Docs, Hospitals "Will Lead New US Health Revolution"

A second US health care revolution is on the horizon, which is likely tobe led by doctors and hospitals and is an opportunity for providers to retake health care, Uwe Reinhart of Princeton University has told the eighth annual Oppenheimer Health Care Conference.

The 1980s health care cost crisis was not caused by government but by tough corporate chief executives who morphed into rabbits at the sight of a medical coat, he said. Managed care, which let employers save only by terrorizing doctors and hospitals through discounted costs, is becoming unraveled as networks expand, the economy remains strong and patients demand more choice. Health maintenance organizations no longer have the leverage or the tight networks to keep prices down.

The first health care revolution led to lower costs for health premiums, assured quality and value and managed consumer-driven competition. But premiums are now rising, as HMOs find that costs are higher than expected, there is no real definition of quality and 47% of employees have the choice of just one insurance plan.