herbal therapies in
this additional services category, as long as the other criteria were met. However, as one CAM
network executive states: The problem is there is generally not a whole lot of money to play
with. The margins are quite slim.
ORIGINAL MEDICARE: WHAT CAM IS IN THE ORIGINAL FEE FOR SERVICE PACKAGE?
GRANT BAGLEY, MD, a physician-attorney who is a division director for HCFA, clarified the
current coverage status of the following CAM providers and services under HCFA policy:
*** Not much is covered.
*** Chiropractic is very specific and only covered for a very limited, specific situations (up to 12
visits for acute low back).
*** Other therapies need to fit into physician services or be provided by a conventional provider
(MD, DO, NP, PT).
*** Biofeedback is conceivable but would depend on for what, by whom and where done.
*** Acupuncture is being explored, in the context of the NIH Consensus Conference
(November 1997). A working team is looking at how acupuncture might fit. Bagley did not
name a time when the group was expected to make recommendations but noted that if they
chose to include acupuncture, it would take a Congressional act, and even then could only be
provided by presently accepted provider categories. The include licensed acupuncturists would
require an act of Congress. Said Bagley: Our Board of Directors -- Congress -- has not told
us we can do that yet.
*** Mind-body programs, such as the Dean Ornish, MD, programs for coronary artery disease,
would take an act of Congress.
The new HCFA rules spelling all this out appeared in the June 26, 1998 Federal Register (FR),
starting at page 34967. In the preamble HCFA regulators make the following points. The HCFA
benefit rules are based on changes Congress made to the Medicare statute, Part C of title XVIII
of the Social Security Act (FR page 34985).
Source: Department of Health and Human Services, Health Care Financing Administration,
"Medicare Program: Establishment of Medicare+Choice Program," Interim final rule with
comment period, 63 Federal Register, p. 34967, June 26, 1998.
______________
LANDMARK DEVELOPS GUIDELINES FOR SENIOR CAM

Staff at LANDMARK HEALTHCARE has develop over 30 senior guidelines for CAM, CEO Marla
Orth told THE INTEGRATOR. Orth notes that clinical considerations specific to the senior age
group need to be part of any CAM initiative in Medicare managed care. Says Orth: It's
a matter of patient and plan protection alike, and purchasers of outside CAM services need to
keep this in mind. Some examples Orth noted are:
*** Landmark does not recommend that seniors have an herbal benefit because older patients
are often not compliant in taking medications.
*** There should be no manipulations of osteoporotic patients unless you want to risk broken
bones.
*** Not only do you need to steer clear of electroacupuncture with any patient who has an
implanted electrical device, you need to deploy an acupuncture checklist to make sure patients
are checked for this possibility.
*** You don't want to needle a patient who is on a blood thinner or a large amount of aspirin, and
again a checklist should be used to prevent it.
Orth told THE INTEGRATOR that more guidelines are being developed all the time. Landmark
has partnered with Blue Cross Blue Shield of Colorado on a CAM Medicare product which was
described in the December INTEGRATOR. 800-638-4557
_____________
CONGRESSMAN DAN BURTON (R-IN) is continuing his series of explorations of CAM through
his GOVERNMENT REFORM COMMITTEE hearing process. A statement from Burton notes
that the Committee is concerned about regulatory over-reaching that will impede the flow of
useful information to the public, inhibit doctor patient communication and intimidate individual
physicians into giving up the practice of specific alternative therapies, even when their medical
judgment tells them to recommend such therapies to their patients. On Wednesday, March 10,
the off-label use of EDTA Chelation was explored, and a hearing in late March will focus on
dietary supplements. Burton notes that a special area of his interest is the FTCs investigation
and subsequent extraction of a settlement agreement from the American College for
Advancement of Medicine (ACAM), an organization founded by physicians who specialize in
chelation and other CAM methods. The past-president and president elect of ACAM are among
the March 10 presenters. 202-225-5074
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CAM PROFESSIONS
The AMERICAN CHIROPRACTIC ASSOCIATION has announced that increasing numbers of
state chiropractic associations, individuals (892 total) and other chiropractic organizations (such
as the NATIONAL CHIROPRACTIC MUTUAL INSURANCE COMPANY) have now contributed to
a Legal Action Fund which is underwriting a suit against HCFAs new regulation which allows
plans to meet the MEDICARE manipulation mandate with non-chiropractors. In The Week in
Chiropractic (3/1/99) Mark Minuto, DC, president of the Pennsylvannia Chiropractic Association
(PCA) is quoted as saying: We, in the PCA, understand that, as HCFA/Medicare goes, so goes
the world. The ACA and PCA believe note that state and corporate practices often follow HCFA
practices. Notably, the same issue of the newsletter points out the HCFA -- in a parallel
manner -- is proposing that nurse anesthetists be allowed to administer anesthesia to Medicare
patients without a physician supervision. Vol 5, #19, TWIC. For ACA: 800-986-4636
The interesting, equivocal relationship of CHIROPRACTIC to the integration process is suggested
in data from two recent studies. An article on physician views of CAM in ALTERNATIVE
THERAPIES (Crock RD et al, March 1999, Vol 5, No 2, 61-66) found that while 100% of
respondents thought that osteopathy was beneficial, only 77% thought chiropractic to be
beneficial. The other was from the INTEGRATORs integrative clinic benchmarking survey (FebMarch 1999) in which only 5 of the 14 clinics had chiropractors as part of the clinical team,
despite chiropractics place as the most widely used of CAM professions. This compares with 9
for acupuncture, 7 for naturopathic physicians and 100% (14) for massage).
The CALIFORNIA ASSOCIATION OF NATUROPATHIC PHYSICIANS is gearing up for a
prolonged licensing campaign by creating a board of advisors. The initial advisory group tilts
toward CAM leaders (Dana Ullman, MPH, Efrem Korngold, OMD, INTEGRATOR advisors
ANDREW WEIL, MD, and JOSEPH PIZZORNO, ND) but also includes cardiologists and
surgeons. GEORGE DE VRIES of AMERICAN SPECIALTY HEALTH PLANS is also in the
group, as is INTEGRATOR publisher JOHN WEEKS. The naturopathic physicians, whose formal
education standards are the highest in natural medicine in the United States, are licensed to
practice in 11 states but none yet are among the most populated. (WA and AZ have the highest
population.) The contact is DAVID FIELD, LAC, ND, CANP president. 707-576-7388.
EARLY NOTICE: The AMERICAN ASSOCIATION OF ACUPUNCTURE AND ORIENTAL
MEDICINE is holding a fall conference (November 13-14) in Albuquerque, New Mexico, in
concert with a scientific symposium. The move was part of an agreement with the NATIONAL
ACUPUNCTURE ALLIANCE under which AAOM would begin to hold its annual meeting in the
fall rather than the spring. Both associations will meet in Florida in early May, as reported in the
January INTEGRATOR. 610-266-1433
________________
CONFERENCES
CAMBRIDGE HEALTH RESOURCES (CHR) and the UNIVERSITY OF MASSACHUSETTS
MEDICAL SCHOOL have combined to offer a series of one-day intensives entitled EvidenceBased Botanical Medicine: Effectively and Safely Integrate Complementary and Alternative
Medicine into Clinical Practice. The faculty are Dennis Awang, PhD, FCIC, and Tieraona Low
Dog, MD, AHG. The one day seminars, priced at $999, will be held in Boston (5/17), Los Angeles
(5/21), Dallas (6/4) and Chicago (6/11). CHR is producing these programs through what it has
entitled the CHR CAM INSTITUTE. The education and seminar firm, whose co-founder Julie
Brown was featured in the January/February 199 issue of HEALTHCAREBUSINESS (415-9568242), has sponsored CAM programs in the past. CHR is currently working with LINDA BEDELL
LOGAN and SOLUTIONS IN INTEGRATIVE MEDICINE on a June seminar on business
practices which, if successful, may also be rolled out into a series. 617-630-1330
In an unusual collaboration, TRADITIONAL ACUPUNCTURE INSTITUTE (TAI), co-founded and
headed by INTEGRATOR advisor ROBERT DUGGAN and JOHNS HOPKINS UNIVERSITY
SCHOOL OF MEDICINE held a 3 day conference (March 11-13) in Baltimore. Duggan told the
INTEGRATOR that roughly 200 individual were in attendance for the $400/physician, $240/allied
health professionals event. TAI and Hopkins have had a long-standing relationship, promoted
through the years by Duggan. Among the national names of speakers, besides Duggan, are
Elliott Dacher, MD, Jeanne Achterberg, PhD, and Tracy Gaudet, MD (U OF ARIZONA
PROGRAM IN INTEGRATIVE MEDICINE) and area leaders James Gordon, MD, and Brian
Berman, MD.
_______________
PUBLICATIONS & MEDIA
The fall 1998 Special Report on Complementary Medicine was published by of HEALTHCARE
STRATEGY ALERT. The 16 page document provides some new information on numerous CAM
initiatives including MEMORIAL HERMANN HOSPITAL, CIGNA Arizona, UNIVERSITY OF
PITTSBURGH and DUKE UNIVERSITY. INTEGRATOR advisor PRESTON GEE authors a

column. MELINDA ZIPPIN of SUPERIOR CONSULTANTS played a key role in pulling the
special report together. The report was published by FORUM FOR HEALTHCARE
STRATEGISTS, Evanston, Illinois. 847-669-9482.
New York publisher FAULKNER & GRAY is developing a directory entitled The Guide to
Coverage of Complementary and Alternative Medicine, which it promotes as the definitive source
on health plan and coverage issues. LUCI KOZUMI, an executive editor with F&G is taking the
lead on the project. In conversation with THE INTEGRATOR she noted that F&G is attempting to
support its case with results of some limited industry surveys, but had not, as of mid-January, had
much success in generative responses to the mailed forms. Ad materials state that the document
will include: state-by-state listing of legislative initiatives and coverage mandates; reports from the
NIH CCAM (formerly OAM), web listings, federal proposals, and other resources and sources of
information. 212-822-1266.
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PERSONNEL
KEVIN ERGIL, MSS, LAC, formerly the founding dean and director of the PACIFIC INSTITUTE
OF ORIENTAL MEDICINE has taken a new position as director of research with NEW YORK
COLLEGE FOR WHOLISTIC HEALTH EDUCATION AND RESEARCH. Ergil, a leading
researcher in the field, told THE INTEGRATOR that the move was prompted by the opportunity
to devote more resources to research projects. 516-364-0808 ... MARK BRESNICK, MHA,
longtime director of the BASTYR UNIVERSITY teaching facility, is planning to leave Bastyr this
spring and is exploring employment opportunities in the emerging CAM industry (206-834-4104)
...
End
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Report #2 on Landmark Healthcare Report: #2

Business Developments (AltLink-/CitX, N-CAM/AWHN, Health Canada)
Conferences (ACHE, Employee Benefits)
CAM Professions (Med School Education, AAOM/ALLIANCE, Estimated Revenue)
THE INTEGRATOR
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1
LANDMARK II, TAKE 2
A more thorough look at the entire LANDMARK HMO REPORT II has netted an array of
reflections about the real meaning and value of this studys findings. These, developed for the
April INTEGRATOR, are appended to the bottom of this NEWSFILE.
2
BUSINESS DEVELOPMENTS AND MISCELLANEOUS
ALTERNATIVE LINK & CITX IN WEB DEAL

On March 15, ALTERNATIVE LINK, the developer of a patented coding and claims processing
system for CAM services, and CITX CORPORATION, of Quakerstown, PA, announced the
launch of AmedNet (www.amednet.com) which they describe as an Internet Portal and
healthcare network. CitX describes itself as a privately held, leading high-tech company that
primarily develops and markets B2B Electronic Commerce solutions, Community-Centric Portals,
and Network-Centric (Web-Hosted) software applications. AmedNet will focus on providing
information, resources, on-line services, and products to diverse CAM practitioners. The portal
will have a free consumer Health and Wellness entrance as well a practitioners entrance
($9.95/month) where they may be equipped with resources to make their practices more
efficient, their communications more effective, and their lifestyle more enjoyable, according to the
PR New release. The latter are to include on-line practice management services, such as
insurance eligibility/verification, formality list, relative value studies, medical claims coding and
processing, and integrated Web-based EDI / XML enabled e-commerce services. RICHARD
SCHWARTZ, national sales director for CitX states that CitX, Alternative Link and other partners
are committed to have the AmedNet Portal become the most utilitarian and widely used brand in
the Alternative Medicine industry, as well as the entire market of interactive healthcare." CitX,
and Alternative Link, headed up by MELINNA GIANNINI, are in the process of forming an
advisory committee. CitX Corporation at 215-538-3535. For Alternative Link: 505-527-0636
N-CAM AND AWHN CONTRACT
ELIZABETH MANZOLILLO, president of N-CAM, the emerging national network of CAM
networks, informed THE INTEGRATOR that it has inked a deal with AMERICAN
WHOLEHEALTH NETWORKS (AWHN) on March 19 under which AWHN with utilize N-CAM for
their national network clients. Some N-CAM networks must re-credential their providers to
participate. AWHN had earlier inked a deal with national network COMPREHENSIVE HEALTH
GROUP, of Atlanta, Georgia, on its chiropractic network. CHG in turn had an arrangement with
N-CAM for N-CAMs broader CAM services. Manzolillo notes that AWHN is expected to bring
4,000,000-5,000,000 lives into the affinity product soon. N-CAM has also recently signed deals
with CARE ENTRE -- which has originally planned to work with FAMILY HEALTH AMERICA
(SEE 1/99 INTEGRATOR), UNICARE, FREEDOM HEALTH AND WELLNESS and WELLNESS
PLUS, all of which are affinity or discount card plans.
RE THE LANDMARK HEALTHCARE SENIOR GUIDELINES
Last NewsFile (#7) reported four short guidelines Marla Orth had mentioned LANDMARK
HEALTHCARE had developed regarding CAM for seniors. An I/H subscriber who is a traditional
Chinese medicine leader responded strongly that a three guidelines were over-protective and did
not adequately reflect the abilities of a skilled, well-trained practitioner of TCM. When notified of
these comments, Orth noted that the comments had been made in the context of a reporters
questions on senior care, not on guidelines. She expressed a wish that anything reported in the
INTEGRATOR on guidelines be developed with DAVID WELLS, MD, the firms medical director
for CAM. THE INTEGRATOR will pursue the later story. Meantime, please do not treat the
guidelines as such.
HEALTH CANADA COMMISSIONS INTEGRATION REPORT
The TZU-CHI INSTITUTE OF COMPLEMENTARY AND ALTERNATIVE MEDICINE in
Vancouver, BC, contacted THE INTEGRATOR in mid-March as part of a research project
commissioned by Canada s national health agency, HEALTH CANADA, which is looking at the
state of CAM integration in four other nations (US, China, Australia and the United Kingdom).
The lead researcher is BETHANY BECKER. THE INTEGRATOR was among the leading sources
asked to supply information on the US environment. A solid draft of the report, entitled
Integrated Health Care in an International Context: An Overview of Complementary and
Alternative Health Practices and Therapies in Health Delivery Systems was to be completed by
March 31. The Tzu-Chi Institute was founded in 1997 through a widely-reported $10-million
endowment. 604-875-4769
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2
CONFERENCES
TIBER GROUP REPORTS BIG ACHE CAM INTEREST

KAREN HOHENSTEIN and LISA ROLFE of THE TIBER GROUP, a Chicago-based health care
consulting group presented a session on CAM integration at an early March meeting of the
AMERICAN COLLEGE OF HEALTHCARE EXECUTIVES (ACHE). The sessions reportedly drew
standing-room only crowd of 150-175 in each of two sessions, for a total of some 300
participants. The presentation materials, which provide a useful introductory approach to
integration considerations, are to be posted on the ACHE website, according to Hohenstein.
Contacted by THE INTEGRATOR, Hohenstein noted that one of the firms clients in integration is
NORTHWESTERN MEMORIAL PHYSICIAN GROUP. The facility, which offers acupuncture,
herbal medicine, massage, chiropractic and psychotherapy, opened its doors in the winter of
1998. The build out was priced at $300,000. First year volume exceeded projections and the
center of hub, as Hohenstein calls it, is currently tripling its size after starting small to build
knowledge. 312-609-9907
EMPLOYEE BENEFITS CAM PRESENTATION
The 12th annual BENEFITS MANAGEMENT FORUM AND EXPO produced by EMPLOYEE
BENEFITS NEWS scheduled for October 10-13 at the Opryland Hotel includes a single
presentation on CAM: Alternative Medicine: What is it, How to Manage it, and How it Can Save
You Money. The presentation is billed as a corporate story in which this employer has steered
over 50 difficult to diagnose employees to alternative medicine providers and experienced
dramatic results. The presenter is DOUGLAS YOUNKER a director of human resources with
ICON HEALTH AND FITNESS in Logan, Utah.
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CAM PROFESSIONS
ACUPUNCTURIST COOPERATION
Leaders of the AMERICAN ASSOCIATION OF ORIENTAL MEDICINE (AAOM) and the
NATIONAL ACUPUNCTURIST AND ORIENTAL MEDICINE ALLIANCE made positive strides
toward cooperation at a January 16 meeting in Washington, DC. The national energy of the
acupuncture profession has been split between the two groups, a 501 (c)6 professional
organization and a 501(c)(4) organization, respectively, each of which was an operating budget at
or about just $200,000 (see February-March issue), for most of this decade. A statement in the
Alliances Spring Forum, which was partially crafted by AAOM president ROBBEE FIAN, LAC,
acknowledges a difference in vision between the two groups, which is complementary and
reinforcing rather than competitive. The AAOM represents those who master all aspects of
traditional Chinese medicine and desire to practice as primary care physicians, while the
Alliance also supports other practitioners of AOM to practice according to their tradition, scope of
practice and education, as well as at a level appropriate to their training. The Alliance also
views itself as representing chemical dependency acupuncturists, Oriental bodywork therapists
and practitioners of Chinese herbology. A separate statement by JAMES BLAIR, LAC, Alliance
president, notes his organizations desire to engage a dialog regarding appropriate training of
MDs who wish to practice acupuncture with organizations like the AMERICAN ACADEMY OF
MEDICAL ACUPUNCTURE: That is what the Alliance is all about -- building bridges based on
competency. The two organizations agreed in principle to form a joint legislative committee to
explore cooperation on legislative agendas. AAOM:
; Alliance:
NBJ ESTIMATES TOTAL SERVICES REVENUES IN CAM PROFESSIONS
The NUTRITION BUSINESS JOURNAL (NBJ) (see MEDIA, below) recently (Vol. IV, No. 1,
January 1999) estimated total annual service revenues represented by the major CAM
professions or therapies. These are noted in table X. The estimates of total numbers of
practitioners per profession and average annual income on which the calculations are based may
overstate the economic strength of individual practices and of the professions they represent,
according to INTEGRATOR estimates. So while the data may be best viewed as high-side
calculations, they are presented as a rough look at the emerging CAM service sector.
Profession
Chiropractic
Homeopathy
Massage Therapy
Naturopathy
Osteopathy
TCM/Acupuncture
Est. Annual Service

Revenues
In Millions ($1,000,000)
$8,000
$560
$6,900
$460
$10,000
$3,900
Source: Estimates in Nutrition Business Journal, January 1999.
REGARDING THE ACTUAL STATUS OF CAM IN THE MEDICAL SCHOOLS

A recent exploration by THE INTEGRATOR of the CAM educational programs in US medical
schools strongly supported a comment made by ANDREW WEIL, MD, at this years CAM
conference sponsored by the Harvard University. He noted that most are electives, and often just
an hour or two at best. An informal INTEGRATOR telephone survey, as part of a marketing effort,
with many of the educational leaders of the programs listed in the MARY ANN LIEBERT journal
(The Journal of Alternative and Complementary Medicine, Vol. 4, No. 3, 1998, 325-335).
underlined this. Many instructors were found to be community providers who are not part of the
medical school faculty. Little internal budget or support frequently exists for CAM. While the
movement to include CAM as electives is a beginning, the programs appear to be best

understood -- like many CAM benefits of insurers -- as effectively outsourced. The current
programs cannot be expected to imply that internal competency in CAM is building inside the
institution. An exception is Weils PROGRAM IN INTEGRATIVE MEDICINE at the UNIVERSITY
OF ARIZONA SCHOOL OF MEDICINE. An April 1999 Special Issue of Natural Health
magazine features Weils fellowship program (see May 1998 INTEGRATOR ) and provides an in
depth look at the first group of fellows. For single copies on the Natural Health issue ($5): 800611-0758
____________________
MEDIA
MEDICAL ECONOMICS: RESOURCES
How to Get up to Speed on Integrative Medicine is a useful listing of resources on CAM
integration in MEDICAL ECONOMICS (2/22/99) developed by DEBORAH GRANDINETTI, a
senior associate editor who is the publications lead on CAM issues. The five page articles
describes numerous newsletters, tapes, books and conferences. Most -- including this
publication -- have been previously described in THE INTEGRATOR. The article is useful
overview or handout to interested physicians and administrators. 201-358-7200
NUTRITION BUSINESS JOURNAL: 17 PAGE FEATURE
The January 1999 issue of the NUTRITION BUSINESS JOURNAL (Strategic Information for
Decision Makers in the Nutrition Industry), widely regarded as the best source of data on the
burgeoning nutraceutical industry, has a 17 page cover feature on alternative medicine
integration. This is the second annual NBJ issue to focus on alternative medicine. While much of
the material will be familiar to INTEGRATOR readers -- publisher-editor John Weeks and THE
INTEGRATOR are widely cited resources -- the report includes much additional useful
information. BILL FAIL of the free-standing HAELTH complementary clinic in New York City is
interviewed on that clinics positioning to position ourselves as the physicians aid. Among
those interviewed for the piece include ROBERT MAYO, president of CANCER TREATMENT
CENTERS OF AMERICA, ALAN TRACHTENBERG, MD, WALKER MCCUNE of
INTEGRIHEALTH, GEORGE DEVRIES of AMERICAN SPECIALTY HEALTH PLANS, MELINNA
GIANNINI of ALTERNATIVE LINK, SANDI CUTLER of BASTYR UNIVERSITY, MICHAEL LEVIN
of TYLER ENCAPSULTATIONS and INTEGRATOR advisors LINDA BEDELL LOGAN OF
SOLUTIONS IN INTEGRATIVE MEDICINE and MORT ROSENTHAL OF WELLSPACE. NBJs
estimates of gross revenues associate with the combined practices of the members of the distinct
CAM professions are included in CAM Professions section or this INTEGRATOR. Single issue
price: $75. 619-295-7685
HEALTHCARE STRATEGY ALERT
The fall 1998 Special Report on Complementary Medicine was published by of HEALTHCARE
STRATEGY ALERT. The 16 page document provides some new information on numerous CAM
initiatives including MEMORIAL HERMANN HOSPITAL, CIGNA ARIZONA, UNIVERSITY OF
PITTSBURG and DUKE UNIVERSITY. INTEGRATOR advisor PRESTON GEE authors a column
on developing consumer interest. MELINDA ZIPPIN a CAM leader with SUPERIOR
CONSULTANTS played a key role in pulling the special report together. The report was published
by FORUM FOR HEALTHCARE STRATEGISTS, Evanston, Illinois. For the Forum or a copy of
the issue: 847-669-9482.
_________________
*****
LANDMARK II, TAKE 2
Landmark Healthcare on HMO Coverage of Alternatives: Report #2

HMO interest in complementary and alternative medicine (CAM) appears to be growing
significantly, according to a new report released March 10 by Landmark Healthcare. Marla
Orth, Landmarks CEO, told THE INTEGRATOR that among the chief findings were:
Industry future With nearly 70% offering some CAM, we have a good indication of where
the industry is going to go.
Regional variation Unlike conventional wisdom, we found no significant regional
differences.
Services offered Chiropractic and acupuncture are the services of greatest importance
(66% and 31% offer, respectively).
HMO motivation? Demand, demand, demand, demand, demand.
This is the third in a series of significant surveys funded by Landmark, a Sacrament--based CAM
services organization and specialty health plan. The first, in 1996, provided a more limited look
of leading HMOs in 16 markets. The second, published in January 1998 and based on phone
interviews in late 1997, offered the first nationwide snapshot of consumer interest in CAM since
David Eisenbergs historic report in the New England Journal of Medicine which was based on
1990 data. (See March 1998 issue.)
The Landmark Report II on HMOs and Alternative Care is based on 30-50 minute interviews with
executives from 114 HMO out of the 449 HMOs which met Landmarks qualifying criteria. Criteria
were: non-specialty HMO with greater than 5,000 lives. Of the executives, 64% were in
marketing and sales. The entire group average 15.5 years in health care and 7.1 with their
current HMO. Landmark contracted the survey to an independent firm, National Market
Measures, Inc.
An important feature of the study is that that an HMO offering CAM includes an HMO which may
merely offer discount or affinity products, Orth told THE INTEGRATOR. She states that HMOs
often offer discount products as an adjunct to other rider or core benefit products. A plan that
may cover chiropractic may, for example, offer massage only as a discounted services, states
Orth. In this case, both chiropractic and massage would be included as offered. The survey did
not specifically differentiate the extent to which the services reaching individual consumers are
covered as paid benefits, or merely discounted. Based on past INTEGRATOR experience, many
of the services, such as yoga, Tai chi, acupressure, homeopathy and reflexology, may be
presumed to be largely affinity-based.
General data and trends
Table 1 offers summary data from the wide-ranging survey. Beyond chiropractic and
acupuncture, present offerings falls off significantly. Massage is next at 11%, followed by
vitamin therapy (6%), relaxation therapy (5%) and an array of a dozen other CAM treatments at
between 1% and 4%. Naturopathy, the other CAM service which may be provided most often by
a distinctly licensed CAM discipline, was covered by 2% of those surveyed. Naturopathic doctors
are only licensed in 11 states, as compared to 29 for massage and 34 for acupuncture.
One important finding is that the offerings by HMOs appear to be increasingly translating into
actual benefits to HMO members. Landmark found a 17% expected rate of increase in the
percent of members who have access to these CAM offerings, to 56% within two-three years.
The present rate is 48%. A third of the HMOs say that 100% of their members will be covered
within 2-3 years. This may suggest that at least some alternative care is included as a core
benefit. The report did not cast light on the breadth of CAM which will be included.
Areas of greatest expected growth are acupuncture, acupressure, massage, vitamin therapy, Tai
Chi and relaxation therapy. Each were somewhat likely or very likely to be offered in 2 to 3
years by over 20% of the responding plans. The very likely component was highest with
acupuncture, at roughly 14% with somewhat likely representing another 22%. Explains Orth:
When the NIH released its consensus document on acupuncture, acupuncture gained validity.
(See December 1997 issue.) For the others, the very likely is a smaller fraction of the positive
response. The importance of demand from purchasers in HMO choices suggests that the health
or the economy and the rate of escalation of core benefit costs may be key determinants of
whether CAM services are added, and, if so, whether as covered benefits or merely as
discounted products.
Whatever the employer or purchaser demands, the perception of these executives is clearly that
consumers will increasingly want CAM. Nearly three-fourths (74%) believe that consumer
demand will be moderate (40%) or strong (34%). Another 27% believe demand will be mild.
None believes there will be no consumer demand.
Reasons for inclusion or for skepticism: Add-on vs replacement
The report offers some intriguing data on motivations for both those who have added CAM and
those holding back. Orth summarizes: Its not a-typical of any industry. There is a subset of
early adopters that believes its reasonable and cost-neutral and there are late adopter who are
saying youve got to prove it.
Table 1 looks at chief motivations. Demand is the core reason for offering these services for over
two thirds (76%), whether such demand is asked by members, employers and groups or if the
interest is expressed legislatively, via mandate. In a separate, open-ended question in which
multiple responses were allowed, 71% of those offering CAM noted market-employer-consumer
demand, 29% state mandates and 29% effectiveness of therapies.
Interestingly, of the executives in HMOs which dont offer CAM, few (8%) expected that the move
civil expression of demand would be the chief factor in their decision-making, but a nearly a third
(32%) thought that legislated intervention would be the core. These late adopters (non-adopters
at this point) to use Orths phrase, emphasized that their decisions to add must principally be
based on evidence that the therapies are clinically effective (29%) or would lower health costs
(24%).
In an open-ended, multiple-responses allowed question, the top four reasons cited by these 38
HMO executives were: lack of demand (45%), no evidence of cost savings (32%), lack of
acceptance by physicians (26%) and no documentation of medical efficacy (26%).
On the core question of whether CAM is an add-on or replacement for other health care costs,
the executives were nearly evenly split. Of the total set, 51% believe that CAM can reduce cost.
This figure represents two subsets, one of which believes CAM reduces costs (21%) and another
that CAM nets out evenly (30%). The remaining 49% believes CAM adds to costs. Overall, 54%
of those offering CAM perceive that these services at least net out positive, compared to just 41%
of executives in HMOs with no offerings. However, evidence of effectiveness (8%) and costeffectiveness (0%) were rarely, if ever, the prime reasons for offering CAM.
______________
Table 2 Single Most Important Factor in Adding CAM
Single Most Important Factor
Plans which
Offer
Dont
CAM
Offer
Members, employers, groups asked

Required by law, mandate
Clinically effective
Differentiate from competitors
Meet competition
Attract members
Lower health costs
Cost of CAM
Reduces cost or nets out evenly
38%
38%
8%
7%
5%
4%
0%
Offer
CAM
54%
8%
32%
29%
0%
3%
5%
24%
Dont
Offer
41%
Source: Landmark Healthcare 1999
Managing CAM and double standards

Another intriguing data set in the report circles around medical management. This data may be
viewed as guidance for all those CAM businesses seeking to partner with HMOs. The study
found that one-half of the HMOs are contracting with external vendors for these services.
Executives were asked whether certain factors were more, or less important, in choosing CAM
services, relative to conventional services. The standout areas were procedures to measure
effectiveness and evidence of clinical efficacy. Nearly 30% of the executives believed each of
these issues to be of greater importance in this arena than in choosing conventional providers.
Qualifications and credentials of providers are also viewed as more important by nearly a fifth of
executives. Overall, quality of care and credentials of providers are the most important factors
in choosing alternative care vendors.
On the other side of the equation, the executives found certain issues of less concern. Included
here are size of the practitioner network (>40%), ease of access to providers (nearly 30%).
Small, start-up network firms may take some solace from a finding that roughly 15% believe that
financial health of the company and strong, experienced management are less important in
this arena than in conventional care.
Factor
Importance
on 1-5 scale
(average)
Quality of care
Credentials of providers
Qualifications of providers
Competitively priced
Easy access
Evidence of clinical efficacy
Evidence of member
satisfaction
Financial health of company
Procedures to measure
effectiveness
Reporting capabilities
Strong, experienced
management
Administrative procedures
Size of practitioner network
1
Importance relative to
choosing conventional
1
providers (approx)
LESS
MORE
4.5
4.3
4.3
4.2
.4.0
3.9
3.9
6%
6%
2%
12%
28%
16%
10%
12%
18%
18%
12%
8%
28%
14%
3.9
3.8
13%
13%
7%
28%
3.8
3.8
16%
14%
12%
5%
3.6
3.5
12%
42%
5%
6%
Based on non-specific bar chart
This data suggest that, to varying extents, double standards do exist in health system judgments
on CAM and alternative medicine, at least as expressed by these executives. The theme was
raised by Marcia Angell, MD, editor of the New England Journal of Medicine in a September 18,
1998, editorial in which she opined that CAM is not being asked to meet as high a standard as
conventional care. However, these findings -- largely as expressed by marketing executives -are equivocal on this point. The standard appears at times to be higher, for instance, in the
greater importance given to evidence of clinical effectiveness. At the same time, market forces -demand, demand, demand as Orth puts it -- are clearly driving HMO decision making more
than evidence of effectiveness or cost effectiveness.
Comment: a next tier of unanswered questions
The Landmark Report II provides the emerging industry with an important first cut of answers to
much needed information in defining the operating environment. But these answers birth their
own, second tier of questions. These fundamentally relate to the difficulty in expressing two
shape-shifting concepts in one data point:
What is coverage -- Is it as a rider, core benefit or merely discount?

What is alternative care -- this can range from a single therapy for a single condition for
defined duration (fee for services Medicares chiropractic for up to 12 visits for acute low-back
pain, for example) to Regence Blue Shield allowing members to choose naturopathic
physicians as PCPs and the Illinois Blues offering a similar plan for chiropractors.
These issues are explored in the Viewpoint (About that Big List of HMOs that Cover CAM).
Some specific questions begged by Landmark II are:
To what extent are these services core benefit, rider or discount? What services are core
benefits?
For what percent of HMOs is a mandate not a factor in CAM coverage? If there is a
mandate, does the HMO offer more than is mandated?
Are the covered services provided by distinctly licensed providers? Or are they covered only
if provided by individuals with conventional medical degrees, such as acupuncture by an
MD/DO or massage by a nurse or physical therapist?
How many of the HMOs which are not externally contracting for networks have created
formal internal networks of credentialed providers?
Are any distinctly licensed CAM providers formally invovled in the HMO disease management
or case management processes? Are any individuals with CAM expertise?
What percent have evaluated, or plan to evaluate, whether the services are an add-on,
replacement or cost-saving? When can we expect reports?
In short, the reports boldest assertion -- that 67% of HMOs offer alternative care -- is an
important marker relative to the polarization and externalization of CAM as recently as the early
1990s. Yet this Landmark II finding may best be understood -- like the finding of CAM
education 64% of the nations medical schools (see CAM Professions, this issue) -- as, in Orths
own terms, as evidence of the direction the industry is going. How far and how fast are not
known.
Yet clearly, from the perspective of the consumers whose use of CAM ranges the entire
spectrum of medical and health promoting reasons, Landmark IIs core assertion is a gross
overstatement. Only a fraction of consumers will find that their CAM use, for the purpose which
they value services, is covered by virtually any HMO, particularly if chiropractic for low back and
discount products are left out of the picture.
End
______________________________
NEWS FILE #9, MARCH 26, 1999

1
2
3
NMHCC Final Notes: Tuesday Evening Reception

Mercer/Foster Higgens Employer-CAM Data
InterStudy on HMO
THE INTEGRATOR
__________________
__________________
NOTE TO I/H SUBSCRIBERS
__________________
1
NHMCC FUNCTION
PRECONFERENCE (Monday, 9:15 AM -- 12:15 PM) Wes Alles, PhD, Stanford, John Astin, PhD,
Stanford, and Marla Orth, CEO, Landmark, each presenting research and survey data.
DEBATE (Monday, 2:45 PM -- 4:14 PM): John Renner, MD, long-time quack buster, and the tagteam of Hassan Rifaat, MD, COO Alignis, and James Dillard, MD, DC, CAC, Medical Director,
Oxford. Sponsored by ALIGNIS.
ALTERNATIVE MEDICINE TRACK (7 sessions, Tuesday-Thursday)) David Eisenberg, MD, for
the lead-off session. Sponsored by AMERICAN SPECIALTY HEALTH PLANS.
TRACK RECEPTION (Tuesday 6:30 -- 8:00 PM): Reception for all participants in the Alternative
Medicine Track. The reception will be held at the Westin [ROOM #], four blocks from the
convention center, just following regularly scheduled NMHCC events. Organized by THE
INTEGRATOR and underwritten by AMERICAN WHOLEHEALTH NETWORKS
INTEGRATOR INDUSTRY/HEALTH AOVR2 MEETING (Monday Breakfast): The I/H meeting
on Add on Versus Replacement or Reduction, announced in I/H FEEDBACK LOOP #2, has been
scheduled. Roughly 12 I/H leaders have planned to attend this exploration of possible
collaborative strategies on the core question of whether CAM is an add-on, replacement or
reduction to conventional services and costs. Sponsored by THE INTEGRATOR/INDUSTRY
HEALTH program.
Expect reports in future I/H Newsfiles.
________________
MERCER DATA ON EMPLOYER COVERAGE OF CAM
The annual MERCER/FOSTER HIGGINS NATIONAL SURVEY OF EMPLOYER SPONSORED

HEALTH PLANS asked questions about CAM for the first time in the 1998 edition. The survey,
representing practices of over 4181 respondent employers, found that the following types of CAM
care were offered by the percentages of employers noted below. Each type is noted based on
size of the firm.
Key: Ac (acupuncture/acupressure), Bio (biofeedback), DC (Chiro), Hom (Homeopathy), MT (Massage Therapy)
Plan Type
PPO
500+ workers
10-499
Point of Service
500+
10-499
HMO
500+
10-499
Traditional
Indemnity
500+
10-499
Ac
Percentage of Employers Offering

Bio
DC
Hom
MT
19%
10%
8%
4%
65%
56%
8%
8%
9%
10%
15%
14%
8%
9%
59%
44%
7%
11%
9%
8%
9%
11%
5%
6%
45%
41%
4%
10%
6%
9%
17%
10%
65%
5%
8%
14%
8%
53%
7%
10%
Chart source: William Mercer (see below)
Janice Stanger, who heads up CAM exploration for Mercer, said that she feels that the numbers
on homeopathy and biofeedback were not wrong, but skewed upward. She felt that the reasons
may be lack of understanding among the respondent executives about these services. Stanger
felt that the data suggest that larger employers were taking the lead as they are often selfinsured, with more flexibility. Stanger said Mercer intended to keep asking CAM questions in the
annual employer surveys: This data will establish a baseline. Stanger, when contacted by THE
INTEGRATOR, noted that Mercer has been receiving increasing requests from its clients relative
to CAM. Mercer, she said, has decided to develop some intellectual capital in this. (202-3315210)
__________________
INTERSTUDY: MORE DATA ON HMOS AND CAM
The last two NEWSFILES looked at the Landmark Report II data on HMOs and CAM. Another
useful perspective on HMO behavior s provided by THE INTERSTUDY COMPETITIVE EDGE
8.2, PART II: HMO INDUSTRY REPORT. The St. Paul based firm has been a leading source of
information for market driven health care. This is the first year that questions on CAM were
asked. Unlike the Landmark study, InterStudy separated out chiropractic from Complementary
Care (CC). CC, in this study, included two significant categories which are not in the Landmark
study: Weight management (37.7% offer) and Stress management (33.0%). The next highest
findings are for nutrition (29.6% -- there is no distinct vitamin therapy category), acupuncture
(27.4%), biofeedback (24.3%) and massage therapy (13.7%). There were, as in the Mercer study
above, surprisingly high numbers -- and probably skewed upward -- in certain categories:
naturopathy (8.1%), homeopathy (5.5%), yoga (5.6%) and herbal medicines (5.1%). Some
additional interesting findings of this study were:
Question
Services included in standard
Comp.
Care
8.4%
Chiro
57.5%
commercial product
HMOs willing to negotiate selected
services
Negotiation is rider at additional cost
10.1%
37.8%
32.1%
50.5%
HMO contracts with providers individually

HMO contracts with organized network or group
On average, # of CAM provider per 1000
enrollees
63.6%
36.4%
10
Another interest area explored was how HMOs create access to complementary care. The
findings: standard benefit with no increased out of pocket (44.4%), referral network, no coverage
(27.8% -- affinity or discount product), standard benefit with increased out-of-pocket (16.7%) and
special rider on premiums (11.1%). The almost 1/2 which have CAM in a standard benefit
probably reflects the high percentage of weight loss and stress reduction in the definition of
complementary care. In addition, the low percent using a rider may be a function of chiropractic
being in its own category and the few acupuncture, massage or naturopathic medicine riders
which are yet in place.
The report suggested that CAM benefits center on therapies and counseling that may help
control heart disease, hypertension and other cardiovascular diseases as a means to control
costs. The top motivators for offering CAM care were found to be consumer requests (48%), cost
control (36.5%), market competition (36.55), legislative mandates (19%) and provider requests
(17%). Other respondents noted such things as growing evidence of effectiveness and HMOs
corporate wellness philosophy and medical necessity. No quantifiers were provided for these,
The data is based on written responses from a set of 386 HMOs reporting data as of January
1998.
End
INDUSTRY/HEALTH News File #9, March 26, 1999
___________________________
NEWS FILE #10, APRIL 2, 1999
1
2
3
4
ADD-ON VERSUS REPLACEMENT: I/H meeting at NMHCC, brief report

GOVERNMENT ACTION: Montana ND insurance mandate
RESOURCES: Massage licensing, AIS on business of integration
MEDIA: Network piece in Medical Economics, Tyler in Drug Topics
THE INTEGRATOR
__________________
__________________

__________________
1
ADD ON VERSUS REPLACEMENT
I/H MEETING ON ADD-ON VERSUS REPLACEMENT/REDUCTION AT NMHCC

A special NMHCC breakfast gathering on add-on-versus replacement or reduction (AOVRR)
issues, sponsored by THE INTEGRATOR, was held on March 29. Among the 12 attendees were
CEOs of VPs executives with most of the nations major CAM networks. The historic meeting
was the first time representatives of these competitive firms had examined the ways in which
collaborative activity might assist the expansion of the industry and increase the respect for CAM
service in the broader healthcare payment and delivery system. Discussion included mention of
early pilot projects on data exchange and analysis which some networks have commenced with
their significant HMO partners. Ways that providers of affinity services might also participate in
creating data which, while less robust, might be useful, were also explored. The next step is a
follow-up memo from THE INTEGRATOR which sifts the fertile ideas into possible action steps.
The I/H subscribers will then decide about their future participation.
2
GOVERNMENT ACTION
MONTANA IN INSURANCE EQUITY FOR NATUROPATHIC PHYSICIANS

The Montana state legislature has resoundingly passed legislation which will require insurers in
that state to cover those services by naturopathic physicians which are also covered when
provided by other licensed provider types. The bill swept through the legislature with very little
opposition, THE INTEGRATOR has learned, and is presently awaiting signing by the governor,
who is expected to support the measure.
3
RESOURCES
A good overview of the status of massage licensing laws nationwide is in the March/April issue of
MASSAGE MAGAZINE A list of laws in all regulating states describes: 1) regulatory contact; 2)
title/type of credential; 3) required education/written or practical exam; 4) whether NATIONAL
CERTIFICATION EXAMINATION FOR THERAPEUTIC MASSAGE AND BODYWORK is used;
and 5) renewal fees. Another article in the same publication reviews the federal governments
examination of the classification of massage into the array of occupations in the United States.
The core question -- of interest to payers and providers -- is whether massage is viewed as a
personal service, a health care procedure or both. The decision on classification is reflected,
downstream, in the types of information which will be entered in US databanks over the next 10
years. For the past 25 years, the federal government has classified massage as a personal
service. Both articles are by massage politics reporter JACK THOMAS . 800-533-4263
The premier issue of ALTERNATIVE MEDICINE BUSINESS NEWS, published by ATLANTIC
INFORMATION SERVICES and under the editorial direction of ELAINE ZABLOCKI, looks to be a
well-reported source of information focusing on CAM policies of HMOs and employers. Reported
data in Volume 1, Number 1 includes sample benefit structures and PMPM rates in a California
employers acupuncture-chiropractic benefit ($5 co-pay, 40 visit maximum, $5.94 PMPM,
employee only) and the Matthew Thornton rider ($5 co-pay, $500 maximum, $6.30 PMPM; $10
co-pay, $1000 maximum, $7.73 PMPM). 800-521-4323
__________________
3
CONFERENCE & MEDIA
On May 22, the SOCIETY FOR ACUPUNCTURE RESEARCH is partnering with UC IRVINE for
a focused day, with a remarkable international panel of speakers, on the state of acupuncture
research, New Directions in the Scientific Exploration of Acupuncture. Edward Wong, Jr., MD, is
workshop co-chair (949-824-5905) with Richard Hammerschlag, PhD. $115.
Stimulated by a PR NEWSFILE account of THE INTEGRATOR CAM NETWORK EXECUTIVE
SURVEY, a leading national magazine for physicians, MEDICAL ECONOMICS, will run an
article in a future issue on CAM networks. The draft includes interviews with GEORGE
DEVRIES founder of AMERICAN SPECIALTY HEALTHPLANS, ALAN KITTNER with
CONSENSUS HEALTHCARE, LAURA PATTON, MD, clinical director fro alternative medicine at
GROUP HEALTH COOPERATIVE OF PUGET SOUND, a partner with AMERICAN
WHOLEHEALTH NETWORKS, as well as with INTEGRATOR publisher John Weeks. While the
information will not be new to INTEGRATOR readers, its coverage in this media is significant.
The coup by TYLER ENCAPSULATIONS in partnering as the natural products supplier with
AMERINET, a major group purchasing organization for hospitals, physicians and health systems,
was written up in DRUG TOPICS, March 15, 1999, page 59.
End
INDUSTRY/HEALTH News File #10, April 2, 1999
_______________
1
2
3
4
5
6
Sloans Lake CAM Benefit Becomes Core

Sloans Lake Spiritual Care Benefit
Doody Honors Integrative Medicine Communications Commission E
WellCall Targets Hi-Tech
Oxford Hires New CAM Business Manager
Bastyr Event: Designing the Doctor of the Future
THE INTEGRATOR
__________________
__________________
__________________
1
SLOANS LAKE: EXPERIENCE DATA MOVES CAM INTO CORE BENEFIT
The INTEGRATOR has learned that initial experience with a CAM rider has convinced SLOANS
LAKE, Colorados largest HMO, to offer a CAM benefit as part of the core service. (See August
1998 on Sloans Lake.) Robert Faraci, MD, medical director, notes that the decision was made in
part because initial experience suggested that the overall per member per month (PMPM) is
roughly the same for individuals with the rider and those without. He adds, however, that from
the results it doesnt look like over-all costs is diminished with CAM users. He underlines that
data is preliminary. The HMO is partnering with researchers at the University of Colorado Health
Sciences for analysis which moves beyond claims history. The research model includes use of
an SF 12 prior to CAM use and a re-survey 6 months following use. This will be a pilot for a
larger grant.
Faraci is particularly excited with the prospects for learning due to the firms use of the
ALTERNATIVE LINK coding system which captures extensive detail about the nature of the CAM
intervention. Its a terrific system, Faraci volunteers. With CAM as a core benefit, Faraci hopes
the system will have a chance to learn more about the role of CAM: Were both shocked and
disappointed that the alternative medicine benefit is not used more. The HMOs membership has
grown significantly in the last year. Faraci does not attribute the growth to the HMOs CAM
product. He notes that the rider was purchased in 40% of the new business. The original benefit
2
CREDENTIALING PASTORAL COUNSELORS: SLOANS LAKE PIONEERS NEW

PROVIDER NETWORK
In a pioneering move that has drawn national attention in major media, SLOANS LAKE has
introduced a new SPIRITUALITY BENEFIT which is provided by a credentialed network of
pastoral counselors. The credentialing standards are considered proprietary by SLOANS,
according to ROBERT FARACI, MD, medical director. The network characteristics follow:
Size
Region
Included
Fees
Access
Visits
Co-pay
Initiated
HMO lives
Triage
Media
20-25 credentialed providers

Greater Denver for initial network
Protestant ministers, Rabbis, Muslim ministers, Buddhists and others who are
non-denominational.
Base on excepted fee schedule
PCP referral, specialist referral, self-referral
6 maximum
$10
April 1, 1999
43,000
Spiritual Care Coordinator
Unsolicited -- national TV, print, plus diverse industry media
Faraci notes that the team, which worked on the benefit for a year, decided to break the services
into two types: Spiritual Counseling, when a person needs specific counseling over a
presenting life issue; and Spiritual Direction, when a person is trying to get in touch with it. Of
critical importance is the Spiritual Care Coordinator, notes Faraci. The person filling this role for
Sloans Lake is triple-trained in law, nursing and theology. The HMO expects the spiritual care
benefit to be more widely used than the CAM benefit. 800-457-2345
3
IMC PUBLICATION NOMINATED BY DOODYS
The Commission E Monographs, published by INTEGRATIVE MEDICINE COMMUNICATIONS

based in Newton, MA, has been selected by Doody Publishing is one of the top three medical
books of 1998. This is the first time an alternative medicine title has been so-honored. The
Commission E is co-published with Austin-based AMERICAN BOTANICAL COUNCIL. The
selection was culled from the 4,000 book and software tittles sent to Doodys last year by over
300 health sciences publishers. For IMC: 617-641-2300. For Doody: www.doody.com.
4
WELLCALL TARGETS HI-TECH
More on WELLCALL, featured in a recent I/H Newsfile (#6, March 1999): The firms high-tech
clients for which it offers individualized health education, counseling and referral services include
BioRad Laboratories, Chartered Semi-Conductor, Network Associates, Santa Cruz Operations,
Synopsys and Toshiba American Medical Systems. An April 7 release from the firm quotes
Networks benefits manager Linda Greco stating that the hi-tech environment places constant
demands on staff time and creativity to stay ahead of the curve. WellCall offers a convenient
service that will help our employees take better care of themselves. The referrals range from
smoking cessation, to condition-specific programs to diverse CAM providers, which the firm can
spot-credential on an as needed basis. The firm now serves roughly 100,000 individuals.
5
OXFORD NAMES NEW CAM BUSINESS MANAGER
OXFORD HEALTH PLANS has named Karen Muehlberg as the new business manager for
alternative medicine. Muehlberg, who began working on CAM products at Oxford IN 1995 with
the HMOs former manager for alternative medicine, HASSAN RIFAAT, MD (now with ALIGNIS),
told THE INTEGRATOR that she is examining the HMOs options for moving forward. The HMO
was not yet on the record with any statement on its expected direction.
6
BASTYR FUNCTION HIGHLIGHTS PHYSICIAN OF THE FUTURE MODELS
BASTYR UNIVERSITY is hosting a roundtable on Designing the Doctor of the Future at the
INTERNATIONAL CONGRESS ON INTEGRATIVE MEDICINE (Seattle, April 30-May 2). The
panel will bring together TRACY GAUDET, MD, U ARIZONA PROGRAM IN INTEGRATIVE
MEDICINE, JOE PIZZORNO, ND, Bastyr president, JAMES GORDON, MD, GEORGETOWN U
SCHOOL OF MEDICINE, plus SUSAN HAEGER, CITIZENS FOR HEALTH and BETH CLAY,
with the US HOUSE COMMITTEE ON GOVERNMENTAL OVERSIGHT AND REFORM. The
panel will be moderated by INTEGRATOR publisher John Weeks. Questions will then be taken
from selected media. This is the second in Bastyrs Health Care Policy Roundtable Series,
organized for Bastyr by DAVID MATTESON. Bastyr is hosting the implementation track in
integrative medicine at the ICIM. The event will be held on May 1, from 7:30 PM to 9:00 PM.
End
_______________
News File #12, APRIL 16, 1999
1
Business Developments (HealthNotes, Group Health, CommonWell, plus ...)
2
3
Media Shorts
Conference (DIA)
THE INTEGRATOR
(c) Integration Strategies for Natural Healthcare 1999
__________________
__________________
__________________
1
HEALTHNOTES INC.: MAJOR POSITION IN INTERNET CONTENT DELIVERY

HEALTHNOTES, INC. of Portland, Oregon, is successfully taking a huge stake as an information
provider on herbs, vitamins and supplements on both the internet and in the nations drugstores,
supermarkets and natural foods stores, THE INTEGRATOR has learned. CHERYL BOTTGER,
HealthNotes director of marketing and new product development, notes that the firms content
has been licensed to 10 of the nations leading retail and information internet web sites which
are competing to become the Amazon.com of supplement sales. Among those licensing the
content are: DRUGSTORE.COM, HEALTHSHOPPE.COM, VITAMINBUZZ.COM (vitaminshop),
MOTHERNATURE.COM and GNC.COM (General Nutrition Centers). Bottger notes that many of
the firms originally planned to develop content on their own but then chose to license it once they
understood the magnitude of the undertaking. The license fee is $150,000 which, Bottger notes,
is contractually protected; If we lower it for anyone, we have to give them rebates. The content
is updated twice a year, Bottger notes, a time-frame which she says is limited only by the need to
press the CDs. The firm is developing plans for updating the information online. The firms
kiosk-delivered information services are also expanding, with some 6,000 licensed sites
nationally. Bottger notes that BERGEN BRUNSWICK, the nations second largest
pharmaceutical distributor, is promoting the HealthNotes kiosks with clients for which the firm is
assisting in establishing and managing retail sales of supplements. 503-234-4092
COMMONWELL IN SC: PARTNERS HEALTH PLAN
COMMONWELL, the Boston-based CAM services organization, has inked its first significant outof-region contract with South Carolina-based PARTNERS HEALTH PLAN. The HMOs 180,000
members will utilize Commonwells automated, pre-recorded CAM information line, The Natural
Connection. CommonWell is a part of N-CAM, the national network of networks. 617-566-9355
ACCESS HEALTH ALTERNATIVES (HEALTHMAX): CENTRAL FLORIDA
ACCESS HEALTH, the mid-Florida network of chiropractic clinics led by DAN PAVLIK, DC, has
acquired four affiliated chiropractic clinics. The firm has a network of 125 other clinics which,
according to a March 31 Business Wire release, has exclusive contracts with such HMOs as
PruCare, Cigna and Health Options, and is the largest chiropractic group practice in Central
Florida. All of the clinics subscribe to (the HEALTHMAX) system, the firms financial advisor
DAVID DISNER told THE INTEGRATOR. Disner says the publicly traded firm plans to go
national and to build a diversified network: The idea is to expand. The firm links chiropractic
services to sales of nutritional products. Revenues in 1998 totaled $1.6 million. 800-757-2440
BODYGUARD ACCESS CARD: ACU PLUS, FAMILY CHIRO AMERICA
The EDWARD PRICE COMPANY in Daly City, California, has rolled out a new, Spanish
language version of its discount healthcare BodyGuard card. The firms seven networks include
78,000 pharmacies and providers nationwide, according to an April 9 release from the firm. The
networks range from AMERICAN DENTAL NETWORK and PCS (prescription drugs) for
conventional care to CAM networks: ACUPUNCTURE PLUS and FAMILY CHIROPRACTIC
AMERICA. Providers offer card holders 17-25% discounts. The card retails for $69 for an
individual and $99 for a family. An English language version was offered in January of this year.
650-991-4500
CAM INCLUSION BY INSURERS IN IDAHO
CAM integration consultant LEAH KLIGER of THE LAKES GROUP near Seattle, Washington,
recently explored CAM coverage by Idahos leading insurers on behalf of a hospital client in
Moscow, Idaho. Kliger reports to THE INTEGRATOR the following summary from four leading
providers among the 15 plans which the Idaho Department of Insurance informed her are
currently writing group coverage: ANTHEM HEALTH AND LIFE INSURANCE, BLUE CROSS OF
IDAHO, REGENCE BLUE SHIELD OF IDAHO and GROUP HEALTH NORTHWEST. Some
provide managed care type plans. Chiropractic care is provided as a covered benefit, sometimes
with limits per diem and generally with a yearly maximum between $500-$800. Wellness,
Diabetes education and stop smoking are usually covered, according to Kliger. She found that
the states lack of licensing for massage therapists, acupuncturists, or naturopathic physicians to
be problematic for some of the insurers. Both Anthem and the Blue Cross organization noted a
willingness to write coverage for at least some services provided by these CAM provider types if a
self-insured party was interested. Additional premiums would be required. Anthem currently
covers massage, on referral, in some of its plans. Some Anthem plans include some massage if
deemed medically necessary, and with a referral. The Regence spokesperson contacted by
Kliger expressed a more conservative position in which benefits would not expand to cover nonlicensed providers. Group Health Northwest noted that some options for CAM coverage exist for
Idaho residents who work in Washington and for visiting members such as students covered by
Group Health policies. Here, coverage could be shaped by the states every category of
provider mandate. Kliger noted that even in these conditions, approved providers of
acupuncture and naturopathy tended to be in Spokane, with a few approved massage therapists
in parts of northern Idaho. For Kliger: 425-334-5926.
GROUP HEALTH COOPERATIVE: UPDATE
LAURA PATTON, MD, clinical director for alternative medicine for GROUP HEALTH
COOPERATIVE OF PUGET SOUND told THE INTEGRATOR that the HMO is taking some new
steps in the CAM arena. Patton notes that preliminary data on a Group Health study suggests
that massage outperfoms acupuncture for lowback pain, which has stimulated the HMO to
explore better integration of massage into PT (physical therapy). She notes with pleasure that
the firm now has a half-time person with access to our data warehouse who is exploring claimsbased strategies for closing in on information which will shed light on whether CAM is an add-on,
replacement or reduction to other costs. The HMO is also beginning to explore including
botanicals in its for-profit Take Care retail outlets. Some vitamins are already available via
private label, according to CHARLES SALMON of GROUP HEALTH BUSINESSES. The HMOs
CAM benefit, featured in the October 1996 issue of THE INTEGRATOR, is managed through
contracts with AMERICAN WHOLEHEALTH NETWORKS. 206-442-4044.
_________________
MEDIA SHORTS
Stimulated by a March 17 PR NEWSWIRE account of THE INTEGRATOR CAM Network
Executive Survey, MEDICAL ECONOMICS is developing an article on CAM networks. The draft
includes interviews with GEORGE DEVRIES, founder of AMERICAN SPECIALTY HEALTH
PLANS, ALAN KITTNER with CONSENSUS HEALTHCARE, INTEGRATOR advisor LAURA
PATTON, MD (see above) as well as INTEGRATOR data. While the information will not be new
to INTEGRATOR readers, its coverage in this media is significant ... More from Medical
Economics: PATIENT CARE magazine and its associated patientcareonline web site are soon
to feature a CAM Spotlight according to a March 25 release from the New Jersey firm ...
The coup by TYLER ENCAPSULATIONS in partnering as the natural products supplier with
AMERINET, a major group purchasing organization for hospitals, physicians and health systems,
was written up in DRUG TOPICS, March 15, 1999, page 59 ... An article by DANA ULLMAN
(Homeopathic Educational Services, Berkeley, CA) in The Journal of Alternative and
Complementary Therapies entitled Homeopathy and Managed Care: Manageable or
UnManageable? provides a useful overview of this modality which, as BRIAN BERMAN, MD,
has pointed out, has more controlled research in its support but less coverage. The upcoming
MAY 1999 issue of THE INTEGRATOR notes that a surprisingly high percentage of employers
believe they are currently covering it, and 11% of seniors in a CALIFORNIA BLUE SHIELD
Medicare risk product would like to have homeopathy covered (for Ullman: 510-649-0294) ...
The March 1999 issue of CLAIMS magazine includes a feature on CAM in managed care by
INTEGRATOR ADVISOR JERRY MCANDREWS, DC, and LOUIS SPORTELLI, DC (800-5500540), president of NATIONAL CHIROPRACTIC MUTUAL INSURANCE COMPANY. The
authors take a strong line for managed care to reform itself around a new, CAM-friendly care
plan which would no longer be based on the singular silos of costs but instead in a system
which notes that services are not delivered in a vacuum ... The NATIONAL MULTIPLE
SCLEROSIS SOCIETY (212-988-3240) published information on a recent study (569 individuals,
71% response rate) which found that one-third of people with MS had visited an unconventional
therapy practitioner (note: this is not use of CAM, but seeing a practitioner). Those using CAM
tended also to have at least one additional complication and use conventional outpatient services
more frequently. Massage was the top choice of treatment ....
_________________
CONFERENCE
The DRUG INFORMATION ASSOCIATIONs (DIA) 35th Annual Meeting will again have a track
on Emerging and re-Emerging Therapeutics. The 14-session tracks explore the regulatory,
scientific and business issues surrounding the use of botanicals and nutraceuticals in world
medicine and in the United States. Top presenters. June 27-July 1, 1999. Baltimore. $700. 215628-2288
End
______________
1
2
3
4
5
6
North Carolina Blues Link with Consensus for Discount

Physicians Health Services and Landmark in AlternaCare
Holisticos Heads into Bankruptcy
Integrative Clinics Offer Consultancies
WA NDs in Historic Loan Payback Program
White House CAM Commission Update
THE INTEGRATOR
__________________
__________________
__________________
NORTH CAROLINA BLUES AND CONSENSUS IN DISCOUNT PRODUCT
In a major PR display which began on April 20, BLUE CROSS BLUE SHIELD OF NORTH
CAROLINA kicked off an affinity/discount product through a partnership with CONSENSUS
HEALTHCARE. The reports put the discounts as 15-25%. Regional and industry media have
contacted THE INTEGRATOR on the story, looking at whether such products are a trend. CAM
coverage in NC is a challenge, given the lack of any licensed CAM providers beyond
chiropractors. Dr. Robert Harris, CMO for the plan is quoted as saying were proud to give
consumers options with Alt Med Blue. BCBSNC is the states largest insurers, with 1.8 million
members. The PR Newswire release noted that practitioners will be screened by Consensus,
which made a name for itself through a similar product which it has managed for CALIFORNIA
BLUE SHIELD. This is the first significant East Coast business for Consensus. 888-336-2583
______________
PHYSICIANS HEALTH SERVICES/LANDMARK IN ALTERNACARE PRODUCT

PHYSICIANS HEALTH SERVICES and LANDMARK HEALTHCARE have partnered for a CAM
benefit entitled PHS ALTERNACARE: HOLISTIC HEALTH CARE which the HMO is offering to
all its members. Features are:
Covered services: DC, LAc
LAc services: Needles, electroacup., cupping moxibustion
DC services: Exam, manipulation, x-ray, hot packs, electrical stimulation
Discount services: massage, nutritional supplements
Massage: Via director of providers
Supplements: Via Landmarks relationship with Leiner Health Products
Access: Some plans may require referral for some services
Eligibility: All new groups and renewing as of 1/1/99
Benefit levels: May vary based on plan
PMPM, Co-Pay, Basic Benefit Limits: Not yet available.
PHS, which has a total of 1-million members, is a Foundation Health Systems company.
PHS had developed a benefit in 1995-1996, under then medical director Stan Stier, MD.
_______________
HOLISTICOS HEADS INTO BANKRUPTCY
HOLISTICOS, the Georgia-based network of CAM providers (Holisticare) and clinics (EverWell)
has terminated operations and are in bankruptcy proceedings. Sources close to the operation
state that the firm was not able to develop enough business to sustain its ambitious clinical,
network and phone-centered care management strategies. The owners are in discussion with
AMERICAN WHOLEHEALTH NETWORKS (AWHN) on purchase of the network business.
Former president BILL WALLACE was working in the AWHN booth at the April National Managed
Health Care Congress and may take a leadership position with AWHN. ACCESS HEALTH, a
minority owner, has reportedly retained rights to the branch-chain algorithms developed for that
demand management firms nurse lines. MICHAEL ROSS, MD, the former medical director who
had held a similar position with COMMONWELL, is no longer with either firm. Holisticos was one
of the nations pre-eminent venture-backed CAM initiatives (see April, June and July, 1998,
issues, plus CAM Network CEO survey). This failure came despite the firms success in inking a
deal with BLUECROSS BLUESHIELD OF GEORGIA for its affinity product, and to supply product
for the BLUE CROSS OF CALIFORNIA affinity product. More later on this.
______________
INTEGRATIVE CLINICS OFFER CONSULTANCIES TO NEWCOMERS
One outgrowth of the movement to create integrative medicine clinics requests fro information to
the more established clinics from the newcomers. Requests to some have increased to the point
that, rather than giving away information, formal consultancies have been established. The
following is an overview of some of the services and fees. All of the clinics except the King
County Natural Medicine Clinic have been profiled in the INTEGRATIVE CLINIC
BENCHMARKING SURVEY.
Name: East-West Health Centers
Contact: Phil Herre
Phone: 303-694-5757
Services: Business plan, feasibility, turn-around.
Fees: $1000 day

Name: California Pacific Medical Center (CPMC)
(Healing Center) CHECK
Contact: Barbara Marruchi
Phone: 415-923-3131
Services: Format varies based on need. Do some phone consults.
Fees: $275/hr$2000/day
Name: Hennepin County Medical Center (Alternative Medicine Clinic)
Contact: Debra Canfield
Phone: 612-347-6238
Services: Manual materials include QM plan, various policies and procedures, forms, billing
strategies, patient education, background information
Fees: $250 hr
Clinic Name: Community Centers of King County (Natural Medicine Clinic)
Contact: Tom Trompeter, MHA
Phone:
Services: 4-5 hours, meetings with clinical and administrative leaders, packet of information
provided
Fees: $2000/day (free to other community health centers.)
______________
WASHINGTON STATE IN UNIQUE LOAN PAYBACK PROGRAM FOR NDS
The WASHINGTON STATE HEALTH PROFESSIONAL LOAN REPAYMENT AND
SCHOLARSHIP PROGRAM has recently approved its first repayment award to a naturopathic
physician. The recipient, CINDY BREED, ND, is a staff practitioner at the widely-reported KING
COUNTY NATURAL MEDICINE CLINIC, a part of COMMUNITY HEALTH CENTERS OF KING
COUNTY. KATHY MCVAY, program administrator, explained that the inclusion of naturopathic
physicians in the program was based on a 1994 policy of the states HEALTH PERSONNEL
RESOURCES PLAN under which naturopathic physicians were included as primary care
providers. Under the repayment program, Breed and other naturopathic physicians are eligible
for up to $25,000 a year, for three years, of loan payback, if they are serving in a rural or
underserved urban environment. A similar program is available to the states licensed,
European-style, direct-entry midwives. The midwives also have access to scholarships, a
number of which have been granted. BASTYR UNIVERSITY, an educational center which trains
naturopathic physicians and licensed midwives, is heading up an outreach program to help
generate demand for these providers. The program, called Health Shortage Areas: Integrated
Care Options, is headed by Bastyrs associate dean for naturopathic medicine PAMELA
SNIDER, ND. The advisory group to the outreach campaign includes both McVay and RICHARD
LYONS, MD, Regional Health Administrator for US PUBLIC HEALTH SERVICE, Region X. For
McVay: 360-753-7844. For Snider: 425-602-3143.
_____________
WHITE HOUSE CAM COMMISSION
By late April, a delayed WHITE HOUSE COMMISSION on complementary and alternative
medicine was gaining steam. The national commission was funded through a $1-million 1998
appropriation engineered by US Senators TOM HARKIN (D-IA), ARLEN SPECTOR (R-PA) and
TOM DASCHLE (D-SD) is expected to offer the first significant analysis of the variety of ways
public policy may assist or hinder creation of appropriate CAM integration.
End
______________
RIBER
News File #14, May 3, 1999
1
2
3
4
5
CORRECTION plus more, from North Carolina

Consensus/BCBSNC
CommonWell/Partners National Health Plans
ASHP Update
BCBS Massachusetts and Landmark
Conference into (ICIM, Cancer Care, Memorial Hermann)
Publisher Info (IMC, IMA)
THE INTEGRATOR
__________________
____________________
CORRECTION: MORE PROVIDERS THAN CHIROPRACTORS LICENSED IN NORTH
CAROLINA
A correction to the story below on the new BCBSNC affinity product sent out. Wires got crossed
here: North Carolina, which regulates acupuncture and massage (since last December) became
South Carolina, which regulates neither. The BCBSNC story from Newsfile #13 should have read
as follows:
NORTH CAROLINA BLUES AND CONSENSUS IN DISCOUNT PRODUCT
In a major PR display which began on April 20, BLUE CROSS BLUE SHIELD OF NORTH
CAROLINA kicked off an affinity/discount product through a partnership with CONSENSUS
HEALTHCARE. The reports put the discounts as 15-25%. Regional and industry media have
contacted THE INTEGRATOR on the story, looking at whether such products are a trend. Robert
Harris, CMO for the plan, is quoted as saying were proud to give consumers options with Alt
Med Blue. BCBSNC is the states largest insurer, with 1.8 million members. The PR Newswire
release noted that practitioners will be screened by Consensus, which made a name for itself
through a similar product which it has managed for CALIFORNIA BLUE SHIELD. This is the first
significant East Coast business for Consensus. 888-336-2583
HERE ARE TWO FOLLOW-UPS ON NORTH CAROLINA AND CAM

A
CONSENSUS & BCBSNC
THE INTEGRATOR reached BCBSNC director of public relations LYNNE GARRISON after I/H
#14 was mailed. Garrision said of the announcement: Were seeing a great amount of interest.
Its really hit a nerve. She noted that the decision to start the program grew out of the firms own
focus groups. The CAM development is the first announcement in a whole range of the next
generation of products that the firm will unveil in early 2000, states Garrison. As a group these
new products will be typified by: 1) more flexibility for employers; 2) modular in design; and 3)
more flexibility for employees. When asked about any presently covered CAM services, Garrison
stated: We have some but they are very limited and covered only in certain circumstances,
depending on the situation and would require a referral. She looks at this program as a means
of giving 1 million people access to CAM services. (The program is not being offered at this time
to those enrolled in the state and federal employee health programs which are covered by
BCBSNC.) The Consensus program begins August 1. Consensus is currently developing the
network. 919-765-7256 for Garrison. PR for Consensus: Joy Scott, Scott Marketing and Public
Relations: 818-610-0270
B
MORE ON PARTNERS/COMMONWELL
News on the BCBSNC announcement also stimulated some reporters to look at another North
Carolina CAM development -- the PARTNERS NATIONAL HEALTH PLANS OF NORTH
CAROLINA and COMMONWELL partnership through which the HMOs members will utilize
CommonWells automated, pre-recorded CAM information line. STUART VEACH, Partners vice
president, told THE INTEGRATOR that the HMO is excited about the service which they have
advertised to members through pamphlets that give out Commonwells toll free number. Veach
says the firm has 250,000 HMO members, and another 100,000 it serves as a third party
administrator (TPA). When asked about any CAM covered by the firm, Veach responded: We
cover acupuncture on a case-by-case basis. The stress management and that sort of thing is
available on a case by case basis through our behavior health vendor. He adds that they also
sell chiropractic as a separate rider but it can also be made available on a case to case basis.
For Veach: 336-659-2505; for CommonWell: 617-566-9355
NOTE: The comments on present coverage for these two firms exemplify the problems with the
gross data in the Landmark II, InterStudy and even Mercer/Foster-Higgins surveys on CAM
coverage. Each of these plans could have responded yes to a number of CAM services; yet it is
clear from the statements that most, if not all, are but rarely covered. -- John Weeks
2
ASHP UPDATE
As noted in the April INTEGRATOR, AMERICAN SPECIALTY HEALTH PLANS (ASHP) has arrived
at an arrangement with its former PARTNER, AMERICAN CHIROPRACTIC NETWORK (ACN)
under which ASHP can leave its historic six state area of activity and expand nationally. Under
the agreement, ACN will also be allowed to take business inside ASHPs former territory.
Outlines of the firms aggressive expansion plans were laid out for THE INTEGRATOR by CEO and
founder GEORGE DEVRIES and vice president ERIC LEAVER at a breakfast meeting at the
NATIONAL MANAGED HEALTH CARE CONGRESS (NMHCC) in Atlanta, where ASHP
sponsored the alternative medicine track. While details were not disclosed, DeVries stated that
the long-negotiated arrangement included a cash buyout in which ACN was left with a minority
stake but no decision-making authority. The ASHP business plan includes establishing
offices in both Chicago and New York, in order to create regional hubs for business expansion
and management. DeVries expects expansion of its networks and its business to be rapid,
particularly because were already doing business in 36 states through several national
agreements we have been administering since 1992. ASHPS move is being felt in diverse
markets, industry sources have told THE INTEGRATOR.
According to product development VP Leaver, the company is actively engaged across the nation
in discussion with health plans. NMHCC attendees will have been aware of the $80-million, 300+
employee ASHPs national intention. (See CAM Network Executive Survey, January 1999.) A
huge ASHP booth promoted the family of inter-related businesses: American Specialty Health
Plans, American Specialty Health Networks, American Specialty Health and Wellness, The CAM
Conference Resource Center, buyhealthy.com. For instance, the firms new CAM Conferences
affiliate, will expand ASHPs visibility as a sponsor or co-sponsor of significant educational
conferences. Among these will be NMHCC West, scheduled for Los Angeles October 18-20.
The firm has also chosen to sponsor a reception at the CAMBRIDGE HEALTH RESOURCESSOLUTIONS IN INTEGRATIVE MEDICINE workshop in San Francisco June 3-4. 800-848-3555
3
MASSACHUSETTS BLUES LINK WITH LANDMARK FOR AFFINITY PRODUCT
The continuing rush of BLUES plans toward discount affinity CAM products continues with the
May 3 announcement by BLUE CROSS BLUE SHIELD OF MASSACHUSETTS. The firms new
Naturally Healthy Rewards program involves a partnership with Sacramento-based LANDMARK
HEALTHCARE. The product will be delivered through a credentialed, statewide network of
acupuncturists, massage therapists and registered dietitians. The decision to work with these
three categories was based in a BCBSMA survey of is membership in which respondents said
they used massage, acupuncture and nutrition counseling more than other CAM services. [Note:
No mention was made of chiropractic in this release.] BCBSMA is the states largest insurer,
with 1.6 million members, and $64 mullion of earnings from $2 billion in revenues in 1998. A
release from the firm noted that Landmark has 4-million members nationwide. At BCBSMA:
Susan Leahy (617-832-4823), and for Landmark: Jana Saastad (916-569-3326).
4
CONFERENCES
FOLLOW-UP The INTERNATIONAL CONFERENCE ON INTEGRATIVE MEDICINE (ICIM),

held in Seattle April 30-May 2 appears to have been a highly acclaimed but under attended event.
The organizer, BRUCE TAKATA, with BASTYR UNIVERSITY as a content sponsor, put
together an exceptional mix of speakers an panels. Takata hopes to draw 3,000, anticipated at
least 1,000, but only drew 400-500. The professional conference ($345) was paired with a
consumer oriented expo ($8) which may have helped make up for what most anticipate were
significant losses on the professional side. Unlike many commercial CAM conferences which
float on non-paid speakers, ICIM was relatively speaker-friendly. The organizers originally
viewed this as year one in a plan to establish ICIM as a leading ongoing educational player in the
CAM integration movement. integrativemed.com
COMING UP
The MEMORIAL HERMANN HEALTH SYSTEM meeting in Texas (June 17-18)
is reportedly drawing very nicely, according to lead organizer MARY HELEN MOROSKO. The
first major integrative conference in Texas anticipates an attendance in the 500-600 range, based
on early sign-ups. Headliners are INTEGRATOR advisor KENNETH R. PELLETIER, PHD,
LELAND KAISER, JAMES GORDON, MD, and MARY ANN RICHARDSON, DrPH. Memorial
Hermann, an affiliate of Herbert Bensons MIND-BODY MEDICAL INSTITUTE, is an area leader
in CAM integration. DR. RICHARD MATERSON, Hermanns medical VP is heading up the
system initiative. The UNIVERSITY OF TEXAS HEALTH SCIENCES CENTER is a co-sponsor
of the event. [PHONE PHONE PHONE PHONE]
COMING UP COMPREHENSIVE CANCER CARE II, Integrating Complementary and
Alternative Therapies, a major conference co-sponsored by the JAMES GORDON, MDS
CENTER FOR MIND-BODY MEDICINE and the U TEXAS-HOUSTON MEDICAL SCHOOL will
be held June 11-13 in Arlington, VA. The first incarnation was held last year, and was a success
to all accounts. Comprehensive is the operative term. Over 50 presenters and advisors are
involved in the program and its development. $425. Pre-conference workshops ($175) are
held June 9-10. 301-353-1807
5
PUBLICATIONS & PUBLISHERS
The most recent mailing of the NEWSLETTER PUBLISHER ASSOCIATION (NAP)

Opportunities and Services publication includes two personnel ads from INTEGRATIVE
MEDICINE COMMUNICATION (IMC), the nations premiere complementary and alternative
medicine information provider, according to the ad copy. The positions are marketing director
and editor, both of which offer some equity potential. The firm describes its aggressive product
development schedule which requires extensive experience in successfully creating and
implementing new product launch strategies for a diverse product line that includes newsletter,
loose leaf products, books and electronic information resources on the Web. IMCs publications
include the Integrative Medicine Consult and the Commission E. HR@onemedicine.com
MITCHELL STARGROVE, founder of INTEGRATIVE MEDICAL ARTS GROUP, publisher of the
IBIS interactive CAM software package, recently told THE INTEGRATOR that his advisory board
development has drawn a wide ranging group of top integrative medical practitioners nationally.
Stargrove anticipates announcing the group within the next two weeks. 503-526-1972
End
INDUSTRY/HEALTH News File #14, May 3, 1999
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Profile: Memorial Hermann, plus Houston CAM Conference

Business Developments (Triad/ECI, Kaiser Hawaii/ASHP)
Providers (Mass Alliance, NIH/AANP)
Comment: Marcia Angell -- Polarizing Force
THE INTEGRATOR
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MEMORIAL HERMANN HEALTHCARE SYSTEM CLARIFIES CAM STRATEGY
The most significant CAM conference ever to be held in the South will takes place on June 17-18
when between 500-600 are expected to gather in Houston for a conference spearheaded by
MEMORIAL HERMANN HEALTHCARE SYSTEM. The conference is part of a multi-faceted
CAM strategy at Memorial, a 12 hospital system with numerous other facilities (rehab, home
healthcare, assisted living, etc.) and headed by RICHARD MATERSON, MD, and managed in
part by MARY HELEN MOROSKO. Materson is a former NIH researcher who grew supportive
toward CAM through observing successes of acupuncture with pain, trigger point for myofascial
pain and a casual watching of the developing nutraceutical industry. One aspect of the initiative
is education via conferences, facilitating communications between consumers and physicians,
website delivered information (we have a lot of hits from both professional and lay users), and
local education through various healing healthcare fairs. Memorial now has an advisory group on
CAM at each hospital, according to Materson. Another component is expansion of the mindbody programs developed in affiliation with HERBERT BENSONs MIND-BODY MEDICAL
INSTITUTE at HARVARD. Memorial, which was an early affiliate, has found the programs good
for the patients, a clinical success but not a business success. They will establish a second
branch to deliver services at the Institute of Religion which he says is at the epicenter of the
medical center. In addition, a new wellness center, scheduled to open October 1, will include
massage, biofeedback, mind-body, acupuncture and aromatherapy. Chiropractic is not included
because many good chiropractors are available nearby, notes Materson, and Memorial will
make referrals. A final unusual component is that, through a memorandum of understanding with
the GREATER HOUSTON YMCA, Memorial will help roll out mind-body, sports-medicine and
various alternatives into the YMCAs onsite service delivery. For Memorial:
CONFERENCE: Modern Science and Ancient Wisdom: A Complementary and Alternative
Medicine Conference, in Houston, Texas. Sponsors are Memorial, UNIVERSITY OF TEXASHOUSTON MEDICAL SCHOOL and UNIVERSITY OF TEXAS-HOUSTON HEALTH SCIENCES
CENTER. The national headliners for the event include JAMES GORDON, MD, LELAND
KAISER, PHD, INTEGRATOR advisor KENNETH PELLETIER, PHD, and NIH CAM center leader
MARY ANN RICHARDSON, DR.PH.. Physicians; $295; others $175. 713-500-5249. Online
registration: www.mhhs.org.
2
TRIAD HEALTHCARE PARTNERS WITH ELDORADO FOR SOFTWARE

TRIAD HEALTHCARE, INC. and ELDORADO COMPUTING, INC. (ECI) announced on May 3
that Triad selected ECI as its software supplier. The selection is especially important as Triad, a
member of the NCMIC GROUP, puts significant stake in its data management as a part of the its
business strategy. The firm is included in the CAM Network Executive Survey. The release notes
that Triad believes the technology will help immeasurably as Triad has made application for
URAC accreditation, according the firms COO, MARINO PASSERO. The release also states
that the network serves the specialized chiropractic needs of over 2 million members. For Triad:
800-550-0540; for ECI (602-604-3100).
ASHP LANDS KAISER-HAWAII PARTNERSHIP FOR CAM DISCOUNT/RIDER
KAISER PERMANENTE HAWAII has announced a letter of intent with San Diego-based
AMERICAN SPECIALTY HEALTH PLANS (ASHP) through which the firms 211,000 members
can receive various services and products. Characteristics are of the benefit noted In the May 4
release from Kaiser are listed below. Kaisers product development director CAROL TAKETA
states: Our hope is that this program will give our members guidance in selecting alternative
care providers who have passed a standardized credentialing process, and give them a discount
on the cost of services.
Focus of product: Discounted access

Provider types: Chiropractors, acupuncturists, massage therapists
Products: Herbal and vitamin therapies (via certain Kaiser pharmacies or via ASHPs toll-free
and internet service buyhealthy.com)
Referral: Self
Network: 100 providers expected (Oahu, Maui, Hawaii, Kauai)
Rider: Available for a single discipline, or a combination; cost not set
At risk: Not stated
Co-payment on Rider Products: Likely be $10
This is the first announcement of a significant CAM venture by a large Hawaii plan. ASHP is
developing its provider network through an arrangement with PRACTICARE HAWAII. The states
leader, the HMSA Blues plan, has stated that a product is in development but none is yet
announced. ASHP and LANDMARK HEALTHCARE have been known to be competing for that
business. On unusual characteristic: The states licensed naturopathic physicians are not
included in the network. The are included in virtually all CAM insurance initiatives in the 11 states
in which they are licensed. They are past of KAISERS NORTHWEST PERMANENTE venture
with COMPLEMENTARy HEALTHCARE PLANS. For Kaiser: 808-983-4983; for ASHP: Monica
Wiley (619-686-5990)
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PROVIDERS
MASSACHUSETTS: THE INTEGRATIVE MEDICINE ALLIANCE FORMED

An alliance of individuals involved with integrative medicine initiatives has formed in the greater
Boston area. The draft mission statement reads: To promote the vision, development an
practice of integrative medicine through bridge-building among the healing professions; through
research, development and education; and through ongoing integrative medical practice. Among
the leading organizers are KARL BERGER, a body worker with BETH-ISRAEL DEACONESS and
HARVARD VANGUARD, MERYL BRALOWER, an advisor to WELLSPACE and ROBB
SCHOLTEN, a key associate of DAVID EISENBERG, MD, at HARVARDs CAM center. Top six
teams for anticipated activity are: Bridge-Building, Research, Policy Development, Education,
Living the Vision and Organizational Development. For Berger; 617-625-0903; Bralower: 617236-1227
NIH AND AANP IN HISTORIC CO-SPONSORSHIP
In yet another sign of growing CAM acceptance, the Seattle-based AMERICAN ASSOCIATION
OF NATUROPATHIC PHYSICIANS is co-sponsoring, with the NATIONAL INSTITUTES OF
HEALTH, a three day meeting entitled Complementary and Alternative Medicine in Chronic Liver
Disease. Three naturopathic physicians (ANNA MCINTOSH, PHD, ND (NATIONAL COLLEGE
OF NATUROPATHIC MEDICINE), EDWARD ALSTADT, RPH, ND (ECLECTIC INSTITUTE) and
ANDREW RUBMAN, ND (UNIVERSITY OF BRIDGEPORT) are among the 25+ headliner
speakers representing government, research, botanical and pharmaceutical interests (DAVID
EISENBERG, MD, INTEGRATOR ADVISOR TED KAPTCHUK, OMD, WAYNE JONAS, MD,
FREDDIE HOFFMAN, SRINI SRINIVASAN, etc.). Contact: AANP (206-298-0126) or Tracy
Morgan, Conference manager (301-493-9674, morgan@computercraft-usa.com).
POLARIZING FORCE: NEJM EDITOR MARCIA ANGELL
The following is offered to I/H readers as a heads-up: Amidst the efforts of many to diminish
polarization between CAM and the mainstream, the voice of MARCIA ANGELL, MD, FACP,
editor of the NEW ENGLAND JOURNAL OF MEDICINE is increasingly staking out a polarizing
ground. Angell first registered her views in a widely noted September 18 NEJM editorial when
the journal presented a series of antagonistic articles. She has since keynoted the annual
conference of the SCIENTIFIC REVIEW OF ALTERNATIVE MEDICINE, a journal developed by
long-time CAM antagonists. Angell was also a featured speaker at the Future Makers Lecture
Series sponsored by Atlantas EMORY UNIVERSITY, on March 10. Among her comments:
What alternative medicine is, is that its not scientific. One uniting principle is a common
ideology which disparages scientific medicine. Angell repeated disparages science more than
once. Her definition: Alternative medicine is a collection of disparate theories and practices for
which there is little or no scientific evidence, characterized by an ideology that celebrates natural
traditions, particularly exotic traditions, and disparages science. She states that one tenet is
that all systems of healing from all continents and all times, except of course 20th century
American (traditions) are equally deserving of serious attention. In utter disregard for the
accumulated evidence from many sources, Angell characterizes CAM patients as worried well
having trivial illness. There are of course some people who meet her description. They are
neither the high percent of consumers who sue them for specific conditions or the provides who
are eager to partner with the NIH (such as the national naturopathic physician organization (se
above) or national acupuncture associations which supported the 1997 Consensus Conference
on Acupuncture). Very unfortunate that reason appears absent, on this topic, at the head of the
NEJM.
End
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Business Developments (IMA, Prism Network, Health Arts/Colville)

Conferences (AAHP, Canyon Ranch/Weil, ICIM, plus ...)
CAM Professions: AAOM gains, NDs Hit in Colorado
THE INTEGRATOR
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INTEGRATIVE MEDICAL ARTS ANNOUNCES TOP FLIGHT MEDICAL ADVISORY BOARD
Beaverton, Oregon-based INTEGRATIVE MEDICAL ARTS, (IMA) publishers of IBIS, the

Integrative
Information System, announced on May 3 that a large and diverse panel of CAM
leaders have chosen to join the firms medical advisory board. Among the 38 members are
INTEGRATOR advisors SAM BENJAMIN, MD, and TED KAPTCHUK, OMD, ELLIOT GREENE,
MA, and CHRIS FOLEY, MD. Other well-known professionals include LELAND KAISER, PHD,
nutritional medicine pioneer JONATHAN WRIGHT, MD, executive director of the AMERICAN
ASSOCIATION OF ORIENTAL MEDICINE DAVID MOLONY, LAc, HARRIET BEINFIELD, LAc,
former head of the NIH OAM JOSEPH JACOBS, MD, CANDACE PERT, PHD, DAVID S. RILEY,
MD, as well as leading naturopathic and acupuncture educators. The chair of the board is IMA
founder MITCHELL STARGROVE, ND, LAc, whose work to develop IBIS dates back to the mid
1980s. The firm, which is developing its product lines and its infrastructure, has an infusion of
investment capital last year which allowed the firm to hire a national VP for sales JON DARSEE.
Darsee brought with him years of working in mainstream medical sales. The firm is re-positioning
the IBIS product in the marketplace through a substantial lowering of its former pricetag of $695.
IMA also manages a number of websites. integrativemedicalarts.com 503-526-1972
10,000 SQ FT INTEGRATIVE CLINIC MOVES INTO THE BLACK
LON HATFIELD, MD, founder of the HEALTH ARTS CENTER in Colville, Washington, has
shared with THE INTEGRATOR that his 10,000 square foot integrative clinic has broken even in
its 12 month out of the gate. The clinic, in the Northeast corner of the state, has 13 practitioners,
including MD, DO, ND, TCM, NP, MSW, Massage, yoga, etc. The service mix is just 20%
conventional medical services yet only 30% of the clinics revenues are self-pay. Monthly
operating expenses run $85,000 a month. Traditional indemnity is 65% and HMO 5%. Hatfield is
a long-time medical leader in the region, having headed up a 35 practitioner practice in the rural
community. Hatfields clinic is participating in the INTEGRATIVE CLINIC BENCHMARKING
SURVEY. 509-685-2300
NEW YORKS PRISM NETWORK EXPANDS CAM OFFERINGS
PRISM NETWORK, an upstate New York CAM network which formerly offered mainly
chiropractic services is moving further into the CAM field, CEO ARTHUR WINGERTER has
informed THE INTEGRATOR. The firm claims 400,000 capitated lives and 1 million total lives for
chiropractic care via contracts which include a number of BLUE-BLUE plans in Western, Central
and Northeast New York. Wingerter said the firm is moving downstate, through contracts with
MAGNACARE, which handles workers compensation business for CIGNA and has a significant
amount of TPA work. The firms recent acupuncture activity is headed up by TOM SMITH, an
MD-acupuncturist. The firms average number of visits for chiropractic for a given complaint
tends to run at the 7-8 level. Wingerter noted that the firms surveys of chiropractic users have
not found that a significant percentage of users would switch to another plan merely because that
plan offered additional CAM services. 716-681-1112
2
CONFERENCES
COMING UP: The annual Institute of the AMERICAN ASSOCIATION OF HEALTH PLANS
(AAHP) will include at least one CAM breakout. This has been the pattern the past two years at
the most significant annual gathering of the managed care industry association. For the 1999
meeting, AAHP planners chose to link independently submitted proposals by AMERICAN
SPECIALTY HEALTH PLANS and by INTEGRATOR publisher JOHN WEEKS for an hour-long
session to be held Tuesday afternoon of the June 20-23 meeting.
COMING UP: The experiential gatherings led by ANDREW WEIL, MD, at the CANYON RANCH
spa continue to draw significant interest. A June Integrative Medicine Week had a sign up of
some 140 by mid May, according to sources at Canyon Ranch.
RE: CONFERENCE TURNOUT: Best guesses on the losses suffered by the backers of the
INTERNATIONAL CONGRESS ON INTEGRATIVE MEDICINE held in Seattle April 30-May 2 put
them at well over $250,000. The question asked by one close observer is whether the category
of conferences -- integrative medicine -- works. This is the fourth in a series (Casa Colina
(Los Angeles, 3/98), Liebert (Virginia, 10/98), WorldMed (Los Angeles, 11/98) which appear to
have taken significant hits ... Some smaller specialty gatherings dont appear to be faring much
better. Turn-out for the integration-focused day of presentations co-sponsored by AMERICAN
SPECIALTY HEALTH PLANS and USC on May 1 ran on the low side, at about 30 non-speakers,
according to an attendee ... The third annual day-long conference on integrative medicine
sponsored by the Twin Cities-based HEALTHEAST health system and scheduled for April 24 was
canceled due to a low attendance. Sponsors attributed turnout problems to two significant and
well-attended CAM events in the previous two months sponsored by market competitors ...
CAM PROFESSIONS
AAOM GAINS MUSCLE

The meet of the AMERICAN ASSOCIATION OF ORIENTAL MEDICINE appears to have marked
a significant coming forward for the AAOM and the NATIONAL ACUPUNCTURE ALLIANCE.
Professional advancement for licensed acupuncturists at the national level has been marred over
the past decade by a split between the two organizations. At the shared-location, April 30-May 3,
meetings of both organizations in Florida, the AAOM drew 300 participants, some 3 times the
Alliance and significantly higher than past shows. The development could have significance for
the role of the licensed acupuncturists in US healthcare. AAOM promotes acupuncturists as
practitioners of a broader-than-needles scope of practice and a entry/primary care role in the
health system. Time will tell if the AAOM will be able to begin to truly tap the 7500-10,000
licensed acupuncturists as potential members. Figures on membership given to THE
INTEGRATOR (Feb-Mar 1999, page 13) showed total members of the AAOM at a rather anemic
675, or 9% of an N of 7500. (The AMA, for reference, tends to run 35%-45% members.)
NATUROPATHIC PHYSICIANS OPPOSED BY MAIL-ORDER AND MLM IN COLORADO:
The Colorado legislature, focus of a significant 1998-1999 licensing push by the COLORADO
AMERICAN ASSOCIATION OF NATUROPATHIC PHYSICIANS, has voted down the initiative for
this year. The legislative drama is significant for the profession, led nationally by the AMERICAN
ASSOCIATION OF NATRUOPATHIC PHYSICIANS (AANP), which has made expansion of
licensing from its present base of 11 states a governmental affairs priority. The AANP-backed
standards are those which are used by US health plans, CAM provider networks and health
systems for credentialing of naturopathic physicians. The Colorado bill opposed by interests
which link mail-based, certificate granting businesses, in particular Alabamas CLAYTON
SCHOOL, with various MULTI-LEVEL MARKETERS (MLM). AANP-backed licensing efforts are
being attacked by the same elsewhere. The opposition of the correspondence school businesses
is obvious. Individuals with Doctor of Naturopathy certificates from Clayton and other such
businesses can hang up their shingles as naturopathic doctors in most of the 39 states which
have no licensing statutes for naturopathic practice. But following passage of licensing and the
standards on which licenses are based, these individuals can no longer call themselves
naturopaths, naturopathic doctors or naturopathic physicians under AANP-backed legislation.
The reasons for the MLM opposition are not so clear. These sales people apparently fear their
ability to sell their products if a naturopathic licensing statute is in place. However, AANP-backed
model legislation expressly states that nothing in the statute takes any modalities from any other
providers. It is not clear how much MLM sales penetrate the practices of individuals who have
mail order ND certificates. This approach is a fear-based opposition which is not supported by
the evidence from states where licensing and mutli-level marketing co-exist, according to Sheila
Quinn, AANP excecutive director. THE INTEGRATOR has learned that the anti-licensing forces
have also opposed AANP-backed licensing or regulatory efforts in MAINE and in CALIFORNIA.
According to AANP sources, the Clayton-MLM coalition reportedly spent some $250,000
opposing ND licensing in 1998. The financial backing against licensing is expected to increase
this year. For AANP: 206-298-0126
End
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Business Developments (WellPath/AHO in NC, Pharmanex/UCLA, Research Alliance)

Media and Publications (MGMA Journal/CAM, Acupuncture Detox, Philip Lief)
CAM Professions (Controversies on TCM Quality, AAMC/AMA)
THE INTEGRATOR
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1
NATURAL PRODUCT FIRMS IN RESEARCH ALLIANCE

The CORPORATE ALLIANCE FOR INTEGRATIVE MEDICINE is a new non-profit organization
of 10 significant dietary supplement manufacturers and suppliers. The coalition has come
together to help found research programs in botanicals and major universities nationwide. A
second focus is on funding and developing educational initiatives to inform medical professionals
and consumers about the results of research in these areas. The founders, many of whom as
long-time competitors, are: BOTANICALS INTERNATIONAL, EAST EARTH HERB, NATROL,
NATURES HERBS, NATURES WAY, NU SKIN, NUTRACEUTICAL INC, MADIS BOTANICALS,
REXALL SUNDOWN and WEIDER NUTRITION INTERNATIONAL. [PHONE NEEDED]
PHARMANEX IN LINK TO UCLA SCHOOL OF MEDICINE

