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Getting Healthcare Reform Done with the Entire Supply Chain
Date:4/19/2011

lping make healthcare one of the most efficient industries."

(For access to the Bruce Johnson keynote: http://www.ghx.com/supplychainsummit/live-from-the-summit.aspx )

Senators Bill Frist and Tom Daschle on Healthcare Reform

Sen. Bill Frist, in his remarks, agreed that the value equation is of primary importance in getting to the healthcare reform end game.  In talking about the framework and background of the healthcare bill, Sen. Frist was quick to clarify that it's not actually a reform bill but rather an access bill.

In presenting how he believes the industry will evolve and adapt, Sen. Frist referenced the cost/value equation, noting that "it's outcomes, it's results, it's quality, it's performance.  It's all those things which historically in healthcare we have not measured. But in business and in the manufacturing sector specifically we've been measuring all the time."  

Sen. Frist continued, "We are currently in a fee-for-service system which pushes quantity but are moving to one that's focused on the value equation.  We are doing this by moving from an open access, fee for service, shared rates system to care systems that over the next three to four years will inject cost and quality measures. A system that is evolving into a field of shared savings -- where if you save a dollar you can share in that savings -- to a full blown ACO model."

"Where the money goes there the behavior goes," Sen. Frist added.

Sen. Tom Daschle took the podium and added that "from a public policy perspective, we are experiencing a change in fundamental approaches relating to society that equal if not exceed the impact of the change to our monetary system in 1913, with the passage of social security in 1935, and the passage of Medicare in 1965. It is profound change.

"The country remains divided on what we want the he
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