In testimony before the U.S. Senate Special Committee on Aging, G. Richard Wagoner, Jr., chairman and CEO of General Motors Corp., recommended ways that Congress and private and public stakeholders can make health care “more affordable, accessible, and accountable” based on GM’s experience as the largest private purchaser of health care in the country. As a company that has seen a 335% increase in prescription drug costs over the past 12 years, Wagoner emphasized the need for a “vigorous and robust competitive prescription drug market” for more affordable pharmaceuticals, and information that allows consumers and physicians to choose the most effective drugs and treatments. Wagoner also called for the Health Care Wired Act to be enacted into law this year and for the government to disclose all Medicare data on provider cost and quality. To create a more competitive healthcare market, finding more efficient treatment for high-cost illnesses is crucial, he said.
Wagoner also highlighted several initiatives GM has undertaken to improve health care for its employees and retirees. One project in Flint, Mich., that aims to get physicians to follow guidelines for evaluation and management of chronic heart-failure patients has resulted in a 22% decline in the 30-day readmission rate and a drop of 27% in the 30-day mortality rate. A project launched this summer will pay hospitals a financial incentive if they strictly follow selected clinical guidelines, and consumers will be informed on how well hospitals are performing. GM has also worked with more than 400 hospitals and healthcare organizations to teach them how to be more efficient and eliminate waste from their processes. Average results: “a 60% productivity increase, a 46% inventory reduction, and a 51% lead line reduction,” said Wagoner. An e-prescribing initiative has eliminated thousands of potential drug errors, and helping insurers better negotiate with hospitals “that are restricting competition in the marketplace” has resulted in savings of $90 million in one year in Dayton, Ohio. Read the written testimony.
