A Call to Advance Equity in Health Care Payment
Changes in health care payment have done little to address health care disparities – one of the most critical problems in the US healthcare system. The US cannot make meaningful progress without realigning payment around equity. We call on the health care community to undertake this work without delay.
Payment is a powerful motivator. In the US, clinicians are paid more for providing more services, regardless of how they affect patients’ health. This dynamic has fueled an inefficient system in which care is often unaffordable and produces disappointing outcomes for many Americans.
Recognizing the misalignment between the payment and health, policymakers have spent a decade shifting financial incentives toward “value-based payment” that emphasizes better health outcomes and cost-conscious care. This approach has created a major cultural shift and prompted work across the healthcare industry to reduce waste and improve care.
But these changes have done little to address health care disparities – one of the most critical problems in the US healthcare system.
In a recent article published in the Journal of the American Medical Association, several of us highlighted why value-based payment has not led to more equitable care. Disparities have been widely viewed as “unintended consequences” – issues to monitor after making payment changes rather than address beforehand. While it tries to reward good health outcomes, value-based payment also does not account for other factors, such as social drivers of health, that impede better outcomes for historically marginalized groups like racial and ethnic minorities and individuals with low income.
The US cannot make meaningful progress without tackling these issues and realigning payment around equity. To that end, we call on the health care community to support and commit to advancing health equity in payment – a set of principles, policies, and methods for using health care payment to achieve greater equity.
This call is grounded in several beliefs. First, because intention precedes implementation, we cannot meaningfully address disparities so long as they are tacitly accepted as unintended consequences of how we pay for care. We acknowledge the need to set a new, explicit intention to pay for health care in ways that help eradicate inequity. This intention includes both removing existing payment incentives that unintentionally undercut equity as well as creating new incentives that promote it.
Second, payment changes should address differences in how a clinician or organization treats different types of patients as well as differences between clinicians or organizations, which may be influenced by broader social and structural factors. Third, no payment system changes occur in a vacuum, and efforts to advance health equity in payment should utilize beneficial parts of existing data, technology, infrastructure whenever possible.
In that context, key work areas involve (a) adapting or pivoting from existing performance measures to develop ways to measure disparities within payment arrangements; (b) aligning payment incentives to directly support the goal of eliminating disparities; and (c) implementing changes into practice by harmonizing existing and new equity-focused incentives. Achieving these goals will require several steps in the coming years:
Convene a multi-stakeholder coalition. The work to advance equity through payment requires the voices of patients, communities, clinicians, health care organizations, insurers, employers, and other purchasers. We need diverse perspectives to guide the substantive changes needed in payment policies, programs, and methods.
Formally incorporate equity into the concept of value-based payment. In health care, value has been widely understood as quality relative to cost. In turn, value-based payment thus far has hinged on whether reforms improve quality and/or reduce costs overall – how large the benefits are across all patients. But nowhere in the value equation is the concept of equity – how even the benefits are between different groups of patients. This is a glaring omission that future work should address. We cannot be comfortable accepting concepts of value that do not consider equity, or improvements in value that come at the expense of the disadvantaged.
Create an implementation roadmap. Centering payment on equity-based goals is not a simple “flip of the switch” effort. We must articulate a roadmap for implementing real-world payment programs and methods that will make progress toward greater health equity. This roadmap should provide guidance on when and how to overcome barriers; harness aspects of existing payment system; make the necessary advances in data collection, performance measurement, and incentive design; and evaluate the impact of enacted changes.
Set bold, longitudinal goals. One way to demonstrate an intention to align payment with equity is by setting bold goals for changes in payment. For instance, health care leaders could set goals over time to incorporate equity measures into all payment models or tie a proportion of all reimbursement to equity measure performance. Decision-makers could also set goals for incorporating equity-focused payment changes into practice.
Conduct evaluations. Several decades of experience have made it undeniably clear: historically marginalized groups like racial and ethnic minorities and individuals with low income face widespread health care disparities. Yet remarkably little work has evaluated whether and how new payment methods affect disparities for these populations. Efforts to advance health equity in payment should be coupled with evaluation, the findings of which can then guide work evolution and refinement. Ultimately, we can only change and improve on what we measure and motivate.
Of course, this work will require great effort, and no payment approach is immune to unintended consequences. Reimbursement is also just one among many areas where changes are needed to address inequity. But payment is a powerful motivator, and intentional changes can harness it into a powerful solution to inequity. The health care community should undertake this work without delay.