PHARMANEX, a subsidiary of NU SKIN ENTERPRISES, has linked with DAVID HEBER, MD,
PhD, chief of the division of clinical nutrition at the UCLA SCHOOL OF MEDICINE and director of
the CENTER FOR HUMAN NUTRITION for educational services on the nutritional products
oriented website. Weber and his staff will respond to the questions of those visiting the website.
Phamanex also boasts academic or research relationships with professionals at COLUMBIA
UNIVERSITY and SCRIPPS INSTITUTE.
HARTMAN AND ASSOCIATES: CAM PROVIDERS AND NUTRACEUTICAL SALES
A report on Integrated Health Care and Wellness from THE HARTMAN GROUP, Bellevue, WA,
casts light on a couple of key questions. First, the base of 45,000+ consumer respondents
indicated that 3% of total supplement sales were through practitioners, amounting to
$360,290,000 out of a total of $10.6 billion in sales. Some 20,956,000 units were purchased in
this way, at an average price of $17.69. Chinese herbs (19%) and dietary supplements (12%)
were the top two categories, followed by multi-vitamins (8%) and calcium (45) and etc. The study
suggests that health systems can, conceivably, significantly impact the percent of products its
consumers purchase through practitioners. As noted in the MEDICAL GROUP MANAGEMENT
Journal article noted above, at least two analysts conclude that up to 50% of clinic profits are in
natural products. The study also forecast potential future users of alternatives as follows (present
use in study/potential future users, as % of the population): dietary supplements (69%/84%),
chiropractic (33%/52%), herbal supplements (24%/53%), relaxation therapy (23%/515), massage
therapy (19%/53%), acupuncture (5%/22%), homeopathy (5%/20%) and aromatherapy
(4%/23%). Nearly two in five (39%) said they would use CAM more if it was covered through
their current health plan. 425-452-0818 hartman-group.com
WELLPATH HMO/ALTERNATIVE HEALTHCARE OPTIONS IN NC AFFINITY PRODUCT
Just a month after insurer BCBS of NORTH CAROLINA announced its new CAM discount
partnership with San Francisco-based CONSENSUS HEALTHCARE, WELLPATH SELECT, INC.
sent out a May 13 release from its Chapel Hill offices announcing it was the first HMO to offer a
similar benefit. WellPath has selected homegrown, Charolotte-based CAM network
ALTERNATIVE HEALTHCARE OPTIONS as its network partner. (For info on AHO, see Business
Developments, January INTEGRATOR.) Discounts will be at least 20% on alternative provider
services and at least 10% on retail and fitness centers. MIKE KING, the firms VP for marketing
and sales heralded the program. WellPath Select, a subsidiary of WellPath Community Health
Plans, is a joint venture formed in 1995 between DUKE UNIVERSITY and NEW YORK LIFE
INSURANCE COMPANY. Duke presently owns 75%. Included providers and services are;
acupuncture, naturopathy, massage, stores and online shopping. WellPaths own website takes
individuals to AHOs online shopping. WellPaths SANDY SCHERER told the INTEGRATOR that
WellPath will not use AHO networks of physical therapists or chiropractors since WellPath
already offers chiropractic as a benefit rider and offers PT as part of the medical plans and the
HMO is concerned about confusing its membership. For Scherer: 919-419-3806;
wellpathchp.com. AHOs website is aho-network.com.
2
MEDIA AND PUBLICATIONS
MGMA JOURNAL OFFERS MAJOR CAM FEATURE

Two consultants with SUPERIOR CONSULTANTS teamed to write a 10 page feature on CAM for
the MEDICAL GROUP MANAGEMENT ASSOCIATION Journal (May-June 1999). The two are
MARK HOFGARD, JD, and MELINDA ZIPPIN, MBA. Hofgard and Zippen have been heading up
CAM inside Superior for over two years; Hofgard has presented on CAM for MGMA. The report
includes a comparison of CAM provider salaries and encounter fees with those of conventional
PCPs: Massage ($25,000-$30,000/$45-$60), acupuncturist ($60,000-$80,000/$40-$60),
naturopathic physician ($70,000 to $80,000/$50 to $100); and PCP ($125,000+/$70-$80).
[NOTE: Except in the case of fully mature practices, the CAM figures noted are probably high for
most LAcs and NDs. -- JW] The writers echo a prediction in the January INTEGRATOR that a
period of some consolidation in the integration industry is underway. They write: Major players
(will) reshape the industry, will search for and acquire the best, most successful models in the
market. Where the right model does not exist, they will create one. The lure of large returns on
investment through economies of scale and high margins will mean that big money and large
health care systems will play a major role. The writers assume, based on extrapolations from
Eisenbergs data, that broadly speaking, between 2% and 5% of all health care expenditures in a
given market are for CAM. One recommended strategy for health systems exploring a move is
acquisition of one or more CAM stars to create instant recognition. They then quickly note that
these stars -- generally highly respected CAM-oriented MDs -- can be expensive to acquire.
Hofgard and Zippen suggest that 20%-30% of a clinics revenue stream and 50% of its profits
may come from sales of nutritional supplements and herbs. For success in a clinic, they
recommend the combination of high product sales plus 100% FFS reimbursement. They believe
that the most critical success factor is over estimating capital requirements. They put at $1-$3
million the capital requirements for a 100-130 visit/day clinic. Another critical success factor is
that someone other than a hospital manages the facility. The consultants do not focus on
whether CAM can bring more effective care, but rather on how CAM can be effective
economically for a physician practice or a health system presence in the marketplace. [PHONE]
PHILIP LIEF GROUP EVALUATING CAM PRODUCT LINE
The PHILIP LIEF GROUP, INC., which calls itself a leading book packager which develops
quality non-fiction books for New York publishers is planning to develop a new book series on
integrative medicine for a major national publisher. The firm is looking for an MD who is
committed to CAM to serve as a leader in developing the series.
ACUPUNCTURE DETOX NEWSLETTER
An exceptional, focused newsletter on CAM, and particularly acupuncture, in addiction, is
Guidepoints: Acupuncture in Recovery, published by Jay and Mary Renaud. Sample articles
are preliminary data on positive outcomes in a Texas setting, a study design in rural Oregon, and
a thorough discussion of a published research on ear-acupuncture (auricular acupuncture) which
showed insignificant effects in cocaine users. For those looking at addiction, this is a very good
tool. Renaud recently took over administration of the 500 member, $70,000 budget National
Acupuncture Detoxification Association. Also covered are political developments in individual
states and the positioning between these certified, lay specialists and licensed providers. Note:
Acu-detox programs have not generally been viewed as part of covered benefits or as discounted
services. $180,12 issues X 8 pages/issue. 360-254-0186. acudetox@aol.com.
3
CAM PROFESSIONS
CONTROVERSIAL DATA: PROFESSIONAL STANDARDS AND EFFECTS ON SAFETY

One festering conflict in the growing CAM integration movement revolves around the comparison
in the quality of care offer by a CAM professional whose training focuses on a distinct CAM
tradition, and a CAM modality offered by a professional whose training is conventional (MD, RN,
etc.) On the one side are the distinct CAM professions, whose licensed acupuncturists,
naturopathic physicians and chiropractors have received 3-6 years of onsite, professional
education during which they are imbued with a natural health philosophy of care. On the other is
the systems pre-disposition toward empowering MD CAM providers, who may be given
significant responsibility for CAM integration, and delivery of CAM services, yet have very little
education in CAM. What they have is generally not residential, lacks clinical components, is
modality rather than philosophy oriented, and sis not based on externally verifiable standards.
(See April-May 1998 INTEGRATORS on credentialing the CAM MD.) Questions arise: Are
these therapies as efficacious when provided by mainstream educated providers who may have
added these therapies to their conventional armamentarium without immersing themselves in a
school or philosophy and approach? Are they as safe? Are they safer, given the conventional
training of the provider? Some early light on the safety questions was reported in a presentation
on CAM professional standards at the recent INTERNATIONAL CONFERENCE ON
INTEGRATIVE MEDICINE in Seattle. Australian researchers found an average of 2.5 adverse
events per year for MDs doing traditional Chinese Medicine, versus 1.1 for non-medical
practitioners. The researchers also found a dose response relationship between adverse event
rate, and length of training:
Length of Training
0-12 months
37-48 months
49-60 months
Adverse Events/Year
2.07
1.35
0.92
The figures are based on: Benoussan and Myers. Toward a Safe Choice: The Practice of
Traditional Chinese Medicine in Australia. Faculty of Health, University of Western Sydney.
MacArthur. Department of Human Services. 1996. The ICIM presenter, PAMELA SNIDER, ND,
associate dean for naturopathic medicine at BASTYR UNIVERSITY, noted that the researchers
believed that the therapeutic approach of the providers may influence the outcomes. Of those
practitioners who have a non-primary use of TCM (average 8.0 months of TCM training), only
24% rely predominantly on a TCM philosophy. On the other hand, 90% of those with primary
training in TCM (average 43.6 months of TCM training), and with the lower incidence of problems,
focus their practice on a TCM philosophy. For Snider: 425-602-3143.
MEDICAL ACUPUNCTURISTS: LOOKING FOR AMA ACCREDITATION OF CME S
The Fall-Winter 1998-1999 issue of Medical Acupuncture: A Journal for Physicians by
Physicians of the AMERICAN ACADEMY OF MEDICAL ACUPUNCTURE (AAMC) includes an
instructive overview of the AAMCs educational initiatives. The AAMC, the organization limited to
those medical doctors and osteopaths who use acupuncture, is in the process of applying to be a
formal, AMERICAN MEDICAL ASSOCIATION approved CME sponsor. The application is
possible since the AMA formally certified acupuncture as an educational subject area suitable
for CMEs in May of 1998. The AMAs decision followed on the November 1997 NIH Consensus
Conference on Acupuncture, and recommended that conferences conclusions as useful
guidelines for acceptable subject matter. (See December 1997 INTEGRATOR on the
Consensus Conference.) The move by the AMA is an interesting step away from its arms length
policy regarding many CAM therapies, endorsing education about them, but not in how to
clinically apply them. (See May 1998 issue.) The AMAs criterion are; 1) validated by basic
research, 2) validated by clinical research, 3) taught in medical schools, 4) practiced by
significant numbers of physicians. Allen McDaniels, MD, chairs the AAMCs CME committee.
For McDaniels: 310-548-5935
End
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I/H Benefits (Blues activity chart, a coalition model)

Business Developments (HMSA-HI, Alternare/HH&T, Alternare/ForMost)
CAM Professions (ND gain in CA, Ad Hoc CAM Professions Group)
THE INTEGRATOR
__________________
____________________
1
INDUSTRY/HEALTH BENEFITS
A.
BLUES DATA AVAILABLE TO I/H SUBSCRIBERS: LET US KNOW
The June issue of THE INTEGRATOR will include a chart which provides an impressionistic
overview of CAM products in 24 Blues plans across the United States. While not a definitive
study -- the table is compiled largely from past INTEGRATOR reports and notices -- it will be
the most significant published overview of activity by Blues firms to date. The report focuses on
activities which extend beyond chiropractic. A follow-up table is planned for the July issue which
notes chiropractic activity. The simple chart shows only: 1) name of the plan; 2) time of start of
the CAM initiative; 3) network partner, if any; and 4) description/comment on the nature of the
product. If you would like a copy of the chart faxed to you, please contact Cheryl at
isnh@quidnunc.net or 206-933-7983 with your fax number. This early review is a benefit of your
INDUSTRY/HEALTH Subscription.
B.
ONE MODEL FOR A COLLABORATIVE AGENDA: MORE ON THE CORPORATE

ALLIANCE FOR INTEGRATIVE MEDICINE (CAIM)
Coalition development is of interest given the I/H commitment to helping the emerging CAM
industry form or expand a collaborative agenda. The following is an update on the new coalition
of 10 nutritional product suppliers reported in I/H Newsfile #17. DEBBIE DESANTIS, secretary
for the organization and a vice president with REXALL SUNDOWN told THE INTEGRATOR that
the group of long-time competitors have found it surprisingly easy to work together as CAIM.
Each have contributed like shares to a $500,000 seed fund. The mission is research and
education in natural products. The initial academic partner is HARVARD UNIVERSITY with
SUSANNE CHURCHILL, PHD, associate dean for research, in the leadership role as chair of the
peer review committee. Projects will be selected by a committee of seven, involving Churchill,
three Harvard reps and three from the Coalition. The committee is presently reviewing its first
batch of proposed projects. Harvard issued an internal call for papers. At present, the group is
planning to keep its numbers at 10, a relatively manageable size, but may allow others in to
increase its funding base in the future. Asked which suppliers products would be used in a given
research project, DeSantis said that the peer review team would make the decision on product
supply. The research is not to specifically benefit any of the companies, DeSantis clarifies,
noting again that the organization is structured as a 501(c)3 charity. For DeSantis: 561-241-9400
x 2905
2
HAWAII BLUE-BLUE PLAN TO ANNOUNCE CAM PARTNERS

FRED FORTIN, PHD, vice president for community relations with the states dominant health
plan, the Blue Cross Blue Shield HAWAII MEDICAL SERVICES ASSOCIATION (ASHP) told THE
INTEGRATOR in late May and that HMSAs long SHORT exploration of CAM will soon lead to
formal announcement that we are going to institute a discount this summer. The firm will work
with both LANDMARK HEALTHCARE and AMERICAN SPECIALTY HEALTH PLAN (ASHP
depending, Fortin says, on who the providers are. ASHP will be offering a chiropractic network,
through which HMSA will continue to offer a rider which HMSA as offered for many year, adds
Fortin. The two networks were known to be competing fiercely for the business. Landmarks
CEO MARLA ORTH had been a featured speaker at a conference hosted by HMSA in May of
1998. Fortin makes it clear that he doesnt believe HMSAs exploration of CAM will end here: I
want to emphasize that this is an engagement strategy. We need to understand the state of the
relationships. We know this does not take us to the best of integrated care that Id like to see and
so many of us would like to see in the future. This is just the first step as far as I can see. JIM
WALSH in the firms provider contracting is presently heading up HMSAs work in this arena.
TWO FROM ALTERNARE
A
ALTERNARE Purchases HEALTH AND HEALING TRUST
CANDACE SELLERS CAPELLI has told THE INTEGRATOR that The Alternare Group, Portland,
Oregon, is putting the final touches on the press release to announce that the firm has
purchased HEALTH & HEALING TRUST. H&HT is a New Jersey network which was in the
process of closing its doors due to lack of significant business. Alternare states that their reason
is primarily because we have received so many inquiries in recent months from carriers and
employers in the Northeast. Alternare found H&HT a good philosophical match. The firm liked
the immediate East Coast presence, particularly given its ongoing negotiations with ANTHEM
BLUE CROSS BLUE SHIELD (which do not yet have an implementation date). Capelli noted that
ROBERT DENNIS, MD, founder of H&HT will be remaining in a consulting role. The East Coast
branch will ultimately change its name to Alternare Health Services.
B
Alternare Merges with FORMOST
Capelli also confirmed that Alternare has recently merged with a conventional managed care
company called ForMost. The firm, also in New Jersey (coincidentally, Capelli states) They are
was one of Alternares largest clients for the firms medical management division. ForMost has
national allopathic physician and hospital networks including a specialized tertiary network.
according to Capelli. . The two firms decided to join forces to each strengthen the others bicoastal presence and to gain the management and financial wherewithal of a combined larger
organization. She states taht the merger hasn't really affected the alternative medicine
programs, adding: Our medical management services are now part of ForMost, but Alternare
remains a distinct company. Alternare is now under Capellis leadership. DALE WHITE, an
Alternare principal formerly based in Portland, is now COO of ForMost. 800-320-6444
___________________
CAM PROFESSIONS AND ORGANIZATIONS
NATUROPATHIC PHYSICIANS POST GAIN IN CALIFORNIA

By a 5-0 vote, a bill to study naturopathy was passed out of the CALIFORNIA STATE SENATE
on May 18. SENATOR MAURICE JOHANNESSEN is lead author on the measure. DAVID
FIELD, ND, LAC, the president of the CALIFORNIA ASSOCIATION OF NATUROPATHIC
PHYSICIANS, and leader of the drive for the bill, and ultimately for licensing, anticipates that a
forum will be held by the DEPARTMENT OF CONSUMER AFFAIRS. The AANP is presently
working on their submission. SCARLETT MOSS heads up licensing activity at the national level.
206-298-0126.
AD HOC GROUP SEEKS TO PULL LICENSED PROFESSIONS INTO COALITION
A Sunday morning College Standards and Credentialing roundtable discussion held on May 2 at
the INTERNATIONAL CONFERENCE ON INTEGRATIVE MEDICINE may lead to an ad hoc
coalition among licensed CAM professional organizations, according to meeting attendees.
Organizers include SHEILA QUINN, who had moderated an ICIM panel entitled Beyond Data:
Integration Models, Standards and Accountability at the ICIM and PAM SNIDER, ND, associate
dean for naturopathic medicine at BASTYR UNIVERSITY. Quinn is executive director of the
AMERICAN ASSOCIATION OF NATUROPATHIC PHYSICIANS. A part of the work is to develop
an organized approach and a shared national agenda relative to the anticipated PRESIDENTIAL
COMMISSION on CAM which is in development. One component of the federal legislation which
expanded funding and formally created the CENTER FOR COMPLEMENTARY AND
ALTERNATIVE MEDICINE at the NATIONAL INSTITUTES OF HEALTH specifically requires, for
the first time, inclusion of representatives of the distinct professions. Snider was instrumental in
placing this language in the law. These first years of the NIH OAM have seen most activity led by
conventional providers (MD/DO). Bastyr was the only CAM institution to receive major research
funding as a CAM center. However, Bastyrs grant was not reviewed. While this may have been
for a variety of reasons, one reality is that the NIH unconscionably named Stephen Barrett, PhD,
long-time quack-buster and antagonist to alternative medicine in general and naturopathic
medicine in particular, to Bastyrs review team. 206-298-0126
End
______________
News File #19, June 7, 1999
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4
Special for I/H Subscribers: Report on N-CAM Network

Business Developments (Botanical Industry, H&HT AZ/America West, CHR/SIM
Conference, Wellington/SIM)
Government Action (Maryland/massage)
Media (Medical Economics)
THE INTEGRATOR

__________________
____________________
1
SPECIAL REPORT: N-CAM NETWORK OF NETWORKS AVAILABLE TO I/H
THE INTEGRATOR has developed an article on N-CAM, the national network of networks
which has been created to service affinity products, and eventually covered PPO products, for
national accounts. The article includes charts which provide: 1) information (name, executive,
base, brief sketch) on the firms 12 network partners; 2) information on the firms eight affiliate
networks; and 3) information on 10 of the firms accounts. Due to space limitations in the June
INTEGRATOR, the article will not run until the July issue. I/H subscribers interested in
previewing this report, please e-mail your request and fax number to Cheryl Robinson at
isnh@quidnunc.net.
2
AFTER THE FLOOD: SLOWING IN THE BOTANICAL INDUSTRY

PEGGY BREVOORT, president of EAST EARTH HERBS, recently gave a candid report to THE
INTEGRATOR on the current state of the botanicals industry. Brevoort, a past-president of the
AMERICAN HERBAL PRODUCTS ASSOCIATION and a leading expert on herb industry trends,
provides useful insight on surprising struggles in that industry. She notes that recent expanding
interest in botanicals created many new additional venues for sales, particularly in mainstream
drugstores, supermarkets, internet, and etc. However, many firms assumed that the buy-in to fill
the pipeline -- the initial fill rate for the expanded pipeline -- would be the same as every day
sales. Instead, sales, while higher than the past, have settled to a marginal increase rather than
a dramatic one. Were seeing a big time back up on products, says Brevoort. She says that
the first flush of excitement is over. The industry has now hit the public with major categories
for leading conditions -- colds, depression -- and a huge new market area is not expected to
open. Brevoort also states that an unfortunate side-effect some expect of the tremendous growth
to fill the pipeline is that some need for product was certainly filled by product of low quality.
Therefore many first-timers may have disappointing experiences of herbs. Brevoort states that,
while the major pharmaceutical firms which have moved into botanicals are in it for the long run,
some significant but unnamed herb companies are expected to go under amidst mis-calculations
and competitive pressures. Brevoort will be presenting a global industry overview at the
NUTRACON conference on herbs in Las Vegas on July [
].
ARIZONA HEALTH AND HEALING TRUST AND AMERICA WEST
HANK MACKEY, of the Arizonas HEALTH AND HEALING TRUST (formerly affiliated with the
New Jersey firm purchased by ALTERNARE but now on its own) is managing a discount product
for AMERICA WEST. The employer, with 8500 dependents in Phoenixs Maricopa County, has
seen 3500 sift to a new MAYO plan, which includes the H&HT offering, from CIGNA. Mackey
anticipates the H&HT will be offered with both plan choices next year.
CAMBRIDGE/SOLUTIONS CONFERENCE: MODERATE TO GOOD TURNOUT

The CAMBRIDGEHEALTH RESOURCES/SOLUTIONS IN INTEGRATIVE MEDICINE
conference drew 55-60 individuals to San Francisco for a June 3-4 meeting which focused on the
practical strategies for implementing integrative medicine clinics. At least 90% were parties which
either had clinics in place or in development -- a mixture of stand-alone and health system
based. In a related note, ROGER WELLINGTON, former administrator of the CAM program with
HITCHCOCK CLINICS has purchased a partnership in SOLUTIONS IN INTEGRATIVE
MEDICINE, the CAM consulting and billing firm founded by LINDA BEDELL LOGAN. Wellington,
who has presented on CAM issue for NMHCC, has recently been involved with an ad hoc group
developed under the NEW HAMPSHIRE HOSPITAL ASSOCIATION which has been exploring
CAM. CHR and SIM are considering using the same core of six speakers for an east coast
version of the intensive. Interestingly, a despite the location, a vast majority of the attendees
were not from the west coast. For CHR: 617-630-1330; for SIM: 800-464-5110
3
GOVERNMENT ACTION
MASSAGE LICENSING CHANGE IN MARYLAND

INTEGRATOR advisor ELLIOT GREENE, LMT, reports the following on a law regulating
massage therapy in MARYLAND: The law, which was originally established in 1996, was
revised when the governor signed HB178 on May 13. The new law added a "lower" level of
regulation, registration, to the existing level of state certification. State certification will continue to
require 60 credit hours of higher education, along with specified hours of massage therapy
training and passing an exam. However, registration will not require the 60 hours of higher
education. In addition, those registered will have the title massage practitioner and will be
registered to practice only non-therapeutic massage. Those state certified will continue to have
the title massage therapist and be certified to practice massage therapy. Those registered will
face three restrictions that do not apply to those who are state certified: 1) those registered may
not practice in a medical health care provider's office, hospital, or other health care facility, 2) a
licensed or certified health care provider may not refer patients to a person who is not a certified
massage therapist, and 3) those registered or a business that employs registered persons may
not advertise that the person or business provides health-related therapeutic massage. The
action came about after an Assistant State's Attorney ruled that due to a flaw in the original law's
wording, it was not a practice act, but a title protection act. A bill was filed to fix the wording and
assure the law remained a practice act. However, a local massage school that did not like the
higher education requirement in the 1996 law opposed the bill. Eventually a compromise was
reached, which is reflected in the new law. For AMTA: 847-864-0123
4
MEDIA
MEDICAL ECONOMICS IN TWO FEATURES

The May 24 issue of MEDICAL ECONOMICS includes two looks at CAM. One, on CAM
networks and noted in an earlier Newsfile, grew out of the INTEGRATOR CAM NETWORK
EXECUTIVE SURVEY. It runs in his PCP-oriented publication with the surprising title: Your
newest competitors: Alternative-medicine networks. Most information will not be new to I/H
subscribers. Interviewed are reps of CONSENSUS, ASHP, group health AMERICAN WHOLE
HEALTH NETWORKS) LANDMARK and INTEGRATION STRATEGIES FOR NATURAL
HEALTHCARE. The second has an equally fear-provoking headline: Will alternative medicine
referrals get you sued? Both articles were written by the magazines senior associate editor
DEBORAH GRANDINETTI, the publications in-house CAM expert. Of note: Experts cited
werent aware of a single case of a lawsuit against a physician for referring to a CAM provider.
DAVID STUDDERT, an attorney who was a lead author of an 11/10/98 JAMA piece on
malpractice issues in CAM warns against referral to unlicensed practitioners, as the courts could
look upon (him/her) as incompetent. Studdert recommends staying abreast of the literature in
order to keep from being charged for referring a patient for services which may have been found
to be ineffective. Legal scholar MICHAEL COHEN (one of the CHR/SIM presenters -- see
article above) is cited as arguing that hed like to see duty to refer run both ways, so that
physicians would be required to refer patients to a CAM therapists if theres sufficient evidence
that the therapy could diminish the need for medication, ease suffering or accelerate healing.
Cohen is the author of the groundbreaking Complementary and Alternative Medicine: Legal
Boundaries and Regulatory Perspectives (Hopkins, 1998).
End
INDUSTRY/HEALTH News File #19, June 7, 1999
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Hospital-Based Massage Program Data

Integrative Clinic: Process for Developing a Natural Products Pharmacy
Media: AMNews on CAM insurance, Current Medicine volume)
Interactive Comment: Problems with Natural Product Quality
THE INTEGRATOR
__________________
AN I/H INTERACTIVE RULE: If you have any response or feedback, we will assume that your
____________________
1
HOSPITAL MASSAGE REPORT
The April 1997 INTEGRATOR looked at the expansion of hospital based massage programs. A
report in HOSPITAL BASED MASSAGE NETWORK QUARTERLY looks at hospital based
massage programs in 17 hospitals. The report was compiled by SONAL SUBRAMANIAM, a
graduate student. Findings include:
1) Of those offering massage to employees, 47% allowed employers to take massage during
scheduled work time.
2) 35% (6) bill for reimbursement under PT and occupational therapy.
3) 24% (4) offer the services for free and consider it as part of nursing care
4) Maximum number of massage therapists in any institution was 3.
5) Credentialing varies significantly, including educational requirements from 200 to 100 hours.
6) The full time salaried providers made $20,000 -- $49,000; hourly fees range from $8 to $26.
7) 29% (5) were engaged in gathering some data on effectiveness of treatment
For HBMN: 970-407-9232. Note, owner Laura Koch of this quirky but useful, labor-of-lovepublication announced that she is looking for someone to take it over. She plans just two more
issues. HBMN.com.
_______________
2
MEDIA & PUBLICATIONS
A.
AMERICAN MEDICAL NEWS CAM INSURANCE/INTEGRATION FEATURE
AMERICAN MEDICAL NEWS (June 7, 1999) includes a two pager called Alternative Care:
Getting a Boost from Insurers. Featured is data from the MERCER/FOSTER HIGGINS study
(May 1999 INTEGRATOR) which THE INTEGRATOR provided to the AMN reporter. JOHN LA
PUMA, MD, medical director of a health and fitness clinic for ALEXIAN BROTHERS MEDICAL
CENTER in Elk Grove Village, Illinois, is among those interviewed. BLUE CROSS BLUE SHIELD
OF GREATER ROCHESTER is noted as starting up an acupuncture benefit this year. (Note;
This program is NOT in the INTEGRATOR chart on Blues activity.) Director of education, JIM
REDMOND, is quoted on consumer demand being the motivation. ANNA SILBERMAN of
HIGHMARK BLUE CROSS BLUE SHIELD (see INTEGRATOR BLUES chart) reports that an
evaluation of 130 patients in the firms progressive DEAN ORNISH affiliated heart program saw
cholesterol drop an average of 27 points and oxygen capacity up 2.2%. Highmark is pleased with
the results. Another party interviewed is ADVOCATE HEALTH CARE, a health system in Oak
Brook, Illinois, which teamed with ALTERNATIVE HEALTH PARTNERS on an outpatient,
integrative clinic. FREDERIC ETTNER, MD, the clinics co-medical director, estimates that 1/4 of
the clinics patients have limited insurance, while the rest pay on their own. For AMNews: 800262-2350.
B.
CURRENT MEDICINE: CURRENT REVIEW OF COMPLEMENTARY MEDICINE
The CURRENT MEDICINE volume on complementary and alternative medicine, edited by MARC
MICOZZI, PhD, MD, is out. Most of the volume focuses on clinical issues and data (chelation,
acupuncture, herbs, lifestyle intervention, etc.). Should be a good educational tool for physicians.
The last section looks at the administrative side -- a short piece on clinics by DAVID EDELBERG,
founder of AMERICAN WHOLEHEALTH, one on insurance by JOHN WEEKS/ISNH, one on
healing environments by ANNETTE RIDENOUR, who designed the space for the ill-fated
ARIZONA CENTERS initiative, and an interesting look at CAM surveys from JACKIE WOOTON
who is managing editor for the Liebert blue journal. (The volumes pictures of the Arizona Centers
meditation area -- now reportedly a telemarketing operation -- are the worst sort of black humor.
-- JW) Current Medicine is in Philadelphia, PA. 215-574-2266
_______________
3.
INTEGRATIVE CLINICS: DEVELOPING A NATURAL PRODUCTS PHARMACY
Note: The July INTEGRATOR will focus on credentialing natural product suppliers and
developing botanical dispensaries. LEAH KLIGER, with THE LAKES GROUP, offered the
following, based on her experience in this area with hospital outpatient pharmacies and CAMoriented physician offices. It is a useful overview of a process:
Find a physician or pharmacist champion (preferably both). Form a small task group comprised
of the physician, pharmacist, nutritionist, project lead (often an administrative type). Conduct
interviews with selected physicians/ nurse practitioners/PA's to find out what kinds of patients
they most often see, and for what conditions. Assess their attitudes towards herbs and nutritional
supplements. Based on data, develop a list of common (and chronic) conditions and match
various herbs/nutritional supplements that have been shown by research studies to be effective.
Credential herb suppliers that sell only to professionals using a credentialing check list. [Kliger
notes 40 companies but usually works with less than 10.] She continues: Gain agreement on
which products to stock from the small task group, and if, a hospital or large clinic, from the
pharmacy and therapeutics (P&T) committee. Kliger then shifts to facility issues: Look at
facility requirements--space, layout, case work and fixtures necessary, etc. Do a financial
forecast based on market size. Kliger uses conservative estimates. Check to see if any area
insurance companies cover these products. Add other products such as homeopathics and/or
Bach flower remedies and/or aromatherapy and/or natural throat lozenges, etc. if acceptable.
She recommends an educational component: Hold grand rounds and educational sessions for
clinical staff. Buy many copies of the Herbal PDR and Commission E monographs and maybe
one of the databases such as HealthNotes Online for many of the physicians/pharmacists.
Promote the facility. Open. Add more products over time as practitioners feel more comfortable.
Keep educating staff and community.
Among Kligers clients in this area are Valley Medical Center, in Renton, WA. Kliger, whose
mainstream background is with physician and hospital organizations, has educated herself in the
area of botanicals and has presented nationally on the topic of developing a pharmacy program.
For Kliger; 425-334-5926
_______________
4.
INTERACTIVE COMMENT: NATURAL PRODUCTS FOLLOW-UP -- DUMBING

DOWN
Following the comments from former AMERICAN HERBAL PRODUCTS ASSOCIATION

president PEGGY BREVOORT in Newsfile #19, another industry player made the following
comments. Given the initial rush to expand the pipeline, which Brevoort referenced, general
product quality has suffered significantly. One reason is that pressures on supply have led to use
of lower grade product. Another is what this player called the dumbing down of products. This
is when a manufacturer sells a cheaper botanical by standardizing at a lower level. He noted a
St. Johns Wort (Hypericum) product standardized at 0.15% which sells 30 tabs for $4.00 while
a product of greater quality (0.3%) might sell for 60 tabs at $14.00. He called this shrewd
marketing -- in the short term. But these practices create a very damaging experience for the
CAM movement: Many new users who, on their first experiment, get a product that is either
made of poor raw materials or dumbed down good materials. Either way, this pioneering step
into alternative medicine for these individual, trained to respond to typically faster acting
pharmaceuticals even with the botanicals are at full strength, is likely to end in an experience
which confirms that natural products dont work. Pay closer attention than ever to supply.
End
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INTEGRATOR INDUSTRY/HEALTH SUBSCRIBER
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Business Developments (CWC/KATS, Leaver to AWHN from ASHP, CAM at AAHP)

Insurance Angles (Rolfers/Repetitive Stress, Chelation/CAD)
CAM Professions (AAOM/Fed Action, Bastyr/Spirituality program)
THE INTEGRATOR
__________________
____________________
1
A.
COMPLETE WELLNESS CENTERS & KATS MANAGEMENT INK DEAL
Washington, DC-based COMPLETE WELLNESS CENTERS, a publicly traded firm which claims
to be the nations largest owner of integrated clinics has formed a partnership agreement with
KATS MANAGEMENT SERVICE, the nations leading chiropractic management consulting firm.
CWC presently manages 82 branded Complete Wellness Medical Centers. The model links
chiropractors and medical doctors; CWC does not own all the clinical facilities. KATS, formed by
chiropractors DAVID KATS, DC, in 1982, currently has over 1,000 chiropractors on year-long
consulting contracts. (The release states that KATS is the only chiropractic consultancy
endorsed by the AMERICAN CHIROPRACTIC ASSOCIATION.) The June 16 announcement
included a statement from CWCs CEO JOE RAYMOND that CWC expected to: 1) assist in the
firms national expansion by bringing it to the attention of more chiropractors, 2) increase CWCs
revenues; and 3) give CWC the ability to train on a national basis. CWC, an early player in the
integrative medicine movement, successfully raised $6 million through an initial public offering in
early 1997. MARC MICOZZI, PHD, MD, has served the firm as head of its advisory board. The
firm originally planned to have a significant educational component, but has not, to date, done so.
For CWC: 202-543-6800
B.
LEAVER, DOUGLAS LEAVE ASHP FOR TOP ROLES WITH AWHN
In a June 20 announcement to THE INTEGRATOR which underlines the growing

competitiveness between the national network businesses, Wisconsin-based AMERICAN
WHOLEHEALTH NETWORKS announced that ERIC LEAVER, former VP for strategic planning
with San Diego-based AMERICAN SPECIALTY HEALTH PLANS has left ASHP to assume a
similar position with AWHN. ASHP is, from the perspective of current operating capital, the most
significant player in network business. AWHN is the major venture player in the field. Also
changing firms is BILL DOUGLAS, a former regional sales manager for ASHP. Douglas
becomes AWHNs VP for business development. JAY MASON, AWHN president, contacted THE
INTEGRATOR with the announcement. Mason clarified that both individuals would be part of
AWHNs executive team, with a combined salary plus options plan. (According to the
INTEGRATOR 1998 Network Executive Survey, ASHPs employee packages do not include
ownership or options.) The two are expected to immediately set up a California office for AWHN.
Mason says that while AWHN has significant PPO business in California through its 1400+
credentialed chiropractors, the firm anticipates moving toward a Knox Keene license which will
allow the firm to take risk. Mason said his interest in Leaver was stimulated by being impressed
by what (Leaver) was doing for his former employer. Leaver was playing a leading role in
ASHPs expansion outside of its historic six state area (see May INTEGRATOR). Mason stated
that he believed Leavers reasons for the move were that he recognized the unique opportunities
here, particularly our clinical expertise and what we can develop out of that. Mason portrayed
AWHNs move into California as one which simply needed the right person, and now we have
him. While Leavers focus, and that of Douglas, will be in California, both he and Bill will have
no restrictions and are expected to work part time in other areas of the country. Mason believes
these moves will advance AWHNs strategy of selectively consolidating the industry. For AWHN:
800-274-7526.
C.
CAM NETWORKS PRESENCE INCREASES AT AAHP INSTITUTE
The AMERICAN ASSOCIATION OF HEALTH PLANS is the national industry organization for
managed care firms. While slow to develop continuing education in CAM relative to its for-profit
counterpart, the NATIONAL MANAGED HEALTH CARE CONGRESS, AAHP has had single
sessions on CAM at its 1997, 1998 and at the present 1999 INSTITUTE (San Francisco, 6/2023). The major shift with the AAHP is the presence and visibility of CAM network exhibitors and
sponsors. AMERICAN SPECIALTY HEALTH PLANS is one of five Conference Patrons, at a
reported $40,000-$50,000. One of just eight Conference Hosts is AMERICAN CHIROPRACTIC
NETWORK INC. All totaled, CAM firms are 2 of 14 sponsors. Among the other exhibiting AAHP
corporate members is LANDMARK HEALTHCARE. Also exhibiting are AMERICAN
WHOLEHEALTH NETWORKS, TRIAD HEALTHCARE and PRISM NETWORKS.
CAM PRESENTATION IN CORE MANAGED CARE TRAINING In related news, the AAHP has
invited INTEGRATOR editor JOHN WEEKS to present a 90 minute luncheon CAM session at the
organizations Managed Care in Practice: New Skills for a Changing Environment. The August
8-11 meeting is an AMA accredited program (17.75 hours) developed as a basic training for new
managed care personnel. This is the first of the AAHPs basic trainings in which a CAM
presentation has been included. The inclusion may be viewed as a sign of the CAM industrys
emergence as a part of doing business in managed health care. The presentation will be entitled:
Does Alternative Medicine Have a Place in Managed Care? For AAHP: 202-778-3269.
2
A.
INSURANCE ANGLES
ROLFERS BOAST OF EMPLOYER SAVINGS
An aggressive program to make ROLFING, a specific form of body work (structural integration)
with its own internal certification requirements, available to employees is cited by STARKEY
LABORATORIES, a large Minnesota manufacturer, as a significant factor in their workers
compensation claims, according to a release from THE ROLF INSTITUTE. Cost reductions for
repetitive stress conditions, some of which were reportedly linked to the Rolfing program, were
from $1.2 million in 1992 to $150,00 in 1996. LARRY MILLER, the firms human resources VP,
champions the Rolfing program. He specifically noted the positive impact on lowering workers
compensation costs for carpal tunnel syndrome. Rolfing -- a series of sessions -- costs about
$800 per individual, but Starkey notes that hand surgery runs $35,000 per employee. The Rolf
Institute now offers a video, based on the Starkey experience, called Rolfing in the Workplace.
There are roughly 1,000 certified Rolfers worldwide. 800-530-8875
B.
CHELATION COVERAGE: WHERE IS IT AVAILABLE?
One of the more controversial areas of alternative medicine is with CHELATION THERAPY, for
anything beyond heavy metal poisoning. Some employers have begun quietly covering the
treatment, THE INTEGRATOR has learned. However, once being contacted, some employer
medical directors have been reluctant to go public with the information, given the politicaleconomic environment. Opinions runs high: Bypass is a high end mainstream procedure and
chelation a high-end alternative medicine procedure for many CAM-oriented MDs and DOs (as
well as chiropractors and naturopathic physicians, in some states). Both have been challenged
on their appropriateness and effectiveness. In some cases, employer coverage seems to be
linked to an executive having a positive experience of the chelation therapy. Anyone with
knowledge of employers or insurers who will go on the record with information about coverage,
please contact THE INTEGRATOR at 206-933-7983, or send a return e-mailing. Thank you.
3
CAM PROFESSIONS AND ORGANIZATIONS
A.
ACUPUNCTURISTS REACH OUT TO BURTON, FED AGENCIES ON HERBS
A June letter to CONGRESSMAN DAN BURTON from the AMERICAN ASSOCIATION OF

ORIENTAL MEDICINE underlined that organizations willingness to work with federal agencies on
herbal safety and reporting issues. The letter, from DAVID MOLONY, LAc, the associations
executive director, notes that AAOM is initiating its own internal adverse events reporting
program, but due to its own budget limits will be slow and therefore would welcome participation
with an FDA initiative. Molony notes that the AAOM has never been approached by the FDA for
involvement. He notes a continuing problem as the lack of educated professionals in (NIH,
HCFA, FDA, VA, and other agencies) who have any true awareness of what it is that Oriental
Medicine professionals do or even what their educational criteria are. The letter raises concerns
about how judgments on Oriental medicine, and on herbal safety, can be made by medical
professionals from another medical paradigm. 610-264-2755.
B.
SPIRITUALITY PROGRAM AT BASTYR UNIVERSITY
BASTYR UNIVERSITY is offering a 30 credit Spirituality, Health and Medicine professional

certificate program starting this fall. The program has secured supportive quotes from JOAN
BORYSENKO, PHD, CAROLINE MYSS, PHD, and RACHEL NAOMI REMEN, MD. The chair of
Bastyrs Department of Spirituality, Health and Medicine is EMMA BEZY, MSW/ACSW. The
diverse 10 course program includes sessions on persectives of world religions on spirituality and
health, ethics, personal practice (Walking the Talk, two courses), research methodology and
others. The program has been in discussion and development for over six years. Bastyr is the
nations leading, multi-disciplinary university of natural medicine and is the only CAM-based
institution to have received significant NIH research funds. [Note: Bastyrs leading administrators
have argued, in a variety of forums and in general agreement with the AAOM position noted
immediately above, that the distinct CAM professions have been underrepresented in federal
policy making on CAM. -- JW] For Bastyr: 425-602-3005.
End
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Battle over Benjamins SUNY Stony Brook IPA Program

AWHN Takes 50% Stake in N-CAM
Two on CAM Mandates (Federal employees, WA Rules)
AMA Guidelines on In-Office Sales of Health Products
Workforce Magazine Feature
More on Conference Turnout
THE INTEGRATOR

__________________
____________________
1
CAM IPA MOVE STIRS CONTROVERSY AT BENJAMINS SUNY NY PROGRAM
Controversy is storming around the integrative medicine program at STATE UNIVERSITY OF

NEW YORK AT STONY BROOK following announcement by INTEGRATOR advisor SAM
BENJAMIN, MD, that he plans to develop an independent provider association (IPA) to offer
insured CAM benefits. The situation underlines the heat of the conflict, especially once services
are delivered. A May 11 article in NEWSDAY publicized Benjamins efforts to contract with
various HMOs to delivery CAM services. The HMO cited is MDNY HEALTHCARE, and its
medical director RON PERRONE, MD, who said the firms CAM product, at least six months from
formal approval by the state insurance department, would require PCP referral. The IPA was to
serve as the network. In the article, MARCIA ANGELL, MD, editor of NEJM, and an outspoken
antagonist toward CAM, derides the IPA: There is money in alternative medicine and
universities are not above reaching for that money. She is quoted as calling the move
disgusting. (An unnamed antagonistic physician took the same tack, suggesting that it would be
more honest ... if the university were open a gambling casino. NORMAN EDELMAN, MD, the
medical schools dean, put the IPA on hold, pending review. The issue has split the schools
medical leadership, with Benjamin strongly supported by hospital director MICHAEL
MAFFETONE, by JIM DAVIS, MD, chairman of neurology, and others. Benjamin told the
INTEGRATOR that he feels the program may be at risk. Citizens groups are lining up in support
of the effort, and the effort has been opposed by some of the national so-called anti-quackery
groups. Leaders of different CAM programs are quoted as weighing in on various levels. DAVID
SPIEGEL, MD, at STANFORD, spoke of moving more cautiously than he perceives Benjamin
while BRIAN BERMAN, MD, at the UNIVERSITY OF MARYLAND reportedly called his own clinic
important for generating ideas on which his team could undertake double-blind research.
Strong support was weighed in by MEHMET OZ, MD, across the East River at COLUMBIAPRESBYTERIAN who applauded Benjamins efforts at organizing provider, the single biggest
problem in alternative medicine. Oz talks about having some air cover in his own program, but
when you got to outpatient services, you can ruffle a lot of feathers. INTEGRATOR interviews
found significant underlines the depths of anxiety provoked by integrative departments,
particularly when they reach out to offer services. This report is based largely on three articles
filed by NEWSDAY reporter RIDGLEY OCHS.
2
AWHN TAKES 50% STAKE IN NETWORK-OF-NETWORKS N-CAM
Following discussions that began at the spring meeting of the NATIONAL MANAGED HEALTH
CARE CONGRESS, national network-of-networks, N-CAM, has developed a business strategy
under which AMERICAN WHOLEHEALTH NETWORKS (AWHN) will assume 50% ownership of
the presently-discount-oriented business. N-CAM's president and founder, ELIZABETH
MANZOLILLO, saluted the relationship as excellent for her rapidly expanding firm. Manzolillo will
continue to be in charge of managing relationships with the diverse firms in the network (12, plus
9 associates), while AWHN will focus on administrative support and credentialing, according to
AWHN CEO JAY MASON. Mason told THE INTEGRATOR that he views the move as part of his
firms ongoing effort to selectively consolidate the industry. Terms were not disclosed although
the parties suggested that each believed N-CAMs value with AWHNs skill-set at its disposal is
significantly higher than N-CAM alone. AWHN, for instance, has experience in taking risk and
managing diverse CAM services, while N-CAM has grown up in the discount environment.
AWHN already contracted with N-CAM. In related news, N-CAM announced that ALTERNATIVE
HEALTHCARE OPTIONS in North Carolina has joined the network as an affiliate. For N-CAM:
914-932-8000; for AWHN: 800-274-7526.
3
TWO ON MANDATES: FED BILL AND WASHING RULE
A.
Burton/Sanders Introduce Mandate for Federal Employees
In yet another instance in which the politics of CAM makes strange bed-fellows, Independent
Congressman Bernie Sanders (Independent - VT) and Dan Burton (R-IN), will soon introduce HB
2360 which, if passed, would require certain CAM services be covered for Federal Employees.
The bill is expected to be dropped into the House Government Reform Committee, which the
conservative Burton chairs. Sanders, whose political careers began as a socialist Mayor of
Burlington, Vermont, has had his staff working on the language and in consultation with diverse
parties for 4-6 weeks. Anticipated language of the short bill follows: To provide that benefits
under chapter 89 of title 5, United States Code, may be afforded for covered services provided by
a licensed or certified chiropractor, acupuncturist, massage therapist, naturopathic physician, or
midwife, without supervision or referral by another health practitioner. The bill makes changes in
related statutes. The team working on the bill is attempting to pull together cost data to support
the legislation.
B.
WASHINGTON STATE: HEARING ON EVERY CATEGORY RULES
The Washington state every category of provider mandate has been closely watched, potentially
as a model, by many individuals looking at other state and federal legislation. For instance, many
professionals who gained experience under the January 1, 1996, were consulted by the
congressional team on the federal employees bill noted above. Formal clarification of that historic
statute, which required all plans to include acupuncturists, naturopathic physicians, chiropractors
and massage practitioners, is presently underway. Washington state INSURANCE
COMMISSIONER DEBORAH SENN (D) has, following the US Supreme Courts rejection of a suit
by carriers to toss out the mandate, filed administrative rules. The key points are:
1) Carriers are prohibited from excluding entire categories of health care providers based upon a
finding that no service for the particular category is cost-effective or efficacious.
2) Health plans may contract reasonable limits on individual services so long as such limits are
consistent with the statute. Gatekeepers may be utilized as access to CAM providers.
3) Carriers may use restricted provider networks and are not required to include all providers in a
given category. [This is NOT an any willing provider statute. -- JW]
4) Carriers may not provide coverage solely as a separately priced optional benefit.
5) Clarification that the rules also apply to the states basic health plan (if services are insured
and can be cost-effectively performed by (a CAM provider), the CAM provider can not be
excluded from the provider network.
Finally, the proposed rule open an interesting discussion on scientific support, noting that carriers
can determine that particular ervices for particular conditions by particular categories of providers
are not cost-effective or lcinically eficacious. However, such decisions must follow normal rules.
[This may prove an opening into the can of worms regarding the extent of scientific and
effectiveness support for many conventinoal treatments. -- JW] For OIC: 360-664-3786.
4
AMA DELEGATES: GUIDELINES ON NUTRITIONAL SUPPLEMENT SALES
Sales of nutritional products represent significant (20% to 50%) revenues to most integrative
practices of CAM-oriented MDs, broad-scope chiropractors, naturopathic physicians Many view
these practices as quite vulnerable to the integration process. So the June 22 action of the AMA
HOUSE OF DELEGATES on the sale of health-related products was closely watched. Because
this issue is of interest to so many of you, the AMAs recommended guidelines, from its press
release on the subject, are printed below.
*** Physicians may distribute health-related products to their patients free of charge or at cost
(reasonable expenses of obtaining, storing and dispensing) in order to make useful products
readily available to their patients.
*** Except under certain circumstances, physicians should not sell a health-related good when
patients can obtain a product that offers the same medical benefit at a local pharmacy or healthproducts store.
*** Physicians must disclose fully the nature of their financial arrangement with a manufacturer
or supplier to sell health-related products. Disclosure includes informing patients of financial
interests as well as about the availability of the product or other equivalent products elsewhere.
Physicians should, upon request, provide patients with understandable literature that relies on
scientific standards in addressing the validity of the health-related goods.
The AMA release further states that the guidelines are designed to limit conflict of interests,
minimize the risk of brand endorsement, and ensure a focus on benefits to patients. The report
also recommends that health-related products should not be sold if the benefit claims lack
scientific validity. In addition, the reports recommends that physicians should not participate in
exclusive distributorships of health-related products (goods available only through physicians'
offices and for which there is no comparable alternative available at a local pharmacy or healthproducts store). A move to send the guidelines back for further study was defeated by just seven
votes among the 487 delegates. Contact: Ross Fraser, public information officer of the AMA, +1
312-464-4443; www.ama-assn.org.
5
WORKFORCE MAGAZINE PRESENTS CAM TO HR MANAGERS
WORKFORCE, a significant publication for human resources managers, offers a 12 page look at
CAM in its June issue (pages 88-100). The tone is quite positive. CAM is framed by writer
BRENDA PAIK SUNOO up front as something to be considered as employers constantly look for
ways they can reduce their long-term health costs and juice up their benefits to attract and retain
top talent. LIFECARE ASSURANCE, an 150 employees company which is profiled on its use of
the CONSENSUS/CALIFORNIA BLUE SHIELD discount program, reportedly is seeing reduced
absenteeism as the main benefit. (The reporter notes that absenteeism costs employers in the
US $50 billion a year and that an unscheduled absence survey found that 16 percent of
American workers took off time due to stress.) Maryland-based C3, headed up by MICHAEL
STEINBERG, MD, a CAM network which is part of N-CAM. received significant exposure.
Interesting, the local networks reach as part of N-CAM (30,000 providers nationwide) was
presented as a C3 network. On the issue of potential liability, the reporter promotes a
conservative line: Employers shouldnt advise employees to use (CAM) practices. HRs (Human
Resources) role is to disclose what benefits are available -- leaving all medical advise to the
practitioners. www.workforceonline.com
6.
CONFERENCE TURNOUT BRIEFS
There was good news/so-so news for sponsors of the CAMBRIDGE HEALTH RESOURCES
(CHR)-SOLUTIONS IN INTEGRATIVE MEDICINE two day event in early June which focused on
the practical strategies in developing CAM clinics. The $1200 event drew just 55 (so-so), but
according to a CHR report to speakers, the group who attended gave the meeting a very high, 4.7
(on a 5 scale) average rating from attendees ... Meantime, down south, the MEMORIAL
HERMANN program in conjunction with the UNIVERSITY OF TEXAS HEALTH SCIENCES (see
June 1999 feature on the system) drew significantly fewer than were anticipated, at 260 paid and
over 300 including speakers and exhibitors. Once again, according to MARY HELEN
MOROSCO, a program manager, the reports from attendees were very positive, Memorial is
planning a year 2000 event ... The three day, ambitious, mid-June integration intensive planned
for the Washington, DC are which was backed by conference firm AiC CONFERENCES was
scuttled for lack of attendance. AiC had drawn 75 to a two-day intensive in September of 1998,
held in Las Vegas. SUZANNE PEREIRA, the organizer for AiC Worldwide, is no longer with the
firm ... The single AMERICAN ASSOCIATION OF HEALTH PLANS session on CAM, held in a
late sunny San Francisco afternoon time slot on the third day of the conference drew poorly with
only some 40 people in attendance. All attendees and exhibitors felt that general attendance was
also down significantly, at probably not more than a thousand according to one insider, not
including exhibitors.
End
__________________________
THE INTEGRATOR
__________________
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847-864-0123
1
INSURANCE MOVE STIRS CONTROVERSY AT SUNY NY CAM PROGRAM
Controversy is storming around the integrative medicine program at STATE UNIVERSITY OF

NEW YORK AT STONY BROOK. The situation underlines the depths of anxiety provoked by
integrative departments. A May report in NEWSDAY, the Long Island newsletter which serves
the Sulfolk County home base of the medical school, in which program director and
INTEGRATOR advisor SAM BENJAMIN, MD, noted his plans to develop a network of providers
to offer an insured CAM benefit.
CLINIC PROFILE: JON KAISER WELLNESS CENTER
THE WELLNESS CENTER, a tenant of a CALIFORNIA PACIFIC MEDICAL CENTER in San
Franciscos Davies Campus is an integrative clinic run by internist Jon Kaiser, MD. Kaiser told
THE INTEGRATOR that his clinical focus is on integrative care for complex conditions. The
clinics
<< "....firm, according to JAY MASON (AWHN), president and N-CAM's founder, ELIZABETH
MANZOLILLO, will continue to be in charge of managing relationships with the diverse firms in
the...." >>
____________
CHICAGO (Reuters Health) - By the slimmest of margins, the American Medical Association
(AMA) voted Tuesday to put limits on the sale of health-related products in doctors' offices.
The AMA's house of delegates approved a report from its Council on Ethical and Judicial Affairs
that says doctors should either give patients such products for free or sell them at cost.
Additionally, the ethics watchdogs said that doctors should inform patients of any financial
interests that the doctor may have in the products.
A coalition of plastic surgeons, dermatologists and several large state delegations, including New
Jersey, sought to send the report back to the Council for rewriting, but the 487 delegates rejected
that move by just seven votes.
Several delegates said an emotional plea by former AMA president Dr. Robert E. McAfee of
Portland, Maine, carried the day. McAfee said the AMA is the guardian of ethics. "The code of
ethics is the only thing that separates us from a trade or a guild.... While more permissiveness on
this might be good business, it is not good medicine," he said.
Dr. Kathleen A. Weaver of Lake Oswego, Oregon, said the practice of physicians selling vitamins
and supplements in their offices in Oregon is so prevalent that she worries that "our
professionalism could be sold one bottle at a time."
In addition to approving the report on product sales, the delegates also adopted a Council report
that says physicians are ethically bound to assess patients' driving abilities and to report to the
Department of Motor Vehicles patients who are impaired and whose driving could endanger
others. The reports to DMV should be made after the physician has discussed the issue with the
patient and has informed the patient of the intent to make a report to the DMV, according to the
report.
ACCN AND UNITED HEALTHCARE

Four outcomes, Provider Report Form plus SF 12, all new and , unrelated problem, patients
ACCN recommends sending wi 3 days of evaluation, but no lateer than 30 days, to Tualitin, OR,
on CFA 1500
Some conditionds require co-management (caner, require presc. off the ND prescriptino authority
list
Established relationship with UHC physician for hospital admitting
Exclusion: applied kinesiology, Chelation therapy, clinical kinesiology, colonic therapy (may be
included with pre-auth), cytotoxic testing for food allergies, ELISA testing, hair analysis (except
heavy metal), iridology, gem therapy, live cell analysis, midwifery, RAST (specific cases yes)(,
Reams analysis, Saliva analysis (specific, yes), screening functional lab panels (with
documenhted), test ofr toxicity (with documentation), surrogate testing, therapeutic touch
Medical benefits waiver: for for non-covered (elective or mainte3nance caer is efined as a
servicde beyond HP benefit)
THE FORM, AND DEBAET OVER IT ...
Not covered; non-prescriptino sybstances

Payment code: 60 min comprehensive is $128, return at 45 is $90
Choice and Choice PlusDirect access ND program
Documented clinical necessity
Lab servies lijmited to Lab Corp and SmithKlpine
ACUPUNCTURISTS STRUGGLE ON ROLE FOR DETOX SPECIALISTS

Note: The following information is culled from a series of issues of Guidepoint: Acupuncture in
Recovery, an exceptional newsletter for individuals looking at hte role of CAM, and in particular
acupuncture, in addiction. $180,12 issues X 8 pages/issue. acudetox@aol.com.
An interesting viewpoint on CAM issues surrounding guild ownership of names, on advanced
empowerment of lay people as caregivers, and in self-care strategies is the evolving role of the
ADSes -- acupuncture detox specialists. The professional association representing licensed
acupuncturists, AMERICAN ASSOCIATION OF ORIENTAL MEDICINE (AAOM), prefers that
acupuncture be removed from the name and auricular detox specialists be used instead. This
name reflects the point on the ears which ADSes are trained to needle. ADSes become
certified in a short course led by a Registered Trainer and are not usually licensed to practice
acupuncture. They are certified to use the fivgfe ear points in the NADA protocol in a 70 hours
training program. One registered trainer who supervises a program, Claudia Voyles, states that
Sponsors to these courses recently include thge UNIVERISTY OT TEXAS (UT), through the
department of continuing edfucation department headed by Aileen Kishi, PhD, RN. (The UT
training cost a total of $339 and included 84 contact hours. (For Kishi: 512-322-9648.) The
NATIONAL ACUPUNCTURE DETOXIFICATION ASSOCIATION, the national organization
representing ADSes, pushes for exemptions to acupuncture practice acts, in California and
elsewhere. NADA states succinctly its view: If ADS training and practice is restricted to license
acupuncturists and physicians, very few treatments would be done cqand a great resource would
be lost. NADA promotes use of ADS USUAL COST OF TREATMENT. Readers of Guidepoint:
Acupuncture in Addiction, a monthly newsletter which does an excellent job of reporting this
issues, will note that the interest in empowering patients to be certified to deliver addition care is
extended to patients with other conditions. A story on some single case of provider-reported
success with auricular acupuncture techniques for attention deficit disorder, for instance,
promotes educating parents on how to use auricular treatments as home care for their children.
The AAOM, which has initiated a national media campaign to promote that the public not to
accept less than complete training in acupuncture and oriental medicine modalities -- a swipe
in both directions, as ADSes and MD-acupunctuyrists. use of acupuncture by licensed providers,
has not formal position on ADSes from its House of Delegates. The NATIONAL ACUPUNCTURE
AND ORIENTAL MEDICINE ALLIANCE, an advocacy organization for acupuncture of all kinds,
promotes ADSes, and views them as helpful to the advancement of the acupuncture profession.
The historica AAOM antagonism appears to have softened somewhat. According to AAOMs
executive vdirector David Malony, his gtroup is promoting neogtiaitonsd toward a national
consensus on standards. Notably, the detox progam began with founder Micaehl Smithg, MD,
working in Lincoln Hosptial in the Souht Bronx, who simply chose tio train addicts to do auricular
acupuncturi9rts on addicts. Said Smith, at a Februayr presentation at hte HEALTH CARE
FORUM meeting: This was the Souht Bronx. No one cared what we did.
WHOLE HEALTH EDUCATORS: NEW PERSONNEL TO COACH PATIENTS?
One strategy for filling gaps in whole person patient education given the time pressures in most
reimbursed medical practices is being promoted by the NEW ENGLAND SCHOOL OF WHOLE
HEALTH EDUCATION (NEWWHE). The school, licensed by the Department of Education of the
COMMONWEALTH OF MASSACHUSETTS, is a two year career training program which
includes a 250 hour internship. The schools mission espouses a philosophy of approaching
healthycaer from qa whole person oriented philosophy which is eductional, focused on disease
prevention and, to the extent possible, fully engages the participation of hte individual in their
health experience. Founder Georgianna Donadio adds that the goal is to create a model of
[patient edfuation basedo n unconditional presence and respectful listening which invitesd peiople
into hteir own healing and self0-management. NESWHE Whole Health Educators graduates
have been covered by a four of hte 12 Self Insured Trust Funds administered by MODERN
ASSISTANCE PROGRAMS, INC, a medical care management company based in Quincy. (617773-4288). The trusts include HOTEL AND RESTAURANT WORKERS LOCAL 26,
AUTOMOBILE WHOLESALERS ASSOCIATION OF NEW ENGLAND. The schoolk has
partnered with ALTANTICARE MEDICAL CENTER in Lynn, Massachusetts, to researhc the
outcomes of Whole Health Educators in cardiac rehabilitation. In another cololaboration, UNION
HOSPITAL, also in Lynn, is moving forward to establish a new department Whole Health
Education. The one-on-one model has a patient meeting in six sessions with a AWE. of Course
work for NESWHE program links nutrition, stress reduction and body-mind ideas. 617-247-0896
End
(Original Signature of Member)
106TH CONGRESS
1ST SESSION
H. R. ll
IN THE HOUSE OF REPRESENTATIVES
Mr. SANDERS (for himself and Mr. BURTON of Indiana) introduced the follow-ing
bill; which was referred to the Committee on
lllllllllllllll
A BILL
To provide that benefits under chapter 89 of title 5, United States Code, may be afforded for
covered services provided by a licensed or certified chiropractor, acupuncturist, massage
therapist, naturopathic physician,or midwife, without supervision or referral by another health
practitioner.
Be it enacted by the Senate and House of Representatives of the United States of America in
Congress assembled,
F:\M6\SANDER\SANDER.036
June 23, 1999 (1:18 p.m.)
2
H.L.C.
SECTION 1. HEALTH BENEFITS COVERAGE.
(a) IN GENERAL.Section 8902(k) of title 5, United
States Code, is amended by inserting chiropractor,
acupuncturist, massage therapist, naturopathic physician after nursing school administered
clinic, each place it appears, and by striking nurse midwife, each place it appears and
inserting nurse midwife or other midwife,.
(b) EFFECTIVE DATE.The amendments made by
subsection (a) shall apply with respect to contracts entered into or renewed on or after the date
of enactment of this Act.
F:\M6\SANDER\SANDER.036
June 23, 1999 (1:18 p.m.) >>
______________
________
AMA Sets Policy on Physician Sale of Health-Related Goods
CHICAGO, June 23 /PRNewswire/NEWSdesk -- The American Medical Association (AMA)
voted Tuesday to establish voluntary guidelines for physicians who sell
non-prescription, health-related products from their offices.

The report presented by the AMA's Council on Ethical and Judicial
Affairs, recommends that health-related products should not be sold if the
benefit claims lack scientific validity. The report also recommends that
physicians should not participate in exclusive distributorships of
health-related products (goods available only through physicians' offices and
for which there is no comparable alternative available at a local pharmacy or
health-products store).
The report recognizes the potential patient benefit of physicians being
able to provide health related products for their patients: "Making such items
as prenatal supplements, children's bicycle helmets, nicotine patches, and
sun-block available in a physician's office at cost may enhance patients'
access to such useful products, raise awareness as to their availability, and
reinforce the likelihood that patients will use them." The report recommends
the following guidelines that are designed to limit conflict of interests,
minimize the risk of brand endorsement, and ensure a focus on benefits to
patients:
Physicians may distribute health-related products to their patients free
of charge or at cost (reasonable expenses of obtaining, storing and
dispensing) in order to make useful products readily available to their
patients.
Except under certain circumstances, physicians should not sell a health related good when patients can obtain a product that offers the same
medical benefit at a local pharmacy or health-products store.
Physicians must disclose fully the nature of their financial arrangement
with a manufacturer or supplier to sell health-related products.
Disclosure includes informing patients of financial interests as well as
about the availability of the product or other equivalent products
elsewhere. Physicians should, upon request, provide patients with
understandable literature that relies on scientific standards in
addressing the validity of the health-related goods.
The AMA historically has opposed any practices that exploit patients.
These guidelines were adopted to preserve the AMA's role in promoting
professionalism and ethical standards.
SOURCE American Medical Association
Web site: http://www.ama-assn.org
CONTACT: Ross Fraser, Public Information Officer of the AMA, +1 312-464-4443
IN: HEA MTC >>
________________________
News File #23, July 2, 1999
1
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Major News: US Patent on CAM Coding Granted to Alternative Link

Clinic-Network Venture Tapestry Group Takes off in Boston Area
University of Minnesota in Graduate CAM Program, CAM Clinic
Resources (Minnesota Medicine, CAM in neck cancer patients)
THE INTEGRATOR
__________________
____________________
1
MAJOR DEVELOPMENT: US PATENT ON CAM CODING TO ALTERNATIVE LINK
A major, and what will likely be controversial step, has taken on June 22, 1999, when the US
PATENT AND TRADEMARK OFFICE issued to ALTERNATIVE LINK patent #5915241, Method
and System of Encoding and Processing Alternative Healthcare Provider Billing. According to
Alternative Link materials, the system includes of 4000 discrete codes to describe in
administrative billing cods what is said, done, ordered, prescribed or distributed from CAM
providers. JO MELINNA GIANNINI, is his name the patent is registers, the firms president,
contacted THE INTEGRATOR on July 1 with the news. The firm is requesting that several
companies have mistakenly infringed upon specific rights granted by the US patent, and urges
those who have developed CAM billing or coding information contact us. The coded procedures
include, but are not limited to, the following specialties: acupuncture, chiropractic, botanicals,.
holistic medicine, homeopathic medicines and homeopathy, massage therapy or bodywork,
midwifery, naturopathy and nursing procedures. The firms requests that they be contacted by
July 31, 1999, regarding a grace period to resolve infringement issues. Contact is Roger
Michener, JD, PhD (505-771-1728). Those wishing to read the patent can do so via westlaw.com
(download $65). Alternative Links business plan for the coding system, beyond securing the
patent, over the past two years has included: meeting al HIPAA and Y2K requirements;
establishing RVUs (relative value units) to codes; ensuring the codes fit into all Legacy billing
systems; cross-walking the codes to CPT, when applicable; linking codes electronically to stateby-state practice scopes; and linking codes to training requirements. Giannini states that the firms
products and systems to use the codes, via licensing agreements, are available. Differing levels
of products are available at different rates. Those wishing to obtain a copy of the codes, contact
INTEGRATIVE MEDICINE COMMUNICATIONS (617-641-2300). (Review of this patented
information is highly recommended for all involved in billing processes. I expect this to be a huge
development in the CAM field, and will look at in more detail -- including diverse responses -- in
the August-September issue. Please feel free to get back to me with your questions and
comments. -- JW)
2
TAPESTRY GROUP KICKS OFF CLINIC-NETWORK VENTURE IN NEW ENGLAND
MIKE SHOR, MPH, whose background includes experience as a managed care executive and
as a former ICU nurse, has shared with THE INTEGRATOR news that his firm successfully
secured venture funds in the low seven figures -- exactly what we intended -- to move
forward with a combined clinic-network project which has been in full-time development for the
past year. The first steps are two clinics will be officially opened within the next three months;
one is already in operation. SHOR states that his model is distinguished from some others by its
purposeful focus on collaborating closely with the conventional medical community. On that
line, MARTIN GELMAN, MD, head of GREATER BOSTON MEDICAL ASSOCIATES has signed
on as Tapestrys director of medical affairs. Active discussions are underway toward partnerships
with mainstream medical providers and systems. Intention is clear in at least one location:
directly across the street from ST. ELIZABETHS HOSPITAL, which has had a CAM interest
group. Shors team also includes acupuncturist JERRY KANTOR, LAc, the firms clinical director.
The clinical model includes acupuncturists, naturopathic physicians Shor anticipates that over
time upwards of 60% of the clinic business will be from referrals via medical doctors, managed
care and case managers. A strategy is under way to develop good cost data, via comparisons
with average cost data on certain conditions. Shor, whose last venture experience was with a
successful workers compensation firm, mentions that focal conditions might be low back,
migraine, carpal tunnel, as well as maternity services. Shor, and his team, have extensive
professional networks in the Boston area. Shor notes that the network, presently in development,
will eventually have up to 200 providers, is not a discount network, but one which will be based
on needed skill sets. States Shor: This is not a nice to have program but something which,
when used prudently, will make a difference to all players. The investor team includes private
individuals, fund investors and clinicians. Contact Irwin Mesch: 617-323-0900
3
U MINNESOTA IN GRAD CAM PROGRAM AND INTEGRATIVE CLINIC
A new graduate-level minor in complementary medicine, believed to be the nations first, will be
offered by the UNIVERSITY OF MINNESOTA. The 12 credit, three course program is being
spearheaded by MARY JO KREITZER, a long time CAM player who currently heads the schools
CENTER FOR SPIRITUALITY AND HEALING. The clinic, scheduled to open this August, will
offer diverse CAM therapies delivered by nurse practitioners, acupuncturists, nutritionists and
herbal therapists, will be housed on the 12th floor of RIVERSIDE HOSPITAL, according to an
article in the StarTribune (June 4, 1999) from which this information is abstracted. The clinic is
expected to have a significant research focus. This is the third Twin Cities hospital to offer
integrative services, following HENNEPIN FACULTY ASSOCIATES and HEALTHEAST. The
efforts are supported by FRANK CERRA, the head of the universitys academic health center,
and GREGORY PLOTNIKOFF, MD, an assistant professor of internal medicine and pediatrics.
Cerra, who noted that he knew of no opposition within the university, responded to antagonism
from JUDITH SHANK, MD, president of the state medical association, with: We dont have
evidenced based data for probably more than 30% of (conventional practices) but we do it
because its [accepted as] best practice. Plotnikoff is one of the lead authors in the MINNESOTA
MEDICINE feature issue noted below. [GET A PHONE FOR KREITZER ... MAY BE
SUBSCRIBER]
4
RESOURCES
A.
MINNESOTA MEDICINE MEDICINAL HERBS ISSUE
The May issue of MINNESOTA MEDICINE, the publication of the MINNESOTA MEDICAL
ASSOCIATION, features nine articles, covering nearly 50 pages, on diverse alternative medicine
topics, with a focus on herbs. Included are features on: legal aspects of alternative medicine, an
integrative study on hepatitis C, recommendations for an herb library, safety and quality issues,
indications and contraindications of top herbs, etc. The editorial line is refreshingly balanced.
Editor-in-chief, CHARLES MEYER, MD, quietly criticizes the antagonistic position toward CAM
taken by his counterparts at NEJM: There is scientific support for certain herbal medicines. In
many cases, lack of support (from conventional doctors) is a result of scientific medicine
prejudging and blindly dismissing herbal claims. And medical practitioners are deluding
themselves when they claim that they only prescribe remedies that are scientifically proven by the
hallowed standard of randomized studies. Single copies: $3.50. Call 612-378-1875, or email
mm@mnmed.org.
B.
CAM IN NECK CANCER PATIENTS
The spread of interest in CAM among different types of patients is underlined in a recent article
entitled Use of Alternative Medicine Among Patients with Head and Neck Cancer (Arch
Otolaryngol Head Neck Surg. 1999; 125:573-579, May 1999). The most often used products
were botanicals. Some findings on the 200 subject, interview survey based in Toronto:
Had used an CAM for any purpose
Used any CAM for their neck cancer
% whose use with cancer was first CAM use
CAM used as anti-cancer, perceived benefit
CAM used for symptomatic relief, perceived benefit
38.5%
22.5%
36.0%
44.0%
76.0%
End
INDUSTRY/HEALTH News File #23, July 2, 1999
______________________
News File #24, July 9. 1999
1
2
3
4
5
Kaiser Experience with Group Focused Services

ChiroSource expands PPO relationships
DoD: Pro and Con Views of Dietary Supplementation
Resources (tax and legal issues, acupuncture scopes of practice, Jonas book)
Short Notes (Triad/URAC, US Loans for Massage Training, AltLink feedback, plus)
THE INTEGRATOR
__________________
____________________
1
KAISER ON GROUP-FOCUSED SERVICES
The May Viewpoint in THE INTEGRATOR looked at the work of CHRIS FOLEY, MD, in delivering
integrative medicine through clinical services to a group of clients, rather than in the typical oneto-one clinical environment. GROUP PRACTICE JOURNAL has recently published a series of
articles which are excellent resources for any integrative clinic -- or even CAM networks -offering integrative services. KAISER PERMANENTE San Joses leader on the project,
EDWARD NOFFSINGER, PHD, calls the groups DROP-IN GROUP MEDICAL APPOINTMENTS
(DIGMAs -- an acronym rivaled only by CAM for being inappropriate in describing a service).
The June issue provides a series of testimonials from an array of Kaiser specialists (nephrologist,
endocrinologist, oncologist, family practice, etc.) using one or two DIGMAs per month is a good
starting place. Non-quantified outcomes of these testimonials: increased patient satisfaction,
increased provider satisfaction with practicing medicine, better patient compliance, fewer crises,
diminished use of office calls, increased patient empowerment, etc. The candid perspectives of
these physicians, many of whom note originally resisting the idea, offer a high level of clinical
excitement about this alternative delivery method unusual from physicians these days. Exciting
stuff with intriguing applications in the CAM arena. Some challenges could be expected in
moving this outside the staff model HMNO environment. The January through April issues of the
monthly also ran related articles. Copies are available through 703-838-0033, ext. 326.
2
CHIROSERVICES RAISES PROFILE; COMMENTS ON CHIRO USE
Clayton, California-based CHIROSOURCE, INC., founded in May of 1997, has recently

announced a series of new contracts and relationships with other limited service MCOs,
according to a June 8 release. The chiropractic network has expanded its relationship with the
Scottsdale, Arizona, PPO HEALTHSTAR, and now provides services in AZ, AR, KS, LA, NV,
NM, OK, TX, and CO. ChiroSource also linked recently with Dallas-Texas based CAREington
INTERNATIONAL. On the Eastern seaboard, the firm locked up agreements with King of
Prussia, PA-based DEVON HEALTH SERVICES, INC., and its Washington, DC-based affiliate
ULLICARE, to provide PPO services to those firms 2 million members in DE, MD, NJ, NY, OH
and PA. The chiropractic network, headed up by RON CATALDO, president, and TODD
CATALDO, vice president, has also linked with Santa Cruz-based CAM network ALTERNANET
(Andy Miller at 831-375-9343) for broader CAM services. TODD CATALDO told THE
INTEGRATOR that the two firms are linked in a CAM benefit covered by the CITY OF SANTA
CRUZ. The Santa Cruz benefit is extremely broad, and includes some vitamins, herbs,
naturopathy and massage, according to Cataldo. Cataldo said ChiroSource has decided at this
time to not build other CAM networks internally, preferring to stick to their area of expertise.
ChiroSource has a floating fee schedule with the high end for a brief office call $42, and an
adjustment at $25. Additional therapies, up to two per visits, are priced at $10 each. Cataldo
noted that a survey of a teacher group served by his firm found that 34% used chiropractic in a
given year, a very high utilization rate. (Eisenberg found 11% of all consumers used chiropractic
in his 1997 data.) Cataldo observed that, in doing some recent credentialing in Massachusetts,
his firm recently found that treatment patterns were excessive compared to other areas of the
country. 925-672-5333
3
DEPARTMENT OF DEFENSE AND NUTRITIONAL SUPPLEMENTS
A DEPARTMENT OF DEFENSE research project has shown, to the ARMYs satisfaction, that
soldiers with a liquid dietary supplement which adds calories to his or her diet performs better
than soldiers without. The Army may be making an energy rich bar and drink available at many
Army bases and could be added to future rations. The focus is on adding calories. Researchers
in Natick, Massachusetts, are also looking at the possibilities of a caffeine supplement and the
amino acid creatine. Vote is out. Army researchers are advising against use of certain
supplements until there is future research. On this list are; Ephedrine, Ginseng, Gingko biloba
and Andostenedione. Contact is HARRIS R. LIEBERMAN, deputy chief of military nutrition and
biochemistry the US ARMY RESEARCH INSTITUTE OF ENVIRONMENTAL MEDICINE, in
Natick.
4
RESOURCES
A.
TAX AND LEGAL ISSUES IN EMPLOYER CAM COVERAGE
Vol. 25, #1 of EMPLOYEE LAW RELATIONS JOURNAL includes an article (pages 131-138) by
ELIZABETH RUTHERFORD, an attorney in Seattles offices of WILLIAM M. MERCER, on some
of the technical tax and legal issues in CAM coverage. Rutherford, contacted by THE
INTEGRATOR, states that coverage of botanicals and vitamins will not be tax exempt, since the
products -- like aspirin, which falls in the same category -- are readily available through
sources other than by prescription from a conventional physician. Asked if this applied to
physician-only supplement lines, Rutherford said that she assumed the definition of prescription
would mean controlled substance. Rutherford takes the position that covered CAM services
under ERISA must meet US DEPARTMENT OF LABOR guidelines on quality of services. On
cost, she alludes to an unnamed colleague who says his unnamed clients experience has been
that the costs have been complementary (add-on). These themes were explored in the April
issue of THE INTEGRATOR. For Rutherford: 206-292-7000.
B.
BRIEF LIST OF ACUPUNCTURE IN PROFESSIONAL SCOPES OF PRACTICE
A brief synopsis of the status of state licensure for acupuncture, including whether or not
acupuncture is in the scope of MD, DC, and ND practices, is in the July issue of ALTERNATIVE
THERAPIES IN HEALTH AND MEDICINE. The authors, ROBIN LEAKE, MA, and JOAN
BRODERICK, PHD, from the SUNY STONY BROOK CAM program headed up by SAM
BENJAMIN, capture this, including number of hours, if any, needed for the other professions, in a
one page chart. Acupuncture is in the scope of practice of the other professions a follows:
***
***
***
Chiropractic -- 21 states, more training required 16, range 50-400 hours

Medical Doctor -- 43 states, more training required in 11, range 100-300 hours
Naturopath -- 6 states (of 11 total license), more training 2, hours not listed
The typical, specialized training for a licensed acupuncturist in one of the 30+ accredited
programs involves 1750 hours, with an additional 450 if training extended to Oriental medicine
(botanicals, etc.). A more thorough report, as noted in an earlier News File, is the updated
Acupuncture Laws text by BARBARA MITCHELL, LAc, JD, executive director of the NATIONAL
ACUPUNCTURE ALLIANCE. Mitchell told THE INTEGRATOR that this volume also includes
such insurance mandates as may exist. For Alternative Therapies: 800-899-1712. For Mitchell:
253-851-6896.
C.
WAYNE JONAS CAM BOOK VIA LIPPINCOTT WILLIAMS AND WILKINS OUT
A CAM essentials book edited by WAYNE JONAS, MD, former director of the NIH (then) OFFICE
OF ALTERNATIVE MEDICINE has just come out from LIPPINCOTT WILLIAMS AND WILKINS.
Jonas e-mailed a number of individuals about the publication, a slimmed down version of an
edited Textbook of Complementary and Alternative Medicine which was originally planned nad on
which Jonas has worked since 1996. Jonas told THE INTEGRATOR that LWW plans to move on
the larger version again later this year. In a note, Jonas stated that the book is specifically
designed for conventional health care practitioners and training programs.
4
SHORT NOTES
Some services of chiropractic network TRIAD have been granted accreditation status with URAC.
The release has not come out from URAC, but the approved language is: URAC accredited full
network 3.0 standards with credentialing ... AMERICAN WHOLEHEALTH NETWORKS has
formally announced the opening of its California office, and the firms plan to seek Knox-Keene
licensure as a California health plan ... Two responses on the ALTERNATIVE LINK CAM
coding patent noted in News File #23: one was that Alternative Link better have DEEP pocket
for lawsuits, and a second, from a firm which had their own lawyer independently analyze the
patent, that the patent appears to be very broad and apply to anyone using codes. As noted,
the August-September INTEGRATOR will explore this in detail. Any of your research and
comments would be useful ... KMS ASSOCIATES, the CAM SEARCH people, are partnering
with THE TIBER GROUP for a lengthy CAM program at the March 2000 AMERICAN COLLEGE
OF HEALTHCARE EXECUTIVES meeting ... The reportedly first ever accredited college to
offer an Associate of Science degree in massage therapy will is the WESTERN INSTITUTE OF
SCIENCE AND HEALTH, according to a release from the Rohnert park, California, institution.
Students will have access to Title IV federal student aid. MARY HASTINGS, CMT, MA is heading
up the program. The school also offers accredited PT assistant and OT assistant programs. (707664-9267), westerni.org ... A June issue of NATURAL BUSINESS, a natural products industry
publication, reported that its index of 69 publicly traded natural businesses was up for the first
time since August of 1998 when the newsletter index lost 30%. The cited analysts linked the
upswing to a correction, and some optimism for these stock. Botanical and dietary supplements
were up 10% ...
End
INDUSTRY/HEALTH News File #24 July 9, 1999
__________________________
1
2
3
4
Contracts (Landmark/MVP, N-CAM -- 3 more)

NCCAM in 2 ND Appointees
Conferences (Nutracon, Ornish/NMHCC, Arizona/Duke, Group Health, plus)
Miscellaneous (Maurer/Crossroads, Hammerly/CHI, Tomusk)
THE INTEGRATOR
__________________
____________________
1.
A
CONTRACTS
.LANDMARK./MVP CHIRO DEAL FOLLOWING VERMONT MANDATE
In mud-July, LANDMARK HEALTHCARE announced a final agreement with MVP HEALTH PLAN
under which Landmark will provide chiropractic services to MVPs 315,000 members in New York
and Vermont. The release noted that in Vermont the general assembly recently passed a bill
requiring HEALTH insurance plans to provider COVERAGE for clinically necessary health care
services provided by chiropractors. Compliance begins October 1, 2000, but MVP has pushed
the schedule forward to Octobger 1, 1999. (The mandate follows a January 1, 19998 New York
law.) Landmark, which served only 3.8 million members as of the interview 10 months ago for the
1998 INTEGRATOR CAM Network Executive Survey, is currently claiming 10 million members
through managed care and other innovative, transitional benefit designs. The release
mentioned no other CAM services. Amy Ertel Bellcourt at MVP (800-777-4793) or Jana Saastad
at Landmark (916-569-3326),
B.
N-CAM ADDS TWO NEW CLIENTS
N-CAM, the national network of networks (featured in the July INTEGRATOR) has added two
new clients: Diversified Group Brokerage, a National TPA serving self-funded employers which is
based in Marlborough, Connecticut, and HEALTHCARE MEDICAL SOLUTIONS, a Gandview,
Missouri firm which specializes in wholesale discounted products. For N-CAM: 914-932-8000.
C.
KING COUNTY/WASHINGTON
A March 10, 1998, action of the KING COUNTY COUNCIL (Seattle, WA) required that the county
executive submit a plan for adding more alternative medicine to the governments employee
benefits package. The policy stated that the county shall facilitate the easier availability by
County employees of natural and alternative medicine options. The move was pushed by
Councilmember Kent Pullen (R-South King County) at 206-296-1009.
2
NIH NCCAM APPOINTMENTS: TWO NATUROPATHIC PHYSICIANS
A notice to THE INTEGRATOR from the AMERICAN ASSOCIATION OF NATUROPATHIC

PHYSICIANS (AANP) announced that of 6 new appointees to the NIHs NATIONAL CENTER
FOR COMPLEMENTARY AND ALTERNATIVE MEDICINE (NCCAM) advisory panel were two
naturopathic physicians: LEANNA STANDISH, PHD, ND, and KONRAD KAIL, PA, ND. The
action to expand the advisory body grew out of the late 1998 legislation which transformed the
OAM into a full-fledged center. The legislation also required higher representation of the distinct
CAM professions as advisors. Standish, co-director of the BASTYR UNIVERSITY research
department was an appointee to the NIHs original ad hoc advisory committee, but no
naturopathic physicians had ever been asked to serve on the formal committee. Kail, with 15+
years of clinical experience, has held numerous leadership positions in the naturopathic
profession, including the presidency and research chair for the AANP. He maintains a busy
clinical practice in Phoenix, Arizona. The NIH has until these appointments preferred MDs who
have CAM interests to those providers who are distinctly trained. The AANPs executive director
SHEILA QUINN and Bastyrs associate dean for naturopathic medicine, PAMELA SNIDER, ND,
were instrumental in placing language in the 1998 law which requires the distinct professions to
be included. THE INTEGRATOR has not, at this time, names of the other appointees. For AANP:
206-298-0126.
3
CONFERENCES
A.
NUTRACON: BRIEF REVIEW
The annual July NUTRACON conference, promoted by GLOBAL BUSINESS RESEARCH, is

emerging as the leading meeting group of the now very diverse parties involved in the
nutraceutical industry. The roughly 750 attendees (@ $1250 each) to the three day meeting
included a mix of nutritional products firms, pharmaceutical companies, venture capital,
academic, nutritional food interests, and etc. A show of hands at a keynote given by TOM
AARTS, publisher of San Diego-based NUTRITION BUSINESS JOURNAL (NBJ - $795/yr) -- the
leading publication for that industry sector -- suggested that less than half of those present were
from the historic natural products industry. Among the track sponsors was HEALTH BUSINESS
PARTNERS, a venture and mergers-and-acquisitions firm out of Rhode Island which targets the
CAM industry. The high attendance level is interesting, particularly relative to the struggles in
conferences targeting the service side of CAM integration. (The most recent similarly priced event
on the services side, sponsored by AiC CONFERENCES, was canceled for lack of interest.)
Reasons may be: greater maturation of the integration process in the products arena, high dollars
at stake, very high levels of consumer interest and use. For Nutracon: 800-868-7188
B.
NMHCC: ORNISH TO BE FEATURED
DEAN ORNISH, MD, will be providing the opening keynotes for the NMHCC meeting October 1720 in Los Angeles. His topic will be Alternative Medicine and Practices: Creating new Models of
care to get to the Heart of the Matter. 8:30 AM -- 9:45 AM. A seven session CAM track follows.
888-882-2500
C.
NIH/AANP/OFFICE OF DIETARY SUPPLEMENTS
August 22-24, 1999. Three day focus on CAM for chronic liver disease. Lead sponsor is the
National Institute of Diabetes and Digestive and Kidney Diseases, also co-sponsored by Mixed
group of top-flight presenters. NIDDK CAM Workshop: 301-493-9674
D.
DUKE/ U ARIZONA SCHOOL OF MEDICINE
October 7-9, 1999. Research Triangle Park, North Carolina. Integrative Medicine: Experience ,
Science and Clinical Practice 15.54 hours, category 1 CME. INTEGRATOR advisor ANDREW
WEILs program is co-sponsoring with Duke. Fax 520-626-6484 for more information.
E.
GROUP HEALTH COOPERATIVE OF PUGET SOUND
October 29, 1999, Seattle. GHC is holding its (nearly annual one day CAM event on October
29, 1999. Speakers include: LAURA PATON, MD, researcher DAN CHERKIN, PHD, individuals
providers on the key disciplines, plus ALAN GABY, MD on nutritional medicine, LISA ALSHULER,
ND on botanicals and TORY HUDSON, ND, on menopausal support. Clinical focus. DoubleTree
Hotel at the Sea-Tac airport. $150. 206-326-3934.
F.
MEDICAL DATA INTERNATIONAL/TIBER GROUP
August 30-31, 1999. Chicago, Il. A July 8 PR Newswire from MEDICAL DATA INTERNATIONAL
(Santa Ana, California) announced the their 4th annual conference on Growth Strategies and
Business Opportunities in a Global marketplace. The release noted CAM as a top trend in the
marketplace. LISA ROLFE, a vice president with THE TIBER GROUP in Chicago will be
presenting on CAM. Most of the conference is mainstream medical issues. $1195. 800-8265759
4.
MISCELLANEOUS
A. ROY MAURER with CROSSROADS ALTERNATIVE CARE has re-positioned his firm as a
broker and consultant to health plans, rather than as a provider of strictly network services.
Maurer anticipates serving health plans in such areas as product development, vendor selection,
and ongoing oversight. Maurer and his partner MICHELLE KOSSEY each have over 10 years in
group health insurance. 215-997-2835
B. MILT HAMMERLY, MD, who had a part-time position as director of CAM with CENTURA
HEALTH, in Colorado, will hold a similar role for CATHOLIC HEALTH INITIATIVES beginning in
August. Centura is part of the CHI network of health systems and Hammerly had previously
served on the CHI national workgroup. Hammerlys position will include helping coordinate CHIs
national efforts in the area, and working with CHIs internal Resource Group on focused clinical
use of CAM. Hammerly told THE INTEGRATOR that he anticipates looking at CAMs role in
lowering average cost of specific DRGs (303-778-5818).
C. ALISON TOMUSK, PHD, who headed up the COMMUNITY HOSPITALS OF INDIANAPOLIS
CAM integrative clinic is no longer with the operation. According to a source close to this
operation, the issue was budget related. The clinic is still in operation, with JOHN BLACK, MD,
who has always been the core clinician, in the lead role.
`
End
____________________________
1
2
3
4
5
6.
7
8
Consortium of CAM Medical Schools Meets/Fetzer Backed

CHP: Providence PPO, Massage and Practitioner Webpages
Alternative Link Creates 501c3 for Coding Terminology Control
NIH CAM Advisory Panel Initiated
Deaconess: CAM Consults with England Via Fax
Freeman in Key CAM Roles in Alaska
Two from U Arizona (Mini-conference report, personnel changes)
Publications: Springer Publishing CAM LIne
THE INTEGRATOR
__________________
____________________
1
FETZER SPONSORS CONSORTIUM OF CAM MEDICAL SCHOOLS
The Kalamazoo, Michigan-based FETZER INSTITUTE, is sponsoring a seminal meeting this

week-end of a new consortium of medical schools with CAM programs. The development was
noted by TRACY GAUDET, MD, executive director of the PROGRAM IN INTEGRATIVE
MEDICINE at the UNIVERSITY OF ARIZONA. The Arizona program, founded by ANDREW
WEIL, MD, is among those participating. Leadership on the meeting was provided by JON
KABAT ZINN, PHD, with the program at the UNIVERSITY OF MASSACHUSETTS. Other
programs invited to participate in this founding gathering were those at HARVARD, UCSF,
STANFORD, DUKE, MARYLAND and MINNESOTA. Fetzer provided airfare and location, which
Gaudet called intentionally neutral ground. Each institution is represented by two program
people plus a power person who is critical for the programs efforts to win support within the
broader institution. The intention, stated Gaudet, is to come together and work in a collaborative
way to shift things in medical education. Fetzer has become known for its strategic investments
in the integrative process, including support of the influential 1993 BILL MOYERS special on
PBS, and the CME program led by DAVID EISENBERG, MD, at Harvard.
CHP: PPO, MASSAGE, PRACTITIONER WEBPAGES
The summer edition of Portland, Oregon-based COMPLEMENTARY HEALTH CARE PLANS

(CHP) has been selected by PROVIDENCE PREFERRED (formerly VANTAGE PPO) as its
partner in offering alternative care riders to its contracted insurance plans. Providence PPO
clients, which include CIGNA, PACIFIC HERITAGE ASSURANCE, AETNA HEALTH PLANS,
ODS and others, suggest that CHPs reach into the Oregon market may expand considerably,
should these insurers choose to offer CAM products. CHP already contracts with Providence on
its HMO product. In other CHP news, the network has begun credentialing massage therapists.
As of January 1, 2000, the firms ChiroNet (DC) and NaturNet (ND) providers will be required to
refer CHP clients to credentialed massage therapists. In addition, CHP is developing a program
in which webpages for practitioners can be developed and maintained. Price to the practitioner is
listed at $50 to $200 per year annually. 503-203-8333
3
ALTERNATIVE LINK FORMS 501C3 FOR CAM CODING TERMINOLOGY
In a Byzantine world of coding, a new. obscure not for profit has recently be established:
INSTITUTE FOR COMPLEMENTARY AND ALTERNATIVE NOMENCLATURE (ICAN). Yes You
Can Can has long been part of the strategy of ALTERNATIVE LINK, the Albuquerque based firm
which recently secured a patent for a CAM coding system, founder MELINNA GIANNINI recently
told THE INTEGRATOR. Although terminology development is part of the patent, we are
donating it to that side, Giannini stated, explaining: We want it outside us, a provider driven,
living document. Terminology is the description of what each code means. Alternative Link
worked with BETSY LEHRFELD of the SWANKIN AND TURNER firm in Washington, DC, to
develop the organization. Lehrfeld and JIM TURNER, a long-time activist attorney with the
acupuncture profession and a member of the board of the NATIONAL ACUPUNCTURE
ALLIANCE are temporarily serving as the officers of the 501(c)3 organization. JUDY LEE, MBA,
who has been working as director of research with Alternative Link is expected to leave the firm to
become Interim Executive Director for the non-for-profit, according to Giannini. Alternative Link
has committed 3% of its revenues to support of the foundation. ICAN is expected to be
operational in three months. For Lee: JUDYL2001@aol.com.
4
NIH CAM-CANCER ADVISORY GROUP ESTABLISHED
A CANCER ADVISORY PANEL ON COMPLEMENTARY AND ALTERNATIVE MEDICINE

(CAPCAM) has been established within the NATIONAL INSTITUTES OF HEALTH as a joint
initiative of the NATIONAL CENTER FOR COMPLEMENTARY AND ALTERNATIVE MEDICINE
and the NATIONAL CANCER INSTITUTE. The panel represents a vital step toward rigorously
evaluating the efficacy and safety of various CAM cancer therapies, according to NCCAM acting
director WILLIAM HARLAN, MD. The first meeting was held July 8-9. Chair is ERNST
WYNDER, MD, president and medical director of the AMERICAN HEALTH FOUNDATION in
New York City, and policy advisory committee member for the AMERICAN CANCER SOCIETY.
The initial 15 member includes MDs, PHDs, and RN, and a light sprinkling of representatives of
the distinct CAM professions. For meeting information: 301-594-2013 or nccam.nin.gov
5
FREEMAN TAKES KEY CAM POSITION WITH ALASKA GROUPS
LIZ FREEMAN, PHD, an author, educator and mind-body researcher, is to become the head of a
new INSTITUTE OF COMPLEMENTARY MEDICINE associated with the UNIVERSITY OF
ALASKA, Anchorage. Freeman, whose COMPREHENSIVE TEXT OF COMPLEMENTARY
MEDICINES AND ALTERNATIVE THERAPIES will soon be published by MOSBY, will also be
part of the TRADITIONAL HEALING ADVISORY COUNCIL which is associated with the
outpatient wing of the ALASKA NATIVE MEDICAL CENTER, also in Anchorage. In the later role,
Freeman will pull together scientific information available on the top 50 herbs in use for Alaska
Natives. The ALASKA NATIVE HOSPITAL has taken on the unusual task of certifying tribal
doctors to work with Western physicians. An elders council is making the decisions, Freeman
explained to THE INTEGRATOR. She noted that her colleague, RITA BLUMENSTEIN, is the first
to have gained certification. Freeman was among the CAM Track speakers at the spring meeting
of the NATIONAL MANAGED HEALTH CARE CONGRESS.
6
DEACONESS LINKS MDS TO NDS VIA FAX
According to MARY BETH DAVIS, RN, who heads up CAM exploration for DEACONESS
HEALTHCARE, some physicians in her Southern Indiana region are integrative CAM via fax to
and from a CAM clinical services in England. The clinical resource reviews records and makes
suggestions for lab and treatment, which are then faxed back to the States. The providers are
reportedly happy with the process. Southern Indiana is a region with few CAM resources. For
Davis, who is an INTEGRATOR advisor: 812-463-7160
7
A.
TWO FROM U ARIZONA PROGRAM IN INTEGRATIVE MEDICINE

