"The current U.S. health care system's reliance on fee-for-service reimbursement encourages health care providers to provide more - not better - care.... A better approach is to pay providers for performance - outcomes, quality and efficiency."
Yet part of the $716 billion cut in PPACA is intended by Obama and the Democrats to put Medicare Part C (Advabtage) out of business even though Medicare Part C is a "pay for performance" approach vs. a fee for service approach like the Democrats' Parts A and B "Medicare as we know it." Most Part C beneficiaries are already in the ACOs the author of this article is wetting his pants about.
The author -- like the PPACA law he is praising -- double counts, asking for coordinated care through ACOs and coordinated care for those that cost a lot. Same thing. (Oh, the Medicare market follows the 80/20 rule. There's a shocker. I thought this guy was some kind of financial expert.)
He wants to pay hospitals even less than the $300 billion PPACA already cuts from hospital payments for Medicare Part A and B patients. The Medicare actuary estimates that will put 15% of all hospitals in the U.S. out of business (the Reuters author calls that consolidation). Yet in Massachusetts (I'm sure somewhere this lefty has written a column praising the Massachusetts system) the Attorney General has found that it is consolidation and the closing of community hospitals that has driven up the cost of healthcare.
And frankly Mr. Money Man, we don't care that healthcare is cheaper in Botswana.
-- Dennis Byron