Today, the Connected Health Initiative (CHI) published a white paper recommending specific actions to achieve the transition to value-based care in the United States by removing policy barriers to the adoption of modern software-based technologies in healthcare.
The report finds that current U.S. healthcare payment policies, particularly within Medicare, are stifling the adoption of modern technologies like artificial intelligence (AI) and remote patient monitoring (RPM). Absent policy changes to address these barriers, they will continue to prevent improvements in individual patient outcomes and population health management, as well as cost reduction.
“It’s no secret that the U.S. healthcare system consistently underperforms when it comes to costs and outcomes. The goal of transitioning to a value-based care system that focuses on quality over quantity is far from realized with the status quo, stifling innovation in healthcare that could advance the Quadruple aim – improve patient outcomes, augment population health management, reduce costs, and support the healthcare workforce,” said Brian Scarpelli, executive director of the Connected Health Initiative. “CHI’s white paper highlights the specific ways in which today’s approach has prevented the uptake of software-based tech in healthcare, and offers a range of policy changes that would catalyze the usage of innovative technology in healthcare settings. We urge the Trump Administration to take immediate action to modernize these policies and help unlock the full potential of connected health technologies.”
The report provides four recommendations for policymakers and regulators to better align payment policies with care model innovation:
- Modernize Payment Policy to Enable Technology Adoption: Remove restrictions that prevent reimbursement for virtual care, RPM, and software-based clinical interventions.
- Explicitly Support Care Model Innovation in Value-Based Payment Models: Notably, policy changes are needed to ensure that the actual value of software-based innovations are reflected in CMS’ Practice Expense methodology.
- Address Policy-Induced Barriers that Block Innovation: Create new pathways for the government to quickly and effectively integrate new technology that will lower costs.
- Foster Organizational Readiness and Capability to Implement Advanced Tools: Provide technical support and assistance to help organizations and health systems implement these changes.
Policy reforms must be focused on enabling and incenting the adoption of modern software-based technologies and care model innovation. It is critical that the Trump Administration work to update payment systems to achieve our collective goals of improving value-based care, which will lead to improved quality of care, lower costs, and better patient experience.
Read the full report: https://connectedhi.com/value-based-payment-reform-leveraging-saas-technologies-for-care-model-innovation/
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About Connected Health Initiative:
Connected Health Initiative (CHI) is the leading multistakeholder policy and legal advocacy coalition working to clarify outdated health regulations and incent the use of connected health technologies. Driven by a consensus of stakeholders from across the healthcare and technology sectors, CHI aims to realize an environment where Americans can improve their health using digital and connected technologies to enhance health outcomes and reduce costs equitably.
About Robert Longyear
The white paper was researched and developed in collaboration with CHI Steering Committee member Robert Longyear. Longyear is CEO of Longyear Health, a health technology, business strategy, and policy consulting firm, and is former president and co-founder of Avenue Health, a seven-state remote patient monitoring and chronic disease management company.
