By Dr. Jed Constantz | Healthcare Strategist – Primary Care Finance and Delivery
Better known as cost shifting. The simple truth about healthcare pricing, among many, is the tendency to establish a pricing or so-called PPO Network fee arrangement driven by a revenue neutral strategy by the provider, group, or organization setting the price or agreeing to the fee. This means the provider is no different than the local farmer at the farmer’s market. The price of potatoes is driven by and affected by the price that farmer can get for tomatoes. Point being, in healthcare, the provider has a revenue goal in mind and will manipulate the price or the combination of services delivered to hit those revenue goals. The trick for those who purchase healthcare services, either for themselves or on behalf of others, is to control the combination of services in terms of volume and source without sacraficing the well being of the patient.
To that end, I challenge folks to think of Advanced Primary Care models as those sources of primary care capability ready, willing, and able to think of themselves as purchasing agents on behalf of themselves or those they underwrite care for. By choosing to identify and work with the correct community of primary care, those who pay for care, can be assured of the right care, at the right time, in the right venue, and from the right source.
Such care delivery is more affordable and of higher quality. I for one would sign up for that in a minute. How about you?
Categories: Best Practices