This policy memorandum identifies five innovative approaches a health system can adopt to improve quality, control costs, and maximize patient access to care. The strategies examined include the Hospital Value-Based Purchasing Program, the Pioneer Accountable Care Organizations Model, Health Information Technologies, Comparative Effectiveness Research, and targeted interventions for specific patient populations. The memo evaluates which innovation is most critical—Health Information Technologies—and which is most difficult to implement—the Value-Based Purchasing Program—due to legal and ethical barriers. Each approach is assessed for its potential to improve health system performance, with conclusions drawn about the optimal path forward.
This memorandum describes a series of innovative ideas that can be used to meet improvement goals concerning cost, quality, and access in health care. A discussion of which innovation is most critical to ensure the health system achieves its goals is followed by an analysis of which innovation will be the most difficult to achieve and why. Finally, an explanation of why implementing these innovative ideas will improve health system performance is provided, followed by a summary of key findings in the conclusion.
Five innovative ideas that our organization can implement to meet improvement goals around cost, quality, and access are as follows:
A. Hospital Value-Based Purchasing (VBP) Program. This program introduces changes to how the Centers for Medicare & Medicaid Services (CMS) pays health care organizations by linking payment to value, with the goal of providing higher-quality care for all patients.
B. The Pioneer Accountable Care Organizations (ACO) Model. This model is intended to enhance the effectiveness of private payer programs by aligning reimbursements with provider incentives to improve the quality of health care services and reduce Medicare costs for patients.
C. Health Information Technologies (HITs). A growing body of evidence indicates that HITs can reduce health care costs by improving data-sharing practices among all health care stakeholders, including health care organizations, payers, and patients.
D. Comparative Effectiveness Research (CER). These innovative approaches can enhance health care accessibility by evaluating: (1) the risks, benefits, and costs of different health care practices; (2) policies that influence those practices; and (3) strategies for targeting practices to specific groups of patients.
E. Targeting Specific Patient Populations and Clinical Areas. This innovative approach can also help control health care costs by identifying specific cost-containment opportunities within defined patient populations and clinical settings.
At present, Health Information Technologies (HITs), including electronic medical records (EMRs), represent the most critical innovation needed to ensure the health system achieves its goals (Fox, 2013). By enabling more efficient and accurate sharing of patient data across providers and payers, HITs form the foundational infrastructure upon which many other quality and cost improvements depend.
"Legal and ethical barriers to VBP implementation"
"Each strategy analyzed for performance impact"
Taken together, each of these innovative ideas holds promise for achieving improvement goals concerning cost, quality, and access, with the implementation of health information technologies representing the optimal strategy at present. While Value-Based Purchasing presents the greatest implementation challenges due to legal and ethical barriers, all five approaches offer meaningful pathways toward a higher-performing health system.
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