Groups share details on $2T cost-savings offer

Still wondering how a collection of even the most powerful healthcare groups can shave $2 trillion off the growth in healthcare costs over the next decade? This week's letter from the American Hospital Association should clear things up a bit--or at least that's what it's designed to do. (And a good thing it is, given that the AHA was working hard to reduce expectations [1] within a week of the original announcement.)

Backed by its posse of healthcare leaders, the AHA has sent a fat 28-page letter to the White House explaining what it plans to do to deliver on its claims. The group says it will begin its cost-savings program by cutting down on common surgical infections, then expand by helping its members improve care coordination, grow their use of health IT and boost overall efficiency.

The AHA is supported in its pledge by several other high-profile organizations, including America's Health Insurance Plans, the Service Employees International Union and the American Medical Association. Those groups identified three areas where they can provide savings: care utilization, chronic-care management and administrative simplification. They expect the biggest savings from improved chronic-care management, which they anticipate could cut costs by $850 billion.

To learn more about the cost-cutting effort:
- read this Modern Healthcare piece [2] (reg. req.)

Related Articles:
Healthcare players offer plan to cut costs by $2 trillion [3]
AHA backs off from $2T savings promise [1]
Are industry's promises to cut $2T smoke and mirrors? [4]