This week’s healthcare news focuses on the industry’s shift to value-based healthcare. Early this week, the U.S. Department of Health and Human Services (HHS) announced plans to overhaul the Medicare reimbursement system.
1. This Monday, HHS released goals to shift the Medicare program from a volume to value-based payment system. According to the HHS’s timeline, 50 percent of Medicare reimbursements will be tied to quality and value by 2018. HHS is optimistic that this new system will help to reduce the volume of unnecessary procedures and work towards improving patient care. Read more here.
2. Several large health systems and insurers have united to form the Health Care Transformation Task Force, a group dedicated to lowering healthcare costs and shifting the industry towards quality-based care. The group will focus their efforts on accountable care practices, bundled payments, and managing patient cost. The Task Force hopes to convert 75 percent of their business contracts to this new model by 2020. Read more here.
3. CMS announced early this week that 3.2 million adults joined the Medicaid program during the first three months of 2014. While CMS tracks enrollment numbers each month, this is the first time that the organization is taking a more in-depth look at Medicaid enrollment data since the ACA. According to the Kaiser Family Foundation, 21.6 million uninsured adults were eligible for Medicaid when the ACA was enacted in 2010. Read more here.
4. According to a recent report by the Altarum Institute, healthcare spending in the United States rose five percent from November 2013 to 2014. Since 2007, healthcare spending as a percentage of GDP increased from 16 to 18 percent. The report indicates that hospital spending was the largest cost category followed by physician and clinical spending. Read more here.
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