Amol S. Navathe, MD, PhD
University of Pennsylvania
Risa J. Lavizzo-Mourey, MD, MBA
University of Pennsylvania
Joshua M. Liao, MD, MSc
University of Washington
Total Signatures
77
Signatories
(listed alphabetically)
George M. Abraham, MD, MPH
President
American College of Physicians
Toyin Ajayi, MD
Co-Founder and President
Cityblock
Katrina A. Armstrong, MD
Physician in Chief, Massachusetts General Hospital
Jackson Professor of Medicine, Harvard Medical School
Vineet Arora, MD, MAPP
Herbert T. Abelson Professor of Medicine
Dean for Medical Education, Pritzker School of Medicine
The University of Chicago
David A. Asch, MD, MBA
John Morgan Professor
University of Pennsylvania
Chethan Bachireddy, MD, MSc
Chief Medical Officer
Virginia Department of Medical Assistance Services
Michael Barnett, MD, MS
Assistant Professor
Harvard T.H. Chan School of Public Health
Richard J. Baron, MD
President and Chief Executive Officer
American Board of Internal Medicine
Andrew Bazemore, MD, MPH
Senior Vice President of Research and Policy
American Board of Family Medicine
Jay Bhatt, DO, MPH, MPA
Instructor
University of Illinois Chicago School of Public Health
David Blumenthal, MD, MPP
President
The Commonwealth Fund
Kevin Bozic, MD, MBA
Chair, Department of Surgery and Perioperative Care
Dell Medical School, The University of Texas at Austin
John Brumsted, MD
President and Chief Executive Officer
University of Vermont Health Network
Sean Cavanaugh, MPH
Chief Policy Officer and Chief Commercial Officer
Aledade
Christopher Chen, MD, MBA
Medical Director, Medicaid
Washington Health Care Authority
Aneesh Chopra, MPP
President, CareJourney
Former Chief Technology Officer of the US (2009-2012)
Mandy K. Cohen, MD, MPH
Secretary
NC Department of Health and Human Services
Patrick Conway, MD, MSc
Chief Executive Officer of Care Solutions, Optum
Former Director, CMMI
David Cutler, PhD
Professor, Department of Economics
Harvard University
Mohammad Dar, MD
Senior Medical Director
Massachusetts Medicaid (MassHealth)
Scott W. Delaney, ScD, JD, MPH
Department of Social and Behavioral Sciences
Harvard T.H. Chan School of Public Health
Allan Detsky, MD, PhD
Professor of Medicine and Health Policy, Management and Evaluation
University of Toronto
Shannon Dowler, MD
Chief Medical Officer
North Carolina Medicaid
Andrew Dreyfus, BA
President and Chief Executive Officer
Blue Cross Blue Shield of Massachusetts
Ezekiel J. Emanuel, MD, PhD
Vice Provost for Global Initiatives
Levy University Professor
University of Pennsylvania
Utibe R. Essien, MD, MPH
Assistant Professor of Medicine
University of Pittsburgh School of Medicine
A. Mark Fendrick, MD
Professor of Internal Medicine and Health Management & Policy
University of Michigan
Jose F. Figueroa, MD, MPH
Assistant Professor
Harvard T.H. Chan School of Public Health
Mark Friedberg, MD, MPP
Senior Vice President, Performance Measurement & Improvement
Blue Cross Blue Shield of Massachusetts
Vivek Garipalli, BBA
Chief Executive Officer
Clover Health
Paul Ginsburg, PhD
Professor of Health Policy, Price School of Public Policy
University of Southern California
Kate Goodrich, MD, MHS
Senior Vice President, Enterprise Clinical Management
Humana
David C. Grabowski, PhD
Professor of Health Care Policy
Harvard Medical School
Julian Harris, MD, MBA
Chairman and Chief Executive Officer
ConcertoCare
Jonathan Jaffery, MD, MS, MMM
Professor of Medicine, University of Wisconsin
Chief Population Health Officer, UW Health
President and Chief Executive Officer, UW Health ACO
Sachin H. Jain, MD, MBA
President and Chief Executive Officer
SCAN Group and SCAN Health Plan
J. Larry Jameson, MD, PhD
Executive Vice President, University of Pennsylvania Health System
Dean, Raymond and Ruth Perelman School of Medicine
University of Pennsylvania
Karen E. Joynt Maddox, MD, MPH
Associate Professor
Washington University School of Medicine
