Abstract: America needs a far more efficient health care financing and
delivery system than the one we have. Our present system is a serious threat to
public finances and is pricing itself out of reach. At the root of the problem
are incentives and organization. The present fragmented fee-for-service small
practice model is filled with cost-increasing incentives. There are some
relatively efficient organized delivery systems, mostly based on large
multi-specialty group practices. Unfortunately, most consumers are not offered
the opportunity to save money and get better care by choosing such a system.
This situation presents great opportunities for improvement in performance by
re-engineering the system. However, for this to happen, incentives must be
fundamentally changed so that everyone is cost conscious and care is organized
in accountable care systems seeking improvement.