SMRs and AMRs

Monday, February 22, 2010

How the G.O.P. Can Fix Health Care

By BILL FRIST, MARK McCLELLAN, JAMES P. PINKERTON, CHARLES KOLB and NEWT GINGRICH
NYT

In a bid to reopen the debate over health care reform, President Obama has arranged a televised bipartisan meeting this Thursday. Republican leaders in Congress have been invited to bring their best ideas for slowing the growth of health care expenditures and expanding the number of insured Americans. The Op-Ed editors asked five conservative thinkers to outline what they believe those ideas should be.

President Obama, Harry Reid and Nancy Pelosi have failed at health care reform. They have failed because they fundamentally don’t believe in markets, incentives and the power of hundreds of millions of people to make smart choices about their health. It’s just not in the Democratic leaders’ DNA.

Transforming health care to slow the growth of spending requires a radical restructuring of how health services are paid for. The most powerful way to reduce costs (and make room to expand coverage) is to shift away from “volume-based” reimbursement (the more you do, the more money you make) to “value-based” reimbursement.

Others will appropriately and wisely make the case for preventive care, chronic disease management, shopping for insurance across state lines, malpractice reform and the elimination of pre-existing conditions as exclusionary criteria for health insurance — all steps that I favor and that together would strengthen the health care system. But they won’t transform it. The only way to do that is to align the incentives of doctors, hospitals, pharmaceutical makers and other health care providers through value-based purchasing.

(More here.)

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