Michael Chernew: Payment system reform in the US

Professor Michael Chernew, Professor of Health Care Policy, Harvard Medical School, talks to Nuffield Trust Senior Fellow, Dr Geraint Lewis about the proposed reform of health care payment systems in the US.

Professor Chernew outlines current concerns in the US that the Fee-for-Service (FFS) system creates a series of incentives that makes care more expensive than it needs to be and impedes the delivery of high quality care.  He explains the notion in the US that reforming the system so that payments incorporate a broader set of services will help to control spending and improve quality, and highlights some of the bundled payment systems currently being trialled.

Professor Chernew goes on to highlight the challenges posed by a bundled payment system: providers need to be better integrated with the organisation receiving payment in order for the payment to be managed effectively; and information flows need to be developed between the integrated organisations to enable the system to work.

Professor Chernew presented at the Nuffield Trust and Monitor partnership roundtable: How can the power of competition and integration be combined to drive greater efficiency and high quality care?  in September 2011.