A New Form Of Healthcare Radically Reduces Costs

[xchrom]

http://www.businessinsider.com/r-new-form-of-us-healthcare-saves-money-improves-quality-one-insurer-finds-2014-10


Doctors confer in the Rehabilitation Unit of Jackson Memorial Hospital in Miami, September 30, 2013.

NEW YORK (Reuters) - In one of the largest tests of a novel way to deliver and pay for healthcare, insurer CareFirst BlueCross BlueShield announced on Thursday that 1.1 million people receiving care through its "patient-centered medical homes" last year were hospitalized less often and stayed for fewer days compared to patients in traditional fee-for-service care.

Medical homes, a centerpiece of President Barack Obama's healthcare reform, have been heralded as one of the best hopes for reducing the cost of U.S. healthcare, the highest in the world, and improving its quality, which lags that of many other wealthy countries.

Medical homes are basically groups of primary-care providers who pledge to coordinate care, adhere to guidelines meant to improve patients' health, and avoid unnecessary tests, among other steps.

According to CareFirst, its medical home program, in its fourth year, also delivered high-quality care, measured by yardsticks such as whether doctors gave recommended cancer screenings and immunizations. The organization said it saved $130 million or 3.5 percent compared to projected spending under standard fee-for-service.



Read more: http://www.businessinsider.com/r-new-form-of-us-healthcare-saves-money-improves-quality-one-insurer-finds-2014-10#ixzz373tOTNOU

[winstars]

1. Thanks Obama!!!

[zipplewrath]

2. 3.5 percent

Last edited Thu Jul 10, 2014, 01:48 PM - Edit history (1)

I'm reminded of when HMO's were all the rage. They were going to keep costs down too. Initially, there were some savings, but in the end the rate of inflation in health care continued.

3.5% is probably in essence a "one time" savings, in that this system will consistently cost about 3% less than more traditional fee for service. But it's rate of inflation will probably be the same, which is currently projected at 5 - 7%.

I will say this, whether it saves money or not, I'd betcha it is a heck of a lot better care, which if we're going to be paying this much, at least it should be GOOD care.

[xchrom]

3. i will have to say that a lot of health care costs seem more like gouging to me.

i'd like to see some way of getting to some of the cronyism that exists between doctors offices and manufacturers and suppliers.

these prices seem to go up - out of hand -- year over year -- with little good explanation.

[zipplewrath]

4. Because they can

Many countries control their health care costs by dictating prices to the suppliers. You can do that when it is "single payer" in some fashion. Here, we tend to let market forces define prices and basically that means higher costs.

[xchrom]

5. +1