ama rohack sections special groups hsr 6-13-2009
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AMA Health System Reform 2009
J. James Rohack, MDPresident-Elect, American Medical Association
Director, Scott & White Center
for Healthcare Policy
Professor of Medicine and Humanities, TAMHSC
AMA Sections/Special Groups
Chicago, IL
June 13, 2009
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Is it time
for health system reform? Does the current system work?
The private sector wants changes
The White House and Congresswant reform in 2009
How will new reforms alter the
medical practice environment? The stakes clearly are high
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AMA Priorities for
Health System Reform
Expand coverage and choice
Public sector reforms
Improve quality and patient safety Reduce costs
Enhance prevention and wellness
Payment and delivery system reforms
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Expand Coverage and Choice
Provide subsidies to low-income (e.g., tax
credits) to help purchase health insurance
Enable individuals to purchase insurance
through FEHBP or other options
Make regressive tax policies more progressive
Support direct subsidies for high-risk patients
(e.g., risk pools, reinsurance)
Require a greater level of individual
responsibility Implement health insurance market reforms
Continue to oppose single-payer plans
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Public Sector Reforms
Enroll SCHIP eligible children and expand
eligibility to higher percentages of FPL Eliminate existing Medicaid categorical
requirements and establish uniform eligibilityfor all below 100% of FPL
Replace Medicare SGR with alternative updatemethodology
Eliminate subsidies for Medicare Advantage
Allow use of public sector contributions tosupport existing private coverage
Improve physician payment levels
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The Medicare Dilemma:The Medicare Dilemma:Practice Costs vs. Medicare Payment UpdatesPractice Costs vs. Medicare Payment Updates
Physician cost data is from the MEI, a conservative measure of practice cost growth maintained by CMS. Medicare cuts are from the
2008 Medicare Trustees report, with adjustments to reflect Sec. 131 of P.L. 110-275. Prepared by American Medical Association,
Division of Economic and Health Policy Research, August 2008.
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Practice Costs
Medicare Cuts
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Improve Quality and Patient Safety Develop quality measures and appropriateness
standards
Develop evidence-based performancemeasures that enable continual QI and are thebasis for rewarding high quality, cost-effective,safe care
Support practice-based solutions (e.g., HIT,decision support, continual performancemonitoring) that enable incorporatingmeasurement into practice to support QI
Evaluate and improve PQRI
Facilitate physician involvement with patientsafety organizations
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Reduce Costs
Reduce the burden of preventable disease and
better manage chronic disease
Support comparative effectiveness research
Address variation in the utilization of health
care services, particularly at the state/regionallevel
Make health care delivery more efficient
Reduce non-clinical costs that do not contributevalue to patient care
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Enhance Prevention and Wellness Support integrated approach to encourage the
adoption of healthy lifestyles for physicians and
their patients Urge the inclusion of wide range of evidence-
based preventive services in insurance plans
Support adequate federal funding forbiomedical research, including prevention
Encourage CBO to score the long- and short-term budget deficit reductions and costs
associated with prevention Eliminate racial, ethnic and gender disparitiesthrough infrastructure and programmaticchange
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Payment and Delivery System Reforms
Develop physician-relevant HIT systems(e.g., interoperability) and provideincentives to build the infrastructure
Develop value-based payment
methodologies (e.g., patient-centeredmedical home, management of chronicdisease)
Pursue antitrust relief, fair physiciancontracting, and greater transparency
Enact alternative medical liability reforms
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Bending the Spending Curve
The AMA was a participant at the White
House on May 11, 2009 in an historic
meeting of the private and public sector to
achieve a vision of affordable healthinsurance coverage for all Americans
preserving choice of the patient of their
physician
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Four Ways to Reduce Costs
Administrative simplification, standardization, andtransparency to support effective markets
Aligning quality and efficiency incentives so physicians,hospitals, and other health care providers work togethertowards the same high standards
Coordinated care, using evidence-based best practicesto reduce hospitalization and manage chronic disease,and implementing proven clinical prevention strategies
Reducing costs through improved care delivery models,
health information technology, workforce deploymentand development, and regulatory reforms
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Follow up Letter June 1, 2009
Improve Care Transitions to Avoid HospitalReadmissions
Create Best Practices to Reduce UnnecessaryUtilization
Low Back Pain PCI for chronic stable angina
Induction of Labor/Caesarean sections
Sinusitis prescriptions and radiograph
Diagnostic imaging: CTA for PTE; MRI of knee,shoulder; CT/MRI of head; Stress Echo; SPECT MPI
Medication Reconciliation
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AMA Fully Engaged
Keys Points I have learned:
Together, we are stronger
Divided into our specialty tribes, we willlose
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