Last week we examined the evolution of television, with a particular focus on benefits to the consumer. This week, we are going to consider the history of hospitals and health systems.
15 years ago this morning, I took the L into the loop to a borrowed cubicle to start 3d Health. Thanks to our clients, professional staff, and friends, we have completed thousands of successful projects since January 16, 2002 and established rewarding relationships with truly great people.
Healthcare has often been compared to other “stodgy” industries such as banking and utilities - change-adverse industries that experienced consolidation and some degree of technical revolution for the consumer. But, what if healthcare is in for a more radical change? Maybe considering the dramatic change in how consumers access and view television is a better barometer of what is to come in healthcare.
President-elect Trump and the Republican-controlled Congress have been very clear about their desire to fully repeal Obamacare, even on Day 1 of the new Administration. This desire brings up many questions from the rest of us. Is this possible? Are they being literal? What are the biggest hurdles to getting this done?
Representative Tom Price is a Republican from Georgia, and, as you probably know, was recently nominated by President-elect Trump to head the Department of Health and Human Services. Price, 62, is an orthopedic surgeon from the Atlanta suburbs and the Chair of the House Budget Committee. Price began focusing his energies on dismantling Obamacare almost as soon as President Obama signed the law in 2010. Since then, he has drafted and promoted a series of largely market-based substitutes to overcome what he has described as “oppressive” federal government strictures and runaway costs.
So, what makes Tom Price unique on Capitol Hill?
On Tuesday, President-elect Donald Trump announced that Seema Verma would be his CMS Administrator, working under Representative Tom Price who was tapped by Trump to head the Department of Health and Human Services. By all accounts, Verma is very bright. She holds a master’s degree in public health from Johns Hopkins University and a bachelor’s degree in life sciences from the University of Maryland.
Verma is the President, CEO and Founder of SVC, a national health policy consultancy. Verma is well known to Vice President-Elect Mike Pence. She was the architect of Gov. Mike Pence’s Medicaid expansion in Indiana that is expected to play a key role in determining how Republicans “replace” President Barack Obama’s health care law. Her past actions could help us understand her strategy for healthcare moving forward.
In last week’s post we examined President-elect Trump’s policy prescription reforming healthcare. Our overall take-away was that thus far, the President-elect has outlined a limited number of free market principles that he would like to see implemented in healthcare, and his policy prescription is quite light on details.
Here is what we do know: Donald Trump has said that Mike Pence will lead the Administration’s healthcare efforts; Mike Pence respects Paul Ryan’s policy acumen and considers him a friend; and it is completely plausible that the Administration plugs into a more detailed plan and makes it their own. So, what is Paul Ryan’s plan?
Tuesday’s election of Donald J. Trump brings with it a high degree of uncertainty for the healthcare industry. President-elect Trump, along with the Senate and House leaders, have been very clear in their desire to completely repeal the Affordable Care Act. Conventional wisdom is that a total repeal is nearly impossible and the ACA would be shrunk rather than abolished. But, Trump has never been labeled conventional.
In an effort to continue to provide the most comprehensive and interesting data in the industry, we are constantly gathering information. A few weeks ago we discussed patient expectations for access to their primary care physicians. In this study, we learned that 77.4% of respondents expect to see a new primary care physician in seven days or less, which is much quicker than the reality across the country.
Recently we completed another national study of 3,030 potential patients and posed the question, “Where would you prefer to be treated for a minor illness?”
I know, I know, everyone is tired of thinking about MACRA. But, the final rule came out last week and it allows more flexibility than the proposed rule. In April, the CMS proposed their rule for implementing the Medicare Access and CHIP Reauthorization Act (“MACRA”). MACRA replaces the sustainable growth rate formula for physician pay under Medicare and attempts to shift the reimbursement methodology away from fee-for-service to a value-based payment system.