Statement from Navigant’s Rulon Stacey on ACA Repeal

"As a former health system CEO, I firmly believe that returning to a fee-for-service payment model risks the collapse of major portions of our healthcare system." Rulon Stacey, Navigant

As an Affordable Care Act replacement is considered, I join providers, payers and others in strongly recommending that the new administration and Congress continue healthcare’s value-based evolution. 

As a former health system CEO, I firmly believe that returning to a fee-for-service payment model risks the collapse of major portions of our healthcare system. Alternatively, value-based models have been proven to incentivize providers for care quality, efficiency, and coordination improvements, and they have a history of bipartisan support. The concept was first tested during the George W. Bush administration, and such models as the Medicare Access and CHIP Reauthorization Act (MACRA) and bundled payments have backing from both sides of the Congressional aisle. 

Value-based momentum is also there: Medicare just announced significant additions to its value-based programs, and a recent Navigant analysis shows almost half of hospitals participate in a Medicare accountable care organization or bundling program. In addition, the nation’s largest commercial payer announced in December the expansion of its bundling initiatives. Moreover, there’s a growing body of evidence pointing to the approach’s value; for example, early bundling results detail significant Medicare and health systems savings, as well as reductions in length of stay and readmissions.

Healthcare spending is approaching 20 percent of the U.S. economy while Medicare is projected to reach insolvency in a little more than a decade – trends that will continue as more Americans live longer with chronic health conditions. Given this, there’s little doubt that the pressure on providers and payers to improve quality and reduce costs will only intensify.

Providers, payers, and the new administration need to stay the value-based course, not only to drive care delivery improvements but, most importantly, it’s the right thing to do for patients and communities nationwide.

Statement from Navigant Managing Director and former health system CEO Rulon Stacey, Ph.D., FACHE

About the Experts

Back to top