Healthcare's "Perfect Storm"
Truth be told, we are in a “perfect storm” in regards to healthcare—a diminished economy, an enormous demographic group (Baby Boomers) transitioning into retirement, and the competitive stress from the recent build up of providers. The entire U.S. healthcare industry is in flux.
Drs. John Bigalke, William Copeland, Jr., and Paul Keckley of the Deloitte Center for Health Solutions state: “Since the enactment of the PPACA [Obamacare], many have complained about that the new rules unfairly penalize them and don’t deal with the true nature of the needed reform.
Regardless of the legislation, many existing health care-related organizations could face challenges in the long term unless they change their business models. The PPACA is merely the tipping point for an industry already under pressure from a variety of economic, demographic and competitive ‘stressors.’”
When you take a 30,000-‐foot view of our economy and healthcare, it’s simple. Seventy-‐five percent of U.S. health care costs are associated with lifestyle and chronic disease. We are in a healthcare cost storm.
“The compelling issue about health care is cost. Regardless of the election outcome, policymakers and the industry must grapple with the system’s costs as a priority. At 17.6% of the US gross domestic product (GDP), 25% of the federal budget, 23% of the average state budget, and 19% of household discretionary spending, it’s the elephant in the room.”
—2012 Deloitte Survey of U.S. Employers
July 2012: Bending the Curve
Deloitte Center for Health Solutions
Deloitte Survey of U.S. Health Consumers.
Dentistry is entering the Era of Health and Wellness at just the right time. At a time when healthcarecost reduction is being demanded, general dentistry is positioned to play an instrumental part! As president of the American Academy for Oral Systemic Health, I’ve participated in numerous discussions with some of the country’s largest healthcare institutions on how there are “dental solutions for medical problems”—all based on disease prevention.
The key component of ACA in regards to general dentistry in my eyes is the following provision: Shifting payments from fee-for-service based on volume to a risk-based payments tied to outcomes and efficiency”—for physicians.
Translated, anything we provide that reduces complications and overall costs of healthcare will be seen as a valuable asset! Oral health is that valuable asset!