Can U.S. get better health care at a manageable cost?

Updated 10:00 AM Sept. 25, 2006

Can U.S. get better health care at a manageable cost?

By Kara Gavin
UMHS Public Relations

What do big automakers, drug companies, health insurers, hospitals, doctors, elected officials and health researchers have in common?

All are staring down the barrel of a national health care crisis that already is severe and threatens to get worse as the baby boom generation starts to suffer age-related illnesses that require costly care. And things will get better only if many segments of society work together to find new ways to address the manner in which diseases are prevented and treated, and how to pay for the prevention and treatment.

This was the consensus at a Sept. 18 forum that brought together representatives from many sectors involved in caring for patients, paying for care and developing new means of preventing, diagnosing and treating disease. It was the first in a series of events sponsored by the University and Pfizer.

More than 150 members of the business, medical, government, research and nonprofit communities came together for the event, called "Providing Better Health Care at More Manageable Costs." It was organized by a committee led by Dr. Paul Taheri, associate dean of the Medical School, associate professor and associate chair of surgery, and assistant research scientist at the Ross School of Business.

Health care is a "very complex problem and not easy to solve, but that doesn't mean we shouldn't try," said President Mary Sue Coleman, who opened the forum by encouraging attendees to brainstorm ideas for changing health care and to work together to set them in motion. "We need to be willing to examine everything we do and propose ideas that might be part of a solution."

Her remarks were followed by an address by Hank McKinnell, chairman of the board and immediate past chief executive officer at Pfizer, the world's largest pharmaceutical company. He said the only way to make health care more affordable is to involve all interested parties in devising solutions. He noted the important role of academia in asking the "difficult questions" and saluted the U-M Center for Value Based Insurance Design for its efforts to explore the connection between employees' out-of-pocket insurance costs and health outcomes.

To get better health care at lower cost, McKinnell said, will require a new definition.

"The problem is not the cost of health care, it's the cost of sick care," he said. "The system only comes into action when something is done to a person who's sick. We should be paying for health," he said, by giving doctors, hospitals and individuals incentives to engage in prevention and wellness. He pointed to a project in Florida co-sponsored by Pfizer that helped 175,000 Medicaid participants with chronic conditions get better care, saving the state $40 million.

U-M Executive Vice President for Medical Affairs Dr. Robert Kelch laid out some hard truths, including the fact that 10 percent of all Americans are responsible for 70 percent of the nation's health care spending, and that a lack of insurance and preventive care for some drives up the cost of health care and health insurance for all.

"We need to align incentives with behaviors so that quality goes up, costs go down and value increases," he said. "The country is getting close to consensus that we have to have everyone have some sort of coverage," Kelch said, adding that now the challenge is to reach consensus on a reasonable preventive plan for all.

The discussion panel for the event included representatives from Ford Motor Co., Blue Cross Blue Shield of Michigan, and the Greater Detroit Area Health Council, as well as U.S. Rep. Mike Rogers (R-Brighton). Moderated by WDIV-TV 4 anchor Guy Gordon, the panel and speakers delved further into specific health care issues, ranging from measuring the quality of care and reducing administrative costs to giving individuals more information about costs and more of a financial stake in their own health decisions. The impact of regulation, litigation and cultural lifestyle choices also were explored.

"Significant changes are needed, and one approach won't do it. Our current system won't withstand the pressures of tomorrow." said Kelch, who cited several quality-improvement projects now led by University researchers and clinicians. "We're making some headway, but we have a long way to go."

Event organizers hope to hold additional discussions and open meetings, with the next one scheduled for early 2007. Any member of the University or business community interested in participating may contact Taheri at taheri@umich.edu.

Can U.S. get better health care at a manageable cost?

More Stories