U ARIZONA VIDEO CONFERENCE: EIGHT SYSTEMS LINK
A July 28th three hour mini-conference last week on integrative medicine offered for CME credit
through the UNIVERSITY OF ARIZONA PROGRAM IN INTEGRATIVE MEDICINE attracted eight
satellite sites. Roughly 100 individuals were on hand at the auditorium in the University Hospital.
Among organizations sponsoring sites were AURORA HEALTHCARE (WI), BETH ISRAEL
HOSPITAL (NY), CUMBERLAND CENTER FOR NATURAL HEALTH (PA), CENTER FOR THE
STUDY OF CAM/UNIVERSITY OF VIRGINIA (VA), ST. JOSEPH HEALTH SYSTEM (CA),
INNER HARMONY WELLNESS CENTER, GREENWICH HOSPITAL (CT), and RIVERSIDE
HEALTH SYSTEM (VA). Presenters includes ANDREW WEIL, MD, Tracy Gaudet, MD, RUSS
GREENFIELD, MD, a graduate of the first Fellows class who is staying on with the program, and
guest JOHN WEEKS, INTEGRATOR editor. 520-626-7222
B.
PERSONNEL CHANGES
Personnel changes at PROGRAM IN INTEGRATIVE MEDICINE at the UNIVERSITY OF

ARIZONA: RICHARD LIEBOWITZ, MD, has taken the new position of medical director for the
Program. Liebowitz, an internist, comes to the program with blue chip credibility within the
medical center, having held a number of leadership positions on the conventional side. TRACY
GAUDET, MD, remains on as executive director. SUE FLEISHMAN, a long-time associate of
program founder ANDREW WEIL, MD, who played a leadership role in creating and/or
developing the programs on-site and distance learning educational programs has left the
program and is on a sabbatical looking into her next steps in integrative medicine. Some of her
responsibilities in coordinating programs are being assumed by LINDA JOYCE, a newcomer to
the PIM team. Russ Greenfield, MD, is also staying on with the program, where he is also
involved in developing a consulting group. PHONE: 520-626-7222
8
PUBLICATIONS: SPRINGER PUBLISHING EXPANDS CAM LINE
A peer reviewed journal entitled ALTERNATIVE HEALTH PRACTITIONER: THE JOURNAL OF

COMPLEMENTARY AND INTEGRATIVE HEALTH CARE is published three times each year by
SPRINGER PUBLISHING COMPANY (NY) and is currently in its 5th volume. The editor is RENA
GORDON, PHD, with ARIZONA STATE UNIVERSITY EAST ACADEMIC CENTER. Springers
other related publications include a volume on CAM therapy in nursing, and A TOTAL
WELLNESS PROGRAM FOR WOMEN OVER 30 which is subtitled: Comprehensive Manual

with Medical Guidelines for Health Care Professionals. For Gordon: 480-727-1515. For
Springer: 212-431-4370.
End
____________________________
News File #27, August 6, 1999
1
2
3
4
5
Pew Commission: Plans, Systems Urged to Use Midwives

Year 2000 CAM Benefits Watch (United, Independence Blues, Texas/Illinois Blues)
Shakeout in N-CAM: 1/2 of Network Partners Exit
Federal Legislation in Process (Veterans/Chiros, Food Stamps/Dietary Supplements)
Conferences (U PA/Academics & CAM, Stanford-Harvard seeks sponsors)
THE INTEGRATOR
__________________
____________________
1
MIDWIFERY GIVEN STRONG THUMBS UP BY PEW COMMISSION
A 1998 TASK FORCE ON MIDWIFERY convened by the PEW HEALTH PROFESSIONS

COMMISSION and the CENTER FOR HEALTH PROFESSIONS and UNIVERSITY OF
CALIFORNIA SAN FRANCISCO recently endorsed midwifery as an essential element of
comprehensive health care for women and their families that should be embraced by, and
incorporated into, the health care system and made available to all women. The 14
recommendations of the multi-disciplinary Task Force include: state legislation granting
independence to midwives (removing them from supervision, allowing them to own or co-own
practices); Medicaid coverage; HMO inclusion and coverage; and a variety of specific research
topics. The report alludes to the distinctions between nurse midwives, who generally have
hospital based practices, and direct entry European style midwives, who in the US frequently
provide home birth services. However, the issue of home birth -- not only thinking but delivering
out of the box -- is not specifically mentions. For a full report: 415-476-8181 or
futurehealth.ucsf.edu
2
A.
Y2K CAM BENEFITS WATCH: UNITED, BLUES PLANS NEARING DECISIONS

UNC EXPECTED TO ANNOUNCE CAM SELECTION BY AUGUST 31
UNITED HEALTHCARE, the national HMO, is expected to announce its selection(s) of outside
contractors for CAM services by August 31, according to JACKIE DORNFELD, director of
UNITEDHEALTH NETWORKS. Vendor selection on the firms 15 million covered lives was to
have been finalized by July 31, but was held up for a variety of reasons including the complexity
of the decision internally, the amount of information from the 13 firms which responded to the
RFP, and vacations of key decision makers, Dornfeld told THE INTEGRATOR. UNCs list of
potential vendors began with [THE INTEGRATOR] list in the 1998 CAM Network Executive
Survey (Dec-Jan, 98-99), stated Dornfeld, but also included a couple firms which independently
contacted the HMO. The RFP made clear that firms may be selected for a part of UNCs service
area, or for just one or more CAM specialty service (discount, standard benefit, supplemental
rider, plus retail products such as health catalogs, information, websites, etc.) The firm reportedly
asked respondents if they view CAM as an addition to or a replacement for conventional services.
Some companies have wondered whether UNC was using the RFP process as mere fact-finding
about the industry and may choose to take some services in-house. Asked if AMERICAN
WHOLE HEALTH NETWORKS had a leg-up on the competition based on a stake which
VALIDUS, the firms investment arm had made in AWH in 1998, Dornfeld replied: Weve felt that
with the distance between (the investment firm) and us -- management is separate from the
business segments -- its not necessarily something that necessarily factors into the equation.
Validus, stated Dornfeld, is also known as UNITEDHEALTH CAPITAL, which provides start-up
and venture money in early stage, health related firms.
B.
BLUE CROSS OF ILLINOIS AND TEXAS CLOSE ON CAM NETWORK SELECTION
A spokesman with corporate consulting inside BLUE CROSS BLUE SHIELD OF TEXAS told THE
INTEGRATOR on August 4 that this firm is presently looking over the financials of possible
vendors for what is expected to be an affinity CAM product. BCBS Texas is owned by HCSA -Health Care Services Corporation -- which also owns BLUE CROSS OF ILLINOIS. The
selected network will also serve the Illinois firm. MARIE STECKBECK is heading up the decision
process. 972-766-6904
C.
INDEPENDENCE BLUES IN SELECTION PROCESS
INDEPENDENCE BLUE CROSS is nearing selection of its network partner on a CAM

affinity/discount product for its 4 million members in its tri-state (PA/NJ/Del) service area.
SUSANNE FORD is heading up the exploration states that the firm has been evaluating buy
versus build strategies following a move two years ago in which an uncredentialed directory of
acupuncturists, massage therapists and nutritionists was developed in-house. The Blues plan had
developed the directory by simply mailing out letters to providers who agreed to discounts of up
to 40%. Ford said that the firm plans to buy the services of an outside firm, but that the
decision will ultimately be made in the context of its year 2000 budget. The insurer has 70% of
the tri-state market around Philadelphia (1 million HMO lives, 1 million PPO and 4 million total
lives). The Blues plans are part of AMERIHEALTH, which also operates in the Virgin islands,
Puerto Rico, Jamaica and certain areas of Florida and Texas. 610-225-9543
SIDE-NOTE ON DISCOUNT PROGRAMS: A brief article in MANAGED CARE OVERVIEW, a
publication of the NATIONAL CHIROPRACTIC MUTUAL INSURANCE COMPANY refers to
largely meaningless discount programs on alternative medicine as the CAM scam.
3.
SHAKE-OUT WITHIN N-CAM: 1/2 OF PARTNERS EXIT
N-CAM, the national network of networks which has been reported in the News Files and in the
July INTEGRATOR is in a process of significant reformation. The move grew out of a re-focusing
of the organization following purchase of a 50% stake in the firm by AMERICAN WHOLEHEALTH
NETWORKS. A weekend meeting of network partners at AWHN headquarters in late July
immediately precipitated the shuffling of memberships. Those terminated or removing affiliation
tend to be firms with either significant managed care experience or networks which are least
invested in managed care standards. AWHN CEO JAY MASON indicated that the reason for the
reshuffling related to unwillingness of some partners to agree to N-CAMs plans, adding:
"There's fallout on both sides of the spectrum." Leaving are: COMPLEMENTARY
HEALTHCARE PLANS, COMPREHENSIVE HEALTH GROUP, INTEGRATED HEALTH PLAN,
OPTIMUM HEALTH SERVICES, WELLNESS USA. Status is not yet clear with COMMONWELL.
The top issues of concern were a combination of business requirements including credentialing,
network expansion and marketing, AWHN president RAY SEAVER told THE INTEGRATOR.
Other issues noted by different parties were competitive concerns of some partners, as well as
concerns about N-CAM management structures. Some of the firms affiliates are likely to step up
into partner position. AWHN's JAY MASON says that the organization is setting up work groups
on governance, pricing and contracts. Decisions by these groups will create guidelines for
bringing in new network members. ELIZABETH MANZOLILLO, N-CAMs founder comments that
the developments are expected to create as more flexible structure for participation while adding
greater value to the remaining network partners.
4.
FEDERAL LEGISLATION
A.
FOOD STAMPS PROPOSED FOR DIETARY SUPPLEMENTS
US Senators TOM HARKIN (D-IA), ORRIN HATCH (R-NV) and MITCH CONNELL (R-KY)
introduced a bill last month which would allow recipients of food stamps to use them to purchase
dietary supplements. Backers of the bill include the NATIONAL OSTEOPOROSIS
FOUNDATION, NATIONAL NUTRITIONAL FOODS ASSOCIATION and the SPINA BIFIDA
ASSOCIATION OF AMERICA. The bill is called the FOOD STAMP VITAMIN AND MINERAL
IMPROVEMENT ACT OF 1999.
B.
VETERANS AND CHIROS
Legislation to includes creating of a policy on a chiropractic option for patients in the VETERANS
ADMINISTRATION health plan successfully cleared the HOUSE VETERANS AFFAIRS
COMMITTEE on July 15, 1999. A provision has been included in HR 2116, the VETERANS
MILLENNIUM HEALTH CARE ACT, which would require the VA to develop a policy on utilizing
chiropractic in the system. The policy is to be developed within 120 days of passage of HR 2116.
The AMERICAN CHIROPRACTIC ASSOCIATION and the ASSOCIATINO OF CHIROPRACTIC
COLLEGES have teamed on the lobbying. The House has not yet acted on this committee
recommendation.
5
CONFERENCES
A.
The OFFICE OF PROGRAM DEVELOPMENT and the CENTER FOR BIOETHICS of
the UNIVERSITY OF PENNSYLVANIA in collaboration with the NIH NCCAM are sponsoring
what they are billing as an international conference entitled Complementary and Alternative
Therapies in the Academic Medical Center; Issues in Ethics and Policy. November 10-12, 1999,
in Philadelphia. $395, before October 18. 17 Category 1 CME credits. Sterling list of top flight
speakers. For information on faculty and the conference brochure:
www.med.upenn.edu/bioethics/ or call 215-898-6400.
B.
STANFORD/HARVARD Conference is seeking donor-sponsors. This first ever,
academic institution sponsored meeting on the business of integration will be held in San
Francisco on October 15-17. Three major donors ($25,000) have been lined up, according to
Stanfords KEN PELLETIER, PHD, an INTEGRATOR advisor: AMERICAN SPECIALTY HEALTH
PLANS, MICROMEDEX and METABOLIFE. They are looking for additional major donors as well
as other support provided by sponsors ($10,000 plus). Contact Katrina Bates, conference
planner: 781-279-9887.
End
INDUSTRY/HEALTH News File #27, August 6, 1999
_________________________
1. Group Focused Services at St. Charles, Bend, Oregon
2. Columbus Regional Hospital (IN) Opens CAM Clinic
3. Bienestar Establishes California Office
4. WholeHealth Educators: Meeting a Need for Patient Advocacy?
5. ACA Data Suggests Chiropractic is Disappearing in Medicare Managed Care
6. Miscellaneous (DeNucci/NextHealth), AWHN/QVS, plus ...)
THE INTEGRATOR
__________________
As always, your feedback is welcome. -- John Weeks, Publisher-Editor
____________________
1 GROUP-FOCUSED SERVICES: STRUCTURE AND OUTCOMES OF MEDICAL

SYMPTOM REDUCTION PROGRAMS AT ST. CHARLES MEDICAL CENTER
Early outcomes for the first three groups of patients in the Medical Symptom Reduction Program
(MSRP) offered by the CENTER FOR HEALTH AND MEDICINE at the ST. CHARLES MEDICAL
CENTER in Bend, Oregon, are very positive. The 10-week group-focused programs, developed
in part by consultant EILEEN STUART, RN, MS, an INTEGRATOR advisor, include individualized
work with a Health Coach (an RN) and individual sessions on diet and exercise. However, clinical
focus is an interactive group education model in 10, 3-hour sessions. (For general background,
see the March 1998 INTEGRATOR on group-focused services.) The intent of the programs is
described in program literature as: "educate and empower the individual to be more accountable
for his/her personal health, and to provide support in making healthier life choices." Directly
targeted cost-related outcomes include decreased dependency on the medical system and
decreased need for medications. The group format is not condition-specific. The first three
sessions (73 individuals) included individuals with many diagnoses, and many with multiple health
conditions. Tops were stress management (56), high cholesterol (45), hypertension (40),
fibromyalgia (21), obesity (21), gastrointestinal (12), chronic pain due to injury (12), depression
(12) and 9 others. The outcomes include:
*** Average decreases across the board for all participants were: cancer risk factors (33%),
blood pressure (20%, w/o medication), cholesterol (20%, w/o medication), weight (10%), cardiac
risk factors (7%), alcohol use (7%).
*** Positive changes appearing as increases were: fitness scores (25%), sense of well-being
(24%), nutrition scores (18%) and ability to cope with stress (17%).
The Center in Oregon also offers spin off, one day Life Choice programs and individual Health
Coaching. Full package for the 10-week program includes: comprehensive intake assessment
(RN), 30 hours of class time, workbook, textbook, relaxation tape, four 1-hour Health Coach (RN)
sessions, a one-time nutritional counseling (RD), a one-time fitness evaluation and personal
exercise program (exercise physiologist/RN), and ongoing oversight by the programs medical
director. All prescriptions come not through the program but via the participants primary care
provider. The medical director is Michael Harris, MD.
Stuart, who consults nationally on creating group-focused programs, is a clinician-researcherprogram developer who spent 15 years heading up the successful, widely published groupfocused cardiovascular programs associated with the MIND-BODY MEDICAL INSTITUTE at
HARVARD UNIVERSITY. Her present work is a grant-funded effort focusing on modifying
programs to fit the schedules and needs of underserved, lower income populations. For the
Center: Debra Harris, RN 541-385-6390. For Stuart: 617-325-4395
2 COLUMBUS REGIONAL OPENS CAM CLINIC

COLUMBUS REGIONAL HOSPITAL in Columbus, Indiana, opened an Integrated Medicine
Center on July 7. The Center grew out of a pilot project in complementary therapies at the
hospitals Cancer Center. Positive responses from patients who "rated improvements in their
general well-being" led the institution to expand services to all patients, according to a fact sheet.
Services include acupuncture, acupressure, biofeedback, herbs, mind-body, massage, nutritional
counseling, spiritual meditation and stress reduction. No medical doctors are on sight and the two
acupuncturists commute from Indianapolis. Acupuncture is the only service which requires a
physician referral. The clinic is positioned as working "in partnership with a patients physician ...
not a substitute." Manager is DEANA TUELL, RN, OCN. 812-375-3750
3 BIENESTAR OPENS CALIFORNIA OFFICE

A west coast division has been opened by BIENESTAR, the Mt. Tremper, NY, CAM firm
specializing in network-delivered discount products. The office is located in San Ramon, and
headed up by CAROLE ROGERS, regional director. A Bienestar release from July 30 noted
Rogers has "30 years of experience in managed care and complementary medicine." Bienestar,
now in its fourth year in the market, claims 100,000 lives covered by one of its products. The
firms $75 credentialing fee for providers has been waived for the first year in the California
market. The firm is seeking to include in its California network "primary care physicians and
chiropractors who serve as care managers," as well as acupuncturists, massage therapists and
"other modalities." The firm is offering its credentialing application online to providers, who will be
submitted to verification, stated the release ED ULLMAN is president of the firm, which began by
offering discount cards in the New York and Florida markets. bienestarinc.com or 888-393-2436
4 WHOLE HEALTH EDUCATORS: NEW PERSONNEL TO COACH PATIENTS?

Physician reimbursement doesnt allow the time for patients. Task intensity in nurse rotations can
limit their role as patient support. CAM introduces new complexities and options into treatment.
One strategy for filling such gaps in whole person patient education is being promoted by the
NEW ENGLAND SCHOOL OF WHOLE HEALTH EDUCATION (NESWHE). Many of the schools
600 certificated graduates are currently serving diverse medical, hospital and CAM practices as
patient educators and triage support, according to founder GEORGIANA DONADIO. The school,
licensed by the Department of Education of the COMMONWEALTH OF MASSACHUSETTS, is a
2-year "career training program" which includes a 250-hour internship. NESWHEs espouses a
philosophy of approaching healthcare "from a whole person oriented philosophy which is
educational, focused on disease prevention and, to the extent possible, fully engages the
participation of the individual in their health experience." Founder Georgiana Donadio, a trained
nutritionist and chiropractor, adds that the goal is to create a "model of patient education based
on unconditional presence and respectful listening which invites people into their own healing and
self-management." Donadio says her Whole Health Educators have been covered by 4 of the 12
Self-Insured Trust Funds administered by MODERN ASSISTANCE PROGRAMS, INC, a medical
care management company based in Quincy (617-773-4288). The trusts include HOTEL AND
RESTAURANT WORKERS LOCAL 26, AUTOMOBILE WHOLESALERS ASSOCIATION OF
NEW ENGLAND. The school has partnered with ALTANTICARE MEDICAL CENTER in Lynn,
Massachusetts, to research the outcomes of Whole Health Educators in cardiac rehabilitation. In
another collaboration, UNION HOSPITAL, also in Lynn, is moving forward to establish a new
department of Whole Health Education. The one-on-one model has a patient meeting in six
sessions with an AWE. Course work for the NESWHE program links nutrition, stress reduction
and mind-body ideas. Price is $9000. Donadio told THE INTEGRATOR that NESWHE is working
on a distance learning model for the program. 617-247-0896
5. CHIROPRACTIC "DISAPPEARING" IN MEDICARE MANAGED CARE?

The AMERICAN CHIROPRACTIC ASSOCIATION has learned through Freedom of Information
Act (FOIA) requests to HCFA that three major Medicare HMOs have "effectively eliminated"
chiropractic services from their care of seniors. In PACIFICARE OF CALIFORNIA, just 38
beneficiaries out of 390,000 enrollees saw DCs. The numbers were 127 of 63,561 in Pacificare of
Texas and 399 OF 32,270 in KEYSTONE HOMO in New Jersey. The ACA released notes that in
FFS Medicare, 4-5% of seniors use chiropractors. (Note that studies by BCBS COLORADO and
STANFORD in the last two years have found roughly 40%-50% of seniors use CAM, with
chiropractic ranked as the therapy most desired for coverage.) ACA president MICHAEL
PEDIGO, DC, places blame for this trend on the "medical physician dominated agencies and
HMOs," calling them "a direct threat to the health, welfare and safety of senior citizens." The
FOIA request was part of the ACAs ongoing battle with HCFA over the status of chiropractic in
Medicare HMOs under Medicare + Choice plans. An OFFICE OF THE INSPECTOR GENERAL
survey of 1991-1992 data on chiropractic in Medicare managed care found that medical
gatekeepers tend to make referrals to chiropractors 0.5% of the time, roughly a factor of 10 (87%
drop) from use in FFS Medicare. The report also found that 29% of plans responded that physical
therapists delivered manipulation services.
6. MISCELLANEOUS
A. JOSEPH DENUCCI, who formerly headed up the CAM program at BAPTIST ST. VINCENT
HEALTH SYSTEM in Jacksonville, Florida, is presently on leave in Tucson, where he is serving
as executive vice president for NEXTHEALTH and as general manager for MIRAVAL (Life In
Balance), a health-oriented destination which Conde Nast magazine recently proclaimed one of
the best places to stay "in the whole world." NextHealth owns Miraval. The resort, distinguished
by a focus on assisting its guests in finding balance, offers a wide array of natural health and
fitness offerings. DeNucci, an INTEGRATOR advisor, is working to heighten the profile of Miraval
in the integrative medicine and natural health community. The resort is used by JON KABAT
ZINN, PHD, and other CAM healers for high-end retreats. 520-825-4000.
B. AMERICAN WHOLEHEALTH NETWORKS has chosen to participate in the primary source
credentials verification program of the AMERICAN CHIROPRACTIC ASSOCIATION. The
program, QVS, is just over a year old. AWHN is the first national network managing chiropractic
to sign on. ANDREW AHO, AWHNs VP for sales and marketing, was until recently with the ACA.
For info on QVS: 800-986-4636
C. EX ARIZONA CENTERS FOR HEALTH AND MEDICINE (ACHM) personnel are finding new
roles in and outside CAM. HOWARD SILVERMAN, MD, the last medical director for ACHM
before the CATHOLIC HEALTHCARE WEST clinics were closed in April of this year, is now
director of special projects for the medical education department at GOOD SAMARITAN
REGIONAL MEDICAL CENTER in Phoenix. Silvermans position is set up to allow him to work
broadly with residents and fellows on CAM areas and other topics. PHYLLIS BIEDESS, who ran
the ACHM program until the spring of 1998, has been appointed director of Arizonas managed
Medicaid office by Arizona GOVERNOR JANE HULL.
D. A follow-up call with BLUE CROSS BLUE SHIELD OF TEXAS indicated that AMERICAN
SPECIALTY HEALTH PLAN has the inside track on the discount product the Texas Blue are
considering in conjunction with the Illinois Blues plans.
E. CORRECTION on the June INTEGRATOR story on MEMORIAL HERMANN HEALTHCARE.
DAN WILFORD, president of the system, is not a medical doctor. RICHARD MATERSON, MD,
was with the NATIONAL REHABILITATION HOSPITAL in D.C., not the National Institutes of
Health. Contact at Memorial is MARY HELEN MOROSKO, LMFT: 713-744-2062.
F. NANCY WEISE, DO, the physician who headed up the CAM exploration team at CIGNA
ARIZONA, is moving to Houston to work with the CIGNA office there. Her responsibilities are not
expected to focus on CAM. MICHELLE REDMOND, who staffed CAM work, will be taking a new
position with the firm but hopes to take CAM responsibilities with her.
G. NATURAL PRODUCTS FIRM INKS AGREEMENT WITH INTEGRATIVE CLINIC
A July 29 release from NATURAL HEALTH TRENDS CORPORATION (Nasdaq:NHTC)
announced an agreement between the firm and THE ALLIANCE INSTITUTE FOR INTEGRATIVE
MEDICINE, in Columbus, Ohio, under which the Alliance agreed to "conduct and monitor
research data" on some NHTC products. The firms proprietary products include Enzogenol, and
sports and arthritis creams. The Alliance Institute has over 40 providers and has been ranked one
of the nations top integrative clinics by NEW AGE magazine.
H. GROUP POSITIONS FOR HOLISTIC RESOURCE CONSULTING IN PA
The HOLISTIC THERAPIES RESOURCE GROUP, INC. has been established to offer consulting
services on CAM programs in the Philadelphia area. The target client is hospitals and assisted
living facilities that wish to implement "a holistic therapies program." Founder NANCY SAXE is
positioning her firm as a one-stop consulting service for credentialing providers, developing
programs and supplying educational classes. 215-345-5668
End
__________________________
1. AAHP Notes CAM in Two Womens Health Monographs
2. Clinic Revenue for 10,000 Square Foot Facility
3. Consumer Health Interactive in BCBS MA AHeathyMe.com
4. Landmark Healthcare: Two in Hawaii
5. InfiniteHealth Healing Center to Shut; Network to be Sold
6. New MD-Acu Programs Being Offered
7. Conferences (U Arizona/CAM Pediatrics, Hooper Lundy Bookman, IFM, Qigong)
8. Publications (American Health Consultants, Integrative Medicine Communications/Pharmacy)
9. Miscellaneous (Chirosource, Calabrese/Rexall-Sundown, ASHP-Texas Blues)
10.Next Newsfile on 9/3
THE INTEGRATOR
__________________
____________________
1.
AAHP NOTES CAM IN BROCHURES FOR 2 WOMENS HEALTH GUIDELINES
A recent cover-to-cover reading of the July-August issue of HEALTHPLAN magazine provides

evidence of just how much CAM has become a touchstone in managed medicines conversation.
The magazine is published by the AMERICAN ASSOCIATION OF HEALTH PLANS (AAHP), the
leading industry organization for managed care. The issue describes AAHP monographs on
Best Practices in Womens Health Care and includes a list of 10 questions each, on a range of
conditions, which consumers can use to distinguish good plans. The monographs on breast
cancer (support groups) and mid-life womens health issues include affirmative reference to
CAM as part of exemplary care for women. In related news, a Chronic Care Checklist in an
article in the same issue entitled Reinventing Managed Care for the Chronically Ill positively
references CAM in a section on promoting more aggressive self-care. Finally, an opinion piece
on the subject of medical necessity by RANDOLF SMOAK, Jr., MD, president of the AMERICAN
MEDICAL ASSOCIATION, lambasted plans for covering CAM as a supplementary rider. He

argued that CAM, for which little scinetific evidence exists, proves that plans are more
interested in premium income than treatment outcome. The articles were in Healthplan, JulyAugust, 1999. Information on the AAHP monographs are available through Karen Helsing at
khelsing@aahp.org (202-778-3200). The article on chronic care is from Richard Bringewatt,
president of the NATIONAL CHRONIC CARE CONSORTIUM, an alliance of 37 health systems in
the US.
2.
CLINIC REVENUE DATA FROM 10,000 SQ FT FACILITY
The 10,000 square foot COLVILLE HEALING ARTS CENTER hit operational breakeven on its
roughly $100,000 monthly budget in its 12th month of operations. The for-profit clinic, headed by
LON HATFIELD, MD, and GEORGE CARNIE, CEO, includes a wide array of modalities and
contracted practitioners, plus a significant pharmacy. Core contributors to a recent monthly
revenue profile include: DO = $25,000 (no conventional medicine; body work focus -- the clinic
has no chiropractors); ND = $17,000 (primary care); MD = $15,000 (Hatfield is only part time in
practice); and a combined acupuncturist-physical therapist = $12,000. The natural products
pharmacy, established as a separate corporation, generated $13,000 in revenues. Another
$5,000 was attributed to pharmacy, with the rest a variety of additional CAM services.
Conventional primary care accounted for just 10% of the practice. Three-fifth of the patients are
self-referred. A significant portion of revenues (65%) are traditional indemnity. Hatfield, a
respected practitioner in his region for many years, attributes part of the clinics ability to gain
coverage to the relationships he has built with insurers: I work closely with major insurers so
they can hear what we are doing and tell them how to language it for them. Hatfield, for
instance, will help to convert Traditional Chinese Medicine diagnoses into Western diagnoses.
The clinic, which is located in a rural area north of Spokane, Washington, will be in the third
round of initiatives featured in the INTEGRATORs Integrative Clinic Benchmarking Survey. 509685-2300
3.
CONSUMER HEALTH INTERACTIVE IN DEAL WITH BCBS MASSACHUSETTS
Following development of a consumer-oriented website, in concert with CONSENSUS HEALTH,

for BLUE SHIELD OF CALIFORNIA last year (Mylifepath.com), CONSUMER HEALTH
INTERACTIVE (CHI) has contracted with BLUE CROSS BLUE SHIELD OF MASSACHUSETTS
for a similar product, this one supporting, in part, a CAM discount offered through CAM network
LANDMARK HEALTHCARE. The site for the Massachusetts members is AHealthyMe.com. CHI
is a division of BABYCENTER, INC., a website (BabyCenter.com) which focuses on pregnancy.
Landmark has a discount contract in Massachusetts.
4.
LANDMARK HEALTHCARE: TWO IN HAWAII
Two August 10 releases from Sacramento-based LANDMARK HEALTHCARE announced new

contracts for the CAM network in Hawaii. One is with UNIVERSITY HEALTH ALLIANCE, a
10,000-member plan which allows members to use acupuncturists as part of a supplemental
benefit. The benefit design does not require referral from a primary care physician. The second,
with KAPIOLANI HEALTH HAWAII, gives the 30,000 members access to Landmarks network as
a discounted benefit and provides the HMO an opportunity to sell a combined acupuncture and
chiropractic rider to employer groups. For Landmark: 916-569-3326; for UHA: uhahealth.com;
for KHH: kapiolani.org.
5.
INFINITE HEALTH HEALING CENTER AND NETWORK TROUBLED
A source close to the INFINITE HEALTH HEALING CENTER, formerly the HEALTHEAST
HEALING CENTER in Minnesotas Twin Cities, has told THE INTEGRATOR that the 6,500
square foot facility and its associated CAM network may shut their doors by the end of the month.
The clinic, founded by CHRIS FOLEY, MD, had not reached profitability when it was purchased in
1998 by InfiniteHealth. The firms network, founded in 1996 and pre-dating the clinic acquisition,
has worked closely with the HEALTH PARTNERS HMO and was slated to be part of open
enrollment for at least five large employers this fall. The firm is reviewing offers for possible
acquisition or investment. 612-574-7267
5.
NEW PROGRAMS FOR EDUCATING MD/DO/DDS IN ACUPUNCTURE
Physician acupuncture education has been dominated by the Helms course at UCLA started by
JOSEPH HELMS, MD. The program combines onsite education with distance learning. Other
institutions are entering the field. The USC DEPARTMENT OF FAMILY MEDICINE is starting a
similar course or 1999-2000 entitled: Chinese Acupuncture for Physicians: Scientific Basis and
practice. The course is being offered in partnership with CIGNOLINI AND ASSOCIATES with
the onsite components held in Santa Barbara. 120 AMA category 1 credits; $4000. Contact: Dr.
Tom Burgoon: 610-399-1446. In addition, NEW YORK MEDICAL COLLEGE has a 300-hour
certificate program in acupuncture for MD, DOs and DDSs, which is approved by New York
State. Running for March-December, theprorgam curentyl has 35 students. The leadership is
reportedly looking at offering a similar program to cross-train chiropractors. The program is
headed by RAVINDER MAMTANI, MD. A related CAM clinic is located at the WESTCHESTER
MEDICAL CENTER. 914-594-4378
6.
CONFERENCES
A.
A three day session INTEGRATIVE PEDIATRIC MEDICINE is being offered by THE
UNIVERSITY OF ARIZONA DEPARTMENT OF PEDIATRICS. Keynoters include KATHI
KEMPER, MD, JON KABAT-ZINN, PHD and ANDREW WEIL, MD. A co-sponsor is the
AMBULATORY PEDIATRIC ASSOCIATION SPECIAL INTEREST GROUP ON HOLISTIC
MEDICINE. The conference is being billed as the first annual. The University was the recipient
of a major NIH NCCAM grant for pediatrics. Other co-sponsors are THE UNIVERSITY OF
MINNESOTA CENTER FOR SPIRITUALITY AND HEALING, and THE CENTER FOR HOLISTIC
PEDIATRIC EDUCATION AND RESEARCH at CHILDRENS HOSPITAL in Boston.
February 18-20, 2000. pedsimc@peds.arizona.edu
B.
The California health care law firm of HOOPER LUNDY & BOOKMAN is offering half-day
seminars on CAM integration in San Francisco (September 21) and Los Angeles (September 22).
Speakers include KAREN VILLENUEVA (THE CAMDEN GROUP), ERIC LEAVER (AMERICAN
WHOLEHEALTH NETWORKS), two leaders with EISENHOWER MEDICAL CENTER and
INTEGRATOR editor JOHN WEEKS. The initiative is headed up by ANGELA MICKELSON, a
partner with the firm who has been actively involved with various CAM initiatives in recent years.
Fee is $50. For Mickelson: 310-551-8170; to register: 310-551-8117.
C.
The INSTITUTE FOR FUNCTIONAL MEDICINE (IFH) has announced its 1999-2000
intensive programs for re-educating physicians into the basics of functional medicine. Three
sessions, each eight days in length (two four day segments), are being offered. IFH was
founded by nutritional medicine pioneer JEFFREY BLAND, PHD, of HEALTHCOMM. 800-2280622 or fxmed.com
D.
Those interested in exploring QIGONGs role in health services will be interested in the
Third World Congress, November 19-21 in San Francisco. The most recent Congress reportedly
drew 700 attendees from 16 countries, including 65 speakers. eastwestqi.com
7.
PUBLICATIONS
A.
ALTERNATIVE MEDICINE BUSINESS REPORT, a monthly publication from
AMERICAN HEALTH CONSULTANTS, has undergone a name change to NUTRACEUTICAL
BUSINESS REPORT. The high-end publication ($535) has targeted venture capitalists and
investors in the natural products industry. The title more closely reflects the newsletters original
and actual focus. AHC also publishes the highly successful ALTERNATIVE MEDICINE ALERT.
B.
Boston-based INTEGRATIVE MEDICINE COMMUNICATIONS has introduced a new
newsletter targeting pharmacists entitled THE INTEGRATIVE PHARMACY. The editor-in-chief of
the eight page monthly is JUNE REIDLINGER, PHARM D, RPH. Advisors include AMERICAN
HOLISTIC MEDICAL ASSOCIATION founder ROBERT ANDERSON, MD, former board member
and Connecticut Society president for the AMERICAN ASSOCIATION OF NATUROPATHIC
PHYSICIANS, ENRICO LIVA, ND, RPH, and MARK BLUMENTHAL (AMERICAN BOTANICAL
COUNCIL). IMC co-publishes the COMMISSION E monographs on botanical safety and efficacy
with Blumenthals organization. Monthly, eight pages, $149/year. 617-641-2300.
8
MISCELLANEOUS
Clayton, California-based CHIROSOURCE, has formed a link with HEARPO CORP, a provider of
hearing benefits, as an ongoing part of the firms partnering for discount services nationwide.
HearPO, a subsidiary of SONUS CORP, is the largest provider of hearing benefits nationally,
according to the ChiroSource release. For ChiroSource: 925-672-5333; for HearPO: 312-4641711.
CARLO CALABRESE, ND, MPH, one of the leading research scientists in the naturopathic
medical profession, will be leaving the research department which he has co-chaired at BASTYR
UNIVERSITY to assume a position as a research scientist with REXALL-SUNDOWN, a
manufacturer of nutritional products. Calabrese was principally responsible for managing and
growing a research department which has been the dominant research player in natural
medicine-based institution. Bastyr was one of the first two NIH CAM sites. With Rexall,
Calabrese will oversee an annual research budget which is reportedly in the $2-$4 million level.
The UNIVERSITY OF SCRANTON Department of Health Administration and Human Resources
has invited INTEGRATOR editor JOHN WEEKS to keynote a meeting on November 10, 1999.
The meeting is being supported by a local Blues organization.
A source with BLUE CROSS BLUE SHIELD OF TEXAS told THE INTEGRATOR that
AMERICAN SPECIALTY HEALTH PLAN is the network with the inside track on securing a
contract to provide what is expected to be largely discount services for the Texas Blues and their
Illinois affiliate. See Newsfile #27.
9.
NEXT I/H NEWSFILE ...
The Next Newsfile, #30, will be shipped on September 3. Gone camping with the family!
End
________________________
SPECIAL FOCUS: OPTIMAL INTEGRATION AND CURRENT NETWORK/HMO MODELS
August 25, 1999

THE INTEGRATOR
__________________
Hello friends and colleagues. I created the document below as a backdrop for a discussion
which I will moderate between four network executives at the NMHCC West. It occurred that
some of the rest of you might find the orienteering process of looking at these questions useful. I
also know that I would relish any of your ideas and responses.
As always, your feedback is welcome -- in this case, solicited! I will assume you comments are
off the record unless you let me know that you are comfortable being cited. Depending on
response, I may compile some comments as part of a feedback loop. -- John Weeks, Editor
____________________
Session 2: The State of CAM Coverage: Where Are We Headed?
Discussants:
George DeVries, CEO, American Specialty Health Plans
Rod Laughlin, CEO, Alignis
Louis Sportelli, DC, President, Triad
Tom Allenburg, DC, CEO, American Complementary Care Network
Note: This session features candid commentary from executives with four of the leading national
networks. Their participation will be as discussants, rather than presenters. Each of them
received the following list of questions with their overlapping themes ahead of time. A few will be
selected, as time allows.
___________________
OPTIMAL LEVEL OF CAM BENEFITS
Most CAM providers believe CAM services are
under-utilized as components of optimally effective and cost-effective care. Imagine that an
HMO gives a network $10 per member per month (PMPM) to manage and assess a CAM benefit
package. This is 100% to 1000% higher than most HMOs covering CAM services are paying.
Can a case be made for this higher level of expenditure? What would you have in the benefit?
Could this be cost-neutral? How could we be most certain that it would generate cost-offsets? If
this level is too high, then what is the high mark for CAM as reflected in a PMPM expenditure?
What is the optimal CAM benefit?
Pressure more on where the money goes. If $10 -- we know PacifCare charges $3.50
individual, $12 per family -- we get $1 per enrollee. [How much is plan -- seller getting -- vs the
provider or provider network?] Seems a lot it pure profit, that could be more research, provide
better benefits. Is some of the money going to physician group?
IS THE NETWORK MODEL INTEGRATIVE MEDICINE?
A case can be made that the
dominant model of care delivery -- carving out covered CAM services to a network business
which credentials providers, manages services, assumes financial risk and offers members direct
access to CAM providers -- is not integrated administratively, financially or clinically. Do you
agree? Do you view this as a problem or an asset? If a problem, what actions from a network or
plan will help resolve it?
DISCOUNT/AFFINITY PRODUCTS The leading trend in HMO activity with CAM networks in
1999 is definitely the inclusion of diverse CAM services not as covered benefits but via affinity
products in which members still pay cash for CAM services, but at a discount. What are the
values in this model? Will this lead to covering other benefits? Are you doing anything to gather
data from these discounted products?
DIRECT-ACCESS COVERED SERVICES
A leading model for CAM delivery by networks is
one in which the network acknowledges the typically low level of conventional PCP referral -either because of lack of MD education or MD antagonism -- and tells the plan, in effect: We
can get around that. Well manage a program in which your members can directly access our
providers. Is this the best starting place? How will this evolve? What kinds of programs do you
have in place to increase MD-PCP understanding? Are they working?
CONSUMER DRIVEN VERSUS CLINICALLY DRIVEN
Data on HMO inclusion of CAM
underline that the consumer is in the drivers seat. Requests from consumers and employers,
and consumers acting through legislatures in the form of mandates, are far and away the single
most significant factors in HMO inclusion. In one study, effectiveness was the primary factor for
just 8% of respondents, and cost-effectiveness was cited by precisely 0%. Will optimal
integration require that CAM services be moved into these deeper discussions? How do we get
CAM to those tables?
DIRECT TO EMPLOYER CONTRACTING
Some CAM integration activists argue that the
best way to view the comparative cost-effectiveness of CAM is not by looking just at medical
expenditures, but to look at these interventions in terms of global savings to employers. Here,
costly issues like absenteeism and productivity come into play. Is the optimal CAM partnership
with the employer rather than the HMO? Do you have any unusual direct-to-employer products
which include analysis components?
RESEARCH: COST-OFFSETS?
A significant issue in CAM payment is whether or not the
services are an add-on, replacement or reduction relative to the cost of conventional
services? In an ideal world, answers to these questions would determine whether additional
premiums should be paid (rider), whether services should be core benefits, or, whether, in fact,
HMOs and physician organizations should be proactively referring for CAM services. How
critical is this question? Have you, or are you, undertaking any analysis of this question? How do
you propose we answer it? What kinds of research models? Who needs to be involved?
Outcomes studies. We are getting software to allow us to compare with MDs. Questionnaire pre
and post treatment, re indicators. Looks mentally and physically at effectiveness, from position of
user. We keep reading about interest in outcomes Id like to see this in reality. Delegated -dumping and holding. NCQA issue on surveying providers.
Another is: NCQA driving up cost of business in providing CAM services, mainly in quality
assurance, UM and documentation. The time is critical. Given that they are asking this, is it
driving up the ocst of services and is there a commensurate increase in quality. [Same question
on conventional services.]
PUBLIC POLICY The federal government was charged by Congress in 1998 with establishing
a national commission on CAM in US healthcare. What do you believe the commission should
explore in the CAM/HMO/network industry? If you were charged with spending $1 million
annually on research in this arena over a five-year period, how would you spend it? What core
messages would you like to deliver to such a commission?
CAM PROVIDER CONCERNS Some CAM providers are suspicious of involvement with
networks and HMOs. They claim it will ruin alternative medicine by, among other things,
harming the provider-patient relationship. Are there risks in this area? If so, what if anything are
you doing to combat them?
COVERING SERVICES BY CAM-MDs
Most network-delivered CAM services utilize distinctly
licensed CAM provider types: chiropractors, acupuncturists. naturopathic physicians and
massage practitioners. Yet a significant and growing subset of medical doctors are beginning to
provide some CAM services, in their own practices and in so-called integrative clinics which
may be sponsored by a major health system. Are you working with these cross-over providers?
Credentialing them? For what services? Is there a need emerging?
MEDICARE + CHOICE
On the face of it, Medicare + Choice offers some exciting possibilities
to bring covered CAM services to seniors. Are you involved in any such programs? What
services? Do you foresee significant expansion in these senior benefits?
BOTANICALS AND NUTRACEUTICALS The most rapidly growing area of consumer use of
CAM is in herbs/botanicals and therapeutic use of vitamins, the so-called nutraceuticals. Do
you see these as a growing covered benefit? Will we see pharmacy replacement strategies?
Can you guarantee quality?
Like this
USE OF INTERNET Data suggests that there is a significant cross-over between users of CAM
and users of the internet. A number of CAM networks have begun to develop internet-based
components to their services offerings? Is the internet an appropriate or even necessary tool in
doing business for a CAM network? Does your business presently include use of the internet?
In what ways do you anticipate an expanded use of the internet in CAMs future with HMOs?
Like this
HEALTH CREATION AND THE DISEASE MODEL The principles of the original HMO
movement and of the CAM movement may be viewed as aligned around a paradigm which
purports to create health in the populations served rather than being merely reactive to disease.
To what extent do you view the services of your network in this light? Do any of your
management strategies tend to be more disease-oriented than you might wish? Are your
providers being underutilized as promoters of health? What can HMOs do, if anything, to better
maximize your providers as partners in creating health?
BUYERS MARKET: ECONOMICS OF THE NETWORK INDUSTRY To all accounts, 1999 is
a buyers market for HMOs looking to contract with networks for CAM services. Clearly, with
national expansion by many firms, the market is more competitive. One hears of networks
buying contracts in order to establish themselves in new geographic areas, and of discount
products being given away. On a low PMPM, can losses only be cut via deeper provider
discounts or keeping members from services? Is this a contradictory market pressure at a time
when member interest in such services appears to be on the rise? What gives when PMPMs are
low? When, if ever, do you foresee the market shifting?
Given that some offer at $.50 and some at $3.50, how do you justify.
Question about product line, how will they change if there is more. If more services, what will
they be?
End
______________________
News File #30, September 3, 1999
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BUSINESS & HEALTH EDITORIAL BOARD CAM PERSPECTIVE, PLUS

FEDERATION OF CHIROPRACTIC NETWORKS FORMED
LUTHERAN HEALTH NETWORK AND SOUTHWEST ND COLLEGE
ST. JOSEPH HEALTH SYSTEM (CA) CAM UPDATE
FEDS REPORT DATA ON ACUPUNCTURE IN DRUG ADDICTION SITES
PHILADELPHIA CLINIC PROFILE: LOTUS MEDICAL ARTS
MISCELLANEOUS
THE INTEGRATOR
__________________
____________________
1
BUSINESS & HEALTH EDITORIAL BOARD CAM PERSPECTIVE, PLUS
The August What We Think column by RICHARD SERVICE, editor, BUSINESS AND HEALTH
(a MEDICAL ECONOMICS publication targeting employee benefits executives) includes two
useful perspectives on the employer market. Service was reporting consensus findings of his
Editorial Board on expected developments in employee benefits. The board includes executives
from firms like PEPSI BOTTLING GROUP, BANK ONE (Chicago) and MILLIMAN &
ROBERTSON. He states: Expect to see huge increases in both the use and credibility of
alternative medicine. This followed a broad, practical-philosophic statement which also
underscores a need in the CAM integration field: I wonder whether there is an analysis
paralysis among employers. It would be bad management and worse health care policy to
suspend action while awaiting supposedly definitive research. Investing in the health of workers,
our board argues, is a matter of self-interest. Services editorial line regularly pushes employers
toward a more prevention and health-promoting approach. For B&H: 201-358-7200.
2
FEDERATION OF CHIROPRACTIC NETWORKS FORMED
On August 21, a new organization of state and local chiropractic networks was formed to, in the
words of BRAD HAYES, DC, president, attempt to bring standards to the industry. The NORTH
AMERICAN FEDERATION OF CHIROPRACTIC NETWORKS has as its purpose, according to
Hayes, the uniting of local and regional chiropractic networks and interested practitioners in the
business of sharing and understanding the healthcare business in regard to chiropractic. At this
time the national networks are not included. Hayes explained: There is a perception among
some -- right or wrong -- that national IPAs have hurt chiropractic. One early participant painted
the NAFCN as David versus Goliath attempting to make the market less chaotic. When asked if
it was true that local network practices are also charged with hurting the chiropractic profession,
Hayes conceded this was the case. Networks from at least 8 states were represented at the
founding meeting: WI, CO, KS, OK, NM, LA, and NC. Hayes states that while OR and TX were
not present they were on board. Roughly half of these organizations were started by state
associations, often through provider assessments. At least of the founding networks also have
other CAM providers and more are exploring it since the demand is there. Most of the networks
have the problem, according to Hayes, of not having a clue other than price about the systems,
data, etc. needed to successfully run a network. The NAFCN plans to share information on core
business needs and strategies. David vs Goliath? Even is some of the small networks are
immature or priced the same as the competition, the effort can make the market more mature and
less chaotic. Hayes, a medical director with the 4-year-old OKLAHOMA STATE CHIROPRACTIC
INDEPENDENT PHYSICIAN ASSOCIATION, asserted that the nationals only account for 15% of
the managed chiropractic, while the state and regional networks account for the remainder. For
Hayes: 918-492-0087.
3
LUTHERAN HEALTH NETWORK AND SOUTHWEST ND COLLEGE
Late August marked the signing of an affiliation agreement between SOUTHWEST COLLEGE
OF NATUROPATHIC MEDICINE and BANNER HEALTHCARE (a combination of LUTHERAN
HEALTHCARE NETWORK and SAMARITAN), a combined 5-hospital group in the Phoenix area,
under which naturopathic medical students and staff naturopathic physicians with Southwest will
observe physician practices and hospital rounds, observe in the ER and assist in system
laboratories. PAUL MITTMAN, ND, acting president of Southwest, told THE INTEGRATOR that
this discussion has been underway for a number of months and an August 27 presentation to
medical leaders garnered significant support. RENEE PIERCE, who heads up CAM exploration
for the Lutheran organization, told THE INTEGRATOR that some Southwest naturopathic medical
students have already been onsite at Lutheran facilities, particularly in a pain clinic led by MDs
who use some acupuncture. Pierce attributed the positive decision to the relationships and
mutual understanding which quietly developed during the nine months of that relationship.
Lutherans chief of staff, KLEE BETHEL, MD, one of the physicians at the pain management
clinic, is a champion of the relationship internally. Under the merger which created BANNER
HEALTHCARE, which commenced September 1, 1999, Pierce will be working closely with her
counterpart at Samaritan, HOWARD SILVERMAN, MD, former medical director with the now
defunct ARIZONA CENTERS FOR HEALTH AND MEDICINE. Silverman has significant
experience working with naturopathic physicians. Southwest, founded early this decade, is the
youngest of the 3 federally-recognized naturopathic medical programs. For Mittman: 408-970000; for Pierce: 480-503-9640.
4
ST. JOSEPH HEALTH SYSTEM (CA) CAM UPDATE
CORRINE BAYLEY, vice president and CAM leader with the 10-hospital, California-based ST.
JOSEPH HEALTH SYSTEM informed THE INTEGRATOR this week that the system is moving
ahead with two oncology pilots involving both inpatient and outpatient care. Well use it as a
learning lab for introduction of CAM therapies and on how to change the culture from provider
focused to a more healing environment for both patients and providers. The two sites are the
ST. JUDE MEDICAL CENTER, Fullerton and ST. MARY MEDICAL CENTER, Apple Valley. Kickoff is formally scheduled for October 1, although significant internal preparatory work has already
commenced. In related CAM news, Bayley has pulled together the systems 3rd annual healing
retreat: 400 system leaders will participate in a weekend gathering and hear from such leaders
as PAMELA PEEKE, MD, and JAMES GORDON, MD. Bayley also reports that three hospitals
have now surveyed their physicians on CAM interest and use. Each has seen a relatively high
response rate (25%), most dont ask patients about CAM use, and a lot are using CAM in their
practices (through referral or direct clinical application). For Bayley: 949-364-2644.
FEDS REPORT DATA ON ACUPUNCTURE IN DRUG ADDICTION SITES
A regular US government report on addiction treatment facilities found that of 8,958 facilities on
October 1, 1997, 429 (4.8%) listed acupuncture as one of the client services offered.
Guidepoints: Acupuncture in Recovery, a monthly newsletter serving the acupuncture-addiction
community, estimates that, based on the study methodology, that an additional 91 programs are
likely to exist, bringing the total to 520. Highest presence are at community health centers
(8.55%), community/religious organizations (8.6%) and local government sponsored programs
(7.7%). Lowest was federal government sponsored programs (1.2%) and solo/group practices
which treat addiction (1.7%). The free report, SAMHSA Uniform Facility Data Set: 1997, is
available by phoning 800-729-6686 and requesting DHHS Publication No. (SMA) 99-3314. For
information on the $180 newsletter, an excellent resource for anyone working with CAM for
addiction as well as the source of this notice, contact Jay Renaud, editor: 360-254-0186.
6
PHILADELPHIA CLINIC PROFILE: LOTUS MEDICAL ARTS
SARAH FISHER, MD, reported the following from her 14-month-old Philadelphia-based
integrative facility:
** STAFF: MD (strong GABY-WRIGHT nutritional medicine focus including IV-chelation, growing
homeopathy skills), DC (originally staff, now leasing space/personnel), PA with 20 years
practicing homeopathy, 3 acupuncturists (2 TCM plus cross-trained rehab medicine MD), RNReiki provider, and an office manager with experience in patient education. All except the DC are
salaried.
** SIZE: 2600 square feet. Originally a large classroom.
** EDUCATIONAL/GROUP PROGRAMS: Initially we ran such programs as Tai Chi, yoga and
health relevant classes (yeast syndrome, food allergies, menopause, etc.). These classes were
poorly attended and we lost a lot of money on the whole thing.
** GROSS: $500,000, past 12 months.
** INSURANCE: 90% collected at the time of service, 1.5% Medicare assignment.
** REFERRALS: Most from other patients or local health food store. Fisher personally enrolled
600 new patients over the past 18 months. Changed classroom to new acupuncture room and
expanded IV space.
** MEDICAL DIRECTOR SKILLS: My (Fishers) real skill is appropriate lateral referrals to a
variety of complementary modalities.
** BOTTOM LINE: Not making a lot of money, but I employ a lot of good people and pay them
well.
Fisher says she likes to view Lotus as a prototype. PHONE:215-627-3001
7
MISCELLANEOUS
A. GREAT SMOKIES DIAGNOSTIC LABORATORY in Asheville, NC, frequently used for

specialty lab services relative to therapeutic nutrition approaches by CAM providers, announced
on July 28 that it had received 510(K) market clearance from the FDA for the firms intestinal
permeability test kit. The test is used in the diagnosis of gastrointestinal malabsorption
syndromes (colitis, Crohns, IBS, etc.). The INTEGRATOR benchmarking survey has found that
tests such as this dominate physician needs to contract with specialty labs. Contact: Earlene
Clark, VP, Operations: 800-522-4762
B. The AMERICAN DIETETIC ASSOCIATION is pushing for final passage of federal legislation
which would permit reimbursement under MEDICARE PART B for care provided by RDs. For the
second year, a bipartisan majority in the House has co-sponsored legislation. Coverage of
nutrition services lags well behind the science supporting nutritional interventions. The evidence
that good nutrition lowers medical costs is compelling, notes Congresswoman Nancy Johnson
(R-CT), prime sponsor of the MEDICARE MEDICAL NUTRITION THERAPY ACT (HR 1187).
The ADA states that a recent report found that extending coverage for medical nutrition services
provided by RDs to military personnel in the TRICARE benefit program would save $3 million
after the first year. For the ADA: Tom Ryan or Doris Acosta, at 800-877-1600
C. Two new publications targeting the natural products industry have recently appeared.
HEALTH PRODUCTS MARKETING is an $895 monthly published by CYGNUS PUBLISHING
(920-563-1768). The second is NUTRIBIZ ($357), published by CORPORATE RESEARCH
GROUP (914-235-6000; corprsrch@aol.com)
D. Portland, OR-based HEALTHNOTES, INC., recently added to the number of web-based
firms which have licensed its database on natural products. The new firm, bringing to 15 the
number licensing the $150,000 product, is adam.com. For HNI: 503-234-4092.
E. A past newsfile reported the success of the naturopathic medical profession in securing two
appointments to the Advisory Council to the NIH NATIONAL CENTER FOR COMPLEMENTARY
AND ALTERNATIVE MEDICINE. The distinct CAM professions had little representation on the
original panels. Altogether, sixteen individuals have been named: MD (5), DO (1), ND (2), DC
(2), Massage (2), OMD (1), plus 4 public representatives. Subscribers wishing a complete list,
contact Charlie Priester at 206-933-7983.
End
INDUSTRY/HEALTH News File #30, September 3, 1999
__________________________
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JAMA REPORT: COMPLEMENTARY NATURE OF CAM USE

SLOANS LAKE: PUSHING MORE CAM UTILIZATION
COLUMBIA PRESBYTERIAN DATA ON OUT-PATIENT/IN-PATIENT CAM SERVICES
CONFERENCES
MISCELLANEOUS
THE INTEGRATOR
__________________
____________________
1
JAMA REPORT UNDERLINES COMPLEMENTARY NATURE OF CAM
The August 18 JAMA includes a report of a consumer survey on CAM, headed by BENJAMIN
DRUSS, MD, MPH, an assistant professor of health and public policy at YALE UNIVERSITY.
Druss states that the survey shows that alternative or unconventional medicine isnt really an
alternative at all, but a complement to traditional medical practices. Leading findings of the
24,676 persons surveyed (77.7% response rate yielded 16,068 adults) were:
**
**
**
**
6.5% of the population had visits for both unconventional and conventional care
1.8% used only unconventional services
59.5% used only conventional providers
32.2% used neither.
A key finding was that those using both types of care had significantly more outpatient visits (7.9
vs 5.4) and all types of preventive services, except mammography, than those with only
conventional visits. No significant differences were found in inpatient care, prescription drug use
or number of emergency department visits. Health status -- either positive or negative -- did
not appear to be a factor in use of CAM providers. The authors look to the literature on high
utilizers to explain the findings, postulating that attitudes and learned patterns of behavior may
be as important as specific health care needs in driving use of health care services.
The use data was far lower than in most other studies. Chiropractic, for instance, was at 3.3%,
as compared to 10%-11% in the Eisenberg studies and 16%-17% in the Landmark and ASHPStanford surveys. Druss et al explained the unusually low overall use of CAM (8.3%) as being
due to methodology. The main difference is the focus on use of provider services, versus selfadministered care. The survey also included non-English speaking and lower income people.
Very few services were based on physician referral. In fact, over 80% of the time the consumer
use was not physician involved. JAMA. 1999; 282: 651-656.
2
SLOANS LAKE: PUSHING MORE CAM UTILIZATION
When did you last hear an HMO medical director say: Were doing everything we can to
increase utilization? Now add: ... of alternative medicine services. So stated ROBERT
FARACI, MD, medical director with Colorados SLOANS LAKE HMO, whose spiritual care
network and $250 core CAM benefit, via an internal network, was featured in the May
INTEGRATOR. The HMO is trying to find out why actual covered utilization is far less than the
levels of use of CAM by the HMOs members discovered in preliminary surveys. Types of
providers included are quite liberal by most standards, and access is consumer-friendly. Faraci
guesses that one factor may be that the panel needs to be expanded. So the HMO is actively
promoting use in member newsletters and has begun working with its behavioral health network
to get those providers to remind their clients of the existence of the benefit. At this time, though
based on very limited data, Faraci says the cost of CAM is almost negligible. Those who use
CAM, he adds, tend to continue controls, the HMO discovered that users of CAM tended to be
significantly less healthy in virtually every category than CAM providers: The worst were in
mental outlook and chronic pain. While other studies, such as that led by STANFORDs JOHN
ASTIN, PHD (JAMA, May 1998), had shown a correlation between use and those with chronic
conditions, Faraci assumed these might be canceled out by another group of more healthy
users (who Astin captured as the cultural creatives). The earlier data suggests that at least one
assumption of many people in the coverage arena may not be true. Faracis group is currently
tallying a re-survey to see if these findings remain. The aggressively promotional behavior of the
HMO has grown out of its commitment to understanding the value of CAM in health care. Limited
use is limiting evaluation. 303-504-5550
3
COLUMBIA PRESBYTERIAN DATA ON OUT-PATIENT/IN-PATIENT CAM SERVICES
Experience data from a unique complementary care program which combines in-patient and outpatient services at COLUMBIA PRESBYTERIAN in New York City has been released to THE
INTEGRATOR by JERY WHITWORTH, RN, who co-directs the program. The program offers a
range of mind-body services. Services and level of utilization follow: reflexology (33%),
acupressure (13%), massage (32%), hypnosis (9.6%). The remainder, with none more than
2.7% are yoga, guided imagery, Qi-gong, therapeutic touch, consultation and unspecified
services. Of all patients, 35% were in-patients, 40% out-patients, with the remainder OP-IP.
Conditions range across a broad spectrum, and included cardiac, genito-urinary, orthopedics,
stress-related and cancer. Nearly 60% of use by males --- who represented 44% of total use -clustered around cardiac services. Stress conditions and cancer were each at roughly 10% for
males. Use by women was more evenly distributed, with cancer, cardiac and stress-related each
accounting for between 17% and 22% of visits. Access to the program was by self-referral or
from a variety of referral sources. Physicians ranked highest at 34% with other hospital
personnel at 20.3%. Family and friends were the next category at 15.6%. An intriguing measure
was a frequency of use. The overall average was 2.8 treatments. Ranking highest in the
categories examined were in-patients (3.64), cardiac patients (3.51) and males (3.43). Females
were at 2.31 and out-patients as a whole were at 1.8 visits. Contact: Jery Whitworth, RN : 212305-5068.
4
CONFERENCES
A.
STANFORD-HARVARD CONFERENCE is looking good for turnout and sponsorship
according to Stanfords KEN PELLETIER, PHD, who is co-chairing the event. Roughly 225
individuals, most representing institutional interests, are already signed up. Over $100,000 and
perhaps as much as $150,000 has been committed in educational grants from donors to the
program. The success has stimulated the commitment to annualize the program, and a major
HMO/insurer -- not yet announced -- has shown interest in serving as a significant sponsor.
Pelletier shared that his second article on CAM trends in the AMERICAN JOURNAL OF HEALTH
PROMOTION has been accepted for publication and is likely to be in the journals Nov-Dec issue.
B.
HEALTH CARE QUALITY ALLIANCE is focusing on CAM at its Annual Conference on
Quality in Washington, DC, September 21, 1999. The Alliance includes over 100 organizational
members, including the AMA, many specialty societies, the AMERICAN OSTEOPATHIC
ASSOCIATION, AMERICAN CHIROPRACTIC ASSOCIATION and others. (The other CAM
professions are not organizational members.) The speaker line-up includes many federal
government officials with various agencies involved with CAM. Opening remarks are from the
executive director of the AOA, JOHN B. CROSBY, an HCQA board member. The information
about this conference was provided by ALTERNATIVE LINK, one of whose team, JUDY LEE, is
on a panel on Regulating and Reimbursing Alternative health Care. 202-835-3535
5
MISCELLANEOUS
A.
RE: THE BUSINESS AND HEALTH notice in NewsFile #30: Editor RICHARD SERVICE
told THE INTEGRATOR that his editorial comment on huge increases in the use and credibility
of alternative medicine was based less on employer data than on anticipated demographic and
workplace changes. Two converging points of particular interest: Tremendous pressure from
consumers at the same time as changes in the job market will push employers to do everything
they can to hang onto employees. Employers will want to keep their people happy and these
kinds of chronic conditions, often associated with pain, are effected by personal relationships with
care-givers. Thats a strength of alternative providers. Services comments will be included in
more length in the October INTEGRATOR.
B.
HEALTH FORUM JOURNAL: MOVING CAM OUT OF QUARANTINE Health Forum
journal, owned by the AMERICAN HOSPITAL ASSOCIATION, included an article on
developments in the CAM integration arena in its Catching the Enterprising Spirit
September/October issue which looked at entrepreneurial activity in health care. The article,
written by INTEGRATOR editor JOHN WEEKS, is based on observations in the last two years as
integration activity has picked up. The thesis -- not new to INTEGRATOR readers -- is that
business will lack economic vitality as long as integration is merely consumer driven (patient
satisfaction) and not viewed as a part of the core business of creating more effective and costeffective care. The article ends with 10 examples of health system and HMO activity which
appear to be driving the integration conversation into this more important terrain. Single copy
$10. 415-356-4300
C.
PHONEBOOK ADS AND CHIROPRACTIC PROVIDER SELECTION A CAM network
executive recently suggested to THE INTEGRATOR a rule of thumb in provider selection for
chiropractors. To discover the high-roller (high utilizer) chiropractors, check who has the largest
advertisements in the telephone book. He stated that his network development specialists had
observed an apparent correlation between ad space and the production guys who run patients
through their practices. No formal studies of this observation have been undertaken.
D.
The September 1999 issue of NATURAL BUSINESS briefly noted that Warwick, RIbased HEALTH BUSINESS PARTNERS led a multi-million dollar round of investment in Newton,
MA-based INTEGRATIVE MEDICINE COMMUNICATIONS. The specific amount of the
investment was not disclosed. HBP, publishers of NUTRITION BUSINESS JOURNAL, has
staked a leading position in venture investment and merger and acquisition work in the CAM and
natural products arena. Other participating investors included ASCENT VENTURE PARTNERS
and US TRUST CORP. For HBP, Danny Warshay: 401-885-4670
E.
COMPLETE WELLNESS CENTERS, under new management, announced on
September 1 a move from DC to new corporate headquarters in Winter Park, Florida. The firm
explained the move as a consolidation with its West Palm Beach offices and a decision to locate
in closer proximity to the greatest concentration of its affiliated clinics. The release stated the
firm has 63 affiliated clinics. The integration model combines MD and DC providers. Joseph
Raymond, Jr., chairman: 407-673-3073.
End
___________________________
1.
2.
3.
4
5
PLEASE RSVP FOR INDUSTRY/HEALTH BREAKFAST OCTOBER 18

AWH ANNOUNCES WEB SUBSIDIARY DEAL WITH WHOLE FOODS/REBUS
CAM PROFESSION WEB-NEWS: AMTA AND AANP
TWO NEW NETWORK DISCOUNT CONTRACTS: MIDWEST AND MID-ATLANTIC
CONSUMER FOCUS GROUPS: NON-USERS OF CHIROPRACTIC
THE INTEGRATOR
__________________
____________________
1.
PLEASE RSVP FOR INDUSTRY/HEALTH BREAKFAST OCTOBER 18
Just a note to remind anyone interested to please RSVP on the INDUSTRY/HEALTH breakfast in
Los Angeles on October 18. We are headed toward a full room with representatives from 15
organizations currently on board. We can take up to 20. Please let us know your plans ASAP as
food arrangements are underway.
When:
What:
Where:
Room:
6:45 AM -- 8:30 AM: October 18, 1999

INDUSTRY/HEALTH EXECUTIVE BREAKFAST
Wilshire Grand (930 Wilshire Blvd, 213-688-7777)
Mulholland Room
The theme will be: THE STATE OF HMO SERVICES: IS THERE LIFE AFTER DISCOUNTS?
Remember that you need not attend NMHCC to attend the breakfast. [NOTE: EXHIBITED AND
KEYNOTES ARE FREE BY CONTACTING REGISTER@NMHCC.COM.] One person per
organization. Remember also that the evening of the 18th, six firms (American Chiropractic
Network, Triad, American Specialty Health Plans, Alternative Link, American WholeHealth
Network, and Integrative Medicine Communications) are collaborating to sponsor a CAM industry
reception. If you arent going to NMHCC, come to LA on business during that day and take part
in the breakfast and reception to book-end of the day! Its a great chance to focus on core issues
and socialize with your fellow industry leaders. Respond via e-mail or at 206-933-7983.
2.
AWH ANNOUNCES WEB SUBSIDIARY DEAL WITH WHOLE FOODS/REBUS
AMERICAN WHOLE HEALTH has added a third leg to its growing CAM enterprise. Following a
1996 integrative clinic initiative (now at 10 clinics nationally) and addition of a network operation
through purchase/merger with NATIONAL EMPLOYEE BENEFITS last year, an AWH release on
September 23 announced formation of a majority owned subsidiary -WHOLEHEALTHMD.COM. The dot-com firm was established through a $20 million infusion by
WHOLE FOODS MARKET, INC. (NASDAQ: WFMI). The whole foods giant took a minority stake
in the enterprise. Whole Foods operates the nations largest chain of supermarkets, with 100
stores in 20 states plus the District of Columbia. The AWH-affiliated website is expected to be
part encyclopedia and part self-help guide, according to a statement from AWH CEO MARK
PACALA. The release claims the site will draw on AWHs physician-developed clinical
protocols. Consumers will be able to create personalized plans for self-management of chronic
illnesses. Content will be supported by AWHs purchase of key assets from REBUS, INC., a
New York publisher. Rebus owner, RODNEY FRIEDMAN, has joined WholeHealthMD.com
where he will serve as publisher. WholeHealthMD.com will be integrated with Whole Foods own
site, WholePeople.com, which is itself a newly formed subsidiary of Whole Foods Market.
Purchase of natural products (vitamins, etc.) will be available on this site. The clinic leg of the
American WholeHealth enterprise, which has lagged behind AWHs original plans to have 50-100
clinics in operation by the year 2000, will also gain a considerable boost through the Whole Foods
relationship. The release states that in addition to its web partnership, Whole Foods and AWH
will be cooperating to locate up to 50 AWH centers adjacent to Whole Foods Market stores.
For AWH: BILL EGGBEER, 888-437-6336.
3.
CAM PROFESSION WEB-NEWS: AMTA AND AANP
A.
AMTA ADDS PHONE SERVICE TO WEBSITE IN QUALIFIED PROVIDER LOCATION
The AMERICAN MASSAGE THERAPY ASSOCIATION has expanded its phone and internet
services to consumers wishing to access AMTA member massage therapists. A toll free number
(888-843-2682) will guide consumers to therapists who are both located geographically near
them and practice the type of body therapy sought by the consumer. AMTAs Professional
Members, to whom the public is referred, must have completed a minimum 500 hour training
program which is accredited by the COMMISSION ON MASSAGE THERAPY ACCREDITATION,
or a school which is an AMTA COUNCIL OF SCHOOLS members, or have gained certification
from the organizations allied certifying body. AMTAs website (amtamassage.org) has also been
updated to allow consumers to scroll to locate practitioners of their choice. RON PRECHT,
AMTA communications director, told THE INTEGRATOR that AMTA has doubled its capacity to
respond to growing consumer demand. Website: amtamassage.org.
B.
STATE LICENSING CASE FOR NATUROPATHIC PHYSICIANS ON THE WEB
A new, interactive slide show called Making the Case for Licensing is now part of the website of
the AMERICAN ASSOCIATION OF NATUROPATHIC PHYSICIANS. The show was developed
as part of the presentation the California affiliate of the AANP made to California state officials
this past summer. Naturopathic physicians are presently licensed in 11 states. Recent efforts to
expand licensing have been adamantly opposed by an organization led by, and funded by,
owners of businesses which offer Doctor of Naturopathy certificates via correspondence
courses. AANP members complete four-year, post-premedicine, residential education which
includes a two year clinical component. Website: naturopathic.org.
4
TWO NEW NETWORK DISCOUNT CONTRACTS: MIDWEST AND MID-ATLANTIC
A.
CONSENSUS/CAREFIRST BCBS (MID-ATLANTIC)
January 1 marks the launch of a CAM discount product promoted by CAREFIRST BLUE CROSS
BLUE SHIELD as the first in the Mid-Atlantic region. CareFirsts partner on the program, called
CareFirst Options, will be Emeryville, CA-based CONSENSUS HEALTH. For Consensus, this is
the 3rd significant Blues contract, following CALIFORNIA BLUE SHIELD and BCBS North
Carolina. CareFirst operates in DC, Virginia, Maryland and Southern Delaware. CareFirst senior
VP for medical affairs and network management, ERIC BAUGH, MD, explained the development
as a response to consumer demand, and his firms commitment to helping customers stay
healthy and providing more options to promote better health and fitness. The benefit is extended
to customers of CareFirst, FREESTATE HEALTH PLAN, DELMARVA HEALTH PLAN,
PREFERRED HEALTH NETWORK and CAPITALCARE HMO. FreeState is also involved with a
covered benefit, acupuncture pilot project developed in an unusual collaboration with
TRADITIONAL ACUPUNCTURE INSTITUTE (see August 1998 feature). For CareFirst: 888999-4140 or carefirst.com; for Consensus: 510-285-2000.
B.
AWHN INKS/RUSH-PRUDENTIAL (ILLINOIS) DEAL
Chicagos third largest insurance company, RUSH-PRUDENTIAL, has announced a partnership

with AMERICAN WHOLEHEALTH NETWORKS to offer a CAM discount to its 400,000 members.
Price breaks by AWHN are reportedly as much as 25%. Among the providers are the AWH
clinics in Chicago, led by DAVID EDELBERG, MD, AWH founder. A news account suggested
that HUMANA and AETNA are also looking at adding similar benefits in the Chicago market.
Humana reportedly has CAM pilots underway in Tampa and Cincinnati. BARBARA HILL, with
Rush Prudential, explained the move succinctly: We just realized that this is a service the
American public wanted. The AWHN network is anticipated to have some 200 providers. For
AWHN: 800-274-7526.
5
CONSUMER FOCUS GROUPS: NON-USERS OF CHIROPRACTIC
An e-mail list-serve on chiropractic recently circulated comments of an chiropractor-observer of a

series of chiropractic-related focus groups with non-users of chiropractic care. Some shared
findings of the perception of chiropractic among these non-users were: most were chiropracticneutral; the biggest negative was a concern that one you started treatment, you have to keep
coming (preferred was short-term treatment focusing on their chief complaints); consumers did
not like us v. them approaches from any quarter (most already had a negative view of the
medical treatment already received for their neck or back problem ... nothing to gain by piling
on; quality of life -- resuming more enjoyable activities -- was key to satisfaction; and few
had any idea of the level of training and formal licensing required, and furthermore, found
professional-looking paraphernalia (white coats, diplomas) important. An interesting final point:
while non-users did not like the idea of personally communicating their use of an alternative
service with their medical doctor, they embraced the idea that their chiropractor should. In
short, theyd praise, not shoot, the messenger. Source: chiroviewpresents.com; contact Sigmund
Miller: 925-294-98090 x 11.
6.
CONFERENCES
A.
LATE REPORT ON TOP FLIGHT CAM-REHAB MEETING: OCTOBER 1-2, BOSTON
THE INTEGRATOR recently learned of a top-flight gathering on CAM in rehabilitation medicine,

sponsored by SPAULDING REHABILITATION HOSPITAL with CMEs available through
HARVARD MEDICAL SCHOOL. The two-day meeting will be held October 1-2, 1999, in Boston,
at the Marriott. Among the speakers are DAVID EISENBERG, MD, and leaders in development
and research of group-focused services JON KABAT-ZINN, PHD, and HERBERT BENSON, MD.
Other notable presentations are a look at homeopathy in mild traumatic brain injury by EDWARD
CHAPMAN, MD, past president of the AMERICAN INSTITUTE OF HOMEOPATHY, and herbs
and nutrition to advance recovery by GLEN ROTHFELD, MD, medical director a Boston clinic
owned by AMERICAN WHOLEHEALTH. (Rothfeld is also prominent on the AWH website.). The
meeting is an unusually broad look at CAM clinical application, also including such topics as
Fibromyalgia and Magnet Therapy and a program with a remarkable symmetry: Phantom Pain
and Therapeutic Touch. Course director is ERIC LESKOWITZ, MD. $375; for reservations: 617432-1525.
B.
WOMEN AND CAM AT DETROITS ST. JOHN HEALTH SYSTEM
ST. JOHN HEALTH SYSTEM in Detroit is taking a step into CAM October 4 with a consumerfocused evening seminar. Among the presenters will by RICHARD BUTLER, DO, medical
director, St. John Oakland Hospital, on the importance of holistic health and self-care. 313-3438840
7.
MISCELLANEOUS
A.
KATZ ON INSIDE TRACK TO HEAD NATIONAL CAM COMMISSION
An early, unconfirmed report has been provided to THE INTEGRATOR from Washington, DC,
insiders that SHEILA KATZ, PHD, will be given the prize appointment of chairing the
National/Presidential Commission on CAM which was funded at $1 million in the 1998 legislation
which transform the NIH OFFICE OF ALTERNATIVE MEDICINE into the CENTER FOR
COMPLEMENTARY AND ALTERNATIVE MEDICINE. Katz, who has only peripherally been
involved with CAM to-date in her professional work, is apparently a colleague of NIH director.
Many insiders had hoped that an individual with a proven background and interests in CAM, such
as WAYNE JONAS, MD, former OAM director, would be selected. NIH leadership has taken an
adversarial view toward CAM in the past. The chair may be expected to place a significant stamp
on how expansively the national body will consider CAMs role in the future of US healthcare.
B.
AMERICAN CHIROPRACTIC NETWORK PROMOTES NEW INFORMATION SYSTEM
A flier promoting free attendance to keynotes and exhibits at NMHCC West notes that
AMERICAN CHIROPRACTIC NETWORK is introducing a new ORBIT (Outcomes-Based,
Research-Supported, Best-Practice, Information Technology) information product. ACN
promotes the product as a system to provide health plans with the process, data, structure, data
and support necessary to participate in complementary and alternative medicine. 800-873-4575
End
_________________________
News File #33, October 4, 1999
1.
2.
3.
4.
5.
6.
CALL FOR INFORMATION: PERCENT OF CAM PMPM RETAINED BY HMOs?

BASTYR PRESIDENT JOSEPH PIZZORNO TO RETIRE IN 2000
MILLIMAN & ROBERTSON FREE REPORT ON PRICING A CAM BENEFIT
NETWORK CONTRACTS: ASHP/BCBS ILL, AWHN/UNITED GEORGIA
CONFERENCES
MISCELLANEOUS
THE INTEGRATOR
__________________
____________________
1.
CALL FOR INFORMATION: PERCENT OF CAM PMPM RETAINED BY HMOs?
What percent of an employers per member per month (PMPM) or per employee per month
(PEPM) fee is actually paid to providers of CAM services? Recent, not-for-attribution
INTEGRATOR interviews have found that an astonishingly high percentage of a total CAM
PMPM rider fee is often retained by a managed care firm to recover so-called administrative
costs or marketing. One network executive revealed that the overage charged by HMOs on the
networks contracts ranged from 75% to 200% of the PMPM passed on to the network. Example:
a $2.00 PMPM fee received by the CAM network might be charged out by the HMO to the
employer at $6.00 PMPM. A second executive corroborated this practice, noting that if the
network is taking a sub-capitation from a physician group, the physician group can also extract a
significant slice of the dollar which, on the surface, would appear to be paying for CAM services.
This closely-held information obviously has significant downstream impacts on the ability of an
employer to: a) afford a CAM benefit; and b) understand clearly any cost-offsets and costeffectiveness of the CAM services. For a story on the splits in the pricing of CAM riders, THE
INTEGRATOR seeks information on existing contracts which break out the following: 1) PMPM
price to the employer/purchaser; 2) PMPM paid to the network; 3) the typical range of
administrative fees paid by the network to service the contract; and 4) the portion of the PMPM
which actually reaches the CAM providers. Information on sub-capitation also welcome. The
INTEGRATOR report, if necessary, will be one in which all of the information is provided without
attribution; and the HMO contracts may be listed not by names, but only as #1, #2, #3 and etc. If
requested, information will be kept in confidence. By making public these industry practices, if
they are routine, the intention is to help those involved with the CAM integration to better
understand the economics of network-delivered services. Any clarifying perspectives welcomed.
Contact: JOHN WEEKS, via return e-mail (pihcp@aol.com) or phone: 206-933-7983.
2.
BASTYR PRESIDENT JOSEPH PIZZORNO TO RETIRE FROM PRESIDENCY
No non-MD CAM provider has arguably had more impact on the maturation of the alternative
medicine professions and the integration medicine movement than JOSEPH PIZZORNO, JR, ND,
president of BASTYR UNIVERSITY. When Pizzorno co-founded Bastyr in 1978 with a vision of
science-based natural medicine, most viewed the notion itself as an oxymoron, at best. At a
20th anniversary celebration of the University two years ago, a graduate who was one of the 31
students in Pizzornos first naturopathic medicine class recalled Pizzornos wildly visionary
ambitions. Despite the administrations location in a rented room at a community college, a startup grant of $200 from one of his own patients, and no formal institutional accreditation in the
history of the naturopathic or acupuncture professions, Pizzorno spoke of developing an
institution which would one day be looked to for guidance by leading health care decision-makers
across the health care spectrum. When Pizzorno announced his decision to retire on September
30, 1999, the University could boast the following: 1,100 students in diverse, accredited, natural
health programs; a budget of over $7 million; the first institution chosen by the NIH as an
Alternative Medicine Research Center; appointments of University personnel to a handful of
federal advisory panels; and co-creation of the nations first, government funded, integrated
natural medicine clinic. Pizzornos own appointments include the MICROSOFT CORPORATION
HEALTH CARE ADVISORY BOARD and a position on the SEATTLE/KING COUNTY BOARD
OF HEALTH. During his presidency, Pizzorno co-authored the groundbreaking TEXTBOOK OF
NATURAL MEDICINE (1985, with its seven-ring binder form regularly updated, then published in
hard-bound by CHURCHILL-LIVINGSTONE in August), THE ENCYCLOPEDIA OF NATURAL
MEDICINE (100,000 copies of the 1998 edition sold in the first four months) and TOTAL
WELLNESS. In a letter to friends of the University which accompanied the release, Pizzorno
spoke of his wish to focus my professional and creative energies more directly on the
development of science-based natural medicine and its integration into our culture. Details of his
next professional involvements were not provided. The transition is anticipated for June, 2000.
Pizzorno, who is to be involved in the selection of his successor, is expected to have an as yet
undefined affiliation with Bastyr following his retirement. (Note, by way of disclosure:
INTEGRATOR editor JOHN WEEKS collaborated closely with Pizzorno on a variety of projects
during the decade from 1983-1993.) Contact: Lee Tucker Therriault: 425-602-3107.
3.
MILLIMAN & ROBERTSON FREE REPORT ON PRICING A CAM BENEFIT
The international consulting and actuarial firm of MILLIMAN & ROBERTSON has produced a
small Research Report booklet entitled: Considerations in the Design and Pricing of an
Alternative Medicine Benefit. The 13-page marketing booklet, written by THOMAS SNOOK, an
M&R principal and consulting actuary in the firms Phoenix office, while initially disappointing -there is little new data here -- includes some useful pearls. The major value may be particularly
felt by those integration professionals wishing to gain a better understanding of an actuarys
public thought processes relative to the field. Reference to the usefulness of unpublished,
proprietary insurance company and network data is frequently made, followed by a tantalizing:
M&R is currently gathering insurance-based utilization data for alternative medicine services.
The advantage of using a consultant for this information is that it avoids the proprietary issue
altogether. One place where hard numbers are offered is chiropractic data from M&Rs Health
Cost Guidelines. Office visits per 1,000 insured member per year for these demographic
categories were as follows: all employees (1,119); male employees (972); female employees
(1,306); all spouses (1,254); all children (162); and composite, all members (815). Note that
Snook states that there is significant variation by geographic area which is not captured here.
Snook also places a number on the extent to which PCP referral can reduce use of chiropractic:
[M&R] data indicates that PCP referral requirements can result in utilization rates that are 75%
less than in plans that allow members to self-refer to chiropractors. Snooks involvement with
CAM dates back at least to 1996-1997 when he advised a foundling Arizona network no longer
active but then headed by KONRAD KAIL, PA, ND, an advisory board member to the NIH
NCCAM. Snook is anticipated to be a speaker at the NMHCC east in Atlanta, April 16-19 (see
below). For a copy of the report: Peter Cullum, Donley Communications (212-751-6126); for
Snook: 380-348-9021.
4.
NETWORK CONTRACTS: ASHP/BCBS ILL, AWHN/UNITED GA
A.
ASHP IN BCBS ILLINOIS DISCOUNT
On September 28, 1999, BLUE CROSS BLUE SHIELD OF ILLINOIS announced that its 780,000
HMO members will have access to a discount CAM program which will be handled by San
Diego-based AMERICAN SPECIALTY HEALTH NETWORK. Members affected are those with
HMO ILLINOIS and BLUE ADVANTAGE. Discounts asked of providers will be at 25%.
Announcing the product for the Blues plans was RICK ALLEGRETTI, VP sales for the firms HMO
products. Members will be apprised of the product through newsletters, brochures and (the
firms) website. Included services are chiropractic, acupuncture, massage, fitness centers (at a
lower discount) and a comprehensive internet source for complementary healthcare resources
and information through ASHNs HEALTHYROADS.COM affiliate. This is the first significant
ASHN contract announced outside of the firms former six-state region in the Southwest and
Hawaii. ASHP is also expected to pick by the contract for the Texas Blues plans which are
owned by the same firm which owns the Illinois plans. Contact: for BCBS Illinois, Tony Rau: 312653-6701; and for ASHP, Christine Pink: 619-297-8100, x 3689.
B.
AWHN PICKS UP UNITED DISCOUNT PRODUCT IN GEORGIA
A late September press account in an Atlanta paper included a brief aside that UNITED HEALTH
CARE of Georgia has contracted with Wisconsin-based AMERICAN WHOLE HEALTH
NETWORKS to offer its members a discount product. As reported here previously, Uniteds
home office has been considering a national CAM strategy which was to have been announced
mid-summer of this year. A September 30 call from the INTEGRATOR to Uniteds Minnesota
offices revealed that the HMO was not yet ready to go public about any of the central offices
decisions.
5.
CONFERENCES
A.
US SENATOR HARKIN SLATED TO KEYNOTE NMHCC EAST CAM TRACK
An early heads-up on the CAM Track at the NATIONAL MANAGED HEALTH CARE CONGRESS
scheduled for Atlanta, April 16-19, 2000: US SENATOR TOM HARKIN (D-IA) is anticipated to
provide the keynote for the seven-session track. Harkin is Congress champion of increased
funding for CAM research. Harkin led efforts to create the NIH CENTER FOR
COMPLEMENTARY AND ALTERNATIVE MEDICINE and the national commission on CAM
which is anticipated to get under way soon. The presentation is tentatively scheduled for
Monday, April 17. Harkins participation was made possible through his relationship with
GEORGE DEVRIES, CEO of AMERICAN SPECIALTY HEALTH PLANS, the corporate sponsor
of the track.
B.
LOYOLA UNIVERSITY MEDICAL CENTER BOASTS ROLE IN CAM PROGRAM
A mid-September release from LOYOLA UNIVERSITY MEDICAL CENTER in Chicago spotlighted its involvement with the multi-site, video-based cardiovascular program sponsored by the
PROGRAM IN INTEGRATIVE MEDICINE at the UNIVERSITY OF ARIZONA COLLEGE OF
MEDICINE. The organizations c-chair for its CAM task force, BRIAN OLSHANSKY, MD, director
of cardiac pacing and electrophysiology in Loyalas Cardiovascular Institute, was a featured
speaker at the September 16 program. Contact: 708-216-3100 (Michael Maggio).
C.
TURNOUT AT HOOPER, LUNDY & BOOKMAN CAM SEMINARS
The half-day CAM sessions in San Francisco and Los Angeles (September 21 & 22, respectively)
sponsored by health-law firm HOOPER LUNDY & BOOKMAN were a resounding success,
according to ANGELA MICKELSON, the HLB partner who put together the meetings. Roughly
100 individuals attended the two sessions, 70% in Los Angeles. A strong majority of attendees
were representatives of health systems. The centerpiece of the program were presentations by
KAREN VILLANEUVA, who heads up CAM work with El Segundo, CA-based THE CAMDEN
GROUP, and a second by two principals with Rancho Mirage, CA-based EISENHOWER
MEDICAL CENTER. Eisenhower is exploring development of a major integrative medicine
facility. Camden is Eisenhowers consultant on the project. For Camden: 310-320-3990. For
HLB: 310-551-8170.
D.
CONSENSUS MD TO PRESENT AT AAHP CAM LUNCHEON
BRIAN BOUCH, MD, a physician associated with CONSENSUS HEALTH, will be introducing new
managed care administrators to the topic of CAM at a November 16 luncheon which is part of a
three-day Managed Care in Practice session sponsored by the AMERICAN ASSOCIATION OF
HEALTH PLANS. Last August, for the first time, the AAHP included a presentation on CAM at its
basic training in managed care meeting. The August session drew roughly 100 attendees from
HMOs throughout the United States.
6.
MISCELLANEOUS
A.
EVERGREEN HEALTH CARE SEEKS DIRECTOR OF INTEGRATIVE MEDICINE
EVERGREEN HEALTH CARE, located just east of Seattle, is seeking a new Director of
Integrative Medicine. JANA PALLIS, who has held the position since it was created, is leaving.
Located near BASTYR UNIVERSITY, the institutions executives have been in discussion with
Bastyrs leadership regarding possible collaboration. The system is supported by a hospital tax.
Pay is anticipated to be in the $60,000 to $90,000 range, depending. If you or one of your
colleagues are interested, contact Leah Kliger: 425-334-5926.
B.
CALIFORNIA NDs KICK OFF MAJOR LICENSING CAMPAIGN
On September 29, via a BWHealthWire announcement, the CALIFORNIA ASSOCIATION OF

NATUROPATHIC PHYSICIANS kicked into high gear their ongoing work to create licensing for
naturopathic physicians in the nations most populous state. Heading up the campaign are
DAVID FIELD, ND, LAC and SALLY BLAKE LAMONT, ND, LAC. Naturopathic physicians have
yet to gain licensing in any of the nations more populous states. Contact: 800-521-1200, or
www.canp.org.
C.
GREENFIELD FORMS NEW CAM CONSULTING GROUP
RUSSELL GREENFIELD, MD, a graduate last spring of the PROGRAM IN INTEGRATIVE

MEDICINE fellowship founded by INTEGRATOR advisor ANDREW WEIL, MD, has started a new
CAM consulting group: INTEGRATIVE MEDICINE GUIDANCE TEAM. The groups focus will
be on integrative clinic development, with other work branching into executive and corporate
wellness and community outreach and education, according to materials provided to THE
INTEGRATOR by Greenfield. IMGT will also partner with established business consultants to
provide additional expertise regarding business planning, billing and coding, credentialing and
liability issues. Greenfield is one of the team of professionals brought together by SOLUTIONS
IN INTEGRATIVE MEDICINE for the two-day workshop focusing on integrative clinics and
sponsored by CAMBRIDGE HEALTH RESOURCES last June. 520-615-2785;
imgt@earthlink.net.
End
INDUSTRY/HEALTH News File #33, October 4, 1999
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ELEMENTSWELLNESS CATCHES EYE OF WALL STREET JOURNAL

TWO ON EMPLOYER ACTIVITY: SURVEY FINDINGS, INCREASED ACTIVITY
TWO ON CAM/PUBLIC HEALTH: TCM IN SF HOSPITALS, BASTYR
NETWORK ACTIVITY: CHP/INSURANCE, KAISERS RELATIONSHIPS
CONFERENCES: HARVARD-STANFORD SPONSORS, AAMA, AAOM-AACO
THE INTEGRATOR
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1.
ELEMENTSWELLNESS CATCHES EYE OF WALL STREET JOURNAL
A reporter for the WALL STREET JOURNAL contacted THE INTEGRATOR last week on a story
in development which spun out of an unusual wellness-oriented health insurance product created
by ARNIE FREIMAN of ELEMENTSWELLNESS. The product, called the Elements Whole
Health Program, focuses on what the formulators consider the five elements of wellness:
physical, financial (stress), spiritual, self and relationship. Among the unusual services is the
availability of a financial advisor. The WSJ reporter was interested in the extent to which
insurance products which focus on the front end -- education and health promotion -- are
available. The website includes core references on successes in corporate health promotion
programs. Among the firms contracts are natural foods businesses FOOD FOR THOUGHT,
WHOLE FOODS and BARBARAS BAKERY. The firm is reportedly using a network supplied by
FIRST INTEGRATED HEALTH of Los Angeles. Contact: elementswellness.com; 800-707-7159.
2.
TWO ON EMPLOYER ACTIVITY: SURVEY FINDINGS, INCREASED ACTIVITY
A.
CAM SURVEY RESULTS FROM EMPLOYEE BENEFITS GROUP
The INTERNATIONAL FOUNDATION OF EMPLOYEE BENEFITS PLANS has posted at its

website results of an April 1999 survey of a random sampling of its 3,700 members. Some useful
findings include: 45% of respondents had personally used CAM, one-third of whom said theyd
personally pay more for a benefit which includes CAM; just 19% of the employers offered any
CAM other than chiropractic, while 2/3 offered chiropractic; 2/3 of respondents felt employers
would be offering more CAM in the coming years; and 46% believe that acupuncture will be as
broadly covered in 10 years as chiropractic is today. One finding underlines the role of personal
experience in evaluating CAM: on a question which sought to discover the biggest obstacle
employers face in deciding to cover CAM, responses varied based on history of CAM use. Users
named ignorance and negativity as the chief obstacle, while non-users pointed to inadequate
clinical research. The survey data is available on the IFEBP website: ifebp.org.
B.
CAM ACTION IN THE EMPLOYER WORLD: MERCER PERSPECTIVE
Recent News Files highlighted coverage of CAM in BUSINESS AND HEALTH. An interview
this week with JANICE STANGER, who heads up CAM for benefits consultant WILLIAM
MERCER underlines the new activity. Stanger will soon have a CAM article published in
COMPENSATIONS AND BENEFITS MANAGEMENT and was also approached to write another
article by the AMERICAN COMPENSATION ASSOCIATION, which she described as a one of
the leading human resources associations. Stanger, who has the lead role in the CAM portion of
the MERCER/FOSTER HIGGINS survey data reported in THE INTEGRATOR last May, will also
present on CAM at the associations May 2000 meeting. A second round of the Mercer/Foster
Higgins data will be available next spring. Stanger said there is a growing awareness and
interest (among employers), its coming onto their radar screen. 415-743-8839
3.
TWO ON PUBLIC HEALTH: TCM AND SF HOSPITALS, BASTYR
A.
TCM INTEGRATION INTO SF HEALTH SYSTEM GAINS SUPPORT
San Francisco commissioner MABEL TANG is drawing up legislation to promote the integration
of traditional Chinese medicine -- acupuncture and herbal formulas -- into SAN FRANCISCO
GENERAL HOSPITAL, a second city-owned hospital, and the citys community clinics. The
decision followed a September 21 hearing on the idea, during which commissioners heard broad
public support for the proposal in a city with a significant Asian population. One organization
presenting a formal resolution advocating integration is the SAN FRANCISCO LABOR COUNCIL.
The grassroots campaign for TCM integration is led by GEORGE WEDEMEYER, a Qi-gong
practitioner and health care reform coordinator for the Labor Council. Providing what Wedemeyer
told THE INTEGRATOR was the push behind it were the acupuncture for addiction programs
promoted by the NATIONAL ACUPUNCTURE DETOXIFICATION ASSOCIATION. (A survey of

