Blue Shield of California President and CEO Paul Markovich told America's Health Insurance Plans Aug. 22 that three critical issues must be addressed by healthcare delivery systems to make them more effective in meeting consumer needs.
Those obstacles are:
1. Lack of automation:
"We can’t possibly get to the best treatment for each individual in their circumstances, and really get the administrative costs at the level they need to be, unless we simplify, digitize, and automate the environment that we’re in," Mr. Markovich said.
2. Adherence to fee-for-service model:
Fee-for-service doesn't work, Mr. Markovich said.
"If you pay for better outcomes and better service, you’re going to get better outcomes and better service," he said.
3. High pharmaceutical costs:
The pharmaceutical line has been Blue Shield of California's fastest growing line item for years, Mr. Markovich said, adding that it's "highly inflationary without a lot of accountability for outcomes."