A commentary about healthcare reform by HFMA President and CEO Richard L. Clarke was published on Forbes.com today. Clarke’s article emphasized the need for an appropriately timed and funded transition to healthcare reform in light of the magnitude of cash and capital flow changes that could result from reform legislation.
“Reform bills before Congress must contain language and funding to manage whatever transition there is,” Clarke said. “If a transition plan--or at least, steps toward such a plan--doesn't emerge from the reform debate, the financial market turmoil of the past year will seem like child's play.”
Clarke pointed out that past healthcare payment policy shifts have not occurred suddenly. For example, the Medicare DRG system incorporated a transition of four years and was preceded by a decade of preparation--and it affected less than 12 percent of total healthcare expenditures at the time. In contrast, current reform proposals involve almost the entire $2.4 trillion healthcare system.
Realistic expectations about what must be done and when will help cushion the impact of the coming revenue shifts, Clarke concluded.
