When you hear the phrase “healthcare innovation,” what naturally comes to mind is technology. Genomics, analytics, telemedicine and remote monitoring, mobile apps and a dozen other technological advances are improving care in all kinds of ways. But there is another area of innovation that could have an even bigger impact on the health of U.S. residents: new ways of paying for chronic care management.
Historically, U.S. physicians – and especially primary care physicians – have been paid far more for what they do with their hands than what they do with their minds. For a variety of reasons, Medicare and private health plans paid for office visits and procedures, but paid little for medical management, essentially prioritizing procedures and doing things to the patient over care to prevent the illness in the first place. The result of this short-sighted payment environment has been skyrocketing costs, inefficient use of resources and poor health outcomes. As a nation, more than 75% of our healthcare spending is on people with chronic conditions, and seven out of 10 deaths each year are from chronic diseases.