San Francisco residents recently concluded that the Citys growing population of street people
and panhandlers is the single most important election issue for city races.) Tangs resolution is
expected this month. According to Wedemeyer, Tang has the votes to pass and get the
integration process moving. For Wedemeyer: 415-744-5590, ext. 239.
B.
PUBLIC HEALTH AND CAM: BASTYR PANEL INVOLVES TOP OFFICIALS
On October 8, Washington state leaders of public health at the federal, state and local levels
participated in a three-hour panel for naturopathic medical students at BASTYR UNIVERSITY.
The panel was part of course taught by HENRY ZIEGLER, MD, MPH, prevention director for the
SEATTLE KING COUNTY DEPARTMENT OF PUBLIC HEALTH. Joining him on the panel were
MAXINE HAYES, MD, MPH, the acting director of the states DEPARTMENT OF HEALTH, and
RICHARD LYONS, MD, the administrator for REGION X US PUBLIC HEALTH SERVICES,. The
consonance in values between public health and natural health was explored. One concept
raised: Might there be a potent political partnership between public health and CAM which could
advance both from the relatively low stature each has relative to conventional, disease-oriented
medical care? The prime mover behind the panel was Bastyr associate dean for naturopathic
medicine, PAMELA SNIDER, ND, who co-chairs a two year public health integration effort called
BUILDING BRIDGES with Lyons. (This unique, two-year-old, ongoing collaborative exploration
between Bastyr and public health leaders in the state was featured in the Viewpoint in the April
INTEGRATOR.) INTEGRATOR editor-publisher JOHN WEEKS, a Building Bridges participant,
was brought in to moderate the lively discussion. A discussion piece created prior to the meeting
is available to I/H subscribers on request. For Snider: 425-602-3123; for a copy of the discussion
piece, request by return e-mail, or 206-933-7983.
4.
NETWORK ACTIVITY: CHP/INSURANCE, SIERRA/AVANTE, LANDMARK
A.
CHP PLANS FILES FOR OREGON INSURANCE LICENSE
One sign of the expansion of CAM networks into new markets was the filing last June by
Portland, Oregon-based COMPLEMENTARY HEALTHCARE PLANS (CHP) for an insurance
license. Though CHP was filing in his own state, a principle reason for CHPs move was that our
competitors have licenses, CEO RICHARD BRINKLEY told THE INTEGRATOR. Yet no other
Oregon-based network has a license. However, at least two California-based networks licensed
to accept risk in California are known to be exploring expansion of their operations across their
states northern border. Brinkley expects to use the license to focus on carrying risk for ERISA
(Employee Retirement Income and Security Act) groups. The application is anticipated to take
6-12 months. 503-203-8333
B.
LANDMARK SELLS TO EMPLOYER GROUPS AS SMALL AS TWO
A review of the website for LANDMARK HEALTHCARE recently found that the firm is offering its
insured CAM benefit to employer groups with as few as two employees. The Sacramento-based
firm has also added credentialed networks of massage therapists and is in the process of adding
nutrition services to its core business of chiropractic and acupuncture services.
landmarkhealthcare.com
C.
KAISER AND NETWORK BUSINESS
A brief review of INTEGRATOR back issues suggests that the continuing regional autonomy in
national HMO KAISER is evident in CAM network selection by Kaisers regional plans. While the
review is not exhaustive, known contracts include: Northwest Permanente/COMPLEMENTARY
HEALTHCARE PLANS; California and Hawaii/AMERICAN SPECIALTY HEALTH PLANS; MidAtlantic/AMERICAN CHIROPRACTIC NETWORK for chiropractic and LANDMARK
HEALTHCARE (for other CAM); and Kaiser affiliate, GROUP HEALTH COOPERATIVE OF
PUGET SOUND/AMERICAN WHOLEHEALTH NETWORKS.
4.
CONFERENCES: HARVARD-STANFORD SPONSORS, AAMA, AAOM-AACO
A.
CORPORATE SPONSORS FOR HARVARD-STANFORD CONFERENCE
The list of corporate sponsors for the HARVARD-STANFORD conference on practical

applications have been finalized. Included are two natural products related firms (METABOLIFE,
PHARMAPRINT), a publisher (MICROMEDEX), a government agency (NIH NCCAM) and a CAM
network business (ALIGNIS) Each made educational grants of at least $10,000 to support the
program. Sponsorships for the Harvard/Eisenberg regular spring meeting are currently being
sought. lgershaw@pmpmeeting.com
B.
AMERICAN ACADEMY OF MEDICAL ACUPUNCTURE SYMPOSIUM 2000
The AAMA has announced its year 2000 symposium: April 27-30, 2000. Hyatt Regency,
Orlando, Florida: 323-937-5514,
C.
AAOM LINKS WITH AA COMPLEMENTARY ORTHOPEDICS ON COURSE
The AMERICAN ASSOCIATION OF ORIENTAL MEDICINE has linked with the AMERICAN
ACADEMY OF COMPLEMENTARY ORTHOPEDICS to offer a modular course which provides
hands-on and advanced techniques in orthopedic care. The course and academy are headed
up by ALON MARCUS, DOM, LAC, DAAPM, and includes instructors who are chiropractors as
well as medical doctors. The first of the two-day sessions is December 4-5. All sessions are in
San Francisco. $270-$300 per two-day session. Contact: alonac@aol.com; for information:
www.kober.com/course.htm
5.
PERSONNEL MOVES: TULLY/ALIGNIS, ROBINSON/IMC, SANCHIS LEAVES ASHN
A.
CELIA TULLY, until recently an East Coast business development executive with
LANDMARK HEALTHCARE, has taken a position as vice president for business development
and marketing with ALIGNIS. Tullys departure from Landmark was part of the firms recent
layoff/re-structuring which involved nearly two dozen off its roughly 175 employees.
B.
MARCY ROBINSON, known in CAM circles through her development and management of
CAM educational programs dating back to a two-day session offered by CAMBRIDGE HEALTH
RESOURCES in February, 1997, has left her base at CAMBRIDGE HEALTH RESOURCES to
take a position across town at INTEGRATIVE MEDICINE COMMUNICATIONS. Robinsons
contributions have included leadership with the CASA COLINA conference in Los Angeles in
March, 1998, and the partnership with SOLUTIONS IN INTEGRATIVE MEDICINE for the June
1999 session on integrative clinics. For Robinson: 617-641-2300 x 214.
C.
ANNIE-CLOUDE SANCHIS, former vice president for network development with
AMERICAN SPECIALTY HEALTH NETWORKS, recently left ASHN. Sanchis is presently
seeking new work in the CAM arena. 619-291-9144
End
________________

THE INTEGRATOR for the Business of Alternative Medicine
John Weeks, Publisher-Editor
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AMTA RELEASE RESULTS OF THIRD ANNUAL CONSUMER SURVEY

TWO ON ESTIMATES OF SIGNIFICANT COST SAVINGS
KEY NIH-CAM POSITIONS
MORE ON AWH/WHOLE FOODS $20 MILLION WEB VENTURE
STUDY OF ARTHRITIS PATIENTS: 2/3 USE CAM
NETWORK BUSINESS: ALTERNARE UPDATE
HOUSES BACKS MOVING CHIROS INTO VETERANS SERVICES
INDUSTRY/HEALTH is a joint project of Integration Strategies for Natural Healthcare and

Integrative Medicine Communications (onemedicine.com).
(c) Integrative Medicine Communications 1999
__________________
_________________
1.
AMTA RELEASE RESULTS OF THIRD ANNUAL CONSUMER SURVEY
The third annual consumer survey sponsored by the AMERICAN MASSAGE THERAPY
ASSOCIATION found that 51% of respondents believe that massage can benefit people of all
ages. The survey, conducted by OPINION RESEARCH CORPORATION, in Princeton, NJ,
involved interviews with 1008 adults. Use of massage is growing: since AMTA surveying began
in 1997, the percentage of respondents who had had a massage in the previous five years
steadily rose from 17% to 22% to 27%. (Note that this data is looking at use over a five year
period, not over the previous 12 months.) Notably, those responding in the affirmative among
seniors (65 and up) doubled, from 8% in 1997 to 16% in 1999. The fastest growth, however, is
among the aging Boomers (55-64): 35% in 1999 versus 19% in 1998. One of three respondents
(34%) had a massage which fit into the survey instruments broad view of medical reasons. The
top reasons, among these users: relaxation (21%), relief of muscle soreness (15%) and stress
reduction (13%). Confronting the frequently-stated challenge by insurers that feel good
massage should not be a covered benefit, a release from AMTA notes that just 8% of users had
massage just to pamper themselves. Exploring the same question from a different angle, the
survey found that 50% of respondents view massage as something therapeutic, 19% said it
feels good (23% in 1998) and 24% said it is both therapeutic and feels good (19%). [These
changes suggest a subtle shift toward more of a therapeutic view. Perhaps the American
consumer is quietly arranging to make a stronger case for payment for massage. -- JW] Not
surprisingly, significant demographic and gender variations were found: women were almost over
50% more likely to have had a massage in the previous 12 months as men (18% vs 11%), and
those on the West Coast more than Southerners (23% vs 12%). AMTA reports its present size
as 40,000 members. 847-864-0123; www.amtamassage.org.
2.
TWO ON ESTIMATES OF SIGNIFICANT COST SAVINGS VIA CAM
A.
ACAM PUSH FOR CHELATION AS OPTION TO BYPASS
Expect TED ROZEMA, MD, incoming president of the AMERICAN COLLEGE FOR THE
ADVANCEMENT OF MEDICINE, to make a strong push for greater insurance coverage for
chelation therapy as part of his presidency. Rozema attended the NATIONAL MANAGED
HEALTH CARE CONGRESS with a cost-case for the controversial alternative to bypass in hand.
The most conservative ACAM estimates in the document ask use to consider the potential
savings if 5% of current bypass patients received chelation instead, and that just 60% of these
patients did NOT subsequently require bypass. The nationwide savings: $750 million.
Interestingly, while costs hit break-even in the chelation-promoting associations data if chelation
treatment prevents bypass in just 20% of patients, literature distributed by the organization
argues that bypass is rendered unnecessary in over 80% of cases. (Savings estimates in this
scenario: $1.5 billion.) The political economic intensity in the chelation versus bypass debate
may be the most profound in all of alternative medicine: what is arguably the most lucrative
cash producer in CAM -- performed mainly by ACAMs CAM-oriented medical doctors and
osteopaths, but also by chiropractors and naturopathic physicians in some jurisdictions -- is
pitted against one of the most cost-intensive and lucrative of mainstream medicines procedures.
Rozema hopes that rising cost pressures will prompt more health systems and HMOs to partner
on exploring cost-offset research. For ACAMs clinical and cost data: 800-532-3688
B.
SAVINGS VIA NUTRITIONAL PRODUCTS IN PHARMACEUTICAL STEP THERAPY
The August-September 1999 INTEGRATOR published estimates provided by MICHAEL LEVIN,

COO of Portland, Oregon-based TYLER ENCAPSULATIONS, on the potential cost-savings by
shifting patients from conventional cholesterol-reducing agents to a well-researched natural
product. At the NATIONAL MANAGED HEALTH CARE CONGRESS, Levin, a long-time
pharmaceutical executive before taking his present position, offered data relating to two other
categories of pharmaceutical interventions: antidepressants and gastrointestinal drugs. Levins
argument imbeds appropriate nutritional intervention into pharmaceutical step therapy -- the
idea that lowest cost options should be used first. (Note: The concept aligns neatly with the
CAM/Hippocratic notion of the therapeutic order using the least invasive approach first.)
Levins well-documented estimates, based on a 10% switch in use toward natural alternatives,
are that a participating HMO would save $1.8 million per year per million covered lives on
depression treatment and $1.2 million per year per million covered lives on a nutritional GI
approach. The cholesterol data works out to just under $1 million per year per million lives. Each
approach uses some of the best researched of natural agents. Levin projected the savings at just
a 10% shift toward the CAM approach. However, one might estimate that, were an HMO to allow
patient choice (are you interested in trying a CAM alternative?), a more appropriate multiplier on
the per member monthly savings might be at 20% or 30% of patients. Potential annualized
savings in Levins scenarios would double or triple. Levin is seeking health system, physician
group and HMO partners to explore these potentially beneficial approaches. 503-661-5401
3.
KEY NIH-CAM POSITIONS: STRAUS, KATZ
A.
STEPHEN STRAUS, MD, NEW NCCAM DIRECTOR
The NIH went inside the organization to select the new director of the NIH CENTER FOR
COMPLEMENTARY AND ALTERNATIVE MEDICINE. Named on October 5 was STEPHEN E.
STRAUS, MD, who has served since 1991 as the Chief for the Laboratory of Clinical Investigation
at the NIHs INSTITUTE OF ALLERGY AND INFECTIONUS DISEASE (NIAID). Straus has been
with the NIH most of his career. His research interests include early work on chronic fatigue
syndrome, HIV/AIDS and human and viral infections. INTEGRATOR queries to NIH-funded
researchers involved with CAM yielded no information on any CAM-oriented research by Straus.
The NCCAM release stressed Straus experience related to many diseases for which there are
alternative remedies. His predecessor as acting director, WILLIAM HARLAN, MD, will return to
his post as head of the NIH OFFICE OF DISEASE PREVENTION. For the NCCAM Press Office:
Anita Greene, 301-496-1712; ag19d@nih.gov.
B.
SHEILA KATZ FIRM TO HEAD WHITE HOUSE COMMISSION ON CAM
The early News File notice (#33) that SHIELA KATZ, PHD, is in line to be named to head up the
important national commission on CAM appears to be firm. The White House is expected to
announce the commission at the end of October, with Katz in the leadership position. Katz
background in CAM, like that of Straus, appears at this time to be limited. No details from the
NIH office have been made available. The White House sponsorship has long been sought for
this initiative, which was funded by Congress late in 1998.
4.
MORE ON AWH/WHOLE FOODS $20 MILLION WEB VENTURE
A report in the October issue of NATURAL BUSINESS casts additional light on the partnership
between AMERICAN WHOLEHEALTH and natural foods giant WHOLE FOODS MARKET INC
(WFMI) which created WHOLEHEALTHMD.COM. This site will be linked to WFMIs
WHOLEPEOPLE.COM site, through which products will be sold. Natural Business, viewing the
story from the Whole Foods perspective, reported a September 23 conference call for investors,
industry analysts and media which reportedly left some edgy. In the conference call, WFMI
announced letters of intent with a group of unnamed capital investors for $35 million, which will
represent a 13.5% minority interest in WholePeople.com. The investment is based on a postmoney valuation of $260 million for WholePeople.com. In addition, WFMI purchased a $3.6
million, 16.4% minority stake in REALGOOD TRADING CO, a retailer of environmental and
renewable energy products. WFMI also engaged the $20 million web-deal with AWH and
announced an intent to potentially roll out up to 50 AWH clinics as adjuncts to WFMIs natural
supermarkets. The new web venture will be run out of WFMIs natural product subsidiary
AMRION. A senior editor from NETSCAPE, JANICE CROTTY will be VP of product
development, and TIM LEFKOWITZ of PRICEWATERHOUSECOOPERS will be VP of Business
Development. Natural Business attributed the edginess to investor concerns with both Amrion
and WholePeople.com, each of which as been under-performing. The two divisions will be spun
off so WFMI can focus on its core business of retailing. (Interestingly, the link of these two
divisions to American WholeHealth and to American WholeHealth Networks is an alignment with
two entities which may each be viewed as under-performing. The AWH branded clinic venture,
now at 10 facilities, initially announced plans three years ago to have 50-100 clinics in operation
nationally by 2000. AWHN, the network arm, presently caught with the rest of the network
business in the difficult world of discount/affinity-oriented market, appears to be significantly off its
own projections reported in the 1998 INTEGRATOR CAM NETWORK CEO SURVEY.)
5.
STUDY OF ARTHRITIS PATIENTS: 2/3 USE CAM
The September 21 issue of the ANNALS OF INTERNAL MEDICINE included a report headed by
JAYA K. RAU which found that, among 232 patients with rheumatoid arthritis, 2/3 had used some
alternative medicine. At the time of the survey, 56% of those who had ever used CAM were
presently using CAM, or roughly one-third of the total studied. The users tended to be CAM
explorers: 24% had tried at least three types of CAM. The patients were studied in a range of
clinical settings, including a municipal hospital which cares for the poor, a veterans hospital, a
FFS specialty practice and three private rheumatology practices. One interesting finding: of those
who mentioned CAM use to their conventional physicians, 71% approved continued use of CAM
and just 14% of the physicians told them to stop.
6.
NETWORK BUSINESS: ALTERNARE UPDATE
A recent provider letter from ALTERNARE notes the following client list. In Oregon: LIFEWISE,
PACIFIC HERITAGE ADMINISRATORS, QUALMED (chiropractic only on June 1, 1999, with
expansion to other providers, Fall 1999); CENTRA (CITY OF PORTLAND, 10,000 employees,
also as of June 1), and OREGON HEALTH SCIENCES UNIVERSITY OHSU workcomp. In
Washington: 3 Blue Cross plans/affiliates (PREMERA, MSC, HEALTHPLUS), UNITED
HEALTHCARE, plus some TPA, labor and workers comp business (TRUSTED PLANS SERVICE
CORPORATION, THE TPA, PACIFIC HERITAGE ADMINISTRATORS, HEALTHCOMP and
CORVEL.) In the newsletter, Alternare also noted its interest in taking articles from network
providers for the firms website. www.alternare.com
7.
HOUSES BACKS MOVING CHIROS INTO VETERANS SERVICES
On September 30, the US HOUSE OF REPRESENTATIVES passed HR 2116, the VETERANS

MILLENIUM HEALTH CARE ACT, which includes a provision which requires the US Secretary of
Health, after consultation with chiropractors, to established within 120 days a policy regarding
the role of chiropractic treatment in the care of veterans. The report on the bill from the HOUSE
VETERANs AFFAIRS COMMITTEE cites research support, the growing use of complementary
care in traditional medical practice, and an expressed intent that the Secretarys report permit
greater access to chiropractic care, particularly in rural and underserved areas. The bill has
been strongly backed by the AMERICAN CHIROPRACTIC ASSOCIATION and the professions
ASSOCIATION OF CHIROPRACTIC COLLEGES. For the ACA: Teri Howell, 703-812-0247,
End
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to THE INTEGRATOR for the Business of Alternative Medicine
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HALLMARK HEALTH ADDS PEDIATRIC CAM

CHIRO AS PCP PILOT WITH BLUES/HMO ILLINOIS GAINS EXPOSURE
CAM NETWORKS MOVE TOWARD WEB-BASED PRODUCT SALES
SEATTLE ACUP SCHOOL LINKS WITH CLINIC TO REACH THE UNDERSERVED
PHYSICAL THERAPIST PERFORMANCE OF MANIPULATION AFFIRMED BY HCFA
NETWORK NEWS: HEALTHSAVER, ASHP/KAISER, AWHN/N-CAM
CANADIANS: HERBS AS EFFECTIVE AS PRESCRIPTION DRUGS, SAYS SURVEY

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1. HALLMARK HEALTH ADDS PEDIATRIC CAM

A firm which bills itself as the largest independent health care system in the state of
Massachusetts has announced plans to add massage, Reiki, shiatsu and foot reflexology to care
for expectant mothers and their newborns. The Malden-based HALLMARK HEALTH
CORPORATION, a 1,200 physician, 4,600 employee group, cited numerous studies that confirm
the benefit of alternative therapies for pregnant women. The list of well-researched CAM
approaches for mothers included: muscle flexibility, blood pressure stabilization, improved
circulation, ability to withstand contractions, muscle pain reduction, enhanced breast feeding and
hastening of healing and of sleep. For CAM treatments for newborns and premature infants:
improved sleep patterns, enhanced bonding, diminishing anxious behavior, reduced heart rates
and stress hormones, strengthens respiration and cardiac output, and may relieve colic, gas and
constipation. CHRISTINE CANDIO, R.N., M.P.A., C.H.E., who directs Hallmarks Women's and
Children's Service states: "This a valuable, new dimension of care that we believe will become
increasingly popular. The firm is partnering with the HUGGINS CENTER FOR ALTERNATIVE
THERAPIES, in Melrose, MA, for the program. Contact: Kathleen Franzese at 781-388-4093; or
www.hallmarkhealth.org.
2. CHIRO AS PCP PILOT WITH BLUES/HMO ILLINOIS GAINS EXPOSURE
On October 21, 1999, a headline in an article in the CHICAGO TRIBUNE stated, simply:
Chiropractors Get Blues Stamp of Approval. The reference was not to the competition on
discount offerings between Rush Prudential/AWHN and the Blues/ASHP. Rather, the article, by
reporter Bruce Japsen, focused on the pilot project between Chicago-based network,
ALTERNATIVE MEDICINE INC, and HMO ILLINOIS, a 700,000 member Blues plan which allows
their members to choose one of AMIs 16 credentialed chiropractors as their primary-care
physician. DAVID WICKES, DC, senior VP and provost of NATIONAL COLLEGE OF
CHIROPRACTIC, spoke of the AMI model as starting to pick up speed because its a recognition
of a function chiropractors have been filling for years. The benefit provokes an array of
comments. The president of the ILLINOIS ACADEMY OF FAMILY PHYSICIANS said she would
oppose a plan that gave chiropractors gatekeeper status without supervision of an MD/DO.
However, ALLAN KORN, MD, a senior VP with the Chicago-based BLUE CROSS BLUE SHIELD
ASSOCIATION defended the pilot by noting that the AMI credentialing of chiropractors was
through a committee which included MDs. Said Korn: The public seems to be saying that we
like these people and we trust them. At the end of the day, it represents a group of chiropractors
and a group of doctors who have said we trust each other and we can work together. AMI is
presently engaging a major push to increase those choosing AMI during open enrollment. A
statement from HUMANA spokeswoman MARY SELLERS noted her plan didnt anticipate
following suit anytime in the near future. AMI co-founder RICHARD SARNAT, MD, noted in a
presentation at the NMHCC West on October 18, 1999, that he expects to prove his model not
disease by disease -- it would take a lifetime -- but by comparison with normative and with
(conventional) utilization. Sarnats firm is at risk on the benefit, receiving in the area of $40
PMPM to manage all outpatient services. The PCCP (primary care chiropractic physician)
network is backed by networks of conventional service providers. For AMI, ZECHMAN, CEO:
847-433-9946.
3. CAM NETWORKS MOVE TOWARD WEB-BASED PRODUCT SALES
A. I/H BREAKFAST CLARIFIES CRUCIAL ROLE OF PRODUCT SALES FOR NETWORKS
The October 18, 1999, breakfast gathering of 17 INDUSTRY/HEALTH subscriber executives
provided a kind of answer to the question of the hour: Is there life after discounts? The short
answer, besides patience until more CAM is covered: natural product sales. Under some
estimates, the only way networks can give away discount products is that, at least under hopeful
projections, networks may have an opportunity to create significant revenue through product
sales to a quasi-captive audience of HMO members. Some conservative estimates suggest that
network revenues off product sales may rapidly reach $0.15-$0.25 PMPM for networks which
have moved into this arena. So while a discounted affinity product for members to access a
credentialed network of suppliers could be given away or run as little as $0.00-$0.05 PMPM, the
network could potentially make a handsome return on the product side of the business. One
somewhat disconcerting side-effect of this possibly necessary business venture for networks: the
focus of network integration activity would reasonably be expected to shift away from providerdriven services toward maximizing returns on product sales. Integration of CAM and
conventional providers -- the labor base of CAM integration -- may receive less attention.
Ironically, the CAM network industry may be moving, from different but still economic pressures,
toward a strong pharmaceutical focus -- albeit natural products -- even as a similar shift toward
increased reliance on pharmacy is underway in conventional outpatient medicine. There, time
pressures on providers is prompting significant increases in prescriptions. In both instances, time
with providers moves to the back seat.
B. CURRENT STATE OF NATURAL PRODUCT SALES ONLINE
Jockeying for leadership in online natural products sales is a regular part of the daily newswires.
The most recently claimant to leadership is VITAMINS.COM, which stated that its on a $15million annualized run rate in online sales, with volume up 300 percent in one month, and 1,000
orders a day, according to ROBERT HAFT, president. The firm has already spent $3-million on
advertising and is in the midst of a $7.5 million fall campaign targeting 10 major cities. The
campaigns theme: Vitamins Cost Too Much, is surely not a warming message for networks
which are trying to escape their industrys own discount environment. Vitamin.com offers free
shipping and $25 off on first orders. The firm, founded in 1997, offers vitamins, herbs,
supplements and natural cosmetics traditionally found in health food stores at 20 percent to 50
percent below store prices. Besides operating the Vitamins.com website, the firm has 10 click
and mortar demonstration stores and a direct retail catalogue operation. Projected 1999
revenues for Vitamins.com are $28 million. The competitiveness of the e-tailing of natural
products, as well as the attractiveness of these initiatives to venture capital, is described in an
article in the September issue of NATURAL BUSINESS. Vitamins.com lost $5.7 million from its
April 1998 inception through March 31, 1999. In the first quarter of 1999, the firm had $1.9 million
in net sales and $1.89 million in losses. MotherNature.com lost $15-million on $954,650 in sales
in the first half of 1999. MATT PATSKY, managing director with ADAMS HARNESS & HILL
argued that three or four players will end up controlling most of the healthy living e-commerce
market. Noted to watch were: HealthNotes Online, MotherNature.com and Healthshop.com.
The question for networks is whether their discounts on products can compete with the cutthroat discounting among the larger dot-com firms seeking to become one of the handful of
survivors and industry leaders.
4. SEATTLE ACUP SCHOOL LINKS WITH CLINIC TO REACH THE UNDERSERVED
On October 12, 1999, the NORTHWEST INSTITUTE OF ACUPUNCUTRE AND ORIENTAL
MEDICINE announced an affiliation with the CAROLYN DOWNS FAMILY MEDICIAL CENTER to
offer acupuncture services. The clinic has a high minority and underserved clientele, and
acupuncture will be offered on a sliding scale with none denied, according to NIAOMs clinic
supervisor DONNA CAREY. A NIAOM spokesperson reports three successes using moxibustion
on turning breech babies. NIAOMs students also offer services through a network of 14
community clinics, including one at HARBORVIEW HOSPITAL, a public hospital managed by the
UNIVERSITY OF WASHINGTON. For CDFMC: Dawne Hood: 206/461-4587; for NIAOM, Julie
Dittmar: 206/633-2419; www.niaom.edu
5. PHYSICAL THERAPIST PERFORMANCE OF MANIPULATION AFFIRMED BY HCFA

A September 29, 1999, PR Newswire statement includes the following useful comment on the
ongoing battle between the AMERICAN CHIROPRACTIC ASSOCIATION and the nations
physical therapists regarding performance of manipulation under MEDICARE. This battle is
followed in THE INTEGRATOR in part as a bell-weather on future guild/standards issues in CAM
reimbursement which other CAM professions may face. States Thomas Gustafson, director of
the Plan and Provider Purchasing Policy Group within the Center for Health Plans and Providers
at the Health Care Financing Administration (HCFA): "The Medicare statute requires Medicare
managed care plans to make available all Medicare services, including physician services, to
their Medicare enrollees. Physician services include manual manipulation of the spine to correct
a subluxation. Plans must make available physicians to deliver this service to Medicare
enrollees. These physicians may include any providers defined as physicians under Medicare
law. This definition includes, but is not limited to, chiropractors. Plans may also use physical
therapists to provide services as long as they operate in accordance with state law. The plans,
however, cannot rely on physical therapists for this purpose to the exclusion of physicians." The
contact for the AMERICAN PHYSICAL THERAPY ASSOCIATION is Jennifer Hunt: 703-7063216.
6.
NETWORK NEWS: HEALTHSAVER, ASHP/KAISER, AWHN/N-CAM
A. NEW HEALTHSAVER DISCOUNT CARD GOES NATIONAL

HEALTHSAVER CLUB debuted this month with a new mainstream medicine plus CAM discount
card. The firm uses a website (healthsaverclub.com) as well as an infomercial and direct mail to
promote its services and networks. The club claims 18,000 chiropractors in its network, as well
as 20,000 alternative medicine providers. Total providers -- CAM and conventional -- are
anticipated to reach 300,000 by the end of the year. The marketing targets the uninsured, at 44
million and rising, according to LEILA CHANG, executive director of the firm. The cost of the card
(membership) is $89 per person, per year or $109 per family, per year, with unlimited
dependents. The firm is commencing $5 million marketing program. The focus is on Florida,
with direct mail targeting 700,000 households. 877-468-5583
B. KAISER MID-ATLANTIC WORKING WITH ASHP ON NETWORK
KAISER-MID-ATLANTIC is reportedly contracting with AMERICAN SPECIALTY HEALTH PLANS
on development of a CAM network. THE INTEGRATOR was informed of this by advisor
ELLIOTT GREENE, LMT. Greene noted that massage therapists are actively being recruited in
that now active CAM discount market. CONSENSUS HEALTH is recruiting for its contract with a
Blue plan, CAREFIRST.
C. AWHN/N-CAM UPDATE
On October 19, AMERICAN WHOLEHEALTH NETWORKS formally announced its acquisition
of the network of networks, N-CAM (National Complementary and Alternative Medicine). The reorganized group (see July and August-September INTEGRATORs) together with AWHNs
providers now total 12,000 CAM practitioners, down from the 30,000 published in early N-CAM
releases. The AWHN release, announcing its 50% stake, positioned the enhanced network as
the only nationwide alternative medicine network, in the release. In other N-CAM-related news,
THE INTEGRATOR has learned that the former N-CAM members who left the fold following the
July shake-out meeting may be exploring development of their own ongoing partnership. The
source noted that part of the reason some networks left N-CAM was an AWHN requirement that
N-CAM affiliates not compete with AWHN on managed care bids over a certain size. For AWHN,
contact Andrew Aho: 651-426-4330.
7. CANADIANS: HERBS AS EFFECTIVE AS PRESCRIPTION DRUGS, SAYS SURVEY

The survey found that an over 2/3 of Canadians believe herbs can be as effective as OTCs, and
94 Percent believe herbal supplements are becoming more accepted by medial practitioners.
The data, from an October 14 Gallup survey, was funded by Northern California-based
TRADITIONAL MEDICINALS, a tea manufacturer. Close to one in five Canadians said they have
been to a complementary and alternative medical (CAM) practitioner such as a naturopathic
doctor, a medical herbalist or a homeopathic doctor.* The top reasons for not having consulted
an alternative health practitioner were that the person does not get sick (22 percent) and that their
health insurance does not pay for this type of service (17 percent). The study found that those
who drink medicinal teas, 7 percent do so daily, close to 10 percent a few times a week, and 14
percent a few times a month. The reasons given for drinking medicinal teas ranged from
maintaining or enhancing overall health and preventing specific health problems (54 percent), to
treating existing symptoms or health problems (34 percent). In Canada, traditional herbal
medicine is a fast-growing complement to conventional healthcare. Consumers spend $3.8 billion
annually on "alternative" medicines and the natural products market is growing 15 percent
annually. PHONE FOR TRADITIONAL MEDICINALS
End
____________________________
News File #37, November 4, 1999
1.
2.
3.
4.
5.
EISENHOWER MEDICAL: INSIGHTS FROM CAM CLINIC IN DEVELOPMENT

LUCENT TECHNOLOGIES REPORT ON CAM BENEFIT
NEW GRANT AWARDS FROM THE NIH CCAM AND NIH ODS
EDUCATIONAL PROGRAMS: PIM/ASSOCIATE FELLOW, NYMC/HOMEOPATHY
MISCELLANEOUS: BOTANICAL STANDARDS, PCCPS, STANFORD

__________________
____________________
1.
EISENHOWER MEDICAL: INSIGHTS FROM CAM CLINIC IN DEVELOPMENT
Rancho Mirage-based EISENHOWER MEDICAL CENTER is in the process of developing an

integrative clinic. JOSEPH MACK, VP for Physician Services and Network Integration, presented
on the initiative at the September HOOPER LUNDY BOOKMAN CAM conference. The planning
for the 10,000 square foot facility began, in part, based on the acquisition of a former bank
building adjacent Eisenhower which was purchased, Mack stated tongue-in-cheek, as part of the
centers manifest destiny. An October 23, 1997, mission statement of the Medical Executive
Committee supporting a commitment to provide preventative and wellness services was
presented as the authority on which the initiative was undertaken. CAM was part of the centers
plan. Mack noted that the biggest challenge is proof that the services are complementary and
will not do harm. Research on the facility discovered CAM activity with three affiliates: 1)
acupuncture and stress reduction at the BETTY FORD CENTER; 2) acupuncture and herbs at
the DESERT ORTHOPEDIC CENTER; 3) acupuncture services provided by a medical doctor at
DESERT EAR NOSE AND THROAT; and 4) acupuncture as pain management by two medical
doctors at RANCHO MIRAGE ANESTHESIA CONSULTANTS. Core issues are
governance/control, ownership/equity and compensation structures: The physicians are open to
it but the bottom line is money. Interviews of 12 physicians found that 11 were supportive.
Referral service inquiries found the following requests between September 1, 1997 and July 30,
1998: holistic (135), acupuncture (102), chiropractic (77), stress reduction (57), chelation
therapy (45), massage therapy (5) and magnetic therapy (2). Mack noted that, despite consumer
interest in chiropractic and chelation, the medical staff is not ready for offering them and they
would not be included in service offerings. Top interest of the 12 interviewed physicians were:
massage (10), medicinary (10), acupuncture (10) and meditation/relaxation (9). Mack, whose
refreshingly candid presentation well-captured the internal challenges of integration, noted that he
is essentially functioning as a change manager -- we need to artfully manage how quickly we
(integrate). He views the integrative clinic as a beachhead with the least resistance, which can
then create leverage to help move CAM services back into the hospital. Eisenhowers
assessment is that the build-out will be three times more expensive than usual treatment facilities,
at $150 per square foot. The model is not anticipated to be an insurance vehicle. A significant
base for funding is anticipated to by philanthropy, where Mack anticipates multiple opportunities.
The center is anticipating working with NATIONAL COLLEGE OF NATUROPATHIC MEDICINE
on development of its natural pharmacy. CHRIS MELITIS, ND, Clinic Manager at NCNM, is the
point person at the federally recognized naturopathic medical school. The medical center is
working with KAREN VILLANEUVA of THE CAMDEN GROUP consulting firm on the project.
PHONE FOR EISENHOWER AND CAMDEN.
2.
LUCENT TECHNOLOGIES REPORT ON CAM BENEFIT
A good grounding in an employers approach to CAM was offered by PAMELA KROL of LUCENT
TECHNOLOGIES at the Stanford-Harvard Practical Applications conference on October 16,
1999. The firm budgets $800 million in annual healthcare expenditures for 110,000 employees
and 120,000 retirees. The firm has offered chiropractic for over 10 years, with acupuncture
added January 1, 1996. Each benefit requires a $10 co-pay on up to 60 visits per year. The
benefits were negotiated through a combination of bargaining, competitiveness issues and belief
in the effectiveness of an integrated approach. The 1999 data showed the following:
Chiropractic -- 65,903 visits by 6,141 unique patients, and a total of $1,085,745;
Acupuncture -- 1359 visits, 215 patients at a total cost of $47,249.
st
KROL noted that attributes of 21 Century Products will be: demonstration of high employee
satisfaction, cost-effectiveness measures include lost time from work, and a focus on consumers
and consumerism. Put differently, cost of medical services is just one quadrant of concern,
together with employee performance, satisfaction and quality. CAM networks pushing toward a
national reach will note KROLs statement that the firm will continue to evaluate
comprehensiveness of networks and evaluation of alternative medicine products.
3.
NEW GRANT AWARDS FROM THE NIH CCAM AND NIH ODS
The NIH CENTER FOR COMPLEMENTARY AND ALTERNATIVE MEDICINE (NCCAM) not only
has a new, increased funding and a new advisory board. The NCCAM is also shaping up with a
surprisingly new list of CAM research centers. Of the original 10 centers funded by the NIH, only
two had their grants renewed: the UNIVERSITY OF MARYLAND program headed by BRIAN
BERMAN, MD, and the program at COLUMBIA UNIVERSITY. Among those to lose center
status were those at HARVARD/BETH-ISRAEL and STANFORD UNIVERSITY. Observations by
those close to the NIH process ranged from shock that these internal CAM research teams, only
recently established, would lose critical operational support, to comments that competitors had
proposals which were more in line with the NIHs historic research agenda. Some new
developments at the NIH follow.
A.
MINORITIES THE FOCUS OF MAHARISHI UNIVERSITY $8-MILLION GRANT
Fairfield, Ohio-based MAHARISHI UNIVERSITY OF MANAGEMENT was awarded an $8 million

grant to explore the effectiveness of CAM approaches for the treatment and prevention of
cardiovascular disease in African Americans and other high-risk groups, according to a
September 30 release. Principal investigator is ROBERT SCHNEIDER, MD, who serves as the
dean of the College of Maharishi Vedic Medicine. Schneiders team has previously carried out
research on grants totaling over $10.5 million. The first focus will evaluate the effects of
Transcendental Medication and antioxidant herbs. Other chronic diseases, including cancer, will
also be studied. Collaborating institutions are the UNIVERSITY OF IOWA COLLEGE OF
MEDICINE, MOREHOUSE SCHOOL OF MEDICINE, CHARLES R. DREW UNIVERSITY OF
MEDICINE AND SCIENCES, and CEDARS-SINAI MEDICAL CENTER.
B.
PORTLAND, OR-BASED CONSORTIUM: TWO GRANTS TOTALING $16 MILLION
An even broader consortium of institutions will participate in the research by the new OREGON
CENTER FOR COMPLEMENTARY AND ALTERNATIVE MEDICINE (OCCAM). Institutions
include KAISER CENTER FOR HEALTH RESEARCH, OREGON HEALTH SCIENCES SCHOOL
OF DENTISTRY, WESTERN STATES CHIROPRACTIC COLLEGE, NATIONAL COLLEGE OF
NATRUOPATHIC MEDICINE, OREGON COLLEGE OF ORIENTAL MEDICINE, PORTLANT
VETERAN AFFAIRS MEDICAL CENTER and the L;INUS PAULING INSWTITUTE AT OREGON
STATE UNIVERSITY. Also involved is the OREGON SCHOOL OF MASSAGE. Portland is the
only metropolitan area in the U.S. which boast leading academic centers for all the CAM and
conventional disciplines. Research headed by Kaisers ALEX WHITE, DDS, DrPh, will initially
focus on two craniofacial disorders: temporomandibular joint disorder and periodontal disease.
Focused grants for this work approach $8 million. BARRY AKEN, MD, based at OHSU, will be
principal investigator on $7.8 million in studies looking at CAM in multiple sclerosis, age-related
cognitive decline, and Alzheimers disease. A joint release form OCCAM noted that the
conditions selected are ones in which conventional treatments have not proven fully effective,
while alternative treatments have shown promise but have not been scientifically tested.
Contact: Jerry Gersbach: 503-813-4820.
C.
DIETARY SUPPLEMENTS OFFICE: $7.9 MILLION TO FARNSWORTHS UIC GROUP
The NIH OFFICE OF DIETARY SUPPLEMENTS (NIH ODS) has granted $7.9 million to the
UNIVERSITY OF ILLI8NOIS AT CHICAGO (UIC) COLLEGE OF PHARMACY to establish a
CENTER FOR DIETARY SUPPLEMENTS RESEARCH ON BOTANICALS . Principal
investigator is NORMAN FARNSWORTH, a research professor in pharmacognosy and a leader
in his field since the era when the field almost disappeared. The schools Natural Products Alert
database was developed under Farnsworths direction. Initial focus of the center will be on
womens health and will be linked to UICs CENTER OF EXCELLENCE IN WOMENS HEALTH,
funded by US HEALTH AND HUMAN SERVICES. Top ten herbs have been identified for study
(Cohosh, Red Clover, Chaste berry, Hops, Dong Quai, Asian Ginseng, Gingko, Licorice,
Cranberry and Valerian). The dietary supplements office is separate from NCCAM. The center
will also develop online continuing education and help to advance training opportunities for wouldbe pharmacognocists. With 11 on staff, UIC has the largest group in the United States. 312-9968277
D.
NIH ODS: $7.5 MILLION TO UCLA GROUP/PHARMANEX LEADERS
The
UCLA CENTER FOR DIETARY SUPPLEMENTS RESEARCH: BOTANICALS will be
created under a $7.5 million grant from NIH ODS. Principal investigator for the grant, which will
look at the safety and efficacy of natural products, is DAVID HEBER, MD, who has directed
UCLAs CENTER FOR HUMAN NUTRITION. Co-director of the new Center will be LESTER
MITCHER, MD, from the UNIVERSITY OF KANSAS. Both professionals are involved with San
Francisco, California-based natural products firm PHARMANEX, Inc. Heber chairs the firms
Scientific Advisory Board, and Mitcher Is a member. At least two products to be studied, red
yeast and green tea, are key factors in top Pharmanex products, according to a release from the
firm. Hebers work on red yeast led to the developments of Pharmanexs Cholestin product.
www.pharmanex.com.
4.
EDUCATIONAL PROGRAMS: PIM/ASSOCIATE FELLOW, NYMC/HOMEOPATHY
A.
WEIL GROUP ANNOUNCES ASSOCIATE FELLOWSHIP
In an attempt to fan out its offerings to educate a broader array of physicians in integrative
medicine, the PROGRAM IN INTEGRATIVE MEDICINE has announced a new Associate
Fellowship offering. The initial class, to commence August 2000, is anticipated to be 40
physicians from around the world, according to a release. The fellowship will emphasize
clinical applications and those completing the program would be prepared to both make
informed referrals and choose and integrate the most appropriate treatment modalities for
patients. The class will meet from three, one-week sessions in Tucson, with additional training
via the web, tapes, online discussions, etc.. http://integrativemedicine.arizona.edu/af/
B.
NEW YORK MEDICAL COLLEGE OFFERS HOMEOPATHY CME
On November 19-20, NEW YORK MEDICAL COLLEGE is offering a two-day course on Medical
Homeopathy. The course is notable two reasons. First, this is the second CAM program
offering through RAVINDER MAMTANI, MD, with the Department of Community and Preventive
Medicine at the medical college, following an acupuncture program currently underway. Second,
the focus on homeopathy is unusual. This natural health modality and system which, while
bolstered by perhaps the best evidence base in CAM other than mind-body, according to the
COCHRAN COLLABORATIONs CAM leader BRIAN BERMAN, MD, is the most difficult for the
Western scientific mind to comprehend. Cost: MD, DO, DDS: $475; other health care providers:
$295. White Plains, New York. For information: 914-594-4253
5.
MISCELLANEOUS: BOTANICAL STANDARDS, PCCPS, STANFORD
A.
RESEARCH BACKING ON QUALITY STANDARDS IN BOTANICALS
Woburn, Massachusetts-based APHIOS CORPORATION announced on November 3, 1999, that

the firm had been awarded a fast-track SBIR grant from the NIH for what the firm believes may be
an improved St. John's Wort product. The grant is entitled "Method for Making an Improved St.
John's Wort Product." Aphios claims to be improving the quality and manufacturing of St. John's
Wort by utilizing supercritical fluids and near-critical fluids w/wo polar cosolvents such as alcohols
(SuperFluids(tm)). The firm is collaborating with Paracelsian, Inc., Ithaca, NY which has
developed functional assays for herbs, botanicals and other dietary supplements. Aphios is
developing research tools and industrial processes for the enhanced discovery, manufacturing,
delivery and safety of naturally derived and genetically engineered therapeutics for the treatment
of cancer, AIDS, and other infectious diseases in a cost-effective manner. ." The approach, if
successful, could leave to a process patent through which the firm could have more incentive to
fund research using its methodology. For Aphios Corporation Trevor P. Castor, (781) 932-6933;
aphios@aol.com
B.
ANOTHER DISCOUNT PROGRAM POPS UP IN MARYLAND
INTEGRATOR advisor ELIOTT GREENE, NCTMB, notes that massage therapists in Maryland
are now deceiving applications for yet another discount card, called Alliance Healthcare. The firm
exhibited at the October national convention of the AMERICAN MASSAGE THERAPY
ASSOCIATION. The Norcross, Georgia-based firm is attempting to attract providers by allowing
providers to specify the level of discount that will be offered, with 20-35% recommended.
President if THOMAS KISER, and VP for network development is JAMES MAHONY. 877-5722244; www. alliancehealthcard.com.
C.
CHIRO PCCP PRODUCT GENERATES SUBSTANTIAL MEDIA
Publicity during open-enrollment on CAM product delivered by ALTERNATIVE MEDICINE INC.

for HMO ILLINOIS (a Blues plan) offering a chiropractor as PCP -- actually PCCP (Primary Care
Chiropractic Physician) -- has stirred a good deal of media and feedback in the Chicago area. A
report in BUSINESS INSURANCE (a Cranes publishing product)The program now features 16
PCCPs, and expects to have 40 in place by 1/1/2000. NATIONAL COLLEGE OF
CHIROPRACTIC is involved in credentialing standards. Some industry sources questioned the
PCCP use of chiros. JOYCE COOK, VP for benefit planning at NMOPRTHERN TRUST BANK
supports usual chiropractic coverage but adds: It's a bit early to identify whether (using
chiropractors as PCPs) is meeting a need.'' MIKE PIKELNY a benefits consultant with
HARTMARX noted both the potential value of a chiropractic benefit without a limit on visits, and
his interest in seeing how many people would choose the PCCPs. A fellow named JOHN
WEEKS is cited in the article as saying: AMI's data collection efforts in conjunction with its link
with HMO Illinois could lend more credibility to the use of alternative medicine as a way to reduce
health care costs. We'll have the opportunity to look at the cost implications of treating people
from a natural medicine standpoint.'' JIM ZECHMAN from AMI states that, based on very early
data from the first year of the pilot, with just 100 lives being covered: ``We're seeing a reduction
of more than 50% in medical costs. JEROME MCANDREWS, DC, spokesperson for the
AMERICAN CHIROPRACTIC ASSOCIATION states: There have been rare instances where
chiropractors were used as PCPs in HMOs. No specific were offered. Finally, EDWARD HILL,
MD, a member of the American Medical Assn.'s Board of Trustees, expressed concern that
chiropractors may not ``have the broad comprehensive training necessary to effectively manage
a person's health care: One of the hardest jobs in American medicine today is to be a good
primary care practitioner.'' Hill pointed out one inefficiency in the PCCP strategy: Chiropractors
don't have prescription writing or hospital admission privileges in most states. That could be a
significant problem. I don't see how that would be very economical. The story was written by
Joanne Wojcik Kochaniec.
D. STANFORD CAM CLINIC PUSHES CAM CANCER CARE
The STANFORD COMPLEMENTARY MEDICINE CLINIC (see Feb-Mar 1999 INTEGRATOR) is
sponsoring a series of courses for patients on supportive CAM care. The programs are lead by
oncologist ERNEST H. ROSENBAUM, MD, who directs the Cancer Supportive Care Program at
the clinic. In a release, Rosenbaum states that research shows that patients who are involved in
their own care and who take an active role in their treatment feel better and do better,
Rosenbaum said. He noted that exercise and diet can have measurable effects on combating
illness, fatigue, depression and other common side effects of cancer chemotherapy, radiation
therapy and immunotherapy: "Our hope is that once patients see the value of these coping
classes they will continue to choose others and sign up for regular programs to improve their
coping skills and feelings of well being. 650/498-5566.
End
INDUSTRY/HEALTH News File #37, November 4, 1999
____________________________
INDUSTRY/HEALTH NEWS FILE #38
November 16, 1999
1.
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5.
HENNEPIN CAM CLINIC FINDS VALUE IN ADDITION OF A CHIROPRACTOR

TWO ON GUIDED IMAGERY ADVANCES IN INTEGRATION
MOTHERNATURE.COM CONTRACTS WITH AANP FOR WEB/PRODUCT
NETWORKS & DISCOUNTS (AHO/employers, California Business feature, plus)
MISCELLANEOUS (FAACT, APHA/Pizzorno, BU Entrepreneurship, plus)

__________________
____________________
1. HENNEPIN CAM CLINIC FINDS VALUE IN ADDITION OF A CHIROPRACTOR

One surprising finding of the Benchmarking Integrative Clinic Development INTEGRATOR
survey is that chiropractors, despite their use by consumers, are frequently not included in the
clinical mix in health system based clinics. One such clinic, the ALTERNATIVE MEDICINE
CLINIC operated by Minnesota-based HENNEPIN MEDICAL ASSOCIATES, recently changed its
mix to include a chiropractor and is benefiting from this change, THE INTEGRATOR recently
learned. Clinic administrator DEBRA CANFIELD states that the July 1 addition of chiropractic
services followed a two tier process of selection. Key factors in the selection were: 1) on
musculoskeletal complaints, the DC generally would only see patients 6-10 before referring them
on for other care; 2) the provider was part of a network, CHIROPRACTIFC RESEARCH GROUP,
which Canfield says is committed to moving chiropractors into both hospital and ambulatory care
settings; and 3) the fact that the chiropractor does not restrict his services to manipulation, but
also uses various postural modalities as well as self-care training. The latter fits with our clinics
philosophy, states Canfield. The chiropractor is seeing steadily increasing numbers of referrals,
says Canfield, especially from our primary care clinics. The chiropractor also does a good deal
of public speaking, to physician groups, clinic gatherings and to community things. PHONE
2. TWO ON GUIDED IMAGERY ADVANCES IN INTEGRATION
A. PIONEER ROSSMAN DEVELOPS PROGRAM WITH CONSENSUS/CA BLUE SHIELD
Its a scandal that guided imagery is alternative when it should be part of every good therapeutic
interaction, states MARTIN ROSSMAN, MD, a co-founder of the Northern California-based
ACADEMY OF GUIDED IMAGERY. In an INTEGRATOR interview, ROSSMAN spoke of the
potential and challenges of creating a recognized status for practitioners of guided imagery. He
believes that a good place to start is the educational standards developed by his academy, which
has now certified over 650 professionals, the majority of whom are in California. CALIFORNIA
BLUE SHIELD asked Rossman and his associates to develop an imagery-oriented stress
management program for the insurers members and offered by the academys certified
practitioners. The present construct is a three-session (originally 6 session) program, Imaging
Health, which costs members $135 and includes, besides the classes, three tapes and a work
book. The program has been offered to roughly 900-1000 people. The program is not a covered
benefit but is offered through the CAM affinity program of the Shield plan. Ross states that
outcomes are being collected and may be reportable by years end. Rossman is a member of the
faculty in the department of medicine at UCSF. His co-founder of the academy is psychologist
DAVID BRESLER, PhD, an associate professor or anesthesiology at UCLA. The training
requires 150 hours, which includes a significant clinical component. Rossman states that private
practitioners of Interactive Guided Imagery (IGI) will generally see patients from 3-10 sessions
over a 2-3 month period, according to Rossman. Charges vary greatly, based on the professional
offering the services, between $35 and $300 per session. From a coding perspective, IGI is a
kind of an orphan, states Rossman. Usually E&M codes are used (99214 or 99215) or medical
hypnotherapy. He notes that sometimes psychology/counseling codes may be used.
B. VHA: GUIDED IMAGERY FOR PATIENTS WITH PSOT TRAUMATIC STRESS
The DEPARTMENT OF VETERANS AFFAIRS has announced that it will be using a specially
designed guided imagery audiotape to assist more traditional methods in treating veterans with
post traumatic stress disorder (PTSD). The tape, entitled Healing Trauma, was developed by
BELLERUTH NAPARSTEK, LISW and composer MARK KOHN, in response to a request from
BEVERLY DONOVAN, PhD, director of a PTSD program at Brecksville, Ohio-based LOUIS B.
st
STOKES VETERANS AFFAIRS MEDICAL CENTER. The tape is the 31 in the Naparsteks
Health Journeys series (Time Warner). She is also author of Staying Well with Guided
Imagery. Some of these condition-specific tapes have been found to be effective for treatment of
diverse medical conditions in trials at leading medical centers. Materials distributed by Naparstek
note that the tapes are presently in use in some 300 health care institutions. The VHAs Donovan
will be supervising distribution of the tapes throughout the veterans system. For Health
Journeys: 800-800-8661.
3. MOTHERNATURE.COM CONTRACTS WITH AANP FOR WEB/PRODUCT
At the annual gathering at the AMERICAN ASSOCIATION OF NATUROPATHIC PHYSICIANS
November 3-7, dot-com information and natural product vendor MOTHERNATURE.COM and the
AANP announced a new relationship which may eventually have a significant impact on the
natural product sales of some of the nations leading naturopathic physicians. Through a new
program, which MotherNature.com calls Wellness Advisory Network, an AANP member has a
series of customized web pages in which the providers philosophy and top products deemed to
be efficacious might be listed. The member can order through the site, thereby cutting down on
the need to maintain an inventory. Patients can also re-order through the site. The dot-com firm
has committed to stocking products from professional lines favored by AANP member physicians.
Such products can only be sold after a provider has prescribed them. SHEILA QUINN, AANP
executive director, makes it clear to THE INTEGRATOR that the AANPs decision to enter this
arrangement is not an endorsement of any specific product line, but rather of a system of access
to product. Over 50 separate firms are Corporate Sponsors of the AANP. MotherNature.com
has already joined the more elite Corporate Leader group. Quinn noted that her organization
felt right working with people who care so much about what we do. One sign of the value the
firm has given the naturopathic profession was a decision to feature a leading naturopathic
educator-author, TORI HUDSON, ND, as a spokesperson when they announced survey data last
summer on womens use of natural products. (Hudson is a faculty member of NATIONAL
COLLEGE OF NATUROPATHIC MEDICINE who, coincidentally, was acknowledged as
Naturopathic Physician of the Year by the AANP at their recent convention.)
MotherNature.com anticipates rolling the product out to other professions but is developing the
product first with the naturopathic physician organization. Under the arrangements, participating
naturopathic physicians would no longer need to manage large, in-office pharmacies. The would
still receive a percentage of profits on sales, and a fraction would go to AANP. One special
benefit: A percentage of all additional purchases by the individual who is brought to the site by
the naturopathic physician would also go to the naturopathic physician. While MotherNature.com
already promotes the program to individual practitioners, the AANP is the first organizational
affiliation. For AANP: 206-298-0126; for MotherNature.com: 800-207-3168.
4. NETWORKS & DISCOUNTS
A. ALTERNATIVE HEALTHCARE OPTIONS: COVERED CAM FOR SELF-INSURED
RICHARD DUNN, CEO of North Carolina-based ALTERNATIVE HEALTHCARE OPTIONS,
recently shared with THE INTEGRATOR detail of covered CAM benefits his network has sold to
self-funded groups in his base state. The first clients are THE MOMNEY CENTER, a mortgage
company, and HOLZ-HER, each with roughly 150 lives. AHO is working with two separate third
party administrators (TPAs) on the bene4fits, CORE SOURCE and NCAS, respectively. Besides
credentialing providers, AHO is re-pricing (receiving the charges from the provider and submitting
them to the TPA based on AHOs fee schedule) and distributing payment. The products are open
access, requiring a $15 co-pay from the employee, with the employer paying the remainder,
based on the fee schedule. The benefit has relatively high, separate ceilings of $2000 each for
acupuncture, naturopathic doctors and chiropractic. (Despite lack of ND licensing in North
Carolina, AHO has take the position that if an employer wants a benefit, AHO will offer it. Dunn
states that credentialing, if anything, is more difficult for the NDs. AHO has credentialed has 5 of
the 8 graduates of the three federally-recognized naturopathic educational programs who are
practicing in his state.) The PEPM network access fee paid to AHO by the employers ranges
from $0.50 to $1.50, according to Dunn. AHO is also offering a natural drug formulary,
according to Dunn, through an agreement with a supplier, NATURES PHARMACY, which he
states formulates based on recommendations in the German Commission E. The natural
agents must be prescribed by one of the credentialed provider or by an MD. Employees pay a
$10 co-payment for these natural agents, which, he states, usually run $20-$25. AHO sends the
request to NATURES PHARMACY, which then fulfills the order. The pharmacy benefit and the
two contracts were just introduced November 1. Dunn sees the self-insured market picking up,
noting that at least one TPA has taken on AHOs products as a distinguishing characteristic in the
TPAs marketing. He states: One agent from a TPA was very skeptical until I took him to an
enrollment meeting and when we left he said: Did you see their eyes light up when you talked
about acupuncture and the natural formulary? While AHOs business model focuses on covered
benefits, the firm lined up the first discount product in North Carolina, through the WELLPATH
HMO. PHONE
B. SAVEWELL DISCOUNT CARD TARGETS UNINSURED
SAVEWELL.COM, a Cleveland-based firm has a discount-card program which advertises
prescription drug (up to 50% on most brand-name drugs) and eyecare discounts (60% on
frames and lenses, 20% on contacts) as well as offering discounts in the future on nutritional
supplements and alternative therapies, including acupuncture, chiropractic and pain-relieving
magnets. President of SaveWell.com, an internet focused company, is BEN ZELMAN. The
firm speaks of the program as creating large group purchasing power for the individual, in
Zelmans words. The program is also expanding in the future to cover a wide variety of health
needs such as dental care. SaveWell.com is a subsidiary of MEDICAL MUTUAL OF OHIO, which
the firms release calls one of the country's oldest and largest health insurance companies, with
1.6 million members. Contact: Gayle Gathercole, 216p-687-7748; www.savewell.com
C. CALIFORNIA MEDICINE LOOKS AT NETWORKS
The October-November issue of CALIFORNIA MEDICINE includes a six page look at the CAM
network industry in that state. Some interesting history is provided, on pioneering CAM firms
ACUCARE, an acupuncture network, and ACUNET, and IPA which was later purchased by
LANDMARK HEALTHCARE. Entitled Covering the Alternatives, the lionshare of coverage is on
pioneering chiropractic management firm AMERICAN SPECIALTY HEALTH PLANS, the
dominant CAM firm in the California marketplace. The firm is described as having $78-million in
revenues and 13.3 million members in 43 states. ASHP president GEORGE DEVRIES is quoted
as saying that he believes in 24 months a CAM network with this many lives will be a small
company. The writer estimates that some 50 networks exist nationwide. KEVIN BURON, a VP
with LANDMARK HEALTHCARE is quoted as saying his firm has added 5-million lives during the
past 18 months. A distinction between covered lives and discount/affinity lives is not made. In a
discussion of the increasing competition for covered, at-risk CAM business, DAVID WELLS,
LAC, DC, senior director of clinical services at Landmark (and founder of ACUNET) is described
as expressing his dismay to see that some alternative medicine networks outside California bid
rock-bottom capitation rates of less than 50 cents for chiropractic. The writer states that
Landmarks KEVIN BURON, VP for marketing and network development, informed her that
Landmark is working with providers to develop a system that should ease concerns by rewarding
high-quality, cost-effective practitioners through financial incentives and by easing their
administrative burden. Details of the plan were not shared. ACUCARE, co-founded by ILAN
MIGDALI, LAC, states that the provider-oriented model of his firm and his desire to protect the
integrity of acupuncture has led him to tend to only accept PPO contracts. Individual copies: $5
(800-782-1054).
D. A reporter from Pennsylvania called THE INTEGRATOR following news that AMERICAN
SPECIALTY HEALTH NETWORKS has inked a discount-affinity contract with UNITED HEALTH
CAREs division serving that state. The report was unconfirmed at the time of this publication.
5. MISCELLANEOUS
A. CAM INVESTMENT A FOCUS OF BU ENTREPRENEURSHIP PROGRAM
The 1999 Annual report of the Health Care Entrepreeneurship Program at BOSTON
UNIVERSITY lists Alternative Medicine Ventures as one of the programs core areas where
business is hot and with which the program has been involved. The document lists five CAM
ventures which the program has advised: WELLSPACE, TAPESTRY, INC., INTEGRATIVE
MEDICINE COMMUNICATIONS, INTERCEUTICALS and an un-named firm looking into online
sale of CAM products. The first three firms are all based in the Boston area. The program is
headed by RICHARD EGDAHL, MD, PhD, former director of the BOSTON UNIVERSITY
MEDICAL CENTER and academic vice president for health affairs at Boston University (19731996). The program anticipates continued involvement in the CAM arena in the year 2000. The
program is linked with an investor group and an entrepreneur network. 617-253-4520
B. RESEARCH OPPORTUNITIES IN NUTRACEUTICALS VIEWED AS RISING
A good overview of emerging research opportunities in nutraceuticals is featured in
CENTERWATCH (Vol. 6, #11, November 1999), a newsletter targeting research organizations.
The writer anticipates significant new opportunities based on a number of trends: 1)
pharmaceutical firms crossing over into nutraceuticals; 2) continuing growth in use; and 3)
regulatory changes which may create financial incentives. The well-heeled pharmaceutical firms
are viewed as the best mark for securing research support. The market for herbal medicines,
estimated at $6 billion in 1998 sales, is presented as growing at 28% per year. 617-856-5956
C. PIZZORNO TO HEAD PUBLIC HEALTH CAM INTEREST GROUP
At the recent meeting of the AMERICAN PUBLIC HEALTH ASSOCIATION, the members of the
APHA special interest group on CAM elected JOSEPH PIZZORNO, ND, president of BASTYR
UNIVERSITY, to head up the interest groups activities in the coming year. Pizzorno, a member
of the SEATTLE-KING COUNTY BOARD OF PUBLIC HEALTH, was a presenter at the
associations recent national meeting.
D. CAM MENTION IN FACCT BULLETIN
The Portland, Oregon-based FOUNDATION FOR ACCOUNTABILITY (FAACT), the national
consortium of employers, grassroots organizations and government purchasers gave CAM a note
in the organizations Spring 1999 newsletter (Vol. 3, Issue 3, page 11). In notes from a lecture on
the power of consumers, FACCT founder and president DAVID LANSKY, PhD, referenced the
Eisenberg data showing that visits to CAM providers exceeded those to primary care physicians.
This is the first mention of CAM in the organizations regular publication, which, despite its
nominal consumer-employer focus, had not directly acknowledged the CAM movement. FAACT
is known for its promotion of measured, evidence-based care as a basis for purchasing decisions.
503-223-2228.
End
_____________________________
1. TWO EMPLOYER PERSPECTIVES
WASHINGTON BUSINESS GROUP ON HEALTH CAM PERSPECTIVE
INSTITUTE FOR HEALTH AND PRODUCTIVITY MANAGEMENT: SYMPOSIUM
2. INTEGRATIVE CLINICS
INCOME/SATISFACTION TRADE-OFFS FOR EAST COAST INTEGRATIVE MD
INNER HARMONY RESTRUCTURED WITH NEW INTEGRATIVE CENTERS
3. MEDIA WATCH
ACADEMIC MEDICINE
HARVARD MEDICAL SCHOOL: INTERNATIONAL CAM MEETING
ACUPUNCTURE ALLIANCE FORUM: INTERACTIONS WITH TCM
4. NETWORKS NEWS
CONSENSUS SECURES $10-MILLION PLUS IN NEW FUNDING
KAISER OHIO AND ASHN IN DISCOUNT PRODUCT
PHYSICIANS HEALTHCARE PLANS (FL) IN DISCOUNT
HEALTH AMERICA PENNSYLVANIA TO OFFER DISCOUNT VIA ASHN
5. MISCELLANEOUS
QUINN TO LEAVE AANP EXECUTIVE SLOT: 22 YEARS WITH NDs
UNLICENSED CAM PRACTITIONER CHARGED IN DEATH OF 8-YEAR-OLD DIABETIC

__________________
____________________
1. TWO EMPLOYER PERSPECTIVES

A. WASHINGTON BUSINESS GROUP ON HEALTH CAM PERSPECTIVE
Those outside the mainstream are held to higher standards, notes MARY JANE ENGLAND,
MD, president, of the influential employer group, WASHINGTON BUSINESS GROUP ON
HEALTH. England, a psychiatrist by training, knows of what she speaks. Many psychological
and mind-body interventions have -- like CAM -- have difficulty in gaining appropriate
recognition in mainstream payment and delivery. Speaking at the October STANFORDHARVARD conference on Practical Applications of CAM integration , Englands placed CAM
coverage as a reflection of the evolution of benefits toward encouraging health promotion and
optimal functioning. Employers, she notes, are moving toward recognizing and enabling
performance now. England also notes the value in attracting and retaining the best workers.
She offers additional employer principles for health care which she views as creating potential
opportunities for CAM. The most agreeable to CAM practitioners are patient centered, patients
actively involved, educated consumers, and fostering flow of information. Other principals
reflect postulations of CAM advocates, including: effective, and cost-efficient. England lists
accountability and outcomes based as additional principles, which, again asks most CAM
providers to develop additional skill sets. England singled out representative CAM activity of
some employers: 1) GTE SERVICE CORPORATION in Atlanta has created a weekly massage
day at work, when employees, for $8 payments receive a 10 minute massage, which is delivered
in a room set aside for two visiting massage therapists. Aerobics, yoga and tai chi are offered in
lunch time classes; 2)RESEARCH AND DATA SYSTEMS offers 50% discounts on yoga,
acupuncture, nutritional counseling and holistic care for pets through certified providers.
Decreased absenteeism and lower health care costs are the goals; England noted that some
employers, appreciating the role pets can plan in individuals maintaining positive attitudes, are
covering veterinary services; 3).STARKEY LABORATORIES in Eden, Minnesota, covers
chiropractic, Rolfing and acupuncture, which have been found to reduce workers compensation
costs and boosted productivity; and 4) VIEWSONIC CORPORATION in Walnut Creek, California,
offers chiropractic and acupuncture ($10 co-pay up to 40 visits) and some herbal supplements
with a $5 co-pay. England notes that some core areas of research interest to employers are
whether the CAM services improve recruitment and retention, enhance the corporate image,
decrease absenteeism, better morale, lower health care costs, decrease disability costs, reduce
turnover and improve productivity. WBGH is working on a metric to allow researchers to better
assess functionality and is in conversation with NATIONAL INSTITUTES OF MENTAL HEALTH
researchers on a potential project which, while it may not have the rigors of more reductive
research favored by the NIH, can be extremely robust in numbers by giving researchers access
to WBGH employee base. Employees, England believes, must increasingly be viewed not as a
cost center but rather as a human capital investment.
B. INSTITUTE FOR HEALTH AND PRODUCTIVITY MANAGEMENT: SYMPOSIUM
THE INTEGRATOR was contacted in August by RAVEN RUFFNER, who was beginning early
reconnaissance on the CAM-employee wellness connection for the INSTITUTE FOR HEALTH
AND PRODUCTIVITY MANAGEMENT. The organization is sponsored by Fortune 500
employers, health systems and pharmaceutical firms. The organization was beginning to look into
a symposium on the workplace implications of the CAM movement. SEAN SULLIVAN, president
and CEO, explains that the Institute is interested in anything that has a functional impact on
employee health. The organizations efforts are typically outcomes oriented, and is comfortable
creating well-reasoned pilot projects. According to Sullivan, a mid-November meeting with over
50 IHPM funders produced interest in CAM from all stakeholders, particularly employers and
some (health system) providers. Sullivan laughs, recalling a comment of a representative of a
large employer which is considering co-sponsoring the symposium: Were interested in cutting
costs and if that happens to be through alternative medicine, thats fine! IHPM is presently
exploring potential relationships with sponsors and beginning to define the size and focus of the
symposium, planned for the spring. One potential direction: strategies to link CAM into a major,
well-funded IHPM project on disease management. Organizations interested in potential cosponsorship may contact Rufner (540-456-4747) or Email at ihpm1@aol.com. www.ihpm.org
2. INTEGRATIVE CLINICS
A. INCOME AND SATISFACTION TRADE-OFFS FOR AN EAST COAST INTEGRATIVE MD
A not-for-attribution interview with an East Coast integrative physician (MD) yielded the following
information and perspective on the business side of the physicians practice: Income in
conventional practice prior to moving into integrative care $110,000 plus; salary offer from an
integrative clinic, at roughly 4 clinical days per week: $70,000; and current integrative practice, at
3.5 days of practice, 1.5 days cleaning up the mess: $65,000. Physicians comment: In my
conventional practice, I dont think I ever greeted my spouse with what a great day it was. I dont
think my patients liked me or I much liked them. Now I do my own billing and scheduling, so can
take as long as I want with patients. My first visit is a full hour and my follow-up visits are usually
30 minutes. I use a sliding scale for my patients. I think the relationship I have with them is
helping them to get better.
B.
INNER HARMONY RESTRUCTURED WITH NEW INTEGRATIVE CENTERS
Clarks Summit, Pennsylvania-based INNER HARMONY (see Benchmarking Clinic

Development, February-March 1999) has undergone a significant shift in provider mix, as well as
a name change, to re-position itself for partnership with the regions mainstream providers. What
was the INNER HARMNONY WELLNESS CENTER has re-emerged in a recent advertising
campaign as a series of affiliated centers: CENTER FOR INTEGRATIVE MEDICINE, STRESS
REDUCTINO CENTER, CENTER FOR WOMENS HEALTH and PAIN MANAGEMENT
CENTER. The name change coincides with bringing in a medical doctor and an osteopathic
physician to add to their complement of CAM professionals on the nine person clinical team. As
part of a renewed effort to deepen its integration into mainstream payment and delivery, Inner
Harmony, led by founder PETER AMATO, is actively engaged in negotiations with major insurers
and employers in the rural Pennsylvania area. LINDA BEDELL-LOGAN, with SOLUTIONS IN
INTEGRATIVE MEDICINE, is consulting with the clinic in the transition and re-positioning.
3. MEDIA WATCH
A. ACADEMIC MEDICINE: CAM IN MED SCHOOL CLINICS
The Summer 1999 issue (Vol. 12, # 2) of Academic Clinical Practice, a publication of the Group
on Family Practice of the AMERICAN ASSOCIATION OF MEDICAL COLLEGES includes a
feature entitled Alternative Medicine on Mainstream Track. Among those interviewed is PAUL
SZILAGYI, MD, chief administrative officer of HENRY FORD WYANDOTTE HOSPITAL,
interviewed on whether CAM will be a significant revenue stream, suggests that we are still in the
infancy stage of offering these kinds of services and cannot know. Szilagyi underscore on
problem Henry Ford faces with CAM: All of our energy right now is devoted to responding to the
challenges of financing health care. LARRY BURK, MD, clinical associate professor of radiology
and director of integrative medicine at DUKE UNIVERSITY describes his institutions cautious
approach to CAM: All acupuncture is delivered by medical doctors and we havent even
scratched the surface as far as hiring a non-MD practitioner here. Burk relates that an attempt to
offer a series of CAM lectures to medical students was originally shot down. Once approved, the
curriculum committee drew the line at homeopathy and aromatherapy -- the sense is that we
arent even supposed to talk about those disciplines around here. The Henry Ford system is
focusing its CAM on chiropractic, herbal therapy, massage therapy and acupuncture, which
Szilagyi called the safest. States Szilagyi: A reputation for treating the patient right and
providing the most complete service is the key to attracting and keeping patients So on an
individual and institutional level, providing CAM services to those who want them is rewarding.
In related news, the meeting of the special interest group on CAM of the AMERICAN
ASSOCIATION OF MEDICAL COLLEGES drew representatives of 50-60 institutions to their
annual meeting in early November.
B. HARVARD MEDICAL SCHOOL: INTERNATIONAL CAM MEETING
A Fall 1999 issue of Focus, the newsletter for the alumni of HARVARD MEDICAL SCHOOL
features a report on a July 1999 conference in Seoul, Korea, co-sponsored by HARVARD
MEDICAL INTERNATIONAL and Koreans ASAN MEDICAL CENTER on integration. JOSEPH
B. MARTIN, dean of the Faculty of Medicine at Harvard is quoted at stating: We have good
reason to believe that some of the therapies that are now considered alternative will eventually
prove heir worth and become standard practice in both East and West. Interestingly, Korea has
41 college teaching 3,000 students in Western medicine, and only 11 (800 students) for Oriental
medicine.
C. ACUPUNCTURE ALLIANCE FORUM: INTERACTIONS WITH TCM
The Fall 1999 issue of The Forum includes a brief look at some potential herb-drug interactions.
The article is written by JOHN K. CHEN, PhD, LAc, an assistant professor at the UNIVERSITY
OFSOUTHERN CALIFORNIA SCHOOL OF PHARMACY as well as professor of pharmacology
at two schools of Chinese/Oriental medicine. For the Alliance: 253-851-6896.
4. NETWORKS NEWS: CONSENSUS FUNDING PLUS DISCOUNTS, DISCOUNTS
A. CONSENSUS SECURES $10-MILLION PLUS IN NEW FUNDING
An early report with as yet little detail is that CONSENSUS HEALTH, the San Francisco Bay area
CAM network firm has secured over $10-milliion in venture capital to support a major move into
the dot-com arena with perhaps twice as much more available. Consensus founder ALAN
KITNER confirmed for THE INTEGRATOR that the funding had come in from current investors,
including ST. PAUL VENTURE CAPITAL and WESTON PRESIDIO. More on this story as it
develops.
B. KAISER OHIO AND ASHN IN DISCOUNT PRODUCT
With director of sales DAVID CROSBY noting that about twenty percent of our members have
expressed interest in these types of services, KAISER PERMANENTE OF OHIO announced on
November 22 that its members would have access to a discount CAM product starting early in
the year 2000. The discount will be offered through a standard relationship with AMERICAN
SPECIALTY HEALTH NETWORKS. The release noted an addition to ASHNs services through
which members can ask the expert for personalized answers to their health questions. The
Ohio branch of Kaiser serves 200,000 members. For Kaiser, Eileen Sheil: 216-479-5576;
eileen.sheil@kp.org.
B. PHYSICIANS HEALTHCARE PLANS (FL) IN DISCOUNT

Advertising that it is adding benefits while other Florida plans cut back, PHYSICIANS
HEALTHCARE PLANS, an HMO with 100,000 lives in South Florida announced a health benefits
discount card in early November which includes some CAM care. All members will be given
membership in HEALTHSAVER CLUB. President and CEO is MICHAEL FERNANDEZ. For
PHP: 813-273-7474.
C. HEALTH AMERICA PENNSYLVANIA TO OFFER DISCOUNT VIA ASHN
HEALTH AMERICA OF PA announced a discount product which will be offered to its 500,000
members starting January 1, 2000, through a partnership with AMERICAN SPECIALTY HEALTH
NETWORKS, a division of ASHP. HealthAmerica is a division of COVENTRY HEALTH CARE
which provides managed care products and services to over 500,000 individuals in the
Pennsylvania and Ohio areas. The release notes that the BUYHEALTHY.COM division of ASHP
presently offers 1,200 distinct products. ASHP positions its HEALTHYROADS.COM
5.
MISCELLANEOUS
A. QUINN TO LEAVE AANP EXECUTIVE SLOT: 22 YEARS WITH NDs

On February 28, SHEILA QUINN, executive director of the AMERICAN ASSOCIATION OF
NATUROPATHIC PHYSICIANS, will be stepping down from the position she has held for the last
six years. Quinn, a former vice president at BASTYR UNIVERSITY and its first paid staff member
when it was founded in 1978, is considered a co-founder of that institution, which has honored
her with an honorary doctor of naturopathic medicine degree. During Quinns tenure, the AANP
budget and membership each grew substantially, licensing for naturopathic physicians expanded
to four new states and members of the profession quietly impacted a number of key policy and
regulatory actions of the US Congress. Quinn is actively exploring her options. 206-298-0126
B. UNLICENSED CAM PRACTITIONER CHARGED IN DEATH OF 8 YEAR OLD DIABETIC
An unlicensed CAM practitioner, LAWRENCE PERRY, has been charged with manslaughter in
the death of an 8-year-old diabetic after allegedly urging the mother to use herbs for treatment.
Said to have operated the GENERAL HEALTH CARE FACILITY FOR PREVENTIVE AND
ALTERNATIVE MEDICINE, Perry is being charged with practicing medicine without a license. No
reports of the case reviewed by THE INTEGRATOR have included evidence that the practitioner
had any formal CAM education.
End
_________________________
1.
2.
3.
4.
HIGHMARK BLUES PLANS HIGH ON ORNISH PROGRAM OUTCOMES

UPDATE ON ORNISH PROGRAM: MEDICARE AND DoD PILOTS, NEW CENTERS
REHAB DOCS: MEDICAL ACUPUNCTURE SPECIAL INTEREST GROUP
NATIONAL COLLEGE OF CHIRO TO BECOME MULTIDISCIPLINARY UNIVERSITY
5. AMERICAN MEDICAL WOMENS ASSOCIATION DOWN ON NON-NURSE MIDWIVES

6. HMO AND NETWORK ACTION
7. MISCELLANEOUS
__________________
____________________
1. HIGHMARK BLUES PLANS HIGH ON ORNISH PROGRAM OUTCOMES

In a November 25 INTEGRATOR interview, ANNA SILBERMAN, a vice president with Pittsburgh,
Pennsylvania-based HIGHMARK BLUE CROSS, revealed that the insurers unusually proactive
promotion of a DEAN ORNISH program for patients with cardiac risk is saving an estimated
$16,000 per user. Highmark is the only insurer in the nation which not only covers but delivers
the program. (See related item below.) Over 265 patients have been enrolled in the program
since November of 1997. Program cost is $2,000-$3,000.per enrollee. Highmark offers two
options: 1) a 12 week intensive following by a year of follow up services; and 2) the retreat model
Ornish used in his original study. The real story, states Silberman, is that the insurance
company is not only paying for it, but is providing it. The firm delivers the programs through
three community based centers. Recalling the decision to start the program Silberman states: I
looked at Pittsburgh and wondered if Id fall flat on my face and lose my job. Would it alienate us
from the medical community? She is firm now that she believes that while this isnt for
everyone, there are those who will take it on and they are entitled to this program -- they have a
right to know their options. This is one among a handful of progressive CAM-oriented programs
developed at Highmark under Silbermans leadership. Others include a new Ornish-like program
targeting high risk osteoporosis patients which is now seeing its third cohort. Silberman says that
the firm has had a discount program for most of the 10 years since she has been with the firm,
through an internal network, and that chiropractic is covered in all our products. Contact Bob
Crytzer 412-544-5221, www.highmark.com
2. UPDATE ON ORNISH PROGRAM: MEDICARE AND DoD PILOTS, NEW CENTERS
The non-profit, Sausalito, California-based PREVENTIVE MEDICINE RESEARCH INSTITUTE
(PMRI), the organization which promotes development of mind-body coronary artery disease
reversal programs developed by DEAN ORNISH, MD, has recently announced two new pilots.
One, developed with the HEALTH CARE FINANCING ADMINISTRATION, will be a
demonstration project to study the value of the Ornish program on up to 1,800 selected
MEDICARE patients as an alternative to angioplasty and bypass surgery. An earlier study,
published in JAMA last year, showed the program successful in 77% of high risk patients who
underwent the program. (See March 1998 INTEGRATOR for a previous look at the program.)
Notably, the JAMA study found even more reversal after five years than after one year. In
addition, Congress has appropriated $2.5 million through the DEPARTMENT OF DEFENSE
through which PMRI will train professionals at the WALTER REED ARMY MEDICAL CENTER
and the BETHESDA NATIONAL NAVAL MEDICAL CENTER to offer the program to retired
military and their families. The information below is abstracted from information provided to THE
INTEGRATOR by PMRI.
A. ORIGINAL PROGRAM SITES (those still in demonstration project network [*]): Alegent
Immanuel Medical Center/Alegent Heart Institute*, Omaha, NE; Alegent Bergen Mercy Medical
Center*, Omaha, NB; Beth Israel Medical Center, NY, NY; Mercy Hospital Medical Center/Iowa
Heart Center*, Des Moines, IA; Broward General Medical Center*, Fort Lauderdale, FL; Palmetto
Richland Memorial Hospital*, Columbia, SC; Mt. Diablo Medical Center, Concord, CA; Beth Israel
Deaconess/Harvard Medical School, Boston, MA; Scripps Hospitals and Clinics*, La Jolla, CA.
B. NEW PROGRAM SITES (all in the demonstration project network): School of Medicine,
UCSF; California Pacific Medical Center, SF, CA; Franciscan Health System of the Ohio Valley;
Cincinnati, OH; Swedish American Health System, Rockford, IL; Swedish Medical Center/First
Hill, Seattle, WA; St. Francis Hospital and Health Center, Blue Island, IL; and Windber Medical
Center, Johnstown, PA. In addition, as noted above, HIGHMARK BLUE CROSS BLUE SHIELD
OF WESTERN PENNSYLVANIA has become the first insurer of offer the program directly to
subscribers, at three Pittsburgh sites.
C. INSURERS WITH CONTRACTED COVERAGE OF THE PROGRAM: Anthem BCBS;
Benchmark, Best Choice, BCBS Nebraska, BC California, BS California, BCBS South Carolina,
Exclusicare/Mutual, Franciscan Health System, Highmark Inc., Humana Health Plans of South
Florida, Mutual of Omaha, and Secure Care.
D. INSURERS WHICH HAVE COVERED ON A CASE BY CASE BASIS: Alternative Benefits
Plan, Arps Redi Mix Benefits Group, BAAI, BCBS Alabama, BCBS Tennessee, Central States
Health & Life of Omaha, Board of Pensions Presbyterian Church, City of Omaha, Companion
HealthCare, Federal BCBS, Health Care Preferred Payless Cashways, Medical Mutual of
Omaha, Physicians Health Plan of SC, Plumbers & Steamfitters Local Union 33, ProAmerica
Managed Care, Provident Health Care, Provident Life, Prudential L.D., Secure Care, Select
Benefit Administrator, Travelers, United HealthCare EPO, United Healthcare of the Midlands
(SHARE), and Woodward Govenor.
PMRI materials state that over 40 insurers cover all or part of the program. This figure shows
little change from that provided to THE INTEGRATOR by PMRI in the 1998 report. The HCFA
project is viewed internally as the vehicle through which the programs will eventually become a
standard part of benefit design. The Medicare demonstration project has been under discussion
at HCFA since late 1997. For PMRI, call (415)332-2525. WEBSITE??? CHAS, CAN YOU GET
THIS?
3. REHAB DOCS: MEDICAL ACUPUNCTURE SPECIALTY
The AMERICAN ACADEMY OF PHYSICAL MEDICINE REHABILITATION (AAPMR) has a threeyear-old interest group on medical acupuncture headed by MITCHELL PRYWES, MD. Prywes,
whose private practice is based in Danbury, Connecticut, states that roughly 120 AAPMR
physicians are presently members of the interest group, up from 30 at the founding. A
presentation on medical acupuncture by SPAULDING REHABILITATION HOSPITAL physician
JOSEPH AUDETTE, MD, at an AAPMR meeting last month drew 400 attendees, according to
Audette. The AAPMR subspecialty represents roughly 6,000 medical doctors and osteopaths,
with the latter representing about one-in-ten of the physician members. Prywes told the
INTEGRATOR that his specialty is among the top three specialties (with family medicine and
neurology) in the AMERICAN ACADEMY OF MEDICAL ACUPUNCTURE, which Prywes serves
as a board member. Prywes describes the affinity between acupuncture and rehab in terms of
their focus on restoration of function in patients. Acupuncture, he adds, fits into the way we
deal with people. A near term goal of the interest group is to create a list-serve for member
physicians. In the long term, Prywes anticipates that the group will take on development of
clinical protocols. (203)744-4343
4. NATIONAL COLLEGE OF CHIRO TO BECOME MULTIDISCIPLINARY UNIVERSITY

With a mission of chiropractic bringing together the various players within the complementary
and alternative professions for the common good of the professions and their shared patients,
JAMES WINTERSTEIN, DC, president of Chicago-based NATIONAL COLLEGE OF
CHIROPRACTIC announced earlier this month his schools intention in September of 2000 to
change its name to NATIONAL UNIVERISTY OF HEALTH SCIENCES. Winterstein told THE
INTEGRATOR that he believes that if CAM providers are not integrated at the educational level
then turf battles worse than with the allopaths will ensue. A College of Professional Studies
will offer the chiropractic degree together with a Masters in acupuncture/meridian therapy, and
then, in 2002, a naturopathic medical degree. (National College formerly offered a naturopathic
degree under a Drugless Physician program which was discontinued in the 1950s under
pressure from accreditors and federal regulators.) Lincoln College of Postprofessional, Graduate
and Continuing Education will offer diplomate programs in specialty areas, as well as residencies
and graduate education programs. A College of Allied Health Sciences will offer some
programs already in place: massage certification, chiropractic assistant and baccalaureate in
human biology. Others may be added. National, founded in 1906, is one of the nations leaders
in promoting a general practice role for chiropractors. Winterstein is on the board of
ALTERNATIVE MEDICINE INC., the Chicago-based network which is piloting a Primary Care
Chiropractic Physician program with HMO ILLINOIS. The move to university status is believed to
be the first for any chiropractic school. PHONE
5. AMERICAN MEDICAL WOMENS ASSOCIATION DOWN ON NON-NURSE MIDWIVES
th
Among actions at the 84 annual meeting of the AMERICAN MEDICAL WOMENS

ASSOCIATION held earlier this month was a position paper opposing legislation or insurance
coverage for what the statement terms lay midwifery. A spokesperson for AMWA, Beth
Feldpush, who directs the organization's governmental relations, provided no background on the
decision other than that the request was brought by an unnamed member as an effort to combat
recent legislation dealing with midwifery. The lay midwife category, as used, appears to
include all midwives except nurse-midwives. AMWA supports expanded regulation of and
coverage for nurse-widwives as long as they are appropriately supervised. No distinction is
made by the AMWA between those non-nurses who attend regulated educational programs
which train individuals to provide independent midwifery services for homebirth and birth center
births. In some jurisdictions where educational programs are available, notably Washington
State, these European model midwives have gained significant status with policy makers and
with health plans. (The European model adds certain nursing skills to midwifery training, rather
than adding midwifery training to nurses.) Analysis of experience data in Washington homebirths
led a 1994-1995 multi-disciplinary advisory team convened by GROUP HEALTH COOPERATIVE
OF PUGET SOUND to recommend credentialing of a panel of homebirth midwives and coverage
for the services. The staff model HMO has since done so, and in a flier has promoted these
services to their members. For AAWA, call (703)838-0500; for a perspective on regulated lay
midwifery, contact VICTORIA TAYLOR, LM, of QUALITY MIDWIFERY SERVICES, and
manager of a credentialing program developed in response to state legislation in Washington,
206-923-0565.
6. HMOS AND NETWORK ACTION
A. HIP HEALTH PLANS (NY) JOINS DISCOUNT REVOLUTION: PARTNERSHIP WITH
CONSENSUS
A late November release (11/23/99) on its efforts to keep pace with the continuing health care
revolution, HIP HEALTH PLANS OF NEW YORK announced it will be offering members a CAM
discount product. The statement positioned the CAM program as follows: The value-added
program is not intended in any way to replace HIPs traditional medical care. The health care
revolution apparently is not going so far as to allow HIP New York to consider whether or not a
CAM approach or therapy may be more clinically appropriate than anything in conventional
medicine. The CAM program is one of a handful which will show how the plan offers members
wider choices and opportunities. PHONE
B. NORTH CAROLINA BLUES TRUMPETS CAM DISCOUNT AS SAVINGS FOR SENIORS
A November 23 PR NEWSWIRE release from BLUE CROSS BLUE SHIELD OF NORTH
CAROLINA trumpets their new ALT MED BLUE program, a discount project engaged through
partnership with CONSENSUS HEALTH, in the words of BOB GRECZYN, president and CEO of
BCBSNC, as follows: With the addition of Alt Med Blue to the Blues Value program [a broader
discount product included eyecare, hearing aids, etc.] North Carolina seniors can save more than
ever on services to help keep them healthy.
C. ACCESS MANAGED HEALTH CARE LOOKING INTO ADDITIONAL CAM
ACCESS MANAGED HEALTHCARE, based in Floral Park, New York, and operating in 13 states,
has recently begun to explore offering additional CAM benefits in addition to their historic
chiropractic business, according to JOHN ROPOLLO, president. (800)789-2642
7. MISCELLANEOUS
A. SONTECH ACQUIRES WELLNESSAMERICA.COM
A small, non-reporting, publicly traded firm, Fresno, California-based SONTECH, has purchased
WELLNESSAMERICA.COM, a CAM database. According to company materials, Sontech
targets a Bible and health consumer base. Contact Magrit Schulz (559)449-2626.
www.wellnessamerica.com
B. HEAVY CHIRO LOBBYING KEEPS PROVISION IN VETERANS ACT
A provision in the VETERANS MILLENIUM HEALTH CARE ACT which would require the
Veterans Administration to explore the role for chiropractic in veterans services was included in
the final version which was sent to the president. House leaders had included the language (HR
2116) , but the Senate version (S. 1076) did not.
C. NEW YORK TIMES ELEVATES CHIROS: WHO IS A DOCTOR, EDITOR?
In a small but significant step, the NEW YORK TIMES will now begin formally referring to doctors
of chiropractic as doctor. Media treatment of CAM providers has frequently been, literally,
above the law -- choosing to deny the doctor title to CAM providers even when state law
formally recognizes the right of the provider to use the title or be considered a physician.
Depending on the state, chiropractors, naturopaths, and, in some jurisdictions, practitioners of
traditional Chinese medicine, have been formally granted the right to use the title. In a November
3 letter to the AMERICAN CHIROPRACTIC ASSOCIATION, New York Times editor WILLIAM
BORDERS stated that he has alerted staff to this lapse in failing to use the title in the past. The
move followed protest and action by the ACAs Communications Department. (800)986-4636
End
__________________________
News File #41, December 7, 1999
1.
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4.
5.
CLINICS: TAPESTRY, MEDICAL UNIVERSITY OF SOUTH CAROLINA, EXEMPLA

CANCER SOCIETY OFFERS OPERATIONAL STATEMENT ON CAM
CHIROS MEETING WITH CLAIMS EXECUTIVES
NEW CAM BENEFITS: CA HITS DISCOUNTS, BCBSSC/ASHN, VITALITY ACCESS
MEDIA WATCH: SMART MONEY, HEALTHCARE BUSINESS, MEDICAL TRIBUNE

Integrative Medicine Communications (www.onemedicine.com).
__________________
____________________
1. CLINICS: TAPESTRY, MEDICAL UNIVERSITY OF SOUTH CAROLINA, EXEMPLA

