How Do We Reduce Healthcare Costs?

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The greatest challenge we face is raiding that in and raiding in that trend on spending while trying to advance quality and outcomes in the patients experience of United States citizens entering the health care systems. Can we do that more effectively? Can we do it more efficiently nd create a better outcome and a better experience for the patient?Our nation's healthcare system is presently and historically been on a foundation of fee for volume.

You do more, you get paid more, even inefficiencies and redundant services or repetitive services in healthcare are still paid for the most part. So, fee for volume is perpetuating more cost, at a non sustainable rate. In future models of payment, future models of care, there's organizations such as harm and organize around healthcare reform that we can create simplicity, that we can arguably move up upstream in the models of payment get rid of and get away from unit based volume driven payment arrangements and move up to premium based or prepaid health care models where transparency is now made to the patient, or the consumer at the point of purchase.

We've organized ambulatory care networks and modality of service to try to lower cost as allow care to be able to move from inpatient to outpatient setting certainly, the right care on the right place at the right level. And we're seeing reduction in use rates, reduction in readmission rates, getting some of the waste out of health care utilization.

And so lower rates of payment or lower trend on payment increases combined with lower utilization, the by product to those together is cost, then the trends of those Hamen is improving in the market place. I think our industry may need to think about other ways to accomplish the consumer engagement.

Perhaps, they need to be engaged and pay those apportionment of their benefit plan design at the point of purchase, when they're really engaged, when they're really making the financial obligation decision. We need to lower the cost. We need to get away from volume-driven trends.

We need to be responsible for managing care. We've established our organization to be able to do that. Now, we need to convert the payment models so that we can be paid for managing care, not simply rendering it.