"It's Complicated": Marrying the Evidence on Health Spending to Health Policy Reform

For several decades, researchers at Dartmouth College have compiled mounting evidence that notable differences in the levels of health spending and utilization across the United States are not correlated with better health outcomes or increased patient satisfaction. In recent years, some leading health policymakers have recommended using such cost and quality measures to reward health providers on the basis of their "relative efficiency."

However, critics such as pulmonary physician Peter B. Bach, M.D., of the Memorial Sloan-Kettering Cancer Center have cautioned that the current approaches used in hospital efficiency rankings are unsound and fail to accurately identify high-performing providers. Other researchers, such as Andrew Rettenmaier of the Private Enterprise Research Center at Texas A&M University, have observed that different indicators of geographic variation in health spending related to types of insurance coverage show less potential for cost savings. On the other hand, Amitabh Chandra of Harvard University has argued that there is tremendous variation in the efficiency of local health delivery systems, and that we could reduce the rate of growth in health spending by rewarding those systems that successfully keep costs in check while delivering quality health care.

This forum examined what we have learned from research on geographic variation in health spending and which health policy reforms are more likely to succeed in strengthening incentives to improve the efficiency of health providers' performance.

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Thomas P.
Miller

What's new on AEI

In year four of Dodd-Frank, over-regulation is getting old
image Halbig v. Burwell: A stunning rebuke of a lawless and reckless administration
image Beware all the retirement 'crisis' reports
image Cut people or change how they're paid
AEI on Facebook
Events Calendar
  • 21
    MON
  • 22
    TUE
  • 23
    WED
  • 24
    THU
  • 25
    FRI
Monday, July 21, 2014 | 9:15 a.m. – 11:30 a.m.
Closing the gaps in health outcomes: Alternative paths forward

Please join us for a broader exploration of targeted interventions that provide real promise for reducing health disparities, limiting or delaying the onset of chronic health conditions, and improving the performance of the US health care system.

Monday, July 21, 2014 | 4:00 p.m. – 5:30 p.m.
Comprehending comprehensive universities

Join us for a panel discussion that seeks to comprehend the comprehensives and to determine the role these schools play in the nation’s college completion agenda.

Tuesday, July 22, 2014 | 8:50 a.m. – 12:00 p.m.
Who governs the Internet? A conversation on securing the multistakeholder process

Please join AEI’s Center for Internet, Communications, and Technology Policy for a conference to address key steps we can take, as members of the global community, to maintain a free Internet.

Thursday, July 24, 2014 | 9:00 a.m. – 10:00 a.m.
Expanding opportunity in America: A conversation with House Budget Committee Chairman Paul Ryan

Please join us as House Budget Committee Chairman Paul Ryan (R-WI) unveils a new set of policy reforms aimed at reducing poverty and increasing upward mobility throughout America.

Event Registration is Closed
Thursday, July 24, 2014 | 6:00 p.m. – 7:15 p.m.
Is it time to end the Export-Import Bank?

We welcome you to join us at AEI as POLITICO’s Ben White moderates a lively debate between Tim Carney, one of the bank’s fiercest critics, and Tony Fratto, one of the agency’s staunchest defenders.

No events scheduled this day.
No events scheduled today.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.