WASHINGTON (AP) – Medicare will change the way it pays hospitals and doctors to reward quality over volume, the Obama administration said Monday, in a shift that officials hope will be a catalyst for the nation’s $3-trillion health care system.
“It is in our common interest to build a health care system that delivers better care, spends health care dollars more wisely and results in healthier people,” said Health and Human Services Secretary Sylvia M. Burwell.
A broad cross-section of health-care industry representatives attended Burwell’s announcement, including insurers, hospitals, and doctors, as well as employers, who provide coverage for most workers and their families.
The shift won immediate support from insurers and the American Hospital Association. The professional group representing primary care doctors also said it’s “on board.” But American Medical Association president Robert Wah stopped short of an endorsement, telling reporters his group is encouraged by the administration’s overall direction but wants specifics.
Burwell also announced the formation of the Learning and Action Network, a group that will bring together a wide range of affected parties to drive change in how America pays for health care. It was unclear Monday whether the group will operate under federal open meetings rules. A first meeting is tentatively planned for March.