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Restoring the Physician/Patient Relationship: An Interview with Jackson Healthcare's CEO
Date:10/14/2009

objectives of healthcare reform?

I believe the key is tapping computer and banking technology and utilizing smart cards. A single smart card could handle payment for medical services and house medical history, while eliminating administrative overhead.

If every patient had a personal health smart card, similar to a debit card with a memory chip, imagine how much safer and efficient many of our medical transactions would be. The card would contain a patient's eligibility, coverage level, deductibles, protocols, medical history, care plan, etc. This card could be used anywhere. It could compute co-pays, and authorize pre-certifications and procedures for treatment. Medical providers would be paid immediately and administrative costs that currently exist in the system would be eliminated.

From a care standpoint, it could eliminate duplicate tests, labs and radiology procedures. And it would serve as a central repository for all medications a patient is taking, avoiding medication errors and mismanagement.

How would medical costs and payments be controlled?

A national fee schedule should be created and contain modifications based on the cost of living in each geographical region. This fee schedule would be approved by physicians, hospitals and relevant third parties, including actuaries. Medical professionals could still differentiate their income by service, efficiency and/or customer care. Other services that are self pay, such as certain surgeries, private rooms, birthing suites and the like, also could be added.

All physicians and other providers would be part of the same system, eliminating the administrative expenses of managing and supporting provider networks. This accounts for 1% to 2% of healthcare costs.

Also, a healthcare reimbursement trust would be established and managed by independent financial entities for beneficiaries. Just as insurance companies do, all funds held in the trust
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