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Healthcare Startups Hint At Radically Simplified Payment Models

Home/Healthcare News/Healthcare Startups Hint At Radically Simplified Payment Models

Healthcare Startups Hint At Radically Simplified Payment Models

by Dave Chase | Forbes | February 5, 2016

Healthcare Startups Hint At Radically Simplified Payment Models

Sovereign Solutions Editor’s Note:

 This is quite simply…a remarkable article. DO read the featured article!

It is rare that I have little to add. But here is such an occasion since the author has done a masterful jobI will personally add to pay attention to the Rube Goldberg mention in the article.

Again, I simply emphasize that you read the featured article. From that article:

As much as consumers don’t like dealing with health insurance, that pales in comparison to doctors since they have to deal with it daily. In “The Story Behind Epidemic Doctor Burnout And Suicide Statistics,” insurance companies were cited as a primary factor driving burnout. If consumers don’t like them and healthcare providers don’t like them, one would assume that they would have at least slayed the healthcare cost beast or health outcomes had dramatically improved.

So the question then has to be do “we” as healthcare customers and other vested stakeholders in health see such a dramatic improvement? The author answers:

Unfortunately, that isn’t the case, either–despite selling lots of “disease management” and “wellness” programs there is little evidence these programs have made a meaningful dent in the explosion of chronic conditions.

Amazing, huh?

WHY do we persist on BELIEVING in this byzantine third party payment healthcare system?

Doesn’t it ever occur that unless the fundamentals change, the general outcome being higher prices and less satisfaction and access do not as well?

Fortunately, there are gentlemen such as the author of the featured post that are helping to illuminate where successes are being had and what is wrong and what to avoid in healthcare. Do yourself a big favor and give it a read.


Last night, the Wall Street Journal reported on 20 large companies forming an alliance to target healthcare costs. As big companies are wont to do, they are unnecessarily complicating things. They can save themselves a lot of time and money by understanding two simple items that have proven to slay the healthcare cost beast.

  1. Massive pricing failure is the biggest factor in out-of-control healthcare costs. In contrast to most markets where price correlates with value, it is often inversely correlated in healthcare. The solution to that problem is outlined below.
  2. Primary care has been massively undermined in this country. IBM studied the impact of their annual $2 billion spend on health benefits around the world. The results were conclusive–the countries where there were the most robust primary care models delivered the greatest value. This is why they dedicated Dr. Paul Grundy to lead the renaissance of primary care.

Few would argue with my characterization of the current healthcare payment model as a Gordian Knot designed by Rube Goldberg. I spent much of the early part of my career trying to make sense of it on behalf of providers as it caused them fits. Despite that, it’s remarkable how there is an implicit assumption that we’re stuck with that mess until the end of time.

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Do you have any objections, thoughts, concerns, or contributions? I REALLY WANT TO KNOW. Help me to make this a conversation!

Together we can map out better solutions and truly navigate clearer paths towards quality services, low prices, and better lives.

Oh! And as always, if you find this post useful, do me and so many others a huge favor. When it comes to this kind of information: share and share alike! Information is meant to be disseminated wide and far.

Sovereign Liberty Solutions

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By | 2017-03-28T13:50:26-04:00 February 8th, 2016|Categories: Healthcare News|Tags: , , |0 Comments

About the Author:

My name is Matthew. I am founder of and manage Sovereign Liberty Solutions. I am a proponent of free, voluntary association and expression. I understand that there is no single exception or excuse to violate this with the initiation of force, fraud, and coercion. I welcome a genuine dialogue & seek information, news, analysis, and, of course, solutions, whether it be on the individual level or a more voluntary association [group] or even "national" one.

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