The IOM has estimated that 30 to 40 percent of the healthcare dollar is spent on inappropriate or ineffective care and that this waste costs the nation approximately 300 to 400 billion dollars annually. Reforms in payment thus become a crucial component of healthcare reform. In the article, Dr. Griner from the URMC puts forward a compelling argument for adopting bundled payment system as the preferred mode of reimbursement in academic medical centers. As against the prevailing fee-for-service system in place, bundling of payments is presented to achieve results that will be in fulfillment of the goals of PPACA.
Academic medical centers (AMCs), by the very nature of their work become leaders in the provision of high quality care and cutting edge technology. AMCs also have their roots firmly entrenched in a foundation of research. Given their leadership position, these institutions become strategically suited to support the new payment initiatives and thus facilitate a transition. The article highlights some of the distinct advantages of the bundled system in the context of academic medical centers (AMCs). These range from being consistent with the core values of the AMCs to a renewed professional integration, to creating a more conducive environment for primary care providers.
It is noteworthy that the author stresses on two aspects of medical education that will be sure winners in the implementation of the payment reforms: - Teaching medical students to evaluate the economics of care and utilization of material resources. - A rejuvenated emphasis on the skills of history taking and physical examination in reaching a diagnosis rather than on the use of expensive and often unnecessary diagnostic tests. Stressing on these oft neglected nuances of care, would indeed be an investment for the future.
However, to ensure the success of this payment endeavor, policy-makers and administrators would need to address some of the challenges that include: - Physician consensus - Systems to overcome the physical enormity and complexity of units within an AMC, and thus promote a coherent system. - Adoption of a robust information technology framework and accountancy procedures that will support the complex calculations
Nevertheless, there is a growing consensus that the FFS has outlived itself. In the age of health reforms, the bundled payment system could well be a critical tool for the control of costs.
The IOM has estimated that 30 to 40 percent of the healthcare dollar is spent on inappropriate or ineffective care and that this waste costs the nation approximately 300 to 400 billion dollars annually. Reforms in payment thus become a crucial component of healthcare reform. In the article, Dr. Griner from the URMC puts forward a compelling argument for adopting bundled payment system as the preferred mode of reimbursement in academic medical centers. As against the prevailing fee-for-service system in place, bundling of payments is presented to achieve results that will be in fulfillment of the goals of PPACA.
ReplyDeleteAcademic medical centers (AMCs), by the very nature of their work become leaders in the provision of high quality care and cutting edge technology. AMCs also have their roots firmly entrenched in a foundation of research. Given their leadership position, these institutions become strategically suited to support the new payment initiatives and thus facilitate a transition. The article highlights some of the distinct advantages of the bundled system in the context of academic medical centers (AMCs). These range from being consistent with the core values of the AMCs to a renewed professional integration, to creating a more conducive environment for primary care providers.
It is noteworthy that the author stresses on two aspects of medical education that will be sure winners in the implementation of the payment reforms:
- Teaching medical students to evaluate the economics of care and utilization of material resources.
- A rejuvenated emphasis on the skills of history taking and physical examination in reaching a diagnosis rather than on the use of expensive and often unnecessary diagnostic tests.
Stressing on these oft neglected nuances of care, would indeed be an investment for the future.
However, to ensure the success of this payment endeavor, policy-makers and administrators would need to address some of the challenges that include:
- Physician consensus
- Systems to overcome the physical enormity and complexity of units within an AMC, and thus promote a coherent system.
- Adoption of a robust information technology framework and accountancy procedures that will support the complex calculations
Nevertheless, there is a growing consensus that the FFS has outlived itself. In the age of health reforms, the bundled payment system could well be a critical tool for the control of costs.