You can take this to the bank. Every innovation in the production of every good or serviceanything that lowers costs or increases qualityoriginates on the supply side of the market.
This principle applies to health care in spades. For as long as I have been in health policymore than 30 yearsI have been dealing with non-doctors who have a deep, abiding desire to tell doctors what to do. Yet I dont know of any example anywhere in the world where this approach has ever worked.
If the definition of insanity is repeating the same thing over and over again and each time expecting a different result then insanity is the appropriate word here. The Obama administration has spent millions of dollars on pilot programs and demonstration projects in a fruitless attempt to discover how to better practice medicine. It has spent millions more trying to herd Medicare patients into Accountable Care Organizationssuper HMOs with financial incentives to hit quality measures. That hasnt worked either.
So what does the Obama Administration propose to do about all of this? More of the same.