A. TAPESTRY GROUP OPENS SECOND BOSTON AREA FACILITY
The TAPESTRY GROUP has opened its second clinic in the Boston area on schedule. The
facility, in Hanover, focuses on acupuncture and acupuncture related services, according to
MICHAEL J. SHOR, MPH, co-founder. The facility has two clinicians and, after its fifth week is
running at 60% of capacity. Early analysis of overall Tapestry visits, reported to THE
INTEGRATOR, shows that 90% of the business is for medical necessity related "clinical
conditions." States Shor: "We opened our first center less than three months ago so we need to
be very careful not to over interpret anything, but to date, people are seeking us out for real
problems and that is very gratifying. The revenue splits about 40% for acupuncture and herbs,
40% for therapeutic massage, about 10% relaxation massage and another 10% for shiatsu
therapy. Under the Tapestry business model, this Hanover facility is a "satellite clinic," which is
necessary to extend the firm's geographic reach in serving its workers compensation clients.
Tapestry's first facility, at 3300 square feet and with an even broader provider mix, opened
September 7 of this year. 617-969-6300
B. MEDICAL UNIVERSITY OF SOUTH CAROLINA EXPLORING A SECOND FACILITY
The CAM venture operated by the MEDICAL UNIVERSITY OF SOUTH CAROLINA has begun
exploration of a second CAM clinic. The first offers acupuncture, massage and herbal medicine
in four treatment offices. Clinic leader is GARY NESTLER, LAc. The relatively unambitious
setting -- no medical doctors are on-site -- appears to be working well financially, according to a
clinic acupuncturist TRUDY MOORE, LAc. 843-792-1270
C. EXEMPLAS CAM VENTURE IN COLORADO EXPLORING EXPANSION
BRIDGES INTEGRATIVE HEALTH SERVICES, the CAM department of EXEMPLA, a
Wheatridge, Colorado-based health system which includes two hospitals and a large primary care
group practice, is looking to expand its operations. Opened six months ago with presently 10
part-time CAM practitioners, the clinic is doing okay and meeting our projections, according to
COLLEEN HATTON, PT, who is Exemplas director of health management services. The
operation is at a plateau and is now looking at a more aggressive marketing strategy. The clinic
is in a medical office building owned by a group of physicians, some of whom are Exempla
physicians. Present offerings are acupuncture, massage, counseling, herbs and classes. Hatton
notes that the herb services are through a doctor of pharmacy. All present services are self-pay.
303-425-8266
2. CANCER SOCIETY OFFERS OPERATIONAL STATEMENT ON CAM
The AMERICAN CANCER SOCIETY has developed an operational statement for activities
related to complementary and alternative methods of cancer management. The Society defines
core terms, then offers the following directives that the Society: 1) supports the use of
complementary methods (supportive methods that are used to complement or add to
mainstream treatments as consistent with Society goals addressing quality of life); 2) supports
use of scientifically proven treatments as consistent with the Societys goal of reducing mortality
and cancer; and 3) does not support the use of unproven alternative treatments (unproven
treatments that are promoted as cancer cures) as inconsistent with the Societys mission 2015
goals. However, in an endorsement of the consumer-patient, the Society also supports the right
of individuals with cancer to decide what treatment is best for them. A partial list of
complementary approaches in the Society document includes: aromatherapy, art therapy,
biofeedback, massage, meditation, music therapy, prayer/spiritual practices, tai chi, and yoga.
The document also includes information for the consumer on questions to ask in evaluating a
specific therapy.
3. CHIROS MEET WITH CLAIMS EXECUTIVES
A December 1 release from the AMERICAN CHIROPRACTIC ASSOCIATION (ACA) reported
that the association is promoting better relationships with independent insurers through
convening a recent meeting with representatives from both groups to tackle persistent problems
in claims processing. The Claims Solution Work Group was a forum for insurers to discuss
their concerns regarding chiropractic claims in areas such as health, workers comp and auto
insurance. Issues ranged from fraud and abuse and new technology to treatment guidelines,
coding, documentation and scope of practice. Twenty individuals participated. The meeting was
chaired by PATRICIA JACKSON, the ACAs vice president for the Office of Professional
Development and Research. A core interest of insurance representatives was reportedly the
perceived lack of treatment guidelines in chiropractic. The lack of such guidelines was viewed
as making it difficult for insurers to separate good chiropractic from bad. The ACA
representatives agreed to formally recommend to the ACAs leadership that guideline
development become a priority. The ACA plans to convene more of these work groups in the
future to continue the dialogue and cooperation. Additionally, an email list will be set up to
continue ongoing communication and problem-solving among the participants from the two-day
gathering. 703-276-8800
4. NEW CAM BENEFITS: CA HITS DISCOUNTS, BCBSSC/ASHN, VITALITY ACCESS
A. CALIFORNIA CRACKS DOWN ON INTERNET DISCOUNT PLANS
In late November the CALIFORNIA DEPARTMENT OF CORPORATIONS (DOC), which
regulates managed care plans, sent out notices to 46 internet discount providers that their
operations would no longer be legal in the state. A report in the LOS ANGELES TIMES
(www.latimes.com/class/employ/healthcare/19991126/t000107844) notes that 15 of the firms, many of
which have recently added CAM services to their core offerings, have voluntarily suspended
operations. Arlington, Texas-based CARE ENTRE (www.careentree.com) whose CAM product
has been reported in THE INTEGRATOR, is noted as one firm which notified DOC that it plans to
contest the move, although it is also among those which have suspended its program in
California. Care Entree operates as a multi-level firm, charging a $59.95 initial fee for its
independent sales team, and also requiring that each sales person participate in the full Care
Entre program, at an additional $20/month. (The CAM program alone is $15/month, or $10 in
addition to the basic $20/month program.) The discounted programs generally target the
uninsured. DOC views such programs as unlicensed sale of insurance products. Mainstream
healthcare organizations in California herald the move. DOC has had an equivocal view on
discount CAM products. The regulatory agency has taken the position that offering such products
requires formal approval, yet no policy on the subject had been released
by the regulators as of a query from THE INTEGRATOR in mid-September. Calls to DOC late
last week were not yet able to reach the appropriate spokespeople.
B. BCBS SOUTH CAROLINA LINKS WITH ASHN ON DISCOUNT
On November 30, BLUE CROSS BLUE SHIELD OF SOUTH CAROLINA became the latest of
over a dozen Blues plans to offer a discount product. The firm is linking with San Diego-based
AMERICAN SPECIALTY HEALTH NETWORKS to offer the product. The program is called
Natural Blue Holistic Health Choices. RICK GALLION is the director for complementary and
alternative medicine for the Columbia-based Blues plan.
C. AMI/HMO ILLINOIS CHIRO GATEKEEPER PLAN IN USATODAY
The PCCP (Primary Care Chiropractic Physician) program developed for HMO ILLINOIS by
ALTERNATIVE MEDICINE INC. appears to be capturing the eye of the media. The November
26, 1999, issue of USA TODAY on trends in health plan offerings under the present open
enrollment period, included a mention of the pioneering AMI effort, which gives the HMOs
members a chance to select a chiropractor as their PCP. AMI has been involved in a significant
media push to up enrollment in the pilot.
5. MEDIA WATCH: SMART MONEY, HEALTHCAREBUSINESS, MEDICAL TRIBUNE
A. INTEGRATION IS ABOUT MONEY SAYS SMART MONEY
Recent interest in CAM by medical doctors and osteopaths is presented as cynical opportunism,
the work of scoundrels, and largely about the bottom-line in a long introductory section, and in
the closing, of a six-page CAM feature in Decembers SMART MONEY (The Doctor Will See
Your Soul Now). You must move with the wind, and the wind is blowing toward alternative
medicine, one MD exploring acupuncture is quoted as saying. Later the same physician is
quoted as saying that, ultimately it all comes down to money, and that hell drop his present
interest in CAM if the money is not there. A somewhat more upbeat view begins well into the
third page with a look at the KAPLAN CLINIC, a multidisciplinary, conventional plus alternative
practice of GARY KAPLAN, MD, in Arlington, Virginia. KEN STAHL, MD, of the Hartford,
Connecticut-based HARTFORD MEDICAL GROUP is also treated more gently, but the reporter
still focuses on Stahls view that integrative medicine is a wide-open market niche. ROBBE
FIAN, LAc, and president of the AMERICAN ASSOCIATION OF ORIENTAL MEDICINE, is used
by the reporter, MICHELLE ANDREWS, to underline the theme of opportunism in MD/DO
behavior. Fian reportedly found MD/DOs to whom she recently taught acupuncture to be caught
in a cookbook approach to their patients, which didnt respect the individualized nature of
Oriental medicine treatment. JAMES DILLARD, MD, medical director for alternative medicine at
OXFORD HEALTH PLANS is used to support Fians remark. Dillard, an INTEGRATOR advisor
who is also an acupuncturist and chiropractor, lambastes the overnight gurus. All totaled, the
report is a nasty account of the shadow side of the integration movements hopeful face. This
may have been the only way that SMART MONEY could treat the subject.
B. HEALTHCAREBUSINESS COVER FEATURE ON CLINICS/AMERICAN WHOLE HEALTH
An 11-page feature on private sector integrative clinics is the cover story (When East Meets
West: Can Integrative Medicine Advocates Successfully Blend the Best of Traditional and
Alternative Care? 66-76) ) of the November-December issue of HEALTHCAREBUSINESS. A
significant portion of the article, written by ELAINE ZABLOCKI, formerly editor of ALTERNATIVE
MEDICINE BUSINESS NEWS, focuses on the AMERICAN WHOLEHEALTH venture, providing
an accounting of its development since the firms founding by INTEGRATOR advisor DAVID
EDELBERG, MD, in 1992. Zablocki reports what AWH, which now includes a CAM network arm,
has received roughly $40 mllion from venture backers, prior to the recent $20-million in additional
funds which will kick off the WHOLEHEALTHMD.COM internet division. Other data reported in
the article on AWH portrays it as a $27 million company with 320 employees, including over 100
clinicians in the firms 11 integrative clinics serving about 20,000 patients. A data base of
experience data is accumulating, since each patient reportedly fills out a form at the end of each
visit. MARK SANDEROFF, managing partner for ESSEX WOODLANDS HEALTH VENTURES,
the earliest institutional investor in AWH, is quoted as stating that the company is self-sustaining
and continues to grow quite nicely. Zablocki also looks at the recent reshaping of COMPLETE
WELLNESS CENTERS, a public company, WELLSPACE (preparing to expand into a second
Boston-area center), and some health system-based clinics, notably that associated with Los
Angeles CEDARS-SINAI. At Cedars, CAM activities are headed by department chair GLENN
BRAUNSTEIN,MD, and clinician MARY HARDY, MD. At the time of the report, the Cedars
INTEGRATIVE MEDICINE GROUP, which was started up in November of 1998 and co-funded
by the medical centers foundation, was treating 130 patients a month. Hardy expects the
number of patients per month will grow to 600 or 800 within three years. She notes the difficulty
many patients have with the fact that most must pay cash, even after we have them sign a
waiver. Zablockis penultimate point echoes the SMART MONEY theme (see abstract above):
And with so many traditional providers today in a financial squeeze, it seems likely that more will
see complementary care as an opportunity to tap into a new revenue stream. Zablocki
concludes by suggesting that the only question is whether venture-backed businesses, health
systems or stand alone CAM clinics will ultimately reap the benefits of the integration
movement. Individual copies: $8. 800-782-1054 (www.healthcarebusiness.com)
C. MEDICAL TRIBUNE: COVER ON INTEGRATIVE MEDICINE
The cover story for MEDICAL TRIBUNE (www.medtrib.com) in early October (Volume 40, Number
17: Integrative Medicine Gain Acceptance; 1,7) is a positive series of interviews on health
system moves into integrative medicine. The focus is on the integrative medicine efforts
underway at NEW YORK PRESBYTERIAN, BETH ISRAEL, and MEMORIAL SLOAN
KETTERING. Cardiothorasic surgeon MEHMET OZ, MD, the physician head of the NY
Presbyterian initiative (see October INTEGRATOR), and WOODSON MERRILL, MD, who heads
the Beth Israel venture, both are quoted as suggesting that the critical factor in gaining internal
support has been the prior trust in their skills as conventional providers. The Beth Israel facility is
slated to open next year.
End
INDUSTRY/HEALTH News File #41, December 6, 1999
__________________________

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6.
7.
DISCUSSION: FEEDBACK ON EMERGING NETWORK ECONOMICS

LANDMARK AND MOTHERNATURE.COM INK INTERNET DEAL
DISCOUNTS UNDER ATTACK: CA-DOC UPDATA, ACA
CHIROPRACTIC IN HOSPITALS: ACA REPORT ON AHA DATA
TWO FROM ACAM: REGARDING SUPPLEMENT SALES AND CHELATION RESEARCH
PATIENT RECRUITMENT: ADDITIONAL INFORMATION ON ORNISH/PMRI
STUDY PEGS ONLINE NUTRACEUTICAL SALES AT $1.8 BILLION BY 2003

__________________
____________________
1. DISCUSSION: FEEDBACK ON EMERGING NETWORK ECONOMICS

Two recent not-for-attribution conversations with CAM network executives, prompted by the lead
article in the November INTEGRATOR, stimulated the following comments. The first: Most of us
in the industry thought that pricing of discount products would erode, but it would erode over a
couple of years. We thought that the pricing this year would be at $0.05-$0.10 per member per
month (PMPM), and would eventually drop to $0.02-$0.03. But the move to offer these discount
networks for free has destroyed the financial viability of this business. Its hard to be taken
seriously by plans when they are getting us for free. Without any revenue from plans, we dont
have any revenue support to help plans understand how to elevate these services toward
covered benefits. Without them paying, were just a commodity. In the present environment, the
CAM provider in a discount network has effectively become a loss leader for the sales of natural
products. (See related notice under Miscellaneous.) The executive conceded that if the current
state continues, networks will increasing put energy, resources and creativity into enhancing their
web presence and online sales of product, rather into the challenges of breaking down barriers to
create more coverage for and use of CAM provider services. The second executive largely
confirmed these views, adding however that his firm never anticipated even $0.50 to $0.10 on
discounted products for large plans; he anticipated these would have been in the $0.02 to $0.03
range. He added a cautionary note that, based on research he had recently been exploring on
internet sales for natural products, the revenue projections of $0.30 PMPM or higher were very,
very optimistic. The questionable assumption in the November INTEGRATOR analysis was the
percent of HMO members who could be driven to the website to make their purchases.
2. LANDMARK AND MOTHERNATURE.COM INK INTERNET DEAL
LANDMARK HEALTHCARE, the Sacramento-based CAM services organization has signed a
deal with MOTHERNATURE.COM through which Landmarks affinity/discount clients will be able
to access natural products via the internet. KEVIN BURON, Landmarks VP for sales and
marketing, notes that the contract is to be announced just after the first of the year, after
MotherNature.com completes it initial public offering. Landmark used an RFP process, sent to 12
firms, yielding three finalists, two of which received onsite visits. Were pretty attractive, Buron
notes, because we have a pretty big base of members. There is no corporate merging in the
multi-year deal, although there are, in Burons words, some levels of exclusivity around it.
Buron says Landmark believes the move gives us a very strong player in the natural products
market. He stated that the firm is pleased that MotherNature.com is only offering natural
products. Landmark had previously established a natural products alignment with LEINER
HEALTH PRODUCTS, which will be discontinued, by mutual agreement, just after the first of
the year. The agreement with MotherNature.com does not change the way that Landmark
providers order traditional Chinese herbal medicines under Landmarks covered benefits which
include an herb component. Asked if any other networks were pursuing similar arrangements,
Buron noted simply: Youd hav e to have your head in the sand if you are not.
www.landmarkheathcare.com
3.
DISCOUNTS UNDER ATTACK: CA-DOC UPDATA, ACA
A.
FOLLOW-UP ON THE CA DOC INTERNET DISCOUNT PRODUCT NOTICE
Following New File #41, THE INTEGRATOR explored the development with other parties. The
core question, whether selling a discount product the sale of insurance was answered this way by
CALIFORNIA DEPARMENT OF CORPORATIONS spokesperson JULIE STEWART: The Knox
Keen law in California states that if an entity is providing a healthcare service for a periodic fee or
an annual fee, it should be regulated. The action was not prompted by consumer complaints, but
Stewart noted that DOC believes that the consumer could be harmed: There is no guarantee that
people will get what they pay for in these products, and we dont even know if its a discount since
health plans dont generally share that kind of information. ALAN KITNER, CEO with
CONSENSUS HEALTHCARE states that the action will have no effect on his firms discount
product since his firm has applied for and received a waiver to offer the product while Consensus
continues its process toward achieving a Knox Keene license. INTEGRATOR queries revealed
no evidence of any plan having received approval from DOC to offer an affinity product.
In addition, I/H subscriber ROY MAURER with CROSSROADS ALTERNATIVE CARE has
informed THE INTEGRATOR that the Los Angeles Times changed the location of their story on
the DOC action to www.latimes.com/business/cutting/othtech/19991126/t000107844.html
B.
Chiropractors Call on ACA to Do Something about Discount Products
CAM discounted, non-covered offerings, may be viewed -- if with skepticism -- as a step in the
door of the mainstream payment and delivery system for providers like acupuncturists,
naturopaths, and massage therapists whose services have historically been altogether absent in
health plans. Elizabeth Brown, MD, of the national Blue Cross Blue Shield Association,
promoted this perspective in a seminal article in Physician Executive (November-December
1998). Chiropractors, however, have already gained a foothold in mainstream payment, through
supporting research and, more importantly, through campaigns at the state and federal levels to
create mandated inclusion. (See Government Action, this issue, for developments in the
veterans administration.) For chiropractors, the discount products are increasingly being
challenged as a step in the wrong direction. Beginning in mid-November, a widely subscribed
listserve for chiropractors began sharing an exchange. A typical comment: Who comes up with
these ideas, anyway? I cannot believe that it is well intentioned (by the networks). It's too selfserving. If it's really and truly well intentioned, please stop helping! We were doing just fine,
thank you. Organized opposition is be forming. In mid-December, as a direct response to daily
emails and calls from members requesting intervention, Patricia Jackson, vice president for
professional development and research with the American Chiropractic Association (ACA)
requested that the organizations board of governors develop a position statement which
promotes only those CAM plans which offer covered services. The issue is being considered by
Gary Cuneo, ACAs executive vice president. The focus is timely: the ACA is, according to
Jackson, about to initiate a direct contact campaign with some of the nations top managed care
organizations.
4.
The December 1999 issue of the JOURNAL OF THE AMERICAN CHIROPRACTIC

ASSOCIATION includes a chiropractic-specific breakdown of data reported in the October 1999
INTEGRATOR in the AMERICAN HOSPITAL ASSOCIATION survey of CAM in hospitals.
Entering the Front Door: Hospitals Include Chiropractic Services, by Rand Baird, DC, MPH,
ACAs 1997-1999 chair for its Hospital Relations Committee, grew out of discussions between the
ACA and the AHAs subsidiary Healthcare InfoSource, Inc., which annually produces THE AHA
GUIDE. SARA PAX, of the InfoSource division, HEALTH FORUM, headed up work for AHA.
Inclusion of chiropractic meant a yes answer to one of the following four categories: onwed or
operated by the hospital or a subsidiary; provided by the health system; provided by a cumminity
network associated with the hospital; or provided throuhg a formal contractual arrangement or
joint venture with a provider who is not diretyl in the system. Of the 4,755 respondent facilities (of
6,097 member and non-member hospitals surveyed), 215 offered some form of chiropractic. The
finding was 656 for some other form of CAM, which was defined in a way which overlapped and
included chiropractic; 127 responded yes to both. At least one hospital in 43 states have some
chiropractic. Leaders are Missouri and Ohio, with 16 each, followed by Rexas and California (14)
and New York (12). The ACA paper does not differentiate between the level of chiropractic
services offered. The author views this report as a steppingstone to potential future joint
projects. Requests for more information should be directed to Barbara Dobberthien at the ACA,
at 703-276-8800.
5. TWO FROM ACAM: REGARDING SUPPLEMENT SALES AND CHELATION RESEARCH
A. SALES OF SUPPLEMENTS BY PHYSICIANS A December 6 report from Reuters notes
that the AMA is looking at a number of additional resolutions which are aimed at the vitamin and
dietary supplement industry. The original, widely-publicized 1998 action has already seen some
repercussions. According to an attorney-written article in a member mailing from AMERICAN
COLLEGE FOR THE ADVANCEMENT OF MEDICINE (ACAM), the OHIO STATE MEDICAL
ASSOCIATION has put CAM-oriented physicians on notice that failure to follow the AMAs
position statement will be viewed as a violation of the Ohio Revised Code, which requires
physicians to follow ethical guidelines. The state of NEW JERSEY prohibits physicians from
selling over a seven day supply, and markiNg up the price more than 10%. Contact: GERGORY
SEELEY, ESQ, 216-566-8200 (www.ssse-law.com).
B. ACAM MEMBERS ASKED TO DOCUMENT CHELATION OUTCOMES
TED ROCEMA, MD, the new president of the AMERICAN COLLEGE FOR THE ADVANCEMENT
OF MEDICINE, opened his presidency with a mailing to members requesting prospective case
studies on chelation. Rozemas letter followed a request from CONGRESSMAN DAN BURTON
(R-IA) and clarification from the director of the NIH HEART LUNG AND BLOOD INSTITUTE.
Burton is asking for 100 cases and Rozema is calling on members to send in 1000. The group is
using a Registry process, with all participating physicians using the same protocol. Data
collection and analysis is expected to be completed within 3 years. Rozema views the success of
the PREVENTIVE MEDICINE RESEARCH INSTITUTE (see below) in getting a pilot with HCFA
as evidence that his group too can make headway If Dean Ornish can get into HCFA, he is
opening the door for us to follow later. For Rozema: 828-859-9933 www.acam.org
6. PATIENT RECRUITMENT: ADDITIONAL INFORMATION ON ORNISH/PMRI
News File #40 included an update on some of the activities for the PREVENTIVE MEDICINE
RESEARCH INSTITUTE, headed by DEAN ORNISH, MD. A recent INTEGRATOR interview
with GLEN PERELSON found a positive twist on the 40-ish insurers who have been known to
cover the program, on at least a case by case basis. Perelson does the math this way: PMRI
has 16 sites; in each site there are probably 5 significant insurers; if all covered the program, 80
insurers (5 X 16) would be on the list; therefore, while 40 may seem small as a total number of
insurers, this figure represents some penetration into roughly 50%. Perelson notes that the lack
of national coverage by the centers has made routine coverage by major national insurers
difficult. He also shared that at the late November annual meeting of medical directors for the
sites, a core agenda topic was strategies for recruitment of people into the groups research base
for both the Medicare pilot and a new study looking at an Ornish-type program for individuals with
prostate cancer. CAREN RAISIN, RN, in change of patient recruitment provides the following tips
in her strategy for increasing referrals: make physicians think its their idea; assure them that you
dont want to manage the patient; reassure them that you value what they do; let them know that
information is out there to support your intervention; and let them know that you can assist them
with any patients who may show interest in your services. Raisin sums up her approach this way:
I love em up, make sure they know that were not trying to compete with them that your
approach is something that can help them practice medicine better. Like Perelson, she affirms
that the extensive published support for Ornishs work is immensely useful; as is the affiliation
with respected physician champions. Raisin adds: I also push broad and wide in advertising.
With CAM, you never know where you can pick up patients, and people in barber shops and
health food stores will take your fliers and business cards. There are a lot of community
awareness groups that will work with you. Raisin believes her 20 years as an oncology and
cardiac nurse also strengthens her ability in outreach: I know these physicians from working with
them.
7. STUDY PEGS ONLINE NUTRACEUTICAL SALES AT $1.8 BILLION BY 2003
A recent 93 page, proprietary report on e-tailing by SALOMON SMITH BARNEY has pegged
total nutritional products sales through the internet at $1.6 billion by 2003, from $34 million in
1998, a 117% compounded annual growth rate. An article in NATURAL BUSINESS (December
1999, pages 14, 16) notes that SSB analysts believe that many factors make online sales of
nutraceuticals particularly attractive to consumers. However, the analysts believe that only a few
(3 to 5) industry players will succeed online. Specific sites expected to survive are
Drugstore.com, MotherNature.com, Healthshop.com and PlanetRx.com.
www.naturalbusiness.com)
End
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1.
2.
3.
4.
5.
6.

PHILADELPHIA UNIVERSITY/BAYER IN CAM INSTITUTE
PUBLISHING: NEW CAM DATA-BASES INTRODUCED
NEW CAM BENEFITS FROM UPSTATE NEW YORK
COMMENTARY: RESEARCH STRATEGIES AND POTENTIAL FROM NIH
HEALTHGRADES.COM IN DYNAMIC CHIROPRACTIC DEAL

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1. CHIROPRACTIC IN HOSPITALS: ACA REPORT ON AHA DATA

The December 1999 issue of the JOURNAL OF THE AMERICAN CHIROPRACTIC
ASSOCIATION includes a chiropractic-specific breakdown of data reported in the October 1999
INTEGRATOR in the AMERICAN HOSPITAL ASSOCIATION survey of CAM in hospitals.
Entering the Front Door: Hospitals Include Chiropractic Services, by Rand Baird, DC, MPH,
ACAs 1997-1999 chair for its Hospital Relations Committee, grew out of discussions between the
ACA and the AHAs subsidiary HEALTHCARE INFOSOURCE, INC, which annually produces
THE AHA GUIDE. SARA PAX, of the InfoSource division, HEALTH FORUM, headed up work for
AHA. Inclusion of chiropractic meant a yes answer to one of the following four categories:
owned or operated by the hospital or a subsidiary; provided by the health system; provided by a
community network associated with the hospital; or provided through a formal contractual
arrangement or joint venture with a provider who is not directly in the system. Of the 4,755
respondent facilities (of 6,097 member and non-member hospitals surveyed), 215 offered some
form of chiropractic. The finding was 656 for some other form of CAM, which was defined in a
way which overlapped and included chiropractic; 127 responded yes to both. At least one
hospital in 43 states have some chiropractic. Leaders are Missouri and Ohio, with 16 each,
followed by Texas and California (14) and New York (12). The ACA paper does not differentiate
between the level of chiropractic services offered. The author views this report as a
steppingstone to potential future joint projects between the ACA and the AHA. Requests for
more information should be directed to Barbara Dobberthien at the ACA, at 703-276-8800.
2. PHILADELPHIA UNIVERSITY/BAYER IN CAM INSTITUTE
An early December release from the UNIVERSITY OF SCIENCES OF PHILADELPHIA (USP)
announced that the institution has, with partial funding from the BAYER CORPORATION, created
a COMPLEMENTARY AND ALTERNATIVE MEDICINE INSTITUTE (CAMI). The program focus
in natural agents with the announcement mission of setting uniform standards for herbal
remedies. Executive director of CAMI is ARA DER MARDEROSIAN, PhD, a pharmacognocist
who is one of the leading international authorities on natural products research. Staff will include
16 USP faculty. The research will focus on analyses of herbs, bioassays, in vitro and in vivo
studies, and clinical evaluations of supplements and other herbal preparations. In the release.
USP President PHILIP P. GERBINO explains, "The establishment of this Institute is a
continuation of our original mission. When we were founded in 1821 as the Philadelphia College
of Pharmacy, a primary goal was to raise the quality and purity of drugs in the marketplace."
USP was founded in 1821, the nations first college of pharmacy. Bayer Corporation's Consumer
Care Division, based in Morristown, NJ, manufactures One-A-Day multivitamins and Specialized
Blends. PR Newswire, 12/8/99.
3. PUBLISHING: NEW CAM DATA-BASES INTRODUCED
Recent months have seen a wide array of new written, CD ROM and electronically-available
database resources on CAM targeting providers are entering the marketplace. These databases
are promoted as critical tools for advancing physician understanding of appropriate uses of CAM
therapies and agents.
A.
INTEGRATIVE MEDICAL ARTS DEBUTS INTERACTIONS
Portland, Oregon-based INTEGRATIVE MEDICAL ARTS (IMA), publishers of the IBIS

(Integrative BodyMind Information System) CD-ROM database on natural therapies, is now
publishing Interactions: IBIS Guide to Drug-Herb and Drug-Nutrient Interactions. The firm,
headed by MITCHELL STARGROVE, ND, LAC, created the earliest provider-oriented,
computerized CAM database products over ten years ago. Stargrove used a large group of
naturopathic physicians and acupuncturist contributors, mainly associated with NATIONAL
COLLEGE OF NATUROPATHIC MEDICINE, also in Portland. Stargrove has subsequently
broadened his contributor and advisor list to include an encompassing array of professionals,
including INTEGRATOR advisors TED KAPTCHUK, OMD, CHRIS FOLEY, MD, and ROBERT
STERN, DC. Text price: $99.95. Contact: 503-526-1972, or www.IBISmedical.com
B.
HEALTHNOTES CLINICAL ESSENTIALS GUIDE
October 18, 1999, HEALTHNOTES, INC. (HNI), founded by chiropractor SCHUYLER LININGER,
DC, also based in Portland, introduced Clinical Essentials Guide to Drug-Herb-Supplement
Interactions." HNI is presently the leading provider of consumer content on natural products for
the web, with over 20 partner firms licensing its $150,000/year data base. (See XXXX
INTEGRATOR for a partial list of clients.) Content in the new publication, also available
electronically, includes information on drugs which can deplete the body's essential nutrients,
supplements which may improve a prescription's effectiveness or reduce side effects, and which
herbs and drugs should never be taken together, according to a company release. The text is
the first major foray into the conventional provider market by HNI. The written version is a 325
page, loose-leaf binder. At a recent New York meeting on health care and the web, Lininger
revealed that the firms 1999 revenues are expected to reach roughly $5 million. Core
contributors to the data base are STEVEN AUSTIN, ND, and DONALD BROWN, ND, both
leading educators on natural products. Brown also holds a position with WARNER LAMBERTs
natural products division. The multi-disciplinary HNI team also includes therapeutic nutrition
pioneer ALAN GABY, MD, a faculty member at BASTYR UNIVERSITY. Text price: $59.95.
Contact: interactions@healthnotes.com or 800-659-7630.
C.
INTEGRATIVE MEDICINE COMMUNICATIONS: ACCESS, NEW COMMISSION E
Newton, Massachusetts-based INTEGRATIVE MEDICINE COMMUNICATIONS (IMC),

publishers of the INTEGRATIVE MEDICINE CONSULT and THE INTEGRATOR, provides
content on integrative medicine available both in text and electronic formats. The award-winning
German COMMISSION E, authored by the AMERICAN BOTANICAL COUNCIL, is now available
as an expanded, licensable, reference database, entitled HERBAL MEDICINE/EXPANDED
COMMISSION E MONOGRAPHS. Citations, references, dosages, contraindications and
adverse effects are offered on over 100 herbs. A text version is available at $49.95. IMC has also
launched "Integrative Medicine Access, a database providing allopathic and alternative treatment
options, side by side, condition specific and cross-referenced with herbs and dietary supplement
monographs to create a broad platform on integrative medicine. The firm plans to introduce
comprehensive content on herb/drug interactions and depletions in the first quarter of 2000.
These products are available in electronic as well as in print formats. Among IMC database
clients are MORE.COM, MEDCONSULT.COM, HEALTHQUICK.COM, ONHEALTH.COM and
MDCONSULT. The IMC editorial team is a consortium, led by conventional physicians, whose
affiliations range from JOHNS HOPKINS medical school faculty members to integrative clinic
directors to past presidencies with the AMERICAN HOLISTIC MEDICAL ASSOCIATION. The
work of the MDs is supported by pharmacists, nurses and representatives of distinctly licensed
CAM professions. Contact: Marcy Robinson, at (617)641-2300 - www.onemedicine.com
D. MICROMEDEX RELEASES ALTCAREDEX
In mid-November (11/16, PR Newswire), MICROMEDEX announced release of its AltCareDex
data base of patient education materials on supplements and therapies. The release makes
similar claims about the database: usage, dosage, side effects, interactions and precautions.
Micromedex uses providers from both the conventional medical and CAM communities. The firm,
based in Denver, Colorado, is a division of THOMSON HEALTH INFORMATION GROUP.
Micromedex boasts use of its conventional information by over 9,000 facilities in 92 countries.
Contact: Nancy Sayre, at 800-525-9083. www.micromedex.com
4. NEW CAM BENEFITS FROM UPSTATE NEW YORK
A. CAM STARTER KIT: UNIVERA/LANDMARK IN ACU/MASS CORE BENEFIT
In one of the few moves in 1999 by an HMO to include CAM in a core benefit in a non-mandated
environment, upstate New York-based UNIVERA has contracted with Sacramento-based
LANDMARK HEALTHCARE for a combined acupuncture and massage benefit which will be part
of the 130,000 member HMOs core benefit. Services will only be covered for a limited set of
conditions, and based on a referral from a PCP, with a $20 co-pay and 10 visit limit. KEVIN
BURON, senior VP with Landmark calls the program a CAM starter-kit. He adds that
purchasers can buy-up into a more rich benefit. The initial network will include roughly 50
massage therapists and 10-12 acupuncturists. Both provider categories are licensed in the state.
Landmark is using national certification exam developed through the AMERICAN MASSAGE
THERAPY ASSOCIATION as a core credentialing requirement. Buron believes the benefit may
be the first non-mandated for massage in group health. [Any other information would be
welcome. Most Washington state plans include these practitioners under the states 1995 every
category of provider mandate.] The HMO, a link between Syracuse-based PHP and Buffalobased HEALTH CARE PLAN, will be in effect for all members starting January 1, 2000. The
members of the Buffalo plan had access to the services as of October 1, 1999. Buron identifies
the value of the start-kit this way: This is a movement toward real covered benefits, so these
providers can be part of disease management. One of the other, significant core CAM benefits
this year was also through Landmark, with PHS in the NY/CT/NJ tri-state. The internal leader on
the product is JOHN WALKER, the HMOs senior director for health services.
B. TWO NEW YOUR BLUES ADDS CAM DISCOUNTS VIA CONSENSUS
Members of BLUE CROSS AND BLUE SHIELD OF WESTERN NEW YOUR and BLUE SHIELD
OF NORTHEASTERN NEW YORK are the latest Blues plans to jump onto the CAM discount
bandwagon. Each will contract with Emeryville, California-based CONSENSUS HEALTH to
deliver the products. Services (and discounts) will include acupuncture and massage therapy
(255), spas/fitness centers and personal trainers (15%), as well as discounts on healthful meals
from local restaurants (15%). Spokeperson for the two plans, in the Consensus-generated
release, is CYNTHIA AMBRES, MD, who serves as chief medical officer for both. Total lives
include 750,000 commercial and 1.6 million Medicare. Consensus now claims 7 million people
will be served through its contacts. The offering begins February 1, 2000, and extended to
individuals in both managed care and indemnity products. For Consensus, contact Scott Marber
(510)285-2123.
5. COMMENTARY: RESEARCH STRATEGIES AND POTENTIAL FROM NIH
A Beltway lobbyist who wished to remain off the record recently shared with THE INTEGRATOR
some useful perspectives on developing funding possibilities for research. The lobbyist was
referred to THE INTEGRATOR by MARC MICOZZI, MD, PhD, executive director for the
COLLEGE OF PHYSICIANS OF PHILADELPHIA COLLEGE and a leading CAM editor and
writer. First, the NIH NCCAM is scheduled to receive another substantial increase in next years
budget -- up $19-million (40%) from the present $50-million level. The lobbyist views the
increases as part of broader jumps in NIH appropriations: up $2 billion last year and another $2.3
billion in the most recent appropriation. Each represents an approximately 15 percent annual
growth rate. The lobbyist believes there is a huge potential opening with this new money, that
the NIH has not begun to spend all of last years new money: The NIH is growing so fast that it
will have to define itself in a broader way. He believes that the broader definition may mean a
greater willingness to move more aggressively into some of the health system, economics and
cost-benefit research questions which may be useful to CAM interests. The broadening of
mission could create more opportunities to gain answers to the kinds of soft issues which
employers are asking regarding CAMs role in increasing productivity and functionality, while
decreasing presenteeism and absenteeism. He also believes that the increased funding may
mean additional opportunities through such small NIH players as the OFFICE OF BEHAVIORAL
AND SOCIAL RESEARCH. For Micozzi: (215)563-3737
x212
6.
HEALTHGRADES.COM IN DYNAMIC CHIROPRACTIC DEAL
Lakewood, Colorado-based SPECIALTY CARE NETWORK, through its majority-owned

subsidiary, HEALTHGRADES.COM, recently signed an exclusive agreement with DYNAMIC
CHIROPRACTIC to make available a national directory of chiropractic. The dot-com firm will
receive both a database on 60,000 chiropractors but also online access to the publications
chiropractic-related 7,000 articles. KERRY HICKS, CEO of HealthGrades.com and its parent
corporation, spoke of the acquisition as part of the firms continuing to expand our specialty
information offerings and to help consumers make better informed decisions about their health
care." Dynamic Chiropractic, a bi-weekly, is the most widely reach of chiropractic publications.
While HealthGrades.com is known for report cards on health facilities, the company release did
not specifically note whether this function would be extended to chiropractors. The firm is
positioning its ratings site as a portal for consumers to locate a wealth of information on health
care providers. Patrick Jaeckle, 303/716-6509; www.healthgrades.com
End
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NEWS FILE #44, JANUARY 3, 2000
A Service for the INTEGRATOR INDUSTRY/HEALTH Subscriber
TOP 10 TRENDS FOR CAM MOVING INTO THE YEAR 2000
__________________
____________________
Hello and Happy New Year! I thought I would begin the year by sharing with you, in advance of
publication in January-February INTEGRATOR, my look at the top 10 trends for our industry as
we head into the year 2000. Curious about where you think Ive missed the boat, gone
overboard, set a useful course. Best wishes to each of you in your work in the coming year. -JW
______________
TOP 10 TRENDS FOR CAM MOVING INTO THE YEAR 2000
---
Moving Beyond the Quarantine
Predicting is difficult, especially about the future, Dan Quayle is said to have stated.
Last years predicted trends (January 1999 INTEGRATOR) missed the mark in a few places.
Notably off were expectations about the impact of the proposed federal CAM commission (not yet
off the ground) and the emergence of the federal government as a purchaser (still mostly in study
phase see ORNISH story, and VETERANs short, this issue). However, an overall its gonna be
slow tenor to the 1999 forecasts (Health Plans Get Queasy: Opt for Non-Benefit Benefit; Last
Hired, First Fired) seems, on reflection, to decently well, if not always happily, capture 1999
activity.
To honor the mind-body notion that things visualized are at least marginally more likely to occur,
Im letting jazz lyricist Mose Allison sit in to establish the tenor for the year 2000. Allison sang:
Put the accent on the affirmative. The positive accent in some of these trends, however, is not
just energetically based. Those involved with integration initiatives in the coming year will not
only be able to shape their initiatives based on an emerging experience base. Broader
demographic and economic and factors, as noted, will also create opportunities.
1.
EXPANSION OF CAM INTEGRATIVE CLINIC OFFERINGS
For expansion-oriented integrative clinics, 1999 was a year of holding tight, restructuring, getting
ones bearings and, as MORT ROSENTHAL, CEO of Boston-based WELLSPACE puts it,
proving or changing the model. Individual operators can now make decisions based on
proprietary and collective wisdom, together with maturing relationships, rather than the
intoxication of an imagined market. FORECAST: Solid, sober, step-by-step advancement of
some ventures, the addition of new facilities or satellites, and for others, new services which are
more deeply integrated into health system activities of parent organizations. CAM units will
increasingly be at the table in health system strategic planning. Meantime, health system-based
ventures will begin to be viewed more positively, as system-wide business losses following the
1997 balanced budget act start shrinking in the wake of 1999 corrective legislation.
2.
EMERGENCE OF COLLABORATIVE AGENDAS
Perhaps the critical moment in the maturation of any industry or profession is when leaders
recognize that there are places to collaborate and place to compete, and decide its about time
they learn to collaborate. FORECAST: Year 2000 will be marked by significant collaborative
activity among diverse stakeholders. Some will be informal, via internet listserves, or temporary,
via CEO conferences. Others, such as the AMERICAN HOSPITAL ASSOCIATION initiative and
those between academic medical centers, will be more ambitious as the CAM industry realizes its
economic presence in healthcare requires combined clout.
3.
INROADS IN INPATIENT SERVICES
The door to inpatient care -- where most healthcare dollars are spent and conditions are most
grave -- has been a line in the sand across which little CAM has yet crossed. New explorations
at respected institutions will bless the in-migration of CAM into hospital care. FORECAST: The
twin rivers in mainstream medicine of the so-called healing healthcare movement and of CAM
integration will increasingly unite to give strength to CAMs role in hospital-based care. The
former will gain breadth, depth and therapeutic expansion, while the CAM integration movement
will gain authority and respect by deeper association with pioneering efforts to humanize hospital
medicine.
4.
HEATHPLANS SLOW: SHAKE-OUT AND CONSOLIDATION OF THE NETWORKS
The economic shock to CAM networks of health plan preference for discount products over
covered benefits, combined with the draconian network competition which led some major
networks to offer discount products for free, will cut small players out of the market and leave
medium players looking for partners. FORECAST: No more than 3-4 of the would-be national
players will have the backing to wait out the red ink. The wait may prove long. Healthplans will
increasingly be recognized as the last kids to embrace a substantive CAM exploration -following not only consumers, physicians, and health systems, but even employers, who
eventually will, over the next five years, awaken the sleeping giant. A subset of plans will begin to
offer some covered benefits as the proliferation of discounts will mean that market-distinction
requires moving CAM up a notch. The CAM Starter Kit strategy, described in this issue, gives
risk-adverse plans an easy method for gaining a leg-up.
5.
CAM SCAM: CAM PROVIDERS SAY NO TO CAM DISCOUNTS
The first excitement of inclusion has left the distinctly licensed CAM providers. Networks are
already having a hard time credentialing quality providers, especially when their only certain offer
to participating providers is that they will have to do more for less, with their present clientele
pleased as punch when they show up to pay for their new deal. Many CAM providers have as
cornerstones of their cash practice the very people whose would be most attracted to the
discounts. Marketing advantage for the plan is directly felt as income loss to participating
providers. FORECAST: Healthplan love of the discount (low/no risk, high marketing value) will
bang up against growing CAM provider disdain and refusal to participate. CAM Scam will
increasingly roll off the tongues of providers as synonymous with discounts. (See related
article, this issue.)
6.
INTERNET/INTRANET STRATEGIES ENHANCE COVERAGE AND DELIVERY
Numerous significant forces are pushing internet and intranet CAM strategies. Network
economics will push web investment and partnerships, such as the LANDMARK HEALTHCAREMOTHERNATURE.COM deal reported this issue. Second, good education is a necessary first
step in deepening CAM integration and referrals. Diverse publishing interests -- including the
folks at onemedicine.com who publish this newsletter -- are sending out marketing teams to
convince health systems that CAM databases and other products are the ideal internet and
intranet platforms for advancing CAM understanding and integration. (See Publications, this
issue.) Additionally, more educational offerings, like the Program in Integrative Medicine at the
UNIVERSITY OF ARIZONA SCHOOL OF MEDICINE, will offer CAM programs electronically.

Finally, there is the general health system infatuation with the net. FORECAST: CAMs consumer
focus and the internet as symbol of consumer power will increasingly be intertwined in combined
strategies.
7.
PRESENTEEISM: CAM EXPLORED AS AN EMPLOYERS ALLY
The advancing sellers market for labor amidst a growing economy and shrinking labor pool is
prompting increasing numbers of employers to view employees as an investment rather than as a
cost center. FORECAST: Thoughtful business leaders will connect the dots and see that the
consumers investment in his/her own health, via cash payment for CAM services, may well be a
useful divining tool for forming their own efforts to create health and productivity, thereby enhance
employee loyalty and productivity. The awakening to presenteeism, explored this issue, opens a
new door to pitch CAMs cost-effectiveness.
8.
RESEARCH: FRAMING QUESTIONS FROM THE DEMAND SIDE
The consumer -- on the demand side -- brought CAM to the table. Consumer assertions (felt
better, could do more stuff, its effective, helped with my chronic condition, didnt have the
side effects) were, however, immediately translated into more reductive framing by medical
directors and researchers who operate on mainstream medicines supply side (what is the
mechanism? which individual agent in the wholistic protocol, if any, is really having an effect?).
Something was lost, besides the factor of the patients self-experimentation, in the translation.
FORECAST: The emergence of the employers CAM interest -- on the demand side -- will
bring the consumers original assertions back onto the research agenda, but with a little more
clout this time. The vast expansion of NIH funding, in general, and specifically at the NATIONAL
CENTER FOR COMPLEMENTARY AND ALTERNATIVE MEDICINE (see Government Action,
this issue) will create more funding opportunities for demand-side questions.
9.
NATIONAL COMMISSION INCREASES FOCUS ON BROADER INTEGRATION ISSUES
Late 1999, like late 1998, was marked by rumors of impending appointment of members to a
WHITE HOUSE CAM COMMISSION which is to examine opportunities to enhance appropriate
integration and identify policy barriers. FORECAST (amended from last years similar
expectation): It would be foolish for the White House in this election year to not stick this
additional feather in its political cap. Such a Commission creates an opportunity to systematically
engage the challenges righting the legacy of widespread, historic prejudice against natural
healthcare in U.S. health policy.
10.
BOOMERS WILL CONTINUE TO GET OLDER AND SICKER
This Dan Quayle Memorial Prediction makes certain something is correct in these
prognostications. FORECAST: The aches and pains of aging boomers, and their continuing
exploration of CAM approaches as consumers, will continue to be the special ingredient fueling
the CAM integration movement. From positions of power in medical systems, HMOs and
corporations, aging boomers will expand their roles as the internal champions of integration
strategies for natural healthcare.
Your comments, as always, are welcome. 206-933-7983, or my personal e-mail: pihcp@aol.com.
End
INDUSTRY/HEALTH News File #44, January 3, 2000
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News File #45, January 14, 2000

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6.
TWO ON CAM UTILIZATION: ND, LAC AND LMP IN WA; HCFA AND CHIROS
AWHN TO BE AWARDED NATIONAL CONTRACT WITH UNITED HEALTHCARE
CONSUMERS: BREAST CANCER PATIENTS USING CAM STILL NOT TELLING MDS
FOUR ON CAM BUSINESSES AND THE WEB
CAM PROFESSIONS: CHIROS SHIFT AETNA GUIDELINE ON ACUTE LOW BACK
PRESENTEEISM AND THE EMPLOYER-CAM CONNECTION

__________________
THIS ISSUE begins with discussion of utilization of CAM as a covered benefit. Your comments on
why utilization is low are welcome. Note that two of the items in this issue, including one on
utilization, report the successes of the aggressive position the American Chiropractic Association
has taken toward what it feels is disrespect for chiropractic among leading payers -- in these
cases, Aetna and Medicare. The other CAM professions either havent the financial wherewithal
to represent themselves sufficiently in some of these core decisions, or havent dedicated funds
in these directions. Finally, a look at presenteeism -- new strategies for linking CAM with
employers.
____________________
1.
TWO ON CAM UTILIZATION: ND, LAC AND LMP IN WA; HCFA AND CHIROS
A. NOTES ON LEVELS OF CAM UTILIZATION IN WASHINGTON STATE

Two INDUSTRY/HEALTH subscribers recently requested utilization information about CAM
services. The following brief notes may be useful to other subscribers. A good source was a
study in Washington involving covered member of GROUP HEALTH COOPERATIVE OF PUGET
SOUND and PREMERA BLUE CROSS in the second year following the 1995 mandate. Both
looked at a combination of massage, naturopathy and acupuncture. The first is a gatekeeper
model with a limited set of conditions (6-8) approved for each CAM provider type, the Blues plan
a direct access, $500 limit, 50/50 co-pay. At GHCPS, 0.6% of members were referred for
covered CAM. The average cost to the plan, per user, was roughly of $385. In the PPO model at
Premera, 1.2% of patients used, average cost to Premera of about $185. Interestingly, if the
patient share of $185 in the 50/50 model is added in, the total is roughly the same as that at
GHCPS. Both were in the 2nd year of the mandate; the plans were not promoting the CAM
products to members which may account for some of the low utilization. Note that this is not
used CAM or even used CAM for the covered conditions. Rather, it is the subset of users
whose worked the system to get coverage. The numbers reflect a combined use of ND, LAc, and
LMP. GHCPS said that this combined use was less than 1/3 of the use of chiro alone. The data
is from a study, by DARRELL STEWART (then with CAM network ALTERNARE HEALTH
SERVICES), JOHN WEEKS, and STEVEN BENT, MD, of the UCSF OSHER CENTER. The
study has been submitted for publication, but the data was reported by PETER WEST, MD, a
medical director for Premera, and Weeks, at a HEALTH FORUM conference in Hawaii.
COMMENT: The I/H subscriber asked if this data suggest that the national survey data is
misleading or rubbish. One perspective: Take the Eisenberg data (42% use) or
Stanford/ASHP (69% use). Factor out self care. Factor out non-covered nutraceuticals. Factor
in medical necessity/limited conditions. Factor in gatekeeper/limited access. Factor in provider
networks/limited selection. Factor in the refusal of some patients to engage the hassle factor of
insurance (Ive been paying cash, might as well continue to ). Factor in worried plans not
advertising their benefits and CAM consumers not knowing they exist. Factor in the "first years of
a benefit is always when the insurer/network makes a killing" (because no one knows it exists).
The result would be expected to be a truly skinning band of initially covered services.
B. HCFA TO REPORT BASELINE DATA ON CHIROS IN MANAGED MEDICARE
According to release from THE AMERICAN CHIROPRACTIC ASSOCIATION, the OFFICE OF
THE INSPECTOR GENERAL of the US HEALTH AND HUMAN SERVICES, the (OIG) will
provide in its "Work Plan" for the year 2000 "baseline data on chiropractic utilization by Medicare
enrollees in managed care organizations." The information, which has been requested by the
Health Care Financing Administration (HCFA), "will assist HCFA in monitoring managed care
organizations' compliance with HCFA policies on chiropractic care," according to the OIG. ACA
attributes the HCFA action to the pressure of an ACA's lawsuit against HCFA, filed in November
1998 in U.S. District Court, which argues that many seniors are effectively denied their legal right
to chiropractic services in managed Medicare. A 1999 HCFA report showed the number of
HMOs that claimed to make available chiropractic services but included no information regarding
whether any patient actually received chiropractic services, from whom, or the number of services
provided. Early data has suggested that while 4-5% of seniors use chiropractic services in
traditional Medicare, the figure has shrunk to only 0.5% in managed Medicare.
2. AWHN TO BE AWARDED NATIONAL CONTRACT WITH UNITED HEALTHCARE
Solid reports from inside the industry are that UNITED HEALTHCARE, the 15-million member for
profit HMO, has selected AMERICAN WHOLEHEALTH NETWORKS as its partner in a national
roll-out of a CAM product. Sources at United would not confirm the reports for THE
INTEGRATOR at this time. AWHN was known to have secured United contracts on discount
products in Georgia and Colorado. The network was believed to have the upper hand, given a
reportedly $10-million United investment in AMERICAN WHOLE HEALTH. The award, which
follows an extensive national bidding process, is expected to be mainly to provide networks to
support discount products.
3. CONSUMERS: BREAST CANCER PATIENTS USING CAM STILL NOT TELLING MDS
The JOURNAL OF THE NATIONAL CANCER INSTITUTE reported in early January that use of
CAM is high (48%) among breast cancer patients, but only a half are talking to their physicians
about it . The researchers, headed by Marion M. Lee, PhD, from the department of epidemiology
and biostatistics at the University of California, San Francisco, are recommending that physicians
broach the subject with their patients. The most commonly reported alternative remedies were
dietary therapies (26.6%). Of these, 8.2% were megavitamins and 19.8% were other specialized
diets. Other common therapies included spiritual healing (23.7%), herbal remedies (12.9%),
physical methods (14.2%), and psychologic methods (9.2%). The researchers concluded that the
prevalence of using some therapy is 10%-30% higher than reports from pre-1995. The
researchers looked at use by ethnicity and found that blacks most often used spiritual healing
(36%), while Chinese women most often used herbal remedies (22%), Latina women most often
used dietary therapies (30%) and spiritual healing (26%). For whites, 35% used dietary methods
and 21% used physical methods such as massage and acupuncture. From WEBMD, January 7,
2000,
4. FOUR ON CAM BUSINESSES AND THE WEB

A. ALIGNIS INKS INTERNET NATURAL PRODUCTS DEAL WITH VITAMINS.COM
Continuing a trend in the network industry, Georgia-based ALIGNIS has announced a formal
affiliation with internet retailer VITAMINS.COM. The Alignis release noted that the 2.2 million
members of HORIZON BLUE CROSS BLUE SHIELD OF NEW JERSEY will become the first
Alignis clients to access the program. The agreement was announced by CELIA TULLY, the
firms VICE PRESIDENT FOR BUSINESS DEVELOPMENT. Vitamins.com is known for its deep
discounts, noted as between 15%-52% in the release. Other components of the product provided
by Vitamins.com are a Health Encyclopedia, online nutritionist, a personal trainer, and an online
newsletter. Noting the affiliation for Vitamins.com is ROBERT HAFT, President and CEO of
Vitamins.com. Alignis manage programs for more than 6 million health plan members
nationwide. Last month THE INTEGRATOR reported that LANDMARK HEALTHCARE had
signed a similar deal with dot-com competitor MOTHERNATURE.COM. For Alignis, contact
(404) 848-0944. For Vitamins, George Evanko, 202/293-8561, or evanko@promarcagency.com.
B. ONEBODY.COM SURFACES AS CONSENSUS INTERNET PLAY
A late 1999 national mailing to CAM providers from ONEBODY.COM provides the first inkling of
the direction CONSENSUS HEALTH is taking with the $11-million in venture money the firm has
secured toward a major dot-com play. A spokesperson for Consensus confirmed an
INTEGRATOR query about whether OneBody was related. While a formal announcement is not
scheduled until early later this month or early February, the provider mailing provides some
insights. OneBody is presented as a unique community of health professionals devoted to
bringing alternative, complementary and traditional medicine into harmony. Providers are being
given an opportunity to have an in-depth, customized web page created, including such things
as a photo, typical fees, accepted payment methods and personal message or mantra. The
final message: Find out how much further each of us can go by thinking, speaking and acting as
one. The site appear to be the first which is focusing this significantly on the CAM professionals.
The business slogan: Helping people connect with health alternatives and healing professionals.
C.
AWH FORMALLY ANNOUNCES WHOLEFOODS DEAL
In a January 4 release which states the firm is the first web site to exclusively focus on the $39.7
billion integrative medicine market, AMERICAN WHOLEHEALTH, publisher REBUS and natural
foods supermarket WHOLE FOODS formally announced WHOLEHEALTHMD.COM. (See News
File #
and ??? INTEGRATOR.) The release states that the WholeHealthMD web site will
offer doctor-directed, customized self-care strategies for dealing with more than 100 common
ailments in early 2000. These Healing Paths(TM) will be based American WholeHealth
protocols. The release positions WholeHealthMD as combining one of the country's leading
consumer health information publishing companies, the largest board-certified network of
physicians and health professionals specializing in integrative medicine, and the world's preeminent retail chain specializing in whole foods and health products. AWH is presented as
having 14 operating clinics, and AWHN as having relationships with over 20 companies
representing 20 million lives.
D. HEALTHNOTES FORMS MEDICAL ADVISORY BOARD
Portland, Oregon-based HEALTHNOTES, a leading provider of internet content on CAM, has
added a medical advisory board to its base of CAM provider content providers. Among those on
the board are BRUCE BARRETT, MD, PhD (anthropology)/University of Wisconsin Medical
School in Madison; SARAH L. BERGA, MD/University of Pittsburgh School of Medicine;
RICHARD PODELL, MD, FACP/East Coast Clinical Research, BARRY RUMACK, MD/Chairman
Emeritus and founder of Micromedex, Inc; VICTOR SIERPINA, MD/University of Texas Medical
Branch; and EILEEN STUART-SHOR, RN, CMS/WellCare Associates (an INTEGRATOR

advisor); and VARRO TYLER, PhD, ScD/Purdue University. The release states that the
HealthNotes database is presently in use in 5,000 pharmacies and through 25 internet players.
5. CAM PROFESSIONS: CHIROS SHIFT AETNA GUIDELINE ON ACUTE LOW BACK
In action taken in support of its Ohio affiliate, the AMERICAN CHIROPRACTIC ASSOCIATION,
The AMERICAN CHIROPRACTIC ASSOCIATION recently succeeded in convincing AETNA-US
HEALTHCAREs to include manipulation in its guidelines for low back pain. Following
intervention by PAT JACKSON at ACA, Aetna re-issued a new guideline which notes that "a short
course of physical therapy or other spine therapy, such as spinal manipulation or massage may
be beneficial." The core of the ACAs case is the Agency for Health Care Policy and Research
guidelines on acute care for back pain in which the only treatment (other than NSAID's)
recommended by the US Government was manipulation. The ACA states that subsequent
guidelines issued by insurance companies and some medical groups have conveniently omitted
manipulation from their guidelines.
6. PRESENTEEISM AND THE EMPLOYER-CAM CONNECTION
The November issue of BUSINESS AND HEALTH includes a four page feature on the emerging
concept of presenteeism as a benefit outcome. The term is defined, somewhat non-intuitively,
as the productivity loss that occurs when workers are on the job but are not fully functioning.
The term was reportedly first used in an October 1999 issues of the JOURNAL OF
OCCUPATIONAL AND ENVIRONMENTAL MEDICINE. Conditions which are associated with
high presenteeism are digestive disease, respiratory disease, injury and mental health disorders.
The authors, WAYNE BURTON, MD, and DANIEL CONTI, PhD, both with BANK ONE in
Chicago, argue that that the optimal context for quantifying the true cost of employee health is to
consider this indicator together with the more traditional absenteeism and disability indicators.
Burton is a senior VP with the bank card firm and a member of the publications board of editorial
advisors and Conti ran the employee assistance program which was studied by a team which
included researchers at the HEALTH MANAGEMENT RESEARCH CENTER at the UNIVERSITY
OF MICHIGAN. The group found an average of 4.3 hours lost per employee per week due to
presenteeism. From a health risk perspective, the researchers found that diabetes was by far the
most debilitating in terms of lost productivity (presenteeism). See The Real Measure of
Productivity, pages 34-36. (Note: The current vogue of this concept as employers seek to focus
on health creation strategies is also evident in a recent announcement from the INSTITUTE FOR
HEALTH AND PRODUCTIVITY MANAGEMENT (IHPM) www.ihpm.org. This organization, which
has as its central mission the building of the business case as to why employee health is a good
investment, has engaged a partnership with benefits management firm WILLIAM M. MERCER to
develop practical tools for measuring health-related at-work presenteeism. A December 1 PR
News release from IHPM notes that the project has moved from an initial reconnaissance phase
to market research and prototype testing. For IHPM: RAVEN RUFFNER, director of business
development, at 540-456-4747. For B&H, call 800-432-4570.
End
INDUSTRY/HEALTH News File #45, January 14, 2000
________________________
News File #46, January 28, 2000
1. INTEGRATIVE CLINIC DEVELOPMENTS

A. BENCHMARKING SURVEY: PROVIDER INTEGRATION A MAJOR CHALLENGE
B. OXFORD CONTRACTS WITH GRIFFIN/YALE CLINIC, OTHER CENTERS
C. EISENBERG GROUP IN $900,000 FROM MEDTRONICS FOR CLINIC
2. MEDTRONIC GRANTS PROMOTE NEED FOR INTEGRATED, PAT.CENTERED CARE
3. CAM RESEARCH DEVELOPMENTS: TCM/U PITT CENTER, GONZALEZ/CANCER
4. SPRING-SUMMER INTEGRATIVE MEDICINE CONFERENCES
6. MISCELLANEOUS: MARIPOSA ADVISORS, ACA CODING BOOK
__________________
____________________
1. INTEGRATIVE CLINIC DEVELOPMENTS

A. BENCHMARKING SURVEY: PROVIDER INTEGRATION A MAJOR CHALLENGE
Follow-up interviews with over a dozen leaders of integrative clinics which have been part of the
INTEGRATORs Integrative Clinic Benchmarking Survey reveal that most operators did not
anticipate the work required to truly create integrative teams. The interviews, the results of which
will be in the March INTEGRATOR, ask operators to recall their business plans then reveal: 1)
major surprise that was not in the plan; 2) any breakthroughs n challenges which were
identified; and 3) goals for the year 2000. Most of those interviewed noted that the nonintegrative behavior of clinic providers was either an unanticipated hurdle or a major area of
attention. One spoke of an incoming belief that there would be more desire to work together to
think harmoniously about patients. What was found, in the words of another, is that its not a
small task, moving these providers out of their silos and doing it in a way the providers say makes
sense -- we are working to make sure that patients are treated, when appropriate, in a multidisciplinary way. INDUSTRY/HEALTH subscribers may receive a copy of these results by e-mail
in mid-February if requested. Email requests to Charlie Priester at isnh@quidnunc.net.
B. OXFORD CONTRACTS WITH GRIFFIN/YALE CLINIC, OTHER CENTERS
OXFORD HEALTH PLANS, an early HMO in offering CAM benefits and discounts, announced on
January 25 its plans to cover consultative services from the new INTEGRATIVE MEDICINE
CENTER associated with GRIFFIN HOSPITAL in Derby, Connecticut. DAVID KATZ, MD, is
director of integrative medicine at the Griffin facility, which features an MD/ND (naturopathic
physician) combined process. JAMES DILLARD, MD, DC, CAc, medical director for
complementary and alternative medicine at Oxford Health Plans, heralds the product this way:
"By discussing health concerns with a medical doctor and a naturopathic physician at the same
time, members can integrate more traditional and complementary care, and feel comfortable with
the health care choices they are making," Coverage requires a referral. KAREN MUEHLBERG,
who manages Oxfords program, notes that this is anticipated to be one of many similar
arrangements with world-class integrative complementary and alternative medicine centers
throughout New York, New Jersey and Connecticut, " said Muehlberg. This may be the first time
a health plan has specifically announced an intention to treat integrative facilities in a special way.
For Oxford, http://www.oxhp.com. Media at Oxford is Maria Gordon Shydlo at 203-459-7674.
C. EISENBERG GROUP IN $900,000 FROM MEDTRONICS FOR CLINIC
Minneapolis-based MEDTRONIC FOUNDATION has awarded a $900,000 grant over three years
to BETH ISRAEL DEACONESS MEDICAL CENTER to support infrastructure developments on a
model integrative facility. DAVID EISENBERG, MD, an assistant professor of medicine at
HARVARD MEDICAL SCHOOL, will direct the project. A January 19 release identified the
leading infrastructure components which Eisenberg views as n ecessary in a conventional
medical establishment as: 1) development of referral mechanisms; 2) credentialing and quality
assurance; 3) communication strategies; 4) creating standards for a natural products formulary;
5) development of educational materials; and 6) creating secured electronic data collection
methods. Eisenberg states the goal as to develop a model that serves as a resource for other
Harvard affiliated teaching hospitals. The integrative team is expected to include primary care
doctors, nurses, pharmacists, together with complementary care clinicians such as
acupuncturists, chiropractors and massage therapists. The model unit is expected to have a
strong research focus as well as an educational thrust for the next general of health caer
providers. In the announcement, Eisenberg asserts that no current clinical care model
successfully integrates these forms of medical care. The founder of Medtronics, EARL BAKKEN,
has been a significant donor to various CAM initiatives, most notably the NORTH HAWAII
HOSPITAL and the FIVE MOUNTAIN MEDICAL COMMUNITY.
2. MEDTRONIC GRANTS PROMOTE NEED FOR INTEGRATED, PAT.CENTERED CARE
The donation by the MEDTRONIC FOUNDATION to the Eisenberg group noted immediately
above was one of three significant grants to support integrated, patient-centered care.
Interestingly, Medtronic is among the world's leading medical technology companies. The
foundations release describes the concept of integrated, patient-centered care, to which its funds
are devoted: a new healthcare delivery model for the chronically ill, aimed at bridging the gap
in care currently experienced by physicians and patients alike. This approach described as
giving these patients the time, resources and support services they need to achieve total health
as they manage their disease throughout their lifetime. The approach is counterpoised with the
technology-intensive acute care in which Medtronics has excelled. WILLIAM GEORGE,
chairman and CEO of Medtronic states: "Medtronic recognizes that healing and restoring
patients to full health requires treatment of the whole patient, as well as state-of-the-art medical
technology." PENNY HUNT is executive director of the Medtronic Foundation and Community
Affairs. The grants are part of the Medtronic Health Center Leadership Grant program. The
SCRIPPS CENTER FOR INTEGRATIVE MEDICINE will use the grant to help the system roll out
a whole person cardiovascular program to other Scripps locations. The center's cardiovascular
program is a three-to-six month program for patients with documented cardiovascular disease or
risk factors and includes a life skills component, nutritional counseling and an emphasis on the
mind/body connection. Mimi Guarneri, M.D., is medical director of the Scripps Center. At the
STANFORD CENTER FOR RESEARCH IN DISEASE PREVENTION/THE STANFORD HEART
NETWORK, grants funds will be used to expand an educational risk reduction program which
focuses on life skills and health improvement support to patients through their own physicians'
offices. The grant will help Stanford evaluate its current programs, develop training workshops,
and establish an Internet site, complete with training resources and links with clinical sites
internationally to facilitate the sharing of information on their respective risk reduction programs.
The release notes that in addition to the grants, Medtronic will also partner with these institutions
to identify benchmarks of success, disseminate information and educate others about these
effective healthcare models. Contact is Chris Campbell-Loth, Public Relations of Medtronic, at
612-514-8547. www.medtronic.com
3. CAM RESEARCH: TCM/U PITT CENTER, GONZALEZ/CANCER

A. UNIVERSITY OF PITTSBURG GROUP TCM RESEARCH
A consortium of interests involving the US and Chinese governments, and the pharmaceutical
industry have are establishing an INTERNATIONAL TCM (traditional Chinese medicine)
CENTER at the UNIVERSITY OF PITTSBURGs. The JEWISH HEALTHCARE FOUNDATION
approved $100,000 for initial funding for researchers to help them create the leverage to build a
climate for research and development and to turn Pittsburgh into a global research center,"
according to KAREN FEINSTEIN, the foundation's executive director. The center now has a $10
million investment commitment. Heading up the development of the International TCM Center is
TIMOTHY PARKS , president and chief executive officer group the PITTSBURGH REGIONAL
ALLIANCE. The Alliance views the center as a major, ongonig economic stimulus. called the new
enterprise a "singular event for the economic development" of the region. A search for program
director is underway. Seven Chinese herbs believed to be effective in the treatment of solid
tumors and gastrointestinal disorders will be studied first, according to RONALD HERBERMAN,
MD, director of UPMCs CANCER INSTITUTE. Ground work for the projedct reportedly included
a 1999 invest by UPMC of $16 million in CADUCEUS CAPITAL HEALTH VENTURES (CCHV).
CCHV is a for-profit, $60 million group from Boston that funds biomedical start-up companies.
Caduceus, in turn, founded PHYTOMEDICA, INC. which is seeking to develop FDA-approved
drugs and herbal remedies. The magnitude of the potential filed was underlined by YONGZHENG
HUI, vice minister of the CHINESES MINISTRY OF SCIENCE AND TECHNOLOGYo. In a press
conference he noted that 12,000 plant and herb speciesthat have been used in China could be
useful drugs. UPMC has other CAM involvements, including a project looking at gingko biloboa
for memory headed by STEVEN DEKOSKY. Based on an article by Ellen Marzo in the Pittsburg
Post-Gazette, January 19, 2000.
B. COLUMBIA UNIVERSITY/NCI GRANT TO STUDY GONZALEZ CANCER TREATMENT
The metabolic therapies of CAM-cancer pioneer NICHOLAS GONZALEZ, MD, will be researched
with an NIH NCCAM $1.4 million grant. The five year study will consider treatment in at least 90
pancreatic cancer patients on Gonzalez regime which includes huge doses of vitamins and
enzymes. CONGRESSMAN DAN BURTON (R-Ind.) was instrumental in bringing Gonzalez
together with NCI director RICHARD KLAUSNER 18 months ago. The work will be done in
association with the cancer center at COLUMBIA UINIVERSITY. Typical charges for Gonzalez
services are $2,000 for an initial consultation and $70 to $100 for follow-ups. Enzymes, plus
vitamins cost of about $6,000 to $7,500 per year. Abstracted from: Maverick Treatments Find
U.S. Funding Cancer Therapy to Be Tested Despite Mainstream Medical Doubts by Susan Okie,
Washington Post, 01/18/00. http://washingtonpost.com/wp-srv/WPlate/2000-01/18/073l-011800idx.html.
4. WASHINGTON CAM MANDATE UPHELD BY STATE SUPREME COURT
On January 13, the WASHINGTON STATE SUPREME COURT upheld a legislative mandate
passed in 1995 which required all of the states health plans to include every category of
provider. The states health plans responded with a two pronged legal fight, one in federal court,
turned back by the US Supreme court last year, and the administrative process case in the state.
While most of the states plans created CAM products, INSURANCE COMMISSIONER
DEBORAH SENN had moved in early 1996 against plan strategies which she viewed were too
limited to respect the statute. Senn, an activist, pro-CAM consumer -- and currently a candidate
for US SENATE -- was left without enforcement abilities. Key areas of non-compliance, in
Senns view, have been the decisions by REGENCE BLUE SHIELD to not offer a CAM product in
its PPO plans, of GROUP HEALTH COOPERATIVE OF PUGET SOUND to significnatly limit
conditions for which CAM services would be covered, and that of PREMERA BLUE CROSS to
place a combined $500 lid on covered CAM services. Regence is known to have sent out
provider contracts for its PPO; steps of the other plans, including potential legislative opposition,
are uncertain. While many national media and CAM industry publications have described the
mandate as liberally requiring coverage of alternative practitioners, in fact the coveraqge
strategies have been far more limiterd. Thhe key provider catgegories are chiropractors,
massage practitioners, acupuncturist. The mandate, and individual plan strategies, were
explored at length in the June-July 1997 issues.
5. SPRING SUMMER CONFERENCES
The following is a list of upcoming conferences with strong integrative components or hosted by
leading CAM professional organizations. Also in the January-February INTEGRATOR.
February 9-11
Five Mountain Medical Community, US AHCPR, various Hawaiian agencies. Bridging East and
West; Expanding Boundaries in Health Care. 808-956-5017 or starn@hawaii.edu
February 18-20
University of Arizona and University of Minnesota Center for Spirituality and Healing, others. First
Annual Pediatric Integrative Medicine Conference: Incorporating Evidence-based
Complementary/Alternative Medicine into Clinical Practice. Tucson, Arizona. 520-626-6858 or
www.crc.arizona.edu
March 12-15
Harvard Medical School. Complementary and Alternative Medicine: Implications for Clinical
Practice and State-of-the-Science Symposia. Boston, MA. 617-432-1525 or hmscome@hms.harvard.edu
April 16-19
National Managed Health Care Congress: CAM Track (half-day workshop plus seven sessions).
Atlanta, GA. 888-882-2500
April 25-30
Alternative Therapies in Health and Medicine, co-sponsored with Five Mountain Medical
Community. Creating Integrative Healthcare. Kona, Hawaii. 800-899-1712
April 28-30
th
American Academy of Medical Acupuncture. 12 Annual Symposium: Unveiling the Mysteries of
Acupuncture. MD/DO only. Pre-conference April 27. Orlando, FL. 323-937-5514
May 4-7
American College for Advancement in Medicine. Spring Conference 2000: Medical Challenges
for the Family. Dallas, Texas 800-532-3688 or www.acam.org
May 5-8
National Alliance of Acupuncture and Oriental Medicine
Annual meeting, San Francisco. 253-851-6896, or www.acuall.org
May 18-20
TO BE ANNOUNCED SOON to INDUSTRY/HEALTH subscribers: Invitational Integrative
Medicine Leadership Summit. Miraval Resort, Tuscson, Arizona.
June 9-11
Center for Mind-Body Medicine, Georgetown University School of Medicine, National Cancer
Institute. Comprehensive Cancer Care 2000: Integrating Complementary and Alternative
Therapies. Pre-conference June 7-8. Washington, DC. 202-966-7338
July 17-20
NutraCon 2000. Annual nutraceuticals meeting. Las Vegas. 877-996-8872, or
www.nutracon.net
August
Program in Integrative Medicine, University of Arizona School of Medicine. Associate Fellowship
commences. See Business Developments, this issue. www.integrativemedicine.arizona.edu
October 28-31
Stanford University and Harvard University Medical Schools. Second Annual Conference on
Practical Applications for CAM in the payment and delivery system. Kauai, HI.
6. MISCELLANEOUS
A. MARIPOSA BOTANICALS BOASTS TOP-FLIGHT ADVISORS
A recent release to THE INTEGRATOR from MARIPOSA BOTANICALS announcing the firms
InVite products suggests that the firm is testing whether or not big names can make a huge
difference in the competitive nutraceuticals industry. The firm is co-founded by SAMUEL
BENJAMIN, MD, director of the CAM program at SUNY STONY BROOK. Benjamin and
ANDREW WEIL, MD, are InVite formulators with input from Mariposas advisors which includes
BRIAN BERMAN, MD, KENNETH PELLETIER, PHD, DAVID RILEY, MD, and DORIS MILTON,
RN (nursing editor with Alternative Therapies in Health and Medicine. The firm advertises an
unusually stringent testing process. Weil, Benjamin and Pelletier are all INTEGRATOR advisors.
Contacts: maripobot@aol.com, or 888- 521- 5551.
B. ACA RELEASES CODING BOOK AND CODING SOLUTIONS PHONE CONFERENCE
Announced as part of an effort to enhance the accuracy and effectiveness of chiropractic
coding, the ACA released in January an Official ACA Chiropractic Solutions 2000 booklet. The
current edition makes an attempt to be more user friendly to the diverse administrators and
professionals who may be working with chiropractic. Included also are ACA policy statements on
sometiems controversial areas such as on 97140 and the use of chirop0ractic manipulatived
therapy and Evaluation and Management (E&M) codes on the same visit. The booklet also offers
template letters designed to help doctors and their staff clarify these billing scenarios with
insurance carriers. To supplement the book, the ACA will offer a Coding Solutions phone
conference on February 10, 2000, featuring coding expert DR. JERILYN KAIBEL, the
chiropractic coding expert on the AMA's Health Care Professionals Advisory Committee (HCPAC)
of the Relative Value Update Committee (RUC) and the ACA representative to Health and
Human Services' Practicing Physicians Advisory Council. Audiocassettes of the 90-minute
session will also be available. Contact the ACAs Office of Professional Development at +1-800986-4636.
End
INDUSTRY HEALTH News File #46, January 28, 2000
_______________________________
News File #47, February 11, 2000
REMINDER: SUMMIT INVITATION REMINDER: RESPONSES NEEDED ASAP
1.
2.
3.
4.
5.
6.
7.
8.
ACA TAKES POSITION AGAINST CAM AFFINITY PROGRAMS, ALMOST

AWH TO SHUT DOWN SOME OF ITS CLINICS
AMERICAN WHOLEHEALTH NETWORKS IN TWO SIGNIFICANT CONTRACTS
A. AWHN ANNOUNCES DEAL WITH PARTNERS NATIONAL HEALTH PLANS
B. AWHN EXPECTED TO PICK UP NATIONAL ANTHEM CONTRACT
HORIZON NJ BLUES/ALIGNIS ON AFFINITY PRODUCT
PEDIATRIC PRACTICE PATTERNS FOR HOMEOS AND NDs: RISKS?:
CANCER PATIENTS USING CAM: FEW TALKING TO THEIR MDS
UNIVERSITY HEALTHCARE CONSORTIUM LOOKS AT CAM
RESOURCES: CHIROPRACTIC, CREATING AN HERBAL APOTHECARY

__________________
***** SUMMIT INVITATION REMINDER: RESPONSES NEEDED ASAP *****
We sent you a special e-invitation to an INTEGRATIVE MEDICINE INDUSTRY LEADERSHIP
SUMMIT last week. As a CAM industry leader and an INDUSTRY/HEALTH subscriber, you were
the first to be invited. Please let us know your decision so we can make our decisions about to
whom to also extend an invitation to this invitational meeting. We hope you can make it -- and
guarantee that youll find valuable for business, body and soul. Please let us know if you need
another e-invitation. Im happy to answer any questions you may have about the event.
This NewsFile #47 gives ample evidence of WHY WE NEED THE SUMMIT. The ACA is formally
amounting a challenge to the affinity product, the leading business model in managed care, even
as three reports show expansion of affinity products into new HMOs. Meantime, the most visible
of venture-backed CAM businesses, American WholeHealth, is reportedly shutting down some
clinics. Amidst these struggles, two studies show cancer patients show use of CAM to again to
be both high and poorly integrated into conventional services. Its time we put our heads
together! -- John Weeks, Publisher-Editor
____________________
1.
ACA TAKES POSITION AGAINST CAM AFFINITY PROGRAMS, ALMOST
Provider-led concerns about the spread of non-covered, affinity products has led to a formal
position, in late January, by the board of governors of the AMERICAN CHIROPRACTIC
ASSOCIATION. The position all but opposes the products -- without saying it in so many words.
The board put the action in context by: reaffirming the ACAs 1975 Policy Statement on
Insurance Contract Exclusions and Insurance Equality (ACA House of Delegates, June 1975)
which promotes inclusion of chiropractic in all public and private benefit plans. Since that time,
chiropractors have made significant headway in gaining coverage. The statement then notes the
vast expansion of CAM program, particularly the non-covered discount variety which defined
HMO activity in 1999. The governors positioned these non-covered discount program as
representative type of a contractual exclusions and other efforts aimed at omitting chiropractic
from insurance and benefit plan coverage. As such, the discounts are viewed not as a step
toward greater recognition, as is asserted by many payers, but as moving chiropractic away from
mainstream insurance. The governors conclude with this comment: It is the view of the ACA,
that affinity programs that claim to offer additional covered benefits, when in fact the insured and
the doctor assume all financial risk, mislead the public. www.ACA.org
2.
AWH TO SHUT DOWN SOME OF ITS CLINICS
Shortly before e-mailing this NewsFile THE INTEGRATOR was able to confirm industry sources
which state that AMERICAN WHOLE HEALTH plans to shut down between three and six of its 11
clinics. Rumors have circulated for years that many of the clinics were deeply troubled financially
and the cause of a significant run rate on capital of integrative medicines most visible venturebased business. Other clinics are reportedly performing well. The move is expected to be part of
a broader reorganization of the three-legged CAM venture -- clinics, network, Internet
(WholeHealthMD.com). The internet move is increasingly viewed as the engine of the
organization. Some sources anticipate an IPO before the year is out. THE INTEGRATOR will
follow-up with more information in the next Newsfile.
3.
AMERICAN WHOLEHEALTH NETWORKS IN TWO SIGNIFICANT CONTRACTS
A. AWHN ANNOUNCES DEAL WITH PARTNERS NATIONAL HEALTH PLANS

Calling itself the nations largest health care network of CAM providers, Hartland, Wisconsinbased AMERICAN WHOLEHEALTH NETWORKS announced on February 2 a new CAM benefit
the firm will managed for the 400,000 members of Winston-Salem-based PARTNERS NATIONAL
HEALTH PLANS of North Carolina. All members will have access to discounts through AWHs
Natural Choice program. Bolstering the benefit is management of a covered chiropractic
benefit. Announcing for Partners was MARK SELNA, MD, medical director: "We think our
members deserve choice and quality. Many are already using these therapies. We want to give
our members the tools and knowledge they need to take responsibility for their own health and be
an active partner in their care." Selna stresses that the goal is not to replace the family doctor.
The release stresses member access to AWHs website, WholeHealthMD.com.
B. AWHN EXPECTED TO PICK UP NATIONAL ANTHEM CONTRACT
Industry sources state that AWN is about to pick up a contract with ANTHEM HEALTH PLANS, a
network of Blues plan in over a half-dozen states. Nearly two years ago Anthem was close to
selecting Portland, Oregon-based ALTERNARE HEALTHCARE based, in part at least, on the
high profile Alternare gained in 1996 as contractor to PREMERA BLUE CROSS in Washington
state, and as the leading network provider under the mandate. AWHN was the first to cut into
Alternares Washington business, taking the GROUP HEALTH COOPERATIVE OF PUGET
SOUND contract in 1997. Alternares subsequent low key national strategy and limited service
offerings appears to have soured Anthem on the deal. Fort AWHN, the Anthem deal, like the
Partners contract noted above, is expected to include managing covered chiropractic services.
This should allow AWHN to participate in a revenue stream beyond the meager $0.01-$0.03
PMPM in stand alone affinity products. The contract is expected to be announced within 60
days. The Anthem and the AWHN contract with United Healthcare, also not yet formally
announced, will vastly expand the networks current base in AWHNs geographic base of South
Carolina, Virginia, Arizona, Colorado, Georgia, Iowa, Illinois, Michigan, Minnesota, Ohio,
Washington and Wisconsin.
4.
HORIZON NJ BLUES/ALIGNIS JOIN FOR AFFINITY PRODUCT
Horizon Alternative Therapies is the name HORIZON BLUE CROSS BLUE SHIELD OF NEW
JERSEY has given to a new discount product announced January 31. President an CEO of
BCBSNJ WILLIAM J. MARINO explained the move with reference the growing role of CAM in US
healthcare: "Alternative medicine is one of the fastest growing segments of the health industry
today and many of our members have already embraced these therapies. We encourage our
members to take advantage of these services. The insurer will offer the product through Atlantabased CAM network ALIGNIS. One unusual twist: Members will also get 10% off products
distributed by network providers, as well as 15-50% discount through VITAMINS.COM, Alignis

th
internet partner. This affinity product is the 2.2 million member plans 9 distinct discount
product. Contact is Fred Hillmann, 973-466-8755, or Robert Nihen, 973-466-8765, both of
Horizon Blue Cross Blue Shield of New Jersey. www.horizon-bcbsnj.com >>
5.
PEDIATRIC PRACTICE PATTERNS FOR HOMEOS AND NDs: RISKS?:
A recent article, Homeopathy and Naturopathy: Practice Characteristics and Pediatric Care
reports useful data on practice patterns for homeopathic practitioners naturopathic doctors in the
Massachusetts area. However, the study also appears to suffer from a bias toward focusing on
potential negative outcomes of care from these providers. The study was headed by KATHI
KEMPER, MD and ANNE LEE. First, the useful data. The surveyed practitioners typically saw
25-40 patients a week. 57% of the homeopaths were medical doctors. First office calls ran 60-90
minutes. The cost was typically $140-$150. Follow-up visits were scheduled every 4 to 6 weeks
and typically lasted more than 30 minutes. Insurance covered less than one third of the patient
visits. (Note: It is not clear whether insurers who did cover the services specifically knew that the
patients were receiving homeopathic care, for instance, when billed by medical doctors. In
addition, naturopathic physicians are not licensed in Massachusetts, and therefore are rarely
included in any insurance coverage.) About half of the providers were found to be offering sliding
scale payments. Now the potential for negative outcomes. The researchers found that most
practitioners reported that they did not actively recommend immunizations and fewer than half of
the non-MD practitioners reported that they would refer a 2-week-old neonate with a fever to a
medical doctor or emergency medical facility. Note that the researchers were not reporting
actual harm. Other evidence of apparent bias of the researchers included the following logic:
colonics have been found in some instances to cause harm, naturopathic doctors sometimes do
colonics, therefore naturopathic practice could be dangerous. The researchers go on to conclude
that the failure on the part of these providers to recommend immunizations or recognize
potentially serious illnesses is cause for concern. For full text: http://archpedi.amaassn.org/issues/v154n1/full/poa9145.html
6.
CANCER PATIENTS USING CAM: FEW TALKING TO THEIR MDS
A. A study in the February 1, 2000 issue of journal CANCER (2000;88:615-619) reports that
37% of patients undergoing radiation were using CAM. As is common in such studies, a majority
of physicians are not aware their patients are using complementary therapies. In an interesting
twist, the treating oncologists were surveyed and they believed that just 4% of their patients used
CAM., called a gross underestimation by GARY KAO, an assistant professor in the department
of radiation oncology at UNIVERSITY OF PENNSYVANNIA HOSPITAL in Philadelphia. Kao
headed up the study. Also in line with other findings on CAM consumers is that users among the
50 surveyed patients were typically better educated than the average. Top modalities among
CAM users was herbal remedies (60%). "Old-time remedies" were favored by 47%, high dose of
vitamins (41%), 18% used both chiropractic/massage therapy and relaxation techniques, and
special diets (12%). Source: Medical Tribune, February 1, 2000.
B. Data from an ongoing, five-year study from the UNIVERSITY OF CALIFORNIA SAN
FRANCISCO shows that women cancer patients are also keeping quiet on alternative medical
treatments. While nearly 70% of women with breast cancer seek some form of alternative, only a
third tell their physicians. The disincentives to speaking with physicians were identified as
anticipated disinterest, anticipated negative response and a belief that the physician didnt know.
On the other hand, CAM providers were routinely told of biomedical treatments. Information from
an American Hospital Association report. Source: American Hospital Association
7.
UNIVERSITY HEALTHCARE CONSORTIUM LOOKS AT CAM
A committee of the UNIVERSITY HEALTHCARE CONSORTIUM, a group which represents the

university hospitals affiliated with the medical schools in the United States, has begun exploring
CAM activity affiliated with its member institutions. According to SAM BENJAMIN, MD, a
consultant to the process and an INTEGATOR advisor, the group is benchmarking best
practices in these facilities. Initial research will look at the programs -- all of which have clinical
components -- at NY PRESBYTERIAN, UNIVRESITY OF ARIZONA, STANFORD, SUNY
STONY BROOK and UNIVERSITY OF MARYLAND. Topics under consideration are quality
assurance, data collection, finances and etc. A report, following site visits, is expected by this
spring.
8.
RESOURCES: CHIROPRACTIC, CREATING AN HERBAL APOTHECARY
A. EXCEPTIONAL TEXT ON CHIROPRACTIC A forward by WAYNE JONAS, MD, former

director of the NIH OFFICE OF ALTERNATIVE MEDICINE recounts the medical mainstreams
recent journey toward acceptance of chiropractic as a way of celebrating THE CHIROPRACTIC
PROFESSION, a very useful recourse by DAVID CHAPMAN-SMITH. Readers of THE
INTEGRATOR will know that we have yet a long way to go. One example is the resistance to
chiropractors in health system based integrative clinics, despite the research base, the consumer
interest which purportedly is driving the integration exploration, and the value chiropractic
revenues can have for clinic bottom lines. Deep prejudice is hard to change, write Jonas. This
book is an excellent tool for creating such change, regarding both chiropractic and the broader
CAM arena. The author directly engages the role of prejudice and bias in more than one place,
offering guidance on how to read differing sources. He warns the reader to be somewhat wary of
the fact that the book was funded through a grant from NCMIC GROUP, the firm which provides
malpractice insurance for over 50% of the nations chiropractors, and that he has been
associated with the profession for years. (Chapmans newsletter can be viewed at
www.chiropracticreport.com .) This is a good text for opening thinking. For copies: 877-291-7312.
B. RESOURCE ON HERBAL APOTHECARY PUBLISHED
Seattle-area consultant LEAH
KLIGERS book, Creating an Herbal Apothecary: An Implementation Guide for Hospitals,
Physicians, Pharmacists, and Other Health Care Practitioners is to be published this month.
Some of Kligers work was utilized in the July 1999 INTEGRATORs look at strategies for
managing natural products. Information is posted at the publishers website:
www.strategichealthcare.com. For Kliger, call (425)334-5926.
End
INDUSTRY/HEALTH News File #47, February 11, 2000
_________________________
1.
2.
3.
4.
5.
6.
1999 MERCER DATA: JUMP IN CAM OFFERINGS BY EMPLOYERS

SUGGESTIVE CONSUMER DATA ON CAM VS CONVENTIONAL CARE
INTERNET: DRKOOP/AWHMD.COM IN MAJOR DEAL, WELLCALL STRENGHTENS SITE
A. WHOLEHEALTHMD FORMS TWO YEAR CAM ALLIANCE WITH DRKOOP.COM
B. WELLCALL ANNOUNCES EXPANDED WEB COMPONENT
NUTRACEUTICALS: CAUTIONARY FINDINGS, A REPONSE, AND A MARKET GRAB
NETWORKS AND HMOS
PERSONNEL MOVES

__________________
SUMMARY
Issue #48 provides evidence that employers do appear to be awakening to CAM, and may
eventually drive HMO activity toward covered services. A study funded by TRIAD provides useful
consumers perspectives on the benefits of CAM which should help CAM programs make their
case with such employers. However, actual benefit news continues to feature non-covered
discounts. Meantime, many are beginning to wonder if the damage of discounts will move the
center of the CAM integration endeavor game out of the payment system and onto the web. New
web player, WholeHealthMD.com, has positioned itself at the center of one of those emerging,
vertical universes, as the lead partner with drkoop.com.
SUMMIT -- MAY 18-20 PLEASE LET US KNOW YOUR PLANS The space for the Integrative
Medicine Industry Leadership Summit is filling nicely. And we want to make sure any
INDUSTRY/HEALTH subscribers who wish to come have a space. Please contact us ASAP if
you have not yet or if you need information re-sent. Pihcp@aol.com
____________________
1.
1999 MERCER DATA: JUMP IN CAM OFFERINGS BY EMPLOYERS
Calling the 12 month jumps in offerings of chiropractic and acupuncture significant, JANICE
STANGER, CAM leader with WILLIAM MERCER AND ASSOCIATES released to THE
INTEGRATOR CAM outcomes of the 1999 National Survey of Employer Sponsored Health
Plans. The study asks employers their offering based on benefit type. Offerings of all kinds
tended to be higher in employers with 500 or more employees. Stanger provided the folowing
comparisons for large employers: for Chiropractic (1998/1999) -- PPO (65%/83%), POS
(59%/74%), HMO (45%/60%) and Indemnity (65%/80%); for acupuncture/acupressure -- PPO
(19% 1998/23% 1999), POS (14%/20%), HMO (9%/16%) and Indemnity (17%/21%); for
massage -- PPO (9%/12%), POS (9%/11%), HMO (6%/9%) and Indemnity (8%/7%). Stanger
told THE INTEGRATOR that these data do not, unfortunately, distinguish between non-covered
offerings and actual benefits. CAM questions were first asked in the 1998 survey. Surprisingly
high findings in some areas led Stanger to conjecturre that the data were skewed upward.
Stanger feels more comfortable with the 1999 data. However, some skewing appears to remain;
notably, 19% of small employers said they cover homeopathy. PHONE
2.
SUGGESTIVE CONSUMER DATA ON CAM VS CONVENTIONAL CARE
A consumer survey by SORELLI B, a national research firm, reports that CAM users perceive that
they are more able to return to work more rapidly following CAM use. Just 37% of people who
saw a conventional doctor reported returning to work/normal activity the next day. For those
seeing massage practitioners, the number was 65%; for chiropractors, 47%. The study includes
a number of additional questions and responses which provide impressionistic insight into
economic issues surrounding CAM.
-- SYMPTOM REDUCTION 75% said their symptoms were reduced by chiropractic or
massage therapy, as compared to just 54% for those seeing medical doctors.
-- SYMPTOM WORSENING/NO EFFECT 14% of those seeing a medical doctor thought

their symptoms got worse or stayed the same. Comparative numbers were 2%, 3% and 5% for
chiropractors, acupuncturists and massage therapists, respectively.
-- PERCEPTION OF POSITIVE OUTCOME General perception of positive outcomes also
placed chiropractic (93%) and massage (87%) above MDs/DOs (82%). Acupuncture lagged at
74%.
-- INCLUSION IN CORE BENEFITS 46% said chiropractic, 44% said massage and 33% said
acupuncture should be in core benefits packages.
-- ADVERSE EFFECTS Over 50% were concerned about such effects from prescription
drugs. Notably, one-third of chiropractic users said the visit had diminished the need for such
drugs.
The survey, funded by chiropractic management firm TRIAD HEALTHCARE, was conducted in
the fall of 1999 and involved interviews with 407 individuals. For author DIANA BARTLETT: 630858-1835.
3.
INTERNET: DRKOOP/AWHMD.COM IN MAJOR DEAL, WELLCALL STRENGHTENS SITE
A.
WHOLEHEALTHMD FORMS TWO YEAR CAM ALLIANCE WITH DRKOOP.COM
In the wake of news that AMERICAN WHOLE HEALTH will be closing or selling many of its
clinics, the firm announced a huge strategic alliance to give it an immediate lift in the dot-com
world which most observers agree is the central business direction of the venture-backed firm .
WHOLEHEALTHMD.COM will become the leading services provider for a new ALTERNATIVE
MEDICINE CENTER which DRKOOP.COM is set to open later this quarter.
WholeHealthMD.com, which opened its portal last month, describes itself as a leading Internet
source for physician-directed information and therapies based on integrative medicine.
drkoop.com plans to co-create additional condition centers with WholeHealthMD. Among the
centers will be chronic fatigue syndrome, fibromyalgia, irritable bowel syndrome, menopause and
sinusitis. DONALD HACKETT, president and CEO of drkoop.com, asserts that the method of
presenting the information from WholeHealthMD will be revolutionary in that the user will always
have the benefit of reviewing both the latest evidence-based and opinion-based treatments on
drkoop.com, and we will always make it clear which is which. www.drkoop.com
www.wholehealthmd.com
B.
WELLCALL ANNOUNCES EXPANDED WEB COMPONENT
WELLCALL, the San Francisco-based wellness and CAM services firm, continues to promote its
unique ability to balance high-tech and high touch by announcing a program through which its
web services are supported by a trained health educator who provides real time assistance.
The WellCall tools include a typical structure for purchasing discounted preventive health services
(www.wellcall.com). Added to the mix is WellChat, which links the user with an internet site,
WellLocate, which finds the CAM provider type requested, and WellForum, a hosted series of
internet events. WellCall, which has developed a client base from the high-tech Silicon Valley, is
now announcing itself as a national from. The promise, according to ARLENE SINGER, WellCall
CEO and co-founder, is to give employees a personalized preventive health and wellness plan
simply by making one phone call or, now, by logging on to wellcall.com." 415-459-1449.
4.
NUTRACEUTICALS: CAUTIONARY FINDINGS, A REPONSE, AND A MARKET GRAB
A. FDA ALERT ON ST. JOHNS WORT The FDA is cautioning doctors on serious adverse
drug interaction with the popular botanical, St. Johns Wort. The advisory was based on a
publication in the THE LANCET which suggested that St. John's Wort could make a wide range
of drugs -- from oral contraceptives to AIDS medication to cholesterol-lowering drugs -- less
effective. The belief is that St. Johns Wort makes up to 50 types move through the body more
rapidly, therefore inhibiting their effectiveness. Some physicians, and the head of the
AMERICAN BOTANICAL COUNCIL, MARK BLUMENTHAL, are cautioning patients to either stop
using the herb if they are on prescription drugs or to make sure to notify their physicians. The
FDAs advisory is at www.fda.gov/cder/drug/advisory/stjwort.htm
B. CALIFORNIA AGENCY WARNS AGAINST PRESCRIPTION DRUGS IN HERBS The
CALIFORNIA DEPARTMENT OF HEALTH SERVICES has issued a warning that some herbs
which are presented as only including Chinese herbal ingredients also contain the prescription
drugs glyburide and phenformin, which can be used to treat diabetes. The herbal formulas are
Diabetes Hypoglucose Capsules, Pearl Hypoglycemic Capsules, Tongyi Tang Diabetes Angel
Pearl Hypoglycemic Capsules, Tongyi Tang Angel Hypoglycemic Capsules and Zhen Qi
Capsules. The US FDA and the California agency are working to stem importation and to end the
sale of the products in the country. The investigation began with reports of low blood sugar in
patients using the formulas. For information: www.fda.gov/medwatch/safety/2000/cadhs1.htm .
C. HERBS ASSOCIATED WITH RENAL DISEASE A February 11 Reuters article described
reports from independent groups, published in the February issue of the AMERICAN JOURNAL
OF KIDNET DISEASES, which suggest that the use of some herbal remedies may be associated
with development of renal disease. Evaluation of the quality of the evidence is beyond the purvey
of THE INTEGRATOR. [Bottom line is, next time you hear a CAM advocate say CAM is without
adverse effects, slap them. JW] Am J Kidney Dis 2000;35:310-318,330-331.
D. In the wake of the scare about adverse effects of St. Johns Wort, Portland, Oregon-based
INTEGATIVE MEDICAL ARTS (IMA) announced the establishment of www.InteractionReport.org
as an Internet-based resource for reporting interactions and adverse reactions involving herbs
and nutritional supplements. The efforts is portrayed in the release as a consortium. IMA
founder MITCHELL STARGROVE, LAc, ND, told THE INTEGRATOR that members of the
consortium would be publicly announced in March. The site will feature an interactions report
form, a resource guide, a form for submitting questions on interactions and related concerns, and
archives of responses to previous questions. The response on St. Johns Wort concludes:
Thus, the overall safety profile of St. Johns Wort (SJW) remains excellent, and clinical reports of
interactions will only enhance the safety of the SJW preparations when used appropriately. For
information, contact Aaron Young, CEO or Stargrove, at Interactions@IBISmedical.com,
503.526.1972 - www.IBISmedical.com
E. TYLENOL MAKER GOES AFTER GLUCOSAMINE MARKET The makers of Tylenol,
MCNEIL CONSUMER HEALTHCARE, announced on February 15 that is would introduce a new
glucosamine product, Aflexa, in the state of Florida. The firm explained that it is seeing more
and more evidence that joint health can benefit from the use of glucosamine. The release
references 13 published clinical studies involving over 2,000 people which suggest that
glucosamine is a building block of healthy cartilage and may play a role in the production of
synovial fluid necessary for joint lubrication. It is interesting to note that the product
announcement also included reference to the first broad population study, throuhg the NIH
NCCAM, which has just gotten underway. In language which reflects health system thinking
about integrative clinics, McNeils exrecutive director of the Tylenol Frnachise states: "Aflexa is a
natural product fit for us. In recent years, use of dietary supplements has become a significant
part of self-care. Now consumers can select a glucosamine supplement from a company they
know and trust." The statement made it clear that the product would not contain acetomenephin
but would be found on store shelves in the analgesics section next to Tylenol. The Florida
initiation is priror to a national rollout.
5.
NETWORKS AND HMOS
A. BLUE CROSS AND BLUE SHIELD OF SOUTH CAROLINA (BCBSSC) announced on

February 17 that the firm is expanding its affinity program. The product is offered through various
affiliates of AMERICAN SPECIALTY HEALTH PLANS/NETWORKS (ASHP/N). Websites of Blue
Cross and PAI (www.SouthCarolinaBlues.com ), Companion HealthCare
(www.CompanionHealthCare.com) and HMO Blue (www.SCHMOBlue.com ) are linked through the
Natural Blue page on the Web sites into ASHPs www.Healthyroads.com through which ASHP
offers various CAM products and services. Unusual features include a promise from ASHP that
the firm conducts third-party testing of the (natural) products offered in order to maintain quality
control. And in an effort to drive people to the site, ASHN is sending a free gift to the first 5,000
members who sign up for ASHNs free electronic newsletter. ASHNs gift packet includes a
choice of vitamin supplements, a fitness video, a healthcare book or a body care product.
B. CHIROSOURCE NETS DEAL WITH PHYSICIANS HEALTH OF ARIZONA Clayton,
California-based CHIROSOURCE, which claims the largest chiropractic network in Arizona, has
inked a deal with PHYSICIANS HEALTH OF ARIZONA (PHA) to provide both general health
benefits services and workers compensation. PHAs clients include MARRIOT employees and
MARICOPA COUNTY government employees for industrial injury. 925-672-5333.z
C. ALIGNIS NAMED TAPPED FOR UR BY GROUP HEALTH INCORPORATED Atlantabased ALIGNIS has been selected by GROUP HEALTH INFO0RMATED to perform utilization
review on chiropractic services. Alignis views the move as solidifying the networks presence in
the Northeast. GHI is the largest not-for-profit health services corporation operating statewide in
New York, serving more that 3 million people various health plans and TPA services. For GHA:
(212) 615-0098; for Alignis: (404) 848-0944 extension 228.
D. LANDMARK CEO MARLA ORTH is not presently in charge of day to day operations of
Sacramento, California-based CAM network LANDMARK HEALTHCARE. Sources differ on
whether the extent to which the shift is due to medical reasons or in response to significant
Landmark losses in the past year, at well over seven figures.
E. DISCOUNT PROGRAM LINKED AN ADD-ON TO A MASTER CARD In a new sign of the
use of CAM as a marketing bell-and-whistle, HEALTHCOVE.COM has linked with a bank to offer
a free year of discounted access to CAM and various conventional medical services as a benefit
to users. Dr. Stephen Uslan CEO, 800/796-5558, www.HealthCove.com
6.
PERSONNEL MOVES
A. ASTIN TAKES POSITION WITH BERMANS MARYLAND GROUP

