AHA itemizes ‘immediately addressable’ aspects of affordability

The American Hospital Association is banging the drum on healthcare affordability. 

More specifically, it’s amplifying the observations and strategies it offered in a June report, “Making Healthcare More Affordable: A Blueprint to Lower Costs, Improve Access and Enhance Quality.” 

The recap comes in the form of a July 8 blogpost from Ashley Thompson, MHA, the organization’s senior VP of public policy analysis and development. 

“Improving affordability requires addressing the underlying drivers of cost across the system while preserving access to high-quality care in every community,” Thompson writes this week. 

The June report, she emphasizes, argues that “there is no single ‘magic bullet’ solution that will solve the affordability challenge.”

Knotty as the quest may be in toto, Thompson maintains, six integral areas are open for taking on incrementally. 

Thompson’s top three: 

1. Improving overall health.

Many of the highest costs are tied to chronic conditions that can be better managed or even prevented, Thompson points out. 

“While much of what contributes to good health occurs outside of the healthcare system and is influenced by a wide range of societal and environmental factors,” she notes, “expanding access to preventive services and strengthening connections between patients and primary care providers can improve outcomes while reducing the need for more intensive care.” 

2. Streamlining care delivery.

Hospitals and health systems are investing in coordinated and value-based care models that reduce service duplication, improve quality and better align incentives, Thompson cheers. 

“These approaches help ensure patients get the right care at the right time,” she adds, “which is essential to both better outcomes and lower costs.”

3. Cutting administrative complexity. 

At the same time, affordability will remain out of reach without addressing administrative complexity nestled in the system, Thompson underscores.

“Providers, insurers and employers are engaged in countless transactions that add cost without improving care,” she writes. “Simplifying billing, standardizing processes and reducing unnecessary requirements can lower system-wide expenses that ultimately affect patients and purchasers.”

Thompson also fleshes out, in brief, managing the costs of caring, holding commercial insurers accountable and advancing innovation.

“Taken together, these six areas reflect a broader point: Affordability is a system-wide challenge that requires shared responsibility,” Thompson states. 

More:

‘Hospitals and health systems need to do their part by investing in new models of care, improving efficiency and reducing low-value services. But meaningful progress will require action from all stakeholders, including commercial insurers, drug manufacturers, policymakers, employers and individuals.’ 

Read Thompson’s full post here and the AHA’s June report here.