UnitedHealth, Nations largest insurer, is latest to announce fee overhaul
Wall Street Journal 2/9/12 New Way to Pay Doctors
According to the Wall Street Journal, UnitedHealth Group (UHC) is changing the way it compensates doctors, following similar measures by other insurance companies.
“This is not just an exercise or a pilot. It represents a significant change in the architecture of our compensation models for doctors and hospitals.” according to UHC chief clinical officer Sam Ho.
The nation’s largest insurance company says it’s new plan aims to focus on quality and efficiency of healthcare services, rather than volume of services. Physicians would get bonuses for a significant part of their compensation if they reach certain goals, which may actually be a share of the overall savings achieved. Goals could include patient satisfaction, their getting recommended screenings, and total costs of care. The insurance company projects the new method may create twice as much in savings as in costs involved.
UHC’s stated goal is supporting “patient centered medical homes” such as PCPs or hospitals which coordinate care in the brave new world of PPACA, also known as Obamacare, which kicks into high gear in 2014.
Weiniger’s Prediction: Service will suffer, costs will go up, there will be no savings realized in a zero sum game, creating the:
Losers: patients and providers
Winners: insurance companies and government
Potential Opportunity for Providers going forward: Focus on building perceived value so people choose to work with you as a partner in keeping them healthy.
Of escalating import to people- take care of your health.
