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Beginning to See the Change We Want

An insightful article by Mark Hepler, CFO of Munson Healthcare, an 8-hospital system based in Traverse City, MI, on, reveals that health care providers, well, at least his, are beginning to make the changes that we want to see and that have, to a large extent, been spurred by the Affordable Health Care Act (see recent blog post on whether the ACA is working).

What changes are happening in how health care is delivered?

Investing in becoming clinically integrated networks vs. investing in facilities and equipment

Aligning costs with revenue to live within new payment models no longer based on fee-for-service; becoming leaner and more efficient.

Focusing on a "team effort" with physicians; getting them to help realign costs and care

The pressures put on the system for value-based purchasing by major payors, including Medicare and self-insured employers, are the primary motivator for these changes. 

Memphis Business Group on Health will continue to apply this pressure through:

Our eValue8 health plan performance evaluation where we push plans to move away from fee-for-service to value-based payment models such as bundled payments and pay for performance.

Our work to recruit Memphis-area employers to participate in the State of Tennessee's new payment model for TennCare and State of Tennessee Employee Benefits Administration (we have a working meeting scheduled for December for MBGH purchaser employer members to learn more)

Our Leapfrog Annual Hospital Survey and Hospital Safety Score initiatives which, through public reporting, shine the light on the safety and quality of Memphis-area hospitals, both of which are essential elements of value

We are beginning to see the change we want, so let's keep up our pressure so we can see it in Memphis and in the cost and quality of care, and your benefit plans!

Posted by Cristie Travis at 8:04 AM

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