Healthy Living Are Healthcare Services Together With Products Only Commodities?
I had a give-and-take amongst individual who brought upward an interesting indicate virtually insurers/payers who process healthcare services (tests as well as procedures) products (medications, lab work, medical devices, etc.) to travel commodities that are yesteryear paid piecework. This model is inwards sudden contrast to the Pay-for-Value/Value-Pricing model I've been proposing.
The sentiment that healthcare services as well as products as commodities is based on faulty reasoning. In reality, the services rendered yesteryear dissimilar providers, as well as the products produced yesteryear dissimilar manufacturers, are oftentimes non as (a) effective inwards terms of security as well as character (degree of jeopardy as well as gain goodness to the patient); (b) efficient inwards terms of speed as well as resources consumption; as well as (c) affordable inwards terms of overall cost. In other words, they are non as cost-effective. As such, it is irrational to pay the same amount across the board for a item type of healthcare service as well as product. H5N1 to a greater extent than sane approach would travel to role a value-based model of pricing that pays to a greater extent than for the services as well as products that deliver greater value to the patient/consumer yesteryear beingness to a greater extent than cost-effective.
There are many reasons why American healthcare does non lead keep such a value-based model. An fantabulous article lately published inwards NEJM (at this link) addresses this number directly: The $640 Billion Question—Why Does Cost-Effective Care Diffuse So Slowly? Bottom line: There is petty fiscal incentive, as well as swell disincentive, to promoting cost-effectiveness inwards the electrical current U.S. healthcare system. Here’s a brief quote:
I’ve been writing virtually the bespeak for a value-based healthcare scheme since 2007 (see /search?q=path-to-profound-healthcare as well as /search?q=path-to-profound-healthcare). It seems to me that fixing healthcare inwards the U.S. (and our economic scheme inwards general), requires (in part) that nosotros transform our pathologically mutated model of capitalism (see /search?q=path-to-profound-healthcare) into a rational model based on rewarding delivery of value to the consumer!
The sentiment that healthcare services as well as products as commodities is based on faulty reasoning. In reality, the services rendered yesteryear dissimilar providers, as well as the products produced yesteryear dissimilar manufacturers, are oftentimes non as (a) effective inwards terms of security as well as character (degree of jeopardy as well as gain goodness to the patient); (b) efficient inwards terms of speed as well as resources consumption; as well as (c) affordable inwards terms of overall cost. In other words, they are non as cost-effective. As such, it is irrational to pay the same amount across the board for a item type of healthcare service as well as product. H5N1 to a greater extent than sane approach would travel to role a value-based model of pricing that pays to a greater extent than for the services as well as products that deliver greater value to the patient/consumer yesteryear beingness to a greater extent than cost-effective.
There are many reasons why American healthcare does non lead keep such a value-based model. An fantabulous article lately published inwards NEJM (at this link) addresses this number directly: The $640 Billion Question—Why Does Cost-Effective Care Diffuse So Slowly? Bottom line: There is petty fiscal incentive, as well as swell disincentive, to promoting cost-effectiveness inwards the electrical current U.S. healthcare system. Here’s a brief quote:
“To avoid fiscal crises inwards federal as well as solid soil governments as well as turmoil for wellness assist stakeholders, U.S. wellness assist must travel out to a greater extent than cost-effective. The U.S. spends much to a greater extent than per capita on wellness assist than gain other developed countries, amongst wide outcomes no ameliorate than those of its peers...There are, however, private U.S. physicians as well as wellness assist organizations that deliver high-quality assist at a terms roughly 20% lower than the average. If the balance of the U.S. wellness assist manufacture followed their example…$640 billion would [be saved. The reasons for our failure to focus on cost-effectiveness] prevarication inwards the perceptions as well as behaviors of the major participants inwards wellness care.”
I’ve been writing virtually the bespeak for a value-based healthcare scheme since 2007 (see /search?q=path-to-profound-healthcare as well as /search?q=path-to-profound-healthcare). It seems to me that fixing healthcare inwards the U.S. (and our economic scheme inwards general), requires (in part) that nosotros transform our pathologically mutated model of capitalism (see /search?q=path-to-profound-healthcare) into a rational model based on rewarding delivery of value to the consumer!
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