Today’s article comes from The Atlantic, and is titled ‘The 5 Mega-Trends That Are Changing the Face of Health Care’. It’s a fascinating view on the landscape. As an allergist in Atherton, CA, I see changes all the time. And these changes are magnified by the fact that I am a sole-practitioner and not part of a large corporate medical practice.
As the nation’s highest court weighs the fate of President Obama’s health care reform legislation, it’s important to keep one thing in mind: No matter what the nine justices ultimately decide, significant change is coming to health care — and the industry’s future is gaining clarity.
Indeed, we see five key trends that are solid, foundational, and unassailable:
(1) Strong headwinds will force change. The numbers say it all. Intense funding pressure on Medicare and Medicaid, decreasing commercial reimbursement, flat or declining volume trends, federal budget deficits, and growing uncompensated care–all of which are compelling the health care industry to adapt in a wholesale way.
(2) Employer-based commercial insurance will undergo a shift. Whether it’s an employer mandate or widespread exchanges, companies will have an entirely new relationship with employees when it comes to health care coverage.
(3) Commercial payers will alter how they do business. They may be more collaborative in the rapidly emerging new world of health care, but they will also pay less. Some are employing a vertical integration strategy by getting into or enhancing their position in the provider segment.
(4) Consumers will control more of their health care dollars. An increase in individual and high-deductible health plans will force consumers to be more active in their own health care and will lead to more consumer decision making. Providers will be required to adapt to increased demand for evidence-driven medicine and provide greater data and transparency.
(5) Providers will be financially challenged. Quality through coordination and evidence-based medicine, not gatekeeping, is the answer. Put another way, better care will lead to better health, which will lead to lower costs. This transition from fee-for-service medicine will be wrenching–evidenced by recent practice closings and the growing trend toward consolidation.
You can read the rest of the article here.
As always, please leave comments or ask questions. I’m always here to help!