The Beginning of the End of Fee-for-Service Medicine

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If ever there was a time for a new healthcare payment paradigm, the time is now. Healthcare providers can no longer rely upon an outdated fee-for-service payment model to provide long term financial health for their organizations. They need to consider an immediate redesign their operating revenue portfolios to (1) better align their fee-for-service prices with actual cost; (2) convert more of their physician services to managed risk and value-based care arrangements; and (3) consider strategic alignments or potential mergers with health insurers of scale in their markets.

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The "New Normal" Medicaid: A Viable Public Option Alternative to Medicare-for-All

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All this likely points to renewed arguments that a Medicare-for-All single payer government healthcare system would be a potential solution to this new normal scenario. We do not support that plan for all the reasons described above. However, we are convinced that the current crisis will require some type of public option alternative going forward. We believe that the New Normal Medicaid program we described last month could be utilized as one model for this type of public option alternative.

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The “New Normal” Medicaid: A Practical Approach for State & Local Government Relief

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Our practical solution and rationale, outlined below, proposes to mirror the Medicare funding model by transferring all Medicaid funding responsibility to the federal government. This bold action, which is in keeping with much of the government’s virus response, better positions the U.S. healthcare safety net to perform its critical task in this crisis and its aftermath.  If it is to care for us, we must first care for it.

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