The American Health Care Act (AHCA) is on the minds of many healthcare professionals since the bill passed in the U.S. House and since the Congressional Budget Office recently released its score on it. As a result, the implications of the bill were front and center at the ACHE of Massachusetts Spring Conference, held on May 25th at the Sheraton Framingham.
Tweet: How healthcare is responding to the AHCA and value-based initiatives
In addition to the AHCA, the half-day conference also focused on how leaders are adjusting to the “new reality” of other aspects of healthcare. These aspects included new forms of reimbursement, a focus on quality, and how hospitals survive in a world of both consolidation and fragmentation.
AHCA – Where do we go from here?
The first speaker at the event was MIT professor Jonathan Gruber, one of the architects of the Affordable Care Act (ACA). Gruber spoke passionately about the benefits that the ACA delivered and forcefully about what he considers the shortcomings of the AHCA.
With regards to the costs of healthcare, Gruber feels the U.S. can afford to spend 20% of its GDP on healthcare costs. He believes the key is in the long run to get costs down to an increase of just 3% each year – in line with what economic growth should be.
Gruber also said that we can’t expect the government to lead on healthcare innovation right now, and that it is up to the private sector to lead when it comes to controlling healthcare costs and finding value in healthcare.
Another speaker also focused on the implications of the AHCA, though from more of a policy perspective. James Capretta of the American Enterprise Institute discussed what the AHCA proposes and what he thinks the Senate should do to address some of the bill’s shortcomings. Capretta disagreed with Gruber in terms of the cost of healthcare in that he believes spiraling healthcare costs need to be addressed now.
Surviving in a world of consolidation and fragmentation
Christine Schuster, president and CEO of Emerson Hospital Health System, talked about how her organization is handling what initially seems like a paradox of both consolidation and fragmentation among providers. Emerson is one of the increasingly few independent hospitals in the area, and it focuses on high quality. Schuster said the hospital aims to provide “premium care with a personal touch”. As a result, the hospital carefully evaluates any partnership or affiliate opportunities. Schuster, however, is mindful that the trend is for mergers in the industry.
However, Schuster also discussed the fragmentation in healthcare, including the explosion of urgent care centers and MRI centers. Schuster wondered about the implications for hospitals in terms of:
- Sharing information between parents
- Regulations on these types of centers
- Finances, given that these centers often “skim off” the highest profit services
Schuster emphasized that success in this day and age requires both innovation and collaboration, and that hospitals need to get everyone at the table in order to make progress.
Parting thoughts
Ultimately, no matter where the country lands in terms of healthcare law, controlling costs will be paramount. Value-based models are coming online and hospitals and health systems need to adapt. It will be interesting to see in the coming months and years how healthcare organizations are adopting to these payment models as well as legislative efforts.
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Kathy started her career in television news writing and producing. She then worked at a public relations agency and as a freelance writer before joining Dimensional Insight in 2013.
Kathy has presented at several events in both healthcare and wine & spirits, including the Healthcare Innovation Summit, the Healthcare IT Marketing & PR Conference (HITMC), and the WSWA Women’s Leadership Council (WLC) Conference. Kathy is a Fellow in the American College of Healthcare Executives (ACHE) and a member of Women of the Vine & Spirits.
She is also host of the Smarter Healthcare Podcast (www.smarthcpodcast.com) and is a member of the Forbes Communications Council.
Kathy holds a bachelor’s degree from Dartmouth College and an MBA from Boston University.
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