Biggest healthcare and biotech developments of the decade – Business Insider
The age of “value” kicked off with the ACA, too.
Obamacare wasn’t just about coverage. The health law created the Center for Medicare and Medicaid Innovation, fueling the move to value-based care, or paying doctors and hospitals for making patients healthy, rather than for each visit or surgery. While many of center’s experiments focus on the Medicare health program for the elderly, private insurers are taking similar approaches across the US.
Andy Slavitt, the acting Centers for Medicare and Medicaid Services administrator from 2015 to 2017, said the health law’s creation of the innovation center, together with the private experimentation, was creating rapid changes in US healthcare.
“In effect, you’re saying to the healthcare system, instead of thinking about how to make revenue, we’re going to give you a fixed revenue amount, and you think about the things you can control for,” Slavitt said. Slavitt is now a founder of the healthcare research group United States of Care and a general partner at the venture-capital firm Town Hall Ventures.
And while Obamacare helped fuel the move to value, the Trump administration has continued to push the healthcare system in the same direction.
“There’s been bipartisan support and, and I would say, work throughout the entire system around value-based care,” said Seema Verma, the current Centers for Medicare and Medicaid Services administrator. “There’s a lot of hope around and consensus around value-based care.”