Health Care Stakeholders
Groups' Health Care Savings Measures Reflect Ideas Championed by Primary Care
By James Arvantes
5/14/2009
Several major players in the nation's health care industry have vowed to strive for savings of at least $2 trillion during the next 10 years by implementing a number of measures designed to save costs and improve the quality of care.
These consensus measures -- long championed by the AAFP -- include the alignment of quality and efficiency incentives among providers, care coordination, the use of health information technology, and adherence to evidenced-based best practices.
In a May 11 letter to President Obama, (2-page PDF; About PDFs) the group of private stakeholders -- representing physicians, health care workers, payers, suppliers, manufacturers and organized labor -- pledged to "do their part" to achieve the administration's goal of decreasing the annual health care spending growth rate by 1.5 percentage points during the next 10 years. If accomplished, this would represent a 20 percent reduction in the projected rate of growth and result in a savings of $2 trillion or more during the next decade.
"We are determined to work together to provide quality, affordable coverage and access for every American," said the letter, which was signed by the AMA, the Advanced Medical Technology Association, the American Hospital Association, America's Health Insurance Plans, the Pharmaceutical Research and Manufacturers of America, and the Service Employees International Union. "It is critical, however, that health reform also enhance quality, improve the overall health of the population and reduce cost growth."
In the letter, the groups note that the "proper approach to achieve and sustain reduced cost growth is one that will improve the population's health; continuously improve quality; encourage the advancement of medical treatments, approaches and science; streamline administration; and encourage efficient care delivery based on evidence and best practice."
The stakeholders' support of the consensus measures represents "an unprecedented effort" to offer concrete initiatives to transform the nation's health care system, according to the letter.
For some of these groups, the consensus measures amount to a profound shift in their overall approach to health care -- one that should help pave the way for comprehensive health care reform, said AAFP President Ted Epperly, M.D., of Boise, Idaho.
"I am very pleased to see these groups speaking about the kinds of issues that the AAFP and primary care have been talking about for the last 20 years," Epperly told AAFP News Now. "They recognize how broken our health care system is, and its major break is around the lack of an intact, robust primary health care system."
President Obama said during a May 11 White House press conference, "(these stakeholders') efforts will help us take the next and most important step -- comprehensive health care reform -- so that we can do what I pledged to do as a candidate and save a typical family an average of $2,500 on their health care costs in the coming years."
Health care savings can be achieved by standardizing quality care, creating incentives for efficiency, and investing in proven ways to not only to treat illnesses, but to prevent them, Obama said.
The four consensus proposals put forth by the stakeholder groups are
In a May 11 letter to President Obama, (2-page PDF; About PDFs) the group of private stakeholders -- representing physicians, health care workers, payers, suppliers, manufacturers and organized labor -- pledged to "do their part" to achieve the administration's goal of decreasing the annual health care spending growth rate by 1.5 percentage points during the next 10 years. If accomplished, this would represent a 20 percent reduction in the projected rate of growth and result in a savings of $2 trillion or more during the next decade.
"We are determined to work together to provide quality, affordable coverage and access for every American," said the letter, which was signed by the AMA, the Advanced Medical Technology Association, the American Hospital Association, America's Health Insurance Plans, the Pharmaceutical Research and Manufacturers of America, and the Service Employees International Union. "It is critical, however, that health reform also enhance quality, improve the overall health of the population and reduce cost growth."
In the letter, the groups note that the "proper approach to achieve and sustain reduced cost growth is one that will improve the population's health; continuously improve quality; encourage the advancement of medical treatments, approaches and science; streamline administration; and encourage efficient care delivery based on evidence and best practice."
The stakeholders' support of the consensus measures represents "an unprecedented effort" to offer concrete initiatives to transform the nation's health care system, according to the letter.
For some of these groups, the consensus measures amount to a profound shift in their overall approach to health care -- one that should help pave the way for comprehensive health care reform, said AAFP President Ted Epperly, M.D., of Boise, Idaho.
"I am very pleased to see these groups speaking about the kinds of issues that the AAFP and primary care have been talking about for the last 20 years," Epperly told AAFP News Now. "They recognize how broken our health care system is, and its major break is around the lack of an intact, robust primary health care system."
President Obama said during a May 11 White House press conference, "(these stakeholders') efforts will help us take the next and most important step -- comprehensive health care reform -- so that we can do what I pledged to do as a candidate and save a typical family an average of $2,500 on their health care costs in the coming years."
Health care savings can be achieved by standardizing quality care, creating incentives for efficiency, and investing in proven ways to not only to treat illnesses, but to prevent them, Obama said.
The four consensus proposals put forth by the stakeholder groups are
- implement proposals in all sectors of health care and focusing on administrative simplification, standardization and transparency;
- reduce overuse and underuse of health care by aligning quality and efficiency incentives among providers across the continuum of care, so physicians, hospitals and other health care providers can work together to achieve high quality and efficiency standards;
- encourage coordinated care in the public and private sectors and encouraging adherence to evidence-based best practices and therapies that reduce hospitalization, manage chronic disease, and implement proven prevention strategies; and
- reduce the cost of doing business by addressing cost drivers in each sector and via common-sense improvements in care delivery, health information technology, and workforce deployment, as well as development and regulatory reforms.
"These and other reforms will make our health care system stronger and more sustainable," said the groups. "However, there are many important factors driving health care costs that are beyond the control of the delivery system alone."
For example, the groups said that "billions in savings can be achieved through a large-scale national effort of health promotion and disease prevention to reduce the prevalence of chronic disease and poor health status, which leads to unnecessary sickness and higher health care costs."
For example, the groups said that "billions in savings can be achieved through a large-scale national effort of health promotion and disease prevention to reduce the prevalence of chronic disease and poor health status, which leads to unnecessary sickness and higher health care costs."
