We’re going to reduce healthcare costs by $1.7 trillion over the next 10 years, says a group of major industry leaders. It sounds like a dream – everyone (hospitals, doctors, pharmaceutical and device manufacturers, labor unions, insurers) is finally coming together to play nice in the sandbox for the good of the nation and its healthcare system. But will it really come to fruition? I’m a bit hesitant to believe that it will be that easy.
I’ve been watching the recent actions of Jeff Immelt, the CEO of GE, with great interest and can’t help but wonder if there’s some connection between the healthcare group’s proposal and his direction and strategies for GE.
I’m all for it, of course. It’s great for this group of players to join together, gain consensus and commit to lowering healthcare costs – that’s what we need to make a difference. However, the dynamics will surely be interesting as they play out. Although they’re proposing one thing, I wonder if, when push comes to shove, they’ll have a difficult time standing tall in their original commitment and stance, particularly as profits, market share and investors are on the line.
GE, for example, makes a good percentage of its money in scanning equipment, though it “has a stake in almost every sector of the economy from light bulbs and credit cards to windmills.” Within its healthcare division, GE announced its “Healthymagination Initiative,” committing $6 billion “to enable better health focusing on cost, access and quality.” The original press release breaks the $6 billion down as $3 billion on innovation, $2 billion on financing and $1 billion in related technology to drive improved care in rural and underserved areas. It sure sounds noble, but let’s not break out the Nobel Prize quite yet. Immelt makes no bones about it: “We don’t run a charity at GE. We’re in business to make money for our investors.”
When it comes down to their own reduced revenues, margins and market share, will our group of collaborating healthcare providers be just as honest as Jeff Immelt?