Forbes June 13, 2024
The relationship between Medicare and healthcare providers has long been contentious, and recent developments suggest it’s only deteriorating. Hospitals continue to be reimbursed by Medicare at a fraction of what private insurers pay, and Medicare payments to physicians still fail to account for inflation. These problems illustrate ways in which our healthcare system is broken. There is a way forward, but it requires broad, system-level solutions that treat root causes rather than just symptoms.
Medicare’s policy of underpaying providers isn’t new. But it represents short-term thinking that doesn’t address decades-long misaligned incentives and underlying inefficiencies in the industry. Positive long-term change can only come from implementing a new business model that aligns payments with quality outcomes.
A recent RAND study...
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