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	<title>Comments on: HEALTH REFORM: Redefining Health Care</title>
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	<link>http://healthaffairs.org/blog/2007/03/23/health-reform-redefining-health-care/</link>
	<description>The Policy Journal of the Health Sphere</description>
	<lastBuildDate>Fri, 20 Nov 2009 20:04:42 -0500</lastBuildDate>
	
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		<title>By: Health Affairs Blog</title>
		<link>http://healthaffairs.org/blog/2007/03/23/health-reform-redefining-health-care/comment-page-1/#comment-2686</link>
		<dc:creator>Health Affairs Blog</dc:creator>
		<pubDate>Mon, 04 Jun 2007 21:39:35 +0000</pubDate>
		<guid isPermaLink="false">http://healthaffairs.org/blog/2007/03/23/health-reform-redefining-health-care/#comment-2686</guid>
		<description>[...] HEALTH REFORM: Redefining Health Care by Michael E. Porter and Elizabeth Olmsted Teisberg [...]</description>
		<content:encoded><![CDATA[<p>[...] HEALTH REFORM: Redefining Health Care by Michael E. Porter and Elizabeth Olmsted Teisberg [...]</p>
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		<title>By: George Halvorson on health care reform, reforming chronic care &#124; WorldHealthCareBlog.org</title>
		<link>http://healthaffairs.org/blog/2007/03/23/health-reform-redefining-health-care/comment-page-1/#comment-2383</link>
		<dc:creator>George Halvorson on health care reform, reforming chronic care &#124; WorldHealthCareBlog.org</dc:creator>
		<pubDate>Sun, 22 Apr 2007 18:39:45 +0000</pubDate>
		<guid isPermaLink="false">http://healthaffairs.org/blog/2007/03/23/health-reform-redefining-health-care/#comment-2383</guid>
		<description>[...] Matthew’s comments—Well of course he’s right about where the problem is. But the problem is that the incentives in the current system caused by the current financing system drive excessive, inefficient cost of the chronically ill. Telling providers to change that without giving them the incentives to make the change. That requires—as Halvorson sorta said but was not too clear about—universal coverage and a massive change in the financing system. And this is all eerily familiar of the Porter conversation held over at THCB and in the comments about their article at Health Affairs… [...]</description>
		<content:encoded><![CDATA[<p>[...] Matthew’s comments—Well of course he’s right about where the problem is. But the problem is that the incentives in the current system caused by the current financing system drive excessive, inefficient cost of the chronically ill. Telling providers to change that without giving them the incentives to make the change. That requires—as Halvorson sorta said but was not too clear about—universal coverage and a massive change in the financing system. And this is all eerily familiar of the Porter conversation held over at THCB and in the comments about their article at Health Affairs… [...]</p>
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		<title>By: Vince Kuraitis</title>
		<link>http://healthaffairs.org/blog/2007/03/23/health-reform-redefining-health-care/comment-page-1/#comment-1999</link>
		<dc:creator>Vince Kuraitis</dc:creator>
		<pubDate>Sat, 14 Apr 2007 19:53:14 +0000</pubDate>
		<guid isPermaLink="false">http://healthaffairs.org/blog/2007/03/23/health-reform-redefining-health-care/#comment-1999</guid>
		<description>Drs. P &amp; T,

In my eyes you are guilty of drive-by blogging.

The point of a blog is to have a dialogue, to learn from others&#039; POV, to advance our collective knowledge and wisdom.