JOHN ASTIN, PHD,
whose study of CAM users (published in JAMA, May 1998) is one of the most frequently sited
CAM studies, has left his position at STANFORD UNIVERSITY to become Assistant Professor in
the Department of Family Medicine at the UNIVERSITY OF MARYLAND SCHOOL OF
MEDICINE in Baltimore. Astin will be working with BRIAN BERMAN, MD, and his group in the
COMPLEMENTARY MEDICINE PROGRAM. Hell continue with a range of research projects,
including 410.448.6890
B. LEAVER IN NEW WHOLEHEALTHMD.COM POSITION
A former executive with two of
the nations leading CAM networks, ASHP and AWHN, ERIC LEAVER has a new position as
director of institutional sales with the dot-com firm with which AWHN is affiliated,
WHOLEHEALTHMD.COM. Leaver will continue to be based in Southern California.
C. WOODS IN DIRECTOR ROLE WITH SENCHI.COM
The pro-CAM CEO of Mountlake
Terrace-based PREMERA BLUE CROSS, BETTY WOODS, has taken a position as a director of
e-commerce CAM start-up SENCHI.COM. Woods was formerly a board member of Bastyr.
Following eight years in her position -- 60% more than the industry average -- Woods will.
Retire her CEO position later this year. According to materials from the firm, Senchi is a
specifically designed Internet company focused on providing services, tools and peer networking
opportunities to solo practice alternative health care providers. For Senchi: 425-564-0843.
D. ROSS BECOMES MEDICAL DIRECTOR WITH HEALTHONLINE MICHAEL ROSS, MD,
who founded an Atlanta affiliate of Boston-based COMMONWELL in 1997 before founding the
failed venture start-up EVERWELL/HOLISTICOS has taken a position as medical director with
HEALTHONLINE.
E. QUINN IN CONTENT ROLE WITH ALTERNATIVEDR.COM
SHEILA QUINN, who
recently announced that she would bE leaving full time work with the naturopathic medical
profession has taken a leadership position involving direction of content development with
ALTERNATIVEDR.COM. Quinn, regarded as a founder of BASTYR UNIVERSITY, which
awarded her an honorary naturopathic doctor degree, was most recently executive director of the
AMERICAN ASSOCIATION OF NATUROPATHIC PHYSICIANS. Quinn will work out of her
home office north of Seattle.
F. SANCHEZ IN FULLTIME ROLE WITH GAIAM.COM ANNIE CLAUDE SANCHEZ, formerly
in a leadership position with AMERICAN SPECIALITY HEALTH PLANS and a past consultant to
AMERICAN WHOLEHEALTH has taken a position with internet start-up GAIAM.COM. She is
serving as a strategic planner on CAM.
G. KLIGER IN FULLTIME CAM SLOT AT EVERGREEN
A former hospital and physician
group administrator, and until recently CAM consultant and writer through her firm, THE LAKES
GROUP, LEAH KLIGER has chosen to take a fulltime position heading up CAM for EVERGREEN
HOSPITAL in Bellevue, Washington, just east of Seattle. Evergreen, funded in part by a hospital
district tax, has used tax funds to support its CAM programs since shortly after the 1996 CAM
insurance mandate in Washington.
End
________________________
1.
2.
3.
4.
5.
6.
7.
NETWORKS AND HMOS: TRIAD/CORE BENEFITS; AETNA FEES; BRINKLEY

INTERNET: DISCOVERY/TNP; HEALTHONLINE/SENTARA; HNI/SMITHSONIAN
NATURAL PRODUCTS: CONSUMERLAB/ENZYMATIC; PHYSICIAN MARKET
DELOITTE AND TOUCHE EMPLOYER TRENDS: CAM STRATEGIES
MEDIA: MANAGED HC/ALTLINK; MODERN MATURITY/WEIL; JAMA/DRUSS
RESOURCES: MOSBY/NOVEY TEXT; STANGER/EMPLOYER ARTICLES
CONFERENCES: SUNY NY/TRADITIONAL HEALING; DIA; SELLING HERBS

__________________
News File #49 is a catch-up issue, with short reports on over a dozen developments. Among
these are a number of discussion items. LOU SPORTELLI adds to the case for why chiropractic
-- and other CAM services, extending his point -- should be integrated as core benefits. A
DELOITTE AND TOUCHE report on employer trends underlines strategies for CAM businesses
seeking to sell into that environment. Finally, a JAMA discussion on whether CAM services are
alternative/complementary, or add-on/replacement, re-births a useful concept: sequential
medicine. Sequential medicine is not quite embracing the Hippocratic concept of a therapeutic
order which would define CAM use in the best of worlds, but its a step toward acknowledging
actual consumer use, and thus in the right direction. Many consumers who use both use them
sequentially, not as complements, but as alternatives to each other. Meantime, using both in
an optimally integrative way may actually create a therapeutic regime which is a lower cost
alternative to conventional care! As always, your feedback is welcome. -- John Weeks,
Publisher-Editor
____________________
1.
NETWORKS AND HMOS: TRIAD/CORE BENEFITS; AETNA FEES; BRINKLEY
A. COST OF CARE SILOS AND CHIROPRACTIC AS CORE BENEFIT

LOU
SPORTELLI, DC, president of the TRIAD HEALTHCARE shared with THE INTEGRATOR an a
perspective on why chiropractic should be utilized as core benefit rather than as a stand alone
product. Sportelli takes a strong position with payers that the chiropractic solo expense is
deeply misleading. In Sportellis view, utilization of chiropractic relative to conventional medicine
must be viewed in the context of total medical costs, potentially foregone surgeries, and most
appropriately, indirect costs such as time loss. Sportelli argues that this positioning is among the
features which distinguish chiropractic from other benefits which are often stand alone riders such
as vision or dental. In Sportellis view, this linkage to other costs urges inclusino of services as a
core benefit.
B. AETNAs NATURAL ALTERNATIVES AFFINITY
A 1999 member booklet from AETNA
US HEALTHCARE lists the rates the health plans CAM providers are accepting on the
affinity/discount product: $30/visit for chiropractic, $30 per acupuncture therapy visit, $20 per
hour massage visit and $20 per hour nutritional counseling visit. The CAM program is an
affinity product for which members pay cash. Aetnas CAM network may also be used as a CAMbenefit extender for those members for whom some CAM services are covered.
C. One sign of the movement of CAM into the mainstream was the selection of RICHARD
BRINKLEY, CEO of Portland, Oregon-based COMPLEMENTARY HEALTHCARE PLANS to the
board of the AMERICAN ASSOCIATION OF PREFERRED PROVIDER ORGTANIZATIONS.
Brinkley is the only representative from a CAM firm on the board. Brinkley is a former health plan
CEO. Brinkley is among the discussants at the NMHCC CAM track in Atlanta this April.
www.comphcplans.com
D. New Orleans-based HEALING ARTS NETWORK (HAN), a subsidiary of AMERICAN
LIFECARE, named KIMBERLY MODLEY as marketing manager. HAN, a discount, is one of the
few CAM businesses reared in the deep South. www.healingartsnetwork.net
2.
INTERNET: DISCOVERY/TNP; HEALTHONLINE/SENTARA; HNI/SMITHSONIAN
A. DISCOVERYHEALTH.COM, a division of DISCOVERY HEALTH MEDIA, has selected

THENATURALPHARMACIST.COM (www.tnp.com) as a licensed content supplier on alternative
and natural products at the firms site. Discovery health media sponsors the Discovery Channel.
www.discoveryhealth.com
B. HEALTHNOTES DATABASE IN SMITHSONIAN COLLECTION The database on natural
products developed by Portland, Oregon-based HEALTHNOTES will become part of the
Permanent Research Collection on Information Technology at the Smithsonian's National
Museum of American History. The inclusion follows a nomination the firms product received for
the Computerworld Smithsonian Award. The product is one of 440 from 38 states and 212
countries in this years group. Stated SPENCER CREW, director of the NATIONAL MUSEUM
OF HISTORY: "The primary source material submitted by Healthnotes, Inc., will enrich the
National Museum of American History's growing collection on the history of information
technology and will contribute significantly to the museum's ongoing efforts to chronicle the
Information Age. www.healthnotes.com
C. Columbia, Maryland-based HEALTHONLINE and Richmond, VA-based SENTARA
HEALTHCARE IN E-LINK HealthOnline partners with regional healthcare systems to deliver
personalized health information. www.healthonline.com http://www.sentara.com
3.
NATURAL PRODUCTS: CONSUMERLAB/ENZYMATIC; PHYSICIAN MARKET
A. One strategy for ensuring quality in products is that engaged by White Plans, New Yorkbased CONSUMERLAB.COM. The firm analyzes products from diverse manufacturers, posting
general information on their website, and making more detailed reports available for a significant
fee. The firm also has a program through which natural products firms can have a
ConsumerLab.com Seal of Approved Quality on its labels. Wisconsin-based ENZYMATIC
THERAPY is the first to gain approval from ConsumerLab.com, for its Gingko Biloba 24% extract.
B. An article in NATURAL BUSINESS (January 2000, page 9) includes useful perspectives on
the growing practice of physicians selling vitamins, minerals and supplements. THOMAS
VORPAHL, a senior director with NU SKIN subsidiary PHARMANEX notes that his firm
anticipates the firms provider division could become a $1.2 billion company. AMA action targeting
potential conflict of interests by physicians is downplayed by an industry consultant. The
consultant anticipates that 20% of the nations 750,000 physicians might eventually sell product in
their offices. Vorpahl notes that Pharmanex offers physicians distribution structures which avoid
the AMAs concerns over excess profit.
4.
DELOITTE AND TOUCHE EMPLOYER TRENDS: CAM STRATEGIES
The 1999 Employer Survey on Managed Care conducted by the HUMAN CAPITAL ADVISORY
SERVICES of DELOITTE & TOUCHE and BUSINESS AND HEALTH magazine found a number
of trends which may be useful to CAM program developers. The main reference to CAM in the
release is that alternative medicines and treatments are also beginning to gain broader
acceptance. The authors notes that employers and health care plans more open to nontraditional forms of care. Nearly all (95 percent) of employers currently offer chiropractic
treatment and 29 percent offer acupuncture. The following integration strategies were not
specifically referenced in the report but can be supported by the reports findings.
A. DRUG COSTS/NATURAL PRODUCTS Natural products substitution strategies may meet
favorable ears based on the desire of employers to control soaring DRUG COSTS. Drugs costs
per employee were placed at $415/year.
B. DISEASE MANAGEMENT OUTSOURCING More than half (56 percent) of employers are
targeting chronic illnesses or diseases for management, with the most commonly targeted
conditions diabetes, high-risk pregnancy, heart disease, asthma, and cancer. There is an
increased trend toward outsourcing, which could support contracting with a quality CAM program.
C. EMPLOYEE INVOLVEMENT/DEFINED CONTRIBUTIONS Over 60% of employers believe
that employees will be more heavily involved in their own health care in the future. One method of
involvement may be through establishing a voucher type system. Xerox is reportedly considering
such a defined contribution versus defined benefit approach and the survey leaders believe
that more of this may not be far away.
D. PURCHASING COALITIONS The expanding interest in, and participation in, purchasing
coalitions, for drug benefits as well as other health benefits, suggests that these organizations
may become key targets for alliance and partnership.
BARBARA ADACHI, a principal with the firm was the survey director. Complete copies are
available for $50.00 by calling 888/361-9960
5.
MEDIA: MANAGED HC/ALTLINK; MODERN MATURITY/WEIL; JAMA/DRUSS
A. The February 2000 issue of MANAGED HEALTHCARE includes a three page feature, with
photo, of ALTERNATIVELINK, the New Mexico-based firm which owns a patent on a CAM coding
system. The article positions the coding product as a key administrative and legal compliance
issues, relative to CAM. Maine-based CAM consultant JAN THORPE, executive director of
ALTERNATIVE HEALTHCARE SYSTEMS OF MAINE states: We will never integrate CAM
nationally until we can validate and process claims nationally. www.alternativelink.com
B. The January-February issue of MODERN MATURITY, the magazine published by AARP,
features a lengthy interview with ANDREW WEIL, MD. Weil promotes the development of what
he calls Human Centers -- a clinic/spa hybrid, under the direction of retrained integrative MDs
with a variety of other practitioners on staff. The consumer would for a few days or a week for
lifestyle analysis, preventive counseling or adjustment. You could learn how to shop for a
prepare food, how to relax, how to exercise, remedies to use, maybe how to garden. Weils next
book is on aging.
C. SEQUENTIAL HEALTH CARE The January 5, 2000 edition of JAMA includes a discussion
on the YALE study of consumer use (DRUSS, et al, JAMA. 1999:282:651-656). The Yale study
concluded that CAM users might best be viewed as over-utilizers, and that the vast majority of
users were high users of conventional services. One letter writer, DAVID KATZ, MD, MPH,
suggests that understanding use requires looking at whether use is sequential medicine. Katz
describes this as use by patients whose conditions are least responsive to whatever care they
sought first. Katz points out, rightly, that the Druss thesis is a red flag to third party payers (CAM
as an add-on), where as sequential only suggests a distinction between overusers from those
seeking, but not knowing where to find, satisfaction. Druss agreed, in a response letter, that
Katz perspectives may be valuable. JAMA 2000. 283:56-57
6.
RESOURCES: MOSBY/NOVEY TEXT; STANGER/EMPLOYER ARTICLES
A. ADVOCATE HEALTH CARE PHYSICIAN: RESOURCE ON INTEGRATIVE CARE Mosby

just released an 850 page edited volume headed by DONALD NOVEY, MD, the lead physician
with the integrative clinic sponsored by ADVOCATE HEALTHCARE in Chicago. The clinic,
Center for Complementary Medicine, Lutheran General Hospital, Park Ridge, is among those in
THE INTEGRATOR Integrative Clinic Benchmarking Survey. The clinically oriented text has over
90 contributors. Mosby Publishers at +1-800-325-4177.
B. Two articles co-authored by JANICE STANGER, CAM leader with WILLIAM MERCER &
ASSOCIATES have recently appeared in the compensation industry periodicals. The Winter
2000 issue of COMPENSATION AND BENEFITS MANAGEMENT (CBM) includes a piece
entitled Complementary and Alternative Medicine: What Employers Need to Know. The first
quarter 2000 journal of the AMERICAN COMPENSATION ASSOCIATION includes a favorably
cast article: CAM: A Win/Win Addition to Employee Benefits. The articles include little that will
be new to INTEGRATOR readers, except a section on tax and compliance in the later article.
Also useful is Stangers commentary. The diverse therapies of CAM are presented as
generally inexpensive relative to conventional medicine. She concludes with there are several
incentives for health plans and employers to move aggressively toward expanding CAM benefit
coverage. She references growing consumer demand, potential for increased patient selfmanagement, lower general cost, potential value in disease state management and the adverse
pressure to explore alternatives due to rising pharmaceutical costs. In the CBM article, Stanger
concludes with: For a few years, the key to holding the line on health care costs appeared to be
offering managed care plans and enrolling most employees in managed care option. Now the
effectiveness of that strategy in controlling cost is rapidly eroding. Can CAM provide the key to
the next generation of health cost control strategies? Stanger, who is among the discussants at
the INTEGATIVE MEDICINE INDUSTRY LEADERSHIP SUMMIT states: The next few years
will demonstrate how CAM can take advantage of the opportunities for acceptance and overcome
the challenges facing that acceptance.
7.
CONFERENCES: SUNY NY/TRADITIONAL HEALING; DIA; SELLING HERBS
A. The schools of Nursing, Health Technology and Management and Social Welfare, together
with the CENTER FOR CAM AT SUNY STONY BROOK are offering an unusual conference
entitled CAM: Special Focus on Ancestral Practices, Spirituality and Energy Healing. The
program is looking for sponsors ($1500 and below). Among the presenters are DAVID
EISENBERG, MD, Assistant Surgeon General MARILYN GASTON, MD, and SAM BENJAMIJN,
MD, who directs the CAM program at Stony Brook. June 10-13, 2000. Betty Jean Wrase: 631444-3161, or bjwrase@ssw.hsc.sunysb.edu.
B. Third American QIGONG ASSOCIATION CONFERENCE will be held at the Omni Shoreham
in Washington, DC. April 21-23. Two tracks focus on integration of Qigong programs into
mainstream systems. www.eastwestqi.com
th
C. The DRUG INFORMATION ASSOCIATION is continuing its track on CAM at its 36 annual
meeting to be held in San Diego on June 11-15, 2000. Entitled Emerging and Re-Emerging
Therapeutics, the 12 session track focuses largely on botanicals. FLOYD LEADERS, PhD, of
THE LEADERS GROUP is the track chair. $750 for non-members. 215-641-1229
D. APOTHECARY DEVELOPMENT BOOK BACKED BY SEMINARS Seven day-long ($355)
seminars featuring LEAH KLIGER, MHA, CH, will be offered by HEALTH CARE
COMMUNICATIONS in diverse locations around the US this spring. Kliger is a former hospital
administrator who has an interest in herbalism and has helped mainstream organizations develop
natural products stores. Her 110 page book, Creating and Herbal Apothecary: An
Implementation Guide, is the basis of the training. The book is available for $195. 914-9676741.
End
__________________________
News File #50, March 6, 2000
***** EARLY NOTICE: NMHCC I/H BREAKFAST AND EVENING RECEPTION: APRIL 17 *****
1.
2.
3.
4.
5.
6.
NFAM CONSIDERS INSURANCE CAMPAIGN

HEALTH SYSTEMS ACTION: FAIRVIEW, U COLORADO, DEACONESS, PLANETREE
EARLY CHERKIN DATA ON NATUROPATHIC PRACTICE
WASHINGTON CLINICIAN WORKGROUP REPORT RELEASED BY OIC
CALIFORNIA REGULATORS WITHOLD APPROVAL OF HMO ACU BENEFITS
NETWORKS/HMOS: CAN, ASHP/PACIFICARE, NAFCN, WELLPOINT/AWHN

__________________
GET THESE NMHCC EVENTS IN YOUR CALENDAR! For those of you attending the NMHCC
rd
in Atlanta (April 16-19), please make a note that the INTEGRATOR with sponsor the 3
INDUSTRY/HEALTH BREAKFAST on Monday morning, April 17. That evening, THE
INTEGRATOR is also organizing a CAM INDUSTRY RECEPTION (and is presently lining up cosponsors). More information to follow. Please block out these times in your calendars. If you are
interested in co-sponsorship of the reception ($500-$750), please contact me or Charlie Priester
(isnh@quidnunc.net). Co-sponsors at the NMHCC last fall included ALIGNIS, ACN, TRIAD, ASHP,
AWHN, ALTERNATIVE LINK and INTEGRATIVE MEDICINE COMMUNICATIONS. Note that
you need not be attending NMHCC to come to these events.
____________________
1.
NFAM CONSIDERS INSURANCE ROLE
The NATIONAL FOUNDATION FOR ALTERNATIVE MEDICINE (NFAM) is considering a

campaign to introduce health care insurance companies and their policy holders to the
advantages of alternative medical treatments as a core part of the foundations mission.
Washington, D.C.-based NFAM was founded by the former Iowa Congressman, mentor of US
SENATOR TOM HARKIN, and the spirit behind the founding of what is now the NIH NCCAM,
BERKELEY BEDELL. Bedells NFAM has taken an activist role in examining health outcomes of
CAM interventions. Early NFAM initiatives have used a case sequence approach to examine and
report outcomes from the whole person approaches of cancer clinics abroad which have been
highly regarded in the CAM community but little considered by mainstream scientific approaches.
The focus of the NFAM, to date, has been on CAM in the treatment of cancer and other high cost
conditions. Bedell is a survivor of both cancer and Lymes disease who credits CAM for assisting
in his recovery. Diverse sources note that Bedell has become impatient with the NIH NCCAMs
approach. INTEGRATOR publisher-editor JOHN WEEKS recently joined an NFAM advisory
board to assist the organization in thinking about ways to most appropriately apply resources to
answering core questions in health system integration. NFAMs vice president and chief
operations officer is TIMOTHY FORBESS, a doctor of divinity. The foundation is presently
funded largely through Bedells significant family wealth but other sources are under exploration
For NFAM: 202-429-6633
2.
HEALTH SYSTEMS ACTION: FAIRVIEW, U COLORADO, DEACONESS, PLANETREE
A. FAIRVIEW HEALTH SERVICES, GROCER IN CAM WELLNESS CENTER Minneapolisbased FAIRVIEW HEALTH SERVICES has joint-ventured with LUND FOOD HOLDING, parent of
LUNDS AND BYERLYS, in a partnership which is to bring grocery and health care leaders in a
wellness focus that helps to support the relationship between health, nutrition and mind-body.
The late 1999 release notes that Fairview will support Lunds Living Wise whole-health program.
Lunds Uptown will includes a Fairview clinic on the second floor which offers annual exams,
chiropractic, acupuncture and nutrition education. A local juice bar is also participating in the
center. Other features in the compound include sales of natural products. The centers will utilize
community advisory councils in each area where a center has been located in one of the 18
Lunds or Byerlys stores, according to DAVID PAGE, Fairviews CEO.
B. The UNIVERSITY OF COLORADO SCHOOL OF MEDICINE is developing a strategy for
CAM integration through its primary care clinics, according to a source close the that activity. The
integration conversation has been underway for many month but has been deadlocked, but
strongly backed by some younger medical doctors. WILLIAM SCHATZ, MPH, an administrator
with the primary care clinics, is heading up planning.
C. In southern Indiana, MARY BETH DAVIS, CAM leader with DEACONESS HEALTHCARE, is
in the midst of an ongoing effort to vastly increase the role of CAM therapies throughout the
systems delivery. CAM treatments are being integrated into pain management programs
associated with the systems cancer center in a section that totals nearly 1800 square feet.
Exploration is also underway into similar strategies for hospice, home-health and Deaconess
mental health facility. Another significant project is a formal partnership the leading integrative
center in the region, a clinic founded by a local chiropractor. The clinic, in an eastern section of
Evansville, is a targeted area for expansion for Deaconess network of primary care clinics. The
clinics founder created a multi-practitioner group which already included a medical doctor,
chiropractors, physical therapists, a psychologist and massage therapists. A Deaconess family
practice physician, GREG TOOTHMAN, MD, began performing acupuncture and other CAM
services at the facility last year. Toothman completed the UCLA acupuncture training for
physicians, through support from Deaconess.
D. The PLANETREE organization now boasts 20 affiliate hospitals, according to its website.
The organization, founded in 1985 and widely saluted for its efforts to humanize the hospital
experience, was purchased by Derby, Connecticut-based GRIFFIN HEALTH SERVICES
CORPORATION. www.planetree.org
3.
EARLY CHERKIN DATA ON NATUROPATHIC PRACTICE
DAN CHERKIN, PhD, a researcher with GROUP HEALTH COOPERATIVE OF PUGET SOUND,
has shared with member of the WASHINGTON ASSOCIATION OF NATUROPATHIC
PHYSICIANS early data from his practice survey of naturopathic physician practices. Among the
findings:
*** REFERRAL
79% of patients are self/friend referred; 6% are MD referred; 1% chiropractor
referred and 14% other.
*** REASON FOR VISIT
No single condition stood out for these general practitioners of
natural medicine. Among those noted most often are anxiety, back/neck pain, depression,
fatigue, allergies, headaches.
*** MOST COMMON THERAPEUTICS Naturopathic physicians have an broad array of
natural therapies in their scope of practice. Those most used were: botanical medicines (38%),
vitamin therapy (37%), minerals (31%), therapeutic diet (29%), self education (23%), homeopathy
(215) and other (10%).
Cherkins study of the naturopathic, acupuncture and massage professions is bi-coastal and is
expected to provide the best picture available of these professions once published. Lead
naturopathic physicians on the project are CARLO CALABRESE, ND, MPH, BRUCE MILLIMAN,
ND, and LEANNA STANDISH, PhD, ND.
4.
WASHINGTON CLINICIAN WORKGROUP REPORT RELEASED BY OIC
The WASHINGTON STATE OFFICE OF THE INSURANCE COMMISSIONER (OIC) has

released a report on the three years of the CLINICIAN WORKGROUP ON THE INTEGRATION
OF CAM (CWIC). CWIC was a unique undertaking, comprising medical directors of the states
leading health plans, delivery systems, CAM networks and representatives of the states licensed
CAM professions. Started by the OIC in 1997, the groups activities were funded in the last two
years through sliding scale, annual contributions which ranged from $3000 (plans), $2000
(networks and physician groups) to $1000 (CAM professions). The highly interactive series of
explorations included roughly 70 individuals are various times, with generally 25-35 in any one of
the dozen four hour, facilitated sessions. The document, the writing of which was headed up by
LORI BIELINSKI, LM, in the OIC, may be of use to individuals outside of Washington for
numerous reasons. The first is the modeling of interactivity and the description of the workshops,
a 20 page section. All participants view the process as extremely valuable in gaining mutual
respect and understanding. The appendices may be particularly useful. One chart describes the
various interests of the parties in cross-fertilization -- desire to observer or be observed by
members of other professions as a means of breaking down boundaries. Another chart is an
overview of standard setting by the CAM professions as of early in 1998. A handful of the
integrative clinics in the area are profiled. Finally, Draft Seed Algorithms developed by
representatives of each of the six CAM professions (chiropractic, naturopathy, acupuncture,
nutrition/dietetics, midwifery and massage) are included. (Note that dietitians, while not generally
considered CAM, found that their perceived under-utilization aligned readily with the challenges
of the more typical CAM professions.) The CWIC agenda, which was developed from within by a
multidisciplinary planning team, gave significant attention to the need to develop working
guidelines for use of CAM services. While CWIC is not expected to continue, members are
presently considering a variety of follow-up activities. Bielinski will present on CWIC outcomes at
the NMHCC meeting in April. This process was co-facilitated by INTEGRATOR publisher-editor
JOHN WEEKS during the groups first 1.5 years. For copies of the report, contact Bielinski at
360-586-0706.
5.
CALIFORNIA REGULATORS WITHOLD APPROVAL OF HMO ACU BENEFITS
CALIFORNIA DEPARTMENT OF MANAGED CARE (the regulatory agency formerly known as

DOC) has yet to approve an acupuncture benefit by one of the states large HMOs. Despite
applications in late 1997 and early 1998, proposals by HEALTHNET and UNITED HEALTHCARE
are still without sanction. A third HMO, HEALTHPLAN OF THE REDWOODS, has also made
application, as has specialty network CONSENSUS HEALTHCARE. Presently the only entities
authorized to offer acupuncture are specialty plans LANDMARK HEALTHCARE and AMERICAN
SPECIALTY HEALTH PLANS, and a relatively small Bay Area plan, LIFEGUARD, which offers
the benefit through Landmark. Some observers contacted by THE INTEGRATOR argue that
DOMCs slow process due to pressure from established medicine. One put it this way: They
want to be ultra careful to make sure its perfect since there is so much political pressure from the
medical establishment. A source within DOMC who wished not to be quoted counters that
HealthNets application was sitting with HealthNet and ASHP (its carve-out network) for eight
months. What is clear is that the entrance of DMOC (then known as the Department of
Corporations) into regulating acupuncture was rocky. The regulatory agency took an initial
position that if a plan were to cover acupuncture, that it would also have to cover traditional
Chinese medicines (TCM). This was, for a time, the nations only natural products mandate.
Pressures from plans, and portions of the acupuncture community which place less emphasis on
herbs, led DOC to back off from this stance. Happily for the plans, the regulator expressed some
desire to move these application off my desk. A HealthNet source says the plan is hopeful of
receiving approval soon, and that, for the time being, we have a discount program in shape. For
observers of the national scene DOMCs slowness to move means that the state with the most
aggressive activity toward covered benefits in a non-mandated environment has been
significantly slower in getting off the ground than anticipated. Given typical industry processes,
outcomes data are unlikely to be available, for instance, until at least 2003 or 2004.
6.
NETWORKS/HMOS: CAN, ASHP/PACIFICARE, NAFCN, WELLPOINT/AWHN
A. A late 1999 memo from AMERICAN CHIROPRACTIC NETWORK announced the firms
plans to expand services to include a discount product involving chiropractors, naturopathic
physicians, massage therapists, acupuncturists and dietitians/nutritionists. GARY LEDUC,
director, network development. ACN claims a network of 7,000 providers and management of
services for over 5 million members. 888-226-6216
B. PACIFICARE OF WASHINGTON has contracted with AMERICAN SPECIALTY HEALTH

NETWORKS to offer a CAM network which began January 2000. The benefit is the firms first
foray into naturopathic medicine. An ASHP provider recruitment brochure announces a plan to
develop a network nationally of NDs. Members would generally receive 6-20 visits a year, for copays ranging from $5-$20 visit. For Washington state, the firm is offering maximum fee schedule
on a new patient (99205) at $113, and an established patient (99214) at $63. The rates are low
end compared to Washingtons leading plans. Pacificare had formerly offered an internal
network.
C. The NORTH AMERICAN FEDERATON OF CHIROPRACTIC NETWORKS is planning a
meeting for June 2-4 in Chicago. The organization is attempting to represent state and regional
networks amidst the increasing competition of national firms. The organizers are hoping to have
75-100 network leaders in attendance.
D. The purchase of RUSH PRUDENTIAL HEALTH PLANS OF ILLINOIS by Thousand Oaks,
California-based WELLPOINT HEALTH NETWORKS will give AMERICAN WHOLEHEALTH
NETWORKS a foothold in the Wellpoint organization. Rush had contracted with AWHN for
discount/affinity CAM services in Illinois. AMERICAN SPECIALTY HEALTH PLANS has
managed Wellpoints CAM in California. The Illinois business will be managed under Wellpoints
UNICARE brand. Wellpoint has 7.3 medical members nationally in its PPO, POS, HMO,
Medicare supplement and other products.
End
_________________________
INDUSTRY/HEALTH
1.
2.
3.
4.
5.
6.
7.
PRESIDENTIAL CAM COMMISSION ANNOUNCED

TWO FROM AMA: NO REQUIRED REFERRAL; HCFA ACTION ON NON-PHYSICIANS
ROLE OF CO-PAYMENT IN PRICING CAM BENEFITS
CAM/INTERNET: VITALCAST, CWC, MATRIA/AMERICAN HEALTH SCIENCES
HISTORIC FIRST: ND APPROVED BY IRB TO HEAD HOSPITAL RESEARCH
RESOURCES: GUERILLA MARKETING, HNI FOODNOTES, ACAM/INNOVISION
CONFERENCES: SUNY NY, ACAM, HOMEOPATHIC RESEARCH, DISEASE MGMT

__________________
NEWSFILE #51 begins with the announcements of potentially the most far-reaching policy move
in the history of CAM integration: the White House Commission. Immediately following are two
internal policy moves on CAM, by the AMA House of Delegates, which together underscore the
depth of challenges we face in education, relationship building, and appropriate use of resources.
The Internet begins a more formal, regular treatment in these News Files, with a group of shorts
in section #4.
____________________
1.
PRESIDENTIAL CAM COMMISSION ANNOUNCED
The WHITE HOUSE has finally announced the creation of the national CAM commission, funded
in the Fall of 1998. The Commission, formally entitled the White House Commission on
Complementary and Alternative Medicine Policy, will eventually have 15 commissioners,
appointed by the president, and an executive director, appointed by the secretary of Health and
Human Services. The focus of the work will be a report on legislative and administrative
recommendations for assuring that public policy maximizes the benefits to Americans of
complementary and alternative medicine. Areas under consideration are: education and training
of health care professionals; coordination of research; dissemination of information to the public
and professionals; and guidance for appropriate access to and delivery of complementary and
alternative medicine. The latter charge potentially creates a wide umbrella for exploring health
system issues relative to payment and delivery. The Commission is expected to be terminated
after two years.
2.
TWO FROM AMA: NO REQUIRED REFERRAL; HCFA ACTION ON NON-PHYSICIANS
A. Two years ago the AMA HOUSE OF DELEGATES passed an important resolution against
requiring gatekeeper referral or including CAM services in conventional risk pools. The action
escaped THE INTEGRATOR at the time. The language follows: AMA supports legislation that
managed care organizations that offer alternative medicine as a covered service not require
referral from a primary care physician for that service, and that the primary care physician not be
held at risk financially for the costs of those provided alternative medicine services. (AMA House
of Delegates Resolution (H 285-933) entitled Financial Liability Encountered in Referrals for
Alternative Care (702, A-98)) Interestingly, this position complements that of most CAM carveout networks, which promote direct access products under which the network assumes full risk.
B. In a December 1999 meeting, the AMA House of Delegates approved a measure to stem the
non-physician encroachment, including homeopaths, naturopaths, nurse practitioners and
others. The broader context is the Health Care Financing Administrations recent decision to
recognize certain non-physician providers, where licensed, at up to 85% of physician rates. The
group recognized by the HCFA rule includes nurse practitioners, physical therapists and
advanced practice nurses. Concern among physicians has been heightened by new evidence
that nurse practitioner-delivered services proved as effective and satisfying to patients as those
delivered by physicians. (Mundinger MD, et al. Primary care outcomes in patients treated by
nurse practitioners or physicians, a randomized trial. JAMA. 2000; 283: 59-68.) The issues
surrounding AMA positions, and citing the concern over CAM providers, are discussed in
Nonphysicians gain clout by LaCrisha Butler; American Medical News, Volume 43, Number 2: 1,
26.
3.
ROLE OF CO-PAYMENT IN PRICING CAM BENEFITS
One method for limiting what many HMOs perceive to be an uncertain and troubling financial risk
in covering CAM services is to raise the co-payment level. Some CAM providers express support
for such a model, arguing that the higher cash encounter may help maintain the patients
commitment to the CAM therapeutic process. A CAM network executive, on the condition of
anonymity, recently shared information which casts significant light on outcomes of manipulating
the benefit this way. Actual experiences of member utilization relative to co-payment on a
chiropractic carve-out in a direct access model, were: $5 co-payment, 7.7% utilization; $10 copayment, 3.5 percent utilization; and $15 co-payment, 2.5% utilization. The huge fall-off
suggests, first, that with a $20 co-payment, such as is required in the Upstate New York Univera
HMO/Landmark massage-acupuncture core benefit, the plans financial exposure would be very
slim. (This is particularly true, given the additional requirement of gatekeeper referral in that
model. Gatekeeping along can shrink utilization by 75-90%.) Second, the actual, global financial
risk will be even lower since surveys are telling us that 50-65% of users of massage therapists
and acupuncturists report diminished use of conventional services, pharmaceuticals, or both.
The last, intriguing note, is that one may wonder how deeply valued are the chiropractic services
if the addition of merely $5 more to a patients co-payment is stops use by 55% of the members.
4.
CAM/INTERNET: VITALCAST, CWC, MATRIA/AMERICAN HEALTH SCIENCES
A. Tampa, Florida-based VITALCAST.COM is recruiting CAM providers to lift their profiles onto
VitalCast SmartSites, according to the February 29, 2000, release from the firm. BILL
BATHHURST, the firms general manager, made the announcement. The strategy parallels that
of MOTHERNATURE.COM, offering providers a means of sharing in profits from sales of natural
products through the web. The firm is claiming distinctiveness through of its model through
rigorous standard of product selection by its board of medical advisers. This is in contradistinction to the MotherNature.com strategy which is advertised as supporting CAM provider
selection of suppliers. VitalCast.com also offers an interesting twist on the debate around
providers benefiting from sales of product by allowing the providers share to be donated to
charity. VitalCast is attempting to draw both physician and consumer interest through its use of
streaming audio technology which will link patients to radio shows from such personalities as
DEBORAH RAY and GARY NULL which can be offered as background listening in provider
offices. The release has an unusually direct comment on potential conflicts of interest: VitalCast
web site separates its content division from its e-commerce side. No one can pay to have his or
her books reviewed on the site, and seats on the expert board of advisers are not for sale. From
PRNewwire.
B. The call to the web is being heeded by another of the early private ventures into CAM clinics:
COMPLETE WELLNESS CENTERS (Nasdaq CMWL and CMWLW). The firm has selected
ENVISION DEVELOPMENT CORPORATION (www.envisiondev.com) to transition CWC into the
Internet healthcare community. The site will include patient education, practice management
information and physician recruitment tools. CWC presently advertises 57 centers in 12 states.
Rebecca Irish, Chief Financial Officer at 877-WELLNESS or at completewellness.com . From
PRNews, February 29, 2000.
C. Marietta, Georgia-based MATRIA HEALTHCARE, INC., recently signed a joint marketing
agreement with natural products supplier AMERICAN HEALTH SCIENCES (AHC). Matria
provides disease management services on womens health to health plans and employers. The
firm, with over 40 offices nationally, focuses on chronic conditions of diabetes, respiratory
disorders and cardiovascular disease. Tysons Corner, Virginia-based AHC will offer a line of
nutraceuticals as well as physician training and patient education materials. The release from
Matria references a November 1999 Committee Opinion from the AMERICAN COLLEGE OF
OBSTETRICIANS AND GYNECOLOGISTS which recommended that physicians ask patients
about their use of complementary and alternative medicine (CAM) and provide sources of
additional information about the subject. DONALD MILLARD, president and CEO of Matria calls
the alliance part of the firms effort to expand beyond gynecology to general womens health care.
Millard notes that he views the agreement as having the potential to provide a significant
revenue opportunity for the division." The release states that over 20 products are in the
agreement, including prenatal vitamins, calcium supplements, a phytoestrogen product for
menopause management, and formulations targeted to other female concerns. The president of
AHS is JOHN MAMANA, MD, a clinical associate professor at GEORGETOWN UNIVERSITY.
For AHS: www.clinicians-choice.com. For Matria: www.matria.com
D. Drawing the lines between the sequence of jobs held by MICHAEL CRONIN, ND, for
AMERICAN WHOLEHEALTH (AWH) describes the business shifts of that organization. Cronin, a
clinician with 20 years of experience and a resume which includes founding SOUTHWEST
COLLEGE OF NATUROPATHIC MEDICINE, was initially the director of integrative medicine for
AWH clinics. Subsequent to AWHs late 1998 merger with NATIONAL EMPLOYEE
BENEFITS/CAM SOLUTIONS which created AMERICAN WHOLEHEALTH NETWORKS,

Cronins title shifted to a clinical director position on the network side. With AWHs primary thrust
in the dot-com arena, Cronin is currently heading up business-to-business activity for
WHOLEHEALTHMD.COM. He continues to work out of his Phoenix office.
5.
HISTORIC FIRST: ND APPROVED BY IRB TO HEAD HOSPITAL RESEARCH
The Institutional Review Board (IRB) of the Zion, Illinois facility of CANCER TREATMENT
CENTERS OF AMERICA has approved naturopathic doctor LUKE HUBER, ND, to head up a
research project on the effects of green tea extracts in combination with two chemotherapy drugs
in stage III and state IV breast cancer treatment. The approval is believed to be the first for by a
hospitals IRB for a naturopathic physician. Huber is heading a mixed ND/MD research team.
847-872-6367.
6.
RESOURCES: GUERILLA MARKETING, HNI FOODNOTES, ACAM/INNOVISION
A. GUERRILLA MARKETING A CAM CLINIC

Building a Successful Practice, subtitled A
Step by Step Guide to Building Your Own Profitable Business, is a useful little vanity press
publication developed by JASON LILES and SHIROKO SOKITCH, MD, of HEART TO HEART
MEDICAL CENTER in Santa Rosa, California. For health system-sponsored integrative clinics,
some of the marketing strategies, such as leafleting cars, and carrying brochures door-to-door to
local businesses, may seem outside the usual marketing programs. What this book does is
capture some of the realities of the way CAMs providers have historically developed their
practices out of the grassroots. If not always a guide for a large facility -- although it is likely to
include some useful tips -- this 50-page production is a good grounding in guerrilla marketing
tactics for CAM services. A useful reference point for those who choose to explore these
marketing avenues is the reported in the March 2000 INTEGRATOR that the individual
responsible for recruiting patients for a new trial for the PREVENTIVE MEDICINE RESEARCH
INSTITUTE founded by DEAN ORNISH, MD, is doing so by taking brochures to neighborhood
businesses. Some 2000 of the $29 publication had been sold as of late 1999. 707-524-9640
B. HEALTHNOTES is adding a FoodNotes section and a retail staff training module in version
6.0, scheduled for release in May. The FoodNotes section attempts to help consumers sort
through the vast and conflicting dietary information. The section includes 55 topics, such as
organic foods, fat alternatives and fat replacers, soybeans and soy foods, vegetarian diets,
dietary fiber, fasting, and recipes for wheat, dairy-, and egg-free and soy diets. HealthNotes
founder, SCHUYLER LININGER, DC, notes that the retail staff training sections were added for
the simple reason that well-informed employees boost sales. Kiosks with the HealthNotes
database support sales of nutritional products in over 5000 outlets in the U.S. and abroad.
www.healthnotes.com
C. ACAM will initiate a new journal, CLINICAL PRACTICE OF ALTERNATIVE MEDICINE this
year, to be published by INNOVISION COMMUNICATIONS, the firm which publishes
ALTERNAITVE THERAPIES IN HEALTH AND MEDICINE. Editor will be DERRICK LONSDALE,
MD (440-835-0104), with Nancy Becker of Innovision (800-899-1712) serving as managing editor.
7.
CONFERENCES: SUNY NY, ACAM, HOMEOPATHIC RESEARCH, DISEASE MGMT
A. ALTERNATIVE MEDICINE: SHATTERING MYTHS, FORGING REALITIES is the title of a

conference scheduled for May 5-7, 2000. The common denominator in the talks is presented as
what works. All presenters are medical doctors. The conference is sponsored by AMERICAN
HEALTH CONSULTANTS, a MEDCIAL ECONOMICS company. AHC publishes some CAM
newsletters, including Alternative Medicine Alert. Grand Hyatt Hotel, Atlanta, Georgia. $495.
www.ahcpub.com
B. MEDICAL CHALLENGES FOR THE FAMILY is the focus of Spring Conference for the
AMERICAN COLLEGE FOR THE ADVANCEMENT OF MEDICINE (ACAM). Dallas, Texas, May
4-7, 2000. 949-583-7666 X3, or www.acam.org
C. The HOMEOPATHIC RESEARCH NETWORK, a group of leading medical doctor
homeopaths, will hold their fifth annual meeting in Washington, DC, June 23-24. The gathering is
in association with the AMERICAN INSTITUTE OF HOMEOPATHY meeting. For information,
contact MICHAEL CARLSTON, MD: (707) 545-1554; mcarlston@aol.com.
D. The 2000 DISEASE MANAGEMENT CONGRESS in Boston, September 25-27, will include
a day-long track on CAM, with a particular focus on mind-body. JON KABAT-ZINN, PhD, is
among the features speakers. Also included are MICHAEL SHOR, MPH, and LINDA BEDELL
LOGAN. The panel will be moderated by INTEGRATOR publisher-editor JOHN WEEKS.
End
____________________________
INTEGRATOR INDUSTRY/HEALTH NEWSFILE #52, March 29, 2000
1. CAM IN HOSPITALS: SUGGESTIVE DATA FROM AHA NURSE SURVEY
2. PINNACLE HEALTH ENGAGES CAM PROGRAM
3. WORKING WITH EMPLOYERS: CAM-HEALTH PROMOTION CROSS-OVER POTENTIAL
4. CONSUMERLAB PROGRAM FOR NATURAL PRODUCT QUALITY EXPANDS ONLINE
5. CAM CONSUMERS: MEDSTAT/INFORUM, NHANES III/NUTRITION, ER PATIENTS
OVERVIEW: Surveys relating to CAM usage continue to pop up everywhere. This NewsFile
reports intriguing data from AHA/Health Forum which could have been very useful, were it not for
a fax glitch which limited returns. Also included here are new looks at consumers, plus an
employer survey which ,while not focusing on CAM, provides guidance on partnership
opportunities. Finally, take a look at www.consumerlab.com and the related report this issue. This
organization appears to finally have created a business structure for attacking the problem of
variable quality among supplement manufacturers. Your comments, as always, are welcome. -John Weeks, Publisher-Editor, THE INTEGRATOR
__________________
1.
CAM IN HOSPITALS: SUGGESTIVE DATA FROM AHA/HEALTH FORUM NURSE SURVEY
The AMERICAN HOSPITAL ASSOCIATION/HEALTH FORUM has made available to THE

INTEGRATOR results of a survey of the 1200 members of the AMERICAN ASSOCIATION OF
NURSE EXECUTIVES (AONE) conducted last fall. A major fax problem significantly limited responses
(103 total, or 7%), but surveyor SITA ANANTH, CAM leader for AHA/HEALTH FORUM, notes that the
findings are while not statistically significant, are anecdotally significant and signposts and trends to
shape AHA/Health Forum activity. The purpose of the survey was to add to information from on
present and future use of CAM in hospitals, and also to gain a better understanding of the role the
AHA/HEALTH FORUM may have in supporting organizations in the way of information, resources and
services. Of respondents, 87% reported providing some CAM services. Half (47%) of those without
programs plan to offering some services. Outpatient services are generally offered between two and
three times as often. The finding reinforces perception that inpatient CAM services may are the next
frontier for integration. Pastoral counseling (63%) tops inpatient services, with massage (51%) topping
outpatient services. Primary motivation for 62% is patient demand, while support of institutional
mission ranked #1 with 20%. When asked for other strong motivators, clinical effectiveness appears
at the top, with 53% noting this issue. Request from physicians was noted by over a quarter (27%),
with request from employees also noted by many. Payment strategies, led by cash (69%), was all over
rd
the map. Other strategies include: 3 party (27%), part of physician or nursing care (18%), foundation
and grant money (9%) and workers compensation (6%). The top source of information for those
developing programs were journals, with THE INTEGRATOR and Alternative Therapies in Health and
Medicine noted. Others sources identified were; community CAM providers (54%), websites (52%),
consultants (25%) and a variety of other programs. The major challenges were listed as physician
resistance (69%), budgetary constraints (39%), lack of internal expertise (36%), provider credentialing
(31%) and lack of senior management buy-in (20%). Among the other challenges also noted were lack
of clinical studies and/or FDA approval. The leading requests for the way AHA/HealthForum can
support the work were listed as: reference materials (71%), web based information (55%), networking
(54%), customized education (43%), consulting services (22%), plus a variety of other services.
2.
PINNACLE HEALTH ENGAGES CAM PROGRAM
Harrisburg, Pennsylvania-based PINNACLE HEALTH has engaged a multi-faceted exploration of

CAM integration. DAVID FRANK, MD, is working two days per week, with an assistant, in loaned
space, on a $100,000 first year budget. Frank is a rehabilitation physician who has worked
closely with a chiropractor for the past five year. Pinnacle identified him as a potential CAM
leader prior to a retreat which looked into the subject a year ago. Frank is working on a strategy
which will build out CAM from current health system programs. He found interest in adding CAM
services among five of the systems 22 owned family medicine practices. Therapies of most
interest are massage, therapeutic touch, acupuncture and aromatherapy, Frank reports. He is
also exploring services which would include a general overview type visit and herbal and
nutritional counseling. All services are anticipated to be cash. He is also working the with
systems LEARNING INSTITUTE to integrate CAM into diabetic, pulmonary and cardiac
rehabilitation programs. He sees himself as a facilitator, working as a bridge -- I dont do any of
them. The program is called WellQuest Collaborative Healing Institute. PHONE
3.
WORKING WITH EMPLOYERS: CAM-HEALTH PROMOTION CROSS-OVER POTENTIAL
Those considering direct-to-employer marketing of CAMs potential for health creation may find
value in the 1999 National Worksite Health Promotion Survey by WILLIAM M. MERCER. The
report concludes that employer offerings of health promotion programs has grown significantly
over the past decade. Nine-in-ten worksites offer at least as minimum level program. Leading
reasons for offering: keeping workers healthy (84%), improving employee morale (77%), reducing
health care costs (76%) and retaining good employees (75%). Interestingly, when asked for the
business concerns which are related to employee health, health care costs jump to front of the
pack with (94%) noting this concern. Occupational injury and employee performance follow, both
at (89%), and ability to recruit and maintain employees (85%). However, only half of the
businesses regard health as a core business value and as essential to business objectives. Not
surprisingly, the depth of the employers health mission is closely correlated to the incidence of
health promotion programs. The report was developed in conjunction with the ASSOCIATION OF
WORKSITE HEALTH PROMOTION (AWHP) the US DEPARTMENT OF HEALTH AND HUMAN
SERVICES, and others. Growth of health promotion programs is anticipated to continue due to
rising health care costs. Information was collected at 1544 worksites for the report. Copies of the
$199 report are available from 847-480-9574, or online at www.awhp.org.
4.
CONSUMERLAB PROGRAM FOR NATURAL PRODUCT QUALITY EXPANDS ONLINE
The questions about the quality of natural products, especially those advertised online, are seeing
an intriguing step forward through an alliance between CONSUMERLAB.COM, an independent
product testing firm, and ENUTRITION,COM, a leading player in online retailing of natural
products. ConsumerLab.com, LLC calls itself an online provider of consumer information and
independent evaluations of health, wellness, and nutrition products. The firm plans to have
completed tests of many of the top selling dietary supplements in the United States, including
Echinacea, Calcium, Creatine, Garlic, Ginseng, St. John's Wort, as well as vitamins C, E, and
multivitamins. Many have already been completed. The tests can include ingredient composition
and amount, formulation, bioavailability, accuracy of label claims and purity. eNutrition, the firms
first Preferred Content Partner, will be able to post ConsumerLabs proprietary results taking the
results on their website as a navigation tool for consumers. Those products which pass muster
can be granted the CL Seal of Approval. Findings will also enable eNutrition to remove such
products from its store, according to the White Plans, New York. RANDOLPH GALE, eNutrition
president and CEO, calls the partnership an expansion of the sites advocacy: role for the
consumer. TOD COOPERMAN, MD, is president of ConsumerLab.com and MARK
BLUMENTHAL, founder of the AMERICAN BOTANICAL COUNCIL, is an advisor.
www.consumerlab.com; www.enutrition.com
5.
CAM CONSUMERS: MEDSTAT/INFORUM, NHANES III/NUTRITION, ER PATIENTS
A.
MEDSTAT INFORUM CAM DATA

th
The 13 annual PULSE SURVEY, conducted by MEDSTATs INFORUM, based on interviews

with 100,000 household respondents, found the following that alternative medicine is growing in
usage and in acceptance by the general population. At least one individual in 17% of
households visited a chiropractor last year; roughly 5% visited a massage therapist, homeopath,
acupuncturist, or nutrition therapist. Natural products such as herbal supplements are in use in
28% of households. The chief reason for doing so, cited by 40%, was a feeling that conventional
medicine didnt help. The researchers suggest that the combination of an empowered healthcare
consumer and the robust economy may explain the increase in the use of such services.
Notably, use of the Internet has doubled to 10% of households. Nashville-based InForums
PULSE survey covers over 70 topics, and links the results with lifestyle characteristics (household
preferences, habits, and choices) through Claritas' PRIZM, the premier lifestyle segmentation
system introduced by Inforum to healthcare providers more than ten years ago.
www.inforumonline.com Source: Business Wire, March 21, 2000.
B.
NHANES III FINDS GROWING SUPPLEMENT USE
The recent analysis of the third NATIONAL HEALTH AND NUTRITION EXAMINATION SURVEY
(1988-1994) (NHANES III) of 33,905 individuals finds a growing use of supplements and
acknowledges that supplement use may be increasingly necessary. While the era of the survey
is dated, author comments and analysis reflect the growing sophistication achieved in academic
medicine in the intervening years. The authors state: Certain dietary supplements may
become increasingly important in vitamin and mineral supplementation, since dietary practices in
the United States have changed in ways that have reduced the vitamin delivery from the diet. A
focused look at supplementation of folic acid, which is associated with prevention of neural tube
defects, by women of child-bearing years found that 2/3 were still not getting recommended
levels. Demographic spread among supplement users in NHANES III reflects other studies, with
use associated with individuals with higher incomes, higher education, Caucasian ethnicity and
residency in the West. The survey found more than 300 non-vitamin and non-mineral products
in use as dietary supplements some of which are documented as having serious adverse health
effects. The authors recommend much more substantial education of health professionals to the
pros and cons of supplements: Health professionals should be alert to the potential health effects
from overdosing or underdosing by those using the supplements. Additional pressure on
supplement-ignorant medical providers is indirectly applied in a recommendation that consumers
consult health professionals for evaluation on their diet and lifestyle prior to engaging a
supplement regime. A medical doctor with no education in this arena will not be worth much. The
authors also urge that supplement labels clearly list ingredients and known contraindications.
Finally, echoing a recommendation of virtually all researchers on consumer use of CAM, the
authors promote inclusion of questions on supplementation in medical histories. Results from the
research team, led by LINA S. BALLUZ, SCD, MPH, of the CENTERS FOR DISEASE CONTROL
were printed in Arch Fam Med. 2000;9:258-262. lib7@cdc.gov
C.
MOST EMERGENCY ROOM PATIENTS HAVE USED CAM
A report in the Annals of Emergency Medicine found that of 139 emergency department patients
interviewed, 78 had used some alternative medicine. The findings on communication with
physicians line up with past surveys of CAM users: a significant majority (70%) had not told their
physician. CAM was perceived to be valuable: 87% said that they believed that the therapies
were effective. Top use was massage (31%) and chiropractic (30%). About a quarter of the
patients use herbs. Meditation was noted by 19% and acupuncture by15%. The authors, JANET
GULLA and ADAM SINGER, MD, from SUNY STONY BROOK, urge emergency medicine
physicians to ask patients about CAM use, particularly herbal preparations which may cause
adverse effects. The authors note that they took a practical step which study after study
suggests should be taken in all conventional practices: questions exploring CAM use have been
added to their structured histories. Source: March 20, 2000 Reuters Health. (Ann Emerg Med
2000;35:226-228.)
End
INTEGRATOR INDUSTRY/HEALTH NewsFile #52, March 29, 2000
___________________________
INDUSTRY/HEALTH NEWSFILE # 53, March 31, 2000
1.
2.
3.
4.
INTERNET: HEALTHEON/YOUR HEALTH, MOTHERNATURE/WELLCALL, PLUS,

SMARTSMED-VITAMINSHOPPE, HEALTHCENTRAL/VITAMINS.COM, CWC/ARALT.COM
BEHAVIORAL HEALTH/CAM CROSSOVER: NEW NEWSLETTER, WEB PARTNERSHIP
CANT GET TO THE TABLE: AMA SAYS NO TO MEETING WITH ACA
PUBLICATIONS AND RESOURCES
OVERVIEW: The e-health movement is finding its way increasingly into the CAM universe. The
connection is DEMOGRAPHIC: CAM user profiles tend to reflect those of Internet user. The
connection is PHILOSOPHIC: promoters of both Internet and CAM view themselves as
advocates of patient empowerment and selfcare. The connection is ECONOMIC: natural
product sales and self-care books and devices are viewed as a natural for e-commerce. Add to
these affinities the following three CAM industry realities: 1) the disappearing PMPM to CAM
networks in affinity programs which is stimulating a focus by CAM networks on web sales of
products (see November 1999 INTEGRATOR); 2) the historically important although controversial
role natural products sales have had in the office income of many CAM providers; and 3) venture
money is heating up Internet exploration even as the hospital and health system deficits, post1997 Balanced Budget Act, are cooling health system investment in integrative clinics. For these
reasons and others, expect the role of the Internet to increasingly find its way into the
INTEGRATOR and these NewsFiles. Your comments, as always, are welcome. -- John Weeks,
Publisher-Editor.
__________________
1.
INTERNET: HEALTHEON/YOUR HEALTH, MOTHERNATURE/WELLCALL PLUS,

SMARTSMED/VITAMINSHOPPE, HEALTHCENTRAL/VITAMINS.COM,CWC/ARALT.COM,
A. HEALTHEON/WEBMD: $50M CONTENT AND SPONSORSHIP FROM YOUR HEALTH

HEALTHEON/WEBMD (Nasdaq:HLTH) has taken steps to remedy the dearth of CAM information
on the megasite. In a March 14 release, the firm announced an agreement under which New
York City-based YOUR HEALTH, INC. will create integrative medicine and wellness channel for
consumers and physicians. Like the recent megasite announcement which linked
DRKOOP.COM with WHOLEHEALTHMD.COM, the Healtheon/WebMD agreement has both
content and sponsorship components. Your Health is paying $50-million over a five year period
for the place on the Healtheon/WebMD site. Your Health has the exclusive online rights to the
CAM content of PHILLIPS PUBLISHING, including JULIAN WHITAKERs Health & Healing,
Alternatives and Health, which together are read by over 1-million individuals a month, according
to the release. Interestingly, the outspoken Whittakers widely read newsletter is one of the most
polarized and bombastic in alternative medicine, but with a reportedly successful link between
sale of information and sales of natural products. The release uses the following description:
Integrative medicine is the clinical practice of integrating alternative therapies with conventional
treatments to provide a more comprehensive form of care. The relationship includes: a
dedicated integrative medicine column in select specialty channels, including cardiology and
oncology; a new specialty channel; anda co-branded content specialty newswire. MITCHELL
GAYNOR, M.D., executive vice president and chairman of medical technology for Your Health
Inc. and director of oncology and integrative medicine at STRANG-CORNELL CANCER
PREVENTION CENTER, and president MARK A. FOX were the cited leaders in the release for
Your Health Inc.. The firm describes its mission as creating the first global platform to deliver
predictive wellness care solutions -- based on scientific, clinical information about alternative
therapies and integrative medicine -- to a community of consumers, health care providers,
educators, regulators and payors. Jennifer Meyer, for Healtheon/WebMD, +1 212-880-5253, or
jennifer.meyer@ogilvypr.com , or Leslie Glazer of Your Health Inc./The Fox Group, +1 212-4458226, lglazer@bsmg.com. Source: PRNewsWire, March 14, 2000.
B. MOTHERNATURE.COM ANNOUNCES THREE MORE PARTNERSHIPS
MOTHERNATURE.COM announced an expansion of its co-marketing program on March 15
(AOL News) with agreements with PHS HEALTH PLANS, FAMILY HEALTH AMERICA (FHA)
and WELLCALL. PHS is a Connecticut-based health care plan, FHA a national chiropractic
network and WellCall a provider of preventive health and wellness. MotherNature states that the
agreements will extend its reach to over a million covered lives and thousands of practitioners in
the three organizations. Publicly-traded MotherNature (Nasdaq: MTHR) has already locked
similar agreements with the AMERICAN ASSOCIATION OF NATUROPATHIC PHYSICIANS and
Sacramento, California-based Connecticut-based LANDMARK HEALTHCARE. Interestingly,
PHS, the third largest plan in the Northeast, had already contracted with Landmark to offer mixed
affinity and covered CAM products in the Tri-State area (NY, NY, CT) last year. PHS is a
subsidiary of FOUNDATION HEALTH SYSTEMS (NYSE:FHS). The PHS agreement will give
PHS members a 10% discount on product at a co-branded MotherNature-PHS site. The FHA
agreement is part of an attempt to move FHAs chiropractors into MotherNature Wellness
Advisory Network (WAN). Under this program, MotherNatures develops individual websites for
providers through which natural products prescribed for, or desired by, patients of the networks
chiropractors may be purchased. The WellCall deal is also built around MotherNatures efforts to
move practitioners into WAN. For information: Sharon Rice, call 978/929-2008 or email:
sharon.rice@mothernature.com.
C.
INFUSION FIRM SMARTSMEDS.COM IN AGREEMENT WITH VITAMINSHOPPE.COM
SMARTSMEDS.COM, and vitamin e-tailer VITAMINSHOPPE.COM announced an agreement on

March 13 under which VitaminShoppe.coms online vitamin sales will be made available to users
of Smartsmeds.com, the e-commerce site subsidiary of infusion therapy and specialty
pharmaceuticals firm INFU-TECH (Nasdaq: INFU). Visitors to the two sites will be hyperlinked to
the other, with conventional medical information and supplies provided by Smartsmed and CAM
product from VitaminShoppe. States JACK ROSEN, Infu-Tech chairman and CEO: By affiliating
ourselves with a prominent and well trafficked health and wellness site, we underscore our
position as the Internet provider of choice for disease management and the delivery of specialty
pharmaceuticals, and other prescription medication to patients suffering from chronic and longterm conditions by supplementing these services with, books and herbal, homeopathic and
personal care products -- to Smartmeds.com users. Infu-Tech, an organization accredited by the
JOINT COMMISSION OF HEALTHCARE ORGANIZATIONS, boasts managed care relationships
with enrollees of more than 70 HMO's, large employer groups, Medicare and Medicaid is 27
states.
D. HEALTHCENTRAL.COM PURCHASES VITAMINS.COM
HEALTHCENTRAL.COM announced on March 16 an agreement to purchase e-retailer
VITAMINS.COM, which it will operate as a wholly owned subsidiary HealthCentral (Nasdaq:
HCEN) acquires 200,000 new Internet customers in the deal, plus 175,000 mail order customers.
Vitamins.com, which had over $30-million in 1999 revenues, also has 10 retail stores in the great
D.C. area. Emeryville, California-based HealthCentral will issue $103-million in common stock to
acquire the firm. ROBERT HAFT, president of Vitamins.com, and C. SAGE GIVENS, Managing
General Partner of ACACIA VENTURE PARTNERS, an Vitamins.com investor, will be appointed
to HealthCentral.com's board of directors. More information is available until April 16 by
contacting http://www.noonanrusso.com/www/wwwHC/hcen.ihtml to hear an i/cast replay of the
announcement. According to the release, HealthCentral has access to 85 pharmacy benefits
management contracts. HealthCentral.com also acts as an application service provider by
designing, hosting and maintaining private label Web sites for hospitals and health plans. The
acquisition is presented as a major step toward creating profitability for the do-com firm. FRED
TONEY, HealthCentral.coms executive vice president and CFO made the announcement for the
firm . www.healthcentral.com
E.
COMPLETE WELLNESS CENTERS SELECTS DRALT.COM
COMPLETE WELLNESS CENTERS, manager of a network of multi-disciplinary MD-DC based

clinics, has selected Woburn, Massachusetts-based DRALT.COM as to support both B to C
(business to consumer) and B to B (business to business) CWC objectives. DrAlt.com
reportedly has proprietary technology to support the CWCs online practice management
objectives. According to a March 14 PRNewswire release, CWC anticipates that consumers
visiting the site will be able to have access to traditional and alternative health information and
product solutions, as well as the capability to interact with their healthcare providers. GARY
WHEAR is president of DrAlt.com. www.completewellness.com
2.
A.
BEHAVIORAL HEALTH/CAM CROSSOVER: NEW NEWSLETTER, WEB PARTNERSHIP

AN INTRODUCTORY REFLECTION
One surprising NON-development in the arrival of CAM in the HMO/insurance world is the limited
extent to which any behavioral health networks have expanded to include other CAM providers.
Instead, most of the significant CAM networks are expansions of chiropractic networks which
added other CAM provider types (ASHP, AWHN, CHP, Alignis, ACN, Landmark, etc.). Yet most
practitioners of traditional Chinese medicine, naturopathic medicine, of integrative MD-care. and
even massage will admit a strong if not leading mind/spiritual and/or behavioral component to the
body-mind interactions they have with their patients. Two recent developments sponsor this
reflection. A writer from a new newsletter contact THE INTEGRATOR regarding a behavioral
health newsletter that contains aspects on alternative medicine and billing for the same. While
the new product may simply be viewed as an attempt to as create a broader audience than either
target audience alone, the co-habitation in the same pages suggests a potentially rich
exploration. The second reason for this reflection is the notice immediately below. Might the next
phase of the integration process be marked by increasing focus on the behavioral aspects of
CAMs whole-person approaches?
B.
NEW DOT-COM ALLIANCE BRINGS CAM INTO DISEASE MANAGEMENT
Santa Monica, California-based RNETHEALTH.COM, INC. (RnetHealth.com) describes its

mission as offering programming, products and services as a platform for working with the
behavioral healthcare needs of significant employer and payer institutions. The firms
MYMINDANDBODY.COM site targets individuals with diverse behavioral health and addiction
issues ranging from eating disorders, depression and substance abuse to teen and domestic
violence, as well as the behavioral components of chronic diseases such as cancer and heart
disease. On February 28, RnetHealth announced an agreement under which its web visitors will
use a health care provider search engine developed by Hackensack, New Jersey-based
HEALTHSTREET. The co-branded RnetHealth-HealthStreet provider directory on
mymindandbody.com will include physicians, psychologists, clinical social workers, and
alternative healthcare providers who treat behavioral health and chronic illnesses. According to
RnetHealth president WENDY BOROW-JOHNSON, the relationship begins our workplace
initiative in establishing business-to-business services with behavioral health providers." DAVID
ZAKAI, president and CEO of HEALTHSTREET, anticipates that the alliance will enhance both
partners' business-to-business strategies through the expanded offerings and co-marketing
opportunities in the employee benefits marketplace." RnetHealths cable television network,
MYMINDANDBODYTV, which presently reaches into 6 million households, is expected to drive
traffic to the web site. Supporting this partnership are a network of relationships RnetHealth
boasts with diverse nonprofit behavioral health care organizations. Called National Partnership for
Recovery and Prevention (NPRP), the alliance involves 50 national health, support, recovery and
prevention organizations is the United States. For RnetHealth.com, call (310) 393-3979
3. CANT GET TO THE TABLE: AMA SAYS NO TO MEETING WITH ACA
An article by business reporter HOWARD WOLINSKY in the CHICAGO SUN-TIMES on March 24
revealed that the AMERICAN MEDICAL ASSOCIATION has turned down a request from the
AMERICAN CHIROPRACTIC ASSOCIATION for meeting between leaders of the organizations.
The ACA, which has quietly been attempting to set a meeting with the AMA for two years,
released a letter from AMA chairman TED LEWERS, MD, in which Lewers stated: It is our
understanding that the ACA desires to meet with the leadership of the AMA in order to `focus on
those issues we have in common.' However, the AMA has a different view and no desire for such
a meeting.'' The ACA proposed the meeting in August of 1997. Nearly a year later, in June of
1998, the AMA agreed to meet, but a date was not set, until early in 1999. The proposed meeting
date, November 17, 1999, was yet another eight months away. As the date approached, the
AMA reportedly canceled, citing pressing business. Garrett F. Cuneo, executive vice president
of the ACA, noted the ACAs hope for the meeting: We thought that by having the AMA and
ACA meet, we could form exploratory committees on education, research and professional
development that could speed cooperation. Lewers reportedly defended the AMAs decision by
complaining that ACA made spurious charges against the AMA in recent court documents
which provide no basis for beginning a dialogue. Lewers referenced ACA filings which allege
that the AMA conspired with Medicare to exclude in a series of policy changes which have
significantly diminished use of chiropractic by Medicare patients. ACA attorney George
McAndrews told Wolinsky that the references were to AMA behavior in the 1960s and 1970s
which led up to the ACAs successful lawsuit against the AMA. Source: AMA snubs overture
from chiropractors by Howard Wolinsky, Chicago Sun-Times, March 24, 2000.
4.
PUBLICATIONS AND RESOURCES
A. MEDICAL ECONOMICS has begun a quarterly column, CAM Consult, on CAM topics. The
primary care-focused publication views the move as an attempt to reach a younger demographic
as well as to respond to the general trend toward acknowledging the role of CAM in consumer
choice and physician interest. INTEGRATOR publisher-editor JOHN WEEKS was tapped by
DEBORAH GRANDINETTI, the publications in-house CAM expert, to write the column. Weeks,
contacted by THE INTEGRATOR , notes that his work tends to be homogenized into the
Medical Economics tone by the editorial process but that he is pleased to have the opportunity to
reach the magazines audience. The first column (December 7, 1999) focused on credentialing
issues. The second, scheduled for March, asks to what extent conventional practitioners should
expect to see CAM services replace what they are presently providing. The third looks at the
question of what is an integrative MD.
B. The web address for the full order from the WHITE HOUSE which is establishing a
presidential commission on CAM policy is: www.pub.whitehouse.gov/urires/I2R?urn:pdi://oma.eop.gov.us/2000/3/8/13.text.1
C. In a decision which the AMERICAN MEDICAL ASSOCIATION believes may create a basis
for increasing independent practice from CAM providers such as naturopathic physicians, the
HEALTH CARE FINANCING ADMINISTRATION (HCFA) told the AMERICAN ASSOCIATION OF
NURSE ANESTHETISTS (AANA) that HCFA will remove a requirement that nurse anesthetists
be supervised by a physician. The AMA has fought the rule ever since HCFA first proposed it in
1997. The final rule is expected in June. Nurse anesthetists already work without supervision in
29 states. The AMAs linkage of the advances in nurse independence to CAM providers is
explored in Nonphysicians gain clout by LaCrisha Butler. American Medical News, Volume 43,
Number 2: 1, 26.
D. THE CHIROPRACTIC PROFESSION, the new text on chiropractic recently reviewed here,
with a preface by WAYNE JONAS, MD, can be ordered by calling 1-877-291-7312. Cost is
$49.95 plus shipping. Another resource on chiropractic recently available is the MANTIS2000
research database, with over 1000 full text articles from the last five years of AMERICAN
CHIROPRACTIC ASSOCIATION and INTERNATIONAL CHIROPRACTIC ASSOCIATION
journals. In total, the database software includes over 20,000 references, either in abstract or full
text. Cost is $159. 800-622-6309
End
___________________________
INDUSTRY/HEALTH NEWSFILE #54, April, 2000
1.
2.
3.
4.
5.
6.
7.
BIG NEWS: NCCAM CONCEPT PAPER ON INTEGRATED MEDICINE

ANTHEM CLOSE TO ANNOUNCEMENT WITH AWHN/WHMD.COM
COST-CUTTING SHIFTS FOR UNIVERSITY OF ARIZONA PROGRAM
SUMMIT DRAWS COMPELLING GROUP OF SUPPORTING SPONSORS
INTERNET ALLIANCES: THEHEALTHCHALLENGE/IMC/HEALTH MAGIC; CHI/TNP
DISCUSSION: SCIENCE, COVERAGE AND COLLABORATION AT THE NMHCC
NATURAL PRODUCTS: BAYER/INDENA, NORTHCASTLE PARTNERS/3 FIRMS

__________________
1.
BIG NEWS: NCCAM CONCEPT PAPER ON INTEGRATED MEDICINE
In what is certainly the most significant step to acknowledge both the needs and the potential
goldmine of data available in the nations integrative medicine clinics, covered programs, and
health system integration strategies, the NIH NATIONAL CENTER FOR COMPLEMENTARY
AND ALTERNATIVE MEDICINE has posted a concept paper which describes its first proposed
award of grants on integrated medicine. The proposed RO1 grants, which need to be
approved by the National Advisory Council to NCCAM, will be for three years. They will go to 710 projects and are anticipated to cost, in total, $500,000 a year. This represents 0.7 of 1 percent
of the $70-million NCCAM budget to directly target the real world business of integration activity
which is the focus of INTEGRATOR coverage. The background statement includes reference to
integrated clinics about which we have little data, well-researched CAM treatments which are
poorly utilized, and insurance initiatives. Applicants are to study one or more of the following:
provider knowledge, attitudes and behaviors; economic pressures including patient/subscriber
demands; healthcare quality; health outcomes; patient quality of life; resource utilization; and
cost-effectiveness. Information on the grant is available at:
http://nccam.nih.gov/nccam/fi/concepts/concepts.html. The project officer is RICHARD NAHIN, MPH,
PHD (301-496-4792), a long-time, respected NCCAM staffer. COMMENT: This grant is clearly
an excellent step in the right direction for NCCAM funding. These health services projects -- at
roughly $50,000 each per year and $150,000 over three years -- are what we need to move the
industry forward. The funding level, however, needs to escalate rapidly. The industry would serve
itself to deluge the Center with well-thought out proposals.
2.
ANTHEM CLOSE TO ANNOUNCEMENT WITH AWHN/WHMD.COM
Sources close to negotiations between ANTHEM and AMERICAN WHOLEHEALTH (AWH) and
the AWH Internet subsidiary WHOLEHEALTHMD.COM (WHMD) have shared with THE
INTEGATOR the outline of a three phase roll-out for that relationship. The first phase is to be
nutraceuticals and personal care products via WHMD, including an interactive cooking
components. The second, anticipated to be 90 days after signing, will be an affinity product
involving acupuncture and massage. Anthems core states for the products are CT, NH, IN, OH,
CO and NY, with expansion to KY and ME anticipated soon. The third phase, which is not on the
table at this time but may evolve as the organizations work together, includes exploration of
covered benefits. The for-profit managed care firm has utilized internal chiropractic networks to
deliver chiropractic benefits.
3.
COST-CUTTING SHIFTS FOR UNIVERSITY OF ARIZONA PROGRAM
The PROGRAM IN INTEGRATIVE MEDICINE at the UNIVERSITY OF ARIZONA DEPARTMENT

OF MEDICINE announced in an April 12 release that steps were being taken to ensure the
programs financial viability following a budget shortfall exceeding $1-million. Cutbacks include
at least six staff lay-offs and a reduction in our for others. In addition, the enrollment date for the
incoming class of postgraduate fellows will be pushed back from July 1,200 to January 1, 2001.
The program ahs requested a bridge loan for the UNIERSITY OF ARIZONA FOUNDATION while
seeking additional private, state and federal support. The Programs founder, ANDREW WEIL,
MD, has been among the organizations representative which have worked to secure federal
support the Programs pioneering educational offerings. A new Associate Fellowship in
Integrative Medicine, offered electronically and through three one-week intensives, will go ahead
as planned, in August, with the first 40 enrollees. JAMES DALEN, MD, MPH, vice president for
health sciences and dean of the College of Medicine was quotes as saying: We are
disappointed at this setback for this ground-breaking educational program, but we are committee
to securing the funds needed to ensure that this important program can move forward.
4.
SUMMIT DRAWS COMPELLING GROUP OF SUPPORTING SPONSORS
The Integrative Medicine Industry Leadership Summit, sponsored by THE INTEGRATOR and
INTEGRATIVE MEDICINE COMMUNICATIONS, has drawn a diverse group of supporting
sponsors. The present list is topped by AMERICAN HOSPITAL ASSOCIATION/HEALTH
FORUM and INSTITUTE FOR HEALTH AND PRODUCTIVITY MANAGEMENT, key players in
the health systems and employer arenas, respectively. Two venture capital firms, HEALTH
BUSINESS PARTNERS and ADAMS HARKNESS AND HILL, have come aboard, as have two
network firms: TRIAD HEALTHCARE and AMERICAN SPECIALTY HEALTH. An important early
commitment came from INNER HARMONY WELLNESS CENTERS, backed by health change
entrepreneur PETER AMATO. The Summit has also gained supporting sponsorship from
ANGELA MICKELSON, an attorney with the California law practice of HOOPER LUNDY &
BOOKMAN, and Internet start-up ALTERNATIVEDR.COM. The Summit, scheduled for May 1820 in Tucson, has drawn a significantly greater-than-capacity (75 individual) interest. The
participant lists includes roughly 6-11 each of health systems, managed care organizations,
academic medical centers, integrative clinics, Internet start-ups and industry/professional
associations. Participants will also represent other stakeholders.
5.
INTERNET ALLIANCES: THEHEALTHCHALLENGE/IMC/HEALTH MAGIC; CHI/TNP
A. Newport Beach, California-based THEHEALTHCHANNEL.COM (THC) (OTC Pink Sheets:

THCL) announced a licensed content alliance with Newton, Massachusetts-based
INTEGRATIVE MEDICINE COMMUNICATIONS, publisher of THE INTEGRATOR, for consumer
and provider content covering clinical, regulatory and business development in integrative
medicine. THC CEO DONALD SHEA also announced an affiliation with HEALTHMAGIC. This
firm provides an array of Internet based empowerment tools: HealthCompass (lifelong health
record), CareCompass (home care information management system) and HealthTalk (a
secure proprietary platform for the exchange of private information on the Internet). For THC,
call888-663-8003 or www.thehealthchannel.com.
B. THE NATURALPHARMACIST.COM (TNP) was selected as a content provider by
CONSUMER HEALTH INTERACTIVE (www.consumerhi.com). CHI first became known in the
CAM industry as an Internet site developer for the website associated with the CALIFORNIA
BLUE SHIELD affinity product. The TNP content will be rolled out onto that site
(www.mylifepath.com) in April. Two other CHI Blues clients will adapt the content next: BCBS OF
MINNESOTA (www.blueprint.bluecrossmn.com) and then BCBS OF MASSACHUSETTS
(www.ahealthyme.com). TNP, a division of PRIMA PUBLISHING, noted that its other content
clients include DISCOVERYHEALTH.COM, THIRDAGE.COM, and LIFESCRIPT.COM. 916-7876997
C. A release from INTEGRATIVE MEDICINE COMMUNICATIONS on the INTEGRATOR

Integrative Clinic Benchmarking Project announced the following growing client list for its
licensed content: AMERICAN PHARMACEUTICAL ASSOCIATION, AMERICAN SOCIETY
OF HEALTH SYSTEM PHARMACISTS, RX.COM, MORE.COM, HEALTHGATE.COM,
ONHEALTH.COM, and ONCOLOGY.COM.
D. Winter Park, Florida-based COMPLETE WELLNESS CENTERS has escalated its move
toward the dot-com arena by a merger with DRALT.COM. CWC, which had previously
announced a five year services agreement with the Internet firm through CWCs own Internet
arm, COMPLETEWELLNESS.COM, will be the surviving entity. The April 17 PRNewswire
release noted significant contingencies which could yet alter the plan.
E. MARC MICOZZI, MD, PhD, has become a lead content consultant to HEALINGMD, an firm
describe in a April 10 release as an alternative medicine on /offline company offering expert
opinion on a variety of healing topics. HealingMD is a product of TESH.COM, and information
firm started by author JOHN TESH. Micozzi, executive director of the Philadelphia College of
Physicians is the editor of two leading CAM textbooks for physicians. The release notes that
HealingMD is currently closing a venture capital first round offering of $10 million. The launch of
the site is scheduled for early this summer. 310-453-2539
6.
DISCUSSION: SCIENCE, COVERAGE AND COLLABORATION AT THE NMHCC
The recent CAM Track at the NATIONAL MANAGED HEALTH CARE CONGRESS included
signs of growing maturity about the role of evidence in moving CAM integration forward. He
comments underscores the importance of the health services grants from NCCAM noted above.
A. THOMAS SNOOK, an actuary with MILLIMAN AND ROBERTSON in Scottsdale, Arizona,
was asked point blank: Which situation would make a payer more likely to include CAM: good
controlled trials and no utilization data, or no controlled trials and good utilization data? Snook
immediate response: The latter. No question. As he noted elsewhere in his presentation, there
is a Catch 22 in that payers dont like to cover things until they have utilization data, but they
cant have utilization data until something is covered. Few affinity products include any data
collection.
B. TOM ALLENBURG, DC, CEO of AMERICAN CHIROPRACTIC NETWORK, closed the seven
session track with an expression of outright frustration with health plan inactivity and lack of
creativity. He spoke of most CAM/managed care involvement as business relationships with
little or no serious consideration given to true integration. He noted that his sales director was
wondering aloud if maybe we should just stop coming to these folks. His presentation on quality
management placed responsibility squarely in the hands of the CAM networks since they can
gather the data which can make a difference. He strongly recommended that networks form
partnership with the health services research department at academic medical centers. His firm
has begun to do this. He projected the published research from these partnerships as the
leverage for change. Allenburgs fellow panelist, CHARLES SIMPSON, DC, medical director with
COMPLEMENTARY HEALTH CARE PLANS subsequently publicly offered that his firm was
willing to collaborate with other CAM networks to share and compile their outcomes. Simpsons
suggestion was greeted with applause by the audience.
C. JOHN ASTIN, PhD, a researcher formerly with STANFORD UNIVERISTY and now with the
UNIVERSITY OF MARYLAND CAM program also took a more aggressive tack toward health
plan and physician reticence around CAM. Astin laid out the quality research on mind-body
interventions -- his specialty -- for a variety of conditions. Then he asked rhetorically; Does
evidence lead to coverage of CAM? The answer is a categorical no. There is tremendous
evidence for efficacy and cost-effectiveness. As I stand here, this is the million dollar question.
Astin reported that ANDREW WEIL, MD, has stated that mind-body interventions will be the last
to be integrated -- more difficult that nutraceuticals or even acupuncture needles -- because
they come from a different paradigm. Astins presentation suggested a strategic struggle over
the investment which will most quickly create integration. He notes the LANDMARK HEALTH
CARE survey which shows that plans that dont cover CAM rank scientific evidence high, yet
plans that do cover rank evidence of efficacy low. Yet Astin, as a proponent of quality,
conventional research, continues, like many of his academic counterparts, to assert that RCTtype evidence is the fuel for change in integration.
D. In the discussant panel, a decision was made by a leader of a major HMO that what would
move plans was mandates. In Session #2, STEVE WOOLDRIDGE, a vice present in charge of
contracting with UNITED HEALTHCARE suggested that the chiropractors got their advances
through lobbying. He added: To the extent that the other professions do this will determine how
they do. Under consideration at the time were the acupuncture, massage and naturopathic
professions.
E. In a pre-conference session on which struggled with a similar dichotomy between the
principal of evidence-based care and the facts of habit-based care, a comment was made that
what successful integration requires is not Rocket Science but, in fact, Rocket Politics. The
reference at that time was to the politics inside an organization and individual physician practices
which are required to gain a place in the referral steam.
7.
NATURAL PRODUCTS: BAYER/INDENA, NORTHCASTLE PARTNERS/3 FIRMS
A. NORTH CASTLE PARTNERS, a half-billion dollar fund with a major position in the evolving
natural products industry, has merged into one unit three natural products firms which are among
the more credible natural products players. The largest of the three is Wisconsin-based
ENZYMATIC THERAPY, whose leading spokesperson and product developer for the past 15
years has been MICHAEL MURRAY, ND. Murray is the individual most responsible, through his
writings and speaking, for introducing European standardized extracts into the United States.
The other two firms, both based in Portland, Oregon, also have strong naturopathic physician
involvement: the formulations and ownership for NF FORMULAS and for TYLER
ENCAPSULATIONS are both largely naturopathic physicians. North Castle was formed in 1997
to purchase retail supplements leader LEINER HEALTH PRODUCTS, an investment which has
proved successful. An industry observer involved with a different firm told THE INTEGRATOR
that the recent move was brilliant they have huge manufacturing capacity which is now linked
to significant intellectual capacity. The firm also owns a stake in the slumping Internet natural
products sales firm MOTHERNATURE.COM. The firm has an inside track on industry
opportunities from ADAMS HARKNESS & HILL (AH&H). AH&H is among the supporting
sponsors of the Integrative Medicine Industry Leadership Summit sponsored by THE
INTEGRATOR and INTEGRATIVE MEDICINE COMMUNICATIONS.
www.northvcastlepartners.com
B. BAYER CORPORATION has announced a relationship with Italian natural products supplier
INDENA for worldwide exclusive rights to IDN 5109, a new anti-cancer compound, and its
derivatives. The substance is semi-synthetically derived from a species of the yew tree. Bayer
will pout the products through clinical development and commercialization. 203-812-6545.
Source: March 17, 2000. PRNewswire.
C. A solid look at the state of the natural products industry will be available at the NATURAL
BUSINESS-sponsored How to Profit in a Maturing Market conference slated for June 22-23 in
Berkeley, California. Among the co-sponsors is Rhode Island-based HEALTH BUSINESS
PARTNERS and NORTH CASTLE PARTNERS. 303-442-8983; $795 www.naturalbusiness.com
End
________________________
INDUSTRY/HEALTH NEWSFILE #55, April, 2000
1.
2.
3.
4.
5.
HEALTHECARE: E-COVERAGE WITH CAM COMPONENT DRAWS BIG PLAYERS

CAM PROFESSIONS: MIDWIVES RECOGNITION, AMA/ACAM
CONSUMERS: TWO REGIONAL POLLS
MCOS & NETWORKS: WHMD.COM/PPOM, BCBSMI/LANDMARK, ALIGNIS, PLUS
INTERNET & PUBLISHING: CONSUMERLAB BOOK, SEARCHPOINTE/CHIROS, PLUS
COMMENT: One hears a lot of talk in the CAM arena about the need for new models of
payment. The lead article about a firm which is emerging from the pack with $23-million and an
strategy which is combination of Internet, MSA-type product, CAM, plus catastrophic package
meant to attract employers. I wasnt able to reach the principals prior to deadline. The language
of the release has the sound of revolution. Time only will tell how it translates even as the last
revolution (managed care) continues to dissemble around us. On the far reaches of the CAM
arena from Internet-based benefits, direct-entry European-style midwives are taking on a
recognition campaign for their education at the US Department of Education. There is an
argument out there that the best way for fundamental natural health care -- the kind which
promotes the healing power of nature -- to re-root in American culture is for more parents,
mothers in particular, to have the experience of natures power, and of empowerment, born of a
largely self-managed homebirth. The evidence base for both the effectiveness and costeffectiveness of the delivery method itself, by qualified practitioners, is among the best of the
alternative services, as the childbirth stats from Holland where such practice is the first choice
for delivery clearly assert.
__________________
1.
HEALTHECARE: E-COVERAGE WITH CAM COMPONENT DRAWS BIG PLAYERS
HEALTHECARE, a significant partnership which involves PRICEWATERHOUSECOOPERS and

AON CONSULTING has drawn $23-million of private equity financing to a new benefit product.
The untested Internet-based strategy (www.healthecare.com) makes promises for all stakeholders.
** For employers: reduction of liabilities, more choices for employees and programs for
significantly less than the $600-$700 month for a family in an HMO.
** For consumers: more involvement and a wellness-oriented care which includes chiropractic
and acupuncture. CAM is played up as a major benefit. Consumers will have a Personal Care
Account, a medical checking account for routine care with funds paid in 100% by employers.
Funds will accrue at the end of the year if not spent. In the pattern of Medical Savings Accounts,
a high-deductible safety net policy to over expenses, after the employee-selected deductible is
exhausted, is included. The price for such coverage is typically half of an HMO subscription. A
variety of online and telephone based personalized tools will be available.
** For providers: no referrals, no gatekeepers, better informed patients and less paper.
The founders of the business are Craig Swanson, 34, CFO, and Chief Executive Tony Miller, 33,
both formerly of Deloitte Consulting. A release from the firm states that the concept that
attracted the investors was to give consumers more choice and responsibility in how they and
their employers spend health care dollars by basically cutting out the middleman -- the insurance
company or HMO -- from the decision on which clinic, doctor, chiropractor, herbalist or therapist
to visit. The founders believe the only way that you're going to change a system is to change
the way it's financed. The firms Personal Care Accounts are distinct from stand-alone
"medical savings accounts," where participation is limited by federal law and not tied into
personalized information services. Aon is on-board with risk management and benefits
consulting and PWC will provide personalized tools, including information on health issues. Equity
investors are Merrill Lynch KECALP, Psilos Group Managers, private-equity funders Bain Capital,
Alta Partners and Kohlberg Kravis Roberts & Co. The April 21 article was entitled Start up antiHMO draws big investor interest.
2.
CAM PROFESSIONS: MIDWIVES RECOGNITION, AMA/ACAM
A. The MIDWIFERY EDUCATION ACCREDITATION COUNCIL (MEAC) is seeking recognition

from the U.S. DEPARTMENT OF EDUCATION as the national accrediting body for direct-entry
midwifery programs. Direct-entry, European-style midwifery is distinct from nurse-midwifery
programs in that these practitioners are midwives who learn nursing skills to support prenatal
care and delivery, rather than nurses who learn midwifery skills. Graduates of MEAC programs
tend to provide homebirth. MEAC began developing standards in 1993-1994. Eight schools
presently have some with the organization. The states of Florida and Minnesota now use MEAC
as their standard for midwives. A letter from MEAC notes that one potential benefits of DoE
recognition is the use of MEAC standards to under-gird expansion of licensing to new states.
Currently 16 states recognize direct entry midwifes. Another value is allowing future midwifery
students to access guaranteed student loans. 520-214-0997
B.
AMA PRESSURE ON CME CREDITS HITS ACAM
The abstract, impractical gray line between teaching physicians about alternative medicine and
teaching them how-to deliver CAM services is causing an ongoing dance between the
AMERICAN MEDICAL ASSOCIATION and the AMERICAN COLLEGE FOR THE
ADVANCEMENT OF MEDICINE (ACAM). ACAM s president TED ROZEMA, MD, told THE
INTEGRATOR that the AMA threatened to drop accreditation of the associations programs for its
fall meeting and has been in close discussion for the spring conference. ACAM has sought to
meet the standard by allowing how to presentations in pre-conference while limiting confernece
presentations to scientific papers and reviews. The AMA requested that ACAM pay for an AMA
observer to attend the conference, which ACAM will do. Rozema is frustrated: We are in the
process of going through their hoops. The problem is you cant deliver the message for public
benefit through AMA-sanctuioned courses.
3.
CONSUMERS: TWO REGIONAL POLLS
A. GROWING CONFIDENCE IN CAM FOUND IN PHOENIX POLL

The Rocky Mountain Poll of 603 Phoenix heads of households from BEHAVIOR RESEARCH
CENTER found 50 percent feeling growing confidence in alternative medicine over the past 5
years. Confidence was down for 8% and unchanged for 32%. No comment was made regarding
correlation between perception of value and actual use. The quotes MANNY BRACAMONTE,
CEO of INTEGRAMED, an integrative clinics./ ews article. For convnetional doctors, 26 percent
of the respondents said their confidence had dropped, 23 percent reported increased confidence
and 47 percent said their outlook hadn't changed. Medical scientists came out looking good, with
a more favorable view in 41 percent while 13 percent said their confidence had dropped. A big
loser was public health offica, compared with 29 percent saying their confidence had dropped.
"That's a real red flag for doctors and it holds some lessons for them," said pollster Earl de Berge.
"Part of their problem, we found in our focus groups, is their attitudes toward alternative
therapies. The doctors don't know much about them, at best, or they demean them, at worst....
People tell us they're fed up with doctors who simply throw chemicals at their systems."
B. ALLINA SURVEY: CAM CONSUMERS RELY ON OWN EXPERIENCE, DOCTOR ADVICE
A random sample survey of 500 Minnesotans over 18 years of age by Minneapolis-based ALLINA
HEALTH SYSTEM revealed that for CAM users, personal testing was the way 58 percent
determined effectiveness. This was followed by consulting their doctor (26%), looking to advice
from family and friends (23%) and seeking out independent research (14%). The survey found
that 48% of Minnesotans had tried some CAM. Tops sere: chiropractic services (70 percent),
herbal (39 percent), nutritional supplements (38 percent), massage therapy (34 percent),
acupuncture, (17 percent) and biofeedback (9 percent). Of those who tried, 43% found CAM very
effective and 42% somewhat effective. The main reason in the survey for not trying CAM was:
"I don't get sick" (41 percent). Allina is a not-for-profit combined delivery system and health plan
in MN, WI and the Dakotas. www.allina.com
4.
MCOS & NETWORKS: WHMD.COM/PPOM, BCBSMI/LANDMARK, ALIGNIS, PLUS
A. WHMD.COM IN DEAL WITH PPOM Southfield, Michigan-based PPOM, the midwests

largest independent preferred provider organization, has formed an alliance with
WholeHealthMD.com on April 24 to offer PPOM network users access to CAM information,
providers and products. PPOM will also offer their members special discounts via the Internet.
(www.ppom.com) JAY LEVIN, PPOMs president and CEO sites a statistic that 70% of all
Americans used some CAM as his firms rationale. WHMD.COM is positioning itsled as the first
website to focus exclusively on integrative medicne. For information on PPOM, Deborah
Wilson at 248-357-7766
B. NATURALLY BLUE: BCBS MICHIGAN IN AFFINITY PROGRAM WITH LANDMARK
Naturally Blue is the name of a standard affinity product Michiogans Blues organization is
offering, starting June 1, through a partnership with LANDMARK HEALTHCARE. The provider
network will include acupuncturists, masasge therapists and nutritionists. Natural products will be
avauilable through Landmarks partnership with MOTHERNATURE.COM (NasdaQ: MTHR)
KATHY ELSTON, VP for marketing and sales handled the announcement for the Blues
organization. The program is noted as cost neutral in the release and will not affect premium
rates. For the Blues plan, Helen Stojic (313-225-8113) www.bcbsm.com .
C. CHANGE AT THE TOP FOR ALIGNIS CAM network CEO ROD LAUGHLIN, brought in 15
months ago to take over from founding president DAN HOLLIS has left the firm. The new CEO is
JACK WILLIAMS who has a long history in the managed care industry, including positions with
AETNA/US HEALTHCARE, MAGELLAN and NOVA CARE. He is expected to assist the firms
strategic focus. The firm recently secured an undisclosed new rounbd of financing. Also gone is
former COO HASSAN RIFAAT, MD. Rifaat is now working with e-health start-up HEALTH
MARKET.
D. ALTERNANET, LLC, a California-based CAM network is looking to be acquired or merging
into a larger firm. The firm boast 450 providers in its network, including chiropractic, massage,
acupuncture, and CAM-MDs/Dos, all of whom have agreed to a 20-35% discount. Principal
Andrew Miller contacted THE INTEGRATOR seeking advice on potential partners. 831-375-9343;
www.alterna-net.com:
E. CROSSROADS ALTERNATIVE MEDICINE, now CROSSROADS HEALTHCARE
INNOVATIONS has become a formal partner in CAM HEALTH PARTNERS, LLC, a network of
CAM networks. Crossroads founder ROY MAUER was elected president of CAM HP and is
effectively corporate headquarters for CAM HP. Mauers business partner MICHELLE KOSSEY
[CHECK] remains involved with the organizations. The two represented the firm the recent
NATIONAL MANAGED HEALTH CARE CONGRESS.
5.
INTERNET & PUBLISHING: CONSUMERLAB BOOK, SEARCHPOINTE/CHIROS, PLUS
A. CONSUMERLAB.COM, a firm which has quickly claimed leadership in a strategy to

distingish quality in natural products, has created a printed Buyers Guide to Dietary
Supplements. The Buyers Guide will feature ConsumerLab.coms test results and Lists of
Approved Quality Products for most of the popular types of dietary supplements sold in the U.S.,
including calcium, chondroitin, CoQ10, creatine, echinacea, garlic, ginkgo biloba, ginseng,
glucosamine, multivitamins, SAMe, saw palmetto, St. John wort, and vitamin C. An April 24
release from the firm noted that the guide will serve three purposes: raise awareness of product
quality, give consumers access to the firms product reviews and lead consumers to value the CL
Seal when selected products. 914-289-0065.
B. SEARCHPOINTE, INC announced on April 25 the launch of Chiropractor Search, a
background and credential verification service for chiropractors. The service, which claims
profiles 65,000 chiropractors, is launched through www.searchpointe.com. MATT CONNELLY, the
firms director of business development positions the services as a way for consumers to gather
informaitonn on providers whose care is often not covered by traditional so credentialing is less
likely. The firm is a subsidiary of ChoicePoint, Inc. www.choicepoint.net
C. INTEGRATIVE MEDICINE COMMUNICATIONS, publisher of THE INTEGRATOR has
launched an expanded version of the firms CAM database. Access 2.0 will include new
components on herb-drug interactions, supplement-drug interactions, drug-nutrient-depletions,
drug monographs, CAM modalities and a weekly consumer news feature
arketing@onemedicine.com; (877) 462-7088, ext. 223.
D. San Francisco-based HEALTHSHOP.COM, sometimes ranked the #1 natural health site by
Media Metrix, launched an alternative practitioner center in early April. The site includes three
functions for consumers: information, a practitioner locator, and tools and tips, a method to help
choose a therapy. An unusual feature is a Choose a Therapy Quiz which guides consumers to
potential treatment options based on their past experience, preferences, feelings and willingness
to explore new treatments. Patients are also offered a prep sheet to get them ready for a
meeting with a practitioners and some tips for successful patients which helps educate them on
making the most of the CAM visits. Some 70,000 practitioners are included in the Internet firms
search director. GLENN ZWEIN, CEO and founder. The firm, launched in January 1999, boasts
a 10-Step Quality Standards Program which helps separate the wheat from the chaff among
natural products firms.
End
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1.
2.
3.
4.
5.
6.
EMPLOYERS: SURVEY FINDS 55% COVER FOR COST/EFFECTIVENESS REASONS2.

