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September 10, 2009 01:00 AM

Industry reacts to Obama's speech

Jennifer Lubell
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    Healthcare industry groups generally agreed with President Barack Obama that the status quo on the current healthcare system was not sustainable, but offered differing views on how the system should be fixed.

    Insurance regulation was a chief focus of the president's speech on Wednesday night. Obama said that the industry makes money by essentially denying care, and emphasized that a government-run public option would be a way to get insurers to lower costs. In a statement, Karen Ignagni, president and CEO of America's Health Insurance Plans, reiterated the organization's long-time position that a public plan was not the solution to improving coverage.

    “New health insurance reforms and consumer protections will solve the problem without creating a new government-run plan that will disrupt the quality coverage that millions of Americans rely on today. We share the concerns that hospitals, doctors, employers, and patients have all raised about the significant unintended consequences of a government-run plan,” Ignagni said.

    “America's hospitals stand ready to do our part to extend coverage to more Americans and to continually strive towards providing high-quality care for patients that is more efficient and affordable,” said Richard Umbdenstock, president and CEO of the American Hospital Association, in a written statement. The AHA continues to have concerns on how a public plan would be constructed but is “glad to see that President Obama is open to exploring other ideas that would help us achieve our shared goal of universal coverage.”

    Blair Childs, senior vice president of public affairs with the Premier healthcare alliance, said that the best way to bend the cost curve would be to institute quality reforms such as hospital value-based purchasing and voluntary accountable care organizations and encourage evidence-based medicine, as well as increase the transparency of cost and quality information. “Such policies are included in the Senate Finance Committee's framework, and we look forward to working with Congress and the administration to advance these reforms,” Childs said.

    J. James Rohack, M.D., president of the American Medical Association, in the meantime was pleased that Obama recognized the need to enact medical liability reforms. “Everyday physicians across the country are forced to consider the broken medical liability system when making decisions, resulting in defensive medicine that adds to unnecessary health costs. We cannot ignore this problem if health-system reform is going to address the growing cost of care,” Rohack said in a statement.

    What do you think? Post a comment on this article and share your opinion with other readers. Submit your comments to Modern Healthcare Online at [email protected]. Please be sure to include your hometown and state, along with your organization and title.

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    • News
      • Current News
      • Providers
      • Insurance
      • Digital Health
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Unwell in America
    • Opinion
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top 25 Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Hospital at Home
        • - Workplace of the Future
        • - Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • Data Center
      • Data Center Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
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    • MORE+
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