SGIM Calls for End to Fee-For-Service
Schroeder says many of the recommendations in the report will face significant opposition from vested interests in the healthcare sector. Still, he hopes the report will "advance the dialog" about how transitioning compensation models.
The difference now, he says, is the widespread understanding that the growth in healthcare expenditures—now averaging about $8,000 annually per person in the United States—is unsustainable.
"I have been following this stuff since the 1970s. I have never seen it this intense and I have never seen the non-healthcare sector so vested in solving this issue," he says.
"The status quo is always comfortable. It's always hard to get people to accept change if they think they are giving something up. On the other hand there is this huge realization that compared to the last 30 years the cost question is here to stay. It's not a question of 'if' but 'how.'"
"There is going to be a lot of back-and-forthing. When you take money out of something the people who are affected are going to push back. There is $3 trillion in the healthcare system now. We are at 18% of GDP. Many prestigious bodies have said there is a tremendous amount of wasteful care, so I can't believe we can't find ways to work things through."
"I would urge the players to try to carve the best kind of solution they can to maximize value to patients, make doctors and hospitals feel like they are providing good value, and bend the cost curve. Will it do so? I certainly hope so."
John Commins is a senior editor with HealthLeaders Media.
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