• Liberty16

    The problem here is that fee-for-service payment models, where doctors are paid according to technology than biology, by the number of tests they do rather than by the number of illnesses they treat. As long as doctors are paid this way, they will have the incentive to increase treatment volume rather than quality. A better payment system, one which the US private health care system is moving toward, is episodic or bundled payments–paying providers a lump sump per “episode” of a sickness.

    This works especially well with high-paid specialists like cardiologists and opthalmologists, exactly those who are targeted by these cuts. A successful example of this would be Pennsylvania’s Geisinger hospital network’s ProvenCare coronary artery bypass surgery program, which follows forty specific clinical processes for each patient; it achieved 44% 30-day readmission reduction over 18 months.

    So actually, I don’t think this is a case of Canada following America, because American providers are trending away from the entire payment model underlying these cuts.