Constant change is the "new normal" in health care, and for me, some of the most exciting changes involve redesigning the way we pay for care. Recent federal legislation and Medicare program directives have aligned the monetary stars in favor of fundamental change in provider reimbursement, emphasizing health outcomes and value over volume of services.
Public and private payers, purchasers, providers and consumers all recognize that payment reform is essential to achieve better care at lower cost. First, though, we need more comprehensive quality and cost information to make the business case for change, enhance delivery systems and measure outcomes. At the core, we need reliable, transparent data about costs and their drivers.
That's why the Network for Regional Healthcare Improvement (NRHI) was so excited to receive funding from the Robert Wood Johnson Foundation (RWJF) for a multiregional pilot initiative focused on producing, sharing and using data on the Total Cost of Care (TCoC). This initiative, launched in November 2013, has developed a standardized approach to measuring and reporting the total cost of care and resource use across regions, and has created and tested a process for benchmarking multi-payer commercial health care costs.