12 Ways to Lower Healthcare Costs Without Cutting Provider Payments

While U.S. healthcare costs are unsustainable, cutting provider payments by reducing spending on Medicare and Medicaid is not the answer, according to an American Hospital Association report.

The report, "Ensuring a Healthier Tomorrow: Actions to Strengthen Our Health Care System and Our Nation's Finances," outlines two broad strategies to improve the healthcare system and lower costs without reducing provider payments. AHA makes six recommendations for each strategy:

Strategy 1: Promote and reward accountability
1. Accelerate payment and delivery system reforms.
2. Eliminate preventable infections and complications.
3. Engage individuals in their health and healthcare.
4. Better manage advanced illness.
5. Advance the use of health information technology and electronic health records.
6. Promote transparency of quality and pricing information.

Strategy 2: Use limited healthcare dollars wisely
1. Eliminate non-value-added treatments.
2. Revamp care for vulnerable populations.
3. Promote population health.
4. Modernize federal health programs.
5. Simplify administrative and regulatory processes.
6. Reform the medical liability system.

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