NEW BRIEF: Empowering Providers to Promote Healthcare Innovation
Declining productivity growth in the delivery of healthcare is not innate to the sector. It simply reflects the current policy environment. Incentivizing a more productive and cost-effective healthcare provider sector is possible but requires comprehensive policy reforms that eliminate the obstacles blocking progress. These reforms include:
- Implementing the insurance reforms discussed in Part 5 that, from a provider perspective, will incentivize the creation of innovative payment models. New payment models create opportunities to better align the incentives of providers and patients.
- Implementing regulatory reforms that include eliminating certificate of need laws, scope of practice laws, and interstate licensing obstacles. Reforming these laws would create a more competitive healthcare sector and empower providers to develop innovative methods of delivering higher-quality care at lower costs.
- Sustainably addressing the persistent tort liability costs. The problems created by frivolous and excessively costly litigation drives-up overall healthcare costs and decreases the quality of care. Eliminating this pall of the healthcare sector is essential as a result.