September 7, 2012 | Comments Off on Massachusetts Health Care Plan Update
Posted by Frank Ciesla
As pointed out in our previous blogs { http://www.njhealthcareblog.com/2012/08/massachusetts-health-care-plan/; http://www.njhealthcareblog.com/2012/07/massachusetts-provider-payment-controls-a-harbinger-for-the-future/; http://www.njhealthcareblog.com/2012/05/new-efforts-unveiled-to-control-payments-to-massachusetts-health-care-providers/; http://www.njhealthcareblog.com/2012/03/%e2%80%9cromneycare%e2%80%9d-a-precursor-of-%e2%80%9cobamacare%e2%80%9d/; http://www.njhealthcareblog.com/2011/10/government-coercion-as-a-vehicle-to-alter-healthcare/}, the State of Massachusetts, which enacted legislation that was the precursor to PPACA, has now passed legislation attempting to contain the cost of healthcare. The primary cost containment vehicle is an attempt to contain payments to providers. In light of PPACA, it is essential to develop an awareness concerning proposals that deal with cost control. There is no dispute that for PPACA to succeed, it will be essential to control the costs of healthcare. The New York Times had two articles, regarding this issue this week. One article was on proposed budgeting, which is a methodology used throughout Europe and Canada for National health care. Another recent New York Times article discussed bundling of payments. This is the beginning of a series of legislative proposals, which will be introduced in the next Congressional session to attempt to control health care costs.
What is clear from the events in Massachusetts, as well as the two recent articles, is that the attempt to control health care costs will reduce the reimbursement and payment to health care providers. It is essential that healthcare providers review the proposals as they are made and as they move towards adoption, so that they can adjust to keep their delivery system economically viable.