PRIMARY CARE CHIRO STRATEGY UNFOLDS: AMI/AACP AGREEMENT
OREGON AND CALIFORNIA HMOS MOVE ON CAM COVERED BENEFITS
ASHP UPDATE: AFFINITY PRODUCTS IN ID, OH, MD, MA, CT, VA, OH
CONSUMERS: MEDSTAT, AMNEWS/CONSUMER REPORTS
HIGHER EDUCATION: DO/TCM CONSORTIUM; GAUDET/PIM; ADVOCATE/RESIDENCY
7.
INTERNET: YOUR HEALTH/PHILLIPS RIFT, HEALTHSHOP BELLY UP, ONEBODY
OVERVIEW: Positive news on the coverage front. First, an intriguing perspective from an
employer survey in which coverage for a majority is tied to substantive, rather than strictly
marketing issues. Also two reports of actual HMO covered benefits on the West coast, one an
unusual core benefit; and, from ASHP, a slew of new affinity products around the country.
Meantime, chiropractors pushing for a scope of reimbursed practice which extends to primary
care are developing an ambitious strategy with Alternative Medicine Inc. Meantime, retrenchment
in the Internet world continues. As Consensus Health -- now officially onebody, after the
onebody.com dot-com move by the firm -- CEO Alan Kittner said of the downturn in fortunes for
that sector: Instead of having the wind behind us, its in our face. Well see which firms have
the strength and access to capital to reef their sails up tight and beat into the wind. Noted
recently by yours truly on the door of the executive office of one dot-com firm -- to mix up our
metaphors a bit -- was a sign which says: There is no horse too dead to kick." John Weeks,
Publisher-Editor.
__________________
1.
EMPLOYERS: SURVEY FINDS 55% COVER FOR COST/EFFECTIVENESS REASONS
An e-mail survey by the AMERICAN COMPENSATION ASSOCIATION found that 46% of 400
employer organizations offered some CAM benefits. Project manager LEONARD SANICOLA
comments: In todays society, traditional medical care is no longer the only form of medicine.
However, 91% of the organizations do not directly contract with any Cam providers. Interestingly,
only 37% offered chiropractic, far below the figures in most other employer surveys. For the first
time in a survey, the top reasons for offering CAM were perception of significant value in creating
more effective or cost effective care. While employee requests accounted for 27%, state
mandates for 9% and employee attraction and retention for 9%, more substantive clinical and
cost issues accounted for 55% :
**
**
**
**
**
14% (Potential for more effective and less invasive medical care)
11% (Potential for long-term group health plan savings)
14% (Potential to address rising costs of health a disability benefits/cost containment)
14% (Fits nicely with existing wellness programs)
2% (Impact employees time off work)
Interestingly, top reasons for not offering were lack of utilization & cost data to support
effectiveness (13%), lack of management support (11%) lack of availability from insurers
(15%) and expansion of costs without any proven cost-savings (17%). Notably, inadequate
clinical research was noted by just 5%, a margin less than lack of quantifiable cost-savings data
(6%). Interestingly, for large employers, the lack of utilization and cost data went up -- 27% for
organizations with 2500-4999 employees and 20% for those with more than 5,000, while
inadequate clinical research was negligible for the former and just 4% for the latter. For the two
largest employer categories, concern over expansion of costs was at 8%. COMMENT: The
higher importance of health services type data over clinical research was noted, bluntly, by
MILLIMAN AND ROBERTSON CAM expert and actuary TOM SNOOK at the recent NATIONAL
MANAGED HEALTH CARE CONGRESS, and cited in News File #54. For the study, go to:
www.acaonline.org/research/generic/html/cam-survey-home.html
2.
PRIMARY CARE CHIRO STRATEGY UNFOLDS: AMI/AACP AGREEMENT
In a relationship which the principle organizations believe will create the driving force behind the
creation of the first natural health care delivery system, ALTERNATIVE MEDICINE INC. has
been selected as the exclusive national credentialing authority for the AMERICAN ACADEMY OF
CHIROPRACTIC PHYSICIANS. AMI, founded by CEO JAMES ZECHMAN and RICHARD
SARNAT, MD, is the CAM network and managed care organization which developed a
chiropractor-as-PCP strategy for HMO ILLINOIS. (See January 2000 INTEGRATOR.) AACP,
headed by REINER KREMER, DC, was founded in 1999 by a group of primary care-oriented
chiropractors and two chiropractic colleges. The organization represents chiropractors who are
interested in claiming a broader scope of practice than merely musculoskeletal work. NATIONAL
COLLEGE OF CHIROPRACTIC, in Chicago, a leading chiropractic educational center for primary
care practice, has been represented on AMIs board through its president JAMES
WINTERSTEIN, DC. Under the agreement, AACP will use AMIs credentialing criteria and
continuing education. The late April release states that the credentialed chiropractors will be
required to demonstrate credentialing standards that equal their traditional , western trained MD
counterparts. [NO MENTION MADE OF RESUIDENCIES] The organizations believe that,
following the move, the chiropractic profession :will experience the same transformation that
osteopathic care was undergone during the last two decades, with increased general acceptance
and practice rights alongside MDs.
3.
OREGON AND CALIFORNIA HMOS MOVE ON CAM COVERED BENEFITS
A. BROAD CAM CORE BENEFIT OFFERED BY HEALTH NET (OR) VIA CHP
In a move that is unusual nationwide, HEALTH NET HEALTH PLAN OF OREGON now offers a
significant, core complementary and alternative medicine (CAM) benefit to all of its 100,000
members. Upon their renewal, all Health Net members can see chiropractors, acupuncturists,
naturopathic physicians and massage therapists at no additional cost. The benefit, called Well
Net, is managed by Portland-based COMPLEMENTARY HEALTHCARE PLANS (CHP), the
dominant network in the Oregon market. Health Net is the first health plan in Oregon, and among
the first anywhere, to offer such a broad core benefit in a state without a mandate. RICHARD
BRINKLEY, CHPs president and CEO, refers to Health Nets decision as a sea-change in
Oregon healthcare. Rather than requiring an additional premium for a supplemental CAM policy
rider, all Health Net members will all have a CAM benefit. Health Nets unusual CAM direction is
led by JUDI IRVING, the plans president: We think complementary and alternative medicines
offer a natural form of health care that can effectively complement traditional medicine for many
common problems. The core benefit, which is offered to individuals as well as groups, is for
$500 of services. Groups can buy-up to higher benefit levels. A non-covered discount-affinity
component is provided as a wrap-around to the covered benefit. The benefit is also remarkable
in that members can self-refer for, and directly access, the services. No gatekeeper is required.
CHP, founded in 1989 as ChiroNet, now manages CAM services for 235,000 pre-paid lives and
1.2 million preferred provider and other managed care lives through its four affiliates: ChiroNet,
NatureNet, AcuMedNet and CHP Massage. The statewide network has 350-400 providers with a
majority representing the firm's original chiropractic network. More details on the product are in
the May 2000 INTEGRATOR. For CHP, contact Cathie Ericson (503-248-9468).
B. CALIFORNIA REGULATORS BREAK LOGJAM ON ACUPUNCTURE
The California DEPARTMENT OF MANAGED CARE, formerly the Department of Corporations,
has finally approved a new health plan to offer an acupuncture benefit. The successful applicant
is HEALTH PLAN OF THE REDWOODS, an AMERICAN SPECIALTY HEALTH PLAN client. At
least two other ASHP clients are in cue with approval believed to be coming soon. Sources
suggest that DOC got cold feet on new approvals after its first jump into acupuncture regulation,
which required those offering acupuncture to also offer a Chinese herbal medicine benefit, was
attacked by some members of the health plan and provider community.
4.
ASHP UPDATE: AFFINITY PRODUCTS IN ID, OH, MD, MA, CT, VA, OH
Over the past seven months, AMERICAN SPECIALTY HEALTH NETWORKS has lined up a
series of affinity products, previously unreported in the INTEGRATOR. Sources close to ASHN
have shared with THE INTEGRATOR that while all this business is affinity, the firm is bullish on
the future for coverage benefits. Executives believe that in the next 6-9 months new covered
benefits will be announced in many locales. Among the new affinity contracts, with useful
comments and information from the boilerplate ASHN releases are:
** KAISER PERMANENTE MID-ATLANTIC. Began January 1, 2000. 540,000 members.
Quoted spokesperson: JAMES NOVELL, president of Kaisers Health Plan. Interesting factoid:
The Stanford/ASHP 1998 survey founded that average out-of-pocket for users of acupuncture
was $270 and for herbs $111. The program is in addition to a Kaiser rider. Kaiser contact: 301816-6264. Release date: October12, 1999.
** Ohio-based KAISER PERMANENTE OF OHIO (www.kaiserpermanente.org/ohio). Began in
early 2000. 200,000 members. Quoted: DAVID CROSBY, director of sales. Contact: Eileen
Sheil, media relations: 440-962-0722. Release date: November 18, 1999.
** St. Louis-based ALLIANCE BLUE CROSS BLUE SHIELD (www.abcbs.com). Began April 1,
2000. No total on member noted in release. Quoted spokesperson: KATHY ZORICA, senior vice
president of product management and business analysis. Program includes member of the
senior BlueHorizons Medicare product. ABCBS is Missouris largest benefit provider. Release
date: April 1, 2000.
** Springfield, Massachusetts-based HEALTH NEW ENGLAND (www.hne.com). Begins July 1,
2000. 100,000 members in Massachusetts and northern Connecticut. Quoted spokesperson:
PETER STRALEY, HNE president and CEO. 413-787-4000. Release data: March 22, 2000.
** Boise, Idaho-based BLUE CROSS OF IDAHO. Begins later summer 2000. 280,000
members. Called Natural Blue. Quoted spokesperson: TRACY HENDERSON, spokesperson.
208-331-7465. Release date: April 14, 2000.
** Virginia-based TRIGON BLUE CROSS BLUE SHIELD (www.trigon.com). Began March 1,
2000. Quoted: CEO THOMAS G. SNEAD, JR., president and TERRI LEONARD, product
manager. Program name: Healthy Complements. Contact Jane Olsen: 804-354-3926.
5.
CONSUMERS: MEDSTAT, AMNEWS/CONSUMER REPORTS
A. The 1999 Inforum Pulse survey, conducted by THE MEDSTAT GROUP, has found that 5%
of households nationwide visited a non-chiropractor alternative medicine practitioner. Massage
therapists were most widely visited, with 44.6% of users seeking this type. Nearly one-third
(29%) said they had some coverage for the services. Roughly two-in-five used the CAM
services because they thought conventional care didnt help, while 28.2% used these services in
a classic complementary fashion, to supplement their conventional care. Belief in the value was
noted by 13.8%.
B. The May 1, 2000, issue of American Medical News (page 8), a publication of the AMERICAN
MEDICAL ASSOCIATION, included an article based on the CONSUMER REPORTS consumer
survey on CAM (May 2000). The article, entitled Patient, doctors talking more about alternative
care, highlights a shift toward disclosure of CAM usage between doctors and patients. The
consumer reports study found that 60% of the magazines readers told their doctors, that most
doctors approved (55%) or were neutral (405) and only 5% disapproved. Consumer Reports
health editor RONNI SANDROFF is quoted as stating that the increased communication is linked
to a variety of factors, including increased popularity, publication of new studies, more continuing
education for physicians, and new insurance benefits. The unusual poll, which asked 46,000
consumers top note two medical conditions theyd had in the last two years, then asked what they
did for them found that 35% (16,000) say alternative providers. Top usage was deep tissue
massage for lower back and fibromyalgia, as well as chiropractic and acupressure. Nine percent
of users said they used CAM treatments first.
6.
HIGHER EDUCATION: DO/TCM CONSORTIUM; GAUDET/PIM; ADVOCATE/RESIDENCY
A. The Athens, Ohio-based OHIO UNIVERSITY COLLEGE OF OSTEOPATHIC MEDICINE

(OU-COM)has linked with nine Chinese medical institutions to study the role of TCM in Western
medical practice. Ohio University President ROBERT GLIDDEN, PhD describes the focus of this
partnership is to increase multinational cooperation in the study and practice of traditional
Chinese medicine through affiliated research, education and scholarly activity. The partner in
China is the STATE ADMINISTRATION OF TRADITIONAL CHINESE MEDICINE OF CHINA.
One project is expected to be an authoritative textbook of traditional Chinese medicine. A part
of the package is elective rotations in China for OU-COM students. OU-COM is planning to
include study of basic Chinese medicine concepts in its curriculum in 2001. Contact at OU-COM
is Bruce Dubin, D.O., associate dean for information and planning (740) 593-2182.
B. New changes at the PROGRAM IN INTEGATIVE MEDICINE at the UNIVERSITY OF
ARIZONA. On July 1, executive director TRACY GAUDET, MD, and director of education
RICHARD LIEBOWITZ, MD, will each resign. In a release, the two noted that it is their marriage
plans rather than the programs financial troubles (see New File # ) which prompted their
resignations. Gaudet said she was brought in as a start-up person three years ago and is
reportedly considering various offers from around the country. Gaudets hours and her $130,000
salary were each slated to be cut by one-fourth in PIMs financial retrenchment following a $1million short-fall due to a decline in contributions. Liebowitz, former head of UAs internal
medicine department, is reportedly considering a return to that position.
C. A one month elective in complementary medicine is now offered as part of the residency
training at LUTHERAN GENERAL HOSPITAL in Chicago. The residency, noted in the March
2000 INTEGRATOR, will typically include four, half-days each week at the CENTER FOR
COMPLEMENTATR MEDIICNE sponsored by ADVOCATE HEALTHCARE and headed by DON
NOVEY.
7.
INTERNET: YOUR HEALTH/PHILLIPS RIFT, HEALTHSHOP BELLY UP, PLUS
A. A significant rift has opened between between YOUR HEALTH INC., supplier of CAM
content for the HEALTHEON/WEBMD site and PHILLIPS INTERNATIONAL, whose content
YOUR HEALTH intended to licensed for use on the site. Your Health had planned a $250 million
purchase of Phillips health oriented publishing and vitamin sales business. According to court
documents, Phillips is suing because Your Health has failed to make timely payments. Your
Health is owned by the FOX GROUP, started by MARK FOX. Your Healths agreement with
HealtheonWebMD was to make a $50-million payment over five years to promote natural product
sales. Reported by Reuters, April 24, 2000.
B. WHOOPS DEPARTMENT: HEALTHSHOP.COM BELLY UP The last News File included a
short on a new program initiated by San Francisco-based HEALTHSHOP.COM. The July 1998
start-up for online natural products sales shut down its e-commerce operations on April 12, after
burning through $30-million in investor cash. Among the losers was WARNER LAMBERT, which
took a minority stake in the firm on in 1999. A discussion of the firms demise in the May 2000
issue of Natural Business (www.naturalbusiness.com), Healthshop.coms E-commerce Crashes,
attributes the failure to some poor management decisions but also to an over crowded natural
products sector. The article notes the irony that e-commerce analyst JUPITER
COMMUNICATIONS believed the e-tailing of natural products is poised for explosive growth
with a $1.7 billion in sales by 2004. According to observers cited in the article, other funerals are
expected.
End
_________________________
INDUSTRY/HEALTH NEWSFILE #57, May 25, 2000
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9.
MIRAVAL SUMMIT FINDS LEADERS READY FOR MORE COLLABORATION

NCCAM: PLAN SEEKS (YOUR) COMMENT; NATURAL PRODUCTS WEIGH IN
BLUE SHIELD CA OFFERS FREE GUIDED IMAGERY PRE-OP TAPES
YOUR HEALTH INC. PURCHASES ASSETS OF INTEGRATIVE MEDICAL ARTS
STUDY LOOKS AT MEDICAID REIMBURSEMENT IN CAM FOR KIDS
FEDERATIION OF STATE MEDCAL BOARDS: GUIDELINES ON INTEGRATION
LEADERSHIP SOUGHT AT ARIZONA PROGRAM
E-HEALTH: ONEBODY/CMPM, IMC/WISNESKI, PLUS NEW PRODUCTS
MCO AFFINITY PRODUCTS: OKLAHOMA BLUES, TROJAN HORSE STRATEGY

Integrative Medicine Communications (onemedicine.com). John Weeks, Publisher/Editor.
__________________
1.
MIRAVAL SUMMIT FINDS LEADERS READY FOR MORE COLLABORATION
The Integrative Medicine Industry Leadership Summit at the Miraval Resort in Tucson, Arizona,
May 18-20, produced strong interest in enhanced and ongoing collaboration from a vast majority
of the diverse assortment of 75 CAM leaders present. The meeting, sponsored by THE
INTEGRATOR and INTEGRATIVE MEDICINE COMMUNICATIONS, concluded with working
sessions around key issues which were earlier identified by participants. In a pre-Summit survey,
nearly 9 in 10 (86%) stated they believed that developing exceptional collaborative abilities was
a core requirement for success in integrative medicines mission and business. An exit poll found
significant interest among those involved in forming an industry association, participating in a
national policy Summit and annualizing the meeting. (Over 90% said they would return were
such a meeting held again.) An array of ad hoc working groups were established. Significant
interest was also expressed in a federal educational campaign to significantly increase the federal
dollars available for health services (integrated medicine) research in CAM. Supporting
sponsors for the Summit include: ADAMS HARKNESS AND HILL, AMERICAN HOSPITAL
ASSOCIATION, ALTERNATIVEDR.COM, ANGELA MICKELSON (H, L & B), AMERICAN
SPECIALTY HEALTH, TRIAD HEALTH CARE, INNER HARMONY WELLNESS CENTER,
HEALTH BUSINESS PARTNERS and INSTITUTE FOR HEALTH AND PRODUCTIVITY

MANAGEMENT.
2.
NCCAM: PLAN SEEKS (YOUR) COMMENT; NATURAL PRODUCTS WEIGH IN
A. The NIH NATIONAL CENTER FOR COMPLEMENTARY AND ALTERNATIVE MEDICINE

has posted its draft strategic plan on its website (http://nccam.gov). The draft will be open to public
comment for a six week period. COMMENT: It would serve all of us in the payment and delivery
community to push for elevated funding for integrated medicine and health services research
grants.
B. A coalition of four natural products groups sent a May 9, 2000 letter to member of Congress
requesting substantial increases in NIH NCCAM funds, from $68 in FY 2000 to $100-million in FY
2001 . The coalition includes CONSUMER HEALTHCARE PRODUCTS ASSOCIATION
(www.chpa-info.org), COUNCIL FOR RESPONSIBLE NUTRITION (www.crnusa.org), NATIONAL
NUTRITIONAL FOODS ASSOCIATION, and the UTAH NATURAL PRODUCTS ALLIANCE . The
group is also requesting a doubling of research funds in the OFFICE OF DIETARY
SUPPLEMENTS, to $10-million. The coalition presents their interest as representing a $12 billion
industry. Targeted were members of the US House and Senate Appropriations Subcommittee in
Health, Labor, Education and Human Services.
3.
BLUE SHIELD CA OFFERS FREE GUIDED IMAGERY PRE-OP TAPES
In one of the most significant moves for inclusion of mind-body programs by a managed care
organization, BLUE SHIELD OF CALIFORNIA has initiated a pre-operative guided imagery
benefit for all of its PPO members who are scheduled for one of 90 surgeries. BSCAs director of
mind-body product development, nurse practitioner DEBORAH SCHWAB, the firms information
system will automatically kick out information members scheduled for surgery to a nurse health
coach manager. The nurse will contact the member, offering the tapes. All but those opposed -very few say no -- will be sent a free guided imagery tape or compact disc to help them in
preparing for their surgery. The program was developed subsequent to a literature review and
recommendations from a multi-disciplinary team involving physicians from UCLA and UCSF. The
team recommended, and BCCA uses, a well-researched 36 minute tape developed by
BELLARUTH NAPARSTEK. [See NEWSFILE XXXX.] In the program, the nurse is also available
should the member have follow-up questions. In a release on the innovative product, BRUCE
BODAKEN, chairman and CEO, stated simply: We are committed to meeting patients needs in
mind body health. This is the second significant mind-body move by the California organization.
An Imagine Health program is a multi-visit offering through certificated guided imagery
specialists approved by the INSTITUTE GUIDED IMAGERY, founded by MARTIN ROSSMAN,
MD. Rossmans group also recommend the Naparstek tapes. Asked about any cost dimension
to the decision, Schwab, who formerly ran the firms Center for Health Enhancement, replied that
the actual program has little cost to it. She added: Well be looking at positive effects on length
of stay and other clinical measures such as impact on medications and complications post
surgery which have been found in some studies. The firm, with 2 million members, plans to
expand to use from the PPO to include Medicare and HMO members. 800-394-3516
4.
YOUR HEALTH INC. PURCHASES ASSETS OF INTEGRATIVE MEDICAL ARTS
YOUR HEALTH, INC., the CAM content supplier for HEALTHEON/WEBMD has struck a deal
with Beaverton, Oregon-based INTEGRATIVE MEDICAL ARTS to purchase the assets of the
firm. IMA, founded by MITCHELL STARGROVE, ND, LAc, is known for its IBIS and Interactions
CAM databases. IBIS is a pioneering product in the field, offering its database to providers since
1992. In the release, Your Health positioned itself as creating the first global platfo9rm to deliver
predictive wellness care solutions to consumers, providers, educators, regulators and payors.
Terms were not disclosed. The purchase came in the wake of the breakdown in Your Healths
planned licensing agreement with PHILIPS PUBLISHING. (See May INTEGRATOR and News
File # .) Philips claimed in legal papers that Your Health failed to make a $10-million payment
toward a $250-million purchase price for Philips CAM and natural products operations.
5.
STUDY LOOKS AT MEDICAID REIMBURSEMENT IN CAM FOR KIDS
A study from the UNIVERSITY OF MICHIGAN HEALTH SYSTEM has found that about a half a
million dollars per state is currently being spent on CAM. The researchers used a phone survey
involving a Medicaid reimbursement specialist in each of 46 states. Chiropractic is covered in 34
states (74%), biofeedback in 10 (22%), acupuncture in seven (15%), hypnosis in 6 (13%),
naturopathy in 5 (11%). In at least two states, alternative providers can serve as an individuals
primary care provider. Five states mean that participation in Early and Periodic Screening,
Diagnosis and Treatment allows access to alternative providers. Seven states expect expanded
coverage in the next three years, with chiropractic, acupuncture and naturopathy the most
common. However, the average amount spent is under $500,000 per fiscal year. Only 5 states
(11%) had more than this amount. The authors suggest that future research should assess the
amount of CAM used by Medicaid patients and their out-of-pocket expenditure, and then look at
the nature or the intervention and quality of care. The study was headed up by DR. TERRENCE
STEYER. Steyer presented the results May 13 at the joint meeting of the Pediatric Academic
Societies and the American Academy of Pediatrics. Steyer plans to continue his research.
Contact: Kara Gavin, kegavin@umich.edu, 734-764-2220; University of Michigan Health System
6.
FEDERATIION OF STATE MEDCAL BOARDS: GUIDELINES ON INTEGRATION
FSMB to form guidelines on integrative care in American Medical News. May 1, 2000. Page 11.
Jay Greene. The FSMB defeated a motion to regulate non-physicians -- including midwives,
chiropractors, acupuncturists as well as physicians assistants and optometrists -- at an April
annual meeting. However, the FSMB has asked its Special Committee on Questionable and
Deceptive Healthcare Practices to develop guidelines to help board deals with issues involving
appropriate care. The FSMB will monitor expanding scopes of practice of PA, NPs and others.
The board in Mississippi requested the FSMB to seriously consider the limits of
paraprofessionals practice of medicine and arrive at standards to be promulgate and distributed.
The FSMB decided that regulation of non-physicians is inconsistent with our mission according
to WILLIAM FLEMING,M MD, FSMBS past president.
7.
LEADERSHIP SOUGHT AT ARIZONA PROGRAM
THE INTEGRATOR was contacted by personnel associated with the PROGRAM IN

INTEGRATIVE MEDICINE at the UNIVERSITY OF ARIZONA with a request to notify News File
readers that the Program is restructuring its leadership positions and is seeking a high level
executive administrator (MD or non-MD) to develop and execute a new administrative structure.
The Program is are also seeking a Physician with clinical and academic experience in Integrative
Medicine who has the enthusiasm and dedication to continue to develop PIM as a center of
excellence in Integrative Medicine. An unconfirmed report from a source close to PIM is that
VICTORIA MAIZES, MD, a former health promotion leader with KAISER PERMANENTE and a
current fellow will become acting administrator for the program. Contact is Michelle Hardin,
mnhardin@ix.netcom.com.
8.
E-HEALTH: ONEBODY/CMPM, IMC/WISNESKI, PLUS NEW PRODUCTS
A. ONEBODY.COM has partnered with the CENTER FOR MIND BODY MEDICINE (CMBM) for
online coverage of CMBM cancer care, according to a May 22 Business Wire release. The
Internet firm had already noted its sponsorship of the annual cancer conference headed by
CMBMs JAMES GORDON, MD. Speaking for Onebody.com, the firms medical director, BRIAN
BOUCH, MD, revealed that the partnership is the first in a series of alliances designed to
promote medically effective treatments for a variety of chronic conditions." Gordons
Comprehensive Cancer Care 2000: Integrating Complementary and Alternative Therapies, will be
held June 9 - 11 in Arlington, Virginia. Those who sign up for the conference through onebody
receive a 10% discount. www.cmbm.org or www.onebody.com.
B. INTEGATIVE MEDICINE COMMUNICATIONS has appointed LEN WISNESKI, MD, as
director of the medical advisory board responsible for the firms research. Wisneski has served
as medical editor of the firms flagship newsletter, Integrative Medicine Consult. He has been
involved in the clinical practice of integrative medicine for the past 25 years. He has held
positions as a medical director of MARRIOTT COPORATION, medical education director at
GEORGE WASHINGTON UNIVERSITY system. He was also medical director with a 24
practitioner AMERICAN WHOLEHEALTH clinic in Bethesda, Maryland. Other board members
include: Kenneth Pelletier, PhD, MD, Stanford University School of Medicine, James Duke, PhD,
Author, The Green Pharmacy, Kathi Kemper, MD, MPH, Children's Hospital, Daniel Redwood,
DC, Redwood Chiropractic and Wellness, and James Dillard, MD, DC, Oxford Health Plans.
C. On May 19, Portland, Oregon-based HEALTHNOTES launched a weekly CAM news service
called Healthnotes Newswire. Editorial director will be MARIANNE BHONSLAY, formerly with
FAIRCHILD PUBLICATIONS. Content each week will include: three articles, one hard news
story, one feature, and one question-and-answer column for consumers by MICHAEL MURRAY,
ND. Distribution will be handled through a content partnership agreement with ISYNDICATE
whose other content providers include CNET, CBS SportsLine, RollingStone.com, and PC World.
D. CONSUMERLAB.COM has reported on 26 brands of vitamin C dietary supplements: 15%
either did not contain all of the claimed ingredient or failed to breakdown as needed for
absorption in the body. Results were no better with the companies which claim to meet US
PARMACOPOEIA standards. Said TOD COOPERMAN, MD, president of ConsumerLab: The
findings raise the question of a false general sense of security among consumers regarding
vitamin C products and USP labeling."
E. MICROMEDEX has introduced a new herbal interactions product, called AltMed-REAX(TM),
an herbal database written for consumers. BARBARA FURHMAN is the product manager for the
complementary and alternative medicine series at MICROMEDEX. The May 23 PR Newswire
release. www.micromedex.com
F. RICHARD LIPPIN, MD, medical director for EARTHMED.COM, reports speaking twice
recently at the national AMERICAN OCCUPATIONAL HEALTH CONFERENCE in Philadelphia.
He finds the specialty less resistant than others to CAM. EARTHMED also recently took a
prominent role in an AARP meeting in Florida. Met May 12-19, AMERICAN COLLEGE OF
O0CCUPATIONAL AND EVIRO0NMENTAL MEDICINE.
9.
MCO AFFINITY PRODUCTS: OKLAHOMA BLUES, TROJAN HORSE STRATEGY
A. On May 19, BLUE CROSS BLUE SHIELD OF OKLAHOMA launched NaturalBlue, a new
affinity product through AMERICAN SPECIALTY HEALTH NETWORKS. Providers will only be
available in the Oklahoma City- and Tulsa-metro areas. Said RODNEY HUEY, BCBSOK
corporate medical director. "Alternative medicine is something our members have been asking
about, and this program gives them access to those services." The products resembles others
offered by ASHN.
B. A discussion of the pros and cons of discount affinity products at the Integrative Medicine
Industry Leadership Summit May 18-20 presented the possibility that affinity programs may will
be a sort of Trojan Horse strategy for moving CAM into covered benefits. Discussant ROBERT
STERN, DC, with ANTHEM HEALTHCARE, laid out the gauntlet of health plan interests and
protectors which must be met prior to initiating any new covered program. The affinity products
were described by others as extremely easy, relatively, to gain approval. Resulting health plan
press releases tend to include strong statements from plan executives regarding the value of
CAM to their members interest in health. Then, once in place, health plans begin to get requests
from employers for actual covered benefits. At least one major player states that every plan with
an affinity program has now come back about developing covered benefits. Many agreed that
moving directly to covered benefits would be a much slower process.
End: NewsFile #57, May 25, 2000
____________________
INDUSTRY/HEALTH NEWS FILE #58, May 30, 2000
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INTEGRATIVE CLINICS: MODERN HEALTHCARE FEATURE, BETH ISRAEL NYC

ACA GAINS TWO APPOINTMENTS
NATUROPATHIC PHYSICIANS: TWO SIGNIFICANT CHANGES
CAM NETWORKS: ASHP DEVELOPMENTS; NETWORK LEADERS IN APPOINTMENTS
AHPA MEMBERSHIP MAY BE INDICATOR FOR NATURAL PRODUCT QUALITY
GLOBAL PERSPECTIVE: SAVINGS FROM CAM? SEEMS TO WORK IN BANGKOK
MISCELLANEOUS: CREDENTIALING WORKSHOP

__________________
1.
INTEGRATIVE CLINICS: MODERN HEALTHCARE FEATURE, BETH ISRAEL NYC
A. The May 15, 2000, issue of Modern Healthcare offers a cover feature entitled: Alternative
Profits: Cashing in on complementary medicine. This report, by ELIZABETH THOMPSON, the
magazines CAM reporter -- while offering little new to INTEGRATOR readers -- provides the
first realistic treatment in the mainstream industry media of the challenges in accessing that
cash. The changes at AMERICAN WHOLEHEALTH and the failure of the CATHOLIC
HEALTHCARE WEST initiative in Phoenix are both described. Providers that start small and
forge physician alliances could tap into rising consumer spending on unconventional therapies is
the stated editorial line. A companion article in the same issue, also by Thompson, looks at some
coverage issues. Thompson reached a number of CAM providers for commentary, including
representatives of the AMERICAN MASSAGE THERAPY ASSOCIATION, the AMERICAN
ACADEMY OF MEDICAL ACUPUNCTURE and BASTYR UNIVERSITY. Repeatedly cited in the
article are LINDA BEDELL LOGAN of SOLUTIONS IN INTEGRATIVE MEDICINE, Chicagobased consultant KEITH SARICH, and THE INTEGRATOR.
B. Thompson, in her Modern Healthcare article on integrative clinics, leads with the title of
ERNEST SCHUMACHERS 1973 book, Small is Beautiful. Bucking this tide is the new 13,000
square foot BETH ISRAEL-CONTINUUM PARTNERS clinic led by WOODSON MERRELL, MD,
th
on 28 and Fifth in downtown Manhattan. The beautifully-appointed clinic will eventually have 10
integrative MDs and eight (8) CAM providers, 2 nurses and 4 medical/practice assistants. They
will work 8 consult rooms, 6 therapy rooms and 8 exam rooms. An undulating design of the
ceiling and to an entrance hallway with a flooring featuring a parquet design with increasingly
large individual sections -- to create the perception of slowing down time -- are among the
Feng Shui-guided touches to transition the typically hyped-up New Yorker patient into the clinics
second floor healing environment. The CENTER FOR HEALTH AND HEALING has already
gained a great deal of exposure. Merrell, with two decades of CAM practice on Manhattans
pricey Upper East Side, was selected as one of the top 50 New Yorkers of 1999 by New York
magazine. Merrell will split his time between his historic practice and the Beth Israel site.
Construction delays pushed a planned May 15 opening until sometime in June or July. Provider
salaries will be incentivized, but will start with a hospital guarantee based on 1999 income,
Merrell told THE INTEGRATOR. His clinical and economic strategy is to bring in providers who,
like himself, who already have busy practices. The clinic is a university hospital for ALBERT
EINSTEIN COLLEGE OF MEDICINE. Securing the deal, thus far, has been Merrells magic
touch with fund-raising. Hes raised over $7-million, to not only cover capital costs but also
underwriting a planned three year schedule toward break-even. Among the other medical
clinicians are BEN KLIGER, MD, a leader with the CAM effort inside the SOCIETY OF
TEACHERS OF FAMILY MEDICINE, and LEWIS MEHL MADRONA, MD, an author-lecturer and
long-time CAM player who was most recently with the integrative medicine program at the
UNIVERSITY OF PITTSBURGH HEALTH CARE. Manager is BARBARA GLICKSTEIN, RN.
Many view the Beth Israel initiative as the gemstone in the integrative medicine movement. 212387-6800
2.
ACA GAINS TWO APPOINTMENTS
A. The AMERICAN CHIROPRACTIC ASSOCIATION announced on May 11 what to them was

a successful conclusion to an eight year effort: WILLIAM MORGAN, DC, will begin practicing in
the health care offices of the nations Capitol. The work was initiated by JEROME
MCANDRREWS, DC, when he was head of professional affairs for the ACA. McAndrews is an
INTEGRATOR advisor. Morgan was active in the DEPARTMENT OF DEFENSE
CHIROPRACTIC MILITARY DEMONSTRATION PROJECT. (800) 986-4636
B. For the first time, following extensive lobbying from the ACA, MILLIMAN AND ROBERTSON
has agreed to but an ACA clinical advisor on the firms guidelines assessment team. M&R is well
known for its controversial hospital stay guidelines. The appointment grew out of complaints to
the ACA from Ohio chiropractors and was negotiated by PAT JACKSON who heads professional
affairs for the ACA.
3.
NATUROPATHIC PHYSICIANS: TWO SIGNIFICANT CHANGES
A. The board of directors of the AMERICAN ASSOCIATION OF NATUROPATHIC PHYSICIANS

(AANP) has elected to move the associations headquarters to Washington, DC, from Seattle,
Washington, where it has been headquartered since 1989. The move is anticipated to take place
as early as July 2000. The AANP board, led by Helena, Montana practitioner NANCY AAGENES,
ND, LAC, also selected a management strategy in which Beltway-based ASSOCIATION
MANAGEMENT GROUP will handle AANP activities through a four person team. The executive
director for AANP business will be jointly selected by the two organizations. The AANP, founded
in 1986, has led the internal standard setting in the naturopathic profession. 206-298-0126
www.naturopathic.org
B. A challenge based on an obscure technicality in the US DEPARTMENT OF EDUCATION
regulations on accrediting bodies may remove the gatekeeper status from the COUNCIL ON
NATUROPATHIC MEDICAL EDUCATION (CNME). CNME, recognized by the DOE since 1987,
has been under attack by individuals and organizations which stand to lose if the naturopathic
medical profession, led by the AANP, continues to expand licensing. The opponents of the AANP
and CNME, are led by CLAYTON SCHOOL in Alabama, which offers a mail-order program to get
a certificate as a Doctor of Naturopathy. Clayton certificates are meaningless in states where
the profession is regulated. The AANP has taken a public position that while loss of recognition is
being formally being challenged, the DoEs ultimate decision will not be crucial for the
organization since all of the four naturopathic schools also have candidate or formal accreditation
status through DOE-recognized regional accrediting bodies.
4.
CAM NETWORKS: ASHP DEVELOPMENTS; NETWORK LEADERS IN APPOINTMENTS
A. A corporate letter to selected industry members from San Diego-based AMERICAN

SPECIALTY HEALTH PLANS provides useful information on the single largest economic force in
the CAM network industry and one of the most powerful influencers of CAM coverage trends.
-- The firm has officially changed its name to AMERICAN SPECIALTY HEALTH, INC.
-- Data points: $75.6 million in 1999 revenues, up from $70-million in 1998. The figure is
somewhat off the $80-million projection in the INTEGRATOR benchmarking survey.
-- 24-million plus lives, with 10-million new -- mostly affinity -- added in the 7/99-7/00 period:
5.2 million are managed benefits, 7.0 million unmanaged network access and 16.5 million
discount.
-- The firms Internet/catalog mail-order programs now reach 14 million.
-- Roughly 20 health plan clients will have been added between 7/99 and 7/00, bringing the firms
total to about 50 nationwide.
-- Total employment is over 500. (Note: As a reference, this figure roughly doubles the total
employees in all the other CAM networks combined, according to INTEGRATOR benchmarking
data.)
-- The firm has begun piloting an extranet program with providers at an East Coast health plan.
(THE INTEGRATOR will take a look at this extranet service for an upcoming Newsfile.
B. Two appointments of note to the industry: CHUCK SIMPSON, DC, a co-founder and clinical
director for chiropractic for COMPLEMENTARY HEALTHCARE PLANS, has been chosen to
serve on the medical advisors committee for the AMERICAN ASSOCIATION OF PREFERRED
PROVIDER ASSOCIATIONS; and DOUG METZ, DC, vice president of health services for
American Specialty Health is a member of the Standards Committee for the AMERICAN
ACCREDITATION HEALTH CARE COMMISSION/URAC.
C. CLYDE JENSON, PHD, president of NATIONAL COLLEGE OF NATUROPATHIC
MEDICINE, has been appointed to a board position with Complementary Healthcare Plans. Both
organizations are based in Portland, Oregon. Jenson, a strong promoter of collaborative
pathways to advancement, is the only individual to have served as president or in a senior
executive position at schools of osteopathic, allopathic and naturopathic medicine. A May 1,
2000, release from CHP, includes a statement from Jenson that he views the position as
intriguing for the synergies possible between (CHP) and NCNM and its affiliates. (Note:
JAMES WINTERSTEIN, DC, president of NATIONAL COLLEGE OF CHIROPRACTIC
MEDICINE, is precedes Jenson as a CAM college president on a CAM network board.
Winterstein is a board member of Chicago-based ALTERNATIVE MEDICINE, INC.
5.
AHPA MEMBERSHIP MAY BE INDICATOR FOR NATURAL PRODUCT QUALITY
This brief provides support for one possible credentialing standard for botanical suppliers:
member in AMERICAN HERBALS PRODUCTS ASSOCIATION (AHPA), the leading industry
association. For 15 years, AHPA the worked to create and self-regulate on quality standards and
ethics guidelines in that industry. A recent journal article which was critical of manufacturers of
ephedra-containing supplements provoked AHPA to explore how its member firms compared to
other firms. AHPA found that 100% of its members were above the 80% of label claim guideline.
In a May 19 PR Newswire account, AHPA stated: All of the AHPA manufactured products were
found to be well within this legal range. The journal article, by WILLIAM GURLEY of the
COLLEGE OF PHARMACY at the University of Arkansas for Medical Sciences and is due to be
published in the May, 2000 issue of the American Journal of Health-System Pharmacy.
6.
GLOBAL PERSPECTIVE: SAVINGS FROM CAM? SEEMS TO WORK IN BANGKOK
A report in the Bangkok Post (April 3, 2000; Source: World Reporter (TM) Asia Intelligence
Wire) states that the use of herbal drugs is saving money and helping local incomes. A 20 year
old program in herbal medicines is now earning up to 849,000 baht of sales each year, over half
to other hospitals. A quarter of the returns go to villagers who grow the herbs which are turned
into 33 types of ointments. Use of herbs has reduced dependence on Western medicines by 15%
according to DR YUTHAPON SRIMONGKUL, hospital director at WANG NAM YEN HOSPITAL.
Use of herb s began in 1992 when traditional healing was not well accepted in the field of
modern medicine. 94 million baht total spent on drugs). The herbs were recently added to the
governments list of approved drugs. The program began as a way to get medicines to people
who were distant from Western treatment, but "currently most patients, particularly those seeking
treatment for things like muscular pain, backache and digestive problems, are asked whether
they want to try a herbal medicine before they are treated with modern medicine. 15% of the
patients treated at the hospital permanently opt for traditional medicine. Massage is noted as
the most popular. 15 other hospitals are now using herbs. Traditional healers, though not
recognized by law, reportedly work routinely with hospital staff. Now 75% of the residents in the
province grow herbs which they sell to hospitals.
7.
MISCELLANEOUS: CREDENTIALING WORKSHOP
A. THE GREELEY CO, a credentialing verification organization, is offering a two-day seminar

entitled Credentialing and Privileging for Alternative/Complementary and Allied Health
Professionals. October 19-20, 2000. Chicago, Illinois. Contact: Tara Thompson: 800.738.1553
B. The AMERICAN BAR ASSOCIATION has established a new Committee on Complementary
and Alternative Medicine Law. MICHELE FORZLEY, JD, chair, is working on an ABA CAM
program scheduled for 2001. Forzley, who is in the process of developing her own business
website at www.alternativemedicinelaw.com, edits the ABAs International Health Law News. The
committee is a subcommittee of the ABA International Health Law Committee. 781-334-0031, or
mforzley@tiac.net
C. In a meeting notice on its AMERICAN OCCUPATIONAL HEALTH CONFERENCE in
Philadelphia, May 12-19, the AMERICAN COLLEGE OF OCCUPATIONAL AND
ENVIRONMENTAL MEDICINE proudly noted that its 1994 day-long session on CAM was the
first for any specialty group. The organizations subsequent publication of an official position
paper was also a first. www.acoem.org
D. Yet another significant shift in business for COMPLETE WELLNESS CENTERS (CMWL) is
evident in the firms first quarter reports. The firm now has just 40 active, contracted centers,
down from 81 a year ago. Net losses were at ($397,000) on $2,319,000 of revenues, versus
($51,000) on $4,580,000 a year earlier. The firm originally reported profitability in the first quarter
of 1999. A release from the firm states that discontinuation of the relationship with the clinics
requires additional provision for bad debts and adjustments to fees accrued for the management
of the exiting clinic. www.completewellness.com
E. Applications of HEARTMATH in the corporate environment is prominently featured in the
May 2000 issue of TRAINING MAGAZINE. Some employers are successfully measuring a pay-
off. Information on HeartMath is available at www.heartmath.com/. A direct link to the article: is

http://www.trainingsupersite.com/publications/magazines/training/005cv.htm
End: I/H News File #58, May 30, 2000
__________________________
INDUSTRY/HEALTH NEWS FILE #59, June 6, 2000
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8.
CORRECTION: $5 MILLION/YEAR NCCAM INTEGRATED MEDICINE FUNDS

HIGHMARK/ORNISH NATIONAL ROLLOUT: NATIONAL DIRECTOR NEEDED
EMPLOYERS: TWO CAM BENEFITS; DEFINED CONTRIBUTIONS, PLUS
CONSUMERS: ANESTHEIOLOGISTS CONCERN ABOUT SUPPLEMENTS
GOVERNMENT ACTION: CHIRO IN STATE SCHOOL, TENN ACU LICENSE
VALUE OF INTEGRATIVE STRATEGIES IN PEDIATRIC PAIN, IRRITABLE BOWEL
HMO/CAM AFFINITY PRODUCTS: PCW/ASHN, ANTHEM, BCBSMI/LANDMARK
MISCELLANEOUS: BURTON/CANCER, HEALTHGATE/INTEGRATIVMEDICINE

__________________
1.
CORRECTION: $5 MILLION/YEAR NCCAM INTEGRATED MEDICINE FUNDS
A recent News File reported that the NIH NATIONAL CENTER FOR COMPLEMENTARY AND
ALTERNATIVE MEDICINE was issuing its first Integrated Medicine grants. Information on the
concept paper for this grant was handed out to attendees of the INDUSTRY/HEALTH breakfast
in April at the NMHCC with a note that the total was just $500,000 a year, or 7/10 or 1% of
NCCAMs $70-million. A recent meeting with NCCAM advisory member KONRAD KAIL, ND,
informed me that some ambiguous language in the concept paper is to be understood that
$500,000 PER PROJECT PER YEAR, rather than for all projects, will be available. For those
wishing to see the ambiguity, the statement read: Seven to ten projects costing, on average,
$500,000, total, per year for up to four years. With EACH project at $500,000 per year, the total
could run to $5 million each year. ANITA GREEN, communications officer for NCCAM, confirmed
the $5 million as NCCAMs meaning. So, my sincere apologies -- and get to work on your grant
writing! Information at: http://nccam.nih.gov/nccam/fi/concepts/jan2000/integrated.html -- JW
2.
HIGHMARK/ORNISH NATIONAL ROLLOUT: NATIONAL DIRECTOR NEEDED
HIGHMARK BLUE CROSS BLUE SHIELD, the only insurer who not only covers but offers the
program developed by DEAN ORNISH, MD, for reversing coronary artery disease, has linked
with Ornishs business arm, Sausalito, California-based PREVENTIVE MEDICINE RESEARCH
INSTITUTE, to create a new business. The new firm, LIFESTYLE ADVANTAGE, will promote
the Ornish programs nationwide. The unusual business alliance, which is expected to be formally
announced later this month will be headed by ANNA SILBERMAN, the Highmark vice president
who has been responsible for developing the Ornish offering inside of the Highmark system.
Highmark estimates that the insurer saves $16,000 one every individual who uses the program.
(See report in the March INTEGRATOR.) Silberman, a discussant at the recent Integrative
Medicine Industry Leadership Summit co-hosted by THE INTEGRATOR, shared the new firms
need for a national marketing director to market and sell the Ornish program to both health care
organizations and payers nationwide. 412-544-5221
3.
EMPLOYERS: TWO CAM BENEFITS; DEFINED CONTRIBUTIONS, PLUS
A. EMPLOYEE BENEFIT NEWS April 15, 2000 feature on CAM benefits portrays benefits from
two Arizona employers. Each strongly support their CAM products. MESA CITY offers, for the
past 10 years, a self-administered plan with direct access to practitioners of acupuncture,
chiropractic, naturopathy, homeopathy and massage therapy. Benefits coordinator DONNA
SALEMI is quoted as stating that the employees really like our plan and that premiums have not
been raised for 8 years. She views the plan as a recruiting tool. At YAVAPAI COLLEGE, a
Naturopathic Plan for students at YAVAPAI COLLEGE in Prescott offers a $600 lump sum
which can be used for discounted services in a similar range of CAM services. RANDY GLAZER,
human resources director notes that faced with recent choices aimed at cost cutting, one of which
was diminished CAM services, Glazer states that the response was overwhelming: Dont touch
my naturopathic plan.
B.
E-SURVEY: QUICK MOVE TO DEFINED BENEFITS ANTICIPATED
Many CAM leaders believe that CAM will become more available as a covered benefit under
defined contributions. An INTEGRATOR report on the topic will run in the July-August issue.
MANAGED CARE ONLINE (www.mcol.com) released on May 23, 2000, preliminary findings of
an online Defined Care Survey which casts light on perspectives about how quickly the system
will move toward Defined Care -- the health care system which will emerge following
expansion of Defined Contributions by employers. Under defined contributions, employees are
anticipated to have much broader choice of plans, through information posted on the Internet.
Most visitors to the MCOL site believed that Defined Care will be adopted more quickly than
industry experts are predicting (64% believe less than five years), and employers are the most
optimistic sector and eager for adoption. Roughly 80% of the respondents believe that
managed care will play a continuing important role in Defined Care. The number was 100% for
employers. Interestingly, 100% of the employers believe that the entire health care system will
change as defined contributions become more widespread, while only 57% of all respondents
(including employers) agree. The total numbers in the survey were not disclosed, implying small
numbers. Only 5.7% represented employers. www.definedcare.com to view the results or be
surveyed.
C.
NEW E-HEALTH BENEFITS FIRM IN HEALTHECARE.COM SPACE
News File #55 featured the new Internet-based benefit scheme, with an apparently strong CAM
component, HEALTHECARE.COM. A second Minneapolis-based e-health start-up which is in
the same niche is VIVIUS.COM. The firm plans its first pilot in Kansas City starting September 1,
2000. The firm has secured $11.5-million in investments. According to a May 15, 2000, article in
American Medical News, which also looked at Healthecare.com, the firm will ask employees to
pick their own providers and build their own health care system. The business models for both
e-businesses are based on a percentage of the fees to providers. While Healtyhecare.com
announced its business with reference to CAM, Vivius was quiet on the subject. Contacted by
THE INTEGRATOR, the firms medical director, LEE NEWCOMER, MD, stated: Our customers
could use the funds in their healthcare spending account to pay for alternative medicine
treatments if they desire.
D.
INTERNET TO BE USED INCREASINGLY BY EMPLOYERS
A recent survey from benefits consultant WATSON WYATT WORLDWIDE, reported in American
Hospital News (May 26, 2000), found that 63% of survey respondents said they plan to make
greater use of the Internet to help cut costs. Roughly a third (32%) said they would cut costs an
old fashioned way: offering employers fewer health plans. The employers believe that while they
are assisting they are increasingly asking their employees to share administrative responsibility,
they are trying to provide support in navigating the system: 74% said they help their employees
navigate the health care delivery system, 72% provide a benefits comparison of plans offered,
and 51% provide decision support.
4.
CONSUMERS: ANESTHEIOLOGISTS CONCERN ABOUT SUPPLEMENTS
A report to be presented at the WORLD CONGRESS ON ANESTHESIOLOGY revealed that

seven in 10 surgery patients who were taking herbal supplements failed to tell their doctors when
asked. The report was led by ALAN KAYE of TEXAS TECH UNIVERSITY SCHOOL OF
MEDICINE and invovled 752 patients. The researchers raise concerns over contra-indications
and adverse effects, pointing to the possibility to bleed to death, have a lethal arrhythmia
or a stroke because they don't know the importance of these things,'' in Kayes words. The study
was reported in the May 30, 2000, issue of USA Today. ''We can't tell people to stop taking
them,'' Kaye colleague Raj Sabar says. If you want to take them, that's your choice, but we
should be told.'' The American Society of Anesthesiologists has taken a stronger position. The
professional organization recommends that patients stop taking herbal supplements two to three
weeks before surgery.
5.
GOVERNMENT ACTION: CHIRO IN STATE SCHOOL, TENN ACU LICENSE
A. The COLLEGE OF HEALTH AND HUMAN SCIENCES at FLORIDA STATE UNIVERSITY

plans to offer a chiropractic medicine program beginning in the fall semester of 2001. A $1million appropriation by the legislature underwrites the program, which will have up to 100 first
year students. Enrollment at the program will be capped at 500. This fund follows a $2-million
endowment of funds from the LINCOLN CHIROPRACTIC COLLEGE EDUCATIONAL
FOUNDATION and the FLORIDA CHIROPRACTIC ASSOCIATION which underwrites a chair in
chiropractic and biomechanical research. Supporters view the new program as an exceptional
opportunity to become a major center for chiropractic research. Primary backer of the initiative is
representative DENNIS JONES, DC, speaker pro tem of the Florida House. Term limits force
Jones to step down this year.
B. On May 9, 2000, Tennessee governor DON SUNDQUIST signed into law licensing for
acupuncturists in his state. The legislation is heralded as a breakthrough legislative approach by
supporters of recognition of acupuncture detoxification specialists (ADSes). ADSes are typically
non-acupuncturists who are addiction professionals who learn a limited ear needling protocol.
The AMERICAN ASSO0CIATION OF ORIENTAL MEDICINE has opposed this separate category
while the NATIONAL ACUPUNCTURE AND ORIENTIAL MEDICINE ALLIANCE has supported
this recognition. The Tennessee law expressly includes a sublicensing category for ADSes.
Source: Guidepoints: Acupuncture in Recovery, May 2000.
6.
VALUE OF INTEGRATIVE STRATEGIES IN PEDIATRIC PAIN, IRRITABLE BOWEL
Two recent editions of the weekly IntegrativMedicine Alert from INTEGRATIVE MEDICINE
COMMUNICATIONS have highlighted new clinical research which supports integrative
approaches. One looked at integrative approaches to PEDIATRIC, finding that bringing
alternative and pharmacological approaches together to manage pain in children can reduce
the need for medication. Therapies include ,mind-body therapies and physical therapies,
including acupuncture. (Source: Rusy LM, Weisman SJ. Complementary therapies for acute
pediatric pain management. Pediatr Clin North Am. 2000;47(3):589-599.) The irritable bowel
study looked at medical treatment alone versus medical plus various behavioral therapies:
Combination-therapy patients showed a stable and significant reduction of IBS symptoms and an
increase in overall well-being compared with the standard medical treatment alone. (Source:
Heymann-Mnnikes I, Arnold R, Florin I, Herda C, Melfsen S, Mnnikes H. The combination of
medical treatment plus multicomponent behavioral therapy is superior to medical treatment alone
in the therapy of irritable bowel syndrome. Am J Gastroenterol. 2000;95(4):981-994.) The Alert
electronic newsletter is free. Source: INTEGRATIVE MEDICINE COMMUNICATIONS
(onemedicine.com)
7.
HMO/CAM AFFINITY PRODUCTS: PCW/ASHN, ANTHEM, BCBSMI/LANDMARK
A. PACIFICARE OF WASHINGTON has inked a deal with AMERICAN SPECIALTY HEALTH

NETWORKS under which the firm will utilize ASHNs acupuncture, massage and acupuncture
networks in Washington state according to an ASHN June 1 release on BW Healthwire.
Pacificare, which must comply with the states 1995 every category of provider mandate, had
originally responded through development of a limited, internal network of CAM providers. PCW
offers managed care plans to more than 150,000 state and federal employees, employer group
sponsored members and Medicare beneficiaries in 10 counties in the state. For ASHN contact
Kristin Harms at 800/848-3555.
B. On May 30, Indianapolis-based ANTHEM BLUE CROSS AND BLUE SHIELD finally
announced its new CAM offering through AMERICAN WHOLEHEALTH and the firms majorityowned subsidiary WHOLEHEALTHMD.COM. The product, called Complementary Blue, is
positioned as an internet-based program which gives Anthems 6 million members access to
information about a variety of complementary and alternative medicine products and services.
Anthem calls it one of the first of several new e-business capabilities the company is introducing
to its members, providers and employer groups. The program will be available to all Anthem
members, but on an individual basis. Plans in Connecticut, Ohio and Indiana will initiate use in
late June. CAM networks of CAM providers are part of the product in some states and are will be
developed in others. ROBERT STERN, DC, the firms medical director for CAM, positions the
products as an extension of our other health and wellness programs.
C. BCBS MICHIGAN kicked off its CAM discount, through LANDMARK HEALTHCARE and
MOTHERNATURE.COM with a June 1 release. The product, noted here in the XXX New File, is
positioned by the plans corporate medical director THOMAS SIMMER as all about choice: "At
Blue Cross Blue Shield of Michigan, choice is really important. We are very happy to expand the
range of choices for our members." Simmer called it essential that members discuss use of
complementary treatments with their physicians, especially in cases of known medical
conditions. The firm was not clear on its strategy for ensuring communication in this noncovered product. Landmark positions its firm as serving more than 10 million members
nationwide. For the Blues plan, 313-225-8113.
8.
MISCELLANEOUS: BURTON/CANCER, HEALTHGATE/INTEGRATIVMEDICINE
A.
CONGRESSIONAL COMMITTEE CANCER HEARINGS LOOK AT REIMBURSEMENT
DAN BURTON (R-IN) announced on June 2 that his CONGRESSIONAL REFORM COMMITTEE
will hold hearings on Cancer Care for the New Millenium June 7-8. The hearings will focus on
pediatric cancers, racial disparity in cancer treatments, and reimbursement issues related to CAM
in an oncology setting, and natural product drug development using natural products.
Represented in a panel on Integrative Oncology - A Public Perspective on the first day will be
some patients, plus representatives of GEFFEN CANCER CENTER, CANCER TREATMENT
CENTERS OF AMERICA and AMERICAN SPECIALTY HEALTH PLANS.
B. The information from 300 medical journals supplied by HEALTHGATE DATA CORP. to
hospitals and health systems, and through its www.healthgate.com website, will soon be
supplemented with CAM information from Newton, Massachusetts-based

INTEGRATIVMEDICINE according to a June 1 release from the firm. Healthgate, which positions
itself as a leading provider of quality e-Health Internet solutions for hospitals and enterprises,
seeks to work with hospitals to increase the interactivity of their websites and create e-health
communities by developing closer relationships between their constituents. Among the clients
for the firms materials, which includes BLACKWELL SCIENCE, LTD, is FSPNETWORK. The
firm describes IntegrativMedicines database as incorporating information for more than 630
conventional drugs--integrated with information about their herb and supplement interactions and
nutrient depletions -- supplemented by weekly, scientific news feed and automatic updates.
Contact Gary Abrahams at 781-685-4000.
End, New File #59, June 5, 2000
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INDUSTRY/HEALTH NEWS FILE #60, June 14, 2000
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CALIFORNIA ACUPUNCTURIST LEADERS MOVE TO FORM UNION

INPATIENT INTEGRATION: PUBLIC HEALTH/ACUPUNCTURE, CAM/OPEN HEART
INTEGRATIVE CLINICS: NEW DATA, IOWA SYSTEM, MEMORIAL SLOAN KETTERING
ONEBODY.COM ANNOUNCES $10,000 PRACTITIONER GRANT PROGRAM
CAM MALPRACTICE PROVIDERS: FINANCIAL DIFFICULTIES?
CAM E-HEALTH NEWS: MOTHERNATURE/B2B, BRAINYBRAWN/VISTA, PLUS
MISCELLANEOUS: SOCIOMETIRCS/CA,M DATABASE, ALTERNATIVELINK/SCANLAN

VACATION MESSAGE: I will be out of the office and away from work from June 19-July 4 on a
family vacation. I will NOT be looking at e-mail or listening to voicemail. I/H #61 well me mailed
after my return. Enjoy the remainder of June! -- John Weeks
__________________
1.
CALIFORNIA ACUPUNCTURIST LEADERS MOVE TO FORM UNION
California is known for the minute divisions between its myriad acupuncture organizations. On
June 2, leaders of 25 of the states acupuncture organizations agreed on one thing: together they
approved a set of bylaws and created the NATIONAL GUILD FOR ACUPUNCTURE AND
ORIENTAL MEDICINE. The focus of the effort is to gain clout both with managed are
organizations and with legislators. Organizers believe they have a chance to sign up a high
percentage of the states 7,000 acupuncturists, and a like number from across the country.
Source: June 8, 2000, San Francisco Chronicle. Among the leaders I LLOYD WRIGHT, LAC, a
Palo Alto-based practitioner, who reportedly states: ``Insurance companies are telling these guys
how to practice medicine, and cutting their fees to unmanageable levels. Maybe medicine had
some fat to cut in the 1980s, but acupuncture has no fat to cut whatsoever. BOBBY PENA, a
spokesman for the CALIFORNIA ASSOCIATION OF HEALTH PLANS is quoted as stating that
15 of the organizations 36 members (41%) offer some acupuncture coverage, while some others
offer discounts. The goal initially is not collective bargaining but a higher profile in dealing with
legislators and managed care companies. The acupuncturists also believe that the formation of
the union may give them greater access to the AFL-CIOs 13 million members. GEORGE
WEDEMEYER, an acupuncture activist from San Francisco who is active in his own union who
has led organizing to push that citys mainstream delivery system toward including acupuncture
has been a principal in the campaign. His goals are lofty: ``What we want to do now is get
federal employees covered for acupuncture, and then we'll be going after Medicare.'' ALAN
ELNICH, an organizer with the OFFICE AND PROFESSIONAL EMPLOYEES INTERNATIONAL
UNION is taking a leading role in setting up the union. Podiatrists and social workers have earlier
formed guild relationships with Elnichs union. President of the hew Guild is Torrance, Californiabased TED PRIEBE, LAc. Dues will reportedly be around $90.
2.
INPATIENT INTEGRATION: PUBLIC HEALTH/ACUPUNCTURE, CAM/OPEN HEART
A.
SAN FRANCISCO PUBLIC HEALTH AND ACUPUNCTURE: INPATIENT ADVANCES
A March report of the Integrative Therapies Committee of the COMMUNITY HEALTH NETWORK
OF SAN FANCISCO notes that five medical doctor physicians have been granted privileges at
SAN FRANCISCO GENERAL HOSPITAL. These physicians are providing acupuncture care to
inpatients on an acute care basis. CHN has also credentialed licensed acupuncturists to provide
services, through federal RYAN WHITE funds, at tow community clinics. The Committee
recommends that licensed acupuncturists, should be considered for hiring, or contracting, for
DEPARTMENT OF HEALTH positions. These licensed providers would be able to deliver acute,
inpatient care under direction of physicians, in the Committee recommendation. As with many
start-up programs, services are limited to acupuncture: the Committee recommends against
moxibustion, cupping, scraping and herbal medicine. However, the Committee also recommends
that no limits be place on the type of condition treated. The Committee acknowledges that the
move into inpatient services is breaking new ground and gives rise to numerous complexities.
Information was made available to THE INTEGRATOR by GEORGE WEDEMEYER, vice
president for legislative affairs with the AMERICAN FEDERATION OF GOVERNMENT
EMPLOYEES/AFL-CIO, Local 2391. For Wedemeyer: 415-744-5590, x 239. For CHN, contact
MELISSA WELCH, MD, CHNs chief medical officer, at 415-206-2376.
B.
CEDARS-SINAI STUDIES CAM COMPLEMENTS TO OPEN HEART SURGERY
The movement of complementary therapies into hospital delivery may get a boost from new
studies at Los Angeles-based CEDARS-SINAI. Cardiothoracic surgeon GREGORY FONTANA,
MD, is heading up three pilot studies which will evaluate the effects of acupuncture, massage
therapy, and guided imagery on stress and pain in patients after open-heart surgery. A chief
outcome will be patient satisfaction. The studies on acupuncture and massage therapy are
reportedly in the final stages, while the study on guided imagery is now underway. Cedars-Sinai
has a small CAM clinic led by MARY HARDY, MD. (See May 2000 INTEGRATOR.)
3.
INTEGRATIVE CLINICS: NEW DATA, IOWA SYSTEM, MEMORIAL SLOAN KETTERING
A.
CLINIC BUSINESS DATA TO BE POSTED
Outcomes of a Business Model Survey for Integrative/Complementary/Alternative Practices is

expected to be web-posted later this month. The survey organizers are attorney MICHELE
FORZLEY (781-334-0031) and licensed psychologist LYNN CAESAR, PhD. Forzley heads the
nascent AMERICAN BAR ASSOCIATION CAM group. The project is being coordinated through
an unusual local associated called THE INTGRATED MEDICINE NETWORK, a communication
forum for diverse integrative medicine interests in the Boston/Cambridge area. The results of the
16 question survey will be summarized and presented at the monthly meeting of the IMN on June
21, 2000 at 7:30am at the MARINO CENTER and posted at www.marinocenter.org/imn.htm and at
Forzleys site, www.alternativemedicinelaw.com within a few days of the presentation.
B.
METHODIST AND LUTHERAN SYSTEM: IOWA CLINIC
The CENTER FOR HEALTH AND WELLBEING is the name of the West DesMoines, Iowa-based
integrative clinic that is part of the IOWA METHODIST MEDICAL CENTER and IOWA LUTHERN
HOSPITAL systems. Therapies include acupuncture, relaxation, massage, movement therapies,
visualization and herbs are among the 26 distinct CAM services provided.. Prevention,
individualization and patient involvement are emphasized, according to a clinic brochure provided
THE INTEGRATOR by SHEILA REGAN, BSN, MA, the clinics administrative director. GEORGE
DRAKE, MD, is medical director. Both cash and third party payments are accepted. As it true
with a significant percentage of health system, facilities, chiropractic is not included. 515-4406246
C. The integrative program at MEMORIAL SLOAN KETTERING CANCER CENTER, founded
in the spring of 1999, now offers CAM services in three locations. A minimalist inpatient offering
is music and art therapy, offered to all cancer inpatients at no additional charge at MEMORIAL
HOSPITAL The site of most chemotherapy treatments, the systems ROCKEFELLER
OUTPATIENT PAVILION, gives patients and their families access to a broader array of
treatments, including: meditation, massage, relaxation and guided imagery, all paid by the
patients. The systems new INTEGRATIVE MEDICINE OUTPATIENT CENTRE, opened last
November, includes diverse classes in such therapies as Tai Chi, yoga, chanting and
acupuncture. The class sessions run $10. Director of the program is author-researcher BARRIE
CASSILETH, PhD. Source: If CAM can make it there, by Eleanor Berman, April 17, 2000,
Onebody.com.
D.
COUNTRY DOCTOR CLINIC: NO FUNDING FOR NATUROPATHIC PHYSICIAN
WILLIAM WULSIN, ND, LAC, a naturopathic physician, acupuncturist and past clinical faculty
member at BASTYR UNIVERSITY, has resigned his long-time volunteer clinical position with
Seattles COUNTRY DOCTOR COMMUNITY HEALTH CENTERS. Funds to sustain his work
were not prioritized by the public health network, according to Wulsin, a long time pot-smoking
and sing-along buddy of INTEGRATOR publisher-editor John Weeks. 206-461-4503
4.
ONEBODY.COM ANNOUNCES UNUSUAL PRACTITIONER GRANT PROGRAM
ONEBODY.COM, the website sibling organization to CONSENSUS HEALTH has created an

annual $10,000 fund which will be granted, in $2,500 increments, to projects from providers or
organizations which aid in the development of a stronger sense of community among, and
improved visibility for, CAM practitioners. Specific interest areas include: defining quality of care
standards; methods for educating consumers or allopathic providers about CAM; plans for
continuing education opportunities; and projects which build relationships between providers in a
given specialty, or between specialties. The latter focuses on under-server regions. The funds,
while small, may be viewed as quite helpful for frequently cash-strapped CAM practitioners and
their organizations. Proposals must be received by June 30, 2000, with grants awarded August
1, 2000. For information, check under Issues and Advocacy at Onebody.com.
5.
CAM MALPRACTICE PROVIDERS: FINANCIAL DIFFICULTIES?
A May 26, 2000, release from A.M. BEST CO. announced a downgrading of "the group financial
strength of Mechanicsburg, Pennsylvania-based PHICO INSURANCE." The move is of some
interest to the CAM community as PHICO picked up the contract with the INTERNATIONAL
CHIROPRACTORS ASSOCIATION after another insurer, FRONTIER, was also downgraded and
has notified its chiropractic policyholders it will not continue to write chiropractic malpractice
coverage, according to an industry source. LOU SPORTELLI, president of NCMIC Insurance
Company, contacted for comment notes that the malpractice market has been "soft" for the past
7-8 years as many new firms have moved into the field through offering lower rates. Sportelli
foresees potential problems for an array of non-chiropractic CAM providers whose first encounter
with malpractice coverage may be coinciding with this uncertain decade: "CAM type providers
need to be alerted that 'if it sounds too good to be true it probably is."
6.
CAM NETWORKS: ASHP/ELEMENTS, AWHN CLIENTS, CHP/IDAHO NETWORK
A. ASHP (www.americanspecialtyhp.com) has a business link to ELEMENTSWELLNESS, the

Petaluma, California-based firm which takes a strong position that health plans should only be
providing medical coverage in the context of wellness and health promotion benefits. Under
Industry Links and then Partners Financial Insurance Services, one connects to
www.elementswellness.com, the web site of the unusual employer-oriented benefits firm. (See
News File # .)
B. A list of client contracts of AMERICAN WHOLEHEALTH NETWORKS is available through
the firms new affiliated internet site: WHOLEHEALTHPRO.COM. The firm claims that its
providers can connect to 25 million customers of our commerce partners through
WholeHealthPro. The 26 commercial clients include its own web clients via
WHOLEPEOPLE.COM. The list is at www.wholehealthpro.com/ClientList.htm.
WholeHealthPro.com, headed up by BILL LUBIN and MICHAEL CRONIN, ND, is the firms new
business-to-business (B2B) internet site.
C. Portland, Oregon-based COMPLEMENTARY HEALTHCARE PLANS has made a significant
move into a neighboring state to the east by acquiring IDAHO CHIROPRACTIC PHYSICIANS
NETWORK. The move is part of an expansion which will eventually include Washington state,
according to an early June company release. Two former principals with ICPN, DAVID PRICE,
DC, and JAMES KRANZ, DC, will head up the network in that state.
6.
CAM E-HEALTH NEWS: MOTHERNATURE/B2B, BRAINYBRAWN/VISTA, PLUS
A. The nearly disastrous decline in valuation of stock at MOTHERNATURE.COM, plus the

intense competition in the online natural product sales arena, has pushed the 1995 business-toconsumer e-tailer more strongly into the business-to-business arena according to an
INTEGRATOR interview with director of business development ADAM SOROCA. Soroca says
that the firms mission is to operate our consumer business as is, with the lowest customer
acquisition costs, with our incremental costs being spent on other channels. The move,
announced in late April, now includes two B2B channels: Wellness Advisor Network, targeting
individual provider partners, and a new channel targeting retailers. The logic: Most retailers can
only stock 3,000 products and weve got 14,000. This can extend their service. In another
MotherNature note, the firm now claims that over 9-million health plan members have access to
product discounts on their suite through the firms relationships with LANDMARK HEALTHCARE
and WELLCALL. For Soroca: (978) 929-2016.
B. Two new relationships were announced in early June by new integrative medicine portal
BRAINYBRAWN.COM. DEVON HEALTH SERVICES, a PPO which claims 2-million lives in six
states in the Northeast has signed an agreement under which the firm will joint market the dotcom firms consumer health website. BrainyBrawn, which focuses on both consumer and
professional markets, is actively selling to managed care, employer and insurance interests. In a
second announcement, Summit, New Jersey-based VISTA HEALTH SYSTEM, a network of 250
physicians with 200,000 covered lives selected the firm for an array of business-to-business and
business to consumer purposes. Under the agreement, Vista Health physicians will pilot
BrainyBrawns group purchasing capabilities for medical supplies. BrainyBrawn will offer
consumers access to CAM products. ROBERT EIDUS, MD, chief health officer for BrainyBrawn
and TOM KLOOS, MD, medical director of Vita, handled the announcement for the two firms.
For Vista: 908-598-0101; for BrainyBrawn, 877-920-9900.
C. Scottsdale, Arizona-based CANCEROPTION.COM recently advertised its participation in the

June 9-11 Comprehensive Cancer Care conference organized by JAMES GORDON, MD. The
firm noted that its chief medical officer DARRYL SEE, MD, will present at a poster session an
independent study of eleven patients that integrates the complementary therapies and nutritional
supplements available at CancerOption.com. 480/778-1618
D. In a June 7 release, INTEGRATIVMEDICINE announced that its move to offer an online
newsletter, OneMedicineALERT, is picking up 60 new subscriptions each day, for a total of
1800. KAREN LITTLE edits the publication. The firm, which publishes THE INTEGRATOR, has
recently create a new look for its ONEMEDICINE.COM website.
E. Joining the dot-com content and resource suppliers is INTRAMEDICINE.COM, launched on
June 7, 2000 by Westlake Village, California-based INFINITE AXIS, an internet development firm.
JEFF EISENBERG is CEO of the new offering which recently acquired offline and online rights to
the content from NATURAL HEALTH RESOURCES, INC., founded by JAMES LAVALLE, RPh,
NMD and ROSS PELTON, RPh, PhD. www.intramedicine.com
F. Akron, Ohio-based ICBS is a website development firm which created HOLISTICONLINE.COM, noted by Psychology Today as a top Ayurvedic medicine site. The CEO is
JACOB MATHEW. Via Businesswire, June 9, 2000. 330/733-4283 www.icbs.com.
7.
MISCELLANEOUS: SOCIOMETIRCS/CA,M DATABASE, ALTERNATIVELINK/SCANLAN
A. ERIC LANG, PhD, principal research scientist with the Los Altos, California-based
SOCIOMETRICS CORPORATION, is exploring, on an NIH NCXCAM grant, the feasibility of
developing an international Complementary and Alternative Medicine Data Archive (CAMDA).
The firm is seeking information on data sets which diverse organizations may have, from which
Sociometrics may develop a qualified database. The exploration may be followed up by a Phase
II grant to build the data base. Info on Sociometrics is at www.socio.com. Advisors to the firm
include former NIH OAM program officer JOHN SPENCER, PhD, and JEFFREY LEVIN, PhD,
MPH, co-editor of a recent CAM textbook with WAYNE JONAS, MD. For Lang, 650-949-3282
B. New Mexico-based CAM coding firm ALTERNATIVE LINK has named JACK SCANLAN to a
position as senior vice president for marketing. Scanlan formerly held a similar position with EDI
USA, a leading electronic claims clearinghouse.
End
I/H News File #60, June 14, 2000.
_____________________
INDUSTRY/HEALTH NEWS FILE #61, July 7, 2000
1.
2.
3.
4.
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7.
NATIONAL COMMISSION GETS UNDERWAY JULY 13-14

STUDY FINDS WEAK RESEARCH BASE ON CAM COST-EFFECTIVENESS
CONSUMERS: SURVEY FINDS USE BY TWO-THIRDS; PAIN-CAM USE LINK
A. INTERNET-BASED CAM SURVEY FINDS TWO-THIRDS ARE USERS
B. CAM AND PAIN: STRONG LINK ON CONSUMER CAM USE
GOVERNMENT ACTION: HHS/CHIROs; PLUS
ACUPUNCTURE: BMA PROMOTES IN BRITAIN; AAOM AND ACU/MEDICARE
PERSONNEL CHANGES: AWHN SHAKEUP; SHEPHERD/BASTYR; LEAVER/DOT-CAM
CONFERENCES: CANCER DRAWS; 3 FROM HARVARD; CAM/ADHD

COMMENT: The British poet Thomas Hardy once wrote a poem entitled Is My Team Plowing?
in which he has a farmer look back from the grave and ask whether life itself actually goes on
without him. Well, coming back from the pleasant death-to-work of vacation I am pleased to
report that the CAM-team is, indeed, still plowing. This News File, and #62, to be sent later in the
week, catch up on developments during my recent vacation absence. The big news, however, is
in #1, below, coming up this week. After 18 months of slow start-up, the White House
Commission is to finally get underway. -- John Weeks, publisher-editor.
__________________
1.
NATIONAL COMMISSION GETS UNDERWAY JULY 13-14
The NATIONAL COMMISSION FOR COMPLEMENTARY AND ALTERNATIVE MEDICINE

POLICY will finally get underway with its first meeting July 13-14 in Washington, DC, according to
BETH CLAY, professional staff member for the Congressional Oversight Committee DAN
BURTON (R-IN). Clay, contacted by THE INTEGRATOR ON July 6, stated that names of
Commission members were still not public. The two day meeting will be held Thursday, July 13
2:00 PM - 5:30 PM, and Friday, July 14, 8:30 AM-5:00 PM at the Hubert Humphery Building Room 800, U.S. Department of Health and Human Services, 200 Independence Avenue, S.W.
Washington, D.C. 20201, (202) 619-0257. Clay, a leading congressional staffer on CAM issues,
notes that there will be public comment time available on the second day. The White House
Commission's Office is at 301-435-7592.
2.
STUDY FINDS WEAK RESEARCH BASE ON CAM COST-EFFECTIVENESS
A recent article in a British CAM publication, based on a search of diverse databases, found little
data supporting or opposing an economic case for CAM interventions. The authors searched in
Medline, Embase and AMED for reports of cost description, cost comparison, cost effectiveness,
or cost benefit studies. Only 34 reports were deemed valuable. Some retrospective studies
suggested possible reductions in treatment costs and referral, while prospective studies tended to
find CAM additive, especially when compared within the limited parameters of direct medical
costs. When broader societal costs are included, CAM tended to fare more favorably. Not
surprisingly, the authors concluded that there is a need for high quality investigations of the costs
and benefits of complementary medicine. COMMENT: A search carried out by MAC BECKNER
with the COCHRANE COLLABORATION and the UNIVERSITY OF MARYLAND CAM program
for THE INTEGRATOR earlier this year yielded similar findings. Source: White AR, Ernst E,
Economic analysis of complementary medicine: a systematic review. Complement Ther Med
2000 Jun;8(2):111-118
3.
CONSUMERS: SURVEY FINDS USE BY TWO-THIRDS; PAIN/CAM-USE LINK
A.
INTERNET-BASED CAM SURVEY FINDS TWO-THIRDS ARE USERS
With a heading that Alternative Medicine Turns Mainstream, Menlo Park, California-based
INTERSURVEY released on June 20 results of a national Internet survey which found that 2/3 of
adult Americans have used at least some form of CAM. The survey of 1148 adults was
administered through MDChoice.com. The most widely used CAM therapies found are
confirmative of other studies: chiropractic, massage and herbs. One-third of the respondents
have used all three. The survey asked individuals why they used CAM. The top response: Sixtytwo percent (62%)of the respondents cited recommendations from family or friend. Other
reasons were traditional treatments were not working (28%), looking for a complement to a
health routine (23%); recommendation from a doctor (22%); and information from a newspaper,
magazine, or Internet source (20%). Questions on total effectiveness yielded highest marks for
massage, yoga and acupuncture. Many users of chiropractic, massage and acupuncture were
found to view their treatment as more effective than conventional medical alternatives.
InterSurvey, founded by two STANFORD UNIVRESITY professors, claims to provide web-based
surveys which achieve the validity of traditional polling techniques. Margin of error was plus or
minus 2.9%. Graphical renderings of the findings are available at
www.intersurvey.com/alternative.
B.
CAM AND PAIN: STRONG LINK ON CONSUMER CAM USE
A survey by OPINION RESEARCH INTERNATIONAL found that Americans are increasingly

using CAM for pain relief. Tops on the list of chosen therapies are massage, meditation and
magnet therapy. The survey found that 55% of overall CAM users said they would use it again,
citing efficacy as the main reason. Some consumers found their CAM more effective than aspirin
and prescription medications. The results were interpreted by CME HEALTH, whose director of
strategic planning, PAT CAMERON, concluded that that practice of supplementing conventional
care with CAM appears to be effective for millions of Americans." Findings on effectiveness
included: 14% of magnet users found the treatment very effective; 50% of users found massage
effective for back pain relief, and 36% using chiropractic reporting similarly. CAM received high
positives relative to conventional treatment for treating wrist pain, with both massage therapy and
relaxation/meditation techniques earning top relief marks for three out of four users. The report
supports the finding that CAM users tend to be people with chronic conditions. States Cameron,
of findings that magnet therapy is used by 40% with arthritis and 25% of those with sports
injuries: Its easy-to-use, works in tandem with other treatments, and has no reported side
effects. Those same characteristics describe massage therapy, meditation and other popular
complementary treatments. They're simple practices people can incorporate into their daily
routines to improve health and well-being." Interestingly, the study found a strong income
correlation on those reporting high levels of chronic pain. One-third of those with incomes less
than $15,000 report high levels of chronic pain, 13% of those in the $15,000-$35,000 range, 9%
making $35,000-$50,000, and just 5% of those with over $50,000. The study, entitled America
Hurts, was sponsored b HOMEDICS, a Commerce Township, Michigan-based manufacturer of
personal homecare products. 612-347-1672
4.
GOVERNMENT ACTION: HHS REPORT ON CHIROs; PLUS NC LAW FAILS
A. The OFFICE OF THE INSPECTOR GENERAL for the US HEALTH AND HUMAN
SERVICES released a report June 26 which found a startlingly unexplainable reduction in
chiropractic services available to Medicare managed care beneficiaries. The reductions were
particularly high when physician referral is required. The OIG found that, in 1996, 0.61% of the
one million plus recipients in Medicare policies in which referral for chiropractic is required access
the4se services. The numbers went up to 0.96% in 1997 and 1.08% in 1998. These figures
compare to roughly 4.15-4.42% in Medicare fee for services plans which do not require referral
during the same period. (The AMERICAN CHIROPRACTIC ASSOCIATION places utilization for
the American public as a whole at 6.5%.) The ACA believes this data will bolster its care in its
lawsuit against HCFA for allowing plans to illegally limit services to chiropractors. The OIG
report takes the position that MDs and DOs can also be the providers of manipulative services in
the Medicare benefit. This issue is now before the federal court in ACA's litigation. The OIG report
is entitled "Chiropractic Care: Comparison of Medicare Managed Care and Fee-For-Service."
The report is available through http://www.hhs.gov/oig/oei/whatsnew.html then scrolling down the
page to find the link to the report. Via PR NewsWire, July 5, 2000.
B. A publicized bill in North Carolina which would dramatically impact the practice ability of
practitioners of homeopathy, naturopathy, herbal medicine and some other therapies has failed to
move. The measure, a throw-back to the legislative battles of the 1980s, was promoted by the
NORTH CAROLINA MEDICAL BOARD and is presented by the board as an effort to restore
some order to freewheeling marketplace of treatments, remedies. The bill, promoted by
REPRESENTATIVE GEORGE MILLER was in part a response to the death of an eight-year-old
last year with juvenile diabetes who was taken off insulin in the care of an unlicensed and poorly
educated provider. The measure would have expanded the arsenal of penalties the board could
yield against doctors who violate the rules of the profession according to one report.
5.
ACUPUNCTURE: BMA PROMOTES IN BRITAIN; AAOM PUSHES ACU/MEDICARE
A.
BMA PROMOTES ACUPUNCTURE IN NATIONAL HEALTH SERVICES
The London Times reported on June 25 that the BRITISH MEDICAL ASSOCIATION for the first
time endorsed acupuncture, calling for inclusion in NATIONAL HEALTH SERVICE offerings.
(BMA calls for acupuncture on the NHS by Helen Rumbelow, June 26, 2000.) Following a
review of research, the BMA reportedly called acupuncture safe and effective for many
conditions (nausea, back pain, dental pain and migraine), unclear benefits (arthritis and stroke
victims) and did not help for smoking or lose weight. VIVIENNE NATHANSON, head of health
policy at the BMA, stated, simply: "It's about making the NHS more holistic." A survey of 600
general practitioners found that almost half had arranged acupuncture for their patients. The
survey found that osteopathy was recommended by a third and homeopathy by a quarter. Nearly
four-fifths (79%) wanted acupuncture in the NHS. The NHS next step will be to put acupuncture
under review by the National Institute for Clinical Excellence, the NHS's cost- effectiveness
watchdog, during 2001. One focal area of interest according to Nathanson is whether
acupuncture can prove better and cheaper than painkilling drugs, which kill 2,000 people a year.
Nathanson adds that the research has not been done to prove this. The report from the BMA
also urges that guidelines and training programs for acupuncture for general practitioners be
developed. The report offered two weblinks: www.medical-acupuncture.co.uk/index.shtml, for the
British Medical Acupuncture Society and www.acupuncture.org.uk/ for the British Acupuncture
Council. British Medical Association, Board of Science and Education. Acupuncture: efficacy,
safety, practice. http://web.bma.org.uk/public/science.nsf/sciencedocsvw/ReportAcupuncture on June
27, 2000.
B.
AAOM PUSHES ACUPUNCTURE IN MEDICARE, FEDERAL BENEFITS
The AMERICAN ASSOCIATION OF ORIENTAL MEDICINE is calling on members to support a

measure HR 1890, Federal Acupuncture Coverage Act. which would approve acupuncture
services in MEDICARE. The bill would amend title XVIII of the Social Security Act to provide for
coverage of qualified acupuncturist services under part B of the Medicare Program, and to amend
title 5, United States Code, to provide for coverage of such services under the Federal
Employees Health Benefits Program." The call for action on the measure, originally introduced in
May of 1999, was an attempt to move the bill prior to the July 4 recess. Steps faltered. HARVEY
KALTSAS, DOM, former AAOM president, is leading the lobbying effort. The measure targets
qualified acupuncturists as those who are licensed or certified to practice and would not include
most MD-acupuncturists. At press time, no news was available on the success of the push. [I
have an email into Malony on this ]
6.
PERSONNEL CHANGES: AWHN SHAKEUP; SHEPHERD/BASTYR; LEAVER/DOT-CAM
A. The leadership of AMERICAN WHOLEHEALTH NETWORKS has undergone a significant

transition. No longer with the firm are JAY MASON, founding president, and RAY SEAVER and
MIKE FLOCK, two vice presidents. Mason founded NATIONAL EMPLOYEE BENEFITS, then
brought in Seaver in 1997 to head up the networks move into expanded offerings, then called
CAM SOLUTIONS. The CAM network was merged into AWH in late 1998. An AWHN executive
who wished to remain off-the-record stated that the three left to pursue other interests. Providing
leadership at the CEO level is BILL LUBIN, who splits his time between AWHNs Wisconsin base,
and the Reston, Virginia headquarters of AWH. Hands-on management is led by an executive
team which includes TAMMY ZELTEN, vice president of operations, TAMI QUIRAM [check
spellings of both names, please] and LYNN MCDOWELL, RN, vice president for medical
services. Sources inside AWHN suggest that the move was typical following the merger 18
months earlier. The move does not appear to be part of a systemwide re-structuring or
downsizing on the network side. Employment at AWHN is said to be stable at roughly 50, and
the three regional offices in New Jersey, Arizona and Washington are expected to remain open
according to internal sources. One executive suggested that with the death of one of our sibling
(the AWH clinics), we (the networks) are now the rising star for AWH. (Note: Early June
INTEGRATOR interviews with AWH leaders on the CAM and the Internet, for an upcoming
feature, revealed that the firms internet strategy rests largely on the success of AWHs managed
care arm.)
B. In other AWH news, ERIC LEAVER, formerly in executive positions with AMERICAN
SPECIALTY HEALTH PLANS and, most recently, AMERICAN WHOLEHEALTHWHOLEHEALTHMD.COM, has left the firm to head up business development for dot-CAM startup NATURAL HEALTH LINK. Reasons for Leavers departure were not disclosed. Leaver
recently played a lead role in securing the WHMD.COM contract with ANTHEM HEALTHCARE.
NATURALHEALTHLINKs corporate mission includes both business-to-provider initiatives and
plans for expanding consumer referrals to affiliated providers through numerous channels.
www.naturalhealthlink.com; for Leaver: 1-877-375-4651
C. THOMAS C. SHEPHERD, DHA, has been selected as the new president of Bothell,
Washington-based BASTYR UNIVERSITY, widely recognized as one of the worlds leading
centers for research education and public policy in natural health sciences. The appointment
follows the retirement of Bastyrs founding president JOSEPH PIZZORNO, JR., ND. Shepherd is
an interesting choice for the institution, founded by three naturopathic physicians in 1978. He
brings 28 years of experience in health care administration, most recently as president with
ROYALE HEALTHCRE, INC., a North Carolina-based hospital management company.
D. TODD FOSTER, co-founder of would-be network start-up INTEGRIHEALTH has chosen to
leave the CAM arena to work with a videobased long-distance counseling start-up,
beBetterNetworks. Foster continues to work out of his home office.
End
______________________
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7.
WHITE HOUSE COMMISSIONERS NAMED: GORDON CHAIRS POLICY GROUP

NEW YORK PRESBYTERIAN SHUTS DOWN CAM DEPARTMENT
AMERICAN WHOLEHEALTH UNRAVELING
KAISER NATURAL FORMULARY GROUP SELECTS FIVE BOTANICALS
NEW ACUPUNCTURE LAWS IN TENNESSEE, GEORGIA AND OHIO
UCSF CENTER DEVELOPS MODEL FOR EVALUATING CAM STANDARDS

COMMENT: Wild, difficult week for the CAM industry. Dot-CAM looks increasingly like a failure
event as a rescue agent for American WholeHealth, begun in 1996 as a network of branded
clinics. In the midst of rumors of AWHs devolution came the shocking news that one of the
nations leading inpatient-outpatient CAM ventures went belly up, at New York Presbyterian, on
June 30. Then, 20 months after creation of funding for the White House Commission, this
exploration -- potentially a tremendous boon to thoughtful CAM integration and to health creation
in US medical payment and delivery -- began awkwardly. Oddly, only 13 of the 15
Commissioners were named, and six of that group are virtual unknowns to CAM and, from
accounts, void of prior CAM experience. Lets hope that the unknowns are both deeply interested
and open-minded. One significant irony: as NYP shut down its CAM department, the hospitals
director of medical ethics was named to the White House Commission. -- John Weeks,
publisher-editor
IntegrativMedicine (onemedicine.com).
(c) IntegrativMedicine 2000
__________________
1.
WHITE HOUSE COMMISSIONERS NAMED: GORDON CHAIRS POLICY GROUP
The WHITE HOUSE COMMISSION ON CAM POLICY was officially seated on July 13. Chairing
the group is author-provider JAMES GORDON, MD, the initial chair of the advisory board to the
former NIH Office of Alternative Medicine and head of the Washington, D.C.-based Center ;
GEORGE M. BERNIER, Jr., M.D., hematologist/oncologist and is currently the Vice President for
Education at the University of Texas Medical Branch, Galveston, Texas, no CAM background
referenced; GEORGE THOMAS DEVRIES, III, CEO, American Specialty Health, San Diego, CA;
WILLIAM FAIR, MD, Memorial Sloan Kettering and Cornell Medical School affiliations, chairs the
Committee on Complementary and Alternative Medicine of the American Urology Association,
New York City; JOSEPH FINS, MD, internist and director of medical ethics at New York Weill
Cornell Medical Center of New York - Presbyterian Hospital, Cornell affiliation, no noted CAM
experience; WAYNE B. JONAS, M.D., past director, NIH Office of Alternative Medicine;
CHARLOTTE ROSE KERR, R.S.M., a nurse and acupuncturist with Traditional Acupuncture
Institute; DEAN ORNISH, M.D., Preventive Medicine Research Institute, Sausalito, California;
CONCHITA M. PAZ, M.D., University of New Mexico School of Medicine, Las Cruces, New
Mexico, no noted CAM background; BUFORD L. ROLIN, former chair, National Indian Health
Board, Atmore, Alabama, no noted CAM experience; JULIA SCOTT, president of the National
Black Womens Health Project, no noted CAM background; THOMAS CHAPPELL, founder of
natural personal care products manufacturer Toms of Maine, and CEO of Saltwater Institute,
Kennebunk, Maine; and DR. EFFIE POY YEW CHOW, nurse and acupuncturist, QiGong leader.
The Commission began its work without the entire panel of 15 Commissioners seated.
COMMENT: The current list is roughly split between individuals with an active involvement in the
field those with no CAM. Representation from the distinctly licensed CAM professionals is through
two nurse-acupuncturists. The payment and delivery industries are not directly represented,
except by DeVries. Ornish has an industry component interested, via PMRI, Kerr, to a lessor
extent, through TAIs collaborations with insurers, and Fair, with his affiliation with the Memorial
Sloan Kettering CAM program. Also notable is the lack of representation from the state of
Washington, called the epicenter of CAM integration by DAVID EISENBERG, MD.
2.
NEW YORK PRESBYTERIAN SHUTS DOWN CAM DEPARTMENT
One of the nations leading CAM centers, the DEPARTMENT OF COMPLEMENTARY

