Healthcare in America has been transformed over the past 50 years in ways unimaginable in the mid-1960s. We have gone from a nation of solo practitioners, small-group practices and stand-alone community hospitals to healthcare systems focusing on population health, with a reach far beyond the medical arts building or the walls of a hospital.
From the first days of Medicare and Medicaid, to President Nixon's universal coverage plan and President Carter's cost-containment strategy, development of diagnosis-related groups of illnesses, President Clinton's attempt at healthcare reform, multiple balanced-budget acts, and now the Affordable Care Act—it has been a nonstop roller coaster ride in healthcare policy. Through it all the Federation of American Hospitals has offered policy-focused advocacy on behalf of a rapidly growing sector of the industry. We are proud to be celebrating our 50th anniversary this year.
It started with the advent of Medicare and Medicaid, which gave millions of previously uninsured Americans broad access to healthcare for the first time.
As the nation grew and people moved to the Sun Belt, healthcare infrastructure needed to be built. This gave birth to a new business model—investor-owned hospitals. These companies tapped additional and vital sources of capital and were effective in adapting to the rapidly changing environment.
As the hospital industry grappled with the challenges presented by new entitlement programs, the investor-owned sector formed the federation to work closely with the American Hospital Association and other provider groups. This 50-year partnership has allowed all hospitals to better meet their shared mission of providing quality care to patients in the communities we serve.
Of course, the strength of the federation has always come from its member community hospitals, notably their nurses, doctors, administrators and other vital staff. Their real-world expertise in the social and economic impact hospitals have in communities big and small allows us to educate policymakers in a unique way.
It has enabled the federation to engage on key issues leading to major changes in the nation's healthcare delivery system. In the late 1970s, the federation and its peers stood up against the burdensome regulatory approach of Carter's cost-containment plan. By the 1980s we were working with policymakers to come up with ways to provide quality care more efficiently using the new DRGs.
Hospitals also played a big role in the expansion of Medicaid and creation of the Children's Health Insurance Program, both of which provided better coverage and care to our most vulnerable populations.
In an effort to improve patient care, the federation joined the AHA and the Association of American Medical Colleges to form the Hospital Quality Alliance. Important legislation followed as hospitals took the lead in improving care and accepting increased accountability.
In 2010, the ACA created a path giving millions of additional Americans access to health coverage. Despite the continuing controversy over this historic legislation, the mission of ensuring that more Americans have access to care now and into the future remains a key goal of our organization.
As the federation commemorates its 50th anniversary and pauses to reflect on past successes, we and our member hospitals are, as always, facing forward and striving to stay ahead of the curve. Skyrocketing drug prices, changing patterns of health coverage, new payment systems and health delivery reform, along with the demanding demographics of an aging population are certainly driving new challenges, but they also offer exciting opportunities for innovation.
Our member hospitals are leading the way by engaging in cutting-edge care models, setting the standard for success in the Pioneer ACO model and harnessing the power of their networks to improve patient safety. The future of our industry holds promise for continued improvement in quality and outcomes as more focus is given to population health.
It may seem as if what happens in Washington is worlds away from the actual care delivered in a hospital, but the unique expertise provided by the federation and its members in helping shape public policy is an essential ingredient in making a complex system work for the patient. We look forward to building on our legacy of making a difference.