Seeking Alpha
Seeking Alpha Portfolio App for iPad
Finance
(1)
Market Currents

UnitedHealth (UNH) puts out a report saying that payment reform could bring healthcare savings...

  • Wednesday, December 5, 2012, 9:34 AM ET
    UnitedHealth (UNH) puts out a report saying that payment reform could bring healthcare savings of $200-600B over the next ten years. UNH wants to move away from the traditional fee-for-service model to one based on performance, payment bundling and risk-sharing. It would do, though, wouldn't it. Still, UNH recognizes that doctors aren't too hot on the idea  of pay for performance. (PR)
Track new comments on this story

This news story has 2 comments:

  •  
    It's a really simple model that United wants to move to. United pays a fixed fee per patient to the doctor and the doctor pays for all care for the patient out of that fee. If they doctor manages to deny enough care, the doctor makes money. If the patient requires much more care, the doctor has to pay out of his pocket.

    So the doctor becomes the insurance company and all risk is transferred to the doctor from the insurance company. But has United considered whether there would be any need for the continued existence of United as a "health insurance" company? I believe the greedy vision of somehow earning the profit of an insurance company without undertaking the RISK of an insurance company has blinded them to the fact that United would no longer need to exist.
    5 Dec 2012, 09:43 AM Reply Like
  •  
    Deja Vu
    Good analysis of United.
    5 Dec 2012, 09:45 AM Reply Like
LATEST|
TODAY SO FAR|
YESTERDAY
Other date
DJIA (DIA) S&P 500 (SPY)

HEALTHCARE ETFs IN FOCUS

Latest Healthcare Articles
More Latest Articles »