RedefineSummary[1] - Redefining Healthcare- Introduction 1)...

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Redefining Healthcare- Introduction 1) In the past 2 decades, healthcare has become a major concern in the U.S. a) Spend almost $2 trillion annually and costs are escalating b) Because of increased costs, Americans have lost access to healthcare which leads to: i) Healthcare quality suffers ii) Costs increase more 2) Healthcare “reform” has yet to remedy the problem, and possibly made the situation worse with increased costs a) There does not seem to be an overarching solution 3) The nation needs a new way of thinking about the health care system a) There is not one single problem, and thus the solution will not be found in one single aspect of the system b) Only real solution is to unite all participants in the system in a common purpose The Failure of Competition 1) Three broad issues in healthcare i) Cost of and access to healthcare ii) Standards for coverage/types of care that should be covered by insurance iii) Structure of healthcare delivery 2) There has been a lot of attention placed on insurance for reform, but the authors believe the structure of healthcare is the fundamental issue: a) Structure of healthcare delivery drives the cost and quality of the entire system, which affects insurance 3) “the structure of health care delivery is broken” a) It is broken because competition is broken i) Competition drives improvements in quality and cost b) Since there is not competition in healthcare: i) There are large differences in cost for the same quality of services ii) Competition does not reward the good providers nor do poor providers go out of business iii) Technological innovation diffuses slowly and does not drive value improvement the way it should 4) So why is competition failing in healthcare? a) Healthcare has the wrong kind of competition: i) Zero sum competition – the gains of one system participant come at the expense of others. Participants compete to shift costs to one another, accumulating the bargaining power and limit services. 5) “The only way to truly reform health care is to reform the nature of competition itself” Competing on Value 1) Need to focus competition on the “value for patients” Competing on Results 1) Competition on value must focus around results a. Results that matter are patient outcomes per unit of cost at the medical condition level b. Means that suppliers that achieve excellence are rewarded with more business 2) Competing on patient results is a positive-sum competition from which all system participants can benefit 3) “Mandatory measurement and reporting of results is perhaps the single most important step in reforming the healthcare system The introduction then explains the format and gives a summary of what each chapter includes Chapter 1: Scoping the Problem **this chapter has a lot of graphs illustrating the points I summarized below** 1) The U.S. Healthcare system is on a dangerous path a. High costs b. Uneven quality c. Frequent errors d. Limited access to care 2) Per capita health care costs in U.S. exceed most other developed countries, but does not equal higher quality of care
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This note was uploaded on 10/21/2010 for the course HEALTH SCI PHTH 7513 taught by Professor Moorehouse during the Fall '10 term at Marquette.

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RedefineSummary[1] - Redefining Healthcare- Introduction 1)...

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