Monday, May 11, 2009

Promise or Politics?

It's amazing who you can bring together when you all have a common purpose. Our belief in the potential for collaboration in health care has been restored.

Today the strangest of bedfellows delivered a letter to President Obama endorsing a common position of "reducing the rate of growth in health care by 1.5% per year over the next 10 years". The American Medical Association, American Hospital Association, Pharmaceutical Research and Manufacturers of America, America's Health Insurance Plans, and the Service Employees International Union, all enemies at one time or another in the past, are now the best of friends and endorsing a common idea to help achieve health care reform in our country. The group received some great p.r. from many sides and are now positioned as "solid supporters of the health reform effort". Nobody wants to be the bad guy on this one.

Now, we don't want to be critical of a sincere effort. But, this one looks more like public relations and political positioning than a justified effort. But, we'll give it the benefit of the doubt for now. We'll look more at the details.

The organizations intend to achieve their goal by simplifying administrative costs, making hospitals more efficient, reducing hospitalizations, managing chronic diseases more effectively, and improving health-care information technology. Aren't these the things we should be doing anyway with the system we have? We really don't understand what's going to be different. Maybe its in the details and we're missing it.

While the potential savings being talked about is significant ($2 trillion over 10 years), we need to keep in mind that what is being proposed is only a reduction in the rate of increase that is expected- not any real reductions. Even optimistically, our health care expenses will increase to 18% of GDP by 2019 compared to the 16% we're at today. We don't understand how this is going to solve our issue. But, again, maybe its in the details and we're missing it.

But wait, there are no details- it's only a concept.

Don't get us wrong. These organizations are all going to be required to take part in any major reform efforts and it is a huge deal that they came together to write a letter like this in the first place. But, we have a hunch that (especially with the status of our economy) we're going to require more- much more than was presented today. Hopefully, it's a message that will remain intact when the tough decisions have to be made.

It was a great political move to get out in front on this one. But, as Len Nichols, Director of the New American Foundation is quoted as saying- "The heavy lifting is still on how to write down how to make it happen". And, it's when the heavy lifting starts, that the true colors start to show- especially in health care.

The organizations need to move beyond concept- and get to heavy lifting if they are going to stay out front. We've had enough of the concept stuff.

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