The Key to Healthcare Reform

Hidden in Jason Fodeman’s post at RealClearHealth on reforming the healthcare system is the too unappreciated key:

In repealing and replacing the ACA, the Trump administration should work to create a simpler government physician reimbursement system that better aligns scarce resources with demand.

Compensation is key. Very little can be accomplished in reforming healthcare without addressing the who, how much, and when of compensation.

The balance of the article is full of misconceptions. For example, in the providing of healthcare services the patient is not the buyer and frequently the physician or other service provider is not the seller. Since neither the buyer nor the seller have any commitment to cost control, there is no cost control. Since the interests of the patient, the provider, the buyer, and the seller are improperly aligned, nobody’s objectives are accomplished in a satisfactory manner.

Some day we will realize that the fee for services model is unworkable by anybody anywhere. Until then healthcare reform will remain beyond our reach.

1 comment… add one
  • Jimbino Link

    Fee for services works just fine if you take your cash dollars to Costa Rica, Cuba, Mexico, Argentina, Brazil, Panama, India, Thailand, Czech Republic, Hungary and other places specializing in Medical Tourism.

    On the Web you can find a colonoscopy in Brazil for $450 total, for example.

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