The Institute of Medicine released a new report last week calling the U.S. health care system overly complex, inefficient, and wasteful. But there’s hope for a turnaround, it said, because of advances in computer technology and in the science of organizational management.
There won’t be improvement, however, without a change in financial incentives for physicians and other providers, according to the IOM panel. It recommended that payers move away from the current system of paying for volume of services and instead reimburse physicians based on quality improvement, outcomes, and value.
Image Courtesy Sean Locke/istockphoto.com
The September issue of Health Affairs delves into the details of some of the payment reform proposals currently being tested, including accountable care organizations, bundled payments, and other value-based payment models. At a briefing in Washington, D.C., experts agreed that the key to success with these models will be giving physicians flexibility to tailor them to their own practices.
For more on that, and a rundown on the Democratic and Republican party platforms on health care, listen to this week’s Policy & Practice Podcast.
–Mary Ellen Schneider