Barbara Jung, MD
Professor and Robert G. Petersdorf Endowed Chair in Medicine
University of Washington
Allen Kachalia, MD, JD
Senior Vice President, Patient Safety and Quality
Johns Hopkins Medicine
Ali Khan, MD, MPP
Executive Medical Director
Oak Street Health
Joe Kimura, MD, MPH
Chief Medical Officer
Atrius Health
Bob Kocher, MD
Adjunct Professor, Stanford University School of Medicine
Partner, Venrock
Harlan Krumholz, MD, SM
Harold H. Hines, Jr. Professor of Medicine
Yale School of Medicine
Winston Liaw, MD, MPH
Chair, Department of Health Systems and Population Health Sciences
University of Houston College of Medicine
Monica L. Lypson, MD, MHPE
President
Society of General Internal Medicine
Emily Maxson, MD
Chief Medical Officer
Aledade
J. Michael McWilliams MD, PhD
Warren Alpert Foundation Professor of Health Care Policy
Professor of Medicine
Harvard Medical School
Craig Monsen, MD
Chief Medical Information Officer
Atrius Health
John Morgan, MD
Chief Clinical Innovation Officer
Virginia Department of Medical Assistance Services
Christopher Moriates, MD
Assistant Dean for Health Care Value
Dell Medical School, The University of Texas at Austin
Mark Mugiishi, MD
President and Chief Executive Officer
Hawaii Medical Service Association
Blue Cross Blue Shield of Hawai’i
Karen Murphy, PhD, RN
Executive Vice President and Chief Innovation Officer
Geisinger
David Nash, MD, MBA
Founding Dean Emeritus
Dr Raymond C and Doris N Grandon Professor
Jefferson College Population Health
J. Nwando Olyaiwola, MD, MPH
Chief Health Equity Officer
Humana
Kavita Patel, MD, MS
Primary Care Physician, Mary’s Center
Non-Resident Fellow, Brookings Institution
Hoangmai H. Pham, MD, MPH
President
Institute for Exceptional Care
Michael Pignone, MD, MPH
Professor and Inaugural Chair, Department of Internal Medicine
Dell Medical School, The University of Texas at Austin
Peter Pronovost, MD, PhD
Chief Quality and Clinical Transformation Officer
University Hospitals
Rahul Rajkumar, MD, JD
Chief Operating Officer of Care Solutions, Optum
Former Deputy Director, CMMI
Paul G. Ramsey, MD
Chief Executive Officer, UW Medicine
Executive Vice President for Medical Affairs
Dean of the School of Medicine
University of Washington
Rahul Rekhi, MS
Director, Lazard
Former Staff Economist, White House Council of Economic Advisors
Wayne Riley, MD, MPH, MBA
President
SUNY Downstate Health Sciences University
Lisa Rotenstein, MD, MBA
Assistant Medical Director for Population Health & Faculty Wellbeing
Brigham and Women’s Hospital
Valinda Rutledge, MBA
Executive Vice President of Federal Affairs
America’s Physician Groups
Jaewon Ryu, MD, JD
President and Chief Executive Officer
Geisinger
Dana Gelb Safran, ScD
President and Chief Executive Officer
National Quality Forum (Incoming, August 2021)
Eric C. Schneider, MD, MPH
Senior Vice President for Policy and Research
The Commonwealth Fund
Allyson Schwartz, MSS
Member of Congress, 2005-2015
Thomas Sequist, MD, MPH
Chief Patient Experience and Equity Officer, Mass General Brigham
Professor of Medicine and Health Care Policy, Harvard Medical School
Lisa Simpson MB, BCh, MPH
President and Chief Executive Officer
AcademyHealth
Mark D. Smith, MD, MBA
Professor of Clinical Medicine, University of California, San Francisco
Former President and Chief Executive Officer, California Health Care Foundation
Robert M. Wachter, MD
Professor and Chair, Department of Medicine
University of California, San Francisco
Rachel M. Werner, MD, PhD
Professor, Perelman School of Medicine
University of Pennsylvania
Jennifer Wiler, MD, MBA
Professor and Chief Quality Officer
UCHealth Denver Metro
David R. Williams, PhD, MPH
Florence & Laura Norman Professor of Public Health
Professor of African and African American Studies and of Sociology
Harvard University
Judy Zerzan-Thul, MD, MPH
Chief Medical Officer
Washington Health Care Authority