Wednesday, July 15, 2009

U.S., State Officials Need to Stop Micromanaging Care | Shirley Svorny | Cato Institute: Commentary

U.S., State Officials Need to Stop Micromanaging Care | Shirley Svorny | Cato Institute: Commentary: "The Veterans' Administration was mentioned twice as a model for the provision of care."

It probably is a good model for the kind of care that the government will provide but it isn't a good model of the kind of care I want or a good model for an improvement.

"Government programs are not less expensive to administer if you include fraud as a cost. Fraud on the part of providers seeking government reimbursement, although hard to measure, is thought to dwarf administrative costs in private companies. Medicare and Medi-Cal have cut costs by limiting what physicians and other providers get paid, a poor long-run strategy for the country as a whole."

"The role of profits in motivating desirable outcomes has to be one of the most poorly understood concepts on the planet. Profits reward efficiency and innovation. Insurance and pharmaceutical companies only make profits if they produce something people want to buy."

"Health care is delivered in much the same way it was delivered 40 years ago because that is how it is reimbursed. In addition, providers are constrained by state laws which dictate limited scope of practice and excessive education requirements for medical professionals."

"Those in attendance Tuesday night went though a long wish list that included longer doctor visits, more accessible health care and additional services (including interpreting) and higher rates of reimbursement for physicians. Union representatives encouraged everyone to call their legislators to demand universal coverage. But universal coverage would not lead to higher reimbursement rates for physicians, an extension of services, or longer doctor visits. Just the opposite, as health care dollars would be stretched even further."

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