Incentives and information drive innovation in health care: lessons from Medicare Advantage

STAT January 4, 2021
Bob Kocher and Bryan Roberts

Health care in America often feels like it moves at a glacial pace, if that fast. Case in point: fax machines remain indispensable as a way of transferring information. On a larger scale, the U.S. health care system still struggles with readmissions, medication adherence, chronic disease outcomes, and more. True innovation is rare.

But every so often a crack in the ice occurs that leads to rapid change. Sometimes legislative action is the trigger. The Affordable Care Act and the HITECH Act sparked lots of innovation and startup activity. As we look to 2021, though, the odds of a split or Republican-controlled Senate are high and so the likelihood of major innovative legislative change is low.

In the absence of...

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