Two organizations that represent some of the nation’s largest corporations are teaming up for an initiative to accelerate the healthcare industry’s transition to value-based care.
The Pacific Business Group on Health and the Erisa Industry Committee will partner for the DRIVE Healthcare Initiative, which aims to speed up economic growth by controlling healthcare costs through the adoption of value-based care, the groups announced.
The two organizations sent a letter to President Donald Trump and Department of Health and Human Services Secretary Tom Price, calling on both to use targeted deregulation and market-based strategies to achieve this goal.
The #DRIVEHealth Initiative aims to accelerate the move toward value-based care. Learn more at https://t.co/3rY36ZQf7t. #valuebasedcare pic.twitter.com/N8TfvfIhA4
— PBGH (@PBGH_updates) May 2, 2017
"It's absolutely critical for the health of Americans and our economy that value-based care is quickly embedded in the healthcare system," David Lansky, Ph.D., CEO of the Pacific Business Group on Health, said in the announcement. "Policymakers must focus on what works to achieve these goals, and we know that value-based care helps to drive down costs and improve patient outcomes."
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Healthcare costs and spending in the U.S. continue to rise, though patient outcomes are below average compared to other countries. Transitioning to value-based care and away from more traditional fee-for-service payment models is key to cutting down costs, according to the two organizations. Annette Guarisco Fildes, CEO of the Erisa Industry Committee, urged Trump and Price to keep that “front and center” as they navigate health policy changes.
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The government must act to transform the US healthcare system to deliver results, #innovation, & value. https://t.co/aUuUUQxL3E #DriveHealth pic.twitter.com/raiJq3Qrqo
— PBGH (@PBGH_updates) May 2, 2017
The two groups also devised as part of the DRIVE initiative a three-prong approach that policymakers can use to embrace market-driven solutions that drive toward value-based care:
- Engage consumers, and use appropriate financial incentives. This could include better applying health savings accounts in high-deductible health plans and offering strong financial incentives to hospitals to push them to offer high quality care.
- Embrace alternative payment models, including bundled payments and accountable care organizations. The groups also lumped wider use of telehealth services into this point.
- Push for wide use of transparency and quality measures. Interoperability and greater data collection are also key.