Thursday, January 12, 2006

Incentives, Capitation, and Chronic Conditions...

Oh my!
David Williams at the Health Business Blog has an intriguing post about treatment costs for chronic diseases (conditions) such as diabetes. It seems that our current system tends to reward (encourage) treatment for acute illnesses, while discouraging innovation in managing chronic ones. He proposes a very interesting idea using "capitated contracts" to ensure that folks with such conditions can more easily move to different insurance plans. This is a MUST READ.
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