A Nod To The Past Can Help Define Healthcare's Future

In 1970, healthcare spending represented 6.9% of U.S. GDP. Last year, findings from Centers for Medicare & Medicaid Services showed healthcare spending in the U.S. was expected to reach $3.8 trillion, representing 17.8% of GDP. It’s a sobering figure, and one that is only expected to rise during the coming years. Managing this spending is central not only for the health of the industry, but also for the U.S. economy.

For decades, the healthcare industry operated on a fee-for-service model. Costs soared in large part due to inefficiencies in the supply chain and care delivery related to this volume-based model. As a result, the U.S. is known for spending much more on healthcare than other countries, while delivering lower quality outcomes than many other developed countries.

Moving to a value-based care model could fundamentally shift how the healthcare industry conducts business. The industry would no longer support reimbursement based on volume, but instead, on value. Value in healthcare has been defined as "the outcomes that matter to patients and the costs to achieve those outcomes."

The full Forbes article can be viewed at this link.