SOURCE: Pharos Innovations

Pharos Innovations

June 16, 2009 10:29 ET

Pharos Innovations' Survey Finds That 95% Consider Current Payment System the Largest Barrier to Healthcare Reform

Incentive Should Be Quality of Care, Not Quantity of Care

NORTHFIELD, IL--(Marketwire - June 16, 2009) - While there are differing opinions about how to achieve national healthcare reform and reduce healthcare costs, according to a Pharos Innovations survey of select industry experts, there is almost unanimous consensus that our current payment system is the biggest barrier to healthcare reform. Ninety-five percent of respondents ranked the statement, "Our current system incents providers for quantity not quality of care," as the primary reason that the American healthcare system is not delivering maximum outcomes and cost savings. Survey respondents included attendees of the "Getting to the Value Quadrant of Healthcare Reform" panel discussion hosted by Pharos.

"We have a real opportunity this year to begin to change the delivery system from one that focuses on acute care driven to one that is more focused on preventive-based care," said Tracey Moorhead, president of DMAA: The Care Continuum Alliance, during the panel discussion.

"Our system, particularly the fee-for-service Medicare system, isn't set up to deal with chronic care patients in terms of incentive payment structure and delivery system infrastructure," added Kenneth Thorpe, PhD, professor and chair of the Rollins Schools of Public Health at Emory University and executive director of the Partnership to Fight Chronic Disease. "If we make even minor, modest investments to include care coordination, we can make an enormous difference in the health outcomes of patients and our total healthcare spend."

Forty percent of survey respondents indicated that the second largest barrier to healthcare reform is that "most current care collaboration programs aren't easily scalable across broad populations" and 45% considered it to be that the "current system doesn't always facilitate easy access to care, particularly for rural, hard-to-reach populations."

"There is a large opportunity to dramatically reduce healthcare costs in chronic disease populations by using simple, scalable chronic care management models that are already well-proven," said Randall Williams, MD, CEO of Pharos Innovations. "Pharos has demonstrated sustainable and highly reproducible results across different geographic regions and implementation models."

According to the survey, 64% of respondents felt that changing the current incentive structure to one that pays for care quality is "the best way" to reach the Value Quadrant of Healthcare Reform (VQHR), which Pharos Innovations defines as "the optimal, technology-leveraged approach to chronic care management that unifies disease registry functionality, care coordination and remote patient monitoring technology at the point of care delivery for maximum healthcare outcomes and cost savings."

The "Getting to the Value Quadrant of Healthcare Reform" panel discussion brought together healthcare industry experts during the 2009 Medicaid Congress and National Medicare Readmissions Summit, held in Washington, D.C., June 1-2, 2009.

About Pharos Innovations

Founded in 1995, Pharos Innovations assists healthcare providers and payers in achieving next generation clinical and financial performance improvement. An innovative, device-free remote patient monitoring platform, Tel-Assurance®, improves care coordination and drives dramatic clinical improvement and cost savings. Our enabling technologies proactively involve patients in their care and result in the early identification of clinical deterioration.

Tel-Assurance substantially expands the reach, efficiency and effectiveness of clients' current health management programs for complex chronic conditions. The Pharos solution is strongly validated to show measured clinical improvement and financial impact, is the recipient of the prestigious American Heart Association National Outcomes award and was selected for the first ever National Institutes of Health (NIH) sponsored evaluation of remote monitoring interventions. For more information visit

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