Key to Bending Health Cost Curve Lies in Policy

from tHEORetically Speaking: The HealthEconomics.Com Blog at on May 29, 2018 at 06:16PM

Health policy makers need to appeal to the business sense of cutting costs to succeed, said Dr. Farzad Mostashari, the former National Coordinator for Health IT at the Department of Health and Human Services, in a recent Fierce Healthcare article.

Mostashari said policy should drive innovation to lower health care costs. He cited file-sharing as an example of potential cost savings disregarded not because of technology but because stakeholders don’t see the financial value in sharing data. The Centers for Medicare and Medicaid Services (CMS), however is considering implemented mandatory data-sharing, and it could lead to change, according to the article.

Medicare Advantage has proven a prime example, Mostashari said. As providers are paid a flat monthly rate for each member’s care, regardless of use, the incentive to cut costs where possible drives innovation to do so.

However, he said growing monopolies could prove a sticking point.

Click here for the full article.