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Health Policy Program

Realigning Incentives for Patients and Providers

Our current payment structure rewards providers based on volume rather than value and for more care rather than better care. Recently passed comprehensive health reform law will start the U.S. health system on a path toward paying for quality of care rather than quantity. Starting in public programs such as Medicare and Medicaid, health care providers will be rewarded for promoting coordinated, patient-centered care.

As we implement the new health reform law, we must maintain our commitment to restructuring how we pay for health care in order to give providers an added incentive to deliver quality, efficient care the first time. Similarly, consumers should have incentives to take personal responsibility for their health, engage in healthy lifestyle activities, and seek preventive care.

Many of the provisions in the new health reform law that will help realign incentives to lower cost and improve quality can be seen in the recommendations of the Health CEOs for Health Reform.






Required Reading

Using Medicare to Lower Health Costs
Washington Times
April 19, 2009

Hill-Baylor Case Studies:
Profiles of High-Performing
Health Care Systems

Commonwealth Fund
March 25, 2009

Making Medicare Sustainable
Policy Paper
March 19, 2009

Reforming Medicare's Governance
To Enhance Value-Based Purchasing

Health Affairs Blog
September 19, 2008

Read more on this issue at our blog:
The New Health Dialogue

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