• A New Place for Health Care Policy Debate

    About a month or so ago, the Washington Post launched their new Health Care Rx blog, and I was asked to participate as a panelist.  Every Monday, questions are sent out, and a variety of “experts” from across the health care industry respond.  It provides a great snapshot of the many different perspectives that exist.   

     

    This week’s question:

    The Blue Dog Coalition worries the health bill in the House does not address fundamental cost drivers in the system. Is it possible to rein in costs in the current system? How?

     

    My response is now live:  It's Not About Costs, It's About Enabling Transformation

     

    My main points -- real change requires:

    • Figuring out what works (and what doesn't)
    • Enabling supply-side innovation
    • Letting consumers do some of the work that expensive health-care professionals shouldn't be doing anymore

    To read the full post, click here. Please feel free to comment with your own thoughts on how to rein in costs in the current health care system.

     

    And you can see my responses to previous questions:

    Who Pays for Whose Heath Care?  [Posted July 14]

    The political debate is often framed around covering the uninsured. At the heart of this is the supposition that health care is a moral obligation -- that everyone has a "right" to it. But it's difficult to separate the moral from the economic because there is no other "liberty" that requires payment.

     

    Defusing the Health Care Bomb  [Posted June 16]

    The "big red wire" that needs to be clipped first is the fee-for-service payment system driven by the government today through Medicare reimbursement decisions. Until that's addressed, the ticking bomb won't be stopped.

     

    Diagnosing and Treating the Health Non-System  [Posted June 7]

    We do not currently have a health system at all: it is a health non-system.

    If you want to follow the conversation, you can add the Health Care Rx blog to your RSS reader here:  http://views.washingtonpost.com/healthcarerx/atom.xml, and I will be posting summaries of my responses on this blog.

  • Health Care Needs New Rules to Enable Innovation and Reward Experimentation

    (cross-posted on Microsoft on the Issues)

     

    Technology is playing a major role in helping bring healthcare into the 21st century.  Many of us have seen it first hand in treatment from our doctors, from MRI scans to laser surgery.  

     

    But these clinical advancements represent only a small piece of what technology can do to transform health care.  The power of technology lies in the potential to transform the rest of the health care system, enabling new ways of working and communicating, new economics and new business models.  As consumers, we’ve experienced how technology impacts nearly every other area of our lives -- how we manage our financials, travel, communicate, shop and so on -- with more self-service, more control, more convenience and ultimately better value for what we spend.

     

    Similar business innovation and consumer engagement has been slow to reach health care, where many physicians still opt for a pen-and-paper over a computer to maintain patient histories and chronicle treatments.  Patients continue to navigate frustrating and hard-to-understand medical and insurance organizations, physicians don’t always talk to one another about care and medical errors, waste and duplication drain the system of resources.

     

    Today, we are finally seeing the first signs of systemic change in health care.  This change was clearly highlighted with the President’s recent visit to the Cleveland Clinic, which has leveraged technology to improve efficiency and health outcomes and give patients an active role in their health decisions.  But the Cleveland Clinic is just one example.  There are other health care institutions -- the Marshfield Clinic, Kaiser Permanente, the Mayo Clinic -- whose leaders have embraced technology to improve efficiency and quality while reducing costs.  And newer players are showcasing the possibilities brought by innovation, including virtual care from American Well and new delivery channels like Minute Clinic. 

     

    But we haven’t yet seen widespread change.  The rules governing health care simply haven't allowed this to happen.  Congress created rules that have in fact stifled innovation (e.g. Medicare) by reinforcing volume over value -- reimbursing on a per-procedure basis rather than on the number of patients who remain healthy year over year.  Now Congress needs to look to the organizations that have used technology to create a new health care reality -- such as the Cleveland Clinic -- and develop a new framework that drives value, rewards experimentation and enables innovation.  Only then will we realize the policy goals of increasing access to health care while maintaining fiscal responsibility.

     

    Reform efforts should focus on enabling the kind of transformation that Clay Christenson describes in his book "The Innovator's Prescription".  He describes how almost every other industry has been transformed -- complex, expensive products and services once only affordable to the wealthy have become accessible to the "masses" and provided by those with far less training.

    As I described in my post this week on the Washington Post’s  Health Care Rx blog, real change requires:

    • Figuring out what works (and what doesn't)
    • Enabling supply-side innovation
    • Letting consumers do some of the work that expensive health-care professionals shouldn't be doing anymore

    With our ailing economy and worsening health, it’s imperative Congress act quickly and tear down the barriers that exist to enabling innovation.