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Washington Post – The real world has moved on.

An article in the Washington Post recently caught my eye.  The title, “Real world making health-care reforms” was concise and summed up the point the author (Steven Pearlstein) was making nicely (and something we have said time and again here and in our newsletter), while Washington is busy debating and changing positions as often as we brush our teeth, the real world keeps moving forward on healthcare reform.   And, even though we feel you probably already know much of what Mr. Pearlstein has to say here, it is worth reading again, if only to reinforce your belief in what you are doing.

Pearlstein comments on the focus now of government and insurance companies on contracting based on quality; the value-based purchasing approach.   It seems WellPoint has now decided that unless the hospitals it contracts with achieve certain quality benchmarks, there will be no payment increase at contract renewal time.  It’s the ACO concept taken to the private level.   And, there’s no reason why employers shouldn’t use the concept either, in all of their contracts (with vendors, with providers, with hospitals).  Pay for quality.   Establish the benchmarks you want to achieve and contractually bind the provider/vendor to achieving those goals or no increase in pay is given (or, worse yet, the contract is negated).  I know some of you have already moved to this place in negotiations – away from bonuses and into penalties.   Maybe you have been back and forth between the two.  Whatever works – in the real world where we all live.