Covered California as a Catalyst for Payment Reform

For this week’s Think Tank, California Healthline asked: How Can State Hasten Payment Reform?

It’s a great question.

In my opinion, Covered California should act as a catalyst, using its role as an active purchaser to set up true “managed competition”. So, effectively, we would be incentivizing the development of a series of competing Kaiser Permanentes, though they would not all have to be formally integrated. Each of these non-overlapping integrated delivery systems would compensate its providers for improving the health outcomes of its members rather than for the volume of services they provide.

To read my full response, as well as other stakeholder opinions, click here.