Healthcare reform is "around us, on top of us, it’s all over," said Richard L. Clarke, president and CEO of the Healthcare Financial Management Association, during Tuesday's keynote speech that kicked off the HFMA’s Virtual Healthcare Finance Conference and Career Fair.
In his speech, "Healthcare Reform – The Road Ahead," Clarke said the healthcare industry could learn from other industries that have faced similar challenges.
“Healthcare is in an unsustainable position – on a burning platform – we have to move or something bad will happen," he said. "We must change the system."
A lack of coordination and appropriate incentives makes the system inefficient, said Clarke. Also, he said, "the quality level is not being reflected in the value that is being produced."
Clarke said the rate of improvement is less than in most other countries, and efficiencies and redundancies are dragging the system down.
The nation is experiencing an unsustainable increase in health insurance premiums, said Clarke. As a result of the recession, there has been a 2 percent to 3 percent increase in unemployment, which has left as many as 7 million people without health insurance. This has forced many people into state and federal programs such as Medicare and Medicaid. "This is still a growing pool," he said.
Premiums are increasing at a much faster rate than consumers and employers will be able to handle, he said. Employers are looking for a fix by switching to plans with higher deductibles that transfer more spending onto their employees.
The Obama administration has made healthcare reform a key domestic agenda item. Reform bills put forth by the House and Senate are similar, but "it's still a lot of money," said Clarke. To show a positive net impact, he said, would take about 10 years.
"Payment reform is based upon how much we organize and coordinate ourselves," said Clarke.
“The quality process that has not been there in the past is a very important component,” he said. “We need to be more consumer-centric. Making a commitment to change is a very important aspect to moving (an) organization from where we have been to where we must go.”