December 18, 2007
Health Savings Opportunities
The Commonwealth Fund released a new study today that puts a price tag on health care cost savings opportunities. Where lies the greatest chance of saving money while improving health care outcomes, according to the study? Comparing different treatments for disease, and focusing physician incentives on using the most cost-effective means. It could save payers $368 billion over ten years.
Other areas highlighted:
Strengthen Primary Care and Care Coordination: saves $194 billion over 10 years if all Medicare fee-for-service beneficiaries were enrolled. "Estimated national savings would be larger if this approach were adopted by all payers," the study said.Public Health measures like reducing tobacco use through increasing federal taxes by $2 per pack of cigarettes: saves $191 billion savings over 10 years, shared by all payers.
Promoting Health Information Technology: saves $88 billion over ten years.
Isn't it interesting that the much ballyhooed Health IT produces the least savings among those items highlighted in the press release (there's about 15 technologies analyzed in the full report)? As an individual who'd like to have personal access to his own medical records, I'm all for computerized medical records. It will substantially reduce medical errors, too. But as a cost saver for the overall system, it pales besides more significant health care reforms like comparative effectiveness research tied to incentives for adoption, and strengthening our primary care system.
The Commonwealth Fund deserves a pat on the back for financing this important study. It gives reformers solid information to argue in favor of these crucial reforms in the years ahead.