The
League of Women Voters of Collier County, FL, recently held two meetings at which local experts addressed the topic of health care reform:
- Allen Weiss, M.D., President and CEO of the NCH Healthcare System, Naples, FL, spoke on January 10th on “Health Care Reform: What’s Next … and What About Me?”, and
- Ronald Riner, M.D., President and CEO of the Riner Group, a health care management consulting firm in Naples, FL, spoke on January 12th on “The Impact of Health Care Reform on Small Business.”
The Naples Daily News summed up Dr. Weiss’s remarks as: “U.S. health-care overhaul is needed to survive.” From
the article:
Ninety-two percent of government spending could be spent on health care by 2050 if cost controls and change isn’t made, Dr. Allen Weiss, president and chief executive officer of the NCH Healthcare System, said Monday.
“We won’t be able to pay back China,” he said.
Speaking to members of the League of Women Voters during a luncheon at the Naples Hilton, Weiss provided a big picture perspective about today’s anxiety over health-care reform passed last year under the Patient Care and Affordability Act [sic]. He said the country went through similar unease when the Social Security program was started in the late 1930s and later when Medicare began in the mid-1960s.
“People hate change,” he said, adding that people will get over the current anxiety as they did after both Social Security and Medicare were up and running.
...[But] “One way or another, the health-care bubble is going to burst,” he said.
In other words, reform of the health care delivery system is both necessary and inevitable, and the current agitation (such as calls to overturn the law) is nothing more than a to-be-expected fear of change which too shall pass.
Weiss has been actively moving NCH toward more efficient high-tech medical care for years, and began implementing
Cerner Corp. solutions including Electronic Medical Records as early as 2005. In an August 30, 2010, piece in the Naples Daily News titled “
The power of information in health care,” Weiss wrote:
Information, they say, is power. And nowhere is that truer than in health care, where the information we acquire and record about our patients gives us the power to heal and even save lives.
It’s no coincidence that information technology has become a top-level priority at NCH. In particular, our integrated medical record infrastructure enables us to link all healthcare providers — from the time a patient expresses medical concern through visiting a primary care physician, referral to a specialist, potential admission to the hospital, post-hospital care in a rehabilitation center or skilled care facility, to home care.
This robust, computerized information infrastructure allows us to determine best practices and establish treatment benchmarks. This is a quantum change from the standard paper analog record, where medical research about processes — such as the time needed to stop a heart attack — had to be calculated manually. With an Electronic Medical Record (EMR), all digital records can be analyzed in moments for any period of time. The data collected digitally becomes new knowledge about how best to care for patients and obtain the best outcomes.
Referring to another characteristic of “Health Care 21” (my new term for health care in the 21st century), Weiss told the LWVCC that local medical providers are moving toward forming accountable care organizations (ACOs). An ACO is a health care delivery model that offers doctors and hospitals financial incentives to provide good quality care to Medicare beneficiaries while keeping down costs.
My take-away from Weiss’s talk was that he is on-board and well ahead of the curve in terms of understanding what hospital systems have to do to succeed in the 21st century. While he made it clear that he is a-political on the subject, my impression was that he accepts the Affordable Care Act’s requirements as the law of the land, not necessarily anything he disagrees with. While he expressed some sympathy for the disruption and cost local practitioners have to deal with in adapting to Health Care 21, he left me with no doubt that he knows where things are headed.
In a January 17th Naples Daily News
Guest Commentary, Weiss wrote:
Both short and long term, health-care reform will make our local delivery system better.
Dr. Riner spoke to the League of Women Voters’ Social Policy Committee on January 12th. His presentation is available
here.
In Riner’s view, “the overall impact of health care reform is likely to be neutral to positive for small business.” In the short term, the health care law’s requirements will have a “small effect,” he said, with the major impact occurring in 2014 as a result of these provisions:
- Creation of insurance exchanges, allowing small businesses to purchase from a multitude of plans in their state;
- Tax credit for small businesses providing health insurance;
- Exemption from the pay-or-play provisions imposed by the ACA on medium-to large-sized firms;
- Employees of small businesses not offered insurance through work are allowed access to insurance exchange, with subsidies available for low-income individuals and families, and acceptance of pre-existing conditions.
Long term, Riner said, the impact on small businesses is likely to be “neutral in terms of cost.” Businesses with 50 or more employees will be required to offer health insurance coverage or pay a penalty. But offsetting this cost, businesses are likely to see these savings and quality improvements:
- Lower insurance cost to employers purchasing via an exchange;
- Tax credit for small business offering insurance;
- Shift of insurance cost to individual from employer as individuals have additional purchase options via exchanges;
- Improved worker productivity with improved access to health care;
- Larger pool of candidates if health care insurance benefit is not tied to size of employer.
The second part of Dr. Riner’s presentation was review of the effect of the health care law on future health care spending. He made the frequently-stated point that the law did not do enough to bend the health care cost curve.
I asked Dr. Riner what he would have liked the government to have included in the law to address the cost issue, and I got the same thing I get whenever I ask that question: not much. Riner said practitioners need to “involve the patient” in the health care purchasing decision (“If it’s an entitlement, it’s a freebie”) and “talk more about the fraud issue” so people will begin to question the need for tests and procedures being ordered. He also said “the medical community needs to police itself.”
Well, we’ve seen where that’s gotten us!
He also talked about the lack for tort reform, an oft-cited complaint despite the fact that studies show the cost of malpractice claims to be no more than a drop in the bucket when it comes to health care costs. “These costs, all told, have been estimated to be only about 2 percent of healthcare expenses,”
says Leemore Dafny, Kellogg School Assistant Professor of Management and Strategy, an economist and expert in healthcare competition, just one of many sources of this statistic.
After hearing Dr. Weiss on Monday and Dr. Riner on Wednesday, I went off to Miami for the Global Business Forum on the Future of Health Care
I wrote about earlier this month.
Looking back on the entire week, I’d say that despite the probably-valid concern that not enough has been done to curb health care costs, the kinds of changes encouraged and/or required by the Affordable Care Act are inevitable and for the best.
The smart practitioners like Dr. Weiss know it, and are on-board.