Keeping Our Priorities Straight: Tackle Healthcare Costs Right – And Together
Yesterday's excellent op-ed by Senator Richard T. Moore (D-Uxbridge) takes thoughtful issue with several points expressed in an editorial earlier this week by the GateHouse News Service (publisher of the MetroWest Daily News, Milford Daily News, and Taunton Gazette, among others) regarding Massachusetts healthcare reform and the intertwined issues of access and costs. Senator Moore's comments are right on the mark, and could even be expanded upon from the perspective of the hospital and provider community.
The GateHouse editorial's contention that Massachusetts' 2006 healthcare reform law "included no provisions that would keep costs down" is indeed incorrect – as Senator Moore points out. In addition to the points raised by the Senator, the initial editorial omitted mention of another key provision of that statute: The 2006 reform law also included a commitment from the Commonwealth to close the gap between what it paid providers under Medicaid and the actual costs of providing that care. Reducing this underpayment gap would lessen the need for cost-shifting to private insurance, which in turn would mean fewer costs passed on to employers and their workers in the form of higher premiums. Unfortunately the underpayment gap is now larger than it was when the reform bill was enacted. It will be essential for the Commonwealth to re-commit to this priority if any "payment reform" initiative is to be successful.
Big changes are already happening in the healthcare marketplace – and our hospitals are doing their part. Massachusetts hospitals have already cut some $3.1 billion in projected costs over the course of FY2008 to FY2010, and early results indicate that hospitals continue to reduce costs in FY2011.
Like our legislators, Massachusetts hospitals support reforming the Commonwealth's healthcare delivery and payment systems and moving away from the dominant "fee for service" payment models. The Massachusetts healthcare market is already moving ahead with voluntary payment reform efforts, and we're seeing some strong and positive results. We look forward to continued collaboration with policy makers to achieve meaningful and sustainable healthcare reform, while at the same time we recognize that progress is already being made.
The challenge of maintaining what works well in our system while reforming what doesn't work well can only be achieved if we all work together. Why? The reason is simple even if the answer isn't: there isn't a single culprit. We all contribute to the problem, we all suffer from failure, and we can all gain from success. Employers, providers, government, insurers, and consumers working together is the answer.