Dropping off a posting and then disappearing from the conversation does not fit the spirit of blogging.</description>
		<content:encoded><![CDATA[<p>Drs. P &amp; T,</p>
<p>In my eyes you are guilty of drive-by blogging.</p>
<p>The point of a blog is to have a dialogue, to learn from others&#8217; POV, to advance our collective knowledge and wisdom.</p>
<p>Dropping off a posting and then disappearing from the conversation does not fit the spirit of blogging.</p>
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		<title>By: The Beginning of the Conversation. . . at Our Future Health</title>
		<link>http://healthaffairs.org/blog/2007/03/23/health-reform-redefining-health-care/comment-page-1/#comment-1985</link>
		<dc:creator>The Beginning of the Conversation. . . at Our Future Health</dc:creator>
		<pubDate>Thu, 12 Apr 2007 21:26:48 +0000</pubDate>
		<guid isPermaLink="false">http://healthaffairs.org/blog/2007/03/23/health-reform-redefining-health-care/#comment-1985</guid>
		<description>[...] Redefining Healthcare Health Affairs Blog with Michael E. Porter E-Care Management Status Quo - The CATO Institute  &#187; Filed under Healthcare History, Debating Healthcare, Healing Healthcare, Resources by admin at 15:26.  back to top [...]</description>
		<content:encoded><![CDATA[<p>[...] Redefining Healthcare Health Affairs Blog with Michael E. Porter E-Care Management Status Quo &#8211; The CATO Institute  &raquo; Filed under Healthcare History, Debating Healthcare, Healing Healthcare, Resources by admin at 15:26.  back to top [...]</p>
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		<title>By: Our Future Health &#187; Blog Archive &#187; You are informed. . .</title>
		<link>http://healthaffairs.org/blog/2007/03/23/health-reform-redefining-health-care/comment-page-1/#comment-1984</link>
		<dc:creator>Our Future Health &#187; Blog Archive &#187; You are informed. . .</dc:creator>
		<pubDate>Thu, 12 Apr 2007 20:39:17 +0000</pubDate>
		<guid isPermaLink="false">http://healthaffairs.org/blog/2007/03/23/health-reform-redefining-health-care/#comment-1984</guid>
		<description>[...] Redefining Healthcare Health Affairs Blog with Michael E. Porter E-Care Management Status Quo - The CATO Institute [...]</description>
		<content:encoded><![CDATA[<p>[...] Redefining Healthcare Health Affairs Blog with Michael E. Porter E-Care Management Status Quo &#8211; The CATO Institute [...]</p>
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		<title>By: John Haughton</title>
		<link>http://healthaffairs.org/blog/2007/03/23/health-reform-redefining-health-care/comment-page-1/#comment-1915</link>
		<dc:creator>John Haughton</dc:creator>
		<pubDate>Wed, 04 Apr 2007 03:22:08 +0000</pubDate>
		<guid isPermaLink="false">http://healthaffairs.org/blog/2007/03/23/health-reform-redefining-health-care/#comment-1915</guid>
		<description>Do incentives change behavior?  At least 2 great examples exist out there... 

1) Changes in the Skilled Nursing Facility and Home Care use / Public company stocks after the Balanced Budget Act in the mid 1990&#039;s (1997?) -- Act comes out.  Payment changes.  Industry responds within a year or so.

2) Changes in rates of hospital reporting for less than 1% in medical fee difference in the last few years -- Incentive in place, Reporting rates skyrocket...