MEDICINE, was shut down by the sponsoring hospital, NEW YORK PRESBYTERIAN, on June
30. Sources state that the issue was budgetary, with the hospital not willing to take any financial
risk for the six-year-old program which had been funded largely through a New York-based
foundation. Another perspective shared with THE INTEGRATOR is that the department
remained a bastard step-child the hospital and that the failure was less about finances than the
depth of its embrace by the institution. Perhaps the most significant inpatient-outpatient venture
in the nation, the services of NYP department had produced average outcomes which include
73% reduction in pain, 82% reduction in stress and a 96% satisfaction rate. The department was
directed by JERY WHITWORTH, RN, CCP. Cardiothorasic surgeon, MEHMET OZ, MD, who cofounded the program in 1994 with Whitworth, was not directly involved with the department
except as a referring physician. NYP plans to continue offering some in-patient services through
Ozs cardiology practice. The department built a patient list of over 1200 and a group of 170
physicians for whom the center served as a referral service. THE INTEGRATOR is continuing to
explore this development.
3.
AMERICAN WHOLEHEALTH UNRAVELING
The would-be empire of AMERICAN WHOLEHEALTH appears to be unraveling far more

significantly than reported in I/H News File #61. According to an array of sources, none of whom
wished to be on the record, WHOLEHEALTHMD.COM, the internet venture which has been the
center of the firms business strategy laid off 30 of its 50 New York City-based employees. The
decision followed the announcement that WHOLEPEOPLE.COM, the web firm associated with
WHOLE FOODS MARKETS, has merged into the GAIM.COM (NYSE: GAIA). Gaiam had over
$45-million in 1999 operating revenues and was further bolstered by a successful October 1999
initial public offering. Whole Foods had invested $20-million in AWH and become AWHs natural
products partner, and that relationship appears to have soured with the Gaim.com deal. WHMD
has since been scrambling to find other partners for supplying product. One scenario has GAIM
in the process of making an offer for the WHMD properties. INTEGRATOR calls to WHMD offices
in New York have not been returned. Meantime, the network operation remain busy, ramping up
to fulfill the national contract with UNITED HEALTHCARE. But contrary to statements made last
week, the Arizona office of the network firm, AMERICAN WHOLEHEALTH NETWORKS, has
been shut down.
4.
KAISER NATURAL FORMULARY GROUP SELECTS FIVE BOTANICALS
The formulary committee of the CAM work group for KAISER PERMANENTE NORTHERN
CALIFORNIA has approved, following an elaborate evidence-based process, five botanicals for
sale on the shelves of the systems pharmacies. Approved were: gingko biloba, saw palmetto,
Echinacea, St. Johns Wort and glucosamine chrondroitin. Decisions about carrying the products
will be made by individual pharmacies. The committee also selected specific manufacturers
following site visits and detailed explorations on quality control processes by doctors of pharmacy
who were part of the multi-disciplinary process. The company names were not made available
pending prior reporting to the systems 4,000 physicians anticipated for later this month. HARLEY
GOLDBERG, DO, chair of the physician groups CAM committee, states that the team made the
decisions as you would expect from this conservative organization. The team developed
evidence tables and summary tables which were themselves based on reviews of the original
research. While the group does not formally recommend that the botanicals be used instead of
conventional agents, the strongest links were St Johns Wort for mild depression, saw palmetto
for benign prostatic hyperplasia and echinacea for the common cold. The products are not
covered by the HMO since they are all OTC products and Kaiser only covers prescription agents,
states Goldberg. Goldberg told THE INTERGATOR that the group worked closely with the US
PHARMACOPOEIA and its director for dietary supplements, SRINI SRINIVASAN, PhD. That the
USP is independently developing manufacturing standards was reassuring for many physicians in
the group. Once promulgated, the USP standards will supercede Kaisers, states Goldberg: All
our selected manufacturers know that they will be required to meet USPs recommendations.
Monographs on the herbs, developed by the Kaiser group, will be circulated to the systems
physicians and made available to other physicians allied with Kaisers other regional medical
groups on request. The committee plans now to focus more attention on the literature on
vitamins.
5.
NEW ACUPUNCTURE LAWS IN TENNESSEE, GEORGIA AND OHIO
The 2000 legislative session has yielded three new acupuncture practice acts. This brings to 39
states plus D.C the number of states with statutes regulating acupuncture.
** GEORGIA -- Termination of a five year campaign. Advisory board under the medical board.
First year graduates must be :supervised by another LAc. Also allows Acu-Detox specialists the
th
right to practice, under the supervision of an LAc. Georgia is the 10 state to formally allow these
non-acupuncturist providers to work with addiction.
th
** TENNESSEE Similar standards; also recognizes acu-detox specialists (11 state). The
state has roughly 20 detox practitioners and seven acupuncturists.
** OHIO -- Overseen by medical board. Includes three measures meant to appease
conservative physicians: 1) requires a written referral or prescription from an MD/DO; 2) LAc must
inform patients that acupuncture is not a substitute for conventional diagnosis and treatment;
and 3) LAc must be under the general supervision (MD/DO must be available for consultation)
of the patients referring physician.
In addition, acupuncturists in IOWA successfully passed a measure which requires MD evaluation
and referral. Source: Summer 2000 The Acupuncture Alliance Forum, the publication of the
ACUPUNCUTRE AND ORIENTAKL MEDICINE ALLIANCE (formerly the National Acupuncture
and Oriental Medicine Alliance). The Alliance presently claims 1100 members.
6.
UCSF CENTER DEVELOPS MODEL FOR EVALUATING CAM PROFESSIONS
A significant grant from the ARKAY FOUNDATION to the UCSF CENTER FOR THE STUDY OF
HEALTH PROFESSIONS is underwriting an exploration of standard setting in the CAM arena.
Entitled Complementary and Alternative Medicine: Evaluating Emerging Professions, the project
includes development of a model to be able to define and describe emerging professions,
including CAM professions. Under the grant, the investigators will then trial run the model with a
case study of naturopathic physicians and naturopaths. The focus on naturopathy will be a
challenge given that individuals using the term naturopath range from those who gained
certificates from mail-order business to graduates of the four-year residential naturopathic
medical programs which represent the most stringent training in CAM practice in the United
States. The project, expected to be completed by December 2000, is headed up by project
director CATHERINE DOWER, JD, with research associate HOLLY HOUGH providing a good
deal of the leg-work. Website of the Center is http://futurehealth.ucsf.edu. For Hough:
hjhough@itsa.ucsf.edu.
7.
A. The COMPREHENSIVE CANCER CARE 2000 program headed by JAMES GORDON, MD,
reports 1400 attendees for its June 9-11 meeting. The gathering is the largest CAM meeting
targeting professionals and mainstream providers in at least two years. The funding co-sponsors
have included the NIH NCCAM and this year, ONEBODY.COM, which provided a variety of
visibility support.
B. Fliers have been mailed for the second annual HARVARD-STANFORD conference on
Practical Applications and Evaluations scheduled for October 28-31 in Kauai. Tuition is $675.
617-432-1525. Harvard is joining with USCF in two addition seminars. On November 9-11, in
San Francisco, the program is Herbal Therapies and Other Dietary Supplements (415-4765208) and on May 17-19, 2001, also in San Francisco, Scientific Symposium in Integrative
Medicine (617-632-7770). In addition, the annual seminar led by David Eisenberg, MD on

Implications for Clinical Practice will be held February 11-14, in Boston (617-432-1525).
C. "Helping Kids with ADD: Alternative Approaches to Optimum Health and Peak Performance,"
October 14, 2000 at George Mason University's Student Union 2 Ballroom, 9:00 a.m.-4:00 p.m.,
in Fairfax, Virginia. The program is offered by ALTERNATIVE HEALTH CARE RESEARCH in
conjunction with ADVANCED EDUCATIONAL CONSULTING, associated with the NATIONAL
INTEGRATIVE HEALTH CONGRESS founded by MARY PRUNCHAK. 703-360-7733; altresearch.com, or e-mail MPrunchak@aol.com.
End, I/H News File #62, July 14, 2000
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1.
2.
3.
4.
5.
5.
SETTING MD-CAM STANDARDS: MOVES FROM AAMA AND AHMA

ALLIES FOR INTEGRATION: LOHAS, HEALTH PROMOTION CAMPAIGN
AWH RESPONDS TO WHMD REPORT IN NEWSFILE #62
MEDTRONIC EXPANDS CAM DONATIONS: DUKE, ALLINA BENEFICIARIES
CAM PROFESSIONS: ND/MASS, PT VISIONS, AMTA ONLINE, CHIROS V. UNITED
DOT-CAM: ONCOLOGY/SELFCARE, CVS/INTRAMEDICINE, HEALTHGRADES/ORACLE

_______________
1.
SETTING MD-CAM STANDARDS: MOVES FROM AAMA AND AHMA
Two significant developments on setting standards to better define an integrative physician are
afoot from historic MD-CAM professionals organizations. Both are taking a board certification
route, one in holistic medicine, the other limited to medical acupuncture. The former requires two
years of prior experience, while the latter requires a 300 hour educational program, including 100
clinical hours, and two years of acupuncture clinical experience
A. The AMERICAN BOARD OF HOLISTIC MEDICINE, a long-discussed initiative developed by
the two-decade old AMERICAN HOLISTIC MEDICAL ASSOCIATION, will offer its first exam in
December 2000. Applicants must be either an MD or a DO, currently licensed, with at least two
years of practice experience. The standards do not dictate experience in integrative care. The
course directors are Lynnwood, Washington-based ROBERT ANDERSON, MD, a former
president of AHMA and current president of ABHM, and Colorado-based ROB IKVER, DO, an
active CAM physician associated with the UNIVERSITY OF COLORADO DEPARTMENT OF
FAMILY MEDICINE. ABHM executive director LARRY HULBERT told THE INTEGRATOR that
ABHM plans to apply to the AMERICAN BOARD OF MEDICAL SPECIALTIES following the initial
exam and has been corresponding with the specialty in development of the program. Hulbert
states that over 200 MDs and DOs have requested the exam application packet -- prior to a
35,000 piece mailing to family practice doctros scheduled for August. ABHM anticipates 500
applicants in December. ABHM is also providing a pre-certification course entitled The Art,
Sacience and Practice of Holistic Medicine, via a co-sponsorship with the family medicine
program at the U of Colorado. Developers of the course, and the exam, include two-dozen MDs
and DOs, many of whom have been involved with the AHMA for many years. ABHM used the
services of MARY LUNZ, PhD, of Chicago-based MEASUREMENT RESEARCH ASSOCIATES

to develop the exam. For Hulbert, 425-741-2996, or blh@halcyon.com.
B. The AMERICAN ACADEMY OF MEDICAL ACUPUNCTURE last fall endorsed developed of
an AMERICAN BOARD OF MEDICAL ACUPUNCTURE to certify MD and DO-acupuncturists.
Board chair BYRAN FRANK, MD, informed THE INTEGRATOR that the board is in its final
stages and applications will be extended within the next several weeks. Standards include:
currently licensing, at least two years experience in medical acupuncture, and completion of a
300 hours training program, 100 of which must be in clinical. Applicants must also present three
physician references. Frank notes that the standards were established to exceed the 200 hour
international standards as set by the WORLD HEALTH ORGANIZATION and the WORL
FEDERATION OF ACUPUNCTURE-MOXIBUSTION SOCIETES. The purposes of the group are
to set standars, conduct examinations of approved candidates, and issue certificates to those
who pass. In addition, the group is involved in promoting advancement and betterment fo the
specialty of medical acupuncture, and assisting in the quality of graduate medical training.
Franks email address is bfrank@pol.net.
2.
ALLIES FOR INTEGRATION: LOHAS, HEALTH PROMOTION CAMPAIGN
A.
JOURNAL TARGETS INDUSTRY OF HEALTH AND SUSTAINABILITY
A good new publication on the broader industry of which CAM integration is part is the LOHAS
JOURNAL (Natural Business). The acronym stands for Lifestyles of Health and Sustainability
and is associated with the emerging demographic group called cultural creatives by marketer
PAUL RAY. The editors denote five interest areas for the Journal -- sustainable economuc,
healthy lifestyles, alternative healthcare, personal development and ecoplogical lifestyles -which together represent an estimated $227 billion annual industyr. A recent issue (Vol. 1, #2)
included a feature on physicians selling supplements and a piece on the NEW YOUR BETH
ISRAEL CAM clinic amidst pieces on renewable energy, socially responsible investing. The
puiblihers are long-time media participants in the natural products industry originally with NEW
HOPE COMMUNICATIONS and more recently known for their monthly newsletter Natural
Business (www.naturalbusiness.com). COMMENT: Participants in the May 2000 Miraval Summit
will know that one subject of significant interest is identifying the industry stakeholders who are
directly or indirectly financially interested in intergrations success. This publication is always an
interesting meditation on this emerging force for change. 888-go-LOHAS for a free introductory
subscription.
B.
LINKING WITH NATIONAL CAMPAIGN FOR HEALTH PROMOTION
Building Health Promotion into the National Agenda is the title of the February 12-17, 2001,
meeting sponsored by the AMERICAN JOURNAL OF HEALTH PROMOTION and others
interested in enhancing the role of health promotion in US healthcare. The meeting is part of an
ongoing campaign for increased political and funding support. The advocates claim that this
maturing field now has the foundation of over 1,000 empirical studies which demonstrate the
positive health and financial impact of programs pushed by employers, yet adds that the field is
not recognized as a mature science by any respected medical group. The group notes that: less
than 1% of the $1.149 trillion spend on medical care targets health promotion; few of the $400
billion Medicare and Medicaid dollars spent each year cover health promotion services; and the
OFFICE OF HEALTH PROMOTINO AND DISEASE PREVENTION has a budget so small that
few health promotion professionals ever encounter it in their careers. The meeting is in
Washington, D.C. An entire track will focus on political efforts. For work with the Campaign: 248682-0707. The effort is headed by MICHAEL OSDONNELL, PhD, MBA, MPH, the editor-in-chief
of the Journal. Nationalagenda@healthpromotionconfernece.org. COMMENT: While not directly
about CAM, the political issues of clashing paradigms are clearly linked. The Journal has
published the styudies on CAM integration led by KEN PELLETIER, PHd, of Stanford.
3.
AWHS LUBIN RESPONDS TO NEWSFILE #62
The notice in News File #62 that WHOLEHEALTHMD.COM had laid off 30 of its 50 member
workforce stimulated a call from BILL LUBIN, a vice president with the firm and CEO of the firms
network side. Lubin stated that the firm is reshaping its workforce to reflect a strategy in the dotCAM firm which will have a greater focus on content than on the e-commerce strategy that linked
the firm with WHOLEPEOPLE.COM. He reassured that the firm has clearly identified the assets
and value of the WHMD arm and views its content web content as the best of any site on the
web. He states that the firm is unbundling its information asset and finding significant interest
for up to a half-dozen separate components. He also indicated that that exiting the yoke of
exclusivity of the WholePeople.com distribution channel is positive: They werent meeting our
needs. (In fact, when GAIAM.COM and WholePeople.com merged, 90% of the roughly 200
person WholePeople workforce were eliminated.) Lubin viewed the shift out of the as an opening
door for the WHMD, which is crafting relationships with a range of others distributing channels.
Lubin was upbeat about the firms future, noting that this is despite being part of a dot-com
industry that peaked and cratered. Lubins positive view was underscored by AWH chair MARK
PACALA in a follow-up interview. Pacala notes that a survey of 5000 WHMD customers last
spring by HARRIS INTERACTIVE found customer satisfaction at high levels rarely seen.
Pacala points out that an analysis of WHMD site visitors reached very positive outcomes: an
average of 13.5 minutes online, two returns to the site each month, and nine (9) page views per
unique visitor per month. He states that analysts with AWH investor THE SPROUT GROUP view
these metrics as awesome.
4.
MEDTRONIC EXPANDS CAM DONATIONS: DUKE, ALLINA BENEFICIARIES
The MEDTRONIC FOUNDATION HEALTH CENTER LEADERSHIP grant program for the
current year tops $3.5 million with announcement of two ned grants, to Durham, North Carolinabased DUKE UNIVERSITY HEALTH SYSTEM, and Minneapolis/St. Paul-based ALLINA
HEALTH SYSTEM. The Duke Center for Integrative Medicine and the Duke Clinical research
Institute will focus on gatehring hard data on the effectiveness of an integrative approach to caer
of individuals with heart failure which is tailored to the neeeds and sensitivities of patient from the
South. MARTY SULLIVAN, MD, co-directors the integrative program. The Allina program targets
the Healing the Heart: Cardiovascular Integrated Health Services Program at ABBOTT
NORTHWESTERN HOSPITAL, the medical director of which is VIBHU KSHETTRY, MD. The
grant will also support research on an integrative approach in heart care. The release from the
maker of products associated with high-tech care, trumpets the value of integrative approaches in
chronic heart or neurological conditions. Prior grants went to Stanford University, Harvard Medical
School/ Beth Israel Xdaconess
5.
CAM PROFESSIONS: ND/MASS, PT VISIONS, AMTA ONLINE, CHIROS V. UNITED
A. A measure to establish a commission to study the licensing of naturopathic physicians was

on the desk of Massachusetts Governor Paul Celluci at press time. Massachusetts is a target
state for the AMERICAN ASSOCIATION OF NATUROPATHIC PHYSICIANS and its state
affiliate. The measure has hung on a budget bill as House Section 316/Senate Section 297 and
advocates were calling for grassroots support last week.
B. PHYSICAL THERAPISTS ENVISION MOVE TO DOCTOR STATUS At the annual meeting
of the AMERICAN PHYSICAL THERAPY ASSOCIATION, the House of Delegates endiorsed a
future vision for 2020 in which physical therapy will be provided by physical therapists who are
doctors of physical therapy, directly acessible to consumers for the diagnosis of, interventions
for, and prevention of impairments, functional limitations, and disabilities related to movement,
function, and health." The APTA represents roughly 70,000 members.
C. The AMERICAN MASSAGE THERAPY ASSOCIATION has created a virtual massage room
on its sites at www.amtamassage.org/massageroom/massage.html. The site includes an interactive
stress test, audio-visual components and a massage tip of the week.
D. In June 20, 2000 letter to RICHARD MCCASKILL, vice president lf UNITED HEALTH
NETWORKS, the AMERICAN CHIROPRACTIC ASSOCIATION formally filed a complaint with
the managed care giant on its treatment of chiropractic. The ACA is charging discriminating
reimbursement procedures on the part of both United and its network supcontractors/vendors.
Complaints ranged from reimbursement levels which do not adwequately reflect the business
expense of the provider and systematic attempts to exclude chiropractic caer from products.
The proifessional organizations also protests limiting coverage to low back pain disagnosis. The
ACA is requesting a meeting with United. On June 27, the firm followed the letter with a formal
release, in which PATRICIA JACKSON, the ACAs vice president for professional affairs notes
that United Healthcare officials have been responsive to our contact so far, and we expect them
to fully cooperate in this problem- solving initiative on behalf of our members."
5.
DOT-CAM: ONCOLOGY/SELFCARE, CVS/INTRAMEDICINE, HEALTHGRADES/ORACLE
A. ONCOLOGY.COM has partnered with SELFCARE.COM for increased content which the
former believes will enhance the cancer-sites Coping Strategies and Complementary and
Alternative Therapies sections. By the agreement, the two will develop a co-branded store.
Selfcare.com positions itself as the healthy living marketplace for women and their families.
B. A relatively new player in the CAM content arena, INTRAMEDICINE.COM, was selected by
CVS CORPORATION, the nations largest drugstore chain, as an integratal part of the chains
pharmacist education program, according to a July 17 release. The agreement, an exclusive for
Intramedicine in the chain store arena, includes onsite training and access to Intramedicines data
base. CVS, which will also post Intramedicines consumer data on its website.
C. Newton, Masssachusetts-based INTEGRATIVMEDICINE used its one-line handle,
ONEMEDICINE.COM in a release on June 21 with a formal launch of online discussions fro
practitioners entitled Community Discussions. The first topic is estrogen replacement therapy
with a second, commencing at the end of July, on interactions. The discussions are moderated
by JACKI HART, MD, a former medical director for the Boston BETH ISRAEL DEACONESS
affiliate of the DEAN ORNISH program for revering coronary artery disease. The release included
incite into the firms revenue strategy. OneMedicine membership costs $99 and gives a
participant access to online editions of all the firms newsletters, as well as the discussions on the
firms databases. OneMedicine presently advertises 18,000 subscribers. 617-796-0812
D. HEALTHGRADES.COM is now boasting in-depth, objective information on its site which
includes not only conventional providers -- physicians, emergency rooms, nursing homes, etc. - but also 60,000 chiropractors, 8,000 acupuncturists and 700 naturopathic physicians. The frim
announced a deal with ORACLEBOBLILE to offer the service via the latter firms wireless
technology.
E. On June 30, GOHEALTH.MD (OTC Bulletin Board: GOMD) announced that its health
information site HEALTHMALL.COM has unseated DRKOOP.COPM as the number one CAM
site, according to PC DTAONLINE. The site received 719,000 unique visitors for the week ending
th
June 24 , placing it sixth among all health and family sites. The site includes a variety of
interactive features for consumers, directories for CAM providers. Healthmalls natural products
partner is PHARMOR.COM, which is in turn partnered with #3 online pharmacy, MORE.COM
F. HEALINGDIRECTORY.COM has retained HEALTH STRATAGEM as an agent to help find a

possible purchaser. The firm also owns right to the healinginternational.com domain name.
Contact BARBARA MAHONEY at 415-499-1765.
G. Industry sources state that a quiet information and education initiative in rapid developm ent
last spring called MEDIGY has closed shop for lack of funding. Integrative medicine leaders
RUSS GREENBERG, MD, and
End, News File #63, July 20, 2000
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1.
2.
3.
4.
INTEGRATIVE CLINICS: SURVEY, SUNY STONYBOOK, CWC, PLUS

A. HOSPITAL ADMINISTRATORS LOOK TO EXPAND CAM PROGRAMS
B. SUNY SHUTS DOWN CAM PROGRAM
C. AP STORY: D&T SURVEY, INFO ON BETH ISRAEL CENTER
D. WISCONSIN CENTER LOOKS TO EXPAND
E. ACUPUNCTURE EXPANDS IN KAISER NORTHERN CALIFORNIA
F. COMPLETE WELLNESS CENTER ANNOUNCES FINANCIAL DIFFICULTIES
MANAGED CARE: HEALTH NET/ASHP ACUPUNCTURE, CHIRONET, PLUS
CONFERENCES: GORDON, COMPASSIONATE MEDICINE AND NCCAM MEETINGS
MISCELLANEOUS: COMMISSION UPDATE, NCMIC POSITIVE, PIM CHANGES

COMMENT: The paradoxical forces in the economic of CAM integration are evident in the series
of brief reports on integrative clinics. Two surveys return views from hospital leaders which are
positive toward CAMs potential. One counterpoises this perspective with the budget pressures
on hospital executives. The positive view may be inked to the prevalent idea among newcomers
that significant out-of-pocket dollars are readily available to hospitals through CAM programs.
INTEGRATOR readers will know that no one seems, yet, to have found that spigot. The practical
difficulties in both the public and private sectors are evidence here, with two closures, including
the SUNY STONY BROOK program, noted. Note, however, that CAM provider additions to
conventional services, rather than high profile integrative facilities, seem to be working for two
delivery systems. -- John Weeks, Publisher/Editor
_______________
1.
INTEGRATIVE CLINICS: SURVEY, SUNY STONYBOOK, KAISER, CWC, PLUS
A.
HOSPITAL ADMINISTRATORS LOOK TO EXPAND CAM PROGRAMS
February mail survey of hospital administrators which yielded 240 responses (12%) by
CAMPBELLWILSON consulting found what the firms release termed a possible bright spot in
alternative medicine. Over 25% said they plan to add some form of CAM services in the next
year. Tops on the list for those planning to move into CAM were massage (40%), holistic
medical specialists (35%), chiropractors (16%), and biofeedback (9%). The survey also found
that 40% would not enter the health care today because of the pressures of the position,
particularly on reimbursement. The budget woes are not expected to be relieved soon. The areas
of greatest present profitability -- outpatient diagnostic imaging, ambulatory surgery, and
chemotherapy -- are among those slated for significant cuts under the new Medicare Outpatient
Payment System. (OPPS) Of the administrators, 75% believe their OPPS losses will be greater
than 5%; 39% expect losses to top 10%. The federal government has projected profits of 4.6%.
COMMENT: The fates of CAM programs are increasingly linked to broader budgetary realities. If
administrator projections are correct, hospital investment in significant CAM programs may
expect to remain low. 800/723-6492, or access www.campbellwilson.com.
B.
SUNY STONY BROOK TO SHUT DOWN CAM PROGRAM
A report in Long Islands NewsDay on July 27 announced that the SUNY STONY BROOK
CENTER FOR COMPLEMENTARY/ALTERNATIVE MEDICINE is to close. Medical school dean
NORMAN EDELMAN, MD, attributed the closure to money problems, adding that there will be
significant restructuring and simplification of the program. The loss of the clinical services was
downplayed by Edelman, who reported offered that they would be available by other practitioners
at the university who use them in conjunction with their regular practice. The program has been
led by SAMUEL BENJAMIN, MD. THE INTEGRATOR will be following up from Source: Ridgely
Ochs, Alternative Medicine Center to Close.
C.
AP STORY: D&T SURVEY, INFO ON BETH ISRAEL CENTER
A mid-June Associated Press feature on hospital integration of CAM includes some useful
information. (Hospitals increasingly embrace alternative care by Phil Galewitz; June 20, 2000.)
Gaelwitz references a DELOITTE & TOUCHE survey of 5000 hospitals which found that 13%
provide alternative therapies with the figure rising to 25 percent for inner city hospitals and 32
percent for hospitals with at least 500 beds. Matthew Fink, MD a neurologist who is president and
chief executive of Beth Israel Medical Center, which just opened a facility headed by WOODSON
MERRELL, MD, bluntly notes: "It would be silly for doctors and hospitals to ignore something that
will be a large part of health care for years to come." The reporter stumbled upon the resistance
many health systems have had to chiropractors are found in the INTEGRATOR Benchmarking
report. At the Beth Israel clinic Merrell reportedly states that to win the specialists' support, the
center has agreed that after a patient sees a chiropractor three times, the case must be reviewed
by a physician. We tried to get both sides to come to the table to work together. It was like
putting together disparate worlds." The Beth Israel's has not yet been able to attract an insurer
for a pilot project to test whether alternative therapies can save money and provide good care.
COMMENT: The commentary on the D&T survey includes a statement that "hospitals have
discovered that alternative medicine and healthcare therapies can provide new revenue." For
reference, the annual AHA survey in 1998 found 9% with some CAM. One interesting finding: the
D&T survey found that 24% of hospitals CEOs had personally tried alternative medicine.
D.
WISCONSIN CENTER LOOKS TO EXPAND
The integration program at COLUMBIA-ST.MARYS COMMUNITY PHYSICIANS INTEGRATIVE

MEDICINE PROGRAM in Milwaukee, Wisconsin, a 24 clinic, 4 hospital group, now has employed
chiropractors, acupuncturists and massage therapists providing services in two of the largest
clinics. In addition, according to program director TOM RYAN, roughly 3000 individuals have
attended a wide array of CAM-related classes (chi gong, tai chi, etc). The clinic initiated services
July 1999. Ryan told THE INTEGRATOR that the program is going well and is working on
maintaining program integrity while expanding to other sites. 414-760-7892
E.
ACUPUNCTURE EXPANDS IN KAISER NORTHERN CALIFORNIA
INTEGRATOR advisor LEE BALLANCE, MD, a member of the CAM committee for the
NORTHERN CALIFORNIA KAISER PERMANENTE notes that salaried or contracted licensed
acupuncturists are now in place in most of the 13 facilities. The Southern California Permanente
group has not taken the same direction in their pain program: they went for biofeedback instead.
Ballances group now has formalized representatives to head up CAM in each location. He also
provided more information about the botanicals program noted in News File #63. The group
considered private labeling its own botanicals as it has for some vitamins, but decided against
doing so. But one twist: a Kaiser-developed fact sheet with information about the specific herb on
one side, and general information about herbs on the other will be shrink-rapped with the
products. Said Balance: It looks like a PDR insert.
F.
COMPLETE WELLNESS CENTER ANNOUNCES FINANCIAL DIFFICULTIES
Winter Park, Florida-based COMPLETE WELLNESS CENTERS (announced on July 21 that the
firm is undercapitalized and is experiencing operating cash flow difficulties that have caused the
Company to be unable to meet its obligations or to achieve its business plan objectives. The
release attributed the problems to: 1) a withdrawn public offering; 2) a failed merger with
Dr.Alt.com at the end of May; and 3) inability to attract new investors. Bankruptcy reorganization
is under consideration. CWC has had a difficult road since its IPO in early 1997, including failed
acquisitions, media scrutiny and a 2.5 year federal investigation. www.completewellness.com.
2.
MANAGED CARE: HEALTH NET/ASHP ACUPUNCTURE, CHIROSOURCE, STANGER
A.
HEALTH NET ACUPUNCTURE BENEFIT FINALLY ROLLED OUT
An acupuncture and herbal medicine benefit from Woodland Hills, California-based HEALTH NET
for which the HMO first applied in late 1997 was announced on July 20. In a release, CORA
TELLEZ, the firms CEO said that through the benefits the firm becomes an even more effective
gateway to the care our members need and desire. Our research shows a growing demand for
care that complements traditional approaches. Adding acupuncture and herbal supplements
continues our groundbreaking efforts to provide access to a wide range of quality treatments at
an affordable cost." The firm initiated direct coverage of chiropractic in 1990. The firms senior
vice president JENNIFER GUTZMORE stated: "Acupuncture and other complementary care
therapies have been proven in certain cases to be effective for such conditions as headaches,
lower back pain, stroke rehabilitation, post-operative dental pain, and post-operative and
chemotherapy-induced nausea and vomiting, among others. We are excited to be able to offer
these safe and effective treatment options as an alternative to traditional medical treatments."
The program, offered through AMERICAN SPECIALTY HEALTH PLANS, allows self-referral, copayments ranging from zero to $15, and combined chiropractic options. Management includes
submission of a treatment plan to ASHP after an initial examination. Program delivery kicks off
September 1, 2000. The firm, which serves more than 2 million members, also offers a
WellChoices CAM discount product. 818/676-7666
B. Clayton, California-based CHIROSOURCE announced two developments in late June. The
firm has signed an agreement with the HEALTHSMART PREFERRED CARE, INC. to provide the
chiropractic network for the firms 350,000 members. HSPCs base is primarily in Texas. The
agreement includes general health and workers compensation contracts. A similar agreement
has been inked with THREE RIVERS PREFERRED PROVIDER NETWORK, which claims 2
million PPO members. According to Chirosource vice president TODD CATALDO, the firm
works with more of the major national PPOs than any other chiropractic managed care
organization.
C. JANICE STANGER, the CAM leader with the WILLIAM MERCER consulting firm contacted
THE INTEGRATOR to announce she is taking a new position as director of health services with
San Diego-based AMERICAN SPECIALTY HEALTH, INC. Stanger has been a leader in
bringing CAM into the employer spotlight, through publicizing CAM findings in Mercers annual
employer survey and through writing and speaking. Mercer has not noted who, if anyone, will be
heading up CAM after Stangers departure. Stanger anticipates doing a good deal of research an
writing for ASH.
D. CCN, a non-risk bearing preferred provider association with more than 30 million members,
will provide access to natural products through a recent agreement with DYNATRONICS
CORPORATION (Nasdaq: DYNT). Dynatronics products range across mainstream and typically
CAM markets. The products will be deeply discounted and available through the www.dynatronics
website. CCN claims to manage more than $6-billion in claim annually, mainly for large
employers, TPAs and union trusts. www.ccnusa.com, or 858-654-2202. From PR Newswire,
June 29, 2000.
3.
CONFERENCES: GORDON, COMPASSIONATE MEDICINE AND NCCAM MEETINGS
A. The annual MindBodySpirit Professional Training Program led by JAMES GORDON, MD,
will take place November 12-18, 2000, in HILTON HEAD ISLAND, SOUTH CAROLINA. The
sponsors are Gordons CENTER FOR MIND-BODY MEDICINE and, for CME, UNIVERSITY OF
MINNESOTA. $1800, not including housing, meals or transportation. Contacts are:
www/cmbm.org, cmbm@mindspring.com or 202-966-7338.
B. A group called THE ASSOCIATION OF HEALING HEALTHCARE PROJECTS is holding a
three day even entitled Compassionate Medicine: Remembering the Meaning and Wholeness in
Health Care, October 11-13, 2000. Among the speakers will by ELLIOTT DACHER, MD, and
LELAND KAISER, PhD. Sponsored by UNION HOSPITAL. Contact is Joan Strauss, 781-4773604 (joans@nsmc.partners.org).
C. NCCAM Advisory Council meetings will be: August 28-29, November 13-14, February 5-6,
2001; Nat 31-June 1, 2001, August 27=28, 2001, January 14-15 2002, May 6-7 2002 and August
26-27 2002.
4.
MISCELLANEOUS: COMMISSION UPDATE, NCMIC POSITIVE, PIM CHANGES
A. The WHITE HOUSE COMMISSION ON COMPLEMENTARY AND ALTERNATIVE

MEDICINE POLICY will be expanded to 20 members from the original 15. Sources suggest that
at least one of the new commissioners will be a chiropractor, a second may be another
acupuncturist. Massage therapists and naturopathic physicians do not look to be directly
represented. One new Commissioner was named, TIERAONA LOW DOG, MD, a well known
educator in botanicals associated with the annual course for COLUMBIA-U ARIZONA. Low Dog
is presently medical Director for the Tree House Center of Integrative Medicine in Albuquerque,
New Mexico. In addition, executive director is STEVEN GROFT, PharmD. Groft was the original
director of what was to become the OFFICE OF ALTERNATIVE MEDICINE in 1992-93.
B. In a follow-up to the New File # on downgrading of CAM malpractice carriers, NCMIC
GROUP announced on June 28, 2000, that it has maintained its single-A-plus rating from
STANDARD AND POORS. NCMIC, with a market share approaching 50%, is the leading
provider of medical malpractice insurance to chiropractors in the U.S.
C. THE MEDICINE TREE, an integrative clinic in St. Ignatius, Montana, shut its doors June 30.
The clinic, which had planned a potential expansion and roll-out, head been headed by MARY
STRANAHAN, DO. The initiative was personally backed by Stranahan.
D. VICTORIA MAIZES, MD, the new executive director of the UNIVERSITY OF ARIZONA
PROGRAM IN INTEGRATIVE MEDICINE reports some good news amidst the destabilization of
revenue shortfalls and the departure of prior leadership (see News File ___). The Associate
Fellows program begins with a full class of 42 in August. Research director IRIS BELL, MD, PhD,
has secured two significant NIH grants. A new Pediatric Fellowship -- two fellows -- commenced
July 1. In addition, PIM is actively involved in developing the next annual meeting, scheduled for
September, of the ACADEMIC CONSORTIUM OF INTEGRATIVE MEDICINE, a group which
initially met a year ago at the instigation of JON-KABAT ZINN, PhD and . Working on the
consortium inside PIM is MARY HELEN KASER (520-626-6483). Maizes is a former KAISER
PERMANENTE physician with strengths in wellness and health promotion who was a first year
Fellow with PIM.
End, News File #64, July 28, 2000.
_________________________
INDUSTRY/HEALTH NEWS FILE #65, August 4, 2000
1.
2.
3.
4.
5.
6.
FORMER OXFORD HEAD BACKS INTERNET-BASED DEFINED BENEFIT

REQUEST FOR RESEARCH COLLABORATORS AND CO-SPONSORS
NETWORKS/MCOs: CHP/HEALTH POLICY, HAN/TOURO, PREMERA EXPANDS, PLUS
TWO FROM MASSACHUSETTS: STATE CAM STUDY, HARVARD CAM DIVISION 4.
MEDIA ACCOUNT SURVEYS CAM IN HOUSTON MARKET
MISCELLANEOUS: ND EXAMS, ORNISH ON REIMBURSEMENT, CAM MARKETING

_______________
1.
FORMER OXFORD HEAD BACKS INTERNET-BASED DEFINED BENEFIT
STEPHEN WIGGINS, the former chair of CAM-pioneering OXFORD HEALTH PLANS has taken
his market-oriented focus a next step. On July 24 he launched HEALTHMARKET as a vehicle for
what he calls self-directed health plans. The business links an Internet strategy (see article on
HEALTHECARE.COM, June INTEGRATOR) and the move in employee benefits toward defined
contributions (see July-August INTEGRATOR), both of which are anticipated to give consumers
more CAM options. HASSAN RIFAAT, MD, most recently a COO with ALIGNIS, and prior to that
the developer of Oxfords CAM program for Wiggins, is heading up CAM development for
HealthMarket. Wiggins expects the plan, position as an alternative to managed care, to shortly
be available in 48 states. The company release is calls the announcement the beginning of a
new era in healthcare. A $57 million first round of financing provided to business development.
JOHN DANAHER, former executive vice president of HEALTHEON/WEBMD, is the president and
COO. The firms exchange -- where consumers meet providers -- will soon have 5,000 CAM
providers joining 175,000 physicians, 3,000 hospitals and 40,000 ancillary facilities, according to
the release. States Wiggins: "We really believe the future lies in getting the insurer and employer
out of the business of directing or controlling the provision of medical care," said Mr. Wiggins.
"The role of the insurer is simply to pay for healthcare; and the role of the employer is to help the
employee pay for that insurance. Period." Healthmarket.com
2.
REQUEST FOR RESEARCH COLLABORATORS AND CO-SPONSORS
MELINNA GIANNINI, founder of INDUSTRY/HEALTH subscriber ALTERNATIVE LINK contacted

THE INTEGRATOR with a request on an intriguing project. Other I/H subscribers may be
interested. Giannini and KEVON ARTHORS, ND, recently a consultant to the VETERANS
ADMINISTRATION on CAM issues, have created what Giannini calls a cost and outcome study
that can be funded for $300 per provider or $3,000 per clinic. The target is at least 200
providers, for a cost of at least $60,000. States Giannini: Ten diseases have be identified that
cost employers lost work days for worker's comp claims and insurance companies high volumes
of claims. The study is designed and the books for each practitioner can be delivered
immediately with all component pieces of the survey. Each provider would be paid $250. $50
would be spent by Alternative Link to produce books and cover the mail and phone charges for
the study. It is estimated that the study would take 2.5 hours for the individual provider to
complete. We have already benchmarked conventional costs for each of the 10 diseases so that
the results of the provider surveys can instantly be compared to conventional costs, including
drug therapies. I believe that we have the contacts to get this done in two months. I would like to
survey 20 practitioners for each licensed provider including: DOM, DC, MD, DO, ND, LMT, NP
(nurse practitioners), CNS (clinical nurse specialists) PT (physical therapists) and 10 clinics with
10-30 providers working in integrated settings. The total cost of the project for a 200 provider
survey would be $60,000. ALTERNATIVE LINK will share all data with companies which
contribute $20,000. If more money is raised, the survey will be expanded to a maximum size of
500 providers. If you are interested or have ideas of anyone who might be, contact Giannini.
mg@alternativelink.com
3.
NETWORKS/MCOs: CHP/HEALTH POLICY, HAN/TOURO, PREMERA EXPANDS, PLUS
A.
CHP CREATES CROSS-DISCIPLINARY PUBLIC POLICY COMMITTEE
COMPLEMENTARY HEALTHCARE PLANS recently initiated a Public Policy Committee which

will begin to represent our (CAM) disciplines and practitioners in the area of public policy. In the
summer issue of the CHP newsletter, the Portland, Oregon-based network stated that it is the
only complementary health organization that includes licensed practitioners in all four disciplines
(chiropractic, acupuncture, naturopathy and massage) on its policy making board. The formal
Policy Committee will review issues facing individual disciplines and will work with its contracted
health plans, individual trade groups and professional groups as appropriate. In other CHOP
details noted in the newsletter, CHP currently handles 7100 claims a month on 235,000 at risk
and 1.2 million PPO and MCO lives. Provider panels include 311 chiropractors, 43 naturopathic
physicians, 53 acupuncturists and 71 massage therapists. The firm now has operations in six
states. COMMENT: The types of policy noted were generic -- silent PPOs, patient rights,
medical record privacy -- but given the not unusual legislative and scope of practice conflicts
between the CAM disciplines, CHPs Public Policy Committee might feel like Camp David when
the Middle East is on the agenda. This appear an intriguing direction and form of corporate
responsibility. THE INTEGRATOR would be interested in similar panels created by other
networks.
B.
NEW ORLEANS NETWORK LINKS WITH MAINSTREAM DELIVERY ORGANIZATION
New Orleans-based HEALING ARTS NETWORK, a discount CAM network, has formed a
collaboration with one of the citys conventional care services, TOURO INFIRMARY, under
which Touros 1300 employees can access HANs network of providers. In the June agreement,
the TOURO ALTERNATIVE THERAPIES CENTER became a provider in the HAN network. The
release noted that HAN has also established a relationship with GLISBAR, INC., a third party
administrator which is offering HANs network to its employer clients. HAN is a subsidiary of
AMERICAN LIFECARE, the nations 33 largest plan. healingartsnetwork.net, or ANSLKET
ZEHNDER at 504-679-0110, x 6517.
C.
LANDMARKS BURON LAYS OUT PRICING MODEL
At a May meeting of the SOCIETY OF ACTUARIES, KEVIN BURON, a vice president with
LANDMARK HEALTHCARE provided an overview of a general model for CAM pricing for
estimating a cost of a CAM rider. The modal may be a useful summary to INDUSTRY/HEALTH
readers who are not directly involved in this aspect of CAM integration. Components include:
1.
2.
3.
4.
5.
6.
7.
Base assumptions (percent of insured will utilize, visits per unique patient, cost per visit)
PCP referral versus direct access
Scope of covered services (condition limits)
Benefit design - visit limits
Core benefit vs. rider
Member copayment levels
Internal factors (incentives for sales, buy in of brokers, renewals to new business quotes,
price position in the marketplace, break-even versus profit center)
8. Market factors (mandates or upcoming regulatory issues, product cycle, community
acceptance, product availability, first out versus me-too)
9. Vendor payment system (fee for service with administration, capitation, risk sharing)
10. Practitioner reimbursement methodology (fee for service, capitation, global case rats,
reimbursement pools).
COMMENT: The permutations of these factors point to emptiness of a simple statement that a
given plan covers CAM. A situation in which all the factors that limit CAM are rolled into one
benefit, produces a calculus approaching zero.
D. PREMERA BLUE CROSS EXPANDS CAM BENEFIT
The reformulation and expansion of CAM benefits by carriers in Washington State, following the
loss of a suit protesting INSURANCE COMMISSIONER DEBORAH SENNs interpretatiion of a
1995 state mandate has commenced. GROUP HEALTH COOPERATIVE is expanding the list of
condition for which member can have services of some providers, notably naturopathic
physicians, covered. PREMERA BLUE CROSS recently sent an advisory to patients which
clarified that acupuncture services will be covered for up to 12 visits. Services must be medically
necessary to relieve pain, induce surgical aneshesia or to treat a covered illness, accidental injury
or condition. No more specifics were provided. Manipulative treatment by chiropractic,
osteopathic or naturopathic physicians will also be covered for up to 12 visits. The original
Premera benefit was a 50/50 co-payment for a total of $500 of carrier exposure. Symbolically,
and in alignment with Senns interpretation, the carrier has removed all language suggesting that
the CAM services are a Supplemental Medical Benefit. The plan is now also allow naturopathic
physicians to be covered for home, office and facility visits. In another move, preferred massage
therapist are now part of the Rehabilitative Care benefit when part of a physicians formal,
written plan. The move marks a significant increase in coverage of naturopathic services, in
accordance with that professions formal primary care status in the state.
4.
TWO FROM MASSACHUSETTS: STATE CAM STUDY, HARVARD CAM DIVISION
A.
HARVARD CAM RESEARCH GROUP GIVEN DIVISION STATUS UNDER EISENBERG
HARVARD MEDICAL SCHOOL (HMS) has formally established a Division for Research and
Education in Complementary and Integrative Medical Therapies under the direction of DAVID
EISENBERG, MD. The division will facilitate collaboration in and among diverse research parties
and affiliated institutions. Over 60 faculty members in Harvard-affiliated teaching hospitals have
shown interest in participating with division activities. Two foci of the division are policy-related.
One is policy development regarding credentialing, referrals and co-management of patient
care, according to a release. The other is criteria to responsibly recommend the use or
avoidance of herb/supplement and other complementary therapies. In the statement, Eisenberg
noted that despite tremendous use and interest that "there has been a tendency to marginalize
complementary and alternative medicine in mainstream medical institutions. Eisenbergs BETH
ISRAEL DEACONESS CENTER FOR ALTERNATIVE MEDICINE RESEARCH AND
EDUCATION has received over $6 million of NIH funding since 1993. Contact is Peta Gillyatt:
gillyatt@hms.harvard.edu, 617-432-0443
B.
MASSACHUSETTS TO STUDY ALTERNATIVE MEDICINE
Massachusetts GOVERNOR ?? CELLUCI has signed a bill which establishes a commission to

study alternative medicine. Among representative on the commission will be representative from
not only the BOARD OF REGISTRATION OF MEDICINE but also the state associations
representing acupuncturists, naturopathic physicians and medical doctors. One focus will be
whether state licensure of naturopathic physicians, in particular, is needed as a consumer
protection measure. Acupuncturists are licensed. Another focus will be on third party
reimbursement for CAM services. Commissioners may suggest legislation. A report will be
prepared by December 1, 2000. COMMENT: The story behind this move is the efforts of the
MASSACHUSETTS SOCIETY OF NATUROPATHIC PHYSICIANS to gain licensing. The NDs,
whose 11 states do not yet include a major population or media center -- the most populous
states are Washington and Arizona -- are presently also being studied in California.
3.
MEDIA ACCOUNT SURVEYS CAM IN HOUSTON MARKET
The HOUSTON CHRONICLE ran a July 30 feature on the Houston activity in CAM integration.
Focus was on MEMORIAL HERMANN HEALTHCARE. (See INTEGRATOR.) One
development: Nurses at four of MHH hospitals will beginning training in healing touch, guided
imagery and massage for patients before and after surgery. The stated reason, from nurse trainer
BONNIE KELLEY MORROW: Patients require less anesthesia, recover quicker and blood loss is
less. Aromatherapy is practices at SOUTHEAST MEMORIAL HOSPITAL. Day surgical patients
can choose peppermint, lavender or orange scents. The writer explores revenues. Program
director RICHARD MATTERSON, MD, is quoted as saying: My bosses would be happy if we
didnt lose money. The article also notes activities at other, non-MHH hospitals. CHRISTUS
HEALTH is beginning an exploratory CAM committee. ST. LUKES EPISCOPAL HEALTH
SYSTEM claims some staff physicians who provide acupuncture. METHODIST HEALTH CARE
SYSTEM has no formal CAM program but, though an INSTITUTE OF PREVENTIVE MEDICINE
provides massage therapists, acupuncture, acupressure, aromatherapy, reflexology and magnet
therapy to corporations which contract with the system for wellness programs. CATHY EASTER
DEBUSK with the Institute says that about 40% of corporate wellness clients request the
services. On the HMO side, HUMANA and AETNA each offer network-based discount products.
CIGNA reportedly offers six visits for chiropractic, acupuncture or biofeedback for a limited list of
conditions if the member has a physician referral. Houston Health Care System Takes a
Different Approach to Healing by Mary Sit-Duvall, July 30, 2000.
6.
MISCELLANEOUS: ND EXAMS, ORNISH ON REIMBURSEMENT, CAM MARKETING
A. The NORTH AMERICAN BOARD OF NATUROPATHIC EXAMINERS (NABNE) got a plug in

the health and Safety section of The Atlantic Monthly. NABNE, following an administrative
structure used by MDs and chiropractors. Will now administer licensing exams for the profession.
Atlantic Monthly viewed the move as another step toward the mainstream for alternative
medicine. August 2000
B. In testimony before US CONGRESS last spring, DEAN ORNISH, MD, made a blunt request
to Congress for coverage of his multi-disciplinary program for reversing coronary artery disease.
In a discussion which touched on the scientific and cost-effectiveness arguments which already
support his approach, Ornish stated: If we change reimbursement, we change medical practice,
we change medical education. COMMENT: This perspective on the causality between
coverage and practice is found elsewhere in the CAM-arena, notably in studies of why nutrition
has not found its way into medical education and practice.
C. The NIH NCCAM has announced its exploratory grants for FRONTIER MEDICINE
RESEARCH. (RFA: AT-00-002). NCCAM defines this CAM grouping as those CAM practices for
which there is no plausible biomedical explanation. Examples are: bioelectromagnetic therapy,

biofield/energy healing, homeopathy and therapeutic prayer/spiritual healing. Information is at:
http://grants.nih.gov/grants/guide/rfa-files/RFA-AT-00-002.html.
D. A resource on CAM developments in 16 diverse institutions and organizations is
ALTERNATIVE MEDICINE: MARKETING BEST PRACTICES. Author is healthcare consultant
Lynne Cunningham. Her firm partnered with THE ALLIANCE FOR HEALTHCARE STRATEGY
AND MARKETING on the 65 page text. Cunningham used a phone survey format. Published in
early 2000, the volume will have little new to INTEGRATOR readers but there will be kernels,
particularly in the marketing area, the publishers focus. 312-704-9700.
End
Industry/Health News File #65; August 4, 2000
____________________________
1.
2.
3.
4.
CLINICS: TWO VIEWED AS BREAKING EVEN, HEALTH SOUTH, PLUS

A. COLORADO CENTER GROWS OUT OF GERENTOLOGY PROGRAM
B. MASSACHUSETTS MEMORIAL: INPATIENT/OUTPATIENT MASSAGE AND REIKI
C. HEALTHSOUTH: INTEGRATION IN REHAB
D DISCUSSION: BRIDGE CLINICS AND INTRA-GRATIVE FACILITIES
PERSPECTIVES ON POLITICAL CLOUT OF THE CAM PROFESSIONS
CONFERENCES: PROSPECTIVE MEDICINE, ACUPUNCTURE RESEARCH
MISCELLANEOUS: HBMN, CAM DOCUMENTARY, COMMISSION APPOINTEE, PLUS

COMMENT: The first two of the four reports on integrative clinics originally came to THE
INTEGRATOR stamped as profitable clinics. Post interview, unfortunately, the picture is not so
simple. But each is clearly finding a route to a positive profile in the sponsoring health systems
portfolio of services. Some shared features of these facilities: both grew organically out of
patient request in other departments, neither has a medical doctor salary line in the expense side
of the ledger, in-patient services are a part of the offerings, and each has had some time to ripen
within the broader system. Finally, both, notably, continue to focus on satisfied patients and word
of mouth for referral. And cash is the dominant form of payment. Interestingly, two of the three
hospital-based programs claiming to be at break-even in the Integrative Clinic Benchmarking
Project also have no MD or DO salaries in their budgets. -- John Weeks, Publisher-Editor
_______________
1
INTEGRATIVE CLINICS: TWO VIEWED AS BREAKING EVEN, HEALTH SOUTH, PLUS
A.
COLORADO CENTER GROWS OUT OF GERENTOLOGY PROGRAM
The Longmont, Colorado-based HEALTHCARE CENTER OF INTEGRATIVE THERAPIES, at

LONGMONT UNITED HOSPITAL, has an unusual origin. The program at the 135 bed, standalone hospital was begun in 1994 when seniors asked gerontology nurse MICHELLE BOWMAN,
BSN, RN, C, to add some CAM services. The original program featured massage, Tai chi,
exercise and yoga. The hospital, a PLANETREE member institution, invested in Bowmans CAM
education, including an extended educational trip to China. She began growing the program
slowly. In 1998, the program became a formal hospital department and includes a 3000 square
foot, 5 patient room integrative clinic as well as management of CAM integration into other
hospital services. Inpatient services with some CAM integration include cancer, birth,
rehabilitation and pre-operative care. Providing services are seven acupuncturists and 14
massage therapists. Most work part-time, and move between the clinic and inpatient needs in
seven-day-a-week program. Other practitioners include a medical herbalist, a practitioner of
Alexander Technique and nurses who provide touch therapy and Reiki treatments. The program
is presently ahead of budget and within $8,000 of breakeven for the calendar year, on $117,000
of net revenues for the first seven months of the year. Bowman told THE INTEGRATOR that the
loss is not viewed as problematic by the hospital. One reason: since integrating obstetrics care,
births have jumped from 80 per month to over 110. Bowman attributes her relatively comfortable
financial position to one important factor: We dont have MDs on staff. She adds that her own
compensation is probably about half of what would be paid to an MD in her leadership position.
The program, however, is not yet well integrated into physician practices, with only about 2
percent of the patient base due to physician referral. Based on her experience, Bowman has
begun to speak and consult widely on CAM integration in small and frequently rural hospitals,
including four in Wyoming, she told THE INTEGRATOR. Her work is to be featured in an
upcoming text from ASPEN PUBLISHING co-authored by FRANK LAWLIS. 303-485-8384
B.
MASSACHUSETTS MEMORIAL: INPATIENT/OUTPATIENT MASSAGE AND REIKI
KEITH DUBOIS, RN, BSN, was director of a consumer education program targeting women and
children healthcare users in 1994 when her target group [YES, SHE IS A SHE] began to request
CAM programming. In a series of conservative steps over the ensuing six years, the program
grew to fill a seven room, 2600 square foot facility running at 90 percent capacity as the
MASSACHUSETTS MEMORIAL COMPLEMENTARY HEALTH CENTER, with an adjunct
inpatient program. The steps are instructive of a conservative and financially less risky growth
model. The initial, standing room only session on CAM led to a series of segments on individual
modalities -- and then a request that the hospital provide therapies. In October 1995, space was
made available for massage services in a woman and children outpatient department on
Thursday afternoons after 4:30 PM. By June of 1996, four practitioners, and massage and Reiki
practitioners, were filling three evening slots. Less than a year and a half later, the program
th
moved into 1500 square feet of underutilized space in the hospitals 4 floor which were formerly
dedicated to intensive care. A $7000 grant from a hospital fund provided funds to pay
practitioners for CAM services to inpatients. Services expanded again in 1998, to then include
shiatsu, foot reflexology, gentle yoga, and nutritional counseling from a wholistic nutritionist.
Educational programs for consumers and professionals -- including wholistic nursing and nurse
training in Reiki -- are also offered. Finally, in May of this year, the hospital wanted the ICU
space back and the program moved to 2600 square feet in a hospital-owned Victorian house
across the street from the hospital. More limited CAM services have also been made available at
two of the systems other three hospitals. The marketing focus has been direct to consumer -DuBois booked 150 community presentations last year alone -- but in 1998, she added a focus
on educating physicians and nurses. One offshoot: a rotation for internal medicine and family
practice residents. Few physicians still routinely refer to the Center. Dubois believes a medical
director will be necessary to stimulate referrals. Inpatient services, now at just two treatments a
week -- it could easily be doubled if we had the resources -- is only possible with a physician
referral. Funding inpatinet treatment is also an issue: when the $7000 grant ran out, the inpatient
services continued to be delivered with the provider payments paid by the Center but not
reimbursed by the patient. Payments to providers for these unreimbursed inpatient services hit
$14,000 in 1999. Dubois has set fees for all CAM services just below market ($50-$60/hour in
Central Massachusetts), at $45 per hour. Practitioners, mainly cross-trained nurses, were paid
$26 with remaining $19 to cover program overhead. On the clinical side, steps are in process to
gain affiliate credentialing for a licensed acupuncturist. Bottom line: The program is expected to
generate an excess of $10,000-$15,000 of revenue over expenses. However, THE
INTEGRATOR discovered two major caveats: Dubois salary line she devotes 80% of her time
to the Center -- and rent on the space in the Victorian are not in the Centers budget. While the
operations people put the Centers red ink under scrutiny, Dubois is considering a strategy
through which she convinced a number of departments contribute to the programs overhead.
The strategy for developing the support: focused services developed by the Center for their
departments. She anticipates focusing on this in the coming year. 508-793-4757
C.
HEALTHSOUTH: INTEGRATION PILOT IN REHABILITATION
JASON STEIN, DOM, is heading up an informal CAM integration pilot into a HEALTHSOUTH
facility in Albuquerque, New Mexico. The national rehabilitation firm has over 100 hospitals and
1800 outpatient facilities nationwide. Stein began offering acupuncture at the facility a year ago,
through a partnership between the rehab firm and a local acupuncture school, the
INTERNATIONAL INSTITUTE OF CHINESE MEDICINE. Steins position is 25 hours per week
and involves both inpatient and outpatient services. A massage therapists and tai chi instructors
were more recently added to the services. Stein said credentialing wasnt as difficult as (he)
thought, recalling that the entre was achieve through a marketing director who attended one of
Stein seminars and championed the process. He reports that the firm is observing developments
with the intent to consider expansion in other parts of the system. 505-344-9478
D.
DISCUSSION: BRIDGE CLINICS AND INTRA-GRATIVE FACILITIES
A call to THE INTEGRATOR for integrative medicine clinic business consultant NANCY
SCHULMAN led to an interesting exchange regarding the pros and cons of adding CAM
providers to conventional medical practices, or creating focuses integrative medicine clinics.
SCHULMAN, who has consulted on both types of projects, refers to the former as bridge clinics.
The question is: which will lead to greater integration? An acupuncturist sharing space with 17
medical doctors may eventually be viewed as valuable, and a referral option for a dozen of them.
Integrative clinics on the other hand, in experience to data, are often without significant referral
from MDs and DOs, offering an experience of intra-gration -- between and along providers
inside the clinics -- rather than inter-gration with other community practitioners. Schulmans
clients have includes DENVER PAIN MANAGEMENT, a couple of stand alone clinics, and most
recently a local health system using an add a provider model. For Schulman:
2.
PERSPECTIVES ON POLITICAL CLOUT OF THE CAM PROFESSIONS
A open letter to his profession from AMERICAN CHIROPRACTIC ASSOCIATION executive

GARRETT CUNEO included a useful chart on what Cuneo called the relative strength of the
other organizations that are competing with us over the same health care dollar. The data is
from the Association Yellow Book:
Name
Members
Employees
American Medical Assn

American Osteopathic Assn
American Physical Therapy Assn
American Podiatric Medical Assn
American Psychological Assn
American Chiropractic Assn
International Chiropractors Assn
297,000
29,757
74,000
10,200
155,000
18,000
8,000
1,200
133
168
55
467
40
14
Annual Budget
$190 million
$8.7 million
$27 million
$8 million
$55 million
$6.5 million
$2.5 million
COMMENT: An INTEGRATOR survey 1.5 years ago found budgets of the other leading CAM
professions to all be under $1-million except the AMERICAN MASSAGE THERAPY
ASSOCIATION, which had total revenues of roughly $8 million. The relative dollars and staffing
available underscore both guild inequities and, more importantly, the financial problems which
support a stronger profile in the integration discussion for the ideas and philosophical approaches
of the CAM professions. Economically, the integration conversation is significantly imbalanced
from the start. The inequities are further exacerbated by the extremely low levels of federal
government investment in the development of the distinct CAM professions. Addressing this
imbalance should be a core issue for the WHITE HOUSE COMMISSION, and for lawmakers.
3.
CONFERENCES: PROSPECTIVE MEDICINE, ACUPUNCTURE RESEARCH

th
A. The 11 Northwest Regional Acupuncture Conference in Portland on October 13-15 will

include programs on research, insurance and integrated care. Sponsors are OREGON COLLGE
OF ORIENTAL MEDICINE, OREGON ACUPUNCTURE ASSOCIATION, and the NATIONAL
SPORTS ACUPUNCTURE ASSOCIATION. $255. 503-253-3442 x 129
B. SOCIETY OF PROSPECTIVE MEDICINE meetings in Pittsburgh September 23-26. In a
note from SPM board member RICHARD LIPPIN, MD, medical director for EARTHMED, SPM is
described as being in its 35th year and dedicated to advancing research on the assessment
tools, interventions and educational strategies necessary to support prospective ("looking
forward") medicine practice. The organization looks to have significant overlap with CAM
interests. www.spm.org
C. The SOCIETY FOR ACUPUNCUTRE RESEARCH will hold its annual Symposium in
Baltimore on October 21-22. Co-sponsor is the UNIVERSIYT OF MARYLAND. Among speakers
are CHRISTINE GOERTZ, DC, PhD, with the NIH NCCAM, and BRIAN BERMAN, MD, and
HUGH MACPHERSON, PhD, on innovations in acupuncture research.
www.acupunctureresearch.org or Howard Moffet, LAc, at 415-554-0154.
4.
MISCELLANEOUS: HBMN, CAM DOCUMENTARY, COMMISSION APPOINTEE, PLUS
A. The HOSPITAL BASED MASSAGE NETWORK which folded as a newsletter last year has
opened up shop online at www.hbmn.com. The labor-of-love newsletter under LAURA KOCH,
RN, claims connections to 90 hospital programs nationwide.
B. A significant documentary on CAM will air 10 times on Fox the week of October 2. The
documentary, funded in part through a grant from NCMIC GROUP, is the brainchild of LOU
SPORTELLI, DC, and was created by IRV DAVIS. The program will air on Mon, Wed, Fri, Sun at
9:30 PM EST, and again at 12:30AM EST.
C. The rumored appointment of VERONICA GUTIERREZ, DC, to the WHITE HOUSE
COMMISSION ON CAM POLICY is intriguing. Gutierrez is a board member of the WORLD
CHIRORPACTIC ALLIANCE, a dissident organization which opposes the chiropractic
professions leading professional organization, the AMERICAN CHIROPRACTIC ASSOCIATION
which it views as medicalizing the profession. In its literature, the WCA appeals to passionate,
purpose driven, subluxation-based chiropractors. Though based in Washington state, Gutierrez
has not been active in any of that states significant, multi-stakeholder integration initiatives. In
other Commission related news, a first in a series of public hearings is anticipated to be in San
Francisco, in early September. The Commission anticipates mixing regional fact-finding meetings
involving 3-4 Commissioners and staff, with full Commission hearings in DC.
D. ASPEN PUBLISHING is now marketing a trio of books in cooperation with the AMERICAN
HOLISTIC NURSES ASSOCIATION. The trio include: Holistic Nursing: A Handbook for
Practice, Third Edition, Core Curriculum for Holistic Nursing, and AHNAs Standards of
Holistic Nursing Practice. For the AHNA, 800-278-AHNA. For Aspen: 800-638-8437.
E. Attorney and lobbyist TONY MARTINEZ has taken a position as vice president for
government affairs with AMERICAN SPECIALTY HEALTH. Martinez came into leadership
nationally in work to pass the 1994 Dietary Supplement Health and Education Act. Hes since
been instrumental in work on the legislation to create the NIH NCCAM. Martinez has been
working with ASH on a range of issues as an attorney and lobbyist in recent months, including the
successful effort to place ASH CEO GEORGE DEVRIES on the WHITE HOUSE COMMISSION.
F. The AMERICAN ASSOCIATION OF NATUROPATHIC PHYSICIANS has set up its new
office in the Beltway. Contact is: 8201 Greensboro Drive, Suite 300, McLean, Virginia 22102.
Phone: 703-610-9037; FAX: 703-6109005, and E-MAIL: info@AANP.com.
End, Industry/Health News File #66, August 15, 2000
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FAMILY MEDICINE CAM CME GUIDELINES: DOUBLE STANDARD?

ACAM: MEDICAL BOARDS HOT LIST OF QUESTIONABLE CAM TREATMENTS
CHIROPRACTORS SUE BLUES PLANS: ACA-VCA/TRIGON, PCA/INDEPENDENCE
WHITE HOUSE COMMISSION TOWN HALL MEETINGS
CAM PROFESSIONS: NEVADA DOCS/MD CAM, FLORIDA DOCS/ACUPUNCTURE
DOT-CAM: MOTHERNATURE OFFER, WHMD ADVISOR DISCONTINUED, PLUS

COMMENT: While working this week on a white paper documenting the May 2000 Integrative
Medicine Industry Leadership Summit, I was struck, again, by the metaphors of embattlement
used by leading integrators: an HMO described as a battleship, a nurse group seeking a nonthreatening way to present CAM to physicians, and a leading researcher referencing the need to
take an aikido approach. The language of battle is commonplace. (See June INTEGRATOR,
lead story.) In this News File are confrontational legal tactics from the American Chiropractic
Association. This approach is questioned by many. Is it necessary? Yet one must honestly ask
where our nations fits-and-starts of integration would presently be had the ACA not successfully
waged and won its 10 year anti-trust suit against the AMA (Wilk versus AMA)? Where would
coverage of CAM be had not professional associations, backed by consumers, successfully
forced insurance coverage through mandates? Calls of CAM integration activists to transform
American healthcare often fail to acknowledge that the transformed landscape needs to be
wrested from the present policies, prejudices, behaviors and, quite often, present occupants.
John Weeks
_______________
1.
FAMILY MEDICINE CAM CME GUIDELINES: DOUBLE STANDARD?
The issues surrounding approval of continuing education credits in CAM are the focus of an
article in the AMAs AMERICAN MEDICAL NEWS (CME Sleuths: Courses that promote
unproven, dangerous or outdated medical practices are under scrutiny by accrediting
organizations and medical licensing boards, by Jay Greene, August 14, 2000, page 10-11). The
writer notes that the FEDERATION OF STATE MEDICAL BOARDS has, since 1997, been
questioning the lack of content validation of some CAM courses. The Federation questions the
appropriateness of some CME courses on CAM which physicians are using for re-licensing. The
AMERICAN ACADEMY OF FAMILY PHYSICIANS is developing a new accrediting strategy for
CME under the direction of vice president of education and science NORMAN KAHN, MD. Two
other significant accreditors, the ACCREDITATION COUNCIL FOR CONTINUING MEDICAL
EDUCATION and the AMERICAN OSTEOPATHIC ASSOCIATION, are following the AAFPs
lead. Kahn characterizes the standards this way: We dont pass judgement on alternative
therapies. But we will not accredit dangerous medical practices. However. The AAFP found, on
reviewing 100 alternative medicine courses, that a significant minority of the (CME) providers
gamed the system quite badly, in Kahns reported words. Under the new standards, courses
must be either evidence-based or they could contain customary and generally accepted
medical practices. A third category is the for therapies which are not dangerous but not evidence
based nor customary, but is only for elective credit. The article notes that the AAFP may also be
developing a list of what they consider to be dangerous courses. Two examples noted:
Chelation for arteriosclerosis and craniosacral manipulation. A physician opponent of the new
standards was quoted as saying that the standards may limit teaching of the artful sides of
medicine: Medicine is an art and not a flow chart process with checklist items. COMMENT:
Approval of CME is clearly on of the gates to the Kingdom of mainstream practice, approval,
coverage and acceptance. INTEGRATOR readers will know that conventional medicine has until
now drawn a line in the sand between education about CAM and education in how-to provide
clinical CAM services. This new standard is a refinement. Yet it unfortunately appears to be
institutionalizing a double standard. Approval of courses that focus on customary and generally
accepted medical practices means that time-tested conventional practice can be taught and
approved whether or not evidence-based. But that which is time-tested and acceptable to
alternative providers, but not evidence-based, is excluded -- except, perhaps, under the elective
category. Under this standard, whats good for the goose is, well, good for the goose.
2. ACAM: MEDICAL BOARDS HOT LIST OF QUESTIONABLE CAM TREATMENTS
An e-report from the AMERICAN COLLEGE FOR THE ADVANCEMENT OF MEDICINE, a
national organization representing CAM-oriented physicians, recently published a list of what it
believes the FEDERATION OF STATE MEDICAL BOARDS views as the 10 deadly sins in CAM
practice. The 10 focal areas listed by ACAM are: chelation therapy, electronic diagnostic devices,
clinical ecology (including Candida treatment), vitamin/mineral/herbal sales in physicians offices,
homeopathy, prolotherapy, certain CAM laboratory tests, diagnosis/treatment of chronic fatigue,
cancer treatment, and alliances between physicians and chiropractors (particularly in the areas of
pain and disability.)
3.
CHIROPRACTORS SUE BLUES PLANS: ACA-VCA/TRIGON, PCA/INDEPENDENCE
A. The AMERICAN CHIROPRACTIC ASSOCIATION and the VIRGINIA CHIROPRACTIC

ASSOCIATION filed a suit in federal court against Virginia-based TRIGON HEALTHCARE and
the NATIONAL BLUE CROSS BLUE SHIELD ASSOCIATION, accusing the plans of illegal acts
in chiropractic management practices. Trigon is the second largest publicly-traded Blues plan in
the nation. The suit follows a similar ACA action against the US DEPARTMENT OF HEALTH
AND HUMAN SERVICES which claimed the Medicare+Choice guidelines also illegally limit
chiropractic services. Trigons chiropractic benefit, until recently managed by AMERICAN
CHIROPRACTIC NETWORK, was taken over this year by AMERICAN SPECIALTY HEALTH
NETWORKS. Targeted is a $500 reimbursement cap that Trigon allegedly has imposed on
"manipulation services" performed by chiropractors but not by other healthcare providers, such as
osteopaths. The suit also asserts that Trigon pays chiropractors 40% less than medical doctors
for the same or similar services. According to a Reuters report, Trigon views the suit as without
merit. The ACAs challenge is led by GEORGE MCANDREWS, the lead attorney in the Wilk vs.
AMA lawsuit and also the lead counsel in ACA's litigation against HHS. The suit, like Wilk, posits
the existence of a conspiracy against chiropractic. DOUGLAS COX, DC, president of the VCA,
states: Managed care groups like Trigon and the national Blue Cross Blue Shield association
have been conspiring with managed care bureaucrats and medical doctors to keep the
chiropractic profession down -- to keep us from encroaching on the medical establishment's
market share." ACA president JAMES MERTZ, DC, calls the suit by far the most significant legal
action ever taken by our profession against the insurance industry." For the ACA: 800-986-4636.
B. The PENNSYLVANIA CHIROPRACTIC ASSOCIATION filed suit again INDEPENDENCE
BLUE CROSS for improperly denying needed chiropractic care to its patients in order to
maximize profits, according to an August 22 release. Joining the PCA in the suit were the
SOUTHERN NEW JERSEY CHIROPRACTIC SOCIETY, two individual chiropractors and two
former health plan subscribers. The suit targets a IBC pre-certification process which the PCA
says is aimed at discouraging or denying coverage for chiropractic services. Also named are
nine IBC subsidiaries: AmeriHealth, Inc.; Keystone Health Plan East, Inc.; AmeriHealth HMO,
Inc.; Healthcare Delaware, Inc.; American Health Alternatives; AmeriHealth Insurance Co.; QCC
Insurance Co.; Vista Health Plan, Inc.; and AmeriHealth Administrators. The PCA action follows a
failed attempt to resolve differences face-to-face, according to the PCA. At issue are an array of
IBC management strategies including refusal to pay for certain services, limits on the number of
treatments, use of nurse reviewers rather than chiropractors in pre-certification denials, and
deeming as ineffective chiropractic treatment progress which the PCA views as successful care.
IBC responded with an August 23 statement saying that the plan is neither surprised nor
intimidated by this action. IBC notes that while similar issues were brought to the attention of the
American Accreditation HealthCare Commission/URAC during IBCs accreditation hearings last
year, and IBC was approved.
4.
MIDWIFERY: ACNM AGAINST C-SECTIONS; HOMEBIRTH EDUCATION ADVANCES
A.
NURSE MIDWIVES SPEAK OUT AGAINST GROWING C-SECTIONS
Claiming that women are not getting the whole story, the AMERICAN COLLEGE OF NURSE
MIDWIVES criticized the alarming call from some physicians that women should be given the
opportunity to make a choice between a vaginal birth and a cesarean section. In an August 29
release, ACNM president JOYCE ROBERTSM CNM, PhD, stated: "We are on the verge of
surgically removing a baby just for convenience. The ACNM release came on the heels of a
study in JAMA which found that women who had cesarean deliveries were almost twice as likely
to be rehospitalized than women who had vaginal deliveries.( Lydon-Rochelle M, Holt VL, Martin
DP, Easterling TR. Association between method of delivery and maternal rehospitalization. JAMA
2000;283:2411-2416.) Roberts states: "A review of the history of childbirth in the U.S. provides
evidence that recommendations for elective cesarean sections are part of a worrisome pattern.
For years women were told that cutting the vagina (an episiotomy) during child birth would
prevent problems for women in their later years. Then, they were told that once a woman had a csection she should always have a c-section. Both of these approaches have now been shown to
be bad practice." ACNM argues that cesarean section and induction of labor should be
performed only when medically indicated. In some sections of the country over 50% of women
are given c-sections. ACNMs 7,000 members provide care for 9% of the nations vaginal
deliveries. www.midwife.org; 202-728-9876
B.
EDUCATION OF EUROPEAN STYLE DIRECT ENTRY MIDWIFERY ADVANCES
The MIDWIFERY EDUCATION ACCREDITATION COUNCIL, the accrediting body representing

direct entry (non-nurse) midwifery education programs, is under review from the US
DEPARTMENT OF EDUCATION to gain formal recommendation. An INTEGRATOR interview
with JOANNE MYERS-CIECKO, MPH, director of the SEATTLE MIDWIFERY SCHOOL, found
that the DoE has been very helpful, in Myers-Cieckos words, in the process. The professions
application was boosted, according to Myers-Ciecko, by inclusion of direct entry midwives in a
recent study of midwives by the UCSF CENTER FOR THE STUDY OF HEALTH
PROFESSIONS. The PEW COMMISSION-supported study recommended growth for the
profession. A decision on MEACs status will be made in a December 2000. Myers-Ciecko also
revealed that the Seattle school she directs is initiating, in collaboration with representatives from
the MASSACHUSETTS MIDWIFERY ALLIANCE, a distance learning-based, online pilot which

minimizes onsite didactic instruction and facilitates quicker movement of students into birth
observations. Students in the new program are required to come onsite for monthly three day
intensives either in Seattle or the SPRINGFIELD COLLEGE campus in Manchester, New
Hampshire. Requirements for both observations and managements are higher for direct entry
midwives than for certified nurse midwives. www.seattlemidwifery.org COMMENT: Natural
childbirth, and especially homebirth or birth in a low-tech environment, are arguably the most
profound of natural healthcare experiences. The lesson of such a birth is that power is in the
individual and the process, rather than the physician and the machinery of obstetrics. Yet natural
childbirth is not generally listed among the alternative approaches which constitute CAM. An
argument for embracing midwifery as part of the CAM movement is that the ability to respect the
bodys natural ability to heal -- a core principle of most CAM providers in future healthcare
decision processes may never quite recover from high-tech obstetrics lesson that the body cant
give birth naturally.
5.
WHITE HOUSE COMMISSION TOWN HALL MEETINGS
The WHITE HOUSE COMMISSION has announced the first of its Town Hall meetings, to be held
in San Francisco on September 8. The next meeting is scheduled for October 30-31 in Seattle.
The Commission has an electronic mailing list for those interested. Contact is MICHELE M.
CHANG, MPH, executive secretary, at 301-435-6232.
6.
CAM PROFESSIONS: NEVADA DOCS/MD CAM, FLORIDA DOCS/ACUPUNCTURE
A. The CALIFORNIA SOCIETY OF ORIENTAL MEDICINE AND ACUPUNCTURE recently

reported that the FLORIDA MEDICAL ASSOCIATION is suing the FLORIDA BOARD OF
ACUPUNCTURE to limit acupuncturists scope of practice, particularly in the area of ordering lab
tests. AMA has recently resolved that only a MD, DO, or dentist should be able to order lab tests.
800-477-4564.
B. The NEVADA BOARD OF MEDICAL EXAMINERS has recently approved new rules for
medical doctors who use unconventional methods. The new rules require physicians using
unconventional methods to keep detailed records, get informed consents from patients, and say
whether conventional treatments were tried. Board member DON BAEPLER, MD, took the lead
on the rule writing. Nevada is one of three states -- the others are Arizona and Connecticut -which have separate homeopathic medical boards. The states BOARD OF HOMEOPATHIC
MEDICAL EXAMINERS and the conventional medical board had been in conflict over scope of
practice issues.
7.
DOT-CAM: MOTHERNATURE OFFER, WHMD ADVISOR DISCONTINUED, PLUS
A. SITESTAR, a California investment firm offered MOTHERNATURE.COM a $11.4 million

buy-out offer. The offered share price was at 75 cents, a 50% premium over the stock value on
August 24. The company hasnt yet made money losing $ 8.9 million on sales of $ 3.4 million..
for the quarter ending June 30. The firm had roughly $30 million cash on hand as of the filing.
MotherNatures board was reportedly evaluating the offer.
B. MICROMEDEX has joined the growing list of firms offering an interactions database for
professions. The firm recently introduced AltMed-REAX.
C. WHOLEHEALTHMD.COM has announced to subscribers of its hard-copy consumer
newsletter, WholeHealthMD Advisor, that the newsletter will discontinue publication following
the September issue. The explanation: The economic realities of launching a new newsletter in
todays media climate make it impossible for us to continue to publish the Advisor. Subscribers
will receive the Berkeley Wellness Letter.
D. The September issue of Forbes magazine has reviews various consumer sites. Among
those applauded are The Natural Pharmacist, EarthMed, and WholeHealthMD.
(www.forbesbest.com)
E. According to an August 8 announcement from the firm, WALGREENS pharmacy patients
can now add information on herbs and OTCs to their online pharmacy profiles. The new data is
intended to allow the firms pharmacists to identify possible drug interactions.
End, INDUSTRY/HEALTH News File #67
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INDUSTRY/HEALTH NEWS FILE #68, September 11, 2000
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TWO CANCER PROGRAMS: MD ANDERSON, SLOAN KETTERING

TAPESTRY GROUP: TEACHERS CONTRACT, MEDICATION REDUCTION
GROUP SEEKS DEMONSTRATION PARTNERS FOR HEALTH COACH PROGRAM
MANAGED CARE: PRISM/HIP, AMI KICKS OFF PPO, IBC/AMERIHEALTH IN DISCOUNT
MEDIA: VICUS/NCBTMB, DILLARD/ONHEALTH, COHEN/CLINIC RISK
EDUCATION AND CONFERENCES: HARVARD, UCLA, SLOAN KETTERING
MISCELLANEOUS: WELLCALL, NATIONAL UNIVERSITY, MARTINEZ/ASH

________________
1.
TWO CANCER PROGRAMS: MD ANDERSON, SLOAN KETTERING
A.
MD ANDERSON: CAM EDUCATION PROGRAM MODEL
MD ANDERSON, the Houston, Texas-based cancer center, is fully funding a body-mind oriented
complementary medicine education 2700 square foot center, PLACE OF WELLNESS, which has
had 10,000 patient visits as of the end of August. The program offers between 70-90 programs a
month to the cancer centers huge patient census of 1200-1800 per day according to program
administrator JUDY GERNER. Most are individual sessions rather than serial programs, because
of the transient nature of the patient population and the nature of cancer patients: Sometimes
they just dont feel right. The cost of the Place of Wellness to MD Anderson is probably
$300,000-$350,000 each year, Gerner told THE INTEGRATOR, mainly representing three line
items: a $60,000 building and overhead allocation, staff (a part of Gerners salary and three other
FTEs), and a management and operations account of $35,000. Gerner, whose other
responsibilities include managing a cancer info-line the MD Anderson Patient Support Network,
which Gerner credits with birthing the Place of Wellness. She laughs: Nothing I am responsible
for is a money maker. Keeping costs at the Place of Wellness to a minimum is a speakerfacilitator plan which leans heavily on full-time MD Anderson staff, a pool of 10,000 including 700800 physicians. Outside facilitators often donate their time, according to Gerner, who has also
raised $70,000 in donations. Why the institutional support? Gerner notes one possible, indirect
financial benefit: when center attendees need additonal services they are referred to MD
Anderson staff. Gerner attributes support to a philosophy of patient care: MD Anderson truly
believes we must care for the whole individual. (MD Anderson president) Dr. John Mendelsohn is
fully supportive. Gerner notes, however, that the programs have not yet penetrated very deeply
into physician practices: The percentage of those coming through (MD Anderson) who use our
services is incredibly small. Only a very small percentage of physicians refer. A tiny in-patient
component has been initiated at the conservative center, starting with music therapy in the ICU
and hopefully relaxation massage in the waiting rooms. The front-edge debate is over use of
therapeutic touch, which is quietly being delivered in some places in the sprawling facility but is
not formally offered. Gerner is completing an in-depth analysis of all the CAM quietly being
offering at the site at this time. 800-345-6324mdanderson.org
B.
MEMORIAL SLOAN KETTERING CHARGES FOR CAM SERVICES
The Fall 2000 issue of the Massage Therapy Journal, a publication of the AMERICAN
MASSAGE THERAPY ASSOCIATION, includes a 45 page, 6 article section on massage in
cancer treatment. One article looks at the massage in the INTEGRATIVE MEDICINE SERRVICE
program at the MEMORIAL SLOAN KETTERING CANCER CENTER. Massage is offered at all 3
MSKCC sites, boith inpatient and outpatient. The article also includes fee schedules for various
services. Interestingly, they vary, depending on the site. At the inpatient site: Massage in
inpatinet, $45 (45 minutes), reflexology $45, acupuncture initial visit #130, acup. follow-up $110.
Ast the chemotherapy suites: massage $45, relaxation $45, massage package of 10 sessions
$400; and at the IMS: massage $90 (60 minutes), relaxation $80, Nutrition $90, Music (individual)
$80; Music (group) $15; art 9Individual) $80; art/group $15; acupuncture $130. Classes run $10$15. Packages are available: $720 for massage/relaxation/music/art (10 visits), fore 10 classes,
$80. Chanting and toning classes of 10 $120. The article notes that MSKCC will be offering
courses on massage for cancer patients. (See EDUCATION.)
2.
TAPESTRY GROUP: TEACHERS CONTRACT, MEDICATION REDUCTION
THE INTEGRATOR recently learned that the union-oriented marketing focus of Boston,
Massachusetts-based TAPESTRY GROUP has secured a contract with the MASSACHUSETTS
TEACHERS ASSOCIATION. The firm will manage an affinity program through its clinics and a
statewide network of CAM providers for the 90,000 member organization representing 200,000
covered lives. Tapestry will be wired into their website according to MICHAEL SHOR, MPH,
Tapestrys co-founder. The program is two-tiered with a premium card which gives members
access to additional benefits 9WHAT ARE THEY??)Shor also says employer interest in
Tapestrys services is up significantly, with more in the last three months than the previous nine.
Tapestrys clinics distinguish themselves, particularly among clinics not directly owned by
hospitals, by their high percent of patients which are MD referred, now at 24 percent. The firm
now is a formal affiliate of the MASSACHUSETTS COLLEGE OF PHARMACY. One new
program noted on the firms website is a Medication Reduction Program, co-directed by LANA
DVORKIN, PHARM D, with MCP, and Tapestry clinical director JERRY CANTOR, LAC. Like the
Longmont program, no medical doctors are onsite. tapestrycare.com
3.
GROUP SEEKS DEMONSTRATION PARTNERS FOR HEALTH COACH PROGRAM
A group called the WORLD HEALTH AND HEALING COLLABORATIVE is looking for health
system partners in developing a "starter kit" for integrating health coaching into health care
systems and integrative centers. WHHC presently has two systems working with them to pilot the
program -- MERCY in Grand Rapids, Michigan, and SWEDISH AMERICAN in Rockford, Illinois - and is seeking 4-6 others. The WHHC health coach training program unites principals of
busienss coaching with integrative medicine principles, according to WHHCs co-founders
LINDA BARK, RN, and REMA BIELKUS. The starter kit, which will be created as health coaching
is integrated into the participating systems, will eventually include such things as job description,
HR issues for leveling the position among other practitioners, holistic assessments, administration
forms and processes, billing, codes, cost benefits, development of in house support for the role,
marketing materials and outcome research. The kits are viewed as is an attempt to leverage
the value of the health coaching inside the system, states Bark. Involved health systems become
co-developers and participate in various benefits. 878 PHONE
4.
MANAGED CARE: PRISM/HIP, AMI KICKS OFF PPO, IBC/AMERIHEALTH IN DISCOUNT
A. Lancaster, New York-based PRISM NETWORK, INC., recently inked a contract to managed
chiropractic care for the 700,000 members of HEALTH INSURANCE PLAN OF NEW YORK The
management is direct access with a required pre-authorization. The networks June-July
newsletter also noted that the firms executives are involved in educating third year medical
students on chiropractic treatment at the UNIVERSITY OF BUFFALO. In addition, researcher
PAUL BLUESTEIN, DC, is leading a team that is attempting to establish standardized protocols
for the treatment of a specific diagnosis which can be used as a tool to compare again individual
provider practices. A sub-set of providers is being used to develop the protocol strategy before
rolling out the measuring project more broadly. Bluestein chairs the networks quality assurance
committee. 716-681-1112
B. Chicago-based ALTERNATIVE MEDICINE INC, developer of a unique CAM product which
utilizes chiropractors as primary care providers (INTEGRATOR, January 2000), has rolled out as
new preferred provider product which also promises to fully integrate conventional and CAM
services using the DC-PCP with MD back-up and medical direction. The benefit, which targets
both self-funded plans and insurers, was quietly introduced last spring and has already been
embraced by CHICAGO TRANSIT AUTHORITY, ILLINOIS PARK EMPLOYEES HEALTH
PLAN and COMMONWEALTH EDISON, according to a mid-August release from the firm. The
release includes a 24 carot quote from Commonwealth Edisons director of health care,
KATHLEEN ARCHIBALD SIMON: I believe wecan reduce costs, improve health and improve
productivity and also improve attitudes by incorporating alternative medicine with traditional
medicine into our medical plan. 847-675-2580
C. The 2.6 million members of Philadelphia-based INDEPENDENCE BLUE CROSS will have
access to a discount affinity product through San Diego-based AMERICAN SPECIALTY HEALTH
NETWORKS. the will IBCs president and CEO G. FRED DIBONA, JR, explianed the move this
way in a September 7 release: "Independence Blue Cross has recognized its members' call for
more choice and for access to care beyond traditional medicine." The program has a 30%
provider discount in the 9 county area of their largest membership. In a related statement, the 312
members of IBC affiliate in New Jersey and Delaware, AMERIHEALTH, will offer members a
similar benefit.
5.
MEDIA: VICUS/NCBTMB, DILLARD/ONHEALTH, COHEN/CLINIC RISK
A. An article at Vicus.com (August 24, 2000) notes that the NATIONAL CERTIFICATION
BOARD FOR THERAPEUTIC MASSAGE AND BODYWORK is seeing a 14% increase in
certification tests being taken this year, to 1000 per month from 600 five years ago. Testing
jumped after 1995 when NCBTMB moved to an electronic format.
Vicus.com/news_views/news_detail/1,1042,19589,00.html
B. JAMES DILLARD, MD, DC, medical director for CAM at OXFORD HEALTH PLANS, may be
the top CAM spokesman on the world wide web. Dillard is a visible presence on the homepage
of the leading health site, ONHEALTH.COM, and also assists the firm in qualifying its CAM
content. OnHealth, which has over 9 million unique viewers each month, attributes some of its
growth to the CAM interest of the users. The firm is involved in merger with WEBMD, of
HEALTHEON/WEBMD, the #2 health site.
C. The July 2000 issue of the Orange County Lawyer, a publication of the Orange County Bar
Association, includes a useful article by attorney MICHAEL COHEN entitled Advising Health
Care Institutions Integrating CAM Providers. Cohen uses case law in Michigan to explore the
complexity of allowing acupuncture services in that state. Cohen notes that the legal framework
does not often support optimal care integration: The legal rules are built by accretion and are not
based on a rational, systematic approach to human health. www.ocbar.org Cohen is at
lawmed2000@aol.com.
D. The September 2000 issue of Natural Business includes a profile of a Boulder, Colorado
start-up BOULDERHEALTH NATURAL PHARMACY which is incubating a pharmacy model
which will also have rooms for customers to privately consult with onsite pharmacisits,
nutritionists herbalists and other holistic healthcre professionals in the 3800 square foot
environment. Founder nasd co-CEO BARRY PERZOW projetcs 100 stores nationally in 2-4
years through targeting the nations 30,000 independent pharmacists. The issue also includes a
useful interview with retired BASTYR UNIVERSITY president JOSEPH PIZZORNO, ND, is which
he talks about the short-falls in the evolving relationship between the natural products industry
and the CAM movement. He views the consolidation of the natural foods industyr as limiting
further already sparse funding for CAM education, researhc and political initiatives.
6.
EDUCATION AND CONFERENCES: HARVARD, UCLA, SLOAN KETTERING
A. HARVARD MEDICAL SCHOOL is now offering a videoconference module for CME based
on 14.75 lecture hours in Eisenbergs annual course. $595; 617-432-1525.
B. The UCLA CENTER FOR EAST-WEST MEDICINE is offering a one day course on October
29, 2000 entitled Integrative East-West Medicine: Blending Chinese and Western Mediicne to
Enhance Patient Care. The focus this year, the fifth for the conference, will be on management
of patients with chronic pain using integrative approaches. The meeting is offered in collaboration
with the ASIAN PACIFIC AMERICAN MEDICAL STUDENT ASSOCIATION. A flier from UCLA,
where the integrative program, in operation since 1993 and directed by KA KIT HUI, MD, FACP,
notes that 150-200 attendees are anticipated. The program is also seeking corporate sponsors at
$500 donation and up. 310-206-1876
C. MEMORIAL SLOAN KETTERING CANCER CENTER is offering a Medical Massage for the
Cancer Patient course on October 28-30. Included in the multi-faceted course are legal-ethical
issues, self-care starategies for the therapist, contraindications, demonstration as well as as
clinical indications. Ciost: $350, plus $15 for an elective . 212-639-8629
7.
MISCELLANEOUS: WELLCALL, NATIONAL UNIVERSITY, MARTINEZ/ASH
A. San Francisco-based WELLCALL notes in a summer newsletter notes that employers are
increasingly requesting onsite preventive health programs and internet-based resources,
calling these part of an emerging trend among employers to support health self-management.
WellCall, which provides these services, is expanding its onsite massage therapy and its
interactive online services. www.wellcall.com
B. Chicago-based NATIONAL COLLEGE OF CHIROPRACTIC officially became NATIONAL
UNIVERSITY OF HEALTH SCIENCES on September 1, 2000, in a move which announced the
institutions intention to educate a broad array of natural health providers. Current programs are
chiropractic, in a College of Professional Studies, and massage in the College of Allied Health
Sciences, with new enrollment at 104 and 40, respectively, right on target according to
amessage from the instiotutions president JAMES WINTERSTEIN, DC.
C. CAM and natural products advocate, Congressional lobbyist and attorney TONY
MARTINEZ, one of the legal experts featured in the September INTEGRATOR, has takes a
position as vice president for governmental affairs for AMERICAN SPECIALTY HEALTH, INC.
Martinez, who rose to prominence as a natural products industry advocate in D.C. during the
campaign which led to the 1994 Dietary Supplement Health and Education Act, has close ties to
leading CAM-supportiv politicians in Congress. Martinez has consulted with ASH over the past
year and is credited for paying the groundwork for ASH CEO GEORGE DEVRIES appointment
to the WHITE HOUSE COMMISSION ON CAM POLICY. Martinez, who will also be involved with
the firm in state activities, will continue to work out of his Washington, D.C. offices.
D. The word in Washington, DC, from CANDACE CAMPBELL, executive director of the
AMERICAN PREVENTIVE MEDICAL ASSOCIATION, is that the funding for NIH NCCAM is
expected to jump from $70 million to $100 million in 2001.
Ends, News File #68, September 11, 2000

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INDUSTRY/HEALTH SUBSCRIBER

FEEDBACK LOOP #1, JANUARY 1999

TOWARD INDUSTRY COOPERATION ON ADD-ON VS REPLACEMENT (AOVR)

Are you interesting in I/H collaboration on AOVR? Y ______ N ______

If YES, would you be interested in a meeting at NMHCC-Atlanta? Y ______ N ______

Are you currently involved in an AOVR research?

Title _______________________ Phone ____________

NEWS FILE #2, JANUARY 1999

-- John Weeks, Publisher-Editor

$70 initial; $50

-- John Weeks, Publisher-Editor

ASHP INITIATES BUYHEALTH.COM ONLINE PROGRAM

GOVERNMENT AFFAIRS BRIEFS

STANFORD-HARVARD CONFERENCE FIRMS UP

Business Developments (Blues/Alternare, Marino Center)

-- John Weeks, Publisher-Editor

CHANGE IN BLUES CONSORTIUM WITH ALTERNARE

CAM PROFESSIONS & ORGANIZATIONS

APMA TO RE-INTRODUCE ACCESS TO MEDICAL TREATMENT ACT

HEALTHCARE FORUM: CONTENT HIGH -ATTENDANCE LOW

MEDIA & MISCELLANEOUS

US PHARMACOPOEIA IN NEW DIETARY SUPPLEMENT DIVISION

Integrative Clinic Developments (INTEGRATOR Report #2, ACHM)

INTEGRATIVE CLINIC DEVELOPMENTS

SPECIAL TO I/H SUBSCRIBERS: INTEGRATOR BENCHMARKING REPORT #2

THREE PUBLIC-PRIVATE COALITIONS

WASHINGTON STATES KING COUNTRY INTEGRATIVE MEDICINE 2010

CAM PROFESSIONS & ASSOCIATIONS

AANP WEBSITE REPORT

Business Developments (WellCall, Integrated Health Plan, CHP)

-- John Weeks, Publisher-Editor

COMPANY, INTEGRATIVE MEDICINE COMMUNICATIONS, INTEGRATIVE MEDICAL ARTS

FEEDBACK-LOOP: AMERICAN CENTERS FAILURE

Landmark Report II on HMOs

LANDMARK DEVELOPS GUIDELINES FOR SENIOR CAM

PITTSBURGH and DUKE UNIVERSITY. INTEGRATOR advisor PRESTON GEE authors a

Report #2 on Landmark Healthcare Report: #2

As always, your feedback is welcome.

-- John Weeks, Publisher-Editor

LANDMARK II, TAKE 2

BUSINESS DEVELOPMENTS AND MISCELLANEOUS

ALTERNATIVE LINK & CITX IN WEB DEAL

TIBER GROUP REPORTS BIG ACHE CAM INTEREST

Est. Annual Service

Source: Estimates in Nutrition Business Journal, January 1999.

REGARDING THE ACTUAL STATUS OF CAM IN THE MEDICAL SCHOOLS

movement to include CAM as electives is a beginning, the programs appear to be best

LANDMARK II, TAKE 2

Landmark Healthcare on HMO Coverage of Alternatives: Report #2

Members, employers, groups asked

Source: Landmark Healthcare 1999

Managing CAM and double standards

Based on non-specific bar chart

What is coverage -- Is it as a rider, core benefit or merely discount?

NEWS FILE #9, MARCH 26, 1999

NMHCC Final Notes: Tuesday Evening Reception

-- John Weeks, Publisher-Editor

The annual MERCER/FOSTER HIGGINS NATIONAL SURVEY OF EMPLOYER SPONSORED

Percentage of Employers Offering

Are you interesting in I/H collaboration on AOVR? Y N

If YES, would you be interested in a meeting at NMHCC-Atlanta? Y N

Title ___________ Phone