Bottom line -- Healthcare is really really smart when it comes to seeing incentives that matter and responding to them.  For now, it may be (and likely is) completely rational for a Physician, especially a small practice physician, to consider holding off on purchasing an electronic health system / record...Why?  a) Lots of friends who bought systems in the last 5 or 10 years have had to replace them (tech changes, didn&#039;t work well, etc) - &quot;Spend $20K and not solve my problem issue&quot;.   b) Lots of friends bought systems and lost productivity - handwritten notes for primary care docs who were not doing transcription anyway cost less than any extra documentation time with the electronic tools. - The &quot;I might cut my revenue issue&quot;  c) Systems are getting cheaper - Who bought their first calculator in the 70&#039;s for $500?  $200?  $20?  $2?...  d) Low revenue and pressure on primary care due to current reimbursement policies - the &quot;Send my kid to college or get an EMR issue&quot; - the kid goes to school and the system I buy next year or the year after is cheaper, more patient centric and will meet the emerging policy PAYMENT changes coming downstream... Medicare 1/2% (75 cents a visit +/-) coming to primary care in July may be just the beginning...</description>
		<content:encoded><![CDATA[<p>Do incentives change behavior?  At least 2 great examples exist out there&#8230; </p>
<p>1) Changes in the Skilled Nursing Facility and Home Care use / Public company stocks after the Balanced Budget Act in the mid 1990&#8217;s (1997?) &#8212; Act comes out.  Payment changes.  Industry responds within a year or so.</p>
<p>2) Changes in rates of hospital reporting for less than 1% in medical fee difference in the last few years &#8212; Incentive in place, Reporting rates skyrocket&#8230;</p>
<p>Bottom line &#8212; Healthcare is really really smart when it comes to seeing incentives that matter and responding to them.  For now, it may be (and likely is) completely rational for a Physician, especially a small practice physician, to consider holding off on purchasing an electronic health system / record&#8230;Why?  a) Lots of friends who bought systems in the last 5 or 10 years have had to replace them (tech changes, didn&#8217;t work well, etc) &#8211; &#8220;Spend $20K and not solve my problem issue&#8221;.   b) Lots of friends bought systems and lost productivity &#8211; handwritten notes for primary care docs who were not doing transcription anyway cost less than any extra documentation time with the electronic tools. &#8211; The &#8220;I might cut my revenue issue&#8221;  c) Systems are getting cheaper &#8211; Who bought their first calculator in the 70&#8217;s for $500?  $200?  $20?  $2?&#8230;  d) Low revenue and pressure on primary care due to current reimbursement policies &#8211; the &#8220;Send my kid to college or get an EMR issue&#8221; &#8211; the kid goes to school and the system I buy next year or the year after is cheaper, more patient centric and will meet the emerging policy PAYMENT changes coming downstream&#8230; Medicare 1/2% (75 cents a visit +/-) coming to primary care in July may be just the beginning&#8230;</p>
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		<title>By: Nate Kaufman</title>
		<link>http://healthaffairs.org/blog/2007/03/23/health-reform-redefining-health-care/comment-page-1/#comment-1912</link>
		<dc:creator>Nate Kaufman</dc:creator>
		<pubDate>Tue, 03 Apr 2007 15:30:29 +0000</pubDate>
		<guid isPermaLink="false">http://healthaffairs.org/blog/2007/03/23/health-reform-redefining-health-care/#comment-1912</guid>
		<description>I agree with my old friend Vince K. -- first assume you have a row boat -- then assume you have someone who knows how to row -- then assume you have someplace to row -- then you cure cancer</description>
		<content:encoded><![CDATA[<p>I agree with my old friend Vince K. &#8212; first assume you have a row boat &#8212; then assume you have someone who knows how to row &#8212; then assume you have someplace to row &#8212; then you cure cancer</p>
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		<title>By: RobertBurney</title>
		<link>http://healthaffairs.org/blog/2007/03/23/health-reform-redefining-health-care/comment-page-1/#comment-1904</link>
		<dc:creator>RobertBurney</dc:creator>
		<pubDate>Mon, 02 Apr 2007 16:26:10 +0000</pubDate>
		<guid isPermaLink="false">http://healthaffairs.org/blog/2007/03/23/health-reform-redefining-health-care/#comment-1904</guid>
		<description>P&amp;T are on the right track, but there&#039;s no locomotive.  Heatlhcare is not in crisis--the rise in costs is moderating.  No one is interested in price competition at the individual service level.   (see discussion at  http://www4.asq.org/blogs/healthcare )  We need to start small with value transparency for patients (money and time).  Technical &quot;quality&quot; must be assumed, since patients depend on auditors for that (accreditation, state licensing, etc.).   As patients become responsible for more of the cost, they will be more interested in prices.  As patients select higher value providers, competition will increase and costs will come down.   
Start with a few high volume/cost procedures (total hip, total knee, inguinal hernia, etc.) and expand the list annually.  The only thing missing now is a requirement that providers publish prices for their services and some incentive for payers to select high value (low cost) providers.</description>
		<content:encoded><![CDATA[<p>P&amp;T are on the right track, but there&#8217;s no locomotive.  Heatlhcare is not in crisis&#8211;the rise in costs is moderating.  No one is interested in price competition at the individual service level.   (see discussion at  <a href="http://www4.asq.org/blogs/healthcare" rel="nofollow">http://www4.asq.org/blogs/healthcare</a> )  We need to start small with value transparency for patients (money and time).  Technical &#8220;quality&#8221; must be assumed, since patients depend on auditors for that (accreditation, state licensing, etc.).   As patients become responsible for more of the cost, they will be more interested in prices.  As patients select higher value providers, competition will increase and costs will come down.<br />
Start with a few high volume/cost procedures (total hip, total knee, inguinal hernia, etc.) and expand the list annually.  The only thing missing now is a requirement that providers publish prices for their services and some incentive for payers to select high value (low cost) providers.</p>
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		<title>By: andrewhorning</title>
		<link>http://healthaffairs.org/blog/2007/03/23/health-reform-redefining-health-care/comment-page-1/#comment-1901</link>
		<dc:creator>andrewhorning</dc:creator>
		<pubDate>Mon, 02 Apr 2007 16:02:12 +0000</pubDate>
		<guid isPermaLink="false">http://healthaffairs.org/blog/2007/03/23/health-reform-redefining-health-care/#comment-1901</guid>
		<description>I don&#039;t understand why we make this so complicated.  The Free Market works better than anything else yet devised precisely because it doesn&#039;t depend upon any precognition of innovation, competition or politics.  Our healthcare system hasn&#039;t been a free market system since the AMA became a powerful union to eliminate all the phrenologists, snake-oil salesmen and other charlatans.
The charlatans remain, and our system, without competition and with absurd collusion from politicians, has become a USSR-style mess of Central Planning.
I&#039;ve worked in the healthcare industry since 1979 (research, clinical and industry roles), and have seen innovations that should have made healthcare cheaper, more available and higher quality turn into a tortured soup of taxation, regulation and litigation that makes everybody sick.
Look at the relatively unregulated computer/software industry and you&#039;ll see that technology is supposed to make things better and cheaper.
This is simple.
Kick politicians out of the operating room and let engineers, doctors and entrepreneurs supply the needs that patients determine are needs.</description>
		<content:encoded><![CDATA[<p>I don&#8217;t understand why we make this so complicated.  The Free Market works better than anything else yet devised precisely because it doesn&#8217;t depend upon any precognition of innovation, competition or politics.  Our healthcare system hasn&#8217;t been a free market system since the AMA became a powerful union to eliminate all the phrenologists, snake-oil salesmen and other charlatans.<br />
The charlatans remain, and our system, without competition and with absurd collusion from politicians, has become a USSR-style mess of Central Planning.<br />
I&#8217;ve worked in the healthcare industry since 1979 (research, clinical and industry roles), and have seen innovations that should have made healthcare cheaper, more available and higher quality turn into a tortured soup of taxation, regulation and litigation that makes everybody sick.<br />
Look at the relatively unregulated computer/software industry and you&#8217;ll see that technology is supposed to make things better and cheaper.<br />
This is simple.<br />
Kick politicians out of the operating room and let engineers, doctors and entrepreneurs supply the needs that patients determine are needs.</p>
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		<title>By: Matthew Holt</title>
		<link>http://healthaffairs.org/blog/2007/03/23/health-reform-redefining-health-care/comment-page-1/#comment-1891</link>
		<dc:creator>Matthew Holt</dc:creator>
		<pubDate>Sun, 01 Apr 2007 17:38:19 +0000</pubDate>
		<guid isPermaLink="false">http://healthaffairs.org/blog/2007/03/23/health-reform-redefining-health-care/#comment-1891</guid>
		<description>Jose. OK You admit it. 

We are nowhere close to getting those incentive changes. Mediare collecting a few quality indicators, Leapfrog involving 2% of big employers in minor P4P in small parts of their networks, and a few medical groups in California and Boston being paid 10% more for stuff they were already doing, does not a sea-change in payment systems makes.

Meanwhile the great mass of doctors, hospitals, pharmaceutical companies and suppliers who are responsible for basically all health care spending as you say are rewarded for concentrating on the &quot;acutely sick on a FFS scheme, resulting in episodic, disconnected care&quot;  with the &quot;damaging consequence is the homogeneity of provision models and their inertia to change.&quot; And worse they have a &lt;i&gt;discincentive&lt;/i&gt; to change because if they move to these other models they will get picked apart and go bankrupt given our current &quot;zero-sum competition&quot; model.

Yet P/T, you et al give no indication of how a global change to the incentive system will come about, and worse they dismiss it as being unimportant. Particularly as the consumers on whom most of the money is spent are the last people to become  as you say &quot;equipped to make informed decisions (considering cost and quality) and ha(s)ve the incentives to shop around&quot;.

But of course if most providers change in the way P&amp;T suggest, they&#039;ll go under. P &amp; T dismiss this problem out of hand

That&#039;s why their work is intellectually shallow.</description>
		<content:encoded><![CDATA[<p>Jose. OK You admit it. </p>
<p>We are nowhere close to getting those incentive changes. Mediare collecting a few quality indicators, Leapfrog involving 2% of big employers in minor P4P in small parts of their networks, and a few medical groups in California and Boston being paid 10% more for stuff they were already doing, does not a sea-change in payment systems makes.</p>
<p>Meanwhile the great mass of doctors, hospitals, pharmaceutical companies and suppliers who are responsible for basically all health care spending as you say are rewarded for concentrating on the &#8220;acutely sick on a FFS scheme, resulting in episodic, disconnected care&#8221;  with the &#8220;damaging consequence is the homogeneity of provision models and their inertia to change.&#8221; And worse they have a <i>discincentive</i> to change because if they move to these other models they will get picked apart and go bankrupt given our current &#8220;zero-sum competition&#8221; model.</p>
<p>Yet P/T, you et al give no indication of how a global change to the incentive system will come about, and worse they dismiss it as being unimportant. Particularly as the consumers on whom most of the money is spent are the last people to become  as you say &#8220;equipped to make informed decisions (considering cost and quality) and ha(s)ve the incentives to shop around&#8221;.</p>
<p>But of course if most providers change in the way P&amp;T suggest, they&#8217;ll go under. P &amp; T dismiss this problem out of hand</p>
<p>That&#8217;s why their work is intellectually shallow